FY 2026 NGDISM Grant Program NOFO FAQs v1.pdf
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- Opportunity number
- 693JK326NF0013
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This document is a Frequently Asked Questions (FAQs) guide for the FY 2026 NGDISM (Natural Gas Distribution Infrastructure Safety and Modernization) Grant program, issued by PHMSA (Pipeline and Hazardous Materials Safety Administration) under Funding Opportunity Number 693JK326NF0013, last updated April 24, 2026. The grant does not require matching funds. Questions should be directed to PHMSAPipelineBILGrant@dot.gov, with responses posted on Grants.gov. Links to previous grant recipients from FY 2024, 2023, and 2022 are provided for reference.
The FAQs address eligibility requirements and allowable expenses. Grant funds support repair, rehabilitation, or replacement of existing pipeline distribution infrastructure; new pipeline installations or extensions to serve new customers are ineligible. Specific equipment such as HMI software upgrades, emergency backup generators at LNG facilities, and gate station meters are not eligible. Buy America requirements apply to items affixed to infrastructure, including odorant injection systems. Applicants need not submit preliminary engineering reports before applying and should defer procurement activities until a grant agreement is executed. Allowable costs include internal labor, administrative activities per 2 CFR Part 200 Subpart E, and restoration costs for necessary road or sidewalk repairs, though full right-of-way improvements are excluded. An indirect cost rate agreement is optional. Reimbursement requests may be submitted as needed without a set schedule, and cost estimates have no expiration date.
FY 2026 NGDISM Grant Program NOFO FAQs v1
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FY 2026 NGDISM Grant NOFO Funding Opportunity Number 693JK326NF0013 Frequently Asked Questions (FAQs) Last Updated: April 24, 2026
Questions regarding the FY 2026 NGDISM Grant NOFO should be sent via email to PHMSAPipelineBILGrant@dot.gov. PHMSA will post responses to Grants.gov.
Number Question Answer
1 Can you give me more information on the grant, please? Is this a match type of grant?
No, this grant does not require match. For more information on the grant, please visit https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/natural-gas-distribution-infrastructure-safety-and-modernization-grants.
2 Is it possible to review grant docs from previously successful recipients? If so pls provide details.
Here are the links to past NGDISM Grant awardees:
FY 2024 grant recipients:
https://www.phmsa.dot.gov/news/phmsa-fy2024-natural-gas-distribution-infrastructure-safety-and-modernization-grants
FY 2023 grant recipients:
https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/phmsa-fy-2023-natural-gas-distribution-infrastructure-safety-and-modernization-grant-awards
FY 2022 grant recipients:
https://www.phmsa.dot.gov/about-phmsa/working-phmsa/natural-gas-distribution-infrastructure-safety-and-modernization-grants mailto:PHMSAPipelineBILGrant@dot.gov https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/news/phmsa-fy2024-natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/news/phmsa-fy2024-natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/news/phmsa-fy2024-natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/news/phmsa-fy2024-natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/phmsa-fy-2023-natural-gas-distribution-infrastructure-safety-and-modernization-grant-awards https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/phmsa-fy-2023-natural-gas-distribution-infrastructure-safety-and-modernization-grant-awards https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/phmsa-fy-2023-natural-gas-distribution-infrastructure-safety-and-modernization-grant-awards https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/phmsa-fy-2023-natural-gas-distribution-infrastructure-safety-and-modernization-grant-awards https://www.phmsa.dot.gov/about-phmsa/working-phmsa/grants/pipeline/phmsa-fy-2023-natural-gas-distribution-infrastructure-safety-and-modernization-grant-awards https://www.phmsa.dot.gov/about-phmsa/working-phmsa/natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/about-phmsa/working-phmsa/natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/about-phmsa/working-phmsa/natural-gas-distribution-infrastructure-safety-and-modernization-grants https://www.phmsa.dot.gov/about-phmsa/working-phmsa/natural-gas-distribution-infrastructure-safety-and-modernization-grants
Number Question Answer 3 Are the following items qualified as eligible equipment under the program?
1. HMI software (AVEVA) upgrades for the system that monitors and controls boilers, vaporizers, temperatures, and valves at LNG storage and vaporization facilities, ensuring a continuous supply to the distribution regulators.
2. Emergency backup generators sized to maintain critical operations at LNG storage and vaporization facilities during grid power loss events, which is based on LNG supply reliance, would result in loss of distribution pressure and gas supply to customers.
No, these items are not eligible for the NGDISM grant program.
4 We are trying to do a gas line extension to help improve our gas line system I was just wondering/wanting to know if we would qualify for this grant.
Grant funds support efforts to repair, rehabilitate, or replace existing pipeline distribution infrastructure. Installing or extending new natural gas capabilities is not an eligible use of funds. For example, a project that proposes to install or extend new pipe for the purposes of providing services to new customers is not eligible.
5 We want to confirm that BABAA compliance pertains to the purchase of odorant injection systems (mobile and fixed)? There appears to be one main manufacturer of these units that is based in the US.
If the item is affixed to infrastructure, then it is subject to Buy America requirements.
6 Would gate station meters fall within the programmatic waiver for meters for the NGDISM grants?
No, the gate station meter is not included in the BABA programmatic waiver.
Number Question Answer 7 Do we need to submit a preliminary engineering report with the application? If so, is there a requirement for us to go through the procurement process first?
No, applicants are not required to submit a preliminary engineering report with the application. PHMSA advises prospective applicants to wait to initiate procurement activities until a grant agreement is signed with the agency.
8 What administration activities are eligible for reimbursement?
Allowable administrative activities are defined at 2 CFR Part 200 Subpart E.
9 Are internal labor costs allowed? Yes, internal labor costs are allowed.
10 If repairs to the road and/or sidewalk are necessary due to the pipeline replacement project, are those eligible as construction related costs?
Yes, restoration costs are allowed.
Improvement or rehabilitation for the entire right-of-way is not allowed.
11 Is there an expiration date on previous cost estimates (as in no more than 12-months, etc.)?
No, there is no expiration date on previous cost estimates. PHMSA advises prospective applicants to forecast cost increases.
12 For a replacement construction project, is an indirect cost rate agreement needed?
An indirect cost rate agreement is optional. A prospective applicant does not need an indirect cost rate agreement to be selected for award. A prospective applicant may elect the de minimis indirect cost rate. However, this is not required to be selected for award.
13 If awarded, is there a recommended schedule for reimbursement or is it as needed?
Grant recipients may request reimbursement as needed. PHMSA does not have a set schedule for reimbursement.
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