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               Researh Sevice






PHMSA's Pipeline Safety Reauthorization:

Funding Issues



Updated January 8, 2020


Introduction

The federal pipeline safety program is administered by the Department of Transportation's (DOT's)
Pipeline and Hazardous Materials Safety Administration (PHMSA), working with state pipeline safety
regulators. Together, the federal and state agencies administer comprehensive regulations to ensure the
safety of the nation's hazardous liquid (e.g., crude oil) and natural gas pipelines. Under the PIPES Act of
2016 (P.L. 114-183), funding authorization for PHMSA's pipeline safety program expired on October 1,
2019. Although the Further Consolidated Appropriations Act, 2020 (P.L. 116-94) includes pipeline safety
appropriations for FY2020, Congress is debating at what levels the program should next be authorized. In
2019, the Trump Administration proposed reducing PHMSA pipeline safety funding for FY2020 whereas
bills in the House and Senate would authorize increased funding at different levels.

Past Budget Authority
PHMSA's pipeline safety program is funded primarily by user fees assessed 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 was $165
million-more than double the agency's budget authority in FY2008 (not adjusted for inflation).








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