American Energy Security Act of 2025
The American Energy Security Act of 2025 would authorize the Secretary of Transportation to provide grants to publicly owned natural gas distribution systems (utilities owned by a community or municipality) to improve safety and modernization of their pipelines. Grants can be used to repair, rehabilitate, or replace distribution pipelines or to acquire equipment, with the goal of reducing unintentional leaks, decreasing pipeline-related incidents and fatalities, and enabling safe transportation of alternative energy sources. The program is funded at $200 million per fiscal year from 2026 through 2029, with funds coming from general revenues (not user fees). The bill sets limits on awards (no single eligible entity can receive more than 12.5% of the total) and on administrative costs (no more than 2% of the annual appropriation). Projects must comply with civil rights laws (Title VI of the Civil Rights Act) and the National Environmental Policy Act. Eligible entities are utilities owned by a community or municipality, and applicants must submit a detailed plan for funded projects. The bill also requires a near-term Congressional notification describing reviewed applications and funded projects before final selection.
Key Points
- 1Establishes a new program (Sec. 60144) to provide grants to publicly owned natural gas distribution systems for safety and modernization, focusing on reducing leaks, improving safety, and enabling use of alternative energy transport.
- 2Eligible recipients are utilities owned by a community or municipality; applicants must submit project descriptions and funding plans for review.
- 3Allowed uses include repairing, rehabilitating, or replacing distribution pipelines and acquiring equipment.
- 4Funding and oversight: $200 million per fiscal year (2026-2029), from general revenues (not user fees); awards capped at 12.5% to any single entity; administrative costs limited to 2% of the appropriation; projects must meet civil rights and NEPA requirements.
- 5Administrative/process features: Secretary must provide a pre-selection notification to Congress (3 days before project selections are published) with a list of reviewed applications and descriptions of funded projects; establishes criteria emphasizing risk profile, job creation, benefits to disadvantaged communities, and broader economic impact.