PHMSA FY24 NGDISM Grant Program NOFO with Evaluation Plan.pdf

DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration (PHMSA)

Notice of Funding Opportunity for the Department of Transportation’s FY 2024 Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) Grant Program

AGENCY: Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation

ACTION: Notice of Funding Opportunity (NOFO)

SUMMARY:

SUMMARY OVERVIEW OF KEY INFORMATION

NATURAL GAS DISTRIBUTION INFRASTRUCTURE SAFETY

AND MODERNIZATION (NGDISM) GRANT PROGRAM

Issuing Agency

Pipeline and Hazardous Materials Safety Administration

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, seeking 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, promote economic growth, and benefit disadvantaged rural and urban communities with safe provision of natural gas.

Objective The objectives 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 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.

Eligible Applicants

The FY 2024 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, and/or any pipeline assets owned by a for-profit entity, are not eligible for NGDISM grant funding.

Eligible Project Types

Grant funds will be made available to eligible entities seeking assistance in repairing, rehabilitating, or replacing high-risk, actively leaking, or leak-prone natural gas distribution infrastructure.

Funds may also be used to acquire equipment that will assist in reducing natural gas distribution pipeline incidents and fatalities, as well as to avoid economic loss from leaks.

Funding PHMSA will make available up to $196 million utilizing FY 2025 funding for NGDISM grants under this NOFO.

Deadline Thursday, June 20, 2024, 11:59 p.m. PDT: Application Due.

NOFO 693JK324NF0013

U.S. DOT/PHMSA Page 1 of 40 FY 2024 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) 2024

NOFO Posted Date: Thursday, May 9, 2024 Applications Due Date: Thursday, June 20, 2024, 11:59 p.m. PDT Questions Due Date: Thursday, June 13, 2024, 11:59 p.m. PDT

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 40

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

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PROGRAM SUMMARY

Federal Agency Name: U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration

(PHMSA)

Funding Opportunity Title: Natural Gas Distribution Infrastructure Safety and

Modernization Grant Program - FY 2024

Announcement Type: Initial Announcement

Funding Opportunity Number: 693JK324NF0013

Assistance Listing Number: 20.708

NOFO Posted Date: Thursday, May 9, 2024 Application Due Date: Thursday, June 20, 2024, 11:59 p.m. PDT Question Due Date: Thursday, June 13, 2024, 11:59 p.m. PDT

U.S. DOT/PHMSA Page 4 of 40

Natural Gas Distribution Infrastructure Safety and Modernization Grant Program FY 2024 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 3.3 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 Program’s eligible entities are municipality- or community-owned utilities, not including for-profit entities, seeking 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.

The Department seeks to fund projects that advance the Departmental priorities of safety, equity, climate and sustainability, and workforce development, job quality, and wealth creation as described in the USDOT Strategic Plan, Research, Development and Technology Strategic Plan, and in executive orders.

Assistance Listing: 20.708

Complete application packages are due via Grants.gov no later than 11:59 p.m., EST, June 20, 2024. 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.

2 See Definitions section, Good-paying jobs.

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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 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 disadvantaged 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 year 2025 funding available under this FY 2024 NOFO for a total of $196 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 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.

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 $196 million utilizing FY 2025 funding for NGDISM grants under this NOFO. Any selections and awards under this NOFO are subject to the availability of appropriated NGDISM funds.

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

U.S. DOT/PHMSA Page 6 of 40 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 expenditures are allowable, allocable, reasonable, and necessary to the approved project(s) before requesting reimbursement.

B.4 Availability of Funds

The IIJA makes FY 2025 NGDISM 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.3

SECTION C – ELIGIBILITY INFORMATION

C.1 Eligible Applicants

The FY 2024 NGDISM Grant Program NOFO 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

3 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. See 2 C.F.R. 200.458 for more information.

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For-profit entities, and/or any pipeline assets owned by a for-profit entity, 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.

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 (via postal mail, FedEx, or e-mail), please contact:

NGDISM Grant Team

E23-301 (PHP-3)

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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 2024 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.

