Natural Gas Distribution Infrastructure Safety and Modernization Grant Program

 

Grant funds will be made available to municipality or community owned utilities (not including for-profit entities) seeking assistance in repairing, rehabilitating, or replacing high-risk, actively leaking, or leak-prone natural gas distribution infrastructure or portions thereof or acquiring equipment to reduce incidents and fatalities and to avoid economic loss. This grant program also strives to create good-paying jobs; benefit disadvantaged rural and urban communities with safe provision of natural gas; and protect our environment and reduce climate impacts by remediating aged and failing natural gas distribution pipelines and distribution pipe prone to leakage.

Active 20.708 Pipeline and Hazardous Materials Safety Administration, Department of Transportation B - Project Grants Fiscal Year 2022 PHMSA reached out to all potential applicants by multiple means (webinars, 135 Frequently Asked Questions, direct communication, technical assistance, communication with State governors), and published a NOFO for this grant program on May 24, 2022, which closed on August 8, 2022. PHMSA received 179 applications totaling more than $1.2 billion in funding requests, far exceeding expectations and demonstrating the demand for the program. The program garnered tremendous interest due to PHMSA’s effective outreach measures. The maximum amount available for the first year of this program is $196 million. PHMSA recommended 37 applications for provisional award which totaled $195.4 million in funding. Following the Secretary’s approval, PHMSA launched an extensive series of road show events during April and May 2023 to announce these awards, which included 16 events in 19 states. As of July 2023, the 37 provisionally selected applicants are in the early stages of completing the required environmental assessment with technical assistance provided by Volpe. FY22 NGDISM provisionally awarded applications will repair, replace, or rehabilitate nearly 270 miles of pipe and will reduce methane emissions by approximately 212 metric tons annually.
Fiscal Year 2023 PHMSA reached out to all potential applicants via email blasts, information on the NGDISM website, and informational webinars; and published the FY23 NOFO for this grant program on May 23, 2023, which closed on August 4, 2023. PHMSA received 184 applications. This grant program continues to garner tremendous interest due to PHMSA’s effective outreach measures. The maximum funding amount available for the second year of this program is $392 million (using both FY23 and FY24 funding). Pipeline and Hazardous Materials Safety Administration – Natural Gas Distribution Infrastructure Safety and Modernization Grant Program, Title The Infrastructure Investment and Jobs Act, Part DIVISION J - APPROPRIATIONS, Section TITLE VIII – TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT AND RELATED AGENCIES, Public Law 117-58
This legislation designates $200 million per year in grant funding with a total of $1 billion in grant funding over five years to improve the safety of high-risk, actively leaking, or leak-prone natural gas distribution infrastructure and create good-paying jobs, with an emphasis on benefiting underserved communities, in both rural and urban areas. The legislation also authorizes PHMSA to use up to $4 million for each fiscal year for administrative expenses. Municipality-owned utilities, community-owned utilities, or Federally recognized Native American tribal governments owning and operating a natural gas distribution system. Not Eligible: For-profit entities or any pipeline asset(s) owned by a for-profit entity. N/A PHMSA BIL Team will conduct grant reviews, grant awards, and grant administration. PHMSA Office of Chief Counsel will conduct required legal reviews. Costs will be determined in accordance with 2 CFR 200, Subpart E. 2 CFR 200, Subpart E - Cost Principles applies to this program. 2 CFR 200, Subpart E - Cost Principles applies to this program. Preapplication coordination is not applicable. This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. PHMSA will review applications based on merit, including the clarity of project narrative and reasonableness of costs as described in the budget narrative. The program applications must be completed in their entirety and all required information must be provided in detail. Each grant application will be evaluated in accordance with the criteria listed in the NOFO. A technical review panel of subject matter experts will evaluate the grant applications. Environmental impact information is not required for this program until after an entity has been selected for an award. This program is excluded from coverage under E.O. 12372. Refer to Notice of Funding Opportunity posted on grants.gov. 60-180 days. Not applicable. These will be granted on a case-by-case basis. Review of the applications' project(s) will be based on the administrative/intake, technical, and programmatic criteria set forth in the NOFO, as well as Department of Transportation (DOT) goals and priorities. Refer to the Notice of Funding Opportunity package posted on grants.gov for more details. Grant funds will be made available to municipalities or community owned utilities (not including for-profit entities) to repair, rehabilitate, or replace natural gas distribution pipeline systems or portions thereof or to acquire equipment to reduce incidents and fatalities, and to avoid economic loss. Performance Reports: Any performance reports will be outlined in grant agreements. Not applicable. All grant related records, including procurement information in addition to all payments made must be kept for a minimum of three calendar years from the date of submission of the final progress report. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. The period of performance is up to 60 months from the effective date of award. However, applicants may request a period of performance extension if they can justify that their projects will require additional time. None/Not specified. PHMSA BIL Grant Team
1200 New Jersey Avenue SE
Washington, DC 20590 USA
PHMSAPipelineBILGrant@dot.gov
Phone: 202-366-7652 https://www.phmsa.dot.gov/grants/pipeline/natural-gas-distribution-infrastructure-safety-and-modernization-grants 69-1402-0-1-400 (Project Grants) FY 22$195,460,230.00; FY 23 est $392,000,000.00; FY 24 est $196,000,000.00; FY 21 Estimate Not Available - Award(s) to a single entity may not be more than 12.5 percent of the total available funds for the grant program ($1 billion). Average award amount in FY22 was $5,282,709. Not applicable. Fiscal Year 2021 N/A – New Grant Program
Fiscal Year 2022 Construction expenses to repair, rehabilitate, or replace natural gas distribution pipeline infrastructure involving cast iron, bare steel, and/or other high-risk, actively leaking or leak-prone pipe(s). Acquire equipment to assist with leak mitigation and methane reduction on natural gas distribution pipeline infrastructure.