The Durham-Orange Light Rail proposal cleared another hurdle on Friday when officials announced the Federal Transit Administration had “determined the project to be justified under federal review criteria.”

That designation will allow the 17.7-mile light rail project aimed at connecting UNC to Duke University and North Carolina Central University to move forward into the engineering phase and remain eligible for federal money. The project will rely on 50 percent of the $2.47 billion price tag coming from the federal government to proceed. The project cost escalates to $3.3 billion when including financing costs.

But Friday’s letter to GoTriangle cautioned that “the President’s Budget for FY 2018 proposes no funding for new projects, and thus GoTriangle acknowledges that it is undertaking additional work at its own risk which may not receive Capital Investment Grants funding.”

The engineering approval gives GoTriangle “pre-award authority” to take on costs associated with “engineering activities, demolition and other non-construction activities” along with vehicles, property and utility relocation. But the letter reiterates that this authority “does not constitute any FTA commitment that future Federal funds will be approved for the Project or any other element of the Project.”

The remaining 50 percent of the funding for the project is expected to come from local and state dollars. Voters approved a tax increase earmarked for transit in Orange and Durham counties. The state initially was set to provide up to 25 percent of the project cost, but that number has now been capped at 10 percent by the Republican-led General Assembly.

The FTA approval comes with a “Medium” grade for the proposal, the minimum level allowed to be considered for a funding recommendation, according to the FTA.

The news comes after Durham and Orange counties agreed to revised individual county transit plans earlier this year.

Durham County Commissioner and GoTriangle board member Ellen Reckhow said in a release announcing the approval:

“This is great news for the people of Durham and Orange counties and the teams in both counties working so hard together to receive the federal approval needed to take the light-rail project from planning to construction. The light rail will give our communities an option for a congestion-free commute with predictable travel times and offer direct connections to three hospitals, three major universities and job centers. It also will help create thousands of new jobs for our region.”

GoTriangle officials say the FTA issued favorable ratings for “the local financial commitment, the justification for the project and the project’s engineering readiness.”

GoTriangle general manager Jeff Mann thanked the FTA and local officials in a statement.

“We are pleased to continue working closely with our local, state and federal partners to deliver Durham and Orange counties’ plans for enhanced bus service, commuter rail, a new Amtrak station in Hillsborough and the light-rail project.”

Congressman David Price of North Carolina’s Fourth District issued a statement saying he would continue working to advocate for federal involvement in the project through budget negotiations.

“Today marks an important step forward for the Durham-Orange Light Rail Transit project and our region’s transportation future,” Price said in a release. “I will continue working to ensure the federal government remains an active partner in this effort.”

GoTriangle officials say the next steps include working with an engineering consultant to complete the design work associated with the project, resubmitting plans through the North Carolina Department of Transportation’s funding process and raising private dollars to support the project.

The construction process is, as of now, estimated to begin in 2020 with service beginning in 2028.

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