There are two sections:

1. Standard Forms that an applicant downloads and completes from Grants.gov under the FY 2024 NGDISM Grant Program funding opportunity; and,

2. Attachments the applicants create and upload per the NOFO requirements.

Standard Forms

The following forms are found on Grants.gov under the FY 2024 NGDISM Grant Program funding opportunity and must be completed by the applicant and must be included as part of the application. The Authorized Representative (AR) named on the SF-424 must sign all forms.

Please note, a required form(s) identified below may be listed in grants.gov, in the Package tab, as an optional form; or listed in grants.gov in the Related Documents tab. Applications need to submit the completed required forms as listed in this section, regardless of where forms/documents are located in grants.gov.

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

a. Mandatory: Two points of contact are required. Person named/contact information in Section 8f must not be the same person named as the Authorized Representative (AR) in Section 21.

b. The AR must sign the 424. The AR must have the legal authority to sign documents for their entity, to give assurances, make commitments, enter into contracts, and/or execute such documents on behalf of the applicant/entity. The signature of the AR certifies that commitments made on grant proposals/applications will be honored and ensures that the applicant agrees to conform to the Federal grant 2 CFR 200 regulations.

AND EITHER:

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Equipment Only without pipeline infrastructure improvements:

SF-424A - Budget Information - Non-Construction Programs SF-424B - Assurances - Non-Construction Programs (AR named on the SF-424 must sign)

OR

Construction/pipeline infrastructure improvements with/without equipment:

SF-424C - Budget Information - Construction Programs SF-424D - Assurances - Construction Programs (AR named on the SF-424 must sign the

424D)

AND

2. Budget Narrative Attachment Form

3. Project Narrative Attachment Form

4. Grants.gov Lobbying Form; and Disclosure of Lobbying Activities form (SF-LLL), if applicable. The AR named on the SF-424 must be named on and sign the Lobbying forms.

5. USDOT Standard Title VI/Non-Discrimination Assurances

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

b. The AR named on the SF-424 must sign the Title VI/Non-Discrimination

Assurances form.

Attachments

The following applicant attachments are created by the applicant and uploaded to Grants.gov under the FY 2024 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 Distribution Integrity Management Plan (DIMP) that supports your application.

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

PHMSA F 7100).

6. Additional optional attachments (if applicable).

Electronic Format: All application/attachment files 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).

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Sharing of Application Information: 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.

Note: Adhere to the information in this NOFO for your application package.

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,” “Budget Narrative”) 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

(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

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2. Authorized Representative(s) (AR) who will accept the awarded grant document(s). The AR must have the legal authority to sign documents for their entity, give assurances, make commitments, enter into contracts, and/or execute such documents on behalf of the applicant/entity. The signature of the AR certifies that commitments made on grant proposals will be honored and ensures that the applicant agrees to conform to the grant’s regulations, guidelines, and policies.

2. Applicant Eligibility and Statement of Authority and Pipeline Infrastructure Safety and Modernization Capabilities. A short 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: One project summary per project. The project summary should be no longer than 2-3 sentences. The project summary provides 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.

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 ranked numerically by priority. Alphabetical order or other sequential orders will not be accepted. Please ensure all pipe lengths are described in miles.

The proposed project should include reasonable boundaries of pipeline that can be replaced within the period of performance. Repairing, replacing, and/or rehabilitating pipeline of a similar material and/or in the same general area is considered a single project.

Applicants are encouraged to use the table provided below. Please ensure Project Prioritization numbering and budget totals are consistent throughout the application documents.

The values in the project prioritization table must be fully justified and explained in the Projected Outputs and Objectives section of the project narrative.

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Project Prioritization Table Priority Number

Project Type (construction, equipment-only, or other

- please describe)

Project Name

Existing Pipe Material (if applicable)

Miles Replaced

Infrastructure Age (if applicable)

Estimated Reduction in Annual Methane Emissions (kg/year)4

Estimated number of jobs (if applicable)

Total Project Cost (all costs must equal the federal funding requested in the

SF-424)

1 Construction Southeast Cast-Iron Replacement Project

Cast-iron 9.0 1920s 25,637 100 $9,500,000

2 Equipment Leak Detection Equipment

N/A 0.0 1920s 7,121 40 $100,000

3 Other – Regulator Station

Regulator Replacement Project

Bare steel 0.0 1970s 0.0 N/A $850,000

Total $10,450,000.00

SF-424

Federal Funding Requested

$10,450,000.00

4 See table of average methane emissions factors (kg/mile activity) for natural gas pipelines in 5. Projected Outputs and Objectives.

