FY 2023 NGDISM NOFO final extension.pdf

NOFO 693JK323NF0014

U.S. DOT/PHMSA Page 1 of 39 FY 2023 Natural Gas Distribution Infrastructure Safety and Modernization Grant Program

Notice of Funding Opportunity

Natural Gas Distribution Infrastructure Safety and Modernization Grant Program

Fiscal Year (FY) 2023

NOFO Posted Date:

Applications Due Date:

Questions Due Date:

May 23, 2023 August 4, 2023, 5:00 p.m. PST June 22, 2023, 11:59 p.m. EST

Assistance Listing (formerly CFDA)

20.708 “Natural Gas Distribution Infrastructure Safety and Modernization Grant Program1“

Applicants must be registered at www.Grants.gov to apply online.

Applicants must maintain an active registration in the System for Award Management (SAM) at www.SAM.gov.

Applicants are encouraged to register with FedConnect at https://www.fedconnect.net for an account before submitting an application.

Section D.6, Other Submission Requirements, contains more information on Grants.gov, Sam.gov, and FedConnect systems.

1 https://www.phmsa.dot.gov/grants/pipeline/natural-gas-distribution-infrastructure-safety-and-modernization-grants

U.S. Department of Transportation

Pipeline and Hazardous Materials

Safety Administration

(PHMSA)

U.S. DOT/PHMSA Page 2 of 39 FY 2023 Natural Gas Distribution Infrastructure Safety and Modernization Grant Program

Table of Contents

SECTION A – PROGRAM DESCRIPTION

A.1 Program Overview A.2 Statute and Program Authority A.3 Background A.4 Program Goals and Objectives

SECTION B – FEDERAL AWARD INFORMATION

B.1 Award Size and Amount Available B.2 Period of Performance B.3 Type of Award B.4 Availability of Funds

SECTION C – ELIGIBILITY INFORMATION

C.1 Eligible Applicants C.2 Cost Sharing or Matching C.3 Other Criteria

SECTION D – APPLICATION AND SUBMISSION INFORMATION

D.1 Address to Request Application Package D.2 Content and Form of Application Submission D.3 Unique Entity Identifier (UEI) and System for Award Management D.4 Submission Dates and Times D.5 Funding Restrictions D.6 Other Submission Requirements

SECTION E – APPLICATION REVIEW INFORMATION

E.1 Criteria E.2 Review and Selection Process E.3 Database for Integrity and Performance of Awarded Federal Grants E.4 Anticipated Announcement and Federal Award Dates

SECTION F – FEDERAL AWARD ADMINISTRATION INFORMATION

F.1 Federal Award Notice F.2 Administrative and National Policy Requirements F.3 Reporting Requirements

SECTION G – FEDERAL AWARDING AGENCY CONTACTS

SECTION H – OTHER INFORMATION

Freedom of Information Act Protection of Confidential Business Information/Freedom of Information Act

DEFINITIONS

U.S. DOT/PHMSA Page 3 of 39 FY 2023 Natural Gas Distribution Infrastructure Safety and Modernization Grant Program

PROGRAM SUMMARY

Federal Agency Name:

Funding Opportunity Title:

Announcement Type:

Funding Opportunity Number:

Assistance Listing Number:

NOFO Posted Date:

Application Due Date:

Question Due Date:

U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration

(PHMSA)

Natural Gas Distribution Infrastructure Safety and Modernization Grant Program - FY 2023

Initial Announcement

693JK323NF0014

20.708

May 23, 2023 August 4, 2023, 5:00 p.m. PST June 22, 2023, 11:59 p.m. EST

U.S. DOT/PHMSA Page 4 of 39 FY 2023 Natural Gas Distribution Infrastructure Safety and Modernization Grant Program

Natural Gas Distribution Infrastructure Safety and Modernization Grant Program FY 2023 Notice of Funding Opportunity (NOFO)

MISSION

The mission of the U.S. Department of Transportation (DOT or Department) is to deliver the world’s leading transportation system, serving the American people and economy through the safe, efficient, sustainable, and equitable movement of people and goods. The top priority of DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is safety, with our mission being to protect people and the environment by advancing the safe transportation of energy and hazardous materials that are essential to our daily lives. As part of this mission, PHMSA administers a national regulatory safety program for the approximately 3.4 million miles of interstate and intrastate pipelines in the United States. PHMSA establishes national policy, sets and enforces standards, educates, and conducts research to prevent incidents.

PHMSA also prepares the public and first responders to reduce consequences if an incident does occur and administers numerous federal grants to advance pipeline safety and protect the environment.

SECTION A – PROGRAM DESCRIPTION

A.1 Program Overview

The Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant’s eligible entities are municipality- or community-owned utilities, not including for-profit entities, needing assistance in repairing, rehabilitating, or replacing high-risk, leak-prone natural gas distribution infrastructure, or in acquiring equipment to reduce incidents and fatalities and avoid economic losses. The NGDISM Grant Program also strives to create good-paying jobs,2 promote economic growth, and benefit disadvantaged rural and urban communities with safe provision of natural gas.

Assistance Listing: 20.708

Complete application packages are due via Grants.gov no later than 5:00 p.m., PST, August 4, 2023. Also see Section D.4.

