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Anticipated Cases Coming Up on the Docket: Chevron Deference Taking the Hot Seat
On Wednesday, January 17, the U.S. Supreme Court heard oral arguments regarding two cases that could roll back authority currently exercised by federal administrative agencies in regulating corporate behavior, with potentially great impact for companies operating throughout the United States and, in particular, could limit the federal government’s ability to enforce environmental regulations.
In the two cases, Loper Bright Enterprises v. Raimondo (Loper Bright) and Relentless, Inc. v. Department of Commerce (Relentless, Inc.), the court will consider whether to overrule the 1984 decision known as Chevron v. Natural Resources Defense Council (Chevron). Chevron gave federal agencies great authority by requiring courts in certain instances to defer to agency interpretation of statutes within their fields of expertise. This has become known as “Chevron deference.”
Loper Bright and Relentless, Inc. challenge the forty-year-long-standing precedent of Chevron and raise the same issue before the Supreme Court: Whether the Court should overrule Chevron or otherwise limit the power of agencies to interpret statutes. If the Court cuts back on Chevron, the likely effect would be to transfer to the courts, and away from executive branch agencies, the authority to interpret general or ambiguous statutes.
Both Loper Bright and Relentless, Inc. involve groups of commercial herring fishing companies suing over the National Marine Fisheries Service’s industry-funded monitoring programs for the Atlantic herring fishery. The rule requires fishers to pay for federal inspections, to which they object. Lower courts relied on Chevron to uphold the payment requirement. In both cases, the Supreme Court agreed to hear only the question related to deference to agencies.
The Supreme Court’s decision in the Loper Bright and Relentless, Inc. cases could substantially impact the power currently exercised by federal administrative agencies. Even if the Supreme Court doesn’t overrule Chevron, its impact could be substantially weakened. As the law now stands, agencies are entitled to deference if a statute is “ambiguous” or “silent,” but the Supreme Court could reinterpret those words to limit agency power. Or the Court might expand the so-called major questions doctrine, a judicially created rule that agencies should not decide issues of significant national importance unless clearly authorized by Congress.
Normally, the Supreme Court would have put Relentless, Inc. on hold until it rules on Loper Bright, but it instead took an unusual step and fast-tracked Relentless, Inc. to be heard the same day as Loper Bright, suggesting it may already have plans for the two agency-deference cases.
Sources
1. Amy Howe, Supreme Court will consider major case on power of federal regulatory agencies, SCOTUSBLOG (May 1, 2023), https://www.scotusblog.com/2023/05/supreme-court-will-consider-major-case-on-power-of-federal-regulatory-agencies/.
2. Amy Howe, Justices grant four new cases, including Chevron companion case, SCOTUSBLOG (Oct. 13, 2023), https://www.scotusblog.com/2023/10/justices-grant-four-new-cases-including-chevron-companion-case/#:~:text=Justices%20grant%20four%20new%20cases%2C%20including%20Chevron%20companion%20case,-By%20Amy%20Howe&text=The%20Supreme%20Court%20has%20added,for%20the%202023%2D24%20term.
3. Loper Bright Enter., Inc. v. Raimondo, 45 F.4th 359 (D.C. Cir. 2022), cert. granted in part sub nom. Loper Bright Enter., Inc. v. Raimondo, 143 S. Ct. 2429 (2023).
4. Loper Bright Enterprises v. Raimondo, SCOTUSBLOG, https://www.scotusblog.com/case-files/cases/loper-bright-enterprises-v-raimondo/ (U.S. Supreme Court Docket No. 22-451).
5. Relentless, Inc. v. U.S. Dept. of Com., 62 F.4th 621 (1st Cir. 2023), cert. granted in part sub nom. Relentless, Inc. v. Dept. of Com., 144 S. Ct. 325 (2023).
6. Relentless, Inc. v. Department of Commerce, SCOTUSBLOG, https://www.scotusblog.com/case-files/cases/relentless-inc-v-department-of-commerce/ (U.S. Supreme Court Docket No. 22-1219).
In the two cases, Loper Bright Enterprises v. Raimondo (Loper Bright) and Relentless, Inc. v. Department of Commerce (Relentless, Inc.), the court will consider whether to overrule the 1984 decision known as Chevron v. Natural Resources Defense Council (Chevron). Chevron gave federal agencies great authority by requiring courts in certain instances to defer to agency interpretation of statutes within their fields of expertise. This has become known as “Chevron deference.”
Loper Bright and Relentless, Inc. challenge the forty-year-long-standing precedent of Chevron and raise the same issue before the Supreme Court: Whether the Court should overrule Chevron or otherwise limit the power of agencies to interpret statutes. If the Court cuts back on Chevron, the likely effect would be to transfer to the courts, and away from executive branch agencies, the authority to interpret general or ambiguous statutes.
Both Loper Bright and Relentless, Inc. involve groups of commercial herring fishing companies suing over the National Marine Fisheries Service’s industry-funded monitoring programs for the Atlantic herring fishery. The rule requires fishers to pay for federal inspections, to which they object. Lower courts relied on Chevron to uphold the payment requirement. In both cases, the Supreme Court agreed to hear only the question related to deference to agencies.
The Supreme Court’s decision in the Loper Bright and Relentless, Inc. cases could substantially impact the power currently exercised by federal administrative agencies. Even if the Supreme Court doesn’t overrule Chevron, its impact could be substantially weakened. As the law now stands, agencies are entitled to deference if a statute is “ambiguous” or “silent,” but the Supreme Court could reinterpret those words to limit agency power. Or the Court might expand the so-called major questions doctrine, a judicially created rule that agencies should not decide issues of significant national importance unless clearly authorized by Congress.
Normally, the Supreme Court would have put Relentless, Inc. on hold until it rules on Loper Bright, but it instead took an unusual step and fast-tracked Relentless, Inc. to be heard the same day as Loper Bright, suggesting it may already have plans for the two agency-deference cases.
Sources
1. Amy Howe, Supreme Court will consider major case on power of federal regulatory agencies, SCOTUSBLOG (May 1, 2023), https://www.scotusblog.com/2023/05/supreme-court-will-consider-major-case-on-power-of-federal-regulatory-agencies/.
2. Amy Howe, Justices grant four new cases, including Chevron companion case, SCOTUSBLOG (Oct. 13, 2023), https://www.scotusblog.com/2023/10/justices-grant-four-new-cases-including-chevron-companion-case/#:~:text=Justices%20grant%20four%20new%20cases%2C%20including%20Chevron%20companion%20case,-By%20Amy%20Howe&text=The%20Supreme%20Court%20has%20added,for%20the%202023%2D24%20term.
3. Loper Bright Enter., Inc. v. Raimondo, 45 F.4th 359 (D.C. Cir. 2022), cert. granted in part sub nom. Loper Bright Enter., Inc. v. Raimondo, 143 S. Ct. 2429 (2023).
4. Loper Bright Enterprises v. Raimondo, SCOTUSBLOG, https://www.scotusblog.com/case-files/cases/loper-bright-enterprises-v-raimondo/ (U.S. Supreme Court Docket No. 22-451).
5. Relentless, Inc. v. U.S. Dept. of Com., 62 F.4th 621 (1st Cir. 2023), cert. granted in part sub nom. Relentless, Inc. v. Dept. of Com., 144 S. Ct. 325 (2023).
6. Relentless, Inc. v. Department of Commerce, SCOTUSBLOG, https://www.scotusblog.com/case-files/cases/relentless-inc-v-department-of-commerce/ (U.S. Supreme Court Docket No. 22-1219).