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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 community, including in a rural or urban area.5

Applicants should use the Climate and Economic Justice Screening Tool (CEJST)6 to identify disadvantaged communities as the primary tool.

Applicants are strongly encouraged to also use the DOT Equitable Transportation Community (ETC) Tool7 to understand how their community or project area is experiencing disadvantage related to lack of transportation investments or opportunities and are encouraged to use this information in their application to demonstrate how their project will reduce, reverse or mitigate the burdens of disadvantage.

Applicants are encouraged to provide an image of the map tool outputs. For sensitive map data, please mark the document/images as confidential.

Please note that any project on Tribal land must include a letter expressing Tribal support for the project.

Project Schedule:

Please include the current 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 and other applicable legal requirements, or a statement that real property, right(s)-of-way acquisition, utility easements, and/or applicable legal requirements are not needed;

5 See Definitions section, Disadvantaged Community.

6 M-23-09 states that Federal agencies should use the CEJST to identify geographically defined disadvantaged communities for any covered programs under the Justice40 Initiative and for programs where a statute directs resources to disadvantaged communities, to the maximum extent possible and permitted by law. This includes Federally Recognized Tribes, regardless of whether they have land. Applicants should use the CEJST as the primary tool to identify disadvantaged communities. See https://screeningtool.geoplatform.gov/.

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

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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 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).

Project Eligibility:

Examples of eligible grant project expenses may include the following:

Construction costs including equipment and 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 reducing incidents and fatalities, and avoiding economic losses.

Equipment purchases to improve an operator’s leak detection capabilities, 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 include the following:

Projects involving transmission lines, including proposals to lower a transmission line to meet the existing code requirements. See 49 CFR 192.3 Definitions for the definition of a Transmission Line.

Projects that will require a PHMSA special permit and/or approval via PHMSA waiver.

Extending gas services to areas previously not served.

Electrification.

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

Propane community gas systems.

Peak shaving liquefied natural gas facilities.

4. Detailed Project Description that includes:

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Each project must be mentioned in and supported by the most recent distribution integrity management plan (DIMP) assessment. The supporting DIMP assessment must be no older than two years from the date of the NGDISM application. The scope, schedule, location, and budget (including total cost per mile of mains replaced and total cost per service replaced.) 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., Horizontal Directional Drill (HDD), cut and cover, insertion, etc.).

Describe any relocations, abandonments, and upsizing.

Sufficient documentation to support the project: such as engineering drawings preliminary project planning or design including site design; maps; site photos, materials lists, cost estimates received an aerial photograph of the site depicting the proposed location; anticipated 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.

A Safety Risk Profile for each proposed project describing the condition of the current infrastructure in the project area for which funding is being requested. The project Safety Risk Profile should cite relevant data including identified threats, leak statistics, and risk analysis that are present in the operator’s DIMP. The Safety Risk Profile should state how the project will mitigate the identified and list the safety benefits the project will bring to the community. All threats, leak statistics and risk analyses should be supported by and consistent with the DIMP and Gas Distribution Annual Report

(GDAR).

Identify any potentially immediate danger that the existing infrastructure poses that may result in fatalities, injuries, or environmental hazards.

Plan for creating good-paying jobs8 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.

5. Projected Outputs and Objectives. Provide quantifiable and measurable outputs planned for the grant’s period of performance. Outputs are quantitative data that describe

8 See Definitions, Good-paying jobs.

U.S. DOT/PHMSA Page 16 of 40 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.

Applicants may use the following table to approximate the methane leak rate based on pipeline material that will be replaced by the program. The table is based on Average Methane Emissions Factors (kg/mile activity) for Natural Gas Pipelines. It is adapted from Table 1 EPA GHG Inventory – Annex 3.6, Table 3.6-2.

