The Pipeline and Hazardous Materials Safety Administration (PHMSA) is one of twelve operating administrations within the U.S. Department of Transportation, and is responsible for the safe transportation of hazardous materials by any mode. PHMSA is divided into two program areas: the Pipeline Safety Program (PHP) and the Hazardous Materials Safety Program (PHH). PHH also works closely with the Federal Aviation Administration; Federal Railroad Administration; Federal Motor Carrier Safety Administration; and the U.S. Coast Guard to help those entities administer their hazardous materials safety programs.

On December 16, 2014, the President signed into law a budget that included $244.5 million in funding for PHMSA, a $34.5 million increase over FY 2014. This new budget allocation significantly strengthens PHMSA's ability to carry out its mission to protect people and the environment from the risks of hazardous materials transportation.

Pipeline Safety ($145.5 million) in FY 2015 will increase $26.9 million for activities to ensure the safe operation of the Nation's pipeline network including funding increases in three important areas:

• $10.0 million increase to expand the State Pipeline Safety Grants (for a total of $48.1 million overall) to reimburse states for up to 80% of their cost to maintain their own pipeline safety program;
   
• $11.9 million for hiring 109 new positions mostly inspection and enforcement personnel, bringing the workforce in the Office of Pipeline Safety to 336; and
   
• $2.1 million for additional community outreach activities for those communities most affected by pipelines near where people live and work.

Hazardous Materials Safety ($52.0 million) in FY 2015 will increase $7.0 million for safety activities including funding increases in two important areas:

• $4.7 million increase for research and development including $2.4 million for classification activities to determine the best test criteria and sampling methods for crude oil and $1.4 million will be devoted to formulating standards for transporting LNG on safer rail tank cars.
   
• $1.4 million for hiring 13 new inspection and enforcement, regulatory, and acquisitions staff bringing the workforce to 203.

Emergency Preparedness Grants ($26.3 million) to support first responders engaged in gaining and disseminating information and training to reduce the risks posed by hazardous materials to local communities.

Operational Expenses ($20.7 million) for operational expenses necessary for PHMSA for the administration of all PHMSA safety programs.

¹The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 (P.L. 112-90) authorizes PHMSA to recover from companies the costs of conducting pipeline facility design reviews of projects with design and construction costs totaling over $2.5 billion. No fees have been collected to date pursuant to this authority; therefore, the Design Review Fees are not included.