Rulemaking
Part II
Non-APA Requirements
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APA is only the default if there is no other
statutory guidance
National Environmental Policy Act imposes
requirements if the rule affects the environment
Regulatory Flexibility Act - small business
Executive Order 12866 - more $100M impact
The book calls these hybrid rulemaking, do no
confuse this with court imposed hybrid
rulemaking as in Vermont Yankee
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Beginning Rule Making
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Why was the court willing to order the agency to
make a rule in the Regulators?
Why do agencies often fail to follow
congressional direction to make rules?
What is a request for a rulemaking and what does
it force the agency to do?
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Jargon Alert
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Legislative rule (regulation)
 Has the effect of law
 Generally just called a rule or regulation
Non-Legislative rule
 Has no legal effect, but shows what the agency thinks
the law is
 Many names - interpretive rule, guidelines, guidance
document, anything but rule or regulation
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553(b) - Exceptions to Notice
Requirements
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1) Interpretative rules, general statements of
policy, and rules of agency organization,
procedure, and practice; and
2) Rules when the agency finds for good cause
that notice and public procedure are
impracticable, unnecessary, or contrary to the
public interest.
No notice means no comment under 553(c)
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Exception 1 - Interpretative Rules
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It is only explaining the law or providing
guidance for action
 Prosecution guidelines
 IRS audit guidelines
Since they do not change the law, they have
no legal effect
 Does that mean you can ignore them?
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How do you know if it an Interpretive Rule
or a Legislative Rule?
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Why would an agency want to use an interpretive
rule rather than a legislative rule?
 What is the risk to the agency if they do and the
court disagrees?
What is the benefit to the regulated parties of
interpretive rules?
 What if the agency is prevented from providing
guidance documents?
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The Nature of the Enabling Act
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Very general laws
 Little effective guidance in the statute
 Makes any interpretative rule more likely to
been seen as a legislative rule
Very specific laws - like the ADA
 No room for legislative rules
 Everything is guideline
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EPA Example - Wetlands
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EPA makes a rule that states that the term “waters
of the United States” (which defines the
jurisdiction of EPA under the Clean Water Act)
includes wetlands that potentially provide habitat
to migratory birds.
Is this an interpretative rule or a legislative rule?
Can we tell just looking at the rule?
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What Do We Need to Know?
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Will the agency say that the rule is binding?
The substantial impact test
 How might this rule affect the buyers of
wetlands?
 Is this a substantial impact?
What is the agency's defense?
Is the substantial impact test circular?
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The “Legally Binding” or “Force of Law”
Test
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What is the enforcement test?
What do we need to know to tell whether the agency can
enforce the law without this rule?
 Is the agency required to define wetlands?
 Was the agency doing enforcement before this rule?
Under this test, is this an interpretative rule?
What if statute allows the agency to define toxic
substances that cannot be dumped into lakes?
 Would a list of these substances be legislative?
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General Policy or Specific Requirements?
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Remember, 553(b) does not require notice and comment
for general policy statements
Assume the statute says that in licensing actions, a
physician must reply to agency request for information in
a reasonable time.
 Would a requirement that this be in 7 days be a policy
statement or a rule?
 Why does the inclusion of specific factual information
undermine the claim that it is a general policy
statement?
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How High do I Build the Fence?
Hoctor v. USDA, 82 F.3d 165 (7th Cir. 1996)
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Statute requires the agency to adopt rules for the safe
housing of dangerous animals
 Agency use notice and comment to promulgate a rule
requiring that reasonable precautions be taken to
prevent the escape of the animals
 Agency then issues guidance saying that a reasonable
precaution would be an 8 foot fence
Interpretation or legislation?
 How could the agency enforce the provision without
the height rule?
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Junk in the Park: United States v.
Picciotto, 875 F.2d 345 (D.C. Cir. 1989)
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Can the agency use notice and comment to
promulgate a legislative rule that says that the
agency can add other requirements in specific
situations without notice and comment?
 Why or why not?
What if the rule just says that nothing can be
brought to the park that would be disruptive or
impede public access?
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Consistency, the Hobgoblin of
Interpretative Rules
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What is the result if an interpretative rule is inconsistent
with a legislative rule?
 Using an interpretative rule to change a calculation
established by a rule
Some courts also find that an interpretative rule cannot
be changed with a subsequent interpretative rule, but can
only be modified by a legislative rule
 Why is logically inconsistent?
 This is not widespread in the courts
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Other Factors
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Publication in the FR
 Must interpretative rules be published in the
FR?
 What does failure to publish indicate?
 Does this make sense?
Is it important that the agency clearly label the
rule as interpretative?
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Federal Mine Safety and Health Act
Example
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Secretary has the statutory right to sue both the
mine owner and the mine operator for violations
of the Act.
Secretary publishes a policy statement explaining
that the agency can and will sue both of them for
infractions, depending on the nature of the
infraction.
 Does this require notice and comment?
 Why?
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Corps of Engineers Example
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Corps issues a guidance document saying that
one way to qualify for a wet lands development
certificate is to promise to restore 2X as much wet
land as you fill
 Does this need notice and comment?
 Why?
What if the Corps will only issue permits to people
who agree to this?
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Coercion: Chamber of Commerce v. U.S. Dept.
of Labor, 174 F.3d 206 (D.C. Cir. 1999)
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DOL made a policy statement that it would reduce
inspections of workplaces that adopted an OSHA
suggested safety plan that exceeded federal
minimums
 Is this really voluntary?
 Does this coercion make this a binding rule?
What about DOJ guidance that a corporate
compliance plan will count as mitigation under the
Sentencing Guidelines?
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How does the Agency Treat the Rules?
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Assume the agency says the statement is only an
enforcement guideline
What if the employees doing the enforcement
always follow the guideline?
 Does this change its legal status?
What position do these decision on guidance put
the agency in when the regulated parties or the
public asks what the guidelines mean?
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Can Interpretative Guidance be
Retroactive?
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Why does the ban on retroactive rules not apply
to interpretive rules?
How is this like the court system when a judge
finds a new tort cause of action?
Could congress create an exception to the APA
and allow a retrospective rule?
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Procedural Rules
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Procedural rules are exempt from notice and comment
 The form of an application for benefits is procedural
 The facts that the claimant has to establish to get the
benefits are substantive
A procedural rule can become substantive if the change
in procedure has a substantial impact on the regulated
parties.
 Procedural change for submitting bills by home health
providers imposed a huge logistic and financial cost.
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OSHA Guidance for Targeting and
Carrying out Inspections
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Being inspected does have a substantial impact
on the employer
Does this guidance document require notice and
comment?
 Does it change the legal rights of the
employers?
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When Notice and Comment Procedures Are
Impracticable, Unnecessary, or Contrary to the
Public Interest
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What is an interim final rules?
What is a direct final rule
When are these allowed?
What are some examples?
Did we see these after Katrina?
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