A memorandum from the EPA Administrator to his senior staff. I don't know who made it public (I read it on the Powerline Blog), but it talks about ending a practice known as "sue and settle" where special interest groups and the EPA have worked to bypass public participation and Congressional oversight in rule making. I am sure some who have supported this process will be concerned and perhaps outraged, but for me this what "open government" should be about. We should not be formulating policies and regulations behind the closed doors when the law requires something else.
I am not sure how long with will survive beyond the current administrator, but it is a refreshing piece of common sense.
p.s. This memo has been altered only for formatting, all the footnotes were included in the original.
TO: Assistant Administrators
Regional Administrators
Office of General Counsel
FROM: E. Scott Pruitt
Administrator
DATE: October 16, 2017
SUBJECT: Adhering to the Fundamental Principles of Due
Process, Rule of Law, and Cooperative Federalism in Consent Decrees and
Settlement Agreements
In the past, the
U.S. Environmental Protection Agency has sought to resolve litigation through
consent decrees and settlement agreements that appear to be the result of
collusion with outside groups. Behind closed doors, EPA and the outside
groups agreed that EPA would take an action with a certain end in mind,
relinquishing some of its discretion over the Agency's priorities and duties
and handing them over to special interests and the courts. When negotiating these agreements, EPA
excluded intervenors, interested stakeholders, and affected states from those
discussions. Some of these agreements
even reduced Congress's ability to influence policy. The days of this
regulation through litigation are terminated.
"Sue and
settle," as this tactic has been called, undermines the fundamental
principles of government that I outlined on my first day: (1) the importance of process, (2) adherence
to the rule of law, and (3) the applicability of cooperative federalism. The process by which EPA adopts regulations
sends an important message to the public:
EPA values the comments that it receives from the public and strives to
make informed decisions on regulations that impact the lives and livelihoods of
the American people. The rule of law
requires EPA to act only within the confines of the statutory authority that
Congress has conferred to the Agency, and thereby avoid the uncertainty of
litigation and ultimately achieve better outcomes. Finally, EPA must honor the vital role of the
states in protecting the public health and welfare under the principle of
cooperative federalism as prescribed by the Constitution and statutory mandate.
* * *
This memorandum
explains the sue-and-settle directive that I established within the Agency and
also describes how the past practice of regulation through litigation has
harmed the American public.
Regulation Through
Litigation Violates Due Process, the Rule of Law, and Cooperative Federalism
When an agency
promulgates a new regulation or issues a decision, the agency should take that
action consistent with the processes and substantive authority that the law
permits. An agency, therefore, should
ordinarily zealously defend its action when facing a lawsuit challenging that
action. If an agency agrees to resolve
that litigation through a consent decree or settlement agreement, however,
questions will necessarily arise about the propriety of the government's
determination not to defend the underlying regulation or decision. Indeed, sue and settle has been adopted to
resolve lawsuits through consent decrees in a way that bound the agency to
judicially enforceable actions and timelines that curtailed careful agency
consideration. This violates due
process, the rule of law, and cooperative federalism.
A. The Importance
of Process
EPA risks bypassing
the transparency and due process safeguards enshrined in the Administrative
Procedure Act
and other statutes
when it uses a consent decree or a settlement agreement to bind the Agency to
proceed with a rulemaking with a certain end in mind on a schedule negotiated
with the litigants. Congress enacted the
Administrative Procedure Act to provide the American public with notice of a
potential agency action, to encourage public participation in the rulemaking
process, and to afford federal agencies with the framework to perform careful
consideration of all the associated issues before taking final agency
action. Following the legal processes
for agency action provides predictability for all stakeholders, ensures that
the agency will receive input from all interested parties, and increases the
defensibility of an action when facing a procedural challenge.
A sue-and-settle
agreement, however, undermines these safeguards. Using this tactic, the agency and the party
that filed the legal challenge agree in principle on the terms of a consent
decree or settlement before the public has the opportunity to review the terms
of the agreement.
An agency can also use consent decrees and settlement agreements as an end-run
around certain procedural protections of the rulemaking process. Even when an agency attempts to comply with
these procedural safeguards, the agency typically agrees to an expedited
rulemaking process that can inhibit meaningful public participation. This rushed rulemaking process can lead to
technical errors by the agency, insufficient time for stakeholders to submit
rigorous studies that assess the proposal, the inability of the agency to
provide meaningful consideration of all the evidence submitted to the agency, a
lack of time for the agency to reconsider its initial proposal and issue a
revised version, and the failure to take into account the full range of
potential issues related to the proposed rule.
Sue and settle,
therefore, interferes with the rights of the American people to provide their
views on proposed regulatory decisions and have the agency thoughtfully
consider those views before making a final decision. By using sue and settle to avoid the normal
rulemaking processes and protections, an agency empowers special-interests at
the expense of the public and parties that could have used their powers of
persuasion to convince the agency to take an alternative action that could
better serve the American people.
