For municipal utilities owning their own natural gas distribution systems, there is a current golden opportunity to secure grant funding to upgrade aging municipal natural gas distribution infrastructure.
The federal Infrastructure Investment and Jobs Act, which was signed into law in November 2021, includes a new Pipeline and Hazardous Materials Safety Administration (PHMSA) grant program exclusively for publicly- and community-owned gas utilities: The Natural Gas Distribution Infrastructure Safety and Modernization Grant Program.
The federal Act appropriated $1 billion in grant funding to be made available to municipal-owned utilities to repair, rehabilitate, or replace natural gas distribution pipelines. Grant funding can also be used to purchase equipment that will be used to directly enable repair, rehabilitation, or replacement of pipelines. The PHMSA is responsible for implementing and administering the program, which will appropriate $200 million each year for five years to municipally-owned gas utilities.
The National Public Gas Agency (NPGA) held a workshop in late April for NPGA member communities that focused on funding opportunities available through this grant program. The workshop was led by Campos EPC, an engineering and utility consulting firm and an associate member of the American Public Gas Association.
“For municipally-owned gas utilities like NPGA members looking to upgrade aging distribution natural gas pipelines, this is a great opportunity,” said Beth Ackland, NPGA director of gas operations. “The grant money is there specifically for municipal utilities like our NPGA members.”
The PHMSA will issue a Notice of Funding Opportunity (NOFO), expected in May. The notice will be listed on the Grants.gov website. Awards will be made no later than 270 days after the NOFO.
Campos EPC is willing to assist NPGA members with grant funding application assistance. For NPGA members interested in this grant funding opportunity, contact NPGA Director of Gas Operations Beth Ackland (backland@nmppenergy.org).