U.S. allocates $196 million for natural gas pipeline modernization

(UI) — The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has announced $196 million in grants, funded by the Biden-Harris Administration’s Bipartisan Infrastructure Law, to repair and replace aging natural gas pipes.

In total, this round of funding will support 60 modernization projects for natural gas pipelines across 20 states. 

“Aging, leak-prone natural gas pipes can be dangerous, drive up energy costs for families, and harm the environment, which is why the Biden-Harris Administration is supporting funds to replace aging pipelines,” said U.S. Transportation Secretary Pete Buttigieg. “Through the Bipartisan Infrastructure Law, we’re helping communities across the country carry out projects that will keep people safe while bringing down energy costs for hundreds of thousands of Americans.”

“President Biden and Vice President Harris’s historic investment agenda has enabled the U.S. to aggressively and ambitiously take the actions we need to upgrade aging infrastructure and reduce pollution in our communities. We are making significant progress in our efforts to cut pollution – including super-pollutants like methane – while creating thousands of good union jobs and lowering energy costs for Americans,” said White House National Climate Advisor Ali Zaidi. “By repairing and replacing aging natural gas pipes throughout the country, we are taking the necessary action to protect communities and save families and businesses hundreds of dollars on their energy bills.”

Some of the grants awarded include:

• $40 million to Philadelphia Gas Works to replace 20 miles of high-risk cast-iron pipe; combined with the previous funding, this grant is expected to save households an average of $250 on their energy bills.
• $15.7 million to the City of Richmond, Virginia, to upgrade natural gas mains throughout its service system with corrosion resistant materials and new technologies.
• $6.4 million to Toccoa Natural Gas, which serves ten communities in Georgia and two in North Carolina, to replace 9.3 miles of outdated gas service lines; grant funding is expected to save customers an average of $915 on their energy bills in the coming years. 
• $6.4 million to Tallahassee, Florida, for major upgrades to the city’s natural gas system, including replacing 49 miles of main and service lines made of high-density polyethylene pipe.
• $3.0 million to Sterling City, Texas, to replace 11 miles of higher risk bare steel pipe.

The full list of awardees can be found here, which includes first-time recipients in Alaska, Montana Arizona, California, Georgia, Louisiana, Mississippi, Nebraska, New Mexico, North Carolina, Ohio, South Carolina, Tennessee, and Texas.

“For the first time, thanks to the Bipartisan Infrastructure Law, we are empowering communities to expedite these critical safety improvements while helping families save money on their energy bills,” said PHMSA Deputy Administrator Tristan Brown. “On average, businesses, families, and everyday Americans can expect to save hundreds of dollars on their energy bills thanks to these necessary safety improvements funded through this new grant.”

These awards are funded through the Natural Gas Distribution Infrastructure Safety and Modernization grant program created by the Biden-Harris Administration’s 2021 Bipartisan Infrastructure Law. The law authorized a nearly $1 billion investment over five years to modernize community-owned natural gas distribution pipes, helping lower energy costs for ratepayers, reduce methane pollution, and keep communities safe from pipeline failures.

This announcement brings the total amount awarded under the grant program to nearly $800 million across 227 projects in underserved rural and urban communities across 29 states since the program was created in 2022. Grant recipients are on track to repair, rehabilitate, or replace more than 1,000 miles of aging natural gas pipes and reduce nearly 1,000 metric tons of methane pollution, annually.

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