2 The Administrative Procedure Act and the Administrative Process 2 The Administrative Procedure Act and the Administrative Process

2.1 What Is (And Is Not) An Agency? 2.1 What Is (And Is Not) An Agency?

A threshold question as we begin our study of the APA is what counts as an agency. This is important for a number of reasons which will become apparent. Most importantly, status as an "agency" is necessary for the APA to apply at all. But, despite the importance of the question, it is often a difficult one to answer. As the first edition of the ACUS Sourcebook on Executive Agencies noted, "there has been a substantial amount of litigation over which government entities fall within the APA's purview," and “what constitutes an agency under the APA is governed on a case-by-case basis through litigation." Jennifer L. Selin & David E. Lewis, ACUS: Sourcebook of United States Executive Agencies (2012). For this reason, nobody agrees on exactly how many executive agencies exist: as of 2012, estimates ranged from "78 independent executive agencies and 174 components of executive departments" to "137 independent executive agencies and 268 units in the Cabinet." Id. New entities are created all the time by the government, or even by the private sector or state governments, and these entities inevitably raise new questions about whether they should be bound by the APA.

 

2.1.1 Definitions 2.1.1 Definitions

For the purpose of this subchapter—

(1) "agency" means each authority of the Government of the United States, whether or not it is within or subject to review by another agency, but does not include—

(A) the Congress;

(B) the courts of the United States;

(C) the governments of the territories or possessions of the United States;

(D) the government of the District of Columbia;


or except as to the requirements of section 552 of this title—

(E) agencies composed of representatives of the parties or of representatives of organizations of the parties to the disputes determined by them;

(F) courts martial and military commissions;

(G) military authority exercised in the field in time of war or in occupied territory; or

(H) functions conferred by sections 1738, 1739, 1743, and 1744 of title 12; subchapter II of chapter 471 of title 49; or sections 1884, 1891–1902, and former section 1641(b)(2), of title 50, appendix; 1


(2) "person" includes an individual, partnership, corporation, association, or public or private organization other than an agency;

(3) "party" includes a person or agency named or admitted as a party, or properly seeking and entitled as of right to be admitted as a party, in an agency proceeding, and a person or agency admitted by an agency as a party for limited purposes;

(4) "rule" means the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency and includes the approval or prescription for the future of rates, wages, corporate or financial structures or reorganizations thereof, prices, facilities, appliances, services or allowances therefor or of valuations, costs, or accounting, or practices bearing on any of the foregoing;

(5) "rule making" means agency process for formulating, amending, or repealing a rule;

(6) "order" means the whole or a part of a final disposition, whether affirmative, negative, injunctive, or declaratory in form, of an agency in a matter other than rule making but including licensing;

(7) "adjudication" means agency process for the formulation of an order;

(8) "license" includes the whole or a part of an agency permit, certificate, approval, registration, charter, membership, statutory exemption or other form of permission;

(9) "licensing" includes agency process respecting the grant, renewal, denial, revocation, suspension, annulment, withdrawal, limitation, amendment, modification, or conditioning of a license;

(10) "sanction" includes the whole or a part of an agency—

(A) prohibition, requirement, limitation, or other condition affecting the freedom of a person;

(B) withholding of relief;

(C) imposition of penalty or fine;

(D) destruction, taking, seizure, or withholding of property;

(E) assessment of damages, reimbursement, restitution, compensation, costs, charges, or fees;

(F) requirement, revocation, or suspension of a license; or

(G) taking other compulsory or restrictive action;


(11) "relief" includes the whole or a part of an agency—

(A) grant of money, assistance, license, authority, exemption, exception, privilege, or remedy;

(B) recognition of a claim, right, immunity, privilege, exemption, or exception; or

(C) taking of other action on the application or petition of, and beneficial to, a person;


(12) "agency proceeding" means an agency process as defined by paragraphs (5), (7), and (9) of this section;

(13) "agency action" includes the whole or a part of an agency rule, order, license, sanction, relief, or the equivalent or denial thereof, or failure to act; and

(14) "ex parte communication" means an oral or written communication not on the public record with respect to which reasonable prior notice to all parties is not given, but it shall not include requests for status reports on any matter or proceeding covered by this subchapter.

Notes

Historical and Revision Notes
DerivationU.S. CodeRevised Statutes and

Statutes at Large

(1) 5 U.S.C. 1001(a). June 11, 1946, ch. 324, §2(a), 60 Stat. 237.
  Aug. 8, 1946, ch. 870, §302, 60 Stat. 918.
  Aug. 10, 1946, ch. 951, §601, 60 Stat. 993.
  Mar. 31, 1947, ch. 30, §6(a), 61 Stat. 37.
  June 30, 1947, ch. 163, §210, 61 Stat. 201.
  Mar. 30, 1948, ch. 161, §301, 62 Stat. 99.
(2)–(13) 5 U.S.C. 1001 (less (a)). June 11, 1946, ch. 324, §2 (less (a)), 60 Stat. 237.

In paragraph (1), the sentence "Nothing in this Act shall be construed to repeal delegations of authority as provided by law," is omitted as surplusage since there is nothing in the Act which could reasonably be so construed.

In paragraph (1)(G), the words "or naval" are omitted as included in "military".

In paragraph (1)(H), the words "functions which by law expire on the termination of present hostilities, within any fixed period thereafter, or before July 1, 1947" are omitted as executed. Reference to the "Selective Training and Service Act of 1940" is omitted as that Act expired Mar. 31, 1947. Reference to the "Sugar Control Extension Act of 1947" is omitted as that Act expired on Mar. 31, 1948. References to the "Housing and Rent Act of 1947, as amended" and the "Veterans' Emergency Housing Act of 1946" have been consolidated as they are related. The reference to former section 1641(b)(2) of title 50, appendix, is retained notwithstanding its repeal by §111(a)(1) of the Act of Sept. 21, 1961, Pub. L. 87–256, 75 Stat. 538, since §111(c) of the Act provides that a reference in other Acts to a provision of law repealed by §111(a) shall be considered to be a reference to the appropriate provisions of Pub. L. 87–256.

In paragraph (2), the words "of any character" are omitted as surplusage.

In paragraph (3), the words "and a person or agency admitted by an agency as a party for limited purposes" are substituted for "but nothing herein shall be construed to prevent an agency from admitting any person or agency as a party for limited purposes".

In paragraph (9), a comma is supplied between the words "limitation" and "amendment" to correct an editorial error of omission.

In paragraph (10)(C), the words "of any form" are omitted as surplusage.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

References in Text

Sections 1884 and 1891–1902 of title 50, appendix, referred to in par. (1)(H), were a part of the various Housing and Rent Acts which were classified to section 1881 et seq. of the former Appendix to Title 50, War and National Defense, and had been repealed or omitted from the Code as executed prior to the elimination of the Appendix to Title 50. See Elimination of Title 50, Appendix note preceding section 1 of Title 50. Section 1641 of title 50, appendix, referred to in par. (1)(H), was repealed by Pub. L. 87–256, §111(a)(1), Sept. 21, 1961, 75 Stat. 538. See Historical and Revision Note above.

Codification

Section 551 of former Title 5, Executive Departments and Government Officers and Employees, was transferred to section 2242 of Title 7, Agriculture.

Amendments

2011—Par. (1)(H). Pub. L. 111–350 struck out "chapter 2 of title 41;" after "title 12;".

1994—Par. (1)(H). Pub. L. 103–272 substituted "subchapter II of chapter 471 of title 49; or sections" for "or sections 1622,".

1976—Par. (14). Pub. L. 94–409 added par. (14).

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–409 effective 180 days after Sept. 13, 1976, see section 6 of Pub. L. 94–409, set out as an Effective Date note under section 552b of this title.

Study and Reports on Administrative Subpoenas

Pub. L. 106–544, §7, Dec. 19, 2000, 114 Stat. 2719, provided that:

"(a) Study on Use of Administrative Subpoenas.—Not later than December 31, 2001, the Attorney General, in consultation with the Secretary of the Treasury, shall complete a study on the use of administrative subpoena power by executive branch agencies or entities and shall report the findings to the Committees on the Judiciary of the Senate and the House of Representatives. Such report shall include—

"(1) a description of the sources of administrative subpoena power and the scope of such subpoena power within executive branch agencies;

"(2) a description of applicable subpoena enforcement mechanisms;

"(3) a description of any notification provisions and any other provisions relating to safeguarding privacy interests;

"(4) a description of the standards governing the issuance of administrative subpoenas; and

"(5) recommendations from the Attorney General regarding necessary steps to ensure that administrative subpoena power is used and enforced consistently and fairly by executive branch agencies.

"(b) Report on Frequency of Use of Administrative Subpoenas.—

"(1) In general.—The Attorney General and the Secretary of the Treasury shall report in January of each year to the Committees on the Judiciary of the Senate and the House of Representatives on the number of administrative subpoenas issued by them under this section and the identity of the agency or component of the Department of Justice or the Department of the Treasury issuing the subpoena and imposing the charges.

"(2) Expiration.—The reporting requirement of this subsection shall terminate in 3 years after the date of the enactment of this section [Dec. 19, 2000]."

2.1.2 Franklin v. Massachusetts 2.1.2 Franklin v. Massachusetts

One of the most fundamental questions about the definition of an "agency" in the APA is whether the President of the United States (POTUS, for short), counts as an agency. Imagine if the President had to comply with administrative law, including requirements to take into consideration public comment before making a decision. Pretty far-fetched, right? In the following case, the Supreme Court avoided tricky separation of powers questions that might arise if Congress could, through laws like the APA, bind the president to certain decisionmaking procedures.

While the Franklin decision is canonical, it is not without its critics. Most recently, Kathryn Kovacs has argued that Franklin is flat out wrong. See Kathryn E. Kovacs, Constraining the Statutory President, 98 Wash. U. L. Rev. 63 (2020). What reasons can you think of that might have justified going this alternative route and subjecting the President to the APA? Would such an inclusive definition of "agency" under the APA be workable? Does it matter that, in almost every case, the President must rely on agencies that are subject to the APA in order to carry out executive decisions?

FRANKLIN, SECRETARY OF COMMERCE, et al. v. MASSACHUSETTS et al.

No. 91-1502.

Argued April 21, 1992

Decided June 26, 1992

*789O’Connor, J., announced the judgment of the Court and delivered the opinion of the Court with respect to Parts I and II, in which Rehnquist, C. J., and White, Scalia, and Thomas, JJ., joined, the opinion of the Court with respect to Part IV, in which Rehnquist, C. J., and White, Blackmun, Stevens, Kennedy, Souter, and Thomas, JJ., joined, and an opinion with respect to Part III, in which Rehnquist, C. J., and White *790and Thomas, JJ., joined. Stevens, J., filed an opinion concurring in part and concurring in the judgment, in which Blackmun, Kennedy, and Sou-TEK, JJ., joined, post, p. 807. Scalia, J., filed an opinion concurring in part and concurring in the judgment, post, p. 823.

Deputy Solicitor General Roberts argued the cause for appellants. With him on the briefs were Solicitor General Starr, Assistant Attorney General Gerson, Edwin S. Kneed-ler, Michael Jay Singer, and Mark B. Stern.

Dwight Golann, Assistant Attorney General of Massachusetts, argued the cause for appellees. With him on the briefs were Scott Harshbarger, Attorney General, Steve Ber-enson, Assistant Attorney General, and John P. Driscoll, Jr., Edward P. Leibensperger, and Neil P. Motenko, Special Assistant Attorneys General.*

Justice O’Connor

delivered the opinion of the Court, except as to Part III.

As one season follows another, the decennial census has again generated a number of reapportionment controversies. This decade, as a result of the 1990 census and reapportionment, Massachusetts lost a seat in the House of Representatives. Appellees Massachusetts and two of its registered voters brought this action against the President, the Secretary of Commerce (Secretary), Census Bureau officials, and the Clerk of the House of Representatives, challenging, among other things, the method used for counting federal employees serving overseas. In particular, the appellants’ allocation of 922,819 overseas military personnel to the State *791designated in their personnel files as their “home of record” altered the relative state populations enough to shift a Representative from Massachusetts to Washington. A three-judge panel of the United States District Court for the District of Massachusetts held that the decision to allocate military personnel serving overseas to their “homes of record” was arbitrary and capricious under the standards of the Administrative Procedure Act (APA), 5 U. S. C. § 701 et seq. As a remedy, the District Court directed the Secretary to eliminate the overseas federal employees from the apportionment counts, directed the President to recalculate the number of Representatives per State and transmit the new calculation to Congress, and directed the Clerk of the House of Representatives to inform the States of the change. The federal officials appealed. We noted probable jurisdiction, stayed the District Court’s order, and ordered expedited briefing and argument. 503 U. S. 442 (1992). We now reverse.

I

Article I, §2, cl. 3, of the Constitution provides that Representatives “shall be apportioned among the several States ... according to their respective Numbers,” which requires, by virtue of §2 of the Fourteenth Amendment, “counting the whole number of persons in each State.” The number of persons in each State is to be calculated by “actual Enumeration,” conducted every 10 years, “in such Manner as [Congress] shall by Law direct.” U. S. Const., Art. I, §2, cl. 3.

The delegates to the Constitutional Convention included the periodic census requirement in order to ensure that entrenched interests in Congress did not stall or thwart needed reapportionment. See 1M. Farrand, Records of the Federal Convention of 1787, pp. 571, 578-588 (rev. ed. 1966). Their effort was only partially successful, as the congressional battles over the method for calculating the reapportionment still caused delays. After just such a 10-year stalemate after the 1920 census, Congress reformed the reapportionment proc*792ess to make it virtually self-executing, so that the number of Representatives per State would be determined by the Secretary of Commerce and the President without any action by Congress. See S. Rep. No. 2, 71st Cong., 1st Sess., 2-3 (1929) (“The need for legislation of this type is confessed by the record of the past nine years during which Congress has refused to translate the 1920 census into a new apportionment. ... As a result, great American constituencies have been robbed of their rightful share of representation . . .”); Department of Commerce v. Montana, 503 U. S. 442, 451-452, and n. 25 (1992).

Under the automatic reapportionment statute, the Secretary of Commerce takes the census “in such form and content as [s]he may determine.” 13 U. S. C. § 141(a). The Secretary is permitted to delegate her authority for establishing census procedures to the Bureau of the Census. See §§ 2,4. “The tabulation of total population by States ... as required for the apportionment of Representatives in Congress . . . shall be compléted within 9 months after the census date and reported by the Secretary to the President of the United States.” § 141(b). After receiving the Secretary's report, the President “shall transmit to the Congress a statement showing the whole number of persons in each State ... as ascertained under the ... decennial census of the population, and the number of Representatives to which each State would be entitled under an apportionment of the then existing number of Representatives by the method known as the method of equal proportions 2 U. S. C. § 2a(a). “Each State shall be entitled ... to the number of Representatives shown” in the President’s statement, and the Clerk of the House of Representatives must “send to the executive of each State a certificate of the number of Representatives to which such State is entitled.” § 2a(b).

With the one-time exception in 1900 of counting overseas servicemen at their family home, the Census Bureau did not allocate federal personnel stationed overseas to particular *793States for reapportionment purposes until 1970. App. 175, 177. The 1970 census, taken during the Vietnam War, allocated members of the Armed Forces stationed overseas to their “home of record,” using Defense Department personnel records. Id., at 179. “Home of record” is the State declared by the person upon entry into military service, and determines where he or she will be moved after military service is complete. Id., at 149. Because the Bureau found that military personnel were likely to designate a “home of record” with low or no income taxes instead of their true home State — even though home of record does not determine state taxation — -the Bureau did not allocate overseas employees to particular States in the 1980 census. App. 180.

