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U.S. transportation department allocates $196 million for natural gas pipes modernization

Law authorized around a $1 billion investment over five years to modernize natural gas distribution pipes across the U.S
U.S. transportation department allocates $196 million for natural gas pipes modernization
This announcement brings the total amount under the grant program to nearly $800 million across 227 projects in rural and urban communities across 29 states since 2022

The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) recently announced $196 million in grants, funded by the Biden-Harris Administration’s Bipartisan Infrastructure Law, to repair and replace aging natural gas pipes across the U.S.

In total, this funding will support 60 modernization projects for natural gas pipelines across 20 states in the U.S.

“Aging, leak-prone natural gas pipes can be dangerous, drive up energy costs for families, and harm the environment, which is why the Biden-Harris Administration is supporting funds to replace aging pipelines,” said U.S. transportation secretary Pete Buttigieg.

Awarded projects

The funding included $40 million to Philadelphia Gas Works to replace 20 miles of high-risk cast-iron pipe. In addition to the previous funding, this grant will save households an average of $250 on their energy bills. The City of Richmond, Virginia also received $15.7 million to upgrade natural gas pipes throughout its service system with corrosion-resistant materials and new technologies.

Meanwhile, Toccoa Natural Gas received $6.4 million to replace 9.3 miles of oil gas service lines. This project serves 10 communities in Georgia and two in North Carolina. The grant funding will save customers an average of $915 on their energy bills in the coming years.

The funding also included:

  • $6.4 million to Tallahassee, Florida, for major upgrades to the city’s natural gas system, including replacing 49 miles of main and service lines made of high-density polyethylene pipe.
  • $3.0 million to Sterling City, Texas, to replace 11 miles of higher-risk bare steel pipe.

“By repairing and replacing aging natural gas pipes throughout the country, we are taking the necessary action to protect communities and save families and businesses hundreds of dollars on their energy bills,” stated White House national climate advisor Ali Zaidi.

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$1 billion investment over five years for modernization

The Natural Gas Distribution Infrastructure Safety and Modernization grant program is funding the projects. The Bipartisan Infrastructure Law authorized around a $1 billion investment over five years to modernize natural gas distribution pipes across the U.S. It aims to lower energy costs for ratepayers, reduce methane pollution, and keep communities safe from pipeline failures.

This announcement brings the total amount under the grant program to nearly $800 million across 227 projects in rural and urban communities across 29 states since 2022. Grant recipients are on track to repair, rehabilitate, or replace more than 1,000 miles of aging natural gas pipes and reduce nearly 1,000 metric tons of methane pollution, annually.

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