A.2 Statute and Program Authority

Division J of the Infrastructure Investment and Jobs Act (IIJA) (Pub. L. 117-58) provides funding for the NGDISM Grant Program.

A.3 Background

On November 15, 2021, President Biden signed the IIJA, which is the most significant investment in our Nation’s infrastructure in more than half a century. This includes PHMSA’s

2 See Definitions section, Good-paying jobs.

U.S. DOT/PHMSA Page 5 of 39 first ever NGDISM Grant Program. The legislation designates $200 million per year in grant funding with a total of $1 billion in grant funding over five years to improve the safety of high-risk, actively leaking, or leak-prone natural gas distribution infrastructure and create good-paying jobs, with an emphasis on benefiting underserved communities, in both rural and urban areas.

The legislation also authorizes PHMSA to use up to $4 million for each fiscal year for administrative expenses. Subject to the availability of funds, PHMSA will make fiscal years 2023 and 2024 funding available under this NOFO for a total of $392 million.

A.4 Program Goals and Objectives

The goals of the NGDISM Grant Program are to:

(1) advance the safe delivery of energy through reducing the risk profile of existing municipal- and community-owned natural gas distribution infrastructure that contains high-risk, leaking, and/or leak-prone pipe;

(2) focus on projects that will have the greatest benefits for communities of all sizes needing the most support to make their natural gas distribution pipelines safer for their residents and businesses, and to protect our environment from dangerous incidents and/or leaks;

(3) benefit underserved and/or disadvantaged communities, in both rural and urban areas, by reducing incidents and fatalities, and avoiding economic losses caused by natural gas distribution pipeline failures;

(4) protect our environment and reduce climate impacts by remediating aged and failing natural gas distribution pipelines and distribution pipe prone to leakage;

(5) provide positive economic impact and growth; and

(6) create and sustain good-paying infrastructure-related jobs.

The Administration’s priority and Departmental Strategic Plan priorities are:

Safety: The Department is committed to advancing safe, efficient transportation, including in the NGDISM Grant Program.

Climate Change and Sustainability: The Department seeks to fund projects under the NGDISM Grant Program that reduce greenhouse gas emissions in the transportation sector; incorporate evidence-based climate resilience measures and features; reduce the lifecycle greenhouse gas emissions from the project materials and avoid adverse environmental impacts to air or water quality, wetlands, and endangered species; and address the disproportionate negative environmental impacts of transportation on disadvantaged communities, consistent with Executive Order 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619).3

Equity: The Department seeks to award projects under the NGDISM Grant Program that will create proportional impacts to all populations in a project area, remove transportation-related disparities to all populations in a project area, and increase equitable access to project benefits, consistent with Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government (86 FR 7009).

Workforce Development, Job Quality, and Wealth Creation: The Department intends to use the NGDISM Grant Program to support the creation of good-paying jobs with the

3 See U.S. DOT Strategic Framework FY 2022–2026 (Dec. 2021) at https://www.transportation.gov/administrations/office-policy/fy2022-2026-strategic-framework

U.S. DOT/PHMSA Page 6 of 39 free and fair choice to join a union, and the incorporation of strong labor standards and training and placement programs, especially registered apprenticeships, in project planning stages, consistent with Executive Order 14025, Worker Organizing and Empowerment (86 FR 22829), and Executive Order 14052, Implementation of the Infrastructure Investment and Jobs Act (86 FR 64335). The Department also intends to use the NGDSIM Grant Program to support wealth creation, consistent with the Department’s Equity Action Plan, through local inclusive economic development and entrepreneurship, such as the utilization of Disadvantaged Business Enterprises, Minority-Owned Businesses, Women-Owned Businesses, or 8(a) firms.

SECTION B – FEDERAL AWARD INFORMATION

B.1 Award Size and Amount Available

Congress appropriated $1 billion over five years to implement and administer the NGDISM Grant Program, with $200 million appropriated annually and up to $4 million to be used for PHMSA’s administrative costs. PHMSA will make available up to $392 million utilizing FY 2023 and FY 2024 funding for NGDISM grants under this NOFO. Should additional NGDISM funds become available after the release of this NOFO, PHMSA may elect to award such additional funds to applications received under this NOFO. Any selection and award under this NOFO are subject to the availability of appropriated NGDISM funds. The decision to utilize two fiscal years of funding in this NOFO should not be construed as the amount of funding PHMSA will offer in future years.

There is no award minimum amount.

Applicants may submit applications for multiple projects. PHMSA anticipates making multiple awards with the available funding. PHMSA will try to fully fund as many Highly Recommended applications as possible. PHMSA may not be able to award grants to all eligible applications even if they score highly during the evaluation. PHMSA strongly encourages applicants to propose projects that have operational independence or a component of such a project.

Award(s) to a single entity may not be more than 12.5 percent of the total available funds for the grant program ($1 billion). Therefore, during this five-year grant program, a single entity cannot receive more than $125 million in NGDISM funding.

B.2 Period of Performance

The period of performance is up to 60 months.

B.3 Type of Award

PHMSA will make discretionary awards via grant agreements for projects selected under this NOFO. NGDISM award disbursements to recipients will be for eligible costs incurred on a reimbursable basis. Consistent with 2 CFR Part 200, recipients must certify that their

U.S. DOT/PHMSA Page 7 of 39 expenditures are allowable, allocable, reasonable, and necessary to the approved project(s) before requesting reimbursement.

