(a) In general

Chapter 601 of title 49, United States Code, is amended by adding at the end the following:

60144. Natural gas distribution pipeline infrastructure safety and modernization grants

(a) In general

The Secretary may provide grants to assist publicly owned natural gas distribution pipeline systems in—

(1)

reducing unintentional leaks;

(2)

reducing incidents and fatalities associated with pipeline facility safety incidents; and

(3)

accommodating the safe transportation of alternative energy sources.

(b) Eligible entities

An entity eligible to receive a grant under this section is a utility owned by—

(1)

a community; or

(2)

a municipality.

(c) Applications

An eligible entity desiring a grant under this section shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of the projects or activities proposed to be funded by the grant.

(d) Uses

A grant provided under this section may be used—

(1)

to repair, rehabilitate, or replace a natural gas distribution pipeline system or portions of a natural gas distribution pipeline system; or

(2)

to acquire equipment.

(e) Considerations

The Secretary shall establish procedures for awarding grants under this section that take into consideration—

(1)

the risk profile of the existing pipeline system operated by the applicant, including the presence of pipe prone to leakage; and

(2)

the potential of the projects or activities proposed to be funded by the grant for—

(A)

creating jobs; and

(B)

benefitting disadvantaged rural or urban communities; and

(3)

the expected economic impact of, or economic growth resulting from, the projects or activities proposed to be funded by the grant.

(f) Limitations

(1) Awards to a single utility

The Secretary may not award more than 12.5 percent of the total amount made available to carry out this section to a single eligible entity described in subsection (b).

(2) Administrative expenses

Not more than 2 percent of the amounts appropriated under subsection (i)(1) for a fiscal year may be used by the Secretary for the administrative costs of carrying out this section.

(g) Congressional notification

Not later than 3 days before the date on which the Secretary publishes the selection of projects and activities for which a grant will be provided under this section, the Secretary shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a written notice that includes—

(1)

a list of all applications reviewed by the Secretary as part of the selection process; and

(2)

a report that describes each project or activity for which a grant will be provided under this section for that round of selection.

(h) Additional requirements

Each project or activity for which a grant is provided under this section shall achieve compliance with the applicable requirements of—

(1)

title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.); and

(2)

the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

(i) Funding

(1) Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out this section $200,000,000 for each of fiscal years 2026 through 2029, to remain available until expended.

(2) Requirement

Any amounts used to carry out this section—

(A)

shall be derived from general revenues; and

(B)

shall not be derived from user fees collected under section 60301.

(b) Clerical amendment

The analysis for chapter 601 of title 49, United States Code, is amended by adding at the end the following: