PGW Awarded Final Installment of $125 Million Federal Grant for Infrastructure Safety
Posted on:Oct 22, 2024Funding from the Bipartisan Infrastructure Law aids in accelerating PGW’s Main Replacement Program to significantly reduce methane emissions, improve safety, lower costs, and enhance service reliability.
(PHILADELPHIA- OCTOBER 22, 2024) Today, Philadelphia Gas Works (PGW) announced it has been provisionally awarded a $40 million Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant from the U.S. Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA), established by President Biden’s historic Bipartisan Infrastructure Law.
[L to R: PFMC Board Member Natalia Dominguez Buckley, Congresswoman Madeleine Dean (D-PA), City Councilmember Anthony Phillips, City Controller Christy Brady, PHMSA Deputy Administrator Tristan Brown, PGW President & CEO Seth Shapiro, White House National Climate Advisor Ali Zaidi, Philadelphia Building and Construction Trades Business Manager Ryan Boyer, City Council President Kenyatta Johnson.]
This grant, combined with two other awards from PHMSA since 2022, will fund a $125M infrastructure plan in historically disadvantaged Philadelphia neighborhoods. The project will result in the replacement of 66 miles of cast iron main, the creation of 120 new skilled jobs and reduce 412 metric tons of methane emissions.
“For the first time, thanks to the Bipartisan Infrastructure Law, we are empowering communities to expedite these critical safety improvements while helping families save money on their energy bills,” said PHMSA Deputy Administrator Tristan Brown, who announced the grant for PGW this morning at PGW’s North Operations Center.. “On average, businesses, families, and everyday Americans can expect to save hundreds of dollars on their energy bills thanks to these necessary safety improvements funded through this new grant.”
The funding will be used toward PGW’s Main Replacement Program, which directly supports the delivery of safe, reliable energy and advances PGW’s methane reduction program efforts. Replacing aging cast iron pipes with upgraded material that does not rust or corrode and that eliminates methane escape will help PGW meet its 2050 goal of reducing methane emissions by 80 percent. PGW expects to complete its cast iron replacement project by 2058.
“We are extremely grateful to PHMSA for its commitment to improving natural gas safety and service for Philadelphia residents,” said Seth Shapiro, PGW President and Chief Executive Officer. “This PHMSA grant will further support our installation of new natural gas pipelines that make operations safer for our communities and our employees and contribute to the climate goals of PGW and the city,” he said. “This award also delivers real bill savings to PGW customers by reducing the financial costs related to upgrading existing pipelines and performing ongoing maintenance costs of aging infrastructure.”
The PHMSA NGDISM grant program helps improve public safety, protect public health, and reduce methane emissions from natural gas distribution pipes. The grant provides nearly $1 billion in funding over five years to modernize municipal and community-owned natural gas distribution systems, like PGW, helping to keep communities across the country safe from pipeline leaks.
You can find more information on the NGDISM grant program here and to learn more about PGW’s pipeline improvements, visit pgworks.com/pipeline-map.
PGW ambitiously challenges the norms of energy production and delivery in Philadelphia as an influential force in the city’s clean energy future. Accelerating its main replacement program is one among many initiatives PGW is pursuing to build a cleaner and greener Philadelphia for generations to come. Recently, PGW:
- Completed construction of its new, state-of-the-art North Operations Center in 2023, which houses PGW field operations, training facilities, and fleet services. Eight PGW buildings were consolidated into the North Operations Center, reducing PGW’s carbon emissions from those retiring facilities by 50%. The consolidation will save PGW $100 million over 5 years.
- Hosted the first ever Energy Innovation Symposium at Temple University featuring three panels of local and national energy experts to explore: The Future Hydrogen Economy; Low-Carbon Energy Technologies; and Our Clean Energy Future.
- Launched PGW’s Energy Innovation Lab, a two-year incubator program launched in 2021 with a mission to help support young businesses that have the potential to bring innovation to the energy industry and increase energy efficiency and affordability. Sponsored by PGW in conjunction with Temple University’s Small Business Development Center, this program will provide small businesses with the necessary services and financial and technical support to initiate change.
- Serves as a leading member of the Mid-Atlantic Clean Hydrogen Hub (MACH2) team along with the City of Philadelphia and other partners, leveraging the wealth of existing technology and infrastructure in the region to generate clean energy.
- Established the PGW Marketplace, where customers can receive significant discounts on smart thermostats that regulate energy usage and help lower monthly energy bills.
- Began a pilot composting program at its corporate headquarters. Since its implementation in 2022, PGW has diverted nearly 3,000 pounds of food waste from landfills.
These and future programs are designed to support PGW’s long-standing and evolving commitment to sustainability. PGW is focused on upgrading its infrastructure, installing new, emission-reducing equipment, helping customers reduce energy usage, and seeking new opportunities for energy innovation and greenhouse gas emission reductions.
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