US energy agencies prepare for shutdown as White House layoff threat looms

US energy agencies are preparing to furlough staff and reduce operations in the event of a government shutdown on Oct. 1 as the White House threatens to permanently fire thousands of federal employees if lawmakers cannot reach a deal.

Republican lawmakers are pushing for a continuing resolution that will maintain funding at current levels through Nov. 21, and pushed such a measure through the House in a 217-212 party-line vote on Sept. 19. Senate Democrats, joined by Senators Lisa Murkowski (R-Alaska) and Rand Paul (R-Ky.), blocked that measure that same day, with Democrats putting forward an additional proposal that added additional healthcare provisions. That measure also failed on Sept. 19.

Senate rules require 60 votes to end debate. That means a unified Republican caucus needs at least six Democratic votes to pass a funding bill.

Negotiations between Republicans and Democrats have also stalled in recent weeks, with President Donald Trump canceling a planned Sept. 25 meeting with Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY), calling their demands "unserious and ridiculous." However, Trump eventually agreed to meet with the Democratic leaders on Sept. 29.

Complicating matters is the White House Office of Management and Budget's threat to permanently fire thousands of government employees if the government shuts down, a sharp departure from past practice, where employees have been furloughed temporarily and then given back pay once lawmakers reach a deal.

However, a shutdown also carries risks for the Trump administration, which has been working to quickly undo a host of Biden-era environmental and energy regulations. An extended shutdown and an extensive reduction-in-force could stall certain Trump administration regulatory efforts — such as reversing the US Environmental Protection Agency's endangerment finding and rolling back greenhouse-gas emissions standards for power plants.

Many agencies referred Platts, part of S&P Global Energy, to the OMB for comment on Sept. 29 on their shutdown plans. A spokesperson from the OMB did not immediately respond to a request for comment on Sept. 29.

Federal Energy Regulatory Commission

FERC spokesperson Celeste Miller directed Platts to the agency's 2024 lapse in appropriation plan and said on Sept. 25 the agency would communicate additional updates if the plans change.

The 2024 lapse in appropriations plan includes operating with minimal staffing and limited functions focused on reliability, market monitoring and inspection of hydropower and LNG facilities. According to the plan, FERC would retain about 60 employees and 18 contractors, representing just under 5% of its total workforce.

However, FERC historically has weathered past shutdowns using carry-over funds that have accumulated from previous fiscal years. While FERC must get its budget approved by Congress, the commission is almost entirely funded through user fees and receives limited federal resources.

Environmental Protection Agency

A spokesperson for the EPA referred questions on the agency's lapse in appropriations plan to the OMB.

Under the agency's public lapse in appropriations plan, which was last updated in March, the EPA would retain about 1,260 employees or about 7.5% of its total workforce.

The EPA would prioritize work on emergency and disaster assistance, law enforcement and criminal activities and the protection of EPA land and buildings, according to the March plan. Under the plan, the agency will cease distributing new grants, conducting research, and issuing permits, National Environmental Policy Act guidance, regulations and policies.

The EPA did not respond to an inquiry as to whether the March plan remained accurate.

US Energy Department

A spokesperson from the DOE did not respond to a request for comment.

However, during past shutdown threats, the DOE said it could use previously appropriated funds to operate without disruption for one to five days. After those funds are exhausted, the department would only continue functions tied to safety and property protection.

Nuclear Regulatory Commission

An NRC spokesperson declined on Sept. 25 to comment on the agency's plans for a government shutdown, referring questions to the OMB.

Certain "excepted functions" would continue at the NRC during a federal government shutdown, according to the commission's guidance for periods of suspended appropriations, updated Sept. 9. Among those activities are maintaining "readiness to accept notification calls regarding emergencies related to nuclear reactors or materials licensees" and some elements of emergency response, including "incident response teams when called in for an event."

Also, the NRC would "maintain capability to send a team of experts to an emergency operations facility in the vicinity of an accident during the first hours following a major reactor incident," it said.

NRC resident inspectors assigned to every operating US nuclear power plant and related fuel cycle facilities would also remain on duty under the guidance.

Interior Department

A spokesperson for Interior similarly did not respond to a request for comment. In past shutdown threats, the agency's Bureau of Land Management has said it would stop offering new oil and gas, geothermal and renewable energy lease sales, as well as stop processing new applications for drilling and rights of way.

The Bureau of Ocean Energy Management has also previously had to stop all offshore conventional energy and marine mineral activities, renewable energy activities and environmental analyses.