B.4 Availability of Funds

The IIJA makes FY 2023 NGDISM grant funds available for award/obligation through September 30, 2034, and FY 2024 grant funds available for award/obligation through September 30, 2035. There is no pre-award authority to incur costs for these projects before the effective date of the federal award. At the time project selections are announced, DOT may extend pre-award authority for the selected projects. Unless authorized by DOT in writing, costs incurred prior to award of grant funding under this NOFO via a signed grant agreement (“pre-award costs”) are ineligible for reimbursement.4

SECTION C – ELIGIBILITY INFORMATION

C.1 Eligible Applicants

The FY 2023 NGDISM Grant Program is open to the following entities:

a. City or township governments owning and operating a natural gas distribution system

b. Community-owned utilities owning and operating a natural gas distribution system

(owned by the customers it serves)

c. County governments owning and operating a natural gas distribution system

d. Municipality-owned utilities owning and operating a natural gas distribution system

(owned by a local government)

e. Native American tribal governments (federally recognized) owning and operating a natural gas distribution system

For-profit entities are not eligible for NGDISM grant funding.

C.2 Cost Sharing or Matching

There are no cost-sharing or matching requirements in the NGDISM Grant Program.

Applicants may propose projects that involve non-federal contributions and describe in their application the nature and impact of the non-federal contribution on the proposed project(s)/equipment. Cost share/matching (the amount of non-federal contribution) is not a merit criterion or a competitiveness factor.

C.3 Other Criteria

See Section B for funding ceilings for projects and entities/applicants.

4 Pre-award costs are only costs incurred directly pursuant to the negotiation and anticipation of the NGDISM grant award where such costs are necessary for efficient and timely performance of the scope of work, as consistent with 2 CFR Part 200 determined by DOT.

U.S. DOT/PHMSA Page 8 of 39

If an applicant was unsuccessful in obtaining grant funding for their project in a previous fiscal year NGDISM award period, the applicant may submit a new application for the same project for each fiscal year that NGDISM funding is made available.

If an applicant is successful in obtaining grant funding in a previous year NGDISM NOFO, the applicant may submit new application(s)/projects for each fiscal year that NGDISM grant funding is made available. Similarly, if an applicant previously received partial funding, a request for additional funding to complete the project is allowable.

The entity/applicant must be the owner of the natural gas distribution pipeline system at the time of application. Entities operating both transmission and distribution systems may apply for projects involving their distribution systems.

NGDISM funds are to repair, replace, or rehabilitate existing pipeline distribution infrastructure.

Installing or extending new natural gas capabilities are not eligible for the NGDISM Grant Program. For example, a project that proposes to install or extend new pipe for the purposes of providing services to new customers would not be eligible.

SECTION D – APPLICATION AND SUBMISSION INFORMATION

D.1 Address to Request Application Package

The application package can be accessed at www.Grants.gov. Applicants are to download the application package associated with this funding opportunity by following the directions provided on www.Grants.gov.

To request a hard copy of the application package (may be sent via postal mail, FedEx, or e-mail), please contact:

NGDISM Grant Team

E22-321 (PHP-3)

Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Ave. SE Washington, DC 20590 E-mail: PHMSAPipelineBILGrant@dot.gov Phone: 202-366-7652

If you are hearing-impaired, please contact the FR/TTY at 1-800-877-8339 or e-mail PHMSA-Accessibility@dot.gov.

D.2 Content and Form of Application Submission

Applications for the FY 2023 NGDISM Grant Program should be submitted in electronic format in Grants.gov. See Section D.6 for additional information on Grants.gov.

To ensure application fairness for all, PHMSA will be unable to meet with applicants or discuss applications with applicants during the submission period. Refer to PHMSA’s Frequently Asked Questions document (FAQs) posted on PHMSA’s NGDISM website.

U.S. DOT/PHMSA Page 9 of 39

There are two sections: Standard Forms that an applicant downloads and completes from Grants.gov under the FY 2023 NGDISM Grant Program funding opportunity; and Attachments the applicants will create and upload per the NOFO requirements.

Standard Forms

The following forms are found on Grants.gov under the FY 2023 NGDISM Grant Program funding opportunity and must be completed by the applicant and must be included as part of the application for funding.

1. Standard Form (SF)-424 – Application for Federal Assistance and either:

Equipment Only without construction (pipeline infrastructure improvements):

SF-424A - Budget Information - Non-Construction Programs SF-424B - Assurances for Non-Construction Programs

OR

Construction (with pipeline infrastructure improvements) with/without equipment:

SF-424C - Budget Information for Construction Programs SF-424D - Assurances for Construction Program

AND

2. Budget Narrative Attachment Form

3. Project Narrative Attachment Form

4. Grants.gov Lobbying Form - Certification Regarding Lobbying

5. USDOT Standard Title VI/Non-Discrimination Assurances

a. Non-USDOT Standard Title VI/Non-Discrimination Assurances forms are not acceptable.

Attachments

The following applicant attachments are created by the applicant and uploaded to Grants.gov under the FY 2023 NGDISM Grant Program funding opportunity to be included as part of the applicant’s grant application package.

