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On Tuesday, the Federal Transit Administration (FTA) issued a "record of decision" for the Honolulu Rail Transit project, confirming the light-rail project met all environmental law and regulation requirements. The decision clears the way for construction to begin on the city's first rail system.

The $5.5 billion project involves a 20-mile elevated rail system that will connect East Kapolei with Ala Moana Center. The line will include 21 stations in communities including Waipahu, Pearl City, Aiea, Kalihi, Chinatown, and downtown Honolulu and Kakaako.

Receiving the FTA's decision is "one of the most significant milestones" for the rail project, said Honolulu Mayor Peter Carlisle in a prepared statement.

It also "marks an important milestone in Oahu's quest to become a more transit-friendly island," said FTA Administrator Peter Rogoff, who presented Carlisle with the record of decision at FTA offices in Washington, D.C.

The city already has awarded a construction contract to Kiewit Pacific Co. for the first phase of the elevated rail guideway from East Kapolei to Pearl City. A second contract for the rail storage and maintenance facility in Waipahu is expected to be approved soon.