Sec. 602. Natural gas distribution pipeline infrastructure safety and modernization grants
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The Secretary may provide grants to assist publicly owned natural gas distribution pipeline systems in repairing, rehabilitating, or replacing pipeline systems to improve pipeline safety. An entity eligible to receive a grant under this section is a utility that— is owned by a community or municipality; and is not a for-profit entity. An eligible entity desiring a grant under this section shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of the projects or activities proposed to be funded by the grant.
A grant provided under this section may be used— to repair, rehabilitate, or replace a natural gas distribution pipeline system or portions of a natural gas distribution pipeline system; or to acquire equipment for use in a repair, rehabilitation, or replacement project under paragraph (1). The Secretary shall establish procedures for awarding grants under this section that take into consideration— the risk profile of the existing pipeline system, including pipe material, operated by the applicant; and supporting communities that have limited ability to invest in the infrastructure of the community through increased utility rates due to economic conditions, including high poverty rates, high unemployment, or low median wages.
The Secretary may not award more than 12.5 percent of the total amount made available to carry out this section in a single fiscal year to a single eligible entity described in subsection (b). Not more than 2 percent of the amounts appropriated under subsection (h)(1) for a fiscal year may be used by the Secretary for the administrative costs of carrying out this section. Except as provided in subparagraph (B), any grant provided by the Secretary under this section shall not represent more than 50 percent of the actual total cost of the repair, rehabilitation, or replacement project for which the grant is provided.
In the case of a grant under this section for a project in an area with a population of less than 50,000 residents, based on the most recent decennial census, the Secretary may increase the grant share of the cost of the project under subparagraph
(A)to not more than 80 percent. Not later than 3 days before the date on which the Secretary publishes the selection of projects and activities for which a grant will be provided under this section, the Secretary shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a written notice that includes— a list of all applications reviewed by the Secretary as part of the selection process; and a report that describes each project or activity for which a grant will be provided under this section for that round of selection. There is authorized to be appropriated to the Secretary to carry out this section $75,000,000 for each of fiscal years 2027 through 2030, to remain available until expended. Any amounts used to carry out this section— shall be derived from general revenues; and shall not be derived from user fees collected under section 60301.