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U.S. Department of Transportation
Fiscal Year 2009 Budget In Brief

PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION

Overview: The Pipeline and Hazardous Materials Safety Administration (PHMSA) is serving a vital and expanding role in the work of the Department and in advancing each of the Department’s strategic goals. Through its two safety programs – Hazardous Materials Safety and Pipeline Safety – PHMSA oversees the safe movement of the energy sources that power most of the transportation system, in addition to the chemicals and other materials essential to our way of life.

In FY 2009, PHMSA will focus on helping States by increasing funding to strengthen pipeline safety oversight and extend integrity management to the distribution pipeline network. PHMSA will also increase inspections of poor performing operators, shippers and carriers, and begin to demonstrate the viability of safely moving alternative fuels through pipelines and other modes of hazardous materials transportation.

Pipeline and Hazardous Materials Safety Administration Budget
(Dollars in Millions)
  2007
Actual
2008
Enacted
2009
Requested
Pipeline Safety 75 80 93
Hazardous Materials Safety 27 28 28
Emergency Preparedness Grants 14 28 28
Operations 18 18 18
Total 134 154 168

Summary of PHMSA FY 2009 Increases and Decreases
(Dollars in Millions)
  Pipeline
Safety
Hazardous
Materials
Safety
Emergency
Preparedness
Grants
Operations Total
FY 2008 Base 80 28 28 18 154
Pay Inflation Adjustments 1 0 0 0 1
Non-Pay Inflation Adjustments 1 0 0 0 1
Annualization of FY 2008 Initiatives 0 0 0 0 0
Non-recurring Costs or Savings 0 0 0 0 0
Base Re-engineering, Reductions or Adjustments 0 0 0 0 0
FY 2009 Current Services Levels 82 28 28 18 156
Program Initiatives 11 0 0 0 11
FY 2009 Request 93 28 28 18 168
FY 2009 Budget

Hazardous Materials Safety Program: The FY 2009 request provides $28 million, to achieve PHMSA’s share of the overall DOT performance target of no more than 458 target serious hazardous materials incidents in 2009. PHMSA’s oversight of safe, environmentally-sound, and reliable transportation of energy products and other hazardous materials is vital to our national economy. Hazardous materials make up about 28 percent of the annual ton-miles of U.S. freight, including two-thirds of all energy products consumed annually in the United States. On a daily basis, Americans rely on hazardous materials to generate electricity, fuel vehicles, clean drinking water, fertilize crops, and manufacture medicine, clothing, and many other essential industrial and consumer products. In FY 2009, PHMSA will continue to address existing and new challenges while the agency promotes and advance the goals of DOT and the Administration.

Pipeline

Emergency Preparedness Grants: The FY 2009 request funds the Hazardous Materials Emergency Preparedness grants program at $28.3 million — the full level authorized by SAFETEA-LU. PHMSA will award grants for training 293,000 local first responders and 25,000 HAZMAT employees, and for development of 4,000 emergency response plans. PHMSA also will continue distribution and ongoing updating of its Emergency Response Guidebook, an internationally recognized, authoritative resource for hazardous materials incident response. The agency will place a special emphasis on training volunteer first responders in FY2009 as part of the Department’s initiative targeting rural safety.

Pipeline Safety: The budget request includes $93.3 million to meet the program’s key performance goals: holding the number of serious pipeline incidents to no more than 38 and reducing hazardous liquid pipeline spills in high consequence areas to no more than 49. PHMSA will continue implementation of the Pipeline Inspection, Protection, Enforcement, and Safety (PIPES) Act of 2006; increase oversight of low pressure liquid pipelines in environmentally sensitive areas; strengthen oversight of Alaska pipelines; and promote safety improvements necessary to enhance system reliability and capacity.

Operations: The FY 2009 request includes $18.1 million for expenses to maintain necessary oversight and support for the HAZMAT and Pipeline Safety programs.