FY 2023 Natural Gas Distribution Infrastructure Safety and Modernization Grant

Background
The U.S. Department of Transportation (DOT) and its Pipeline and Hazardous Materials Safety Administration (PHMSA) are offering the Natural Gas Distribution Infrastructure Safety and Modernization Grant Program for Fiscal Year (FY) 2023. The program aims to improve the safety of high-risk, actively leaking, or leak-prone natural gas distribution infrastructure and create good-paying jobs, with an emphasis on benefiting underserved communities in both rural and urban areas.

Grant Details
The eligible entities for the grant include municipality- or community-owned utilities needing assistance in repairing, rehabilitating, or replacing high-risk, leak-prone natural gas distribution infrastructure, or in acquiring equipment to reduce incidents and fatalities and avoid economic losses. The grant program also aims to promote economic growth and benefit disadvantaged rural and urban communities with safe provision of natural gas.

Eligibility Requirements
Eligible applicants include city or township governments, community-owned utilities, county governments, municipality-owned utilities, and federally recognized Native American tribal governments owning and operating a natural gas distribution system. For-profit entities are not eligible for NGDISM grant funding. There are no cost-sharing or matching requirements in the NGDISM Grant Program.

Period of Performance
The period of performance is up to 60 months. The IIJA makes FY 2023 NGDISM grant funds available for award/obligation through September 30, 2034, and FY 2024 grant funds available for award/obligation through September 30, 2035.

Grant Value
Congress appropriated $1 billion over five years to implement and administer the NGDISM Grant Program, with $200 million appropriated annually. PHMSA will make available up to $392 million utilizing FY 2023 and FY 2024 funding for NGDISM grants under this NOFO. There is no award minimum amount. Applicants may submit applications for multiple projects.