Pipeline Safety Program State Base Grant

To develop, support and maintain inspection and enforcement activities for State gas and hazardous liquid pipeline safety programs.

The activities covered are those specifically for the inspection of natural gas or hazardous liquid pipeline facilities to ensure compliance and enforcement as necessary of applicable chapters of Title 49 of the U. S. Code of Federal Regulations (CFR). The states inspect approximately 90% of the pipeline infrastructure under federal safety authority.

State Agency. State must have a 60105 Certification or 60106 Agreement with PHMSA. The Department provides Federal funds (limited to congressional appropriations), up to 80 percent of the State's total program costs to any State agency with a certificate under Section 60105 of Title 49, United States Code, an agreement under Section 60106 of Title 49, United States Code, or to any State acting as a DOT agent on interstate pipelines.

State, District of Columbia, and Puerto Rico.

The Federal Pipeline Safety Law authorizes Federal reimbursement of up to 80 percent of a State's expenditure during the year for personnel, equipment, and activities reasonably required by the State agency for the conduct of its pipeline safety program. The Law further stipulates the State agency must also agree to provide the remaining cost of the safety program(s). Within these limitations, the available funds are allocated by a method designed to reflect the degree to which a State has met certain established goals. The allocation is determined by assigning point values to the States for having achieved certain levels of program participation, dividing this point score by the sum of the States' point scores, and multiplying this ratio by the funding amount available for the distribution. PHMSA distributes remaining funds according to certain criteria designed to seek improvements in State programs. The criteria used by PHMSA is the extent of intrastate jurisdiction, inspector qualifications, recommended number of inspection person-days, State adoption of applicable Federal regulations, and other relevant criteria. In 2024, the Federal allocations represented 61.06 percent of the total estimated State requests in the natural gas program. The Federal allocation in the hazardous liquid program represented 61.53 percent of the total estimated State requests.

The Federal Pipeline Safety Law authorizes Federal reimbursement of up to 80 percent of a State's expenditure during the year for personnel, equipment, and activities reasonably required by the State agency for the conduct of its pipeline safety program. The Law further stipulates the State agency must also agree to provide the remaining cost of the safety program(s). Within these limitations, the available funds are allocated by a method designed to reflect the degree to which a State has met certain established goals. The allocation is determined by assigning point values to the States for having achieved certain levels of program participation, dividing this point score by the sum of the States' point scores, and multiplying this ratio by the funding amount available for the distribution. PHMSA distributes remaining funds according to certain criteria designed to seek improvements in State programs. The criteria used by PHMSA is the extent of intrastate jurisdiction, inspector qualifications, recommended number of inspection person-days, State adoption of applicable Federal regulations, and other relevant criteria. In 2024, the Federal allocations represented 61.06 percent of the total estimated State requests in the natural gas program. The Federal allocation in the hazardous liquid program represented 61.53 percent of the total estimated State requests.

Expenditures made by a State during the calendar year are eligible for Federal reimbursement. States receiving Federal assistance submit claims for reimbursement in February for the Federal share of the cost of actual expenditures between January 1 and December 31 of the year.

An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

All necessary, reasonable and allowable expenses from Certified State pipeline safety regulatory agencies are considered for funding to the limit of available grant funding. Indirect cost reimbursement is limited to 25% of the actual total direct program costs per the Guidelines for States Participating in the Pipeline Safety Program. This is a formula grant and funding is distributed among Certified State Pipeline Safety Programs based on their performance scores. Pipeline Safety Grants are awarded based on the following formula: Grant Award = State Budget Amount*State Performance Score*Percent Allocation Where Percent Allocation(80%Maximum)_= Total Available Funding/Sum of All Programs (State Score*State Budget) State Budget Amount = Calendar Year Budget Estimate Submitted by each State with Grant Application Annual State Performance Score Outlined in Section 9.7.2 Percent Allocation - This is the maximum percentage of total program costs that can be applied to each grantee. There is an 80% maximum funding limited required by Section 60107 of the Pipeline Safety Act. This formula provides for an equal distribution of available funds in the event appropriated funding is less than required for maximum funding. Total Available Funding - This is the annual funding provided by congressional appropriation. This would also include any unexpended (carryover) funds available from previous fiscal years. The combined sum of each State Performance Score multiplied by each State Budget Estimate for all Natural Gas and Hazardous Liquid programs.

Awards are made by the Secretary of Transportation by approving the grant award amounts. PHMSA makes the grant application available to each state agency in August of each year. The deadline for filing this application is September 30th. (Note: This deadline is established in 49 USC 60107). Grant applications are submitted on-line through the Federal State Tracking and Reporting "FedSTAR") web application. Grant applications are reviewed by PHMSA State Program staff to assure the costs submitted are necessary and reasonable expenses for the proper and efficient administration of the pipeline safety program. The appropriated grant funding, contingent on an enacted budget, is allocated (awarded) to individual State Pipeline Safety Programs in May based on each State's most recent Program Evaluation and Progress Report scores and the grant allocation formula. Agreements are sent to the individual state agencies notifying them of the amount of the State Base Grant available to them to pay the individual state's cost for the calendar year. States may request reimbursement of their program costs based on actual expenses "to date" in June (Mid-year Payment). In January of each year, PHMSA makes available to each State agency for submission of their total pipeline safety program costs for the previous calendar year. Requests for reimbursement (End of Year Payments) submitted by each State agency are reviewed and approved by PHMSA before being forwarded to the DOT accounting office for payment. Grant funds will be electronically deposited into a bank account established for receipt of Federal funds.

Applications are due by September 30 for the next calendar year

From 60 to 90 days from date of receipt.