Sec. 33201. Improving the natural gas distribution system
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/bill/115/hr/2479/ih/section-33201·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary of Energy shall establish a program to award grants to States, in accordance with this section, for the purpose of providing incentives for natural gas distribution companies to improve the public safety and environmental performance of the natural gas distribution system. A State may apply for a grant under this section to provide funds to natural gas distribution companies in the State that are carrying out an eligible project. In applying for a grant under this section, a State shall demonstrate how the State rate-setting program will ensure that funds provided to natural gas distribution companies under this section are used in accordance with the requirements of this section.
A project that is eligible to be funded through a grant to a State under this section is a project carried out by a natural gas distribution company to accelerate, expand, or enhance the implementation of a plan approved by the State before the date of enactment of this section for— replacement of cast and wrought iron and bare steel pipes and other leak-prone components of the natural gas distribution system; or inspection and maintenance programs for the natural gas distribution system.
A natural gas distribution company receiving funds through a grant to a State under this section may use such funds only to offset the near-term incremental costs, as reflected in rate increases to low-income households, of the eligible project. A State may provide funds to a natural gas company under this section for a period not to exceed 4 years. In awarding grants under this section, the Secretary shall prioritize applications based on the expected results of the State proposal with respect to— quantifiable benefits for public safety; the magnitude of methane emissions reductions; innovation in technical or policy approaches; the number of low-income households anticipated to benefit from the assistance; and overall cost-effectiveness.
The Secretary shall establish auditing and reporting requirements for States with respect to grants awarded under this section. In this section: The term low-income household means a household that is eligible to receive payments under section 2605(b)(2) of the Low-Income Home Energy Assistance Act of 1981 ( 42 U.S.C. 8624(b)(2) ). The term natural gas distribution company means a person or municipality engaged in the local distribution of natural gas to the public. The term natural gas distribution system means the facilities used for the local distribution of natural gas.
There are authorized to be appropriated to the Secretary to carry out this section $150,000,000 per fiscal year, with the total amount not to exceed $1,500,000,000.
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Sec. 33201
Improving the natural gas distribution system
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