PHMSA Pipeline Safety Underground Natural Gas Storage Grant

Participating state entities, through annual Certification/Agreements with PHMSA, will inspect and enforce the federal underground storage regulations for intrastate underground natural gas storage facilities located within the state.

The UNGS Grant is a Formula Grant that provides funding to state UNGS safety programs under the authority of 49 U.S.C. § 60107. The statute authorizes PHMSA to reimburse up to, but not more than, 80 percent of the total cost of personnel, equipment, and activities reasonably required by the state agency to conduct its UNGS safety program during a given calendar year.

State must have a 60105 Certification or 60106 Agreement with PHMSA. The Department provides Federal funds, 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 (Includes District of Columbia and Puerto Rico) Also, State agency with a Certification or Agreement under 60105 or 60106 of Title 49 USC.

Appropriate State legal official must approve legality of agency application and agreement. Costs will be determined in accordance with 2 CFR 200. Application (plan) is opened in early August and due September 30.

To participate, state law must provide the state entity with the authority to establish and enforce regulations over the downhole portion of intrastate storage facilities. Participating state entities, through annual Certification/Agreements with PHMSA, will inspect and enforce the federal underground storage regulations for intrastate underground natural gas storage facilities located within the state. PHMSA will support participating state entities with grant funding paying a portion of their inspection and enforcement program costs based on the available federal funding for the program.

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

Each State submits with its annual application a summary of estimated program costs by calendar year covering the State gas and/or hazardous liquid pipeline safety activities to PHMSA. The State certifies it is complying with the requirements of the Certification and/or Agreements under 49 USC Sections 60105 and 60106. Applications are due by September 30th of each year. The estimated budgets and Certification/Agreements are reviewed by State program staff for reasonableness and completeness. All State programs certifying to PHMSA they are meeting the program requirements applications are accepted. The Certification and/or Agreement requirements are specified in 49 USC Sections 60105(b) and 60106(a). If a State's Certification or Agreement is not accepted the State is notified in writing of the reason for rejection.

Please describe criteria for selecting proposals: All reasonable, allowable and necessary inspection and enforcement expenses from Certified State agencies are considered for funding to the limit of available grant funding.

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. Each State submits with its annual application a summary of estimated program costs by calendar year covering the State gas and/or hazardous liquid pipeline safety activities to PHMSA. The State Certifies it is complying with the requirements of the Certification and/or Agreements under 49 USC Sections 60105 and 60106. The estimated budgets and Certification/Agreements are reviewed by State Program Staff for reasonableness and completeness. All State Programs Certifying to PHMSA they are meeting the program requirements applications are accepted. The Certification and/or Agreement requirements are specified in 49 USC Sections 60105(b) and 60106(a). If a State's Certification or Agreement is not accepted the State is notified in writing of the reason for rejection. 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. Awards are made by the Secretary of Transportation. The appropriated grant funding, contingent on an enacted budget, is allocated (awarded) to individual State Pipeline Safety Programs based on each State's most recent Program Evaluation and Progress Report scores and the grant allocation formula Allocation of funds will be at 80% of available funding, or at a percentage based on the amount of available funding). Notice of Grant Award agreements are sent to the individual state agencies notifying them of the amount of the 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 through FedSTAR the OMB Standard Form 270 - Request for Advance or Reimbursement to each State agency for submission of their total pipeline safety program costs for the previous calendar year. Requests for reimbursement 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 submitted in September for the next calendar year.