Initially, the Bureau took the position that overseas federal employees would not be included in the 1990 state enumerations either. There were, however, stirrings in Congress in favor of including overseas federal employees, especially overseas military, in the state population counts. Several bills requiring the Secretary to include overseas military were introduced but not passed in the 100th and 101st Congresses. See H. R. 3814, 100th Cong., 1st Sess. (1987); H. R. 4234, 100th Cong., 2d Sess. (1988); H. R. 3815, 100th Cong., 1st Sess. (1987); H. R. 4720, 100th Cong., 2d Sess. (1988); S. 2103,100th Cong., 2d Sess. (1988); H. R. 1468,101st Cong., 1st Sess. (1989); H. R. 2661, 101st Cong., 1st Sess. (1989); H. R. 3016,101st Cong., 1st Sess. (1989); S. 290,101st Cong., 1st Sess. (1989). In July 1989, nine months before the census taking was to begin, then-Secretary of Commerce Robert Mosbacher agreed to allocate overseas federal employees to their home States for purposes of congressional apportionment. App. 182. His decision memorandum cites both the growing congressional support for including overseas employees and the Department of Defense’s belief that “its employees should not be excluded from apportionment counts because of temporary and involuntary, residence overseas.” Id., at 120. Another factor explaining the Secre*794tary’s shift was that the Department of Defense, the largest federal overseas employer, planned to poll its employees to determine, among other things, which State they considered their permanent home. Id., at 184. In December 1989, however, the Defense Department canceled its plans to conduct the survey due to a lack of funds. Ibid. As an alternative, the Defense Department suggested that it could provide data on its employees’ last six months of residence in the United States, information that would be more complete and up-to-date than the home of record data already in the personnel files. This possibility also failed to materialize when the Defense Department informed the Census Bureau that it was not able to assemble the information after all. Ibid.

In the meantime, two more bills were introduced in Congress, but not passed, which would have required the Census Bureau to apportion members of the overseas military to their home States using the “home of record” data already in their personnel files. See H. R. 4903, 101st Cong., 2d Sess. (1990); S. 2675, 101st Cong., 2d Sess. (1990). In July 1990, six months before the census count was due to be reported to the President, the Census Bureau decided to allocate the Department of Defense’s overseas employees to the States based on their “home of record.” App. 185. It chose the home of record designation over other data available, including legal residence and last duty station, because home of record most closely resembled the Census Bureau’s standard measure of state affiliation — “usual residence.” 3 Record 925. Legal residence was thought less accurate because the choice of legal residence may have been affected by state taxation. Indeed, the Congressional Research Service found that in 1990 “the nine States with either no income taxes, or those which tax only interest and dividend income, have approximately 9 percent more of the overseas military personnel claiming the States for tax purposes, than those same States receive using home of record” Congressional *795Research Service Report, App. 151, n. 13. For similar reasons, last duty station was rejected because it would provide only a work address, and the employee’s last home address might have been in a different State, as with those, for example, who worked in the District of Columbia but lived in Virginia or Maryland. 3 Record 925. Residence at a “last duty station” may also have been of a very short duration and may not have reflected the more enduring tie of usual residence. App. 150. Those military personnel for whom home of record information was not available were allocated based on legal residence or last duty station, in that order. Id., at 186.

The Census Bureau invited 40 other federal agencies with overseas employees to submit counts of their employees as well. Of those, only 30 actually submitted counts, and only 20 agencies included dependents in their enumeration. Four of the agencies could not provide a home State for all of their overseas employees. Ibid.

Appellees challenged the decision to allocate federal overseas employees, and the method used to do so, as inconsistent with the APA and with the constitutional requirement that the apportionment of Representatives be determined by an “actual Enumeration” of persons “in each State.” U. S. Const., Art. I, §2, cl. 3; U. S. Const., Arndt. 14, §2. Appel-lees focused their attack on the Secretary’s decision to use “home of record” data for military personnel. The District Court, finding that it had jurisdiction to address the merits of the claims, was “skeptical” of the merits of appellees’ constitutional claims, speculating that “[tjhere would appear to be nothing inherently unconstitutional in a properly supported decision to include overseas federal employees in apportionment counts.” Commonwealth v. Mosbacher, 785 F. Supp. 230, 266 (Mass. 1992). The District Court nonetheless held that, on the administrative record before it, the Secretary’s decision to allocate the employees and to use home *796of record data was arbitrary and capricious under the standards of the APA. Id., at 264-266.

Appellees raise claims under both the APA and the Constitution. We address first the statutory basis for our jurisdiction under the APA. See Blum v. Bacon, 457 U. S. 132, 137 (1982); Burton v. United States, 196 U. S. 283, 295 (1905).

The APA sets forth the procedures by which federal agencies are accountable to the public and their actions subject to review by the courts. The Secretary’s report to the President is an unusual candidate for “agency action” within the meaning of the APA, because it is not promulgated to the public in the Federal Register, no official administrative record is generated, and its effect on reapportionment is felt only after the President makes the necessary calculations and reports the result to the Congress. Contrast 2 U. S. C. §441a(e) (requiring Secretary to publish each year in the Federal Register an estimate of the voting age population). Only after the President reports to Congress do the States have an entitlement to a particular number of Representatives. See §2a(b) (“Each State shall be entitled ... to the number of Representatives shown in the [President’s] statement”).

The APA provides for judicial review of “final agency action for which there is no other adequate remedy in a court.” 5 U. S. C. §704. At issue in this case is whether the “final” action that appellees have challenged is that of an “agency” such that the federal courts may exercise their powers of review under the APA. We hold that the final action complained of is that of the President, and the President is not an agency within the meaning of the Act. Accordingly, there is no final agency action that may be reviewed under the APA standards.

To determine when an agency action is final, we have looked to, among other things, whether its impact “is suffi-*797eiently direct and immediate” and has a “direct effect on ... day-to-day business.” Abbott Laboratories v. Gardner, 387 U. S. 136, 152 (1967). An agency action is not final if it is only “the ruling of a subordinate official,” or “tentative.” Id., at 151. The core question is whether the agency has completed its decisionmaking process, and whether the result of that process is one that will directly affect the parties. In this case, the action that creates an entitlement to a particular number of Representatives and has a direct effect on the reapportionment is the President’s statement to Congress, not the Secretary’s report to the President.

Unlike other statutes that expressly require the President to transmit an agency’s report directly to Congress, §2a does not. Compare, e. g., 20 U. S. C. § 1017(d) (“The President shall transmit each such report [of the National Advisory Council on Continuing Education] to the Congress with his comments and recommendations”); 30 U. S. C. § 1315(c) (similar language); 42 U. S. C. § 3015(f) (similar language); 42 U. S. C. § 6633(b)(2) (similar language). After receiving the Secretary’s report, the President is to “transmit to the Congress a statement showing the whole number of persons in each State ... as ascertained under the ... decennial census of the population.” 2 U. S. C. §2a(a). Section 2a does not expressly require the President to use the data in the Secretary’s report, but, rather, the data from the “decennial census.” There is no statute forbidding amendment of the “decennial census” itself after the Secretary submits the report to the President. For potential litigants, therefore, the “decennial census” still presents a moving target, even after the Secretary reports to the President. In this case, the Department of Commerce, in its press release issued the day the Secretary submitted the report to the President, was explicit that the data presented to the President was still subject to correction. See United States Department of Commerce News, Bureau of Census, 1990 Census Population for the United States is 249,632,692: Reapportionment Will *798Shift 19 Seats in the U. S. House of Representatives 2 (Dec. 26,1990) (“The population counts set forth herein are subject to possible correction for undercount and overcount. The United States Department of Commerce is considering whether to correct these counts and will publish corrected counts, if any, not later than July 15, 1991”).1 Moreover, there is no statute that rules out an instruction by the President to the Secretary to reform the census, even after the data are submitted to him. It is not until the President submits the information to Congress that the target stops moving, because only then are the States entitled by § 2a to a particular number of Representatives. Because the Secretary’s report to the President carries no direct consequences for the reapportionment, it serves more like a tentative recommendation than a final and binding determination. It is, like “the ruling of a subordinate official,” Abbott Laboratories v. Gardner, supra, at 151, not final and therefore not subject to review. Cf. Chicago & Southern Air Lines, Inc. v. Waterman S. S. Corp., 333 U. S. 103, 109 (1948); United States v. George S. Bush & Co., 310 U. S. 371, 379 (1940).

The statutory structure in this ease differs from that at issue in Japan Wkaling Assn. v. American Cetacean Soc., 478 U. S. 221 (1986), in which we held that the Secretary of Commerce’s certification to the President that another country was endangering fisheries was “final agency action.” Id., at 231, n. 4. In that case, the Secretary’s certification *799to the President under 22 U. S. C. § 1978(a)(1) automatically triggered sanctions by the Secretary of State under 16 U. S. C. § 1821(e)(2)(B), regardless of any discretionary action the President himself decided to take. Japan Whaling, supra, at 226. Under 13 U. S. G. § 141(a), by contrast, the Secretary’s report to the President has no direct effect on reapportionment until the President takes affirmative steps to calculate and transmit the apportionment to Congress.

Appellees claim that because the President exercises no discretion in calculating the numbers of Representatives, his “role in the statutory scheme was intended to have no substantive content,” and the final action is the Secretary’s, not the President’s. Brief for Appellees 86. They cite the Senate Report for the bill that became 2 U. S. G. § 2a, which states that the President is to report “upon a problem in mathematics which is standard, and for which rigid specifications are provided by Congress itself, and to which there can be but one mathematical answer.” S. Rep. No. 2, 71st Cong., 1st Sess., at 4-5.

The admittedly ministerial nature of the apportionment calculation itself does not answer the question whether the apportionment is foreordained by the time the Secretary gives her report to the President. To reiterate, §2a does not curtail the President’s authority to direct the Secretary in making policy judgments that result in “the decennial census”; he is not expressly required to adhere to the policy decisions reflected in the Secretary’s report. Because it is the President’s personal transmittal of the report to Congress that settles the apportionment, until he acts there is no determinate agency action to challenge. The President, not the Secretary, takes the final action that affects the States.

Indeed, it is clear that Congress thought it was important to involve a constitutional officer in the apportionment process. Congress originally considered a bill requiring the Secretary to report the apportionment calculation directly *800to Congress. See S. Rep. No. 1446, 70th Cong., 2d Sess., 4 (1929). The bill was later amended to require the participation of the President: “Another objection to the previous bill was that the Secretary of Commerce should not be intrusted with the final responsibility for making so important a report to Congress. The new and pending bill recognizes this objection to the extent that the President is substituted for the Secretary of Commerce so that this function may be served by a constitutional officer. This makes for greater permanence, which is one of the major virtues to be desired in such a statute.” S. Rep. No. 2, supra, at 5. It is hard to imagine a purpose for involving the President if he is to be prevented from exercising his accustomed supervisory powers over his executive officers. Certainly no purpose to alter the President’s usual superintendent role is evident from the text of the statute.

As enacted, 2 U. S. C. § 2a provides that the Secretary cannot act alone; she must send her results to the President, who makes the calculations and sends the final apportionment to Congress. That the final act is that of the President is important to the integrity of the process and bolsters our conclusion that his duties are not merely ceremonial or ministerial. Thus, we can only review the APA claims here if the President, not the Secretary of Commerce, is an “agency” within the meaning of the Act.

The APA defines “agency” as “each authority of the Government of the United States, whether or not it is within or subject to review by another agency, but does not include— (A) the Congress; (B) the courts of the United States; (C) the governments of the territories or possessions of the United States; (D) the government of the District of Columbia.” 5 U. S. C. §§ 701(b)(1), 551(1). The President is not explicitly excluded from the APA’s purview, but he is not explicitly included, either. Out of respect for the separation of powers and the unique constitutional position of the President, we find that textual silence is not enough to subject the Presi*801dent to the provisions of the APA. We would require an express statement by Congress before assuming it intended the President’s performance of his statutory duties to be reviewed for abuse of discretion. Cf. Nixon v. Fitzgerald, 457 U. S. 731, 748, n. 27 (1982) (Court would require an explicit statement by Congress before assuming Congress had created a damages action against the President). As the APA does not expressly allow review of the President’s actions, we must presume that his actions are not subject to its requirements. Although the President’s actions may still be reviewed for constitutionality, see Youngstown Sheet & Tube Co. v. Sawyer, 343 U. S. 579 (1952); Panama Refining Co. v. Ryan, 293 U. S. 388 (1935), we hold that they are not reviewable for abuse of discretion under the APA, see Armstrong v. Bush, 288 U. S. App. D. C. 38, 45, 924 F. 2d 282, 289 (1991). The District Court erred in proceeding to determine the merits of the APA claims.

Ill

Although the reapportionment determination is not subject to review under the standards of the APA, that does not dispose of appellees’ constitutional claims. See Webster v. Doe, 486 U. S. 592, 603-605 (1988). Constitutional challenges to apportionment are justiciable. See Department of Commerce v. Montana, 503 U. S. 442 (1992).

We first address standing.2 To invoke the constitutional power of the federal courts to adjudicate a ease or controversy under Article III, appellees here must allege and prove an injury “fairly traceable to the [appellants’] allegedly unlawful conduct and likely to be redressed by the requested relief.” Allen v. Wright, 468 U. S. 737, 751 (1984).

*802To determine whether appellees sufficiently allege and prove causation requires separating out- appellees’ claims: Appellees claim both that the Secretary erred in deciding to allocate overseas employees to various States and that the Secretary erred in using inaccurate data to do so. Appellees have shown that Massachusetts would have had an additional Representative if overseas employees had not been allocated at all. App. 183. They have neither alleged nor shown, however, that Massachusetts would have had an additional Representative if the allocation had been done using some other source of “more accurate” data. Consequently, even if appellees have standing to challenge the Secretary’s decision to allocate, they do not have standing to challenge the accuracy of the data used in making that allocation. We need, then, review only the decision to include overseas federal employees in the state population counts, not the Secretary’s choice of information sources.

The thornier standing question is whether the injury is redressable by the relief sought. Tracking the statutory progress of the census data from the Census Bureau, through the President, and to the States, the District Court entered an injunction against the Secretary of Commerce, the President, and the Clerk of the House. 785 F. Supp., at 268. While injunctive relief against executive officials like the Secretary of Commerce is within the courts’ power, see Youngstown Sheet & Tube Co. v. Sawyer, supra, the District Court’s grant of injunctive relief against the President himself is extraordinary, and should have raised judicial eyebrows. We have left open the question whether the President might be subject to a judicial injunction requiring the performance of a purely “ministerial” duty, Mississippi v. Johnson, 4 Wall. 475, 498-499 (1867), and we have held that the President may be subject to a subpoena to provide information relevant to an ongoing criminal prosecution, United States v. Nixon, 418 U. S. 683 (1974), but in general “this *803court has no jurisdiction of a bill to enjoin the President in the performance of his official duties.” Mississippi v. Johnson, supra, at 501. At the threshold, the District Court should have evaluated whether injunctive relief against the President was available, and, if not, whether appellees’ injuries were nonetheless redressable.

For purposes of establishing standing, however, we need not decide whether injunctive relief against the President was appropriate, because we conclude that the injury alleged is likely to be redressed by declaratory relief against the Secretary alone. See Duke Power Co. v. Carolina Environmental Study Group, Inc., 438 U. S. 59, 75, n. 20 (1978); Allen v. Wright, supra, at 752. The Secretary certainly has an interest in defending her policy determinations concerning the census; even though she cannot herself change the reapportionment, she has an interest in litigating its accuracy. And, as the Solicitor General has not contended to the contrary, we may assume it is substantially likely that the President and other executive and congressional officials would abide by an authoritative interpretation of the census statute and constitutional provision by the District Court, even though they would not be directly bound by such a determination.

