PHMSA launches $200 million grant program to modernize aging gas pipes

(UI) — The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is now accepting applications for nearly $200 million in grants aimed at repairing and modernizing aging natural gas pipes.

This funding is part of the Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant program, established under President Biden’s Bipartisan Infrastructure Law in November 2021.

The NGDISM program targets high-risk and leak-prone natural gas distribution pipes, addressing safety risks and reducing methane emissions. Since its inception, the program has provided nearly $600 million, creating hundreds of jobs, lowering energy costs, and updating decades-old infrastructure.

“Under the Biden-Harris Administration, we're making critical infrastructure updates nationwide, including repairing and replacing corroded natural gas pipes that have been underground for over a century,” said U.S. Transportation Secretary Pete Buttigieg. “The grants we are opening today will help reduce methane pollution and provide safer, more reliable energy to over 100 communities, potentially lowering energy bills.”

Eligible applicants include municipal or community-owned utilities (excluding for-profit entities) seeking to repair, rehabilitate, or replace high-risk, leak-prone natural gas distribution infrastructure. Funded projects include:

• Richmond Gas Works (Richmond, VA) - $49 million to replace over 42 miles of cast-iron, ductile iron, and steel natural gas mains, some parts of which are over 170 years old.
• City of Donaldsonville (Donaldsonville, LA) - $30 million to repair and replace gas lines, reducing leaks and lowering energy costs for underprivileged customers.
• Philadelphia Gas Works (Philadelphia, PA) - $85 million to replace 46 miles of "at-risk" cast iron pipes in disadvantaged areas, modernizing infrastructure and minimizing service disruptions.

Funds can also be used to acquire equipment that reduces natural gas pipeline incidents and fatalities, preventing economic losses from leaks.

“This program, established by the President's Bipartisan Infrastructure Law, is saving lives and ensuring critical work is completed quickly,” said PHMSA Deputy Administrator Tristan Brown. “We are seeing significant interest from rural, urban, and tribal communities, and we are eager to distribute this new round of funding.”

These projects aim to reduce methane leakage, create jobs, and lower energy costs by updating legacy pipes. The final award selections will consider economic benefits to disadvantaged communities, the quality and number of applications, the dollar amount requested, and other factors outlined in the Notice of Funding Opportunity.

The deadline for grant applications is June 20, 2024.

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