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Chevron Gets the Headlines, But State Farm May Be More Important

This post was originally published on Legal Planet. Reprinted with permission.

The Chevron doctrine requires judges to defer to an agency’s interpretation of a statute if that interpretation is reasonable. The State Farm case, which is much less widely known, requires courts to defer to an agency’s expert judgment unless its reasoning has ignored contrary evidence or has a logical hole. As you probably already know, two cases now before the Court will probably result in abandoning or revamping Chevron. But the “abortion pill” case that will be argued today will test the Court’s adherence to State Farm. Will the conservative justices stand by State Farm even when doing so expands access to abortion?

Unlike Chevron, Motor Vehicle Manufacturers v. State Farm (to give the full name) is known only to experts in administrative law. The case involved a deregulatory action by former President Reagan’s Department of Transportation (DOT). DOT had rolled back a Carter administration rule requiring new cars to have airbags or automatic seatbelts. The rationale for the rollback was that the carmakers planned to comply by using a kind of automatic seatbelt that drivers could easily disable. The Court struck down the rollback because the agency had completely failed to consider two obvious alternatives: mandating airbags or at least mandating automatic seatbelt designs that couldn’t be disabled. In other words, there were gaping holes in DOT’s reasoning.

The crux of State Farm is that “the agency must explain the evidence which is available” and “must offer a ‘rational connection between the facts found and the choice made.’” Or in other words, the Court said, an agency rule is “arbitrary and capricious” only if the agency has:

  1. “Relied on factors which Congress has not intended it to consider,”
  2. “Entirely failed to consider an important aspect of the problem,”
  3. “Offered an explanation for its decision that runs counter to the evidence before the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise.”

What this comes down to is that the Court cannot second guess the agency’s judgment if the agency has a reasoned explanation for its decision.

That brings us to the case now before the Court, which involves the U.S. Food and Drug Administration’s (FDA) decision to allow at-home use and access to abortion pills by mail. The Fifth Circuit overturned FDA’s finding that the pills’ use under those conditions was “safe and effective.” The decision is an exercise in nitpicking. For instance, it faulted the agency for removing several restrictions, which FDA based on evidence that none of the restrictions individually was necessary for safety.

According to the Fifth Circuit, FDA failed to point to studies showing what would happen if multiple restrictions were all removed at the same time. This seems to be inaccurate — FDA did cite studies involving elimination of multiple restrictions — and also unrealistic, because studies are unlikely to track the precise combination of circumstances that an agency is considering. The Fifth Circuit also faulted FDA for relying on reports of adverse effects from manufacturers (rather than doctors) as a safeguard, but this is standard for drugs generally.

The Court is likely to either hold that the anti-abortion doctors who brought the case lack standing, or else uphold FDA’s decision. But if the Supreme Court affirms the Fifth Circuit, it will send a strong signal that courts need not defer to agency expertise, at least in cases where the judges have strong policy views.

Such a ruling probably would not overrule State Farm. Instead, it would twist State Farm into a license to nitpick agency decisions to death, requiring agencies to provide bulletproof justifications for their actions and eliminate any possible source of doubt. That would be a much more serious blow to government regulation than overruling Chevron because regulators make controversial decisions about statutory interpretation infrequently but always engage in expert judgment.

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Daniel Farber | March 26, 2024

Chevron Gets the Headlines, But State Farm May Be More Important

The Chevron doctrine requires judges to defer to an agency’s interpretation of a statute if that interpretation is reasonable. The State Farm case, which is much less widely known, requires courts to defer to an agency’s expert judgment unless its reasoning has ignored contrary evidence or has a logical hole. As you probably already know, two cases now before the Court will probably result in abandoning or revamping Chevron. But the “abortion pill” case that will be argued today will test the Court’s adherence to State Farm. Will the conservative Justices stand by State Farm even when doing so expands access to abortion?