IV

On the merits, appellees argue that the Secretary’s allocation of overseas federal employees to the States violated the command of Article I, § 2, cl. 3, that the number of Representatives per State be determined by an “actual Enumeration” of “their respective Numbers,” that is, a count of the persons “in” each State. Appellees point out that the first census conducted in 1790 required that persons be allocated to their place of “usual residence.” Brief for Appellees 77. See Act of Mar. 1,1790, §5,1 Stat. 103. Because the interpretations of the Constitution by the First Congress are per*804suasive, Bowsher v. Synar, 478 U. S. 714, 723-724 (1986), ap-pellees argue that the Secretary should have allocated the overseas employees’ to their overseas stations, because those were their usual residences.

The appellants respond, on the other hand, that the allocation of employees temporarily stationed overseas to their home States is fully compatible with the standard of "usual residence” used in the early censuses. We review the dispute to the extent of determining whether the Secretary’s interpretation is consistent with the constitutional language and the constitutional goal of equal representation. See Department of Commerce v. Montana, 503 U, S., at 459.

“Usual residence” was the gloss given the constitutional phrase “in each State” by the first enumeration Act and has been used by the Census Bureau ever since to allocate persons to their home States. App. 173-174. The term can mean more than mere physical presence, and has been used broadly enough to include some element of allegiance or enduring tie to a place. The first enumeration Act itself provided that “every person occasionally absent at the time of the enumeration [shall be counted] as belonging to that place in which he usually resides in the United States.” Act of Mar. 1, 1790, § 5, 1 Stat. 103. The Act placed no limit on the duration of the absence, which, considering the modes of transportation available at the time, may have been quite lengthy. For example, during the 36-week enumeration period of the 1790 census, President George Washington spent 16 weeks traveling through the States, 15 weeks at the seat of Government, and only 10 weeks at his home in Mount Vernon. He was, however, counted as a resident of Virginia. T. Clemence, Place of Abode, reproduced in App. 83.

The first enumeration Act uses other words as well to describe the required tie to the State: “usual place of abode,” “inhabitant,” “usual resident].” Act of Mar. 1, 1790, § 5, 1 Stat. 103. The first draft of Article I, § 2, also used the word “inhabitant,” which was omitted by the Committee of Style *805in the final provision. 2 Farrand, Records of the Federal Convention of 1787, at 566, 590.3

In the related context of congressional residence qualifications, U. S. Const., Art. I, § 2, James Madison interpreted the constitutional term “inhabitant” to include “persons absent occasionally for a considerable time on public or private business.” 2 Farrand, Records of the Federal Convention of 1787, at 217. This understanding was applied in 1824, when a question was raised about the residency qualifications of would-be Representative John Forsyth, of Georgia. Mr. Forsyth had been living in Spain during his election, serving as minister plenipotentiary from the United States. His qualification for office was challenged on the ground that he was not “an inhabitant of the State in which he [was] chosen.” U. S. Const., Art. I, §2, el. 2. The House Committee of Elections disagreed, reporting: “There is nothing in Mr. Forsyth’s case which disqualifies him from holding a seat in this House. The capacity in which he acted, excludes the idea that, by the performance of his duty abroad, he ceased to be an inhabitant of the United States; and, if so, inasmuch as he had no inhabitancy in any other part of the Union than Georgia, he must be considered as in the same situation as before the acceptance of the appointment.” M. Clarke & D. Hall, Cases of Contested Elections in Congress 497-498 (1834). Representative Bailey, supporting the qualification of Mr. Forsyth, pointed out that if “the mere living in a place constituted inhabitancy,” it would “exclude sitting members of this House.” Id., at 497 (emphasis deleted).

Up to the present day, “usual residence” has continued to hold broad connotations. For example, up until 1950, college *806students were counted as belonging to the State where their parents resided, not to the State where they attended school. *App. 219. Even today, high school students away at boarding school are allocated to their parents’ home State, not the location of the school. Id., at 220. Members of Congress may choose whether to be counted in the Washington, D. C., area or in their home States. Id., at 218. Those persons who are institutionalized in out-of-state hospitals or jails for short terms are also counted in their home States. Id., at 225.

In this ease, the Secretary of Commerce made a judgment, consonant with, though not dictated by, the text and history of the Constitution, that many federal employees temporarily stationed overseas had retained their ties to the States and could and should be counted toward their States' representation in Congress: “Many, if not most, of these military overseas consider themselves to be usual residents of the United States, even though they are temporarily assigned overseas.” Id., at 120. The Secretary’s judgment does not hamper the underlying constitutional goal of equal representation, but, assuming that employees temporarily stationed abroad have indeed retained their ties to their home States, actually promotes equality. If some persons sharing in Washington’s fate had not been properly counted, the votes of all those who reside in Washington State would not have been weighted equally to votes of those who reside in other States. Certainly, appellees have not demonstrated that eliminating overseas employees entirely from the state counts will make representation in Congress more equal. Cf. Karcher v. Daggett, 462 U. S. 725, 730-731 (1983) (parties challenging state apportionment legislation bear burden of proving disparate representation). We conclude that appel-lees’ constitutional challenge fails on the merits.

The District Court’s judgment is

Reversed.

*807Justice Stevens,

with whom Justice Blackmun, Justice Kennedy, and Justice Souter join,

concurring in part and concurring in the judgment.

In my opinion the census report prepared by the Secretary of Commerce is “final agency action” subject to judicial review under the Administrative Procedure Act (APA), 5 U. S. C. § 701 et seq. I am persuaded, however, that the Secretary complied with the Census Act and with the Constitution in the preparation of the 1990 census and that, under the standard of deference appropriate here, the Secretary’s actions were not arbitrary or capricious. I therefore agree that the judgment of the District Court must be reversed.

I

During the decade after 1980 the population of Massachusetts increased less rapidly than the population of the entire Nation. In the apportionment following the 1990 census, it received only 10 of the 435 seats in the House of Representatives whereas formerly it had 11.

In the District Court, appellees, who are the Commonwealth of Massachusetts and two of its registered voters, made two separate attacks on the process that reduced the size of Massachusetts’ congressional delegation. They challenged the Secretary’s conduct of the census, and they challenged the method of apportioning congressional seats based on the census report. The District Court rejected the challenge to the constitutionality of the method of apportionment prescribed in the Apportionment Act of 1941, 55 Stat. 761-762. Commonwealth v. Mosbacher, 785 F. Supp. 230, 256 (Mass. 1992). That decision was consistent with the analysis subsequently set forth in our opinion in Department of Commerce v. Montana, 503 U. S. 442 (1992), and is no longer in dispute. Pursuant to the judicial review provisions of the APA, 5 U. S. C. §706(2), the District Court also examined the decision of the Secretary of Commerce to include overseas federal employees in the census count. The *808court concluded that the Secretary’s decision was “arbitrary' and capricious, and an abuse of discretion.” 785 F. Supp., at 267.

In a rather surprising development, this Court reverses because it concludes that the census report is not “final agency action,” 5 U. S. C. § 704. The reason the Court gives for this conclusion is that the President — who is not himself a part of the agency that prepared the census and who has no statutory responsibilities under the Census Act — might revise that report in some way when he is performing his responsibilities under an entirely separate statute, the Apportionment Act. The logic of the Court’s opinion escapes me, and apparently was not obvious to the Solicitor General, for he advanced no such novel claim in his argument seeking reversal. The Court’s conclusion is erroneous for several reasons.

II

Article I, § 2, cl. 3, of the Constitution, as modified by the Fourteenth Amendment, provides that Members of the House of Representatives “shall be apportioned among the several States according to their respective numbers, counting the whole number of persons in each State . . . .” To ensure that the apportionment remains representative of the current population, the Constitution further requires that a census be taken at least every 10 years.1

Beginning in 1790, Congress fulfilled the constitutional command by passing a Census Act every 10 years. Under the early census statutes, marshals would transmit the collected information to the Secretary of State. The census functions of the Secretary of State were transferred to the Secretary of the Interior after that Department was estab*809lished in 1849.2 A Census Office in the Department of the Interior was established in 1899 and made permanent in 1902.3 A year later, the Census Office was moved to the newly formed Department of Commerce and Labor.4

Following each census, Congress enacted a statute to reapportion the House of Representatives. After the 1920 census, however, Congress failed to pass a reapportionment Act. This congressional deadlock provided the impetus for the 1929 Act that established a self-executing apportionment in the case of congressional inaction. See S. Rep. No. 2, 71st Cong., lst.Sess., 2-4 (1929). The bill produced an automatic reapportionment through the application of a mathematical formula to the census. The automatic connection between the census and the reapportionment was the key innovation of the Act.5

In its original version, the bill directed the Secretary of Commerce to apply a mathematical formula to the census figures and to transmit the resulting apportionment calculations to Congress. A later version made the President responsible for performing the mathematical computations and reporting the result. From the legislative history, it is clear that this change in the designated official was intended to have no substantive significance.6 There is no indication *810whatsoever of an intention to introduce a layer of Executive discretion between the taking of the census and the application of the reapportionment formula. The intention was exactly the contrary: to make the apportionment proceed automatically based on the census.

The statutory scheme creates an interlocking set of responsibilities for the Secretary and the President. The Secretary of Commerce is required to take a “decennial census of population as of the first day of April of [every tenth] year, which date shall be known as the ‘decennial census date.’” 13 U. S. C. § 141(a). The Secretary reports the collected information to the President, see § 141(b), who is directed to “transmit to the Congress” a statement showing the population of each State “as ascertained under the seventeenth and each subsequent decennial census . . . .” 2 U. S. C. §2a(a). The plain language of the statute demonstrates that the President has no substantive role in the computation of the census. The Secretary takes the “decennial census,” and the President performs the apportionment calculations and transmits the census figures and apportionment results to Congress.

In the face of this clear statutory mandate, the Court must fall back on an argument based on statutory silence. The Court insists that there is no law prohibiting the President from changing the census figures after he receives them from the Secretary. The Court asserts: “Section 2a does not expressly require the President to use the data in the Secretary’s report, but, rather, the data from the ‘decennial census.’” Ante, at 797 (emphasis added). This statement is difficult to comprehend, for it purports to contrast two terms that the statute equates. The “decennial census” is the name the statute gives to the information collected by the *811Secretary and reported to the President. The Court’s argument cannot be harmonized with a statutory scheme that directs the Secretary to take the “decennial census” and the President to report to Congress figures “as ascertained under the ... decennial census.” This language cannot support the Court’s view that the statute endows the President with discretion to modify the census results reported by the Secretary.

The legislative record, moreover, establishes that the Executive involvement in the process is to be wholly ministerial.7 The question of the discretion allowed to the President was discussed on the floor of the Senate, and the sponsor of the bill, Senator Vandenberg of Michigan, stated unequivocally that the President exercised no discretion whatsoever: “I believe as a matter of indisputable fact, that function served by the President is as purely and completely a ministerial function as any function on earth could be.” 71 Cong. Ree. 1858 (1929).8 In a colloquy with other legisla*812tors, Senator Vandenberg made clear that the bill did not allow the President to change the census figures he received:

“Mr. SWANSON: As I understand, the Senator from Montana says, after reading the bill carefully, that the President is bound and has no discretion under its terms; so that if there should be glaring frauds all over the country he would be compelled to make the apportionment according to the census.
“Mr. WALSH of Montana: I should say so, because as I understand, he is not authorized to disregard any numbers upon any ground.
“Mr. SWANSON: I should like to ask the Senator from Michigan if that is his view? I understand the Senator from Montana to say that if the census returns shall be shown to be reeking with frauds the President will have no power to correct them; that he must follow the census returns as certified, regardless of the fraud that may be involved. Is that the view of the Senator from Michigan?
“Mr. VANDENBERG: My answer is that the Senator from Montana is entirely correct. There is absolutely no discretion in name or nature reposed in the President in connection with the administration of this proposed act.” Id., at 1845-1846.9

No President — indeed, no member of the Executive Branch — has ever suggested that the statute authorizes the President to modify the census figures when he performs the *813apportionment calculations. Nor did the Solicitor General advance that argument in this litigation.10 As a matter of practice, the President has consistently and faithfully performed the ministerial duty described by Senator Vanden-berg. The Court’s suggestion today that the statute gives him discretion to do otherwise is plainly incorrect.11

*814Because the Census Act directs that the tabulation of the total population by States shall be “reported by the Secretary to the President,” the Court suggests that it is “like a tentative recommendation” to the President, ante, at 798. This suggestion is misleading because, unlike the typical “tentative recommendation,” the census report is a public document. It is released to the public at the same time that it is transmitted to the President.12 By law, the census report is distributed to federal and state agencies because it provides the basis for the allocation of various benefits and burdens among the States under a variety of federal programs. The Secretary also transmits the census figures directly to the States to assist them in redistricting. See 13 U.S.C. § 141(c).

This wide distribution provides further evidence that the statute does not contemplate the President’s changing the Secretary’s report. If the President modified the census figures after he received them from the Secretary, the Federal Government and the States would rely on different census results. The Secretary has made clear that the existence of varying “official” population figures is not acceptable. *815In setting forth guidelines for possible adjustment of the census results,13 the Secretary stated:

“The resulting counts must be of sufficient quality and level of detail to be usable for Congressional reapportionment and legislative redistrieting, and for all other purposes and at all levels for which census counts are published....
“[Tlhere can be, for the population at all geographic levels at any one point in time, only one set of official government population figures.” 55 Fed. Reg. 9840-9841 (1990).

To ensure uniformity, the Secretary’s count must establish the final census figures.14

*816In light of the statutory language, the legislative history, and the consistent Executive practice, the Court’s conclusion that the census report is not “final agency action” is as insupportable as it is surprising.15

Ill

In view of my conclusion that the census report prepared by the Secretary constitutes final agency action, I must consider the Secretary’s contention that judicial review is not available because the conduct of the census is “committed to agency discretion by law.” 5 U. S. C. § 701(a)(2).

As we have frequently recognized, the “strong presumption that Congress intends judicial review of administrative action,” see, e. g., Bowen v. Michigan Academy of Family Physicians, 476 U. S. 667, 670 (1986), cannot be overcome without “ ‘clear and convincing evidence’ ” of a contrary legislative intent, Abbott Laboratories v. Gardner, 387 U. S. 136, 141 (1967) (quoting Rusk v. Cort, 369 U. S. 367, 380 (1962)). No such evidence appears here.

The current version of the statute provides that “[t]he Secretary shall.. . take a decennial census of population as of the first day of April... in such form and content as [s]he may determine-” 13 U. S. C. § 141(a).16 The Secretary *817asserts that the discretion afforded by the statute is at least as broad as that allowed the Director of Central Intelligence in the statute we considered in Webster v. Doe, 486 U. S. 592 (1988). That assertion cannot withstand scrutiny. The statute at issue in Doe provided that “the Director of Central Intelligence may, in his discretion, terminate the employment of any officer or employee of the Agency whenever he shall deem such termination necessary or advisable in the interests of the United States-” 50 U. S. C. § 403(e). In concluding that employment discharge decisions were committed to agency discretion, we emphasized the language of “deem... advisable,” which we found to provide no meaningful standard of review. We also relied on the overall statutory structure of the National Security Act.

No language equivalent to “deem . . . advisable” exists in the census statute. There is no indication that Congress intended the Secretary’s own mental processes, rather than other more objective factors, to provide the standard for gauging the Secretary’s exercise of discretion. Moreover, it *818is difficult to imagine two statutory schemes more dissimilar than the National Security Act and the Census Act. Though they both relate to the gathering of information, the similarity ends there. Doe raises the possibility that, except for constitutional claims, the Director of Central Intelligence may enjoy unreviewable discretion to discharge employees. This conclusion accords with the principle of judicial deference that pervades the area of national security. See, e. g., Department of Navy v. Egan, 484 U. S. 518, 530 (1988); CIA v. Sims, 471 U. S. 159, 180-181 (1985). While the operations of a secret intelligence agency may provide an exception to the norm of reviewability,17 the taking of the census does not. The open nature of the census enterprise and the public dissemination of the information collected are closely connected with our commitment to a democratic form of government.18 The reviewability of decisions relating to the conduct of the census bolsters public confidence in the integrity of the process and helps strengthen this mainstay of our democracy.

More generally, the Court has limited the exception to judicial review provided by 5 U. S. C. § 701(a)(2) to eases involving national security, such as Webster v. Doe and Department of Navy v. Egan, or those seeking review of refusal to pursue enforcement actions, see Heckler v. Chaney, 470 U. S. *819821 (1985); Southern R. Co. v. Seaboard Allied Milling Corp., 442 U. S. 444 (1979); Morris v. Gressette, 432 U. S. 491 (1977). These are areas in which courts have long been hesitant to intrude. The taking of the census is not such an area of traditional deference.19

Nor is this an instance in which the statute is so broadly drawn that “ ‘there is no law to apply.’ ” Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U. S. 402, 410 (1971) (quoting S. Rep. No. 752, 79th Cong., 1st Sess., 26 (1945)). The District Court found that the overall statutory scheme and the Census Bureau’s consistently followed policy provided “law to apply” in reviewing the Secretary’s exercise of discretion. 785 F. Supp., at 262. As the District Court explained, the relationship of the census provision contained in 13 U. S. C. § 141 and the apportionment provision contained in 2 U. S. C. §2a demonstrates that the Secretary’s discretion is constrained by the requirement that she produce a tabulation of the “whole number of persons in each State.” 2 U. S. C. §2a(a).20 This statutory command also *820embodies a duty to conduct a census that is accurate and that fairly accounts for the crucial representational rights that depend on the census and the apportionment. The “usual residence” policy that has guided the census since 1790 provides a further standard by which to evaluate the Secretary’s exercise of discretion. See generally Heckler v. Chaney, 470 U. S., at 836; Motor Vehicle Mfrs. Assn. of United States, Inc. v. State Farm Mut. Automobile Ins. Co., 463 U. S. 29, 41-43 (1983); Padula v. Webster, 822 F. 2d 97, 100, 261 U. S. App. D. C. 365, 368 (1987). The District Court was clearly correct in concluding that the statutory framework and the long-held administrative tradition provide a judicially admin-istrable standard of review.21

IY

For the reasons stated in Part IV of the Court’s opinion, I agree that the inclusion of overseas employees in state census totals does not violate the Constitution.22 I turn now to *821appellees’ contention that the Secretary’s decision to include overseas federal employees was arbitrary and capricious and should have been set aside under the APA.

With the exception of the census conducted in 1900, overseas federal employees were not included in state census totals before 1970.23 In the census conducted in 1970, during the Vietnam War, overseas military personnel were assigned to States for apportionment purposes based on the “home of record” appearing in their personnel files.24 The Bureau reverted to its previous policy of excluding overseas employees from apportionment totals in the 1980 census. In explaining this decision, one of the reasons cited by Bureau officials was the “unknown reliability” of the data relied on to determine the “home State” of overseas personnel. App. 55. In discussions with the Bureau and in testimony before Congress, officials of the Defense Department agreed that “home of record” data had a high “error rate” and might have little correlation with an employee’s true feelings of affiliation. See id., at 124,183.

In July 1989, then-Secretary Mosbaeher decided to include overseas employees in state population figures in the 1990 *822census.25 The decision memorandum approved by the Secretary described several reasons for this conclusion, including “growing bipartisan concern of the Congress” and the belief of the Defense Department that its employees should be included in apportionment calculations because they considered themselves to be “usual residents” of the United States. Id., at 120. The prospect of more accurate data than previously available also contributed to the decision. The memorandum stated that the Defense Department’s plans to conduct an enumeration of its employees provided a “significant reason” for the decision. Id., at 121; see also id., at 184. In December 1989, however, a lack of funds led the Defense Department to cancel the survey. Ibid. The Secretary nevertheless adhered to the decision to include overseas personnel.

In reaching the ultimate decision to allocate overseas federal employees to States, the Secretary had an obligation to “examine the relevant data and articulate a satisfactory explanation for [the] action including a ‘rational connection between the facts found and the choice made.’” State Farm, 463 U. S., at 43 (quoting Burlington Truck Lines, Inc. v. United States, 371 U. S. 156, 168 (1962)). The District Court was properly concerned by the scant evidence that the Secretary reconsidered the apportionment policy following the cancellation of the Defense Department survey. If the justification for the decision no longer obtained, the refusal to reconsider would be quite capricious. The District Court was certainly correct in concluding that “[ijnertia cannot supply the necessary rationality” for the Secretary’s decision. 785 F. Supp., at 265.

While the question is a close one, two factors in particular lead me to conclude that the decision to include overseas employees ultimately rested on more than inertia. First, the Secretary received assurances from the Defense Department *823that, even without the survey, information on overseas personnel would be “supplemented and improved,” App. 161, and would thus be more accurate than the data available in the past. Moreover, while the anticipated Defense Department survey played an important role in the Secretary’s initial decision, other factors cited in the memorandum continued to support the Secretary’s choice to include overseas personnel.

The record could be more robust. However, the basis for the agency’s decision need not appear with “ideal clarity,” Bowman Transportation, Inc. v. Arkansas-Best Freight System, Inc., 419 U. S. 281, 286 (1974), as long as it is reasonably discernible. As the Court explains, see ante, Part IV, the Secretary had discretion to include overseas personnel in the census count. Although the hopes for more accurate data were not fully realized, the record discloses that the decision to include overseas personnel continued to be supported by valid considerations. I therefore conclude that the decision of the Secretary was not arbitrary or capricious.26

For these reasons, I concur in the Court’s judgment, but only in Part IV of its opinion.

Justice Scalia,

concurring in part and concurring in the judgment.

I agree with the Court that appellees had no cause of action under the judicial-review provisions of the Administrative Procedure Act (APA), 5 U. S. C. § 701 et seq., and I therefore join Parts I and II of its opinion.

Appellees have also challenged the constitutionality of the allocation methods used by the Secretary of Commerce in conducting the census. The Court concludes that they have *824standing to assert these claims, but that the claims are mer-itless.1 I disagree with the Court’s conclusion on the standing question, and therefore do not reach the merits. Our cases have established that there are three elements to the “irreducible constitutional minimum of standing” required by Article III: (1) the plaintiffs must establish that they have suffered “injury in fact”; (2) they must show causation between the challenged action and the injury; and (3) they must establish that it is likely that the injury will be redressed by a decision in their favor. Lujan v. Defenders of Wildlife, 504 U. S. 555, 560 (1992). Appellees have clearly satisfied the first two requirements, but I think they founder on the third.

The plurality concludes that declaratory relief directed at the Secretary alone would be sufficient to redress appellees’ injury. Ante, at 803. I do not agree. Ordering the Secretary to recalculate the final census totals will not redress appellees’ injury unless the President accepts the new numbers, changes his calculations accordingly, and issues a new reapportionment statement to Congress, and the Clerk of the House then submits new certificates to the States. 13 U. S. C. § 141(b); 2 U. S. C. §2a. I agree that, in light of the Clerk’s purely ministerial role, we can properly assume that insofar as his participation is concerned the sequence of events will occur. But as the Court correctly notes, ante, at 797-800, the President’s role in the reapportionment process is not purely ministerial; he is not “required to adhere to the policy decisions reflected in the Secretary’s report,” ante, at 799. I do not think that for purposes of the Article III re-dressability requirement we are ever entitled to assume, no matter how objectively reasonable the assumption may be, that the President (or, for that matter, any official of the Ex*825ecutive or Legislative Branches), in performing a function that is not wholly ministerial, will follow the advice of a subordinate official. The decision is by Constitution or law conferred upon him, and I think we are precluded from saying that it is, in practical effect, the decision of someone else. Indeed, judicial inquiry into or speculation about the probability of such “practical” subservience — never mind acting upon the outcome of such inquiry or speculation — seems to me disrespectful of a coordinate branch. On such a theory of redressability, suit would lie (assuming injury-iri-faet could be shown) against the members of the President’s Cabinet, or even the members of his personal staff, for the almost-sure-to-be-followed advice they give him in their respective areas of expertise.

The plurality, however, has a different theory of redress-ability. In its view, it suffices that the “authoritative interpretation of the census statute and constitutional provision” rendered by the District Court will induce the President to submit a new reapportionment that is consistent with what the District Court judgment orders the Secretary to submit. Ante, at 803. It seems to me this bootstrap argument eliminates, rather than resolves, the redressability question. If courts may simply assume that everyone (including those who are not proper parties to an action) will honor the legal rationales that underlie their decrees, then redressability will always exist. Redressability requires that the court be able to afford relief through the exercise of its power, not through the persuasive or even awe-inspiring effect of the opinion explaining the exercise of its power. It is the Court’s judgment, in other words, its injunction to the Secretary of Commerce, that must provide appellees relief — not its accompanying excursus on the meaning of the Constitution.

Though the Court does not rely upon it, the judgment sought here did run against the President of the United States. The District Court’s order expressly required, not *826only that a new census tabulation be prepared, but also that the President issue a new certification and that the Clerk of the House forward the new apportionment to the 50 Governors. It is a commentary upon the level to which judicial understanding — indeed, even judicial awareness — of the doctrine of separation of powers has fallen, that the District Court entered this order against the President without blinking an eye. I think it clear that no court has authority to direct the President to take an official act.

We have long recognized that the scope of Presidential immunity from judicial process differs significantly from that of Cabinet or inferior officers. Compare Nixon v. Fitzgerald, 457 U. S. 731, 750 (1982) (“The President’s unique status under the Constitution distinguishes him from other executive officials”), with Harlow v. Fitzgerald, 457 U. S. 800, 811, n. 17 (1982) (“Suits against other officials — including Presidential aides — generally do not invoke separation-of-powers considerations to the same extent as suits against the President himself”). Although we held in United States v. Nixon, 418 U. S. 683 (1974), that the President is not absolutely immune from judicial process, see also United States v. Burr, 25 F. Cas. 30 (No. 14,692d) (CC Va. 1807) (Marshall, C. J.) (upholding subpoena directed to President Jefferson), the order upheld there merely required the President to provide information relevant to an ongoing criminal prosecution, which is what any citizen might do; it did not require him to exercise the “executive Power” in a judicially prescribed fashion. We have similarly held that Members of Congress can be subpoenaed as witnesses, see Gravel v. United States, 408 U. S. 606, 615 (1972), citing United States v. Cooper, 4 Dall. 341 (CC Pa. 1800) (Chase, J., sitting on Circuit), though there is no doubt that we cannot direct them in the performance of their constitutionally prescribed duties, see Eastland v. United States Servicemen’s Fund, 421 U. S. 491 (1975) (refusing to enjoin the issuance of a congressional subpoena).

*827I am aware of only one instance in which we were specifically asked to issue an injunction requiring the President to take specified executive acts: to enjoin President Andrew Johnson from enforcing the Reconstruction Acts. As the plurality notes, ante, at 802-803, we emphatically disclaimed the authority to do so, stating that “ ‘this court has no jurisdiction of a bill to enjoin the President in the performance of his official duties.’ ” Mississippi v. Johnson, 4 Wall. 475, 501 (1867). See also C. Burdick, The Law of the American Constitution § 50, pp. 126-127 (1922); C. Pyle & R. Pious, The President, Congress, and the Constitution 170 (1984) (“No court has ever issued an injunction against the president himself or held him in contempt of court”). The apparently unbroken historical tradition supports the view, which I think implicit in the separation of powers established by the Constitution, that the principals in whom the executive and legislative powers are ultimately vested — viz., the President and the Congress (as opposed to their agents) — may not be ordered to perform particular executive or legislative acts at the behest of the Judiciary.2

For similar reasons, I think we cannot issue a declaratory judgment against the President. It is incompatible with his constitutional position that he be compelled personally to defend his executive actions before a court. Many of the reasons we gave in Nixon v. Fitzgerald, supra, for acknowledging an absolute Presidential immunity from civil damages for official acts apply with equal, if not greater, force to requests for declaratory or injunctive relief in official-capacity suits that challenge the President’s performance of executive functions: The President’s immunity from such judicial relief is *828“a functionally mandated incident of the President’s unique office, rooted in the constitutional tradition of the separation of powers and supported by our history.” Id., at 749; see also id., at 749-757; id., at 760-764 (Burger, C. J., concurring).3 Permitting declaratory or injunctive relief against the President personally would not only distract him from his constitutional responsibility to “take Care that the Laws be faithfully executed,” U; S. Const., Art. II, §3, but, as more and more disgruntled plaintiffs add his name to their complaints, would produce needless head-on confrontations between district judges and the Chief Executive. (If official-action suits against the President had been contemplated, surely they would have been placed within this Court’s original jurisdiction.) It is noteworthy that in the last substantive section of Nixon v. Fitzgerald where we explain why “[a] rule of absolute immunity for the President will not leave the Nation without sufficient protection against misconduct on the part of the Chief Executive,” 457 U. S., at 757, because of “[t]he existence of alternative remedies and deterrents,” id., at 758, injunctive or declaratory relief against the President is not mentioned.

None of these conclusions, of course, in any way suggests that Presidential action is unreviewable. Review of the legality of Presidential action can ordinarily be obtained in a suit seeking to enjoin the officers who attempt to enforce the President’s directive, see, e. g., Youngstown Sheet & Tube Co. v. Sawyer, 343 U. S. 579 (1952); Panama Refining Co. v. Ryan, 293 U. S. 388 (1935) — just as unlawful legislative ac*829tion can be reviewed, not by suing Members of Congress for the performance of their legislative duties, see, e. g., Powell v. McCormack, 395 U. S. 486, 503-506 (1969); Dombrowski v. Eastland, 387 U. S. 82 (1967); Kilbourn v. Thompson, 103 U. S. 168 (1881), but by enjoining those congressional (or executive) agents who carry out Congress’s directive. Unless the other branches are to be entirely subordinated to the Judiciary, we cannot direct the President to take a specified executive act or the Congress to perform particular legislative duties.

In sum, we cannot remedy appellees’ asserted injury without ordering declaratory or injiinctive relief against appellant President Bush, and since we have no power to do that, I believe appellees’ constitutional claims should be dismissed.4 Since I agree with the Court’s conclusion that appellees’ constitutional claims do not provide an alternative ground that would support the judgment below, I concur in its judgment reversing the District Court.

2.1.3 Dep't of Transp. v. Ass'n of Am. Railroads 2.1.3 Dep't of Transp. v. Ass'n of Am. Railroads

Status as an agency is not necessarily coextensive with the definition in the APA, and much still rides on whether an entity is an agency in this broader sense. As the following case suggests, whether an entity is an agency of the government has relevance for whether, and to what extent, Congress can constitutionally delegate authority to that entity. These issues come up frequently at what administrative law scholar Anne Joseph O'Connell calls "bureaucracy at the boundary"--i.e., those entities that have some features that make them like federal government actors, but other features that make them more like private corporations or state government actors. See Anne Joseph O'Connell, Bureaucracy at the Boundary, 162 U. Pa. L. Rev. 841 (2014).

