S. 2713: American Energy Security Act of 2025

The American Energy Security Act of 2025 proposes to enhance the safety and modernization of natural gas distribution pipelines in the United States. Here are the main elements of the bill:

Grants for Pipeline Safety and Modernization

The bill authorizes the Secretary of Transportation to provide grants aimed at assisting publicly owned natural gas distribution pipeline systems. The goals of these grants include:

• Reducing unintentional leaks from pipelines.
• Minimizing incidents and fatalities related to safety issues in pipeline facilities.
• Supporting the safe transport of alternative energy sources.

Eligible Recipients

Grants may be awarded to utilities that are:

• Owned by a community.
• Owned by a municipality.

Application Process

Entities looking to receive a grant must submit an application to the Secretary, detailing the projects and activities they wish to fund with the grant money.

Uses of Grant Funds

The funds received through these grants can be used for various purposes, including:

• Repairing, rehabilitating, or replacing natural gas distribution pipeline systems.
• Acquiring necessary equipment for the pipelines.

Considerations for Grant Awarding

When awarding grants, the Secretary must consider:

• The risk profile of the applicant's existing pipeline system, particularly the potential for leakage.
• The job creation potential and benefits to disadvantaged communities from the proposed projects.
• The expected economic impact or growth resulting from the projects funded by the grants.

Limitations on Funding

The bill sets limits on grant distribution, stating that:

• No single utility can receive more than 12.5% of the total funds available for grants.
• No more than 2% of the appropriated amounts can be used for administrative expenses by the Secretary.

Congressional Oversight

Before the Secretary announces the selection of projects for grants, they must notify specific congressional committees about the applications and grants awarded.

Compliance Requirements

Projects funded by the grants must adhere to civil rights and environmental protection laws, ensuring compliance with the:

• Civil Rights Act of 1964.
• National Environmental Policy Act of 1969.

Funding Authorization

The bill proposes to authorize $200 million for each fiscal year from 2026 to 2029 for the purpose of carrying out these grants. These funds are to come from general revenue and not from user fees.

Relevant Companies

• NGG - National Grid plc: A utility company that might seek grants for pipeline modernization projects.
• OKE - ONEOK, Inc.: This company could be eligible for grants aimed at reducing gas leaks and increasing safety.
• SRE - Sempra Energy: Could benefit from grant funding for projects related to alternative energy transportation.