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FEDERAL ENERGY REGULATORY COMMISSION 

Washington, DC 20426

SUBJECT: Plan for Operating in the Event of a Lapse in Appropriations

1. OVERVIEW If FERC has a lapse in appropriations, FERC will do an orderly 

shutdown of non-excepted activities. The performance of excepted activities will 

require FERC to retain 49 employees and 18 contractors. FERC currently has 1,465

employees on-board. Retained employees would equal 3.4 percent of total 

employees. Retained employees and contractors would equal 4.6 percent of total 

employees.

2. OBJECTIVES In accordance with OMB Circular A-11, Preparation, Submission, 

and Execution of the Budget, the Federal Energy Regulatory Commission (FERC) 

establishes this plan and procedures for -

a. continuing operations using available balances from prior years during a lapse 

in appropriations;

b. upon exhaustion of all prior year balances, continuing only those excepted 

functions authorized by law; and

c. initiating the orderly shutdown of those activities not considered excepted.

3. REQUIREMENTS

a. Operating in the Absence of New Appropriations. Title 31 United States 

Code §1341 (Antideficiency Act) unambiguously prohibits Federal officials 

from incurring obligations in the absence of appropriations. Accordingly, 

FERC may not incur obligations that cannot be lawfully funded from prior 

year appropriations, unless such obligations are otherwise authorized by law. 

i. FERC utilizes no-year appropriations to defray its operating costs. 

These appropriations remain available until expended. During a hiatus

in appropriations, FERC will utilize available carryover funds from the 

prior fiscal year to forestall interruptions in agency activities. 

ii. Upon exhaustion of all prior year balances during a funding hiatus, 

FERC will continue only those excepted activities authorized by law. 

The activities FERC will continue are those which may be found 

under applicable statutes to:

1) Conduct excepted activities to the extent that they protect life 

and property. 
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iii. Conduct those activities required to provide for the orderly shutdown 

of other agency activities deemed non-excepted. This would entail the 

cessation of activities that do not protect life and property under the 

terms of the Antideficiency Act. 

4. PROCEDURES

a. Upon a hiatus in appropriations, FERC will immediately utilize and exhaust 

all carryover funds to support operations for a limited term. Management will 

project the span of time in which operations would be supported using 

carryover funds and execute financial plans accordingly.

b. Upon exhaustion of these prior year balances, FERC will continue activities 

deemed excepted to operate the agency during an appropriation’s hiatus. The 

following activities are deemed excepted and are authorized under exceptions 

provided by Title 31 United States Code § 1342. These activities entail direct 

programs which provide for the protection of life and property as well as the 

related mission support (i.e., legal, financial, human resources, etc.) required 

to successfully execute the objectives of these programs. 

i. Action by the Commission

All five Members of the Commission are Presidentially-appointed and 

Senate-confirmed (PAS) and thus will continue working despite any 

lapse in appropriations. Additionally, the activities associated with 

conveying formal action of the Commission will need to continue as 

provided by the Commission’s Secretary.

ii. Hydroelectric and Liquified Natural Gas (LNG) Project 

Inspections 

This program ensures public safety through continued inspection of 

licensed hydroelectric projects and approved LNG projects under 

construction as well as licensed hydroelectric and LNG projects in 

operation. Projects under construction are inspected to ensure that they 

meet all provisions of the license, that they employ sound construction 

and quality control practices, and that they maintain significant 

detailed records. 

Projects in operation are inspected to see that they are being properly 

maintained to ensure the continued safety of the structures, that no 

unauthorized modifications have been made, and that the project is 

being operated efficiently and safely and in compliance with the terms 

of the license and Commission’s order. 
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Availability of travel funds is excepted for such inspections and 

potential emergency situations involving the safety of licensed and 

LNG projects.

iii. Monitoring of Electric Reliability and Threats to Jurisdictional 

Infrastructure

This work protects public safety through continued monitoring of the 

reliability of the bulk power system and threats to energy 

infrastructures under the Commission’s jurisdiction. The Commission 

monitors the real time operations of the bulk power system, including 

use of a 24/7 emergency message notification system to provide all 

five Members of the Commission with timely information during 

emergencies and system disturbances, in advance of full scale event 

analysis. The Commission also works with other governmental 

agencies and regulated entities to promote timely identification of and 

solutions to potential cyber and physical security risks to the 

operations of jurisdictional infrastructure. The excepted staff will 

perform a minimum level of these oversight roles, to monitor for 

urgent matters. 

iv. Market Monitoring

This work involves monitoring energy markets under FERC 

jurisdiction for any market manipulation or other violations of 

Commission rules, as well as any behavior warranting changes in 

Commission-approved rates, terms or conditions. Actions in these 

markets sometimes require the Commission to act urgently to protect 

the property of market participants. The excepted staff will perform a 

minimum level of oversight, to monitor for urgent matters.

v. Legal and Enforcement Matters 

There is a need for ongoing legal advice to the Chair, Commissioners, 

and excepted personnel regarding excepted functions. 

