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.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Pipeline and Hazardous Materials Safety Administration, Department of Transportation
Type(s) of Assistance Offered
A - Formula Grants
Program Accomplishments
Fiscal Year 2018 Accomplishments on this project are on-going and inspection data collection is on-going.
Protecting our Infrastructure of Pipelines and Enhancing Safety Act (PIPES) 2016, Public Law 114-183, 49 U.S.C. 60101
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
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.
Beneficiary Eligibility
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.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. 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 Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. U.S. Department of Transportation, Pipeline & Hazardous Materials Safety Administration, Pipeline Safety, PHP-50, 1200 New Jersey Avenue, SE, Washington, DC 20590.
Award Procedure
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 (*note: 2018 was the first year of this grant program, program evaluation and progress report scores will not be available to apply to the formula until 2020. 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 (End of Year Payments) 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.
August 15, 2019 to September 30, 2019 Applications are submitted in September for the next calendar year. The Director of State Programs may extend or modify the dates based on good cause.
Approval/Disapproval Decision Time
From 60 to 90 days. From 60 to 90 days of receipt. Award is contingent on a current fiscal year appropriation and enacted budget.
Not applicable.
Not applicable.
How are proposals selected?
Eligibility is determined by 49 USC, Section 6104. 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.
How may assistance be used?
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.
What are the requirements after being awarded this opportunity?
Performance Reports: Program Evaluation and Progress Report. Triennial grant review is performed on all States to assure funds were spent on proposed projects and in accordance with OMB requirements.
Also see: 2 CFR 200 at
All records relating to the projects must be retained for a period of not less than 3 years from the date of submission of final expenditure report for grant period.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title 49. Transportation Chapter I. PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION Part 198. REGULATIONS FOR GRANTS TO AID STATE PIPELINE SAFETY PROGRAMS Subpart B. Grant Allocation Grants are awarded based on the following formula: Grant Award = State Budget Amount*State Performance Score*Percent Allocation Where Percent Allocation(80%Maximum)_= Total Available Funding/Sum of All Programs (State Score*State Budget) State Budget Amount = Calendar Year Budget Estimate Submitted by each State with Grant Application Annual State Performance Score Outlined in the Guidelines for Participating in the Pipeline Safety Program. Percent Allocation – This is the maximum percentage of total program costs that can be applied to each grantee. There is an 80% maximum funding limited required by Section 60107 of the Pipeline Safety Act. This formula provides for an equal distribution of available funds in the event appropriated funding is less than required for maximum funding. Total Available Funding - This is the annual funding provided by congressional appropriation. This would also include any unexpended (carryover) funds available from previous fiscal years. The combined sum of each State Performance Score multiplied by each State Budget Estimate.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
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 February for the Federal share of the cost of actual expenditures between January 1 and December 31 of the year. Electronic Funds Transfer
Who do I contact about this opportunity?
Regional or Local Office
See Appendix IV of the Catalog for a listing of Pipeline and Hazardous Materials Safety Administration regional office addresses.
Headquarters Office
Zach Barrett
1200 New Jersey Avenue, S.E.
Washington, DC 20590 US
Phone: (405) 834-8344
Website Address
Financial Information
Account Identification
(Formula Grants) FY 18$3,707,058.00; FY 19 est $7,146,926.00; FY 20 Estimate Not Available FY 17$0.00; FY 16$0.00; - Fiscal Year 2018 was the first year for the grant.
Range and Average of Financial Assistance
Not applicable/available.
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, PHMSA Training and Qualification, Oklahoma City, Oklahoma 73125. "Guidelines for States Participating in the Pipeline Safety Program." Also available on-line at
Examples of Funded Projects
Fiscal Year 2018 This is a formula grant requiring program certification that pays for costs of personnel and activities of eligible programs.


Federal Grants Resources