CRITERIA FOR NEW STARTS.

SEC. 3010. CRITERIA FOR NEW STARTS. Section 3(i) is amended to read as follows: “(i) New Start Criteria.— “(1) Determinations.— A grant or loan for construction of a new fixed guideway system or extension of any fixed guideway system may not be made under this section unless the Secretary determines that the proposed project— “(A) is based on the results of an alternatives analysis and preliminary engineering; “(B) is justified based on a comprehensive review of its mobility improvements, environmental benefits, cost effectiveness, and operating efficiencies; and “(C) is supported by an acceptable degree of local financial commitment, including evidence of stable and dependable funding sources to construct, maintain, and operate the system or extension. “(2) Considerations.— In making determinations under this subsection, the Secretary— “(A) shall consider the direct and indirect costs of relevant alternatives; “(B) shall account for costs related to such factors as congestion relief, improved mobility, air pollution, noise pollution, congestion, energy consumption, and all associated ancillary and mitigation costs necessary to implement each alternative analyzed; and “(C) shall identify and consider transit supportive existing land use policies and future patterns, and consider other factors including the degree to which the project increases the mobility of the transit dependent population or promotes economic development, and other factors that the Secretary deems appropriate to carry out the purposes of this Act. “(3) Guidelines.— “(A) In general.— The Secretary shall issue guidelines that set forth the means by which the Secretary shall evaluate results of alternatives analysis, project justifica-105 STAT. 2094tion, and degree of local financial commitment for the purposes of paragraph (1). “(B) Project justification.— Project justification criteria shall be adjusted to reflect differences in local land costs, construction costs, and operating costs. “(C) Financial commitment.— The degree of local financial commitment shall be considered acceptable only if— “(i) the proposed project plan provides for the availability of contingency funds that the Secretary determines to be reasonable to cover unanticipated cost overruns; “(ii) each proposed local source of capital and operating funding is stable, reliable, and available within the proposed project timetable; and “(iii) local resources are available to operate the overall proposed transit system (including essential feeder bus and other services necessary to achieve the projected ridership levels) without requiring a reduction in existing transit services in order to operate the proposed project. “(D) Stability assessment.— In assessing the stability, reliability, and availability of proposed sources of local funding, the Secretary shall consider— “(i) existing grant commitments; “(ii) the degree to which funding sources are dedicated to the purposes proposed; and “(iii) any debt obligations which exist or are proposed by the recipient for the proposed project or other transit purposes. “(4) Project advancement.— No project shall be advanced from alternatives analysis to preliminary engineering unless the Secretary finds that the proposed project meets the requirements of this section and there is a reasonable chance that the project will continue to meet these requirements at the conclusion of preliminary engineering. “(5) Exceptions.— “(A) In general.— A new fixed guideway system or extension shall not be subject to the requirements of this subsection and the simultaneous evaluation of such projects in more than one corridor in a metropolitan area shall not be limited if (i) the project is located within an extreme or severe nonattainment area and is a transportation control measure, as defined by the Clean Air Act, that is required to carry out an approved State Implementation Plan, or (ii) assistance provided under this section accounts for less than $25,000,000 or less than as of the total cost of the project or an appropriate program of projects as determined by the Secretary. “(B) Expedited procedures.— In the case of a project that is (i) located within a nonattainment area that is not an extreme or severe nonattainment area, (ii) a transportation control measure, as defined in the Clean Air Act, and (iii) required to carry out an approved State Implementation Plan, the simultaneous evaluation of projects in more than one corridor in a metropolitan area shall not be limited and the Secretary shall make determinations under this subsec-105 STAT. 2095tion with expedited procedures that will promote timely implementation of the State Implementation Plan. “(C) Exclusion for certain projects.— That portion of a project (including any commuter rail service project on an existing right-of-way) financed entirely with highway funds made available under the Federal-Aid Highway Act of 1991 shall not be subject to the requirements of this subsection. “(6) Project implementation.— A project funded pursuant to this subsection shall be implemented by means of a full funding grant agreement.”.