B. Adherence to the
Rule of Law
As an agency in the
executive branch of the United States, EPA must faithfully administer the laws
of the land and take actions that are tethered to the governing statutes. The authority that Congress has granted to
EPA is our only authority. EPA must
respect the rule of law. The Agency must
strive to meet the directives and deadlines that Congress set forth in our
governing environmental statutes. But we
must not surrender the powers that we receive from Congress to another branch
of government - lest we risk upsetting the balance of powers that our founders
enshrined in the Constitution. Sue and settle disrespects
the rule of law and improperly elevates the powers of the federal judiciary to
the detriment of the executive and legislative branches.
In the past,
outside groups have sued EPA for failing to act by a deadline prescribed under
the law. EPA would then sign a consent
decree agreeing to take a particular action ahead of other Agency actions that the
public and other public officials considered to be higher priorities. We should not readily cede our authority and
discretion by letting the federal judiciary dictate the priorities of the
Administration and the Agency.
Taken to its
extreme, the sue-and-settle strategy can allow executive branch officials to
avoid political accountability by voluntarily yielding their discretionary
authority to the courts, thereby insulating agency officials from criticisms of
unpopular actions. Equally troubling, sue
and settle can deprive Congress of its ability to influence agency policy
through oversight and the power of the purse.
Sue-and-settle agreements can also prevent subsequent administrations
from modifying a particular policy priority, approach, or timeline. The founders of our nation did not envision
such an imbalance of power among the federal branches of government.
EPA must always
respect the rule of law and defend the prerogatives of its separate
powers. EPA, therefore, shall avoid
inappropriately limiting the discretion that Congress authorized the Agency,
abide by the procedural safeguards enumerated in the law, and resist the
temptation to reduce the amount of time necessary for careful Agency action.
C. Embracing
Cooperative Federalism
Many environmental
statutes empower the states to serve as stewards of their lands and
environments.
Embracing federalism, EPA can work cooperatively with states to encourage
regulations instead of compelling them and to respect the separation of powers. Past sue-and-settle tactics, however,
undermined this principle of cooperative federalism by excluding the states
from meaningfully participating in procedural and substantive Agency actions.
When considering a
consent decree or settlement agreement to end litigation against the Agency,
EPA should welcome the participation of the affected states and tribes,
regulated communities, and other interested stakeholders. This should include engagement even before
lodging the decree or agreement, where appropriate. These additional participants to the
negotiations can voice their concerns that the agreed-upon deadlines will be
reasonable and fair, permitting adequate time for meaningful public
participation and thoughtful Agency consideration of comments received. EPA must also seek to collaborate with the
states and remain flexible when ensuring compliance with environmental
protections.
Conclusion
By emphasizing the
importance of process, adhering to the rule of law, and embracing cooperative
federalism, EPA increases the quality of, and public confidence in, its
regulations. Through transparency and
public participation, EPA can reassure the American public that the rules that
apply to them have been deliberated upon and determined in a forum open to all. Finally, the federal government must continue
to improve engagement with the states, tribes, interested stakeholders, and
regulated communities, especially when resolving litigation. The steps outlined in my directive today will
help us achieve these noble goals and continue to improve us as an Agency.
Pursuant to the Administrative Procedure
Act, an agency must publish a general notice of proposed rulemaking in the
Federal Register and include the following information: "(1) a statement of the time, place, and
nature of public rulemaking proceedings; (2) reference to the legal authority
under which the rule is proposed; and (3) either the terms or substance of the
proposed rule or a description of the subjects and issues involved." 5
U.S.C. SS 553(b). Additionally, the
agency "shall give interested persons an opportunity to participate in the
rulemaking through a submission of written data, views, or arguments with or
without opportunity for oral presentation." Id. SS 553(c).
In The Federalist Number 47, James Madison wrote: One of the principal objections inculcated
by the more respectable adversaries to the constitution, is its supposed
violation of the political maxim, that the legislative, executive and judiciary
departments ought to be separate and distinct.
In the structure of the federal government, no regard, it is said, seems
to have been paid to this essential precaution in favor of liberty. The several departments of power are
distributed and blended in such a manner, as at once to destroy all symmetry
and beauty of form; and to expose some of the essential parts of the edifice to
the danger of being crushed by the disproportionate weight of other parts. No
political truth is certainly of greater intrinsic value or is stamped with the
authority of more enlightened patrons of liberty than that on which the
objection is founded. The accumulation
of all powers legislative, executive and judiciary in the same hands, whether
of one, a few or many, and whether hereditary, self appointed, or elective, may
justly be pronounced the very definition of tyranny. Were the federal constitution therefore
really chargeable with this accumulation of power or with a mixture of powers
having a dangerous tendency to such an accumulation, no further arguments would
be necessary to inspire a universal reprobation of the system. I persuade myself however, that it will be
made apparent to every one, that the charge cannot be supported, and that the
maxim on which it relies, has been totally misconceived and misapplied. In order to form correct ideas on this
important subject, it will be proper to investigate the sense, in which the
preservation of liberty requires, that the three great departments of power
should be separate and distinct. The Federalist No. 47 (James Madison)
(emphasis added).