DEPARTMENT OF TRANSPORTATION, et al., Petitioners
v.
ASSOCIATION OF AMERICAN RAILROADS.

No. 13-1080.

Supreme Court of the United States

Argued Dec. 8, 2014.
Decided March 9, 2015.

Curtis E. Gannon, for Petitioners.

Thomas H. Dupree, Jr., Washington, DC, for Respondent.

Donald B. Verrilli, Jr., Solicitor General, Counsel of Record, Department of Justice, Washington, DC, for Petitioners.

Louis P. Warchot, Daniel Saphire, Association of American Railroads, Washington, DC, Thomas H. Dupree, Jr., Counsel of Record, Amir C. Tayrani, Lucas C. Townsend, Gibson, Dunn & Crutcher LLP, Washington, DC, for Respondent.

*1228Kathryn B. Thomson, General Counsel, Paul M. Geier, Assistant General Counsel for Litigation, Peter J. Plocki, Deputy Assistant General Counsel for Litigation, Joy K. Park, Trial Attorney, Department of Transportation, Washington, DC, Melissa Porter, Chief Counsel, Zeb G. Schorr, Deputy Assistant Chief Counsel, Federal Railroad Administration, Washington, DC, Donald B. Verrilli, Jr., Solicitor General, Counsel of Record, Stuart F. Delery, Assistant Attorney General, Edwin S. Kneedler, Deputy Solicitor General, Curtis E. Gannon, Assistant to the Solicitor General, Mark B. Stern, Michael S. Raab, Daniel Tenny, Patrick G. Nemeroff, Attorneys, Department of Justice, Washington, DC, for Petitioners.

Opinion

Justice KENNEDYdelivered the opinion of the Court.

In 1970, Congress created the National Railroad Passenger Corporation, most often known as Amtrak. Later, Congress granted Amtrak and the Federal Railroad Administration (FRA) joint authority to issue "metrics and standards" that address the performance and scheduling of passenger railroad services. Alleging that the metrics and standards have substantial and adverse effects upon its members' freight services, respondent-the Association of American Railroads-filed this suit to challenge their validity. The defendants below, petitioners here, are the Department of Transportation, the FRA, and two individuals sued in their official capacity.

Respondent alleges the metrics and standards must be invalidated on the ground that Amtrak is a private entity and it was therefore unconstitutional for Congress to allow and direct it to exercise joint authority in their issuance. This argument rests on the Fifth Amendment Due Process Clause and the constitutional provisions regarding separation of powers. The District Court rejected both of respondent's claims. The Court of Appeals for the District of Columbia Circuit reversed, finding that, for purposes of this dispute, Amtrak is a private entity and that Congress violated nondelegation principles in its grant of joint authority to Amtrak and the FRA. On that premise the Court of Appeals invalidated the metrics and standards.

Having granted the petition for writ of certiorari, 573 U.S. ----, 134 S.Ct. 2865, 189 L.Ed.2d 805 (2014), this Court now holds that, for purposes of determining the validity of the metrics and standards, Amtrak is a governmental entity. Although Amtrak's actions here were governmental, substantial questions respecting the lawfulness of the metrics and standards-including questions implicating the Constitution's structural separation of powers and the Appointments Clause, U.S. Const., Art. II, § 2, cl. 2-may still remain in the case. As those matters have not yet been passed upon by the Court of Appeals, this case is remanded.

I

A

Amtrak is a corporation established and authorized by a detailed federal statute enacted by Congress for no less a purpose than to preserve passenger services and routes on our Nation's railroads. See Lebron v. National Railroad Passenger Corporation,513 U.S. 374, 383-384, 115 S.Ct. 961, 130 L.Ed.2d 902 (1995); National Railroad Passenger Corporation v. Atchison, T. & S.F.R. Co.,470 U.S. 451, 453-457, 105 S.Ct. 1441, 84 L.Ed.2d 432 (1985);

*1229see also Rail Passenger Service Act of 1970, 84 Stat. 1328. Congress recognized that Amtrak, of necessity, must rely for most of its operations on track systems owned by the freight railroads. So, as a condition of relief from their common-carrier duties, Congress required freight railroads to allow Amtrak to use their tracks and facilities at rates agreed to by the parties-or in the event of disagreement to be set by the Interstate Commerce Commission (ICC). See 45 U.S.C. §§ 561, 562 (1970 ed.). The Surface Transportation Board (STB) now occupies the dispute-resolution role originally assigned to the ICC. See 49 U.S.C. § 24308(a) (2012 ed.). Since 1973, Amtrak has received a statutory preference over freight transportation in using rail lines, junctions, and crossings. See § 24308(c).

The metrics and standards at issue here are the result of a further and more recent enactment. Concerned by poor service, unreliability, and delays resulting from freight traffic congestion, Congress passed the Passenger Rail Investment and Improvement Act (PRIIA) in 2008. See 122 Stat. 4907. Section 207(a) of the PRIIA provides for the creation of the metrics and standards:

"Within 180 days after the date of enactment of this Act, the Federal Railroad Administration and Amtrak shall jointly, in consultation with the Surface Transportation Board, rail carriers over whose rail lines Amtrak trains operate, States, Amtrak employees, nonprofit employee organizations representing Amtrak employees, and groups representing Amtrak passengers, as appropriate, develop new or improve existing metrics and minimum standards for measuring the performance and service quality of intercity passenger train operations, including cost recovery, on-time performance and minutes of delay, ridership, on-board services, stations, facilities, equipment, and other services." Id.,at 4916.

Section 207(d) of the PRIIA further provides:

"If the development of the metrics and standards is not completed within the 180-day period required by subsection (a), any party involved in the development of those standards may petition the Surface Transportation Board to appoint an arbitrator to assist the parties in resolving their disputes through binding arbitration." Id.,at 4917.

The PRIIA specifies that the metrics and standards created under § 207(a) are to be used for a variety of purposes. Section 207(b) requires the FRA to "publish a quarterly report on the performance and service quality of intercity passenger train operations" addressing the specific elements to be measured by the metrics and standards. Id.,at 4916-4917. Section 207(c) provides that, "[t]o the extent practicable, Amtrak and its host rail carriers shall incorporate the metrics and standards developed under subsection (a) into their access and service agreements." Id.,at 4917. And § 222(a) obliges Amtrak, within one year after the metrics and standards are established, to "develop and implement a plan to improve on-board service pursuant to the metrics and standards for such service developed under [§ 207(a) ]." Id.,at 4932.

Under § 213(a) of the PRIIA, the metrics and standards also may play a role in prompting investigations by the STB and in subsequent enforcement actions. For instance, "[i]f the on-time performance of any intercity passenger train averages less than 80 percent for any 2 consecutive calendar quarters," the STB may initiate an investigation "to determine whether and to what extent delays ... are due to causes that could reasonably be addressed ... by *1230Amtrak or other intercity passenger rail operators." Id.,at 4925-4926. While conducting an investigation under § 213(a), the STB "has authority to review the accuracy of the train performance data and the extent to which scheduling and congestion contribute to delays" and shall "obtain information from all parties involved and identify reasonable measures and make recommendations to improve the service, quality, and on-time performance of the train." Id.,at 4926. Following an investigation, the STB may award damages if it "determines that delays or failures to achieve minimum standards ... are attributable to a rail carrier's failure to provide preference to Amtrak over freight transportation." Ibid.The STB is further empowered to "order the host rail carrier to remit" damages "to Amtrak or to an entity for which Amtrak operates intercity passenger rail service." Ibid.

B

In March 2009, Amtrak and the FRA published a notice in the Federal Register inviting comments on a draft version of the metrics and standards. App. 75-76. The final version of the metrics and standards was issued jointly by Amtrak and the FRA in May 2010. Id.,at 129-144. The metrics and standards address, among other matters, Amtrak's financial performance, its scores on consumer satisfaction surveys, and the percentage of passenger-trips to and from underserved communities.

Of most importance for this case, the metrics and standards also address Amtrak's on-time performance and train delays caused by host railroads. The standards associated with the on-time performance metrics require on-time performance by Amtrak trains at least 80% to 95% of the time for each route, depending on the route and year. Id.,at 133-135. With respect to "host-responsible delays"-that is to say, delays attributed to the railroads along which Amtrak trains travel-the metrics and standards provide that "[d]elays must not be more than 900 minutes per 10,000 Train-Miles." Id.,at 138. Amtrak conductors determine responsibility for particular delays. Ibid.,n. 23.

In the District Court for the District of Columbia, respondent alleged injury to its members from being required to modify their rail operations, which mostly involve freight traffic, to satisfy the metrics and standards. Respondent claimed that § 207 "violates the nondelegation doctrine and the separation of powers principle by placing legislative and rulemaking authority in the hands of a private entity [Amtrak] that participates in the very industry it is supposed to regulate."Id.,at 176-177, Complaint ¶ 51. Respondent also asserted that § 207 violates the Fifth Amendment Due Process Clause by "[v]esting the coercive power of the government" in Amtrak, an "interested private part[y]." Id.,at 177, ¶¶ 53-54. In its prayer for relief respondent sought, among other remedies, a declaration of § 207's unconstitutionality and invalidation of the metrics and standards. Id.,at 177.

The District Court granted summary judgment to petitioners on both claims. See 865 F.Supp.2d 22 (D.C.2012). Without deciding whether Amtrak must be deemed private or governmental, it rejected respondent's nondelegation argument on the ground that the FRA, the STB, and the political branches exercised sufficient control over promulgation and enforcement of the metrics and standards so that § 207 is constitutional. See id.,at 35.

The Court of Appeals for the District of Columbia Circuit reversed the judgment of the District Court as to the nondelegation and separation of powers claim, reasoning *1231in central part that because "Amtrak is a private corporation with respect to Congress's power to delegate ... authority," it cannot constitutionally be granted the "regulatory power prescribed in § 207." 721 F.3d 666, 677 (2013). The Court of Appeals did not reach respondent's due process claim. See ibid.

II

In holding that Congress may not delegate to Amtrak the joint authority to issue the metrics and standards-authority it described as "regulatory power," ibid.-the Court of Appeals concluded Amtrak is a private entity for purposes of determining its status when considering the constitutionality of its actions in the instant dispute. That court's analysis treated as controlling Congress' statutory command that Amtrak " 'is not a department, agency, or instrumentality of the United States Government.' " Id.,at 675(quoting 49 U.S.C. § 24301(a)(3)). The Court of Appeals also relied on Congress' pronouncement that Amtrak " 'shall be operated and managed as a for-profit corporation.' " 721 F.3d, at 675(quoting § 24301(a)(2)); see also id.,at 677("Though the federal government's involvement in Amtrak is considerable, Congress has both designated it a private corporation and instructed that it be managed so as to maximize profit. In deciding Amtrak's status for purposes of congressional delegations, these declarations are dispositive"). Proceeding from this premise, the Court of Appeals concluded it was impermissible for Congress to "delegate regulatory authority to a private entity." Id.,at 670; see also ibid.(holding Carter v. Carter Coal Co.,298 U.S. 238, 56 S.Ct. 855, 80 L.Ed. 1160 (1936), prohibits any such delegation of authority).

That premise, however, was erroneous. Congressional pronouncements, though instructive as to matters within Congress' authority to address, see, e.g., United States ex rel. Totten v. Bombardier Corp.,380 F.3d 488, 491-492 (C.A.D.C.2004)(Roberts, J.), are not dispositive of Amtrak's status as a governmental entity for purposes of separation of powers analysis under the Constitution. And an independent inquiry into Amtrak's status under the Constitution reveals the Court of Appeals' premise was flawed.

It is appropriate to begin the analysis with Amtrak's ownership and corporate structure. The Secretary of Transportation holds all of Amtrak's preferred stock and most of its common stock. Amtrak's Board of Directors is composed of nine members, one of whom is the Secretary of Transportation. Seven other Board members are appointed by the President and confirmed by the Senate.49 U.S.C. § 24302(a)(1). These eight Board members, in turn, select Amtrak's president. § 24302(a)(1)(B); § 24303(a). Amtrak's Board members are subject to salary limits set by Congress, § 24303(b); and the Executive Branch has concluded that all appointed Board members are removable by the President without cause, see 27 Op. Atty. Gen. 163 (2003).

Under further statutory provisions, Amtrak's Board members must possess certain qualifications. Congress has directed that the President make appointments based on an individual's prior experience in the transportation industry, § 24302(a)(1)(C), and has provided that not more than five of the seven appointed Board members be from the same political party, § 24302(a)(3). In selecting Amtrak's Board members, moreover, the President must consult with leaders of both parties in both Houses of Congress in order to "provide adequate and balanced representation of the major geographic regions *1232of the United States served by Amtrak." § 24302(a)(2).

In addition to controlling Amtrak's stock and Board of Directors the political branches exercise substantial, statutorily mandated supervision over Amtrak's priorities and operations. Amtrak must submit numerous annual reports to Congress and the President, detailing such information as route-specific ridership and on-time performance. § 24315. The Freedom of Information Act applies to Amtrak in any year in which it receives a federal subsidy, 5 U.S.C. § 552, which thus far has been every year of its existence. Pursuant to its status under the Inspector General Act of 1978 as a " 'designated Federal entity,' " 5 U.S.C.App. § 8G(a)(2), p. 521, Amtrak must maintain an inspector general, much like governmental agencies such as the Federal Communications Commission and the Securities and Exchange Commission. Furthermore, Congress conducts frequent oversight hearings into Amtrak's budget, routes, and prices. See, e.g., Hearing on Reviewing Alternatives to Amtrak's Annual Losses in Food and Beverage Service before the Subcommittee on Government Operations of the House Committee on Oversight and Government Reform, 113th Cong., 1st Sess., 5 (2013) (statement of Thomas J. Hall, chief of customer service, Amtrak); Hearing on Amtrak's Fiscal Year 2014 Budget: The Starting Point for Reauthorization before the Subcommittee on Railroads, Pipelines, and Hazardous Materials of the House Committee on Transportation and Infrastructure, 113th Cong., 1st Sess., p. 6 (2013) (statement of Joseph H. Boardman, president and chief executive officer, Amtrak).

It is significant that, rather than advancing its own private economic interests, Amtrak is required to pursue numerous, additional goals defined by statute. To take a few examples: Amtrak must "provide efficient and effective intercity passenger rail mobility," 49 U.S.C. § 24101(b); "minimize Government subsidies," § 24101(d); provide reduced fares to the disabled and elderly, § 24307(a); and ensure mobility in times of national disaster, § 24101(c)(9).

In addition to directing Amtrak to serve these broad public objectives, Congress has mandated certain aspects of Amtrak's day-to-day operations. Amtrak must maintain a route between Louisiana and Florida. § 24101(c)(6). When making improvements to the Northeast corridor, Amtrak must apply seven considerations in a specified order of priority. § 24902(b). And when Amtrak purchases materials worth more than $1 million, these materials must be mined or produced in the United States, or manufactured substantially from components that are mined, produced, or manufactured in the United States, unless the Secretary of Transportation grants an exemption. § 24305(f).

Finally, Amtrak is also dependent on federal financial support. In its first 43 years of operation, Amtrak has received more than $41 billion in federal subsidies. In recent years these subsidies have exceeded $1 billion annually. See Brief for Petitioners 5, and n. 2, 46.

