purpose of improving public safety and environmental per-
formance of the natural gas distribution system by offset-
ting rate increases to low-income households and providing 
incentives for natural gas distribution companies to accel-
erate, expand, or enhance improvements to the natural gas 
distribution system. 
(b) GRANTS TO STATES.— 
(1) IN GENERAL.—A State may apply for a 
grant under this section to provide funds to natural 
gas distribution companies in the State that are car-
rying out an eligible project described in subsection 
(c). 
(2) REQUIREMENTS.—In applying for a grant 
under this section, a State shall demonstrate how 
the State rate-setting commission will ensure that 
funds provided under this section are used in accord-
ance with the requirements of this section. 
(c) ELIGIBLE PROJECTS.—A project that is eligible 
to be funded through a grant to a State under this section 
is a project carried out by a natural gas distribution com-
pany to accelerate, expand, or enhance the implementation 
of a plan, approved by the State before the date on which 
an application for a grant under this section is submitted 
to the Secretary, for— 
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(1) replacement of cast and wrought iron and 
bare steel pipes and other leak-prone components of 
the natural gas distribution system; or 
(2) inspection and maintenance programs for 
the natural gas distribution system. 
(d) RATE ASSISTANCE.—A natural gas distribution 
company receiving funds through a grant to a State under 
this section may use such funds only to offset the near- 
term incremental costs to low-income households as re-
flected in utility rate increases and the near-term incre-
mental costs of accelerating, expanding, or enhancing im-
provements to the natural gas distribution system included 
in the State-approved plan. 
(e) LIMIT TO TRANSITIONAL ASSISTANCE.—A State 
may provide funds to a natural gas distribution company 
under this section for a period not to exceed 4 years. 
(f) PRIORITIZATION.—In awarding grants under this 
section, the Secretary shall prioritize applications based 
on the expected results of an eligible project carried out 
pursuant to the State proposal with respect to— 
(1) quantifiable benefits for public safety; 
(2) the magnitude of methane emissions reduc-
tions; 
(3) innovation in technical or policy approaches; 
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(4) the number of low-income households antici-
pated to benefit from the assistance; and 
(5) overall cost-effectiveness of the project. 
(g) AUDITING AND REPORTING REQUIREMENTS.— 
The Secretary shall establish auditing and reporting re-
quirements for States with respect to the performance of 
eligible projects funded pursuant to grants awarded under 
this section with respect to meeting the goals of the pro-
gram described in subsection (f). 
(h) PREVAILING WAGES.—All laborers and mechan-
ics employed by contractors or subcontractors in the per-
formance of construction, alteration, or repair work as-
sisted, in whole or in part, by a grant under this section 
shall be paid wages at rates not less than those prevailing 
on similar construction in the locality as determined by 
the Secretary of Labor in accordance with subchapter IV 
of chapter 31 of title 40. With respect to the labor stand-
ards in this subsection, the Secretary of Labor shall have 
the authority and functions set forth in Reorganization 
Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 
App.) and section 3145 of title 40. 
(i) DEFINITIONS.—In this section: 
(1) 
LOW-INCOME
HOUSEHOLD.—The 
term 
‘‘low-income household’’ means a household that is 
eligible to receive payments under section 2605(b)(2) 
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of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8624(b)(2)). 
(2) NATURAL GAS DISTRIBUTION COMPANY.— 
The term ‘‘natural gas distribution company’’ means 
a person or municipality engaged in the local dis-
tribution of natural gas to the public. 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary 
$250,000,000 to carry out this section in each fiscal year 
beginning in fiscal year 2021 and ending in fiscal year 
2030. 
Æ 
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