H.R. 9338, Pipeline Safety Authorization Act of 2026

Bill Summary

H.R. 9338 would reauthorize the pipeline safety programs of the Pipeline and Hazardous Materials Safety Administration (PHMSA) through 2031. The bill also would require PHMSA to conduct various regulatory, reporting, and grantmaking activities and would require the Government Accountability Office to assess PHMSA’s implementation of certain procedures related to pipeline safety. Finally, H.R. 9338 would increase civil and criminal penalties for certain violations of pipeline safety requirements.

Estimated Federal Cost

The estimated budgetary effects of H.R. 9338 are shown in Table 1. The costs of the legislation fall within budget functions 400 (transportation), 750 (administration of justice), and 800 (general government).

Basis of Estimate

For this estimate, CBO assumes that the bill will be enacted by the end of calendar year 2026, that the specified and necessary amounts will be provided each year, and that outlays will follow historical spending patterns for the affected programs.

Direct Spending and Revenues

H.R. 9338 would increase collections of civil and criminal penalties, which are recorded in the budget as revenues. Criminal penalties are deposited in the Crime Victims Fund and later spent without further appropriation.

Section 6 would raise the maximum civil penalty PHMSA may levy for violations of certain requirements and regulations related to pipeline safety and maintenance. The daily maximum penalty would increase from $273,000 in 2026 to $341,200 in 2027, and the maximum penalty for the sum of daily violations would increase from $2.7 million in 2026 to $3.4 million in 2027.

Over the past several years, collections of those penalties have totaled about $5 million per year, on average, but most have not reached the maximum. Using information from PHMSA, CBO estimates that enacting section 6 would reduce the number of violations but would increase collections, on net, by $11 million over the 2026-2036 period.

In addition, based on the number of expected cases, CBO estimates that the increase in collections of criminal penalties and the associated increase in direct spending under H.R. 9338 would total less than $500,000 over the 2026-2036 period.

Section 12 would extend PHMSA’s authority to spend certain amounts that otherwise would be cancelled and returned to the Treasury under current law. Based on the amount of relevant funds that CBO expects will be cancelled under current law, CBO estimates that enacting section 12 would increase direct spending by less than $500,000 over the 2026‑2036 period.

Spending Subject to Appropriation

Over the 2026-2031 period, H.R. 9338 would authorize gross appropriations totaling $1.5 billion and the collection of $1.0 billion in user fees, resulting in a net authorization of about $500 million over that period. CBO estimates that implementing H.R. 9338 would cost $103 million over the 2026-2031 period, assuming appropriation actions consistent with that estimate (see Table 2).

Safety Programs Financed by User Fees. Most safety programs operated by PHMSA are financed by fees collected from the owners and operators of pipelines and natural gas storage facilities. Because the collection of the fees precedes the spending of them, CBO estimates that implementing the provisions related to safety programs would, on net, reduce spending subject to appropriation by $210 million over the 2026-2031 period and would increase such spending by $210 million after 2031 so that there would be no net effect on spending over time, assuming appropriation actions consistent with that estimate.

Authorized Spending for Safety Programs. H.R. 9338 would authorize the appropriation of specific amounts each year totaling $1.0 billion over the 2026-2031 period for certain safety programs. CBO estimates that implementing those provisions would cost $796 million over the same period and $210 million after 2031. In 2026, the Congress provided $184 million for those activities.

Offsetting Collections of User Fees. The fees that PHMSA is generally authorized to collect from the natural gas and pipeline industries to cover the costs of certain safety programs are treated as offsets to discretionary spending. For this estimate, CBO assumes that PHMSA would collect fees equal to 100 percent of the authorized amount each year, totaling $1.0 billion in collections over the 2026-2031 period.

Grants for Natural Gas Distribution Pipeline Systems. The bill would authorize appropriations totaling $195 million over the 2026-2031 period for a program to help pay for repairs to or replacement of natural gas pipelines. CBO estimates that implementing the provision would cost $73 million over the 2026-2031 period and $122 million after 2031.

Safety Programs Financed by a Trust Fund. The bill would authorize the appropriation of specific amounts from the Oil Spill Liability Trust Fund, totaling $156 million over the 2026‑2031 period, to pay for pipeline safety programs. CBO estimates that implementing that provision would cost $140 million over the same period and $16 million after 2031. In 2026, the Congress provided $30 million for those activities.

