I 

116TH CONGRESS 

2D SESSION H. R. 5542 

To require the Secretary of Energy to establish a grant program for States 

to provide incentives to natural gas distribution companies for the improvement of natural gas distribution systems, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 7, 2020 

Ms. SHERRILL (for herself and Ms. BLUNT ROCHESTER) introduced the 

following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To require the Secretary of Energy to establish a grant 

program for States to provide incentives to natural gas 

distribution companies for the improvement of natural 

gas distribution systems, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. IMPROVING THE NATURAL GAS DISTRIBUTION 

4 SYSTEM. 

5 (a) ESTABLISHMENT OF PROGRAM.—Not later than 

6 1 year after the date of enactment of this Act, the Sec7 retary of Energy shall establish a program to award 

8 grants to States, in accordance with this section, for the 


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1 purpose of improving public safety and environmental per2 formance of the natural gas distribution system by offset3 ting rate increases to low-income households and providing 

4 incentives for natural gas distribution companies to accel5 erate, expand, or enhance improvements to the natural gas 

6 distribution system. 

7 (b) GRANTS TO STATES.— 

8 (1) IN GENERAL.—A State may apply for a 

9 grant under this section to provide funds to natural 

10 gas distribution companies in the State that are car11 rying out an eligible project described in subsection 

12 (c). 

13 (2) REQUIREMENTS.—In applying for a grant 

14 under this section, a State shall demonstrate how 

15 the State rate-setting commission will ensure that 

16 funds provided under this section are used in accord17 ance with the requirements of this section. 

18 (c) ELIGIBLE PROJECTS.—A project that is eligible 

19 to be funded through a grant to a State under this section 

20 is a project carried out by a natural gas distribution com21 pany to accelerate, expand, or enhance the implementation 

22 of a plan, approved by the State before the date on which 

23 an application for a grant under this section is submitted 

24 to the Secretary, for— 


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1 (1) replacement of cast and wrought iron and 

2 bare steel pipes and other leak-prone components of 

3 the natural gas distribution system; or 

4 (2) inspection and maintenance programs for 

5 the natural gas distribution system. 

6 (d) RATE ASSISTANCE.—A natural gas distribution 

7 company receiving funds through a grant to a State under 

8 this section may use such funds only to offset the near9 term incremental costs to low-income households as re10 flected in utility rate increases and the near-term incre11 mental costs of accelerating, expanding, or enhancing im12 provements to the natural gas distribution system included 

13 in the State-approved plan. 

14 (e) LIMIT TO TRANSITIONAL ASSISTANCE.—A State 

15 may provide funds to a natural gas distribution company 

16 under this section for a period not to exceed 4 years. 

17 (f) PRIORITIZATION.—In awarding grants under this 

18 section, the Secretary shall prioritize applications based 

19 on the expected results of an eligible project carried out 

20 pursuant to the State proposal with respect to— 

21 (1) quantifiable benefits for public safety; 

22 (2) the magnitude of methane emissions reduc23 tions; 

24 (3) innovation in technical or policy approaches; 


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1 (4) the number of low-income households antici2 pated to benefit from the assistance; and 

3 (5) overall cost-effectiveness of the project. 

4 (g) AUDITING AND REPORTING REQUIREMENTS.— 

5 The Secretary shall establish auditing and reporting re6 quirements for States with respect to the performance of 

7 eligible projects funded pursuant to grants awarded under 

8 this section with respect to meeting the goals of the pro9 gram described in subsection (f). 

10 (h) PREVAILING WAGES.—All laborers and mechan11 ics employed by contractors or subcontractors in the per12 formance of construction, alteration, or repair work as13 sisted, in whole or in part, by a grant under this section 

14 shall be paid wages at rates not less than those prevailing 

15 on similar construction in the locality as determined by 

16 the Secretary of Labor in accordance with subchapter IV 

17 of chapter 31 of title 40. With respect to the labor stand18 ards in this subsection, the Secretary of Labor shall have 

19 the authority and functions set forth in Reorganization 

20 Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 

21 App.) and section 3145 of title 40. 

22 (i) DEFINITIONS.—In this section: 

23 (1) LOW-INCOME HOUSEHOLD.—The term 

24 ‘‘low-income household’’ means a household that is 

25 eligible to receive payments under section 2605(b)(2) 


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1 of the Low-Income Home Energy Assistance Act of 

2 1981 (42 U.S.C. 8624(b)(2)). 

3 (2) NATURAL GAS DISTRIBUTION COMPANY.— 

4 The term ‘‘natural gas distribution company’’ means 

5 a person or municipality engaged in the local dis6 tribution of natural gas to the public. 

7 (j) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to the Secretary 

9 $250,000,000 to carry out this section in each fiscal year 

10 beginning in fiscal year 2021 and ending in fiscal year 

11 2030. 

Æ 


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