1. Project Narrative

2. Budget Narrative

3. Indirect cost rate agreement, and/or statement claiming a 10-percent de minimis rate (if applicable).

4. Most current relevant portion(s) of your Distribution Integrity Management Plan (DIMP) that support your application.

5. Most current USDOT/PHMSA Gas Distribution System Annual Report (GDAR).

U.S. DOT/PHMSA Page 10 of 39

6. Additional optional attachments (if applicable).

Electronic Format: All application/attachment file are to be in Word, Excel, PowerPoint, Adobe, and/or picture/image (GIF, JPEG, PNG) formats. For any other file formats, PHMSA does not have the application/software to open/view these files therefore any information in other file formats will not be considered during the application review(s).

Sharing of Application Information: Except for the information properly marked as described in Section H, the Department may share application information within the Department or with other federal agencies if the Department determines that sharing is relevant to the respective program’s objectives.

Project Narrative

The following Project Narrative sections 1–8 are required. Applicants should clearly identify the sections in the Project Narrative and follow the structure requested/prescribed order in this

NOFO.

1. Cover Letter

2. Applicant Eligibility and Statement of Authority and Pipeline Infrastructure Safety and

Modernization Capabilities

3. Project Summary

4. Detailed Project Description

5. Projected Outputs and Objectives

6. Project Implementation and Management

7. Statement Certifying Compliance with Equity Requirement

8. Domestic Preference/Buy America

PHMSA recommends that the Project Narrative be prepared with standard formatting preferences (a single-spaced document, using a standard 12 point font such as Times New Roman, with 1 inch margins, and narrative text in one column only). The Project Narrative may not exceed 25 pages in length (excluding cover pages, table of contents, and supporting documents/attachments). Applicants may submit supporting documents via website links rather than hard copies. It is important to ensure the website links are currently active, accessible, and working. If supporting documents are submitted, applicants must clearly identify the page number(s) of the relevant portion in the Project Narrative supporting documentation. PHMSA recommends using appropriately descriptive file names (e.g., “Project Narrative,” “Maps,” “Letters of Support”) for all attachments. PHMSA will not review or consider Project Narrative pages beyond the 25 page limitation, non-working weblinks, and/or attachments’ file formats that do not meet Electronic Format guidance in Section D.6.

1. Cover Letter.

Name and Title of this NOFO.

Organization/Natural Gas System’s Name. This should include: (1) your organization’s/natural gas system’s name; (2) a brief overview of the governance structure of your organization/system and/or natural gas system’s leadership; and

U.S. DOT/PHMSA Page 11 of 39

(3) your organization’s/system’s experience and capacity, or the ability to obtain experience and capacity, to manage federal grant programs.

Contact Information. Identify the individual name(s) and position title(s), address, email address, and telephone number of the person(s) who will be the

1. Project Representative(s) responsible for coordinating all the funded project activities; and

2. Authorized Representative(s) who will accept the awarded grant document(s).

2. Applicant Eligibility and Statement of Authority and Pipeline Infrastructure Safety and Modernization Capabilities. A statement by the applicant verifying/affirming they are a municipal- or community-owned gas distribution utility and have the legal authority and capability to perform pipeline infrastructure repairs, rehabilitation, or replacement, in accordance with 49 CFR § 192, and to purchase equipment.

3. Project Summary.

Summary: The project summary must be in paragraph form providing a high-level overview of the overall project/equipment needed to repair, rehabilitate, or replace the natural gas distribution pipeline system and its major components. The project summary should be concise yet sufficiently detailed, including a summary of program goals being met, such as total miles of pipe replaced, existing pipeline material being replaced, age of pipe being replaced, total number of jobs created for the project and within the community (utilizing, for example, the Bureau of Labor Statistics’ job multiplier estimates), estimated amount of methane emissions-reductions, and if environmental approvals/permits are anticipated.

Project Prioritization:

Natural gas distribution project means activities that will repair, rehabilitate, or replace existing distribution lines or components of distribution systems or purchases of equipment that will (1) reduce incidents and fatalities and (2) avoid economic losses. Each activity should be shown as a separate project. (i.e., Project 1 - purchase of equipment, Project 2 - replace 2 miles of 2-inch cast iron pipe etc.). Each project should be described in detail and should be ranked by priority or most at-risk component. Please ensure all pipe lengths are described in miles.

The proposed project should include reasonable boundaries or segments of pipeline that can be replaced within the period of performance. A table has been provided should the applicant wish to utilize it. Please ensure Project Prioritization numbering is consistent throughout the application documents.

U.S. DOT/PHMSA Page 12 of 39

Project number.

Project Title

(ex. Repair, Replace, Rehabilitate, Equipment Purchase etc.)

Project Description (To include location, age and type of pipe to be repaired or replaced, equipment to be purchased, etc.)

Funds Requested (Round cents to whole dollars)

Total Number of Miles (To be repaired or replaced, if applicable)

Priority Ranking (Highest – Lowest)

1. Replacement of pipe This project will replace

2.3 miles of 1960 PVC plastic pipe with PE pipe as well as 5.2 miles of 1980 cast iron pipe that was installed as part of our distribution system. It will eliminate methane emissions due to leaks on the current pipe.