Given the combination of these unique features and its significant ties to the Government, Amtrak is not an autonomous private enterprise. Among other important considerations, its priorities, operations, and decisions are extensively supervised and substantially funded by the political branches. A majority of its Board is appointed by the President and confirmed by the Senate and is understood by the Executive to be removable by the President at will. Amtrak was created by the Government, is controlled by the Government, and operates for the Government's benefit. Thus, in its joint *1233issuance of the metrics and standards with the FRA, Amtrak acted as a governmental entity for purposes of the Constitution's separation of powers provisions. And that exercise of governmental power must be consistent with the design and requirements of the Constitution, including those provisions relating to the separation of powers.

Respondent urges that Amtrak cannot be deemed a governmental entity in this respect. Like the Court of Appeals, it relies principally on the statutory directives that Amtrak "shall be operated and managed as a for profit corporation" and "is not a department, agency, or instrumentality of the United States Government." §§ 24301(a)(2)-(3). In light of that statutory language, respondent asserts, Amtrak cannot exercise the joint authority entrusted to it and the FRA by § 207(a).

On that point this Court's decision in Lebron v. National Railroad Passenger Corp.,513 U.S. 374, 115 S.Ct. 961, 130 L.Ed.2d 902 (1995), provides necessary instruction. In Lebron,Amtrak prohibited an artist from installing a politically controversial display in New York City's Penn Station. The artist sued Amtrak, alleging a violation of his First Amendment rights. In response Amtrak asserted that it was not a governmental entity, explaining that "its charter's disclaimer of agency status prevent[ed] it from being considered a Government entity." Id.,at 392, 115 S.Ct. 961. The Court rejected this contention, holding "it is not for Congress to make the final determination of Amtrak's status as a Government entity for purposes of determining the constitutional rights of citizens affected by its actions." Ibid.To hold otherwise would allow the Government "to evade the most solemn obligations imposed in the Constitution by simply resorting to the corporate form." Id.,at 397, 115 S.Ct. 961. Noting that Amtrak "is established and organized under federal law for the very purpose of pursuing federal governmental objectives, under the direction and control of federal governmental appointees," id.,at 398, 115 S.Ct. 961, and that the Government exerts its control over Amtrak "not as a creditor but as a policymaker," the Court held Amtrak "is an agency or instrumentality of the United States for the purpose of individual rights guaranteed against the Government by the Constitution." Id.,at 394, 399, 115 S.Ct. 961.

Lebronteaches that, for purposes of Amtrak's status as a federal actor or instrumentality under the Constitution, the practical reality of federal control and supervision prevails over Congress' disclaimer of Amtrak's governmental status. Lebroninvolved a First Amendment question, while in this case the challenge is to Amtrak's joint authority to issue the metrics and standards. But "[t]he structural principles secured by the separation of powers protect the individual as well." Bond v. United States,564 U.S. ----, ----, 131 S.Ct. 2355, 2365, 180 L.Ed.2d 269 (2011). Treating Amtrak as governmental for these purposes, moreover, is not an unbridled grant of authority to an unaccountable actor. The political branches created Amtrak, control its Board, define its mission, specify many of its day-to-day operations, have imposed substantial transparency and accountability mechanisms, and, for all practical purposes, set and supervise its annual budget. Accordingly, the Court holds that Amtrak is a governmental entity, not a private one, for purposes of determining the constitutional issues presented in this case.

III

Because the Court of Appeals' decision was based on the flawed premise that Amtrak should be treated as a private *1234entity, that opinion is now vacated. On remand, the Court of Appeals, after identifying the issues that are properly preserved and before it, will then have the instruction of the analysis set forth here. Respondent argues that the selection of Amtrak's president, who is appointed "not by the President ... but by the other eight Board Members," "call[s] into question Amtrak's structure under the Appointments Clause," Brief for Respondent 42; that § 207(d)'s arbitrator provision "is a plain violation of the nondelegation principle" and the Appointments Clause requiring invalidation of § 207(a), id.,at 26; and that Congress violated the Due Process Clause by "giv[ing] a federally chartered, nominally private, for-profit corporation regulatory authority over its own industry," id.,at 43. Petitioners, in turn, contend that "the metrics and standards do not reflect the exercise of 'rulemaking' authority or permit Amtrak to 'regulate other private entities,' " and thus do not raise nondelegation concerns. Reply Brief 5 (internal citation omitted). Because "[o]urs is a court of final review and not first view," Zivotofsky v. Clinton,566 U.S. ----, ----, 132 S.Ct. 1421, 1430, 182 L.Ed.2d 423 (2012)(internal quotation marks omitted), those issues-to the extent they are properly before the Court of Appeals-should be addressed in the first instance on remand.

The judgment of the Court of Appeals for the District of Columbia Circuit is vacated, and the case is remanded for further proceedings consistent with this opinion.

It is so ordered.

Justice ALITO, concurring.

I entirely agree with the Court that Amtrak is "a federal actor or instrumentality," as far as the Constitution is concerned. Ante,at 1233. "Amtrak was created by the Government, is controlled by the Government, and operates for the Government's benefit." Ante, at 1232. The Government even "specif[ies] many of its day-to-day operations" and "for all practical purposes, set[s] and supervise[s] its annual budget." Ante, at 1233. The District of Columbia Circuit understandably heeded 49 U.S.C. § 24301(a)(3), which proclaims that Amtrak "is nota department, agency, or instrumentality of the United States Government," but this statutory label cannot control for constitutional purposes. (Emphasis added). I therefore join the Court's opinion in full. I write separately to discuss what follows from our judgment.

I

This case, on its face, may seem to involve technical issues, but in discussing trains, tracks, metrics, and standards, a vital constitutional principle must not be forgotten: Liberty requires accountability.

When citizens cannot readily identify the source of legislation or regulation that affects their lives, Government officials can wield power without owning up to the consequences. One way the Government can regulate without accountability is by passing off a Government operation as an independent private concern. Given this incentive to regulate without saying so, everyone should pay close attention when Congress "sponsor[s] corporations that it specifically designate[s] notto be agencies or establishments of the United States Government." Lebron v. National Railroad Passenger Corporation,513 U.S. 374, 390, 115 S.Ct. 961, 130 L.Ed.2d 902 (1995).

Recognition that Amtrak is part of the Federal Government raises a host of constitutional questions.

II

I begin with something that may seem mundane on its face but that has a significant *1235relationship to the principle of accountability. Under the Constitution, all officers of the United States must take an oath or affirmation to support the Constitution and must receive a commission. See Art. VI, cl. 3 ("[A]ll executive and judicial Officers ... shall be bound by Oath or Affirmation, to support this Constitution"); Art. II, § 3, cl. 6 (The President "shall Commission all the Officers of the United States"). There is good reason to think that those who have not sworn an oath cannot exercise significant authority of the United States. See 14 Op. Atty. Gen. 406, 408 (1874) ("[A] Representative ... does not become a member of the House until he takes the oath of office"); 15 Op. Atty. Gen. 280, 281 (1877) (similar).*And this Court certainly has never treated a commission from the President as a mere wall ornament. See, e.g., Marbury v. Madison,1 Cranch 137, 156, 2 L.Ed. 60 (1803); see also id.,at 179(noting the importance of an oath).

Both the Oath and Commission Clauses confirm an important point: Those who exercise the power of Government are set apart from ordinary citizens. Because they exercise greater power, they are subject to special restraints. There should never be a question whether someone is an officer of the United States because, to be an officer, the person should have sworn an oath and possess a commission.

Here, respondent tells the Court that "Amtrak's board members do not take an oath of office to uphold the Constitution, as do Article II officers vested with rulemaking authority." Brief for Respondent 47. The Government says not a word in response. Perhaps there is an answer. The rule, however, is clear. Because Amtrak is the Government, ante, at 1233, those who run it need to satisfy basic constitutional requirements.

III

I turn next to the Passenger Rail Investment and Improvement Act of 2008's (PRIIA) arbitration provision. 122 Stat. 4907. Section 207(a) of the PRIIA provides that "the Federal Railroad Administration [ (FRA) ] and Amtrak shall jointly ... develop new or improve existing metrics and minimum standards for measuring the performance and service quality of intercity passenger train operations." Id.,at 4916. In addition, § 207(c) commands that "[t]o the extent practicable, Amtrak and its host rail carriers shall incorporate [those] metrics and standards ... into their access and service agreements." Under § 213(a) of the PRIIA, moreover, "the metrics and standards also may play a role in prompting investigations by the [Surface Transportation Board (STB) ] and in subsequent enforcement actions." Ante,at 1229.

This scheme is obviously regulatory. Section 207 provides that Amtrak and the FRA "shall jointly" create new standards, cf. e.g., 12 U.S.C. § 1831m(g)(4)(B)("The appropriate Federal banking agencies shall jointly issue rules of practice to implement this paragraph"), and that Amtrak and private rail carriers"shall incorporate" those standards into their agreements whenever "practicable," cf. e.g., BP America Production Co. v. Burton,549 U.S. 84, 88, 127 S.Ct. 638, 166 L.Ed.2d 494 (2006)(characterizing a command to " 'audit and reconcile, to the extent practicable, all current and past lease accounts' " as creating "duties" for the Secretary of the Interior (quoting 30 U.S.C. § 1711(c)(1))). The fact that private rail carriers sometimes may be required by federal law to *1236include the metrics and standards in their contracts by itself makes this a regulatory scheme.

"As is often the case in administrative law," moreover, "the metrics and standards lend definite regulatory force to an otherwise broad statutory mandate." 721 F.3d 666, 672 (C.A.D.C.2013). Here, though the nexus between regulation, statutory mandate, and penalty is not direct (for, as the Government explains, there is a pre-existing requirement that railroads give preference to Amtrak, see Brief for Petitioners 31-32 (citing 49 U.S.C. §§ 24308(c), (f))), the metrics and standards inherently have a "coercive effect," Bennett v. Spear,520 U.S. 154, 169, 117 S.Ct. 1154, 137 L.Ed.2d 281 (1997), on private conduct. Even the United States concedes, with understatement, that there is "perhaps some incentivizing effect associated with the metrics and standards." Brief for Petitioners 30. Because obedience to the metrics and standards materially reduces the risk of liability, railroads face powerful incentives to obey. See Bennett, supra,at 169-171, 117 S.Ct. 1154. That is regulatory power.

The language from § 207 quoted thus far should raise red flags. In one statute, Congress says Amtrak is not an "agency." 49 U.S.C. § 24301(a)(3). But then Congress commands Amtrak to act like an agency, with effects on private rail carriers. No wonder the D.C. Circuit ruled as it did.

The oddity continues, however. Section 207(d) of the PRIIA also provides that if the FRA and Amtrak cannot agree about what the regulatory standards should say, then "any party involved in the development of those standards may petition the Surface Transportation Board to appoint an arbitrator to assist the parties in resolving their disputes through binding arbitration." 122 Stat. 4917. The statute says nothing more about this "binding arbitration," including who the arbitrator should be.

Looking to Congress' use of the word "arbitrator," respondent argues that because the arbitrator can be a private person, this provision by itself violates the private nondelegation doctrine. The United States, for its part, urges the Court to read the term "arbitrator" to mean "public arbitrator" in the interests of constitutional avoidance.

No one disputes, however, that the arbitration provision is fair game for challenge, even though no arbitration occurred. The obvious purpose of the arbitration provision was to force Amtrak and the FRA to compromise, or else a third party would make the decision for them. The D.C. Circuit is correct that when Congress enacts a compromise-forcing mechanism, it is no good to say that the mechanism cannot be challenged because the parties compromised. See 721 F.3d, at 674. "[S]tack[ing] the deck in favor of compromise" was the whole point. Ibid.Unsurprisingly, this Court has upheld standing to bring a separation-of-powers challenge in comparable circumstances. See Metropolitan Washington Airports Authority v. Citizens for Abatement of Aircraft Noise, Inc.,501 U.S. 252, 264-265, 111 S.Ct. 2298, 115 L.Ed.2d 236 (1991)("[T]his 'personal injury' to respondents is 'fairly traceable' to the Board of Review's veto power because knowledge that the master plan was subject to the veto power undoubtedly influenced MWAA's Board of Directors" (emphasis added)); see also Free Enterprise Fund v. Public Company Accounting Oversight Bd.,561 U.S. 477, 512, n. 12, 130 S.Ct. 3138, 177 L.Ed.2d 706 (2010)("We cannot assume ... that the Chairman would have made the same appointments acting alone").

*1237As to the merits of this arbitration provision, I agree with the parties: If the arbitrator can be a private person, this law is unconstitutional. Even the United States accepts that Congress "cannot delegate regulatory authority to a private entity." 721 F.3d, at 670. Indeed, Congress, vested with enumerated "legislative Powers," Art. I, § 1, cannot delegate its "exclusively legislative" authority at all. Wayman v. Southard,10 Wheat. 1, 42-43, 6 L.Ed. 253 (1825)(Marshall, C.J.). The Court has invalidated statutes for that very reason. See A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495, 55 S.Ct. 837, 79 L.Ed. 1570 (1935); Panama Refining Co. v. Ryan,293 U.S. 388, 55 S.Ct. 241, 79 L.Ed. 446 (1935); see also Mistretta v. United States,488 U.S. 361, 373, n. 7, 109 S.Ct. 647, 102 L.Ed.2d 714 (1989)(citing, inter alia,Industrial Union Dept., AFL-CIO v. American Petroleum Institute,448 U.S. 607, 646, 100 S.Ct. 2844, 65 L.Ed.2d 1010 (1980)).

The principle that Congress cannot delegate away its vested powers exists to protect liberty. Our Constitution, by careful design, prescribes a process for making law, and within that process there are many accountability checkpoints. See INS v. Chadha,462 U.S. 919, 959, 103 S.Ct. 2764, 77 L.Ed.2d 317 (1983). It would dash the whole scheme if Congress could give its power away to an entity that is not constrained by those checkpoints. The Constitution's deliberative process was viewed by the Framers as a valuable feature, see, e.g.,Manning, Lawmaking Made Easy, 10 Green Bag 2d 202 (2007) ( "[B]icameralism and presentment make lawmaking difficult by design" (citing, inter alia,The Federalist No. 62, p. 378 (J. Madison), and No. 63, at 443-444 (A. Hamilton))), not something to be lamented and evaded.

Of course, this Court has " 'almost never felt qualified to second-guess Congress regarding the permissible degree of policy judgment that can be left to those executing or applying the law.' " Whitman v. American Trucking Assns., Inc.,531 U.S. 457, 474-475, 121 S.Ct. 903, 149 L.Ed.2d 1 (2001)(quoting Mistretta,supra,at 416, 109 S.Ct. 647(SCALIA, J., dissenting)). But the inherent difficulty of line-drawing is no excuse for not enforcing the Constitution. Rather, the formal reason why the Court does not enforce the nondelegation doctrine with more vigilance is that the other branches of Government have vested powers of their own that can be used in ways that resemble lawmaking. See, e.g.,Arlington v. FCC,569 U.S. ----, ---- - ----, n. 4, 133 S.Ct. 1863, 1873, n. 4, --- L.Ed.2d ---- (2013)(explaining that agency rulemakings "are exercises of-indeed, under our constitutional structure they must beexercises of-the 'executive Power' " (quoting Art. II, § 1, cl. 1)). Even so, "the citizen confronting thousands of pages of regulations-promulgated by an agency directed by Congress to regulate, say, 'in the public interest'-can perhaps be excused for thinking that it is the agency really doing the legislating." 569 U.S., at ---- - ----, 133 S.Ct., at 1879(ROBERTS, C.J., dissenting).

