The Pipeline and Hazardous Materials Safety Administration (PHMSA) has officially announced that the minimum annual random drug testing rate will remain at 50% for covered employees in the pipeline industry throughout calendar year 2026.
PHMSA’s decision stems from a review of 2024 Drug and Alcohol Management Information System (DAMIS) reports, which revealed a random drug testing positive rate greater than 1%.
Under49 CFR 199.105(c)(4), when industry-wide data shows positive rates at or above the 1% threshold, the Administrator must maintain the minimum annual random drug testing rate at 50% of all covered employees.
The regulatory framework does allow for potential rate reductions. According to49 CFR 199.105(c)(3), if the reported positive drug test rate falls below 1% for two consecutive calendar years, the Administrator may lower the random drug testing rate to 25%. However, based on the most recent DAMIS submissions, this criterion has not been met.
Why the Rate Remains at 50%
The 50% random drug testing requirement applies to operators of gas pipeline facilities, hazardous liquid pipeline facilities that transport petroleum products and other regulated materials, carbon dioxide pipeline facilities, liquefied natural gas (LNG) plants, and underground natural gas storage facilities.
Both operators and contractors performing covered functions must ensure they meet this testing threshold throughout 2026. This includes anyone performing operations, maintenance, or emergency response functions on covered pipeline facilities.
The 50% minimum random drug testing rate takes effect January 1, 2026 and remains in force through December 31, 2026.
Operators should review their current random selection rates to ensure their programs will achieve the 50% threshold across the full calendar year. Those working with aDOT consortium programshould confirm their pool management and selection processes are calibrated accordingly.
DAMIS Reporting Requirements
All operators and contractors must submit annual DAMIS reports as required by49 CFR 199.119(a). These reports provide the aggregate data PHMSA uses to calculate industry-wide positive rates and determine future testing rate adjustments.
TheDAMIS systemnow requires Multi-Factor Authentication (MFA) for all submissions. If you have not yet updated your DAMIS login credentials, you should do so before your next reporting deadline to avoid access issues.
Accurate DAMIS reporting is critical not only for your own compliance documentation but for the industry’s collective ability to potentially qualify for reduced testing rates in future years.
What This Means for Your Compliance Program
Maintaining a 50% random testing rate requires careful planning and execution. Selections must be spread throughout the calendar year, and all covered employees must have an equal chance of selection during each testing period.
For operators managing their own programs, this means tracking your covered employee count, documenting each random selection, ensuring timely test completions, and maintaining records that demonstrate compliance during audits.
Working with an experienced Consortium/Third-Party Administrator (C/TPA) can significantly reduce the administrative burden. A qualified C/TPA handles pool management, random selections, result tracking, and provides the documentation needed for PHMSA audits and DAMIS submissions.
All random drug testing included in your annual fee
Quarterly random selections managed and documented
DAMIS reporting support
Laboratory and Medical Review Officer (MRO) services
Access to over 10,000 collection sites nationwide
Complete audit support and documentation
With over 25 years of experience managing DOT compliance programs across all six modes, includingFMCSA,FAA,FRA,FTA, andUSCG, we understand the nuances of mode-specific requirements and keep our clients audit-ready year-round.
Learn More on Our Podcast
Want to understand how random testing and consortium programs work? Listen toTalking the Wiz Quiz: An HR Guide to Drug Testing, hosted by Gary and Lori Oschmann.
When it comes to choosing aDOT drug and alcohol testing consortium, the decision can feel overwhelming. With so many third-party administrators available, how do you know which one will truly protect your business and keep you compliant with federal regulations?
In this video, Gary Oschmann, President and Founder ofAZC Drug Testing, breaks down exactly what sets AZC apart from the competition—and why thousands of transportation professionals across the country trust us with their compliance needs.
The answer comes down to three fundamental pillars: compliance,service, andvalue. Let’s explore each one in detail.
Compliance Built on Decades of Industry Experience
Gary Oschmann founded AZC Drug Testing (originally The Oschmann Organization) in 1996 with a singular focus: keeping clients in full compliance with Department of Transportation regulations. That mission hasn’t changed in nearly three decades.
When you partner with AZC Drug Testing, you’re working with a team that has built its consortium programs from the ground up around the specific requirements of each DOT modal agency. Whether you’re regulated by FMCSA, FAA, FRA, FTA, PHMSA, or USCG, we understand the nuances of each agency’s requirements under 49 CFR Part 40.