$1,500,000 7.5 miles Highest

2.

Equipment Purchase This project is to purchase four handheld laser leak detection devices for municipal staff to use when inspecting lines.

$52,000 N/A Lowest

Project Location:

If available at the time of application, and/or if applicable, include geospatial data for the project. If project is not geospatially specific, include replacement of assets throughout a service area or the purchase of equipment. If the project includes the repair, rehabilitation, or replacement of assets throughout your system, please generally describe the area where the proposed project will occur. Identify if all, partial, or none of the project is located in a disadvantaged rural or urban area.5 DOT has made the following tool available for applicants to identify disadvantaged communities in their area: DOT Equitable Transportation Community (ETC) Tool or the Explorer Tool6. Applicants are encouraged to provide an image of the map tool outputs. For sensitive map data, please mark the document/images as confidential.

Project Schedule:

If not available at the time of application submission, provide best available project schedule estimates/projections.

The project schedule identifies all major project milestones from start to completion.

The project schedule should be sufficiently detailed to demonstrate that:

a. all necessary activities will be completed to allow NGDISM Grant Program funds to be expended within the period of performance;

b. all real property and right(s)-of-way acquisition and/or utility easements will be completed in a timely manner in accordance with 49 CFR Part 24, 23 CFR Part 710, and other applicable legal requirements, or a statement

5 See Definitions section, Disadvantaged Community.

6 https://experience.arcgis.com/experience/0920984aa80a4362b8778d779b090723/page/ETC-Explorer---National- Results/

U.S. DOT/PHMSA Page 13 of 39 that real property, right(s)-of-way acquisition, utility easements, and/or applicable legal requirements are not needed;

c. community input has been or will be fostered through meaningful public involvement, particularly engaging with disadvantaged rural and urban communities that may be affected by the project where applicable; and

d. applicable required project approvals have been completed, such as a high-level screening of fatal flaw environmental impacts (see below “Requirements if PHMSA notifies an applicant of its intent to make a Federal award”); design completion; approval of plans, specifications, and estimates; procurement; state and local approvals; project partnership and implementation agreements; environmental permits; and executed/projected construction agreements.

Project Eligibility:

Examples of eligible grant project expenses may include the following:

Construction costs including labor costs related to repairing, rehabilitating, or replacing leak prone natural gas pipeline distribution infrastructure, which includes main lines, service lines, and related components.

Equipment costs related to repairing, rehabilitating, or replacing natural gas pipeline distribution infrastructure and/or related to reducing incidents and fatalities, and avoiding economic losses.

Equipment purchases to improve an operator’s leak detection system, to address a risk that could lead to the unsafe operation of a system, and/or to improve an operator’s ability to locate difficult to find legacy pipelines.

Examples of ineligible grant project expenses based on statutory requirements include the following:

Projects involving transmission lines, including proposals to lower a transmission line to meet the existing code requirements.

Extending new natural gas services.

Electrification.

Removal of propane tanks and installing a natural gas piping system.

Propane community gas systems. Peak shaving LNG facilities.

Replacement of customer-owned assets/yard line(s).

Project Funding:

Indicate in a table format the total amount of federal funding requested and total project cost. If more than one project and/or the project(s) will be completed in phases, list funding and estimated timeline details per project(s)/phase(s).

Identify whether partial funding would be accepted in order to complete the project and the level of minimum funding needed.

Identify whether the replacement, rehabilitation, or repair project was in process prior to the announcement of this award; and whether and by how much the grant would expedite the project or expand the scope or impacts of the project. This will not affect grant award rating(s).

U.S. DOT/PHMSA Page 14 of 39

Detailed Project Description that includes:

The scope, schedule, location, and budget for each proposed project. If applicable, the projects should be listed according to the risk/safety priority order described in the Project Prioritization section.

Description of materials being replaced, repaired, or rehabilitated, and a general description of the construction methods to be used (i.e., cut and cover, insertion).

Describe any relocations, abandonments, and upsizing.

Sufficient detail such as project planning, preparation, or design including site design;

maps; site photos, if available; an aerial photograph of the site depicting the proposed location; engineering drawings, if available at the time of application submission;

environmental and community impacts; and other pre-construction activities of eligible pipeline infrastructure projects.

Identify and measure expected outcomes of the proposed work and monitoring progress toward completing project tasks and deliverables during the period of performance.

Safety risk profile describing the condition of the current infrastructure for which funding is being requested and list the safety benefits. This should include relevant data, leak statistics, and risk analysis that are present in the operator’s DIMP.

Plan for creating good-paying jobs7 that provide economic impact, growth, and substantial benefits to disadvantaged rural or urban communities.

Capacity to provide a reduction in lifecycle greenhouse gas emissions and any other impacts that are beneficial to the environment or public.

Confirmation that a plan is in place or will be in place for compliance with civil rights obligations and nondiscrimination laws, including Title VI of the Civil Rights Act of 1964 and implementing regulations (49 CFR Part 21), the Americans with Disabilities Act of 1990 (ADA), and Section 504 of the Rehabilitation Act, all other civil rights requirements and accompanying regulations. If there are any questions concerning the responsibilities under the External Civil Rights Program, please contact Rosanne Goodwill, PHMSA Civil Rights Director, at 202-366-6580 or e-mail PHMSACivilRights@dot.gov.

