[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.
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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
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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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