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              Congressional
           *.Research Service






PHMSA's Pipeline Safety Reauthorization:

Funding Issues



September 3, 2019


Introduction

The federal pipeline safety program is administered by the Department of Transportation's (DOT's)
Pipeline and Hazardous Materials Safety Administration (PHMSA), working in partnership with state
pipeline safety regulators. Together, the federal and state pipeline safety agencies administer a
comprehensive set of regulatory authorities to ensure the safety of the nation's expansive network of
hazardous liquid (e.g., crude oil) and natural gas pipelines. Under the Protecting Our Infrastructure of
Pipelines and Enhancing Safety Act of 2016 (P.L. 114-183), funding authorization for PHMSA's pipeline
safety program is set to expire after the fiscal year ending September 30, 2019. Congress is debating at
what levels the program should be funded for the next four years. The Trump Administration has
proposed a reduction in PHMSA pipeline safety funding whereas bills in the House and Senate propose
differing increases.

Past  Budget   Authority

PHMSA's   pipeline safety program is funded primarily by user fees assessed on a per-mile basis on each
regulated pipeline operator. PHMSA collects additional fees from underground natural gas storage facility
operators to fund storage regulatory activities as part of its pipeline safety program. Much of PHMSA's
budget is used to pay safety inspectors, either directly as federal employees or indirectly as state
employees through state grants. By statute, PHMSA may pay up to 80% of the cost of personnel,
equipment, and activities of a certified state pipeline safety agency. PHMSA's total annual budget
authority for pipeline safety has grown somewhat steadily since 2001 (Figure 1). For FY2019, PHMSA's
enacted authority is $165 million-more than double the agency's budget authority in FY2008 (not
adjusted for inflation).






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