4. Projected Outputs and Objectives. Provide quantifiable and measurable outputs planned for the grant’s period of performance. Outputs are quantitative data that describe the proposed activities. For repair, rehabilitation, or replacement of natural gas distribution pipeline infrastructure, or portions thereof, or acquisition of equipment, outputs should include:

(1) the quantity (e.g., mileage, age, and diameter) of pipeline affected;

(2) if applicable, cost of equipment purchased for the project;

(3) an estimate of the number of jobs the project may create;

(4) an estimate of the project’s potential for benefiting disadvantaged rural and urban communities;

(5) an estimate of the economic impact or growth over the length of the project; and

(6) an estimate of the reduction in methane emissions attributable to the project, including the method of calculation.

7 See Definitions, Good-paying jobs.

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Additionally, broader outcomes or goals may be provided to describe the intended impact of the proposed outputs. This can be either quantitative or qualitative and should reflect the projected impact of the grant activity outputs.

PHMSA will consider the extent to which the project addresses the following project output criteria, which are explained in greater detail in Section E.1 under Additional Priority and Selection Considerations and reflect the key program objectives.

Output Criteria #1: Safety: Applicants must address how their project provides substantial safety benefits. Applicants must include whether and how their project may negatively impact the overall safety of the public. The applicant must include information on, and to the extent possible quantify, how the project will improve the safe delivery of energy to communities, reducing incidents and fatalities as well as reducing leaks within the project area. Prior to receiving funds, all projects are expected to, at a minimum, identify and mitigate to the extent practicable any significant safety risks that could result after the project completion.

Output Criteria #2: Climate Change and Sustainability: The applicant must describe how its project(s) contributes towards protecting our environment and climate by remediating leak-prone pipelines and/or by purchasing equipment to aid in detecting or potentially mitigating leaks. Applicants must address how the project will consider climate change and environmental justice in the planning stage and in project delivery. In particular, applicants must address the extent to which the project reduces greenhouse gas emissions; incorporates evidence-based climate resilience measures and features; and reduces the lifecycle greenhouse gas emissions. Applicants also must address the extent to which the project addresses disproportionate negative impacts of climate change and pollution on disadvantaged communities, including natural disasters, with a focus on prevention, response, and recovery.

Also see below “Requirements if PHMSA notifies an applicant of its intent to make a Federal award.”

Output Criteria #3: Workforce Development, Job Quality, and Wealth Creation: Applicants must describe how their project will contribute to at least one of these outputs:

(1) create good-paying jobs8 with free and fair choice to join a union in pipeline project construction and in on-going operations and maintenance, and incorporate strong labor standards, such as paying good wages and benefits, and the use of project labor agreements; promote investments in high-quality workforce development programs with supportive services to help train, place, and retain people in good-paying jobs, with a focus on women, people of color, and others that are underrepresented in infrastructure jobs (people with disabilities, people with convictions, etc.);

8 See Definitions, Good-paying jobs.

U.S. DOT/PHMSA Page 16 of 39 and change hiring policies and workplace cultures to promote the entry and retention of underrepresented populations;

(2) result in workforce opportunities for historically underrepresented groups, such as through the use of local hire provisions, the use of community benefits agreements, or other workforce strategies targeted at or jointly developed with historically underrepresented groups, to support project development;

(3) how the project promotes local inclusive economic development and entrepreneurship such as the utilization of Disadvantaged Business Enterprises, Minority-Owned Businesses, Women-Owned Businesses, or 8(a) firms; and/or,

(4) foster economic growth and development, creating long-term, high-quality jobs, addressing acute challenges, such as energy sector job losses in energy communities as identified in the report released in April 2021 by the interagency working group established by Section 218 of Executive Order 140089.

Output Criteria #4: Equity: Applicants must address how their project will include an equity assessment that evaluates whether a project will create proportional impacts and remove infrastructure related disparities to all populations in a project area. Applicants must demonstrate how meaningful public engagement will occur throughout a project’s life cycle. Applicants must address how project benefits will improve safety, connect Americans to good-paying jobs,10 fight climate change, and/or improve access to resources and quality of life. Applicants are encouraged to use DOT’s Equitable Transportation Community (ETC) Tool or Explorer Tool11 or equivalent tools in their assessment.

5. Project Implementation and Management. Provide a description of the monitoring and quality assurance plan to ensure successful project completion within the period of performance. Describe how your organization will ensure the applicable federal pipeline safety regulations will be followed and grant funds are used appropriately. These may include, but are not limited to, ensuring your DIMP is up to date; implementing safety and performance checks and inspections; and conducting audits of the project.

6. Statement Certifying Compliance with Equity Requirement. Applicants must include a statement certifying they are currently complying (or will comply) with Executive Order (EO) 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. Equity means the consistent and systematically fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous persons, Asian Americans and Pacific Islanders; other persons of color;

9 Initial Report to the President on Empowering Workers Through Revitalizing Energy Communities (doe.gov) 10 See Definitions, Good-paying jobs.

