Sec. 2001. Natural gas distribution system improvement program
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Part 4 of title II of the National Energy Conservation Policy Act ( 42 U.S.C. 8231 et seq. ) is amended by adding at the end the following: In this section: The term leak-prone distribution pipeline means a natural gas distribution system pipeline constructed of leak prone materials, such as cast iron or bare steel. The term low-income household means a household— the combined income of which is equal to or less than 200 percent of the poverty level; or determined to be eligible by the State in which the household is located under the low-income home energy assistance program established under the Low-Income Home Energy Assistance Act of 1981 ( 42 U.S.C. 8621 et seq. ) using an eligibility standard based on— 150 percent of the poverty level; or 60 percent of the median income in the State.
The Secretary shall make grants to eligible entities on a competitive basis to accelerate or expand utility programs that improve the safety and environmental performance of natural gas distribution systems. Except as provided in paragraph (2), to be eligible to receive a grant under subsection (b), an entity shall be— a State; the District of Columbia; the Commonwealth of Puerto Rico; any other territory or possession of the United States; or a tribal organization (as defined in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450b )).
If an entity described in subparagraphs
(A)through
(D)of paragraph
(1)does not apply for a grant under subsection (b), units of general purpose local government, community action agencies, and other nonprofit agencies located in that entity shall be eligible to apply for a grant. An eligible entity receiving a grant under subsection (b)— shall only use grant amounts for new or expanded programs that are approved by a public utility commission (or an equivalent entity) after April 21, 2015; and may use grant amounts— to accelerate the rate of replacement and repair of leak-prone distribution pipelines; and for directed inspection and maintenance programs. As a condition of receiving a grant under subsection (b), an eligible entity shall ensure that the grant amounts are used to offset the cost to low-income households of incremental increases in household bills associated with system upgrades using grant amounts. An eligible entity desiring a grant under subsection
(b)shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. In selecting grant recipients, the Secretary shall— prioritize eligible entities that emphasize safety over other program benefits; and with respect to the application proposal of an eligible entity, consider and estimate the net benefits of the proposed— magnitude of methane emission reductions; use of innovative technology and policy approaches; number of low-income households estimated to benefit from the proposed program; and demonstrated coordination with a broad range of stakeholders, including the public utility commission (or equivalent entity), consumer advocates, and utilities. There is authorized to be appropriated to carry out this section $3,500,000,000 for the period of fiscal years 2016 through 2019. .
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