Other Activities. CBO estimates that H.R. 9338 would authorize appropriations totaling $120 million over the 2026-2031 period for other activities conducted by PHMSA and other agencies.[1] CBO estimates that the bill would authorize the following amounts:

• $50 million for emergency response grants (as specified in the bill);
• $15 million for grants to communities to support information related to pipeline safety (as specified in the bill);
• $10 million for damage prevention programs (as specified in the bill); and
• In addition, the bill would require PHMSA to establish a voluntary information system related to pipeline safety and would authorize appropriations totaling $25 million over the 2026-2031 period for those purposes. CBO estimates that it would cost $10 million annually to administer that information system starting in 2028. On that basis, CBO estimates that PHMSA would need $5 million in additional appropriations each year to implement the program, resulting in total authorizations of $45 million over the 2026-2031 period.
• Finally, based on the cost of similar activities, CBO estimates that it would cost less than $500,000 for the Government Accountability Office to report to the Congress on pipeline safety issues.

CBO estimates that the total cost of implementing those provisions would be $100 million over the 2026-2031 period.

Uncertainty

The estimated revenue effects of H.R. 9338 are subject to considerable uncertainty. Projecting the frequency or severity of pipeline safety violations is difficult, as is estimating the deterrent effect of larger civil penalties for those violations. Thus, the amount of additional revenue collected under the bill could be larger or smaller than CBO estimates if larger penalties led to more or fewer violations than we expect.

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in revenues that are subject to those pay-as-you-go procedures are shown in Table 1.

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting H.R. 9338 would not significantly increase net direct spending in any of the four consecutive 10-year periods beginning in 2037.

CBO estimates that enacting H.R. 9338 would not increase on‑budget deficits in any of the four consecutive 10-year periods beginning in 2037.

Mandates

H.R. 9338 would impose private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). CBO cannot determine if the combined costs would exceed the threshold established in UMRA for private-sector mandates ($214 million in 2026, adjusted annually for inflation).

The bill would extend an authorization for the Department of Transportation (DOT) to collect fees on the operators of gas and liquid transmission pipelines and underground storage facilities for natural gas. That would extend an existing mandate on those entities required to remit the fees by five years. As discussed above, CBO estimates that DOT would collect about $200 million each year from 2027 through 2031.

The bill also would require DOT to promulgate regulations within two years of enactment to ensure the safe transportation of carbon dioxide by pipeline. Because the cost of compliance would depend on regulations yet to be published, CBO has no basis to determinate the cost of the mandate.

The bill would not impose intergovernmental mandates as defined in UMRA.

Previous CBO Estimates

On February 6, 2026, CBO transmitted a cost estimate for H.R. 5301, the PIPES Act of 2025, as ordered reported by the House Committee on Transportation and Infrastructure on September 17, 2025. H.R. 5301 is similar to H.R. 9338; both bills would reauthorize programs administered by PHMSA. However,the two bills would reauthorize the programs for different years and would authorize the appropriation of different amounts. In addition, H.R. 5301 would authorize appropriations for PHMSA’s operational expenses and H.R. 9338 would not. Finally, H.R. 9338 would increase civil penalties by more than H.R. 5301. Those differences are reflected in the estimates.

On January 21, 2026, CBO transmitted a cost estimate for S. 2975, the PIPELINE Safety Act of 2025, as ordered reported by the Senate Committee on Commerce, Science, and Transportation on October 21, 2025. S. 2975 is similar to H.R. 9338; both bills would reauthorize programs administered by PHMSA. However, the two bills would reauthorize the programs for different years and would authorize the appropriation of different amounts. In addition, S. 2975 would authorize appropriations for PHMSA’s operational expenses and H.R. 9338 would not. Finally, H.R. 9338 would increase civil penalties by less than S. 2975. Those differences are reflected in the estimates.

Estimate Prepared By

Federal Costs: Aaron Krupkin and Grace Berry

Revenues: Nathaniel Frentz

Mandates: Brandon Lever

Estimate Reviewed By

Ann E. Futrell
Chief, Natural and Physical Resources Cost Estimates Unit

Joshua Shakin
Chief, Revenue Projections Unit

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

H. Samuel Papenfuss 
Deputy Director of Budget Analysis

Estimate Approved By