11 https://experience.arcgis.com/experience/0920984aa80a4362b8778d779b090723/page/ETC-Explorer---National- Results/

U.S. DOT/PHMSA Page 17 of 39 members of religious minorities; lesbian, gay, bisexual, transgender, and queer persons;

persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

7. Domestic Preference/Buy America. Applicants must include a statement certifying they will comply with Domestic Preference/Buy America and, if applicable, include an assessment of materials, products, or manufactured products that would require an exception or waiver of the Buy America provisions.

Budget Narrative

The Budget Narrative is a detailed explanation of each budget item, which supports the cost of the proposed project(s) and/or equipment. The Budget Narrative should itemize and justify how budget items’ total is calculated. For example, for personnel salary include job title, job function(s), payrate, percentage or hours expected to work on the project to get the total of the line-item expense. The Budget Narrative should be clear, specific, detailed, and mathematically correct. The Budget Narrative needs to correspond to the SF-424A’s or SF-424C’s line-item categories. Please round cents to whole dollars in the Budget Narrative.

Grant Funds, Sources and Uses of Project Funds - Project budgets should show how different funding sources will share in each activity and present those data in dollars and percentages. The budget should identify other federal funds, if any, that the applicant intends to use for the project.

Funding sources should be grouped into three categories: non-federal, NGDISM Grant Program, and other federal with specific amounts from each funding source.

Expense Categories - A well-developed Budget Narrative is an effective monitoring tool for both the awarding agency and the grant recipient. However, a Budget Narrative that does not accurately represent a project’s needs makes it difficult to recommend for funding and to assess financial performance over the life of the project. Once a grant agreement is executed, PHMSA is unable to add additional grant funding to cover additional costs. However, if the award is for more than the actual costs, PHMSA will reimburse for the actual costs.

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Applications for projects that are equipment only (e.g., leak detection equipment) will need to submit the SF-424A (Budget Information - Non-Construction Programs)

Category/Line Item Enter Amount Personnel Not applicable for equipment only applications Fringe Benefits Not applicable for equipment only applications Travel Not applicable for equipment only applications

Equipment Yes, if applicable.

Equipment purchases of $5,000 or more

Supplies Yes, if applicable.

Equipment purchases of less than $5,000 should be listed under “Supplies” or “Other.”

Contractual

Yes, if applicable.

Analyze the cost benefits of purchasing versus leasing equipment, particularly high-cost items, and those subject to rapid technical advances. List rented or leased equipment costs in the “Contractual” or “Other” category, depending upon the procurement method.

Construction Not applicable for equipment only applications. Use the SF- 424C.

Other

Yes, if applicable.

Equipment purchases of less than $5,000 should be listed under “Supplies” or “Other.”

Analyze the cost benefits of purchasing versus leasing equipment, particularly high-cost items, and those subject to rapid technical advances. List rented or leased equipment costs in the “Contractual” or “Other” category, depending upon the procurement method.

See SF-424A instructions for other acceptable expenses for “Other.”

Indirect Charges Not applicable for equipment only applications

The purchase of equipment to reduce methane emissions during rehabilitation, repair, or replacement activities is an allowable program cost. Each item of equipment must be identified with the corresponding cost; general purpose equipment must be justified as to how it will be used on the project. Applicants should analyze the cost benefits of purchasing versus leasing equipment, particularly high-cost items, and those subject to rapid technical advances.

PHMSA encourages all applicants to reference in their applications how they plan to utilize pipeline blowdown mitigation practices, if applicable; for example:

• Diverting to lower pressure pipelines: Transfer gas to a parallel line.

• In-Line compression: Operate downstream compression after upstream valve is closed.

• Mobile compression: Use additional compressors to move gas or pull line down to lower pressure (e.g., incremental gain).

U.S. DOT/PHMSA Page 19 of 39

• Vacuum Purge Technology: Removal of air in a natural gas pipeline with vacuum equipment.

SF-424C Construction with or without equipment purchase For more details, see category instructions/guidance on Grants.gov, Forms tab, 424-family.

Category/Line Item Enter Amount Administrative and legal expenses If applicable.

Land, structures, rights-of-way, appraisals, etc. If applicable.

Relocation expenses and payments If applicable.

Architectural, environmental, and engineering fees

If applicable.

Other architectural and engineering fees If applicable.

Project inspection fees If applicable.

Site work If applicable.

Demolition and removal If applicable.

Construction If applicable.

Equipment If applicable.

Miscellaneous If applicable.

Contingencies

If applicable and not to exceed 10 percent of land, structures, rights-of-way, appraisals, etc. and construction categories only.

Project (program) income If applicable.

Applicants are encouraged to account for all anticipated costs, including price fluctuations, anticipated environmental costs, anticipated costs with federal grants management training, and costs associated with single audits and program audits when preparing project budgets.

If selected for an award, PHMSA highly encourages recipients who may have little to no experience managing federal awards to take federal grants management training for staff who will be working on the programmatic or financial aspects of the grant. This training is available in person or online and is offered by various vendors nationwide. Such training will ensure that recipients who are selected for awards fully understand and are prepared to manage the requirements associated with complying with a federal award.

This training is recommended to be taken at the beginning of the award after the grant agreement is executed. Such costs should go under the Administrative line item on the

SF-424C.