Pipeline Material Type Average Rate (kg/mile/year) Cast Iron 2,877.35 Unprotected Steel 1,491.80 Protected Steel 77.90 Plastic (installation date unknown) 109.85 Plastic (installation prior to 1990) 190.90 New polyethylene (PE) plastic pipe 28.80

The sample applicant’s project prioritization table above lists the first priority as the southeast cast iron replacement project, which will replace 9.0 miles of cast iron pipe.

The average rate of methane emissions per year for cast iron pipe is 2,877.35 kg/mile/year. The sample applicant multiples that amount by 9 miles. The product is 25,896.15 kg/year.

The applicant will replace the cast iron pipe with polyethylene (PE) plastic pipe. The average rate of methane emissions per year for polyethylene (PE) plastic pipe is 28.80 kg/mile/year. The sample applicant multiples that amount by 9 miles. The product is

259.20 kg/year.

The sample applicant finds the difference by subtracting 259.20 kg/year from 25,896.15 kg/year. The difference is 25,636.95 kg/year. The sample applicant reports the difference in the project prioritization table for the southeast cast iron replacement project in the estimated reduction in annual methane emissions column. Rounding to the nearest whole number is acceptable.

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Applicants should use the Climate and Economic Justice Screening Tool (CEJST)9 as the primary tool to identify disadvantaged communities.

Applicants are strongly encouraged to also use the USDOT Equitable Transportation Community (ETC) Explorer10 to understand how their community or project area is experiencing disadvantage related to lack of transportation investments or opportunities and are encouraged to use this information in their application to demonstrate how their project will reduce, reverse or mitigate the burdens of disadvantage.

6. 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.

7. 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;

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.

8. 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.

9 See https://screeningtool.geoplatform.gov/.

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

U.S. DOT/PHMSA Page 18 of 40

Grant Funds, Sources and Uses of Project Funds - Project budgets should show how different funding sources will share in each activity and present the data in dollars and percentages. The budget should identify other Federal funds the applicant is applying for, has been awarded, or intends to use. Funding sources should be grouped into three categories: non-federal, NGDISM Grant Program, and other Federal with specific amounts for 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.

SF-424A Equipment only with no construction

For more details, see category instructions/guidance on Grants.gov, Forms tab, 424-family.

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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 is tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost that equals or exceeds $5,000.

Supplies Yes, if applicable.

Equipment purchases of less than $5,000 per unit would 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 NGDISM equipment only applications. Use the SF-424C.

Other

Yes, if applicable.

Equipment purchases of less than $5,000 per unit would 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 and should be included in the project’s budget. 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 whether 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).

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• 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. Equipment is tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost that equals or exceeds $5,000.

Miscellaneous If applicable. Equipment purchases of less than $5,000 per unit would be listed as Miscellaneous.

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, restoration 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

U.S. DOT/PHMSA Page 21 of 40 agreement is executed. Such costs should go under the Administrative line item on the

SF-424C.

SF-424C only: 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 announcement However, the applicant should provide a thorough and concise explanation of the project elements (e.g., design services) 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: In general, indirect costs are not applicable to most construction grant projects. If an applicant plans to charge the de minimis indirect cost rate, the Modified Total Direct Cost (MTDC) calculation must be used. The MTDC calculation excludes capital expenditures and equipment costs. The detailed budget justification template and the budget narrative should clearly explain how indirect costs are being applied/calculated. If applicants will claim the 10 percent de minimis rate for indirect costs, please ensure that a statement is included in the application and that the MTDC calculation is utilized. If claiming a higher indirect cost rate, the applicant must attach a copy of their most recent negotiated indirect cost rate agreement. See 2 CFR

200.1 for more information: https://www.ecfr.gov/current/title-2/subtitle-A/chapter- II/part-200#p-200.1(Modified%20Total%20Direct%20Cost%20(MTDC)).

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.

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D.4 Submission Dates and Times

Applicants must submit complete application packages via Grants.gov no later than 11:59 p.m., PDT, June 20, 2024.

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.

D.5 Funding Restrictions

The following costs are not eligible for reimbursement under the FY 2024 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.