Pipeline Safety Program Base Grants

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Program Accomplishments

Forty-nine State agencies requested and received allocations for fiscal year 2001 for gas and/or liquid grant funds. No eligible State applicant was rejected. State agencies are increasing their knowledge and activities to help operators in their State in operating and maintaining safe pipeline systems.

Uses and Use Restrictions

Eligible programs will cover such areas as inspection and testing of gas pipelines as well as related travel, training, and research.

Funds must be expended for personnel, equipment, and activities reasonably required for the pipeline safety program.

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Eligibility Requirements

Applicant Eligibility

The Department provides Federal matching funds, up to 50 percent 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 must agree that the aggregate expenditures of State funds, exclusive of Federal funds, on the pipeline program for the calendar year to which the Federal funds apply are/not less than the average level of such expenditures on the program for the last 2 fiscal years preceding enactment of the Pipeline Safety Acts.

Beneficiary Eligibility

State agency.

Credentials/Documentation

Appropriate State legal official must approve legality of agency application and agreement. Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments, and "Procedural Guide for the Pipeline Safety Grant Program." Application (plan) due date is September 30.

Aplication and Award Process

Preapplication Coordination

This program is eligible for coverage under E.O.

12372, "Intergovernmental Review of Federal Programs." 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.

Application Procedures

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 the Pipeline and Hazardous Materials Safety Administration, DOT. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedures

Awards are made by the Pipeline and Harardous Materials Safety Administration, DOT, Washington, DC.

Deadlines

Applications are submitted by September 30 for the next calendar year. A later date for filing applications is established if appropriations are not available by September 30.

Authorization

Natural Gas Pipeline Safety Act of 1968, Public Law 90-481, 49 U.S.C. 1971, as amended; Public Law 92-401, 86 Stat. 616; Public Law 93-403, 88 Stat. 802; Public Law 94-477, 90 Stat. 2073; Pipeline Safety Act of 1979, Title I and Title II, Public Law 96-129, 93 Stat. 989; Pipeline Safety Reauthorization Act of 1988, Public Law 100- 561; Pipeline Safety Act of 1992, Public Law 102-508; 49 U.S.C. 601; Public Law 103-272; Accountable Pipeline Safety and Partnership Act of 1996, Public Law 104-304.

Range of Approval/Disapproval Time

From 60 to 90 days from date of receipt.

Appeals

Not applicable.

Renewals

Not applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. The Federal Pipeline Safety Law authorizes Federal reimbursement of up to 50 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 that the State expenditures in any given year, without Federal assistance, cannot be less than the average amount expended by the State for gas pipeline safety during fiscal years 1967 and 1968 and for the last 2 fiscal years preceding the date of enactment of the Pipeline Safety Acts. 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 goals established. 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 amount available for the distribution. PHMSA distributed the remaining funds according to certain criteria designed to seek improvements in State programs. The criteria used by PHMSA were the extent of intrastate jurisdiction, inspector qualifications, recommended number of inspection person-days, State adoption of applicable Federal regulations, and other relevant criteria. In 2006, the Federal allocations represented 42 percent of the estimated State requests in the natural gas program (range: 37 to 43 percent) and the Federal allocations represented 42 percent of the estimated State requests in the hazardous liquid program (range: 34 to 43 percent).

Length and Time Phasing of Assistance

Expenditures made by a State during the calendar year are eligible for Federal reimbursement. States receiving Federal assistance submit claims for reimbursement in July for the Federal share of the cost of actual expenditures between January 1 and June 30 of the year, and in January for Federal share of the cost of actual expenditures between July and December 31 of the year.

Post Assistance Requirements

Reports

Annual activity reports.

Audits

In accordance with the provisions of OMB Circular No. A- 133 (Revised, June 27, 2003), Audits of States, Local Governments, and Nonprofit Organizations, nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records

All records relating to the program shall be retained for a period of not less than 3 years from the date of submission of fund expenditure report.

Financial Information

Account Identification

69-5172-0-2-407.

Obigations

(Grants) FY 07 $19,518,000; FY 08 est $20,000,000; and FY 09 est not available.

Range and Average of Financial Assistance

$1,511 to $1,396,400.

Regulations, Guidelines, and Literature

Pipeline Safety Regulations, 49 CFR 190, 191, 192, 193, 195, 198 and 199. Individual copies available from the Transportation Safety Institute, Pipeline Safety Program, Oklahoma City, Oklahoma 73125. "Procedural Guide for the Pipeline Safety Grant Program." "Guidelines for States Participating in the Pipeline Safety Program." "Guidance Manual for Operators of Small Gas Systems."

Information Contacts

Regional or Local Office

See Appendix IV of the Catalog for a listing of Pipeline and Harardous Materials Safety Administration regional office addresses.

Headquarters Office

Pileline and Harardous Materials Safety Administration, Department of Transportation, 400 Seventh Street, SW., Washington, DC 20590. Contact: Tom Fortner. Telephone: (202) 366- 4595.

Criteria for Selecting Proposals

All proposals from eligible State utility regulatory agencies are considered for funding to the limit of available grant money.