Bipartisan Infrastructure Law - Natural Gas Distribution Infrastructure Safety and Modernization grants
The Bipartisan Infrastructure Law created an infrastructure grant programme called the Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant programme for the modernisation of natural gas distribution pipelines. The legislation authorized USD 200 million per year in grant funding with a total of USD 1 billion until 2026. The grants are to be provided to municipalities or community owned utilities to repair, rehabilitate, or replace their natural gas distribution pipeline systems with the aim of improving public safety, protecting public health, and reducing methane emissions from natural gas distribution pipelines.
Under the NGDISM programme, the US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration has announced grants of USD 196 million on 5 April 2023 (for FY 2022), USD 392 million on 3 April 2024 (for FY 2023) and USD 196 million on 22 October 2024 (for FY 2024).
The grants totalling nearly USD 800 million have been awarded to 227 projects in 29 states. The grants are to repair, rehabilitate, or replace more than 1,600 kilometres of aging natural gas pipes that would reduce nearly 1,000 metric tons of methane pollution annually.
These projects also advance the US Methane Emissions Reduction Action Plan that focusses on reducing methane emissions in the United States by way of regulations, financial incentives, disclosures, and public and private partnerships.
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