PHMSA Awards States More Than $49 Million in Pipeline Safety Grants

The Pipeline and Hazardous Materials Safety Administration announced on July 1 that it has awarded more than $49 million in Pipeline Safety Base Grants to reimburse a part of operating costs for state pipeline safety programs.

States charged with inspecting intrastate transmission and distribution pipelines that transport crude oil, natural gas, or other energy products within state lines receive a reimbursement of up to 80 percent of operating costs. The grants also include a maintenance of effort clause that requires each state to contribute the average of its last three years of contributions unless the state is unable to provide the contribution due to economic hardship, which the state must be able to demonstrate.

“The Federal/state partnership is the cornerstone of the national pipeline safety program,” said U.S. Transportation Secretary Anthony Foxx according to the PHMSA brief. “State pipeline inspectors oversee more than 80 percent of the nation’s 2.6 million-mile pipeline network, and we want to make sure they have the resources needed to ensure the safety of the American people.”

These grants provide funding for state programs that employ 340 or more pipeline safety inspectors. The grants are performance-based and are given based on the individual state’s estimated program costs and recent performance scores.

To view the recipients and grant amounts for the 2016 Natural Gas Pipeline State Base Grant and the 2016 Hazardous Liquid Pipeline State Base Grant, click here.