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Yesterday, U.S. Transportation Secretary Ray LaHood announced that selected transit agencies in 175 cities now can use certain Federal Transit Administration (FTA) funds to cover the cost of gas, diesel and electric power for light-rail trains, streetcars, buses and other transit vehicles.
 
Part of Congress’ fiscal-year 2012 appropriations legislation, the provision allows transit operators in the most populated urban areas to use a portion of their allocated FY2012 FTA funds for fuel expenses, U.S. Department of Transportation (USDOT) officials said in a prepared statement.

The provision — which provides up to $100 million in funding nationwide — will enable smaller cities to handle increased ridership and higher operating costs that typically result from rising oil prices, they said.
 
“Rising fuel prices impact the nation’s transit providers, too, and this measure delivers critical relief that will ensure that buses, light rail and other vehicles are on the road at a time when their service is needed most,” LaHood said.
 
The flexible funding provision means that a large city like Houston, where transit capacity is expanding rapidly, can apply more than $2 million toward fuel and utility costs. The allocations are made in proportion to the funding levels the agencies typically receive on an annual basis from FTA, USDOT officials said.