Fed Shutdown Slows RFS, WOTUS Rules

LINCOLN, Neb. (DTN) -- With agriculture waiting for final Renewable Fuel Standard volumes and other RFS rules, as well as a pending waters of the U.S. rule, the federal government shutdown that began on Wednesday has cast a shadow on when exactly that work could be completed by the U.S. Environmental Protection Agency.

Even if the shutdown period is relatively short, a significant reduction in agency employees could further slow rulemaking.

According to an EPA shutdown plan, before the shutdown, the agency had 15,166 employees, and once the shutdown plan is implemented, just 1,734 employees are expected to be retained to execute "excepted" or "exempted" activities needed during the shutdown.

The plan states that by default, any employee not designated as excepted or exempted will be furloughed during the shutdown. The document also notes that the agency retains the authority to modify the number of personnel working during the shutdown. As of Wednesday morning, the Trump administration had not announced plans to permanently lay off EPA employees when the shutdown ends.

Right now, the shutdown will continue to at least Friday, when the U.S. Senate is next scheduled to vote on ending it.

The EPA's plan provides guidance on defining "exempted activities" that would continue during the government shutdown.

That includes those that are funded with "unexpired appropriations" where carryover funds remain unobligated.

Exempted activities also include those funded with appropriations that are not subject to the annual appropriations process, such as permanent indefinite appropriations.

For example, on Wednesday, the EPA held a virtual public hearing on the RFS volumes proposal, https://www.dtnpf.com/…, just hours after the shutdown became official.

EXEMPTED EPA ACTIVITIES

Examples of exempted activities include those funded by permanent appropriations like those under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) or the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

The key criterion is that EPA activities must have funding sources other than the annual appropriations that have lapsed to be considered exempted and allowed to continue during a shutdown.

Based on EPA's plan, here are some key things to consider:

-- Permit approvals: The plan said that issuing new permits, guidance, regulations and policies will generally cease during a shutdown, unless necessary for excepted or exempted activities. This could delay or halt the approval of Clean Water Act permits that farmers may be waiting on.

-- Renewable Fuel Standard, waters of the U.S. rule: The plan indicates rulemaking activities, like finalizing volumes, would likely cease during the shutdown unless they are deemed necessary for excepted activities. That would include the RFS and WOTUS. A further delay on the RFS volumes is likely to make agriculture and biofuels interests pull their hair, as those volumes are already extremely late.

-- Ag chemicals: Based on the EPA plan, the approval of agriculture chemicals like pesticides and herbicides would likely be affected during the shutdown.

FUNDING DISTINCTIONS

EPA said that activities funded by permanent appropriations, such as those under FIFRA, may be considered "exempted activities" and allowed to continue. This would include the EPA's pesticide registration and review processes funded through FIFRA fees.

However, the issuance of new permits, guidance, regulations and policies generally ceases during a shutdown, unless they are deemed necessary for excepted or exempted activities. This could delay or halt the EPA's approval of new or amended pesticide and herbicide registrations.

When it comes to existing pesticide and herbicide registrations, EPA said in the plan that work could continue if it does not require interaction with non-exempted EPA employees. This would allow some registration maintenance activities to continue.

As is the case with many EPA functions, with most EPA staff furloughed, the agency's overall capacity to review, process and approve new agriculture chemical registrations is significantly reduced during a shutdown.

-- Enforcement and compliance: EPA's plan says civil-enforcement inspections would generally cease, unless necessary for excepted or exempted activities.

-- State program approvals: The plan indicates that approvals of pending state requests, such as authorized/delegated state-issued EPA permits, will likely cease during the shutdown, unless necessary for excepted or exempted activities. This could affect state-level water quality programs that farmers interact with.

An extended shutdown will likely cause delays and disruptions to a variety of EPA activities and approvals that farmers depend on, unless those activities are deemed excepted or exempted from the shutdown.

Perhaps one of the biggest effects of the shutdown is on the approval and permitting process.

Farmers who need Clean Water Act permits to conduct work on their land are facing uncertainty, as the EPA plan indicates that issuing new permits will generally cease during the shutdown, unless deemed essential.

Farmers who count on federal grants and financial assistance programs are also facing challenges.

The shutdown prohibits the EPA from obligating funds for new grants and cooperative agreements, unless they are tied to excepted activities. Existing agreements may continue, but any new support for farmers is likely to be halted, according to the EPA plan.

Read more on DTN:

"USDA's Shutdown Plan Detailed," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

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