Texas public power utility CPS Energy on April 19 announced that it is the recipient of a $2.45 million grant aimed at replacing aging local gas infrastructure from the Department of Transportation and the Pipeline and Hazardous Materials Safety Administration.
Under the PHMSA umbrella is the first ever Natural Gas Distribution Infrastructure Safety and Modernization grant program. Funding under this program exclusively helps municipally owned local distribution gas utilities upgrade or replace portions of their pipeline systems.
In 2023, CPS Energy applied for funding to replace over five miles of steel gas pipeline in the western portion of the city.
The Infrastructure Investment and Jobs Act was passed by Congress in November 2021, providing commitment for the most significant investment in the country’s infrastructure in more than 50 years.
The NGDISM plans to award up to $200 million for each fiscal year from 2022-2026.
Objectives from this grant include:
- Improve safety of natural gas systems
- Protect environment and reduce climate impacts
- Benefit underserved and/or disadvantaged communities
- Provide economic impact and growth
- Create and sustain good-paying infrastructure-related jobs
Infrastructure that will be replaced as part of this grant is located on the west side of town in a community with 50% of households in that community having incomes below 60% of the area’s median incomes, or poverty rates of 25% or more.
The infrastructure being replaced is part of CPS Energy’s efforts to modernize gas infrastructure in need of upgrades. The project will improve safety, performance and reliability of the utility’s gas system and is expected to be completed by the ends of this year, the utility said.