Complete Documentation You Can Count On
One of the most common compliance gaps we see with other consortium providers is incomplete documentation. At AZC Drug Testing, we ensure you receive every report and record required to demonstrate compliance during a DOT audit, including selection letters for every random draw (whether your employees were selected or not), complete lists showing which employees were included in each random selection pool, and an annual consortium summary demonstrating that your random testing program met all federal requirements.
These aren’t just nice-to-have documents—they’re essential records that DOT auditors will request. By participating in our consortium, you satisfy the random testing requirements established by your applicable modal agency, and we provide the documentation to prove it.
Responsive Service When You Need It Most
Unlike many competitors who operate as little more than collection sites,AZC Drug Testingprovides genuine, responsive customer service. As Gary puts it simply: “We answer our phones.”
This might sound basic, but anyone who has tried to reach their consortium provider during a DOT audit knows how valuable responsive communication truly is. Our team is here to assist you with DOT audits and compliance reviews—we’ll help you prepare and can quickly reproduce any documentation you need. We provide prompt answers to your compliance questions, and if our staff doesn’t know the answer immediately, we’ll research it and get back to you. When necessary, we will obtain official interpretations directly from DOT agencies on your behalf.
Our expertise isn’t just theoretical. WithDATIA accreditation, BBB Ethics Award recognition, and founding membership in the National Drug & Alcohol Screening Association, AZC Drug Testing has demonstrated its commitment to the highest professional standards in the industry.
Transparent, Predictable Value
Perhaps the most significant differentiator between AZC Drug Testing and our competitors is our pricing model. We’ve structured our consortium membership to include all random testing in one flat annual fee.
Why This Matters for Your Business
Many consortium providers advertise low membership fees but then charge you separately for every random test. This creates a problematic incentive: the more your employees get selected for random testing, the more money they make. Some providers overdraw their pools to maximize revenue at your expense.
At AZC Drug Testing, our flat-fee model eliminates this conflict of interest. You can budget accurately for your annual compliance costs without surprise charges, and we have no financial motivation to overdraw our consortium pools.
Competitive Non-Random Testing Rates
Beyond random testing, our pricing for non-random drug and alcohol tests is below what most competitors charge. Pre-employment drug screens, reasonable suspicion tests, post-accident tests, and return-to-duty testing are all available at competitive rates through our extensive national collection site network.
Ready to Experience the AZC Difference?
Choosing the right consortium is one of the most important decisions you’ll make for your DOT compliance program. With AZC Drug Testing, you get nearly 30 years of compliance expertise built into every service we provide, genuine customer service from knowledgeable professionals who answer your calls, and transparent pricing that lets you budget with confidence.
Whether you’re an owner-operator needing consortium membership or a fleet manager seeking comprehensive compliance solutions, AZC Drug Testing is ready to help you protect your business and stay compliant with all DOT drug and alcohol testing regulations.
Hi, I’m Gary Oschmann. I’m the president of AZC Drug Testing. I sometimes get asked why is AZC Drug Testing the best consortium for you? And the answer really is threefold: compliance, service, and value.
From a compliance standpoint, I started off in the transportation safety industry many years ago, and I built our consortiums and our programs around keeping our clients in compliance with the various DOT modal agencies regulations. We make sure we supply our clients with all the reports that they need to stay in compliance with their drug testing program.
That is from making sure that you get a selection letter for every draw, whether your employees were selected or not. That is making sure that we can supply a list of who from your company was included in every random selection and also making sure that we send out an annual summary of the consortium showing that it was in compliance because the consortium takes the place of the consortium requirement for the various modal agencies random testing requirements.
Now, from a service standpoint, we answer our phones. We’re there to help you, assist you with your various DOT audits. If you need documents reproduced, we can do so very quickly for you. If you have questions, we are here to answer your questions. If my staff doesn’t know the answer, we will do the research for you and get back with you. If that means we have to get an interpretation from one of the DOT agencies, we will do that for you.
Also, from a value standpoint, we built our pricing modules to include all the random testing in the price. That way you can budget for what that random program’s going to cost you every year, and we don’t have the motivation that some of our competitors have to overdraw our consortiums. The price of our non-random drug and alcohol test is below what most of our competitors charge.
We hope that you join us and we look forward to working with you.
AZC Drug Testing has been Arizona’s trusted leader in drug and alcohol testing services for over 25 years.Learn more about our companyand our commitment to compliance excellence.