The bill establishes a grant program, administered by the Pipeline and Hazardous Materials Safety Administration (PHMSA), to enhance the safety and modernize hazardous liquid distribution infrastructure. This program, authorized at $100 million annually from fiscal years 2026 through 2030, will support projects undertaken by municipalities and community-owned utilities, including through public-private partnerships. Grant selection prioritizes projects based on the pipeline system's risk profile, potential for job creation, and overall economic impact.

To improve public safety and transparency, the legislation mandates significant updates to PHMSA's website, requiring easily accessible reporting of all pipeline accidents and incidents, along with regular remediation status updates. It also introduces new requirements for states to mandate real estate disclosures of nearby hazardous liquid pipeline easements for grant eligibility, detailing operator information, pipeline contents, and incident history. Furthermore, operators must develop community involvement strategies within their emergency response plans and establish localized emergency alert systems for communities near pipelines.

The bill imposes substantial financial penalties on hazardous liquid pipeline operators for leaks, accidents, incidents, or failures, with a base penalty of $2.5 million levied annually until remediation is certified. This penalty doubles to $5 million if an operator fails to declare an event within 15 days of discovery. These collected penalties will fund a new Hazardous Liquid Pipeline Community Trust Fund, which will then disburse monies to support the aforementioned grant program and provide emergency reimbursements to local responders.

Additionally, the legislation directs the Secretary of Transportation to issue new rules for in-person testing of water, soil, and air for potential leaks, including specific requirements for well testing and annual in-line inspections for older pipelines. It also establishes an Office of Public Engagement within PHMSA, tasked with proactively engaging stakeholders, promoting safety practices, and informing the public about pipeline safety regulations. This office will incorporate community liaisons to ensure public perspectives are considered in safety order cases.