SAN ANTONIO – CPS Energy received a $2.45 million grant from the Department of Transportation to upgrade or replace its aging gas infrastructure.
The infrastructure set to be replaced is located in a low-income community on the West Side, a CPS Energy news release said. The project, which will improve safety and performance measures, is expected to conclude by the end of the year.
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The utility applied for funding in 2023 to assist with replacing over five miles of steel gas pipeline in the affected community, the release said.
“We are committed to upgrading infrastructure for our community which will help us continue to serve them with the reliable and safe service they expect from CPS Energy,” said Rudy D. Garza, president & CEO of CPS Energy.
The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration agency administered the grant through the Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM), a first-of-its-kind program, the release said.
Grants from the program came by way of Congress passing the Infrastructure Investment and Jobs Act in November 2021.
The NGDISM plans to award up to $200 million from the grant for each fiscal year from 2022 to 2026.
The grant objectives are:
- 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