The US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has allocated $196m in grants for the repair and replacement of natural gas pipelines.
The funding, sourced from the Biden-Harris Administration’s Bipartisan Infrastructure Law, will be used to finance 60 projects aimed at modernising natural gas infrastructure across 20 states.
Among the grants awarded, Philadelphia Gas Works will get $40m to replace 32km of cast-iron pipes, with the combined funding expected to reduce energy bills for households by an average of $250.
The City of Richmond, Virginia, has been allocated $15.7m to upgrade natural gas mains across its service system with corrosion-resistant materials and new technologies.
Toccoa Natural Gas, which operates in ten communities in Georgia and two in North Carolina, was granted $6.4m to replace 15km of gas service lines. Tallahassee, Florida, will get $6.4m for the replacement of 79km of main and service lines with high-density polyethylene pipes.
US Transportation Secretary Pete Buttigieg said: “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 ageing pipelines.
“Through the Bipartisan Infrastructure Law, we’re helping communities across the country carry out projects that will keep people safe while bringing down energy costs for hundreds of thousands of Americans.”
The grants are part of the Natural Gas Distribution Infrastructure Safety and Modernization programme, which was created under the 2021 Bipartisan Infrastructure Law introduced by the Biden-Harris Administration. The law authorised a $1bn investment over five years, specifically targeting the modernisation of community-owned natural gas distribution pipelines.
The objectives include reducing energy costs, lowering methane emissions, and enhancing safety in communities affected by pipeline failures.
Since its initiation in 2022, the grant programme has awarded nearly $800m across 227 projects in rural and urban communities in 29 states. The projects are said to be on track to repair, rehabilitate, or replace over 1,600km of natural gas pipelines, with the aim of reducing approximately 1,000 metric tonnes of methane emissions annually.
In addition, the funding supports the US Methane Emissions Reduction Action Plan, which seeks to decrease methane emissions through various initiatives, including advancements in technology and measures aimed at lowering inefficiencies in the energy sector.
Last year, as part of President Biden’s Investing in America initiative, the Environmental Protection Agency (EPA), the Department of Energy (DOE), and the DOE’s National Energy Technology Laboratory (NETL) released up to $350m in formula grant funding. The funding aims to monitor and mitigate methane emissions from the oil and gas sector, as well as support environmental restoration efforts at well sites.
