Title: 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.
Policy area: Energy

Summary:
This bill directs the Department of Energy (DOE) to establish a grant program for states to improve public safety and environmental performance of the natural gas distribution system by offsetting rate increases to low-income households and providing incentives for natural gas distribution companies to accelerate, expand, or enhance improvements to the natural gas distribution system.
Grants must be used for (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 such system.
In awarding grants under the program, DOE must prioritize applications based on the expected results of a project with respect to (1) quantifiable benefits for public safety, (2) the magnitude of methane emissions reductions, (3) innovation in technical or policy approaches, (4) the number of low-income households anticipated to benefit from the assistance, and (5) overall cost-effectiveness of the project.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5542 Introduced in House (IH)]

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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.

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

SECTION 1. IMPROVING THE NATURAL GAS DISTRIBUTION SYSTEM.

    (a) Establishment of Program.--Not later than 1 year after the date 
of enactment of this Act, the Secretary of Energy shall establish a 
program to award grants to States, in accordance with this section, for 
the purpose of improving public safety and environmental performance of 
the natural gas distribution system by offsetting rate increases to 
low-income households and providing incentives for natural gas 
distribution companies to accelerate, 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 carrying 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 accordance 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 company 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--
            (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 reflected in utility rate increases and the near-term incremental 
costs of accelerating, expanding, or enhancing improvements 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 reductions;
            (3) innovation in technical or policy approaches;
            (4) the number of low-income households anticipated 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 requirements 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 
program described in subsection (f).
    (h) Prevailing Wages.--All laborers and mechanics employed by 
contractors or subcontractors in the performance of construction, 
alteration, or repair work assisted, 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 standards 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) 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 distribution 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.
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