108 STAT. 802 PUBLIC LAW 103-272—JULY 5, 1994 (2) used to provide commuter rail transportation. (d) PROJECT AS PART OF APPROVED PROGRAM OF PROJECTS. — Except as provided in subsections (b)(2) and (e) of this section, the Secretary of Transportation may approve a grant or loan for a project under this section only after finding that the project is part of the approved program of projects required under sections 5303-5306 of this title and that an applicant— (1) has or will have the legal, financial, and technical capacity to carry out the project, satisfactory continuing control over the use of equipment or facilities, and the capability to maintain the equipment or facilities; and (2) will maintain the equipment or facilities. (e) CRITERIA FOR GRANTS AND LOANS FOR FIXED GUIDEWAY SYSTEMS.—(1) This subsection applies to a project— (A) for which a letter of intent or contract for the complete amount is issued under subsection (g) of this section after April 1, 1987; or (B) not in the preliminary engineering, final design, or construction stage on January 1, 1987. (2) The Secretary of Transportation may approve a grant or loan under this section for a capital project for a new fixed guideway system or extension of an existing fixed guideway system only if the Secretary decides that the proposed project is— (A) based on the results of an alternatives analysis and preliminary engineering; (B) justified based on a comprehensive review of its mobility improvements, environmental benefits, cost effectiveness, and operating efficiencies; and (C) supported by an acceptable degree of local financial commitment, including evidence of stable and dependable financing sources to construct, maintain, and operate the system or extension. (3) In making a decision under paragraph (2) of this subsection, the Secretary of Transportation shall— (A) consider the direct and indirect costs of relevant alternatives; (B) account for costs related to factors such as congestion relief, improved mobility, air pollution, noise pollution, congestion, energy consumption, and all associated ancillary and mitigation costs necessary to carry out each alternative analyzed; (C) identify and consider mass transportation supportive existing land use policies and future patterns; (D) consider the degree to which the project increases the mobility of the mass transportation dependent population or promotes economic development; and (E) consider other factors the Secretary considers appropriate to carry out this chapter. (4)(A) The Secretary of Transportation shall issue guidelines on how the Secretary will evaluate results of alternatives analysis, project justification, and the degree of local financial commitment. (B) The project justification under paragraph (1)(B) of this subsection shall be adjusted to reflect differences in local land, construction, and operating costs. (C) The degree of local financial commitment is acceptable only if—
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