Yes, Ma'ale Edumim is in the occupied territories and the light rail does go into occupied Arab East Jerusalem. No worry. In the future Ma'ale Edumim's residents have two options: either become citizens of Palestine or move to the other side of the Green Line. And the light rail in East Jerusalem will be part of the Palestinian transport infrastructure.
India court gives New Delhi given 3 days to come up with plan to fight pollution (Reuters)
from the article: Bus drivers take the wheel as light rail reaches the Holy City