Federico Holm | March 25, 2024

What Three Ohio Counties Can Tell Us About a Major Obstacle to Our Clean Energy Future

My colleagues at the Center for Progressive Reform and I recently published a report and interactive map examining how local ordinances that restrict clean energy development can impose major obstacles in our efforts toward a just clean energy transition. Among the many important findings in our report, we highlighted the high degree of variability that exists between states in the way large-scale clean energy generation is regulated. In some cases, like Illinois and Michigan, governments have empowered state authorities to override local siting measures; other states have given local governments more decision-making powers to decide if and how renewable infrastructure can be built. Among the latter is Ohio.

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Victor Flatt | March 14, 2024

Op-ed: Whether the Government Requires It or Not, Greenhouse Gas Disclosures Are Here to Stay 

Last week, the U.S. Securities and Exchange Commission (SEC) released its long-awaited final rule requiring publicly traded companies to report certain climate risks and greenhouse gas emissions as part of their financial risk disclosures.

James Goodwin | March 5, 2024

The Ideological Warfare Behind the Attack on Chevron Deference: Part 3

As discussed in yesterday’s post, the contemporary conservative movement is prepared to use legal battles over esoteric administrative law doctrines, such as Chevron deference, as a tool of ideological warfare. Importantly, though, these battles present progressives with a great opportunity to engage at the ideological level as well. After all, progressives have been busy developing their own competing vision of what our constitutional democracy should look like. They should seize the opportunity presented by the fight over Chevron deference’s future to articulate and advance that vision.

James Goodwin | March 4, 2024

The Ideological Warfare Behind the Attack on Chevron Deference: Part 2

In Part 1 of this three-part series, I introduced the rapidly boiling legal battle over a once-obscure administrative law doctrine known as Chevron deference. Much of the commentary to this point has focused on the political motivations behind the conservative attack on Chevron deference. In this second post, I will take a closer look at how conservatives have carefully crafted this battle (and their broader war on the administrative state) to promote their distinctive brand of ideological thought.

James Goodwin | March 4, 2024

The Ideological Warfare Behind the Attack on Chevron Deference: Part 1

In January, the U.S. Supreme Court heard oral arguments in a pair of related cases — Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce — which could be among the most consequential decisions for U.S. democracy that the Court has ever issued. That’s because the cases urge the Court to overturn a longstanding judicial doctrine called Chevron deference. Over the last 40 years, that doctrine has provided a practical framework for mediating the growing separation-of-powers fights among the three branches for control over administrative agencies, with the preservation of the administrative state’s essential democratic foundation as its guiding star.

Robert Fischman | February 29, 2024

A Proposal to Leverage More Conservation Benefits from National Wildlife Refuges

How should the United States manage the largest biodiversity conservation system to be greater than the sum of its parts? This vexing question for the national wildlife refuges has received scant attention for the past quarter century. Now the U.S. Fish & Wildlife Service (Service), which administers the refuge system, has proposed a rule to guide specific refuge decisions to ensure they contribute to a national network rather than incrementally fray the web of conservation.

Federico Holm | February 28, 2024

New Report and Interactive Map: Communities Left Behind: How Local Ordinances Can Obstruct Energy Democracy and a Just Transition

A profound energy transition is sweeping the United States. In addition to mitigating dangerous greenhouse gas emissions that contribute to climate change, it means new economic opportunities and a safer and healthier environment for communities across the country. A better future is certainly within reach, or at least it is for some communities, which are the ones that will be able to capitalize on the green transition. But for many others, there is no guarantee that this clean energy transition will be a just and equitable one. Why is this the case? As we explore in a new report and interactive map, it turns out that one of the biggest obstacles is self-inflicted: local ordinances that restrict new renewable energy development projects, including wind, solar, and battery storage.

Federico Holm | February 22, 2024

Fine Particle Pollution: Unevenly Distributed, Driven by Heavy Traffic, and Supercharged by E-commerce

On February 7, the U.S. Environmental Protection Agency (EPA) finalized new and stronger air quality standards for fine particle pollution (commonly known as soot), a harmful pollutant and byproduct of burning coal, manufacturing, oil refining, and motor vehicles. Soot is one of the nation’s most dangerous air pollutants, and one of the most widespread, though it disproportionately impacts the health of structurally marginalized communities. Multiple reports have found that people living within half a mile of warehouses have higher rates of asthma and heart attacks than residents in the area overall, increased risk of cancer, and nervous system effects.