If by “federal methodology” you are referring to the way that the FAFSA EFC calculation is done, the answer is yes. The following is from the FAFSA instructions:
Money received, or paid on your behalf, also includes distributions to you (the student beneficiary) from a 529 plan that is owned by someone other than you or your parents (such as your grandparents, aunts, uncles, and non-custodial parents). You must include these distribution amounts in question 45j.
(emphasis added)