New US Rules To Favor Streetcars, Other 'Livability' Projects

The policy change announced by Transportation Secretary Ray LaHood would give the agency more flexibility in rewarding a broader array of transit projects than existing rules allow.

The change will affect how the agency distributes some $2 billion a year in transit funds, with administrators taking into account a project's "carbon footprint" and other factors previously not given much consideration, officials said.

Rules imposed by the Bush administration restricted transit-construction funds largely to projects that met "very narrow cost and performance criteria," LaHood said in a speech before a transportation conference in Washington.

"Going forward, we'll consider all factors that help communities reduce their carbon footprint, spur economic activity and relieve congestion," LaHood said.