Contingency amounts, not to exceed 10 percent, may be included in the budget to the extent they are necessary to improve the precision of project estimates.

Pre-Award costs: There is no pre-award authority for any costs incurred before the effective date of the award (see 2 CFR § 200.458). However, the applicant should provide a thorough and concise explanation of the project elements (e.g., design services)

U.S. DOT/PHMSA Page 20 of 39 FY 2023 Natural Gas Distribution Infrastructure Safety and Modernization Grant Program and include the projected pre-award costs as part of their application/budget estimate.

Once provisional project selections are made, PHMSA may extend pre-award cost reimbursement authority for these provisionally selected projects for costs incurred after the project has been provisionally selected.

SF-424C only: Indirect Costs: If an applicant plans to charge indirect costs to this award, these costs should be included into the Administrative, Environmental, and Legal Expenses line item. The detailed budget justification template and the budget narrative should clearly explain how they are being applied/calculated. Additionally, if indirect costs are proposed, the applicant must also be sure to attach a copy of their most recent negotiated indirect cost rate agreement. If applicants will claim the 10 percent de minimis for indirect costs, please ensure that a statement is included in the application and that the modified total direct cost calculation is utilized.

D.3 Unique Entity Identifier (UEI) and System for Award Management

Each applicant is required to:

Register in SAM (SAM.gov) before submitting an application;

Provide a valid UEI in the application; and Continue to maintain an active SAM registration with current information at all times during which they have an active federal award or an application under consideration.

PHMSA may not make an award to an applicant until the applicant has complied with all applicable UEI and SAM requirements. If an applicant has not fully complied with the requirements by the time PHMSA is ready to make an award, PHMSA may determine that the applicant is not qualified to receive an award and use that determination as a basis for making an award to another applicant.

PHMSA recommends that applicants review the SAM database to ensure that their UEI number is updated and “active.” Link: https://sam.gov/content/home.

For issues with SAM.gov, applicants may call the Federal Service Desk at 866-606-8220 or create an incident ticket via https://www.fsd.gov/gsafsd_sp.

D.4 Submission Dates and Times

Applicants must submit complete application packages via Grants.gov no later than 5:00 p.m., PST, August 4, 2023.

Applicants are strongly encouraged to verify their access to Federal Grant Systems (Section D.6) early, to ensure any technical issues can be resolved, and to apply early to ensure all materials will be received before the deadline.

PHMSA verifies the dates and times of applications submitted via Grants.gov to determine timeliness of submissions. Applications received after the deadline will not be considered.

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D.5 Funding Restrictions

The following costs are not eligible for reimbursement under the FY 2023 NGDISM Grant Program:

1. Pre-award costs incurred prior to the effective date of the award to which PHMSA has not extended pre-award authority in writing.

2. Entertainment, alcohol, or morale costs.

3. Expenses claimed and/or reimbursed by another program.

4. Excessive costs for general office supplies, equipment, computer software, printing and copying.

5. Expenses that supplant existing operational funds.

6. Any costs disallowed or stated as ineligible in 2 CFR Part 200.

7. Restrictions on Use of Funds for Lobbying, Support of Litigation, or Direct Advocacy.

The recipient and its contractors may not conduct political lobbying, as defined in the statutes, regulations, and 2 CFR § 200.450 “Lobbying,” within the federally-supported project. The recipient and its contractors may not use federal funds for lobbying specifically to obtain grants and cooperative agreements. The recipient and its contractors must comply with 49 CFR Part 20, U.S. DOT “New Restrictions on Lobbying.” 49 CFR Part 20 is incorporated by reference into this award. Funds may not be used, directly or indirectly, to support or oppose union organizing.

D.6 Other Submission Requirements

Applications will only be accepted via Grants.gov using required username(s) and password(s) needed to access the Grants.gov website. There is no limitation on the number of applications that may be submitted by an eligible applicant. Each application must be complete and be able to stand on its own merits.

If an applicant requires accommodations, or has difficulties submitting their application(s) via Grants.gov and is unable to resolve their Grants.gov issue(s) via Grants.gov’s Online Help and/or Support Desk, that applicant should contact the NGDISM Grants Team prior to the deadline date via email at PHMSAPipelineBILGrant@dot.gov to request an alternative means to submit their application(s).

Electronic File/Attachments Format: All application/attachment file formats are to be Word, Excel, PowerPoint, Adobe, and/or picture/image (GIF, JPEG, PNG) formats. For any other file formats, PHMSA does not have the application/software to open/view these files and any information in other file formats will not be considered during the application review(s).

To begin the application process, applicants must be registered with Grants.gov to submit an application. See Grants.gov section below. Failure to comply with the prescribed application requirements may result in the failure of an application to be reviewed.

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Accessing Federal Grant Systems:

PHMSA acknowledges applicants may experience technical issues with federal grant systems’ sites, which are outside of PHMSA’s control. PHMSA recommends applicants utilize the sites’ respective help desks to resolve any technical issues well before the NOFO’s closing date. Although PHMSA will provide any assistance it can, all applicants are ultimately responsible for working directly with Grants.gov and/or SAM.gov to resolve technical issues.

1. Grants.gov. In order to apply for NGDISM grant funding under this announcement, all applicants are to be registered as an…