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U.S. Issues $196 Million in Grants to Repair or Replace Aging Natural Gas Pipelines

U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA), October 23, 2024

The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) has announced a significant investment of $196 million in grants to modernize aging natural gas pipelines across the United States. This funding represents a significant step towards improving energy efficiency, reducing environmental impact, and enhancing public safety across the United States. By focusing on repairing and replacing aging pipelines, the program aims to address long-standing infrastructure needs while simultaneously working towards broader climate and economic goals. 

Key Points of the Announcement

  • Total Funding: $196 million in grants
  • Scope: 60 modernization projects across 20 states
  • Funding Source: Bipartisan Infrastructure Law
  • Primary Goals: Repair and replace aging natural gas pipes, improve safety, reduce energy costs, and cut methane emissions

Major Investments and Projects

Some notable projects receiving funding include:

  • Philadelphia Gas Works: $40 million to replace 20 miles of high-risk cast-iron pipe, expected to save households an average of $250 on energy bills.
  • City of Richmond, Virginia: $15.7 million to upgrade natural gas mains with corrosion-resistant materials and new technologies.
  • Toccoa Natural Gas (Georgia and North Carolina): $6.4 million to replace 9.3 miles of outdated gas service lines, potentially saving customers an average of $915 on energy bills.
  • Tallahassee, Florida: $6.4 million for major upgrades, including replacing 49 miles of main and service lines.
  • Sterling City, Texas: $3.0 million to replace 11 miles of higher-risk bare steel pipe.

Broader Impact and Context

This funding is part of a larger initiative under the Natural Gas Distribution Infrastructure Safety and Modernization grant program, which has allocated nearly $1 billion over five years to:

  • Modernize community-owned natural gas distribution pipes
  • Lower energy costs for ratepayers
  • Reduce methane pollution
  • Enhance community safety from pipeline failures

Since the program's inception in 2022, nearly $800 million has been awarded across 227 projects in 29 states. These projects are expected to:

  • Repair, rehabilitate, or replace over 1,000 miles of aging natural gas pipes
  • Reduce nearly 1,000 metric tons of methane pollution annually

Click here to read the full article from U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA).


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