1. Improving the natural gas distribution system (a) Establishment of program Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall establish a program to award grants to States, in accordance with this section, for the purpose of improving public safety and environmental performance of the natural gas distribution system by offsetting rate increases to low-income households and providing incentives for natural gas distribution companies to accelerate, expand, or enhance improvements to the natural gas distribution system. (b) Grants to States (1) In general A State may apply for a grant under this section to provide funds to natural gas distribution companies in the State that are carrying out an eligible project described in subsection (c). (2) Requirements In applying for a grant under this section, a State shall demonstrate how the State rate-setting commission will ensure that funds provided under this section are used in accordance with the requirements of this section. (c) Eligible projects A project that is eligible to be funded through a grant to a State under this section is a project carried out by a natural gas distribution company to accelerate, expand, or enhance the implementation of a plan, approved by the State before the date on which an application for a grant under this section is submitted to the Secretary, for— (1) replacement of cast and wrought iron and bare steel pipes and other leak-prone components of the natural gas distribution system