CRITERIA FOR NEW STARTS.

SEC. 303. CRITERIA FOR NEW STARTS. (a) General Rule.—Section 3 of the Urban Mass Transportation Act of 1964 is amended by adding at the end thereof the following new subsection: “(i) Criteria For New Starts.—No grant or loan for construction of a new fixed guideway system or extension of any fixed guideway system may be made under this section unless the Secretary determines that the proposed project— “(1) is based on the results of an alternatives analysis and preliminary engineering; “(2) is cost-effective; and “(3) 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. In making grants and loans under this section, the Secretary may also consider such other factors as the Secretary deems appropriate. The Secretary shall issue guidelines that set forth the means by which the Secretary will evaluate cost-effectiveness, results of alternatives analysis, and degree of local financial commitment.”. (b) Limitation on Applicability.—The amendment made by subsection (a) of this section shall not apply to any project— (1) for which a letter of intent or full funding contract has been issued under section 3(a)(4) of the Urban Mass Transportation Act of 1964 before the date of enactment of this Act; or (2) which was in the preliminary engineering, final design, or construction stage as of January 1, 1987.