; and (II) construction, reconstruction, rehabilitation, and acquisition of real property (including land related to the project and improvements to land), environmental mitigation, construction contingencies, acquisition of equipment directly related to improving system performance, and operational improvements. (ii) Eligible planning costs In the case of a planning activity described in subsection (d)(3) that is carried out by a State with funds made available under paragraph (1), eligible costs may include development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, other preconstruction activities, and other activities consistent with carrying out the purposes of subsection (d)(3). (F) Limitations In carrying out this subsection, a State— (i) may use not more than 25 percent of the amounts made available under this subsection for the construction of new capacity so long as such inclusion is cost-effective and is directly related to the underlying project