(a) Beginning in calendar year 1993, the Administrator places increasing emphasis on program performance in allocating state agency funds under Sec. 198.11. The maximum percent of each state agency allocation that is based on performance follows: 1993--75 percent; 1994 and subsequent years--100 percent.
(b) A state's annual grant allocation is based on maximum of 100 performance points derived as follows:
(1) Fifty points based on information provided in the state's annual certification/agreement attachments which document its activities for the past year; and
(2) Fifty points based on the annual state program evaluation.
(c) The Administrator assigns weights to various performance factors reflecting program compliance, safety priorities, and national concerns identified by the Administrator and communicated to each State agency. At a minimum, the Administrator considers the following performance factors in allocating funds:
(1) Adequacy of state operating practices;
(2) Quality of state inspections, investigations, and enforcement/compliance actions;
(3) Adequacy of state recordkeeping;
(4) Extent of state safety regulatory jurisdiction over pipeline facilities;
(5) Qualifications of state inspectors;
(6) Number of state inspection person-days;
(7) State adoption of applicable federal pipeline safety standards; and
(8) Any other factor the Administrator deems necessary to measure performance.
(d) Notwithstanding these performance factors, the Administrator may, in 1993 and subsequent years, continue funding any state at the 1991 level, provided its request is at the 1991 level or higher and appropriated funds are at the 1991 level or higher.
(e) The Administrator notifies each state agency in writing of the specific performance factors to be used and the weights to be assigned to each factor at least 9 months prior to allocating funds. Prior to notification, PHMSA seeks state agency comments on any proposed changes to the allocation formula.
(f) Grants are limited to the appropriated funds available. If total state agency requests for grants exceed the funds available, the Administrator prorates each state agency's allocation. [Amdt. 198-1, 58 FR 10988, Feb. 23, 1993, as amended at 70 FR 11140, Mar. 8, 2005]