With regard to matters pending before the Federal courts, FERC will 

request stays in the related proceedings citing limitations of Title 31 

U.S.C. § 1342 relative to the Commission’s ability to participate 

incident to a lapse in appropriations. If the courts deny the stay and 

explicitly or implicitly rule that FERC participation in these matters is 

authorized under the protection of life and property exceptions 

provided in 31 U.S.C § 1342 or some other applicable provision of 

law, FERC staff will be required to meet obligations established by 

these courts. 
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vi. Commission Infrastructure

Information Technology: In order to maintain information technology 

operational service for excepted functions, sufficient funds must be 

made available to continue Federal- and contractor-provided 

operational services and to maintain systems for when the shutdown is 

over. Appropriate personnel to supervise the services involved in this 

activity are excepted.

Building Security and Maintenance: In order to protect Federal 

property in Commission Offices, sufficient funds must be made 

available to continue security and maintenance until such time as 

appropriations are resumed. Appropriate personnel to supervise the 

funds involved in this activity are also excepted. 

Funds Certification and Contract Monitoring Activity: Sufficient 

personnel to authorize and monitor expenditure of previously 

committed funds, as well as those funds necessary to carry out the 

activities which have been identified as having an impact on public 

health and safety, are excepted. 

c. Upon a hiatus in appropriations and after available prior year balances have 

been exhausted, FERC must begin the orderly shutdown of all activities not 

deemed excepted as provided in section 3.b. i.– iv of this plan. The 

Commission expects to complete these activities within 1⁄2 business day 

following notification of a hiatus in appropriations. 

i. FERC will cease the acceptance of filings from the public and 

postpone all deadlines and due dates for all pending matters not related 

to excepted activities. Accordingly, FERC will issue notice informing 

the public of its action. 

ii. FERC will curtail contractual support services to levels required to 

support only excepted activities. Accordingly, FERC will issue 

notifications to affected vendors.

iii. FERC will take the necessary personnel actions to release employees 

not performing excepted activities in accordance with applicable laws 

and regulations of the Office of Personnel Management (OPM). It will 

prepare employee notices of furlough and process personnel and pay 

records in connection with shutdown furlough actions. 

d. FERC will maintain only excepted activities as provided by this plan until the 

hiatus of appropriations has ended.
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5. DISPOSITION OF FERC PERSONNEL DURING A HIATUS OF 

APPROPRIATIONS

a. As of November 25, 2017, the Commission has 1,465 employees on-board. 

The Commission has no employees that will be retained under its shutdown 

plan engaged in military, law enforcement, or direct provision of health care 

activities. Additionally, FERC has no employees that are financed by sources 

other than annual appropriations.

b. The following table presents the number of Commission employees and 

contractors that will be required to perform excepted activities under the terms 

of 31 U.S.C. §1342. All employees and contract personnel are retained under 

the plan to perform activities which protect life and property. As such, these 

employees are not subject to furlough. Employees retained to perform 

excepted functions comprise approximately 3.4% of total on-board employees 

less exempt Presidential appointees.

Activity Description Number of

Federal Employees

Number of 

Contractor 

Personnel

i. Action by the Commission 2 -

ii. Hydroelectric and Liquified 

Natural Gas Inspections 19 -

iii.

Monitoring of Electric 

Reliability and Threats to 

Jurisdictional Infrastructure

4 -

iv. Market Monitoring 3 -

v. Legal and Enforcement Matters 11 -

vi. Commission Infrastructure 10 18

Total Employees/Contractor 

Personnel 49 18
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c. It is important to note that the Commission has five (5) presidential appointees 

that are exempted from furlough. These appointees are Members of the 

Commission and play a critical role in excepted activities that will continue 

during a lapse in appropriations. Other provisions of law provide their exempt 

classification per OPM guidance.

d. Taking into consideration all exempted employees and those employees 

retained to protect life and property, a total of 54 employees will remain 

engaged with the Commission during a hiatus in appropriations. The contract 

personnel provided in the shutdown plan provide physical security for FERC 

facilities and information technology support services for excepted 

applications.