PHMSA is authorized to reimburse a State agency up to 80 percent of the agency's actual cost for carrying out its pipeline safety or underground natural gas storage safety program(s), including the cost of personnel and equipment. The actual amount of Federal reimbursement depends upon the availability of appropriated funds and the State's pipeline safety or underground natural gas storage program's performance. A State agency's program performance is based on PHMSA's annual Program Evaluation and Progress Report scoring of each State agency.
The Program Evaluation considers a State's performance in achieving established goals for pipeline safety or underground natural gas storage safety programs set by PHMSA. The Program Evaluation includes an on-site review of the State’s inspection, compliance, incident investigation, training, and excavation damage prevention records and activities.
The Progress Report scoring gives consideration to the State’s extent of safety authority over pipeline operators, inspector qualifications, inspection days accomplished, adoption of maximum civil penalty amounts, progress adopting amendments to the Federal regulations, adoption of one call requirements, and attendance at key safety meetings.