When it comes to private entities, however, there is not even a fig leaf of constitutional justification. Private entities are not vested with "legislative Powers." Art. I, § 1. Nor are they vested with the "executive Power," Art. II, § 1, cl. 1, which belongs to the President. Indeed, it raises "[d]ifficult and fundamental questions" about "the delegation of Executive power" when Congress authorizes citizen suits. Friends of the Earth, Inc. v. Laidlaw Environmental Services (TOC), Inc.,528 U.S. 167, 197, 120 S.Ct. 693, 145 L.Ed.2d 610 (2000)(KENNEDY, J., concurring). A citizen suit to enforce existing law, however, *1238is nothing compared to delegated power to create new law. By any measure, handing off regulatory power to a private entity is "legislative delegation in its most obnoxious form." Carter v. Carter Coal Co.,298 U.S. 238, 311, 56 S.Ct. 855, 80 L.Ed. 1160 (1936).

For these reasons, it is hard to imagine how delegating "binding" tie-breaking authority to a private arbitrator to resolve a dispute between Amtrak and the FRA could be constitutional. No private arbitrator can promulgate binding metrics and standards for the railroad industry. Thus, if the term "arbitrator" refers to a private arbitrator, or even the possibilityof a private arbitrator, the Constitution is violated. See 721 F.3d, at 674("[T]hat the recipients of illicitly delegated authority opted not to make use of it is no antidote. It is Congress'sdecision to delegate that is unconstitutional" (citing Whitman, supra,at 473, 121 S.Ct. 903)).

As I read the Government's briefing, it does not dispute any of this (other than my characterization of the PRIIA as regulatory, which it surely is). Rather than trying to defend a private arbitrator, the Government argues that the Court, for reasons of constitutional avoidance, should read the word "arbitrator" to mean "public arbitrator." The Government's argument, however, lurches into a new problem: Constitutional avoidance works only if the statute is susceptible to an alternative reading and that such an alternative reading would itself be constitutional.

Here, the Government's argument that the word "arbitrator" does not mean "private arbitrator" is in some tension with the ordinary meaning of the word. Although Government arbitrators are not unheard of, we usually think of arbitration as a form of "private dispute resolution." See, e.g., Stolt-Nielsen S.A. v. AnimalFeeds Int'l Corp.,559 U.S. 662, 685, 130 S.Ct. 1758, 176 L.Ed.2d 605 (2010).

Likewise, the appointment of a public arbitrator here would raise serious questions under the Appointments Clause. Unless an "inferior Office[r]" is at issue, Article II of the Constitution demands that the President appoint all "Officers of the United States" with the Senate's advice and consent. Art. II, § 2, cl. 2. This provision ensures that those who exercise the power of the United States are accountable to the President, who himself is accountable to the people. See Free Enterprise Fund,561 U.S., at 497-498, 130 S.Ct. 3138(citing The Federalist No. 72, p. 487 (J. Cooke ed. 1961) (A. Hamilton)). The Court has held that someone "who exercis[es] significant authority pursuant to the laws of the United States" is an "Officer," Buckley v. Valeo,424 U.S. 1, 126, 96 S.Ct. 612, 46 L.Ed.2d 659 (1976)(per curiam), and further that an officer who acts without supervision must be a principal officer, see Edmond v. United States,520 U.S. 651, 663, 117 S.Ct. 1573, 137 L.Ed.2d 917 (1997)( "[W]e think it evident that 'inferior officers' are officers whose work is directed and supervised at some level by others who were appointed by Presidential nomination with the advice and consent of the Senate"). While some officers may be principal even if they have a supervisor, it is common ground that an officer without a supervisor must be principal. See id.,at 667, 117 S.Ct. 1573(Souter, J., concurring in part and concurring in judgment).

Here, even under the Government's public-arbitrator theory, it looks like the arbitrator would be making law without supervision-again, it is "binding arbitration." Nothing suggests that those words mean anything other than what they say. This means that an arbitrator could set the metrics and standards that "shall" become *1239part of a private railroad's contracts with Amtrak whenever "practicable." As to that "binding" decision, who is the supervisor? Inferior officers can do many things, but nothing final should appear in the Federal Register unless a Presidential appointee has at least signed off on it. See 75 Fed.Reg. 26839 (2010)(placing the metrics and standards in the Federal Register); Edmond, supra,at 665, 117 S.Ct. 1573.

IV

Finally, the Board of Amtrak, and, in particular, Amtrak's president, also poses difficult constitutional problems. As the Court observes, "Amtrak's Board of Directors is composed of nine members, one of whom is the Secretary of Transportation. Seven other Board members are appointed by the President and confirmed by the Senate. These eight Board members, in turn, select Amtrak's president." Ante,at 1231 (citation omitted). In other words, unlike everyone else on the Board, Amtrak's president has not been appointed by the President and confirmed by the Senate.

As explained above, accountability demands that principal officers be appointed by the President. See Art. II, § 2, cl. 2. The President, after all, must have "the general administrative control of those executing the laws," Myers v. United States,272 U.S. 52, 164, 47 S.Ct. 21, 71 L.Ed. 160 (1926), and this principle applies with special force to those who can "exercis [e] significant authority" without direct supervision, Buckley, supra,at 126, 96 S.Ct. 612; see also Edmond, supra,at 663, 117 S.Ct. 1573. Unsurprisingly then, the United States defends the non-Presidential appointment of Amtrak's president on the ground that the Amtrak president is merely an inferior officer. Given Article II, for the Government to argue anything else would be surrender.

This argument, however, is problematic. Granted, a multimember body may head an agency. See Free Enterprise Fund, supra,at 512-513, 130 S.Ct. 3138. But those who head agencies must be principal officers. See Edmond, supra,at 663, 117 S.Ct. 1573. It would seem to follow that because agency heads must be principal officers, every member of a multimember body heading an agency must also be a principal officer. After all, every member of a multimember body could cast the deciding vote with respect to a particular decision. One would think that anyone who has the unilateral authority to tip a final decision one way or the other cannot be an inferior officer.

The Government's response is tucked away in a footnote. It contends that because Amtrak's president serves at the pleasure of the other Board members, he is only an inferior officer. See Reply Brief for Petitioners 14, n. 6. But the Government does not argue that the president of Amtrak cannot cast tie-breaking votes. Assuming he can vote when the Board of Directors is divided, it makes no sense to think that the side with which the president agreeswill demand his removal.

In any event, even assuming that Amtrak's president could be an inferior officer, there would still be another problem: Amtrak's Board may lack constitutional authority to appoint inferior officers. The Appointments Clause provides an exception from the ordinary rule of Presidential appointment for "inferior Officers," but that exception has accountability limits of its own, namely, that Congress may only vest the appointment power "in the President alone, in the Courts of Law, or in the Heads of Departments." Art. II, § 2, cl. 2. Although a multimember body like Amtrak's Board canhead a Department, here it is not at all clear that Amtrak isa Department.

*1240A "Department" may not be "subordinate to or contained within any other such component" of the Executive Branch. Free Enterprise Fund,561 U.S., at 511, 130 S.Ct. 3138. As explained above, however, in jointly creating metrics and standards, Amtrak may have to give way to an arbitrator appointed by the STB. Does that mean that Amtrak is "subordinate to" the STB? See also 49 U.S.C. § 24308(explaining the STB's role in disputes between Amtrak and rail carriers). At the same time, the Secretary of Transportation sits on Amtrak's Board and controls some aspects of Amtrak's relationship with rail carriers. See, e.g.,§§ 24302(a)(1), 24309(d)(2). The Secretary of Transportation also has authority to exempt Amtrak from certain statutory requirements. See § 24305(f)(4). Does that mean that Amtrak is "subordinate to or contained within" the Department of Transportation? (The STB, of course, also may be "subordinate to or contained within" the Department of Transportation. If so, this may further suggest that that Amtrak is not a Department, and also further undermine the STB's ability to appoint an arbitrator). All of these are difficult questions.

* * *

In sum, while I entirely agree with the Court that Amtrak must be regarded as a federal actor for constitutional purposes, it does not by any means necessarily follow that the present structure of Amtrak is consistent with the Constitution. The constitutional issues that I have outlined (and perhaps others) all flow from the fact that no matter what Congress may call Amtrak, the Constitution cannot be disregarded.

Justice THOMAS, concurring in the judgment.

We have come to a strange place in our separation-of-powers jurisprudence. Confronted with a statute that authorizes a putatively private market participant to work hand-in-hand with an executive agency to craft rules that have the force and effect of law, our primary question-indeed, the primary question the parties ask us to answer-is whether that market participant is subject to an adequate measure of control by the Federal Government. We never even glance at the Constitution to see what it says about how this authority must be exercised and by whom.

I agree with the Court that the proper disposition in this case is to vacate the decision below and to remand for further consideration of respondent's constitutional challenge to the metrics and standards. I cannot join the majority's analysis, however, because it fails to fully correct the errors that require us to vacate the Court of Appeals' decision. I write separately to describe the framework that I believe should guide our resolution of delegation challenges and to highlight serious constitutional defects in the Passenger Rail Investment and Improvement Act of 2008 (PRIIA) that are properly presented for the lower courts' review on remand.

I

The Constitution does not vest the Federal Government with an undifferentiated "governmental power." Instead, the Constitution identifies three types of governmental power and, in the Vesting Clauses, commits them to three branches of Government. Those Clauses provide that "[a]ll legislative Powers herein granted shall be vested in a Congress of the United States," Art. I, § 1, "[t]he executive Power shall be vested in a President of the United States," Art. II, § 1, cl. 1, and "[t]he judicial Power of the United States, shall be vested in one supreme Court, and in such inferior Courts as the Congress may *1241from time to time ordain and establish," Art. III, § 1.

These grants are exclusive. See Whitman v. American Trucking Assns., Inc.,531 U.S. 457, 472, 121 S.Ct. 903, 149 L.Ed.2d 1 (2001)(legislative power); Free Enterprise Fund v. Public Company Accounting Oversight Bd.,561 U.S. 477, 496-497, 130 S.Ct. 3138, 177 L.Ed.2d 706 (2010)(executive power); Stern v. Marshall,564 U.S. ----, ---- - ----, 131 S.Ct. 2594, 2608-2609, 180 L.Ed.2d 475 (2011)(judicial power). When the Government is called upon to perform a function that requires an exercise of legislative, executive, or judicial power, only the vested recipient of that power can perform it.

In addition to allocating power among the different branches, the Constitution identifies certain restrictions on the mannerin which those powers are to be exercised. Article I requires, among other things, that "[e]very Bill which shall have passed the House of Representatives and the Senate, shall, before it become a Law, be presented to the President of the United States; If he approve he shall sign it, but if not he shall return it...." Art. I, § 7, cl. 2. And although the Constitution is less specific about how the President shall exercise power, it is clear that he may carry out his duty to take care that the laws be faithfully executed with the aid of subordinates. Myers v. United States,272 U.S. 52, 117, 47 S.Ct. 21, 71 L.Ed. 160 (1926), overruled in part on unrelated grounds in Humphrey's Executor v. United States,295 U.S. 602, 55 S.Ct. 869, 79 L.Ed. 1611 (1935).

When the Court speaks of Congress improperly delegating power, what it means is Congress' authorizing an entity to exercise power in a manner inconsistent with the Constitution. For example, Congress improperly "delegates" legislative power when it authorizes an entity other than itself to make a determination that requires an exercise of legislative power. See Whitman, supra,at 472, 121 S.Ct. 903. It also improperly "delegates" legislative power to itself when it authorizes itself to act without bicameralism and presentment. See, e.g., INS v. Chadha,462 U.S. 919, 103 S.Ct. 2764, 77 L.Ed.2d 317 (1983). And Congress improperly "delegates"-or, more precisely, authorizes the exercise of, see Perez v. Mortgage Bankers Assn.,135 S.Ct., at 1224 - 1225, 2015 WL 998535, at *24(THOMAS, J., concurring in judgment) (noting that Congress may not "delegate" power it does not possess)-executive power when it authorizes individuals or groups outside of the President's control to perform a function that requires the exercise of that power. See, e.g., Free Enterprise Fund, supra.

In order to be able to adhere to the provisions of the Constitution that allocate and constrain the exercise of these powers, we must first understand their boundaries. Here, I do not purport to offer a comprehensive description of these powers. My purpose is to identify principles relevant to today's dispute, with an eye to offering guidance to the lower courts on remand. At issue in this case is the proper division between legislative and executive powers. An examination of the history of those powers reveals how far our modern separation-of-powers jurisprudence has departed from the original meaning of the Constitution.

II

The allocation of powers in the Constitution is absolute, Perez, 135 S.Ct., at 1214 - 1218, 2015 WL 998535, at *15-17(opinion of THOMAS, J.), but it does not follow that there is no overlap between the three categories of governmental power. Certain functions may be performed by two or more branches without either exceeding its *1242enumerated powers under the Constitution. Resolution of claims against the Government is the classic example. At least when Congress waives its sovereign immunity, such claims may be heard by an Article III court, which adjudicates such claims by an exercise of judicial power. See Ex parte Bakelite Corp.,279 U.S. 438, 452, 49 S.Ct. 411, 73 L.Ed. 789 (1929). But Congress may also provide for an executive agency to adjudicate such claims by an exercise of executive power. See ibid.Or Congress may resolve the claims itself, legislating by special Act. See ibid.The question is whether the particular function requires the exercise of a certain type of power; if it does, then only the branch in which that power is vested can perform it. For example, although this Court has long recognized that it does not necessarily violate the Constitution for Congress to authorize another branch to make a determination that it could make itself, there are certain core functions that require the exercise of legislative power and that only Congress can perform. Wayman v. Southard,10 Wheat. 1, 43, 6 L.Ed. 253 (1825)(distinguishing between those functions Congress must perform itself and those it may leave to another branch).

The function at issue here is the formulation of generally applicable rules of private conduct. Under the original understanding of the Constitution, that function requires the exercise of legislative power. By corollary, the discretion inherent in executive power does notcomprehend the discretion to formulate generally applicable rules of private conduct.

A

The idea that the Executive may not formulate generally applicable rules of private conduct emerged even before the theory of the separation of powers on which our Constitution was founded.

The idea has ancient roots in the concept of the "rule of law," which has been understood since Greek and Roman times to mean that a ruler must be subject to the law in exercising his power and may not govern by will alone. M. Vile, Constitutionalism and the Separation of Powers 25 (2d ed. 1998); 2 Bracton, De Legibus et Consuetudinibus Angliae 33 (G. Woodbine ed., S. Thorne transl. 1968). The principle that a ruler must govern according to law "presupposes at least two distinct operations, the making of law, and putting it into effect." Vile, supra,at 24. Although it was originally thought "that the rule of law was satisfied if a king made good laws and always acted according to them," it became increasingly apparent over time that the rule of law demanded that the operations of "making" law and of "putting it into effect" be kept separate. W. Gwyn, The Meaning of the Separation of Powers 35 (1965); see also id.,at 8-9. But when the King's power was at its height, it was still accepted that his "principal duty ... [was], to govern his peopleaccording to law." 1 W. Blackstone, Commentaries on the Laws of England 226 (1765) (Commentaries) (emphasis added).

An early expression of this idea in England is seen in the "constitutional" law concerning crown proclamations. Even before a more formal separation of powers came about during the English Civil War, it was generally thought that the King could not use his proclamation power to alter the rights and duties of his subjects. P. Hamburger, Is Administrative Law Unlawful? 33-34 (2014) (Hamburger). This power could be exercised by the King only in conjunction with Parliament and was exercised through statutes. Ibid.; see also M. Hale, The Prerogatives of the King 141, 171-172 (D. Yale ed. 1976). The King *1243might participate in "the legislative power" by giving his "assent" to laws created by the "concurrence" of "lords and commons assembled in parliament," but he could not of his own accord "make a law or impose a charge." Id.,at 141.

In 1539, King Henry VIII secured what might be called a "delegation" of the legislative power by prevailing on Parliament to pass the Act of Proclamations. Hamburger 35-36. That Act declared that the King's proclamations would have the force and effect of an Act of Parliament. Id.,at 37. But the Act did not permit the King to deprive his subjects of their property, privileges and franchises, or their lives, except as provided by statutory or common law. Id.,at 37-38. Nor did the Act permit him to invalidate " 'any acts, [or] common laws standing at [that] time in strength and force.' " Id.,at 38 (quoting An Act that Proclamations Made by the King Shall be Obeyed, 31 Hen. VIII, ch. 8, in Eng. Stat. at Large 263 (1539)).

Even this limited delegation of lawmaking power to the King was repudiated by Parliament less than a decade later. Hamburger 38. Reflecting on this period in history, David Hume would observe that, when Parliament "gave to the king's proclamation the same force as to a statute enacted by parliament," it "made by one act a total subversion of the English constitution." 3 D. Hume, The History of England from the Invasion of Julius Ceasar to the Revolution in 1688, p. 266 (1983). By the 17th century, when English scholars and jurists began to articulate a more formal theory of the separation of powers, delegations of the type afforded to King Henry VIII were all but unheard of. Hale, supra,at 172-173.

This is not to say that the Crown did not endeavor to exercise the power to make rules governing private conduct. King James I made a famous attempt, see Perez, 135 S.Ct., at 1219 - 1221, 2015 WL 998535, at *19-20(opinion of THOMAS, J.), prompting the influential jurist Chief Justice Edward Coke to write that the King could not "change any part of the common law, nor create any offence by his proclamation, which was not an offence before, without Parliament." Case of Proclamations,12 Co. Rep. 74, 75, 77 Eng. Rep. 1352, 1353 (K.B. 1611). Coke associated this principle with Chapter 39 of the Magna Carta,1which he understood to guarantee that no subject would be deprived of a private right-that is, a right of life, liberty, or property-except in accordance with "the law of the land," which consisted only of statutory and common law. Chapman & McConnell, Due Process as Separation of Powers, 121 Yale L.J. 1672, 1688 (2012). When the King attempted to fashion rules of private conduct unilaterally, as he did in the Case of Proclamations,the resulting enforcement action could not be said to accord with "the law of the land."

John Locke echoed this view. "[F]reedom of men under government," he wrote, "is to have a standing rule to live by, common to every one of that society, and made by the legislative powererected in it ... and not to be subject to the inconstant, uncertain, unknown, arbitrary will of another man." J. Locke, Second Treatise of Civil Government § 22, p. 13 (J. Gough ed. 1947) (Locke) (emphasis added). It followed that this freedom required that the power to make the standing rules and the power to enforce them not lie in the same hands. See id.,§ 143, at 72. He further *1244concluded that "[t]he legislative c[ould not] transfer the power of making laws to any other hands: for it being but a delegated power from the people, they who have it [could not] pass it over to others." Id.,§ 141, at 71.2

William Blackstone, in his Commentaries, likewise maintained that the English Constitution required that no subject be deprived of core private rights except in accordance with the law of the land. See 1 Commentaries 129, 134, 137-138. He defined a "law" as a generally applicable "rule of civil conduct prescribed by the supreme power in a state, commanding what is right and prohibiting what is wrong." Id.,at 44 (internal quotation marks omitted). And he defined a tyrannical government as one in which "the right both of making and of enforcing the laws, is vested in one and the same man, or one and the same body of men," for "wherever these two powers are united together, there can be no public liberty." Id.,at 142. Thus, although Blackstone viewed Parliament as sovereign and capable of changing the constitution, id.,at 156, he thought a delegation of lawmaking power to be "disgrace[ful]," 4 id.,at 424; see also Hamburger 39, n. 17.

B

These principles about the relationship between private rights and governmental power profoundly influenced the men who crafted, debated, and ratified the Constitution. The document itself and the writings surrounding it reflect a conviction that the power to make the law and the power to enforce it must be kept separate, particularly with respect to the regulation of private conduct.

The Framers' dedication to the separation of powers has been well-documented, if only half-heartedly honored. See, e.g., Mistretta v. United States,488 U.S. 361, 380-381, 109 S.Ct. 647, 102 L.Ed.2d 714 (1989). Most famously, in The Federalist 47, Madison wrote that "[n]o political truth is certainly of greater intrinsic value, or is stamped with the authority of more enlightened patrons of liberty than" the separation of powers. The Federalist No. 47, p. 301 (C. Rossiter ed. 1961). "The accumulation of all powers, legislative, executive, and judiciary, in the same hands, ... may justly be pronounced the very definition of tyranny." Ibid.; see also Perez, 135 S.Ct., at 1216 - 1218, 2015 WL 998535, at *16-17(opinion of THOMAS, J.).

This devotion to the separation of powers is, in part, what supports our enduring conviction that the Vesting Clauses are exclusive and that the branch in which a power is vested may not give it up or otherwise reallocate it. The Framers were concerned not just with the starting allocation, but with the "gradual concentration of the several powers in the same department." The Federalist No. 51, at 321 (J. Madison). It was this fear that prompted the Framers to build checks and balances into our constitutional structure, *1245so that the branches could defend their powers on an ongoing basis. Ibid.; see also Perez, 135 S.Ct., at 1216 - 1217, 2015 WL 998535, at *16(opinion of THOMAS, J.).

In this sense, the founding generation did not subscribe to Blackstone's view of parliamentary supremacy. Parliament's violations of the law of the land had been a significant complaint of the American Revolution, Chapman & McConnell, supra,at 1699-1703. And experiments in legislative supremacy in the States had confirmed the idea that even the legislature must be made subject to the law. Perez,135 S.Ct., at 1214 - 1217, 2015 WL 998535, at *15-16(opinion of THOMAS, J.). James Wilson explained the Constitution's break with the legislative supremacy model at the Pennsylvania ratification convention:

"Sir William Blackstone will tell you, that in Britain ... the Parliament may alter the form of the government; and that its power is absolute, without control. The idea of a constitution, limiting and superintending the operations of legislative authority, seems not to have been accurately understood in Britain....
"To control the power and conduct of the legislature, by an overruling constitution, was an improvement in the science and practice of government reserved to the American states." 2 J. Elliot, Debates on the Federal Constitution 432 (2d ed. 1863); see also 4 id.,at 63 (A. Maclaine) (contrasting Congress, which "is to be guided by the Constitution" and "cannot travel beyond its bounds," with the Parliament described in Blackstone's Commentaries).

As an illustration of Blackstone's contrasting model of sovereignty, Wilson cited the Act of Proclamations, by which Parliament had delegated legislative power to King Henry VIII. 2 id.,at 432 (J. Wilson); see supra,at 1243.

At the center of the Framers' dedication to the separation of powers was individual liberty. The Federalist No. 47, at 302 (J. Madison) (quoting Baron de Montesquieu for the proposition that " '[t]here can be no liberty where the legislative and executive powers are united in the same person, or body of magistrates' "). This was not liberty in the sense of freedom from all constraint, but liberty as described by Locke: "to have a standing rule to live by ... made by the legislative power," and to be free from "the inconstant, uncertain, unknown, arbitrary will of another man." Locke § 22, at 13. At the heart of this liberty were the Lockean private rights: life, liberty, and property. If a person could be deprived of these private rights on the basis of a rule (or a will) not enacted by the legislature, then he was not truly free. See D. Currie, The Constitution in the Supreme Court: The First One Hundred Years, 1789-1888, p. 272, and n. 268 (1985).3

This history confirms that the core of the legislative power that the Framers sought to protect from consolidation with the executive is the power to make "law" in the Blackstonian sense of generally applicable rules of private conduct.

III

Even with these sound historical principles in mind, classifying governmental *1246power is an elusive venture. Wayman,10 Wheat., at 43; The Federalist No. 37, at 228 (J. Madison). But it is no less important for its difficulty. The "check" the judiciary provides to maintain our separation of powers is enforcement of the rule of law through judicial review. Perez, 135 S.Ct., at 1219 - 1221, 2015 WL 998535, at *19-20(opinion of THOMAS, J.). We may not-without imperiling the delicate balance of our constitutional system-forgo our judicial duty to ascertain the meaning of the Vesting Clauses and to adhere to that meaning as the law. Perez, 135 S.Ct., at 1219 - 1221, 2015 WL 998535, at *19-21.

We have been willing to check the improper allocation of executive power, see, e.g., Free Enterprise Fund,561 U.S. 477, 130 S.Ct. 3138, 177 L.Ed.2d 706; Metropolitan Washington Airports Authority v. Citizens for Abatement of Aircraft Noise, Inc.,501 U.S. 252, 111 S.Ct. 2298, 115 L.Ed.2d 236 (1991), although probably not as often as we should, see, e.g., Morrison v. Olson,487 U.S. 654, 108 S.Ct. 2597, 101 L.Ed.2d 569 (1988). Our record with regard to legislative power has been far worse.

We have held that the Constitution categorically forbids Congress to delegate its legislative power to any other body, Whitman, 531 U.S., at 472, 121 S.Ct. 903, but it has become increasingly clear to me that the test we have applied to distinguish legislative from executive power largely abdicates our duty to enforce that prohibition. Implicitly recognizing that the power to fashion legally binding rules is legislative, we have nevertheless classified rulemaking as executive (or judicial) power when the authorizing statute sets out "an intelligible principle" to guide the rulemaker's discretion. Ibid.Although the Court may never have intended the boundless standard the "intelligible principle" test has become, it is evident that it does not adequately reinforce the Constitution's allocation of legislative power. I would return to the original understanding of the federal legislative power and require that the Federal Government create generally applicable rules of private conduct only through the constitutionally prescribed legislative process.

A

The Court first announced the intelligible principle test in J.W. Hampton, Jr. & Co. v. United States,276 U.S. 394, 48 S.Ct. 348, 72 L.Ed. 624 (1928). That case involved a challenge to a tariff assessed on a shipment of barium dioxide. Id.,at 400, 48 S.Ct. 348. The rate of the tariff had been set by proclamation of the President, pursuant to the so-called flexible tariff provision of the Tariff Act of 1922. Ibid.That provision authorized the President to increase or decrease a duty set by the statute if he determined that the duty did not " 'equalize ... differences in costs of production [of the item to which the duty applied] in the United States and the principal competing country.' " Id.,at 401, 48 S.Ct. 348(quoting 19 U.S.C. § 154 (1925 ed.)). The importer of the barium dioxide challenged the provision as an unconstitutional delegation of legislative power to the President. 276 U.S., at 404, 48 S.Ct. 348. Agreeing that Congress could not delegate legislative power, the Court nevertheless upheld the Act as constitutional, setting forth the now-famous formulation: "If Congress shall lay down by legislative act an intelligible principle to which the person or body authorized to fix such rates is directed to conform, such legislative action is not a forbidden delegation of legislative power." Id.,at 409, 48 S.Ct. 348.

Though worded broadly, the test rested on a narrow foundation. At the time J.W. Hamptonwas decided, most "delegations" by Congress to the Executive, including *1247the delegation at issue in that case, had taken the form of conditional legislation. See Marshall Field & Co. v. Clark,143 U.S. 649, 683-689, 12 S.Ct. 495, 36 L.Ed. 294 (1892). That form of legislation "makes the suspension of certain provisions and the going into operation of other provisions of an Act of Congress depend upon the action of the President based upon the occurrence of subsequent events, or the ascertainment by him of certain facts, to be made known by his proclamation." Id.,at 683, 12 S.Ct. 495.

The practice of conditional legislation dates back at least to the Third Congress in 1794.Id.,at 683-689, 12 S.Ct. 495(collecting statutes). It first came before the Court in Cargo of Brig Aurora v. United States,7 Cranch 382, 3 L.Ed. 378 (1813). There, the Court considered whether a Presidential proclamation could, by declaring that France had ceased to violate the neutral commerce of the United States, reinstate a legislative Act embargoing British goods. Id.,at 384, 388. The Court concluded that the proclamation was effective, seeing "no sufficient reaso[n] why the legislature should not exercise its discretion ... either expressly or conditionally, as their judgment should direct." Id.,at 388.

At least as defined by the Court in Field,the practice of conditional legislation does not seem to call on the President to exercise a core function that demands an exercise of legislative power. Congress creates the rule of private conduct, and the President makes the factual determination that causes that rule to go into effect. That type of factual determination seems similar to the type of factual determination on which an enforcement action is conditioned: Neither involves an exercise of policy discretion, and both are subject to review by a court. See Union Bridge Co. v. United States,204 U.S. 364, 386, 27 S.Ct. 367, 51 L.Ed. 523 (1907)(explaining that, when the Secretary of War determined whether bridges unreasonably obstruct navigation, he "could not be said to exercise strictly legislative ... power any more, for instance, than it could be said that Executive officers exercise such power when, upon investigation, they ascertain whether a particular applicant for a pension belongs to a class of persons who, under general rules prescribed by Congress, are entitled to pensions").

As it happens, however, conditional statutes sometimes did call for the President to make at least an implicit policy determination. For example, a 1794 provision entitled "An Act to authorize the President of the United States to lay, regulate and revoke Embargoes," ch. 41, 1 Stat. 372, called on the President to impose an embargo on shipping "whenever, in his opinion, the public safety shall so require...." Ibid.The statutes at issue in Fieldand J.W. Hamptoncould similarly be viewed as calling for built-in policy judgments. See Schoenbrod, The Delegation Doctrine: Could The Court Give It Substance? 83 Mich. L.Rev. 1223, 1263-1264 (1985).4

*1248Such delegations of policy determinations pose a constitutional problem because they effectively permit the President to define some or all of the content of that rule of conduct. He may do so expressly-by setting out regulations specifying what conduct jeopardizes "the public safety," for example-or implicitly-by drawing distinctions on an ad hoc basis. In either event, he does so based on a policy judgment that is not reviewable by the courts, at least to the extent that the judgment falls within the range of discretion permitted him by the law. See id.,at 1255-1260.

The existence of these statutes should not be taken to suggest that the Constitution, as originally understood, would permit such delegations. The 1794 embargo statute involved the external relations of the United States, so the determination it authorized the President to make arguably did not involve an exercise of core legislative power. See id.,at 1260-1263(distinguishing the tariff statute at issue in Fieldand J.W. Hamptonon these grounds).5Moreover, the statute was never subjected to constitutional scrutiny. And when a statute of its kind-that is, a tariff statute calling for an exercise of policy judgment-finally came before this Court for consideration in Field,the Court appeared to understand the statute as calling for no more than a factual determination. 143 U.S., at 693, 12 S.Ct. 495. The Court thus did not in that case endorse the principle that the Executive may fashion generally applicable rules of private conduct and appears not to have done so until the 20th century.

More to the point, J.W. Hamptoncan be read to adhere to the "factual determination" rationale from Field. The Court concluded its delegation analysis in J.W. Hamptonnot with the "intelligible principle" language, but by citing to Fieldfor the proposition that the "Act did not in any real sense invest the President with the power of legislation, because nothing involving the expediency or just operation of such legislation was left to the determination of the President."

*1249276 U.S., at 410, 48 S.Ct. 348(emphasis added); Field,143 U.S., at 692