Honolulu’s planned rail transit project is one of a handful of top candidates across the nation with a chance to share in $510 million in federal transit funds under spending measures signed by President Barack Obama earlier this month.
The city will be eligible to obtain a portion of that federal transit funding provided it completes a critical full-funding grant agreement with the Federal Transit Administration by the end of 2012, according to an announcement Tuesday by Senate Committee on Appropriations Chairman Daniel K. Inouye and Sen. Daniel K. Akaka.
FINANCIAL BOOST FOR HAWAII PROGRAMS
The Conference Report on HR 2112 includes money for a variety of Hawaii programs in addition to rail:
» $13 million for Native Hawaiian housing
» $386,000 for the Native Hawaiian Housing Loan Guarantee Fund, which translates into $41,504,000 in loan authority for the program. This provision also includes language to allow borrowers to refinance their mortgages, which they are not currently allowed to do.
» $1,456,083 for fruit fly eradication, minor crop pest control, papaya ringspot research and sugar cane research
» $1,597,000 for Native Hawaiian-Serving Institutions Education grants
» $400,000 for women and minorities in science, technology, engineering and math (STEM) fields
» $1,996,000 to help geographically disadvantaged farmers and ranchers get their products to market
» Additional funding for marine mammal and sea turtle protection, climate research, marine debris cleanup, fishery maintenance and at-risk youth mentoring
|
The financial plan for the Honolulu rail project assumes the city will receive $125 million in federal funding for the rail project in 2012, and rail officials hope the legislation just signed by Obama on Nov. 18 will deliver that money.
"We understand that Honolulu is a strong candidate for this appropriation," said Toru Hamayasu, interim executive director of the Honolulu Authority for Rapid Transportation.
Congess has already appropriated $120 million for the Honolulu rail project over the past four years. In all, the Honolulu rail project is banking on receiving $1.55 billion in federal New Starts transit funding by 2020.
The total cost of the 20-mile rail system from East Kapolei to Ala Moana Center is expected to be $5.17 billion.
The city said the requirement in the federal spending bill that candidates for funding must complete a full-funding grant agreement with the FTA by next year is well within its plans.
The city intends to finalize that agreement with federal transit officials in September, and Hamayasu said the city is on track to win approval from the FTA in time to qualify for the money.
Before the city can reach a full-funding grant agreement with the FTA, Hamayasu said, the city must meet dozens of federal requirements. Those include demonstrating the city has made significant progress in acquiring the rail right-of-way, updating the existing financial and project management plans and demonstrating the city has substantially completed final design for the rail project.
"Federal funds are hard to come by in the current budget climate and Honolulu has an opportunity to secure significant federal support for this long awaited project designed to help alleviate traffic on Oahu," Inouye said in a statement released yesterday.
"Rail transit will create thousands of jobs and bring welcome relief to commuters who are forced to spend hours in their cars each day inching through congested roadways."
"We have planned this project and debated its merits for decades and we must move forward. We must set aside our differences and work together," Inouye said. "I remain committed to this project and will continue to do everything I can to direct federal funds to the work and ensure its timely completion."
