Midstream

Federal budget fight could stall midstream permitting

Speaker of the House Mike Johnson (R-LA). Photo by Gage Skidmore.

The clock is ticking to avoid an Oct. 1 government shutdown while factions within the U.S. Congress continue wrangling over the federal budget. Agreement on a spending bill for the full fiscal year will take longer, but a short-term continuing resolution is needed to avoid shutting down government functions considered non-essential, including agency permitting of midstream projects.

A group of 14 House Republicans joined with Democrats on Wednesday to reject Speaker Mike Johnson's proposed temporary spending bill, which would have funded the government at current levels for six months and included a measure requiring proof of citizenship to vote. Tacking on immigration-related issue when non-citizen voting is already a federal offense makes it unpalatable to most House Democrats and the Democrat-controlled Senate. Johnson's bill was defeated by a 202-220 vote, with two voting present.

The result was expected since Johnson had delayed a scheduled vote on the measure the previous week due to opposition. He could not gain additional support with the additional time.

Budget negotiations will resume in Congress as lawmakers attempt to avert a shutdown. Some GOP officials want a shorter-term continuation that would leave the next round of budget negotiation for December and a lame-duck Congress. Others believe letting the government shut down could force the hand of Democrats on immigration issues. Democrats reportedly support a three-month spending measure to fund the government at current levels.

Senate Majority Leader Chuck Schumer said Thursday the Senate would pursue a bipartisan funding bill even though spending bills are supposed to originate in the House. He’s expected to propose a three-month funding resolution. Republican senators have indicated support for such a solution.

Even a brief shutdown could stall anything with a federal nexus for midstream companies, particularly environmental reviews and permitting. A short-term shut down of a few days can cause weeks of delay even after the government is funded.

All of this is happening as early voting is poised to get underway in key contests, including the presidency.

Vice President Kamala Harris has tightened the presidential race post-debate, with polls from many swing states within the margin for error. National polls indicate voters narrowly favor Harris, but the race remains close and difficult to predict.

Like Harris, former President Donald Trump is chasing swing-state voters. He initially announced there will be no more presidential debates but recently left open the possibility of a second round.

A vice presidential-candidate debate on Oct. 1 is the next major event when Harris running mate and Minnesota Governor Tim Walz takes the stage against Trump VP-pick J.D. Vance, a U.S. Senator for Ohio.

While energy policy hasn’t been the center of attention in the race, Harris is expected to continue greenhouse gas emission reduction programs launched during the Biden administration. She has backed off a 2019 position calling for a complete ban on hydraulic fracturing.

Trump backs an expansion of domestic oil and gas drilling, and agency heads appointed during his administration were tasked with reducing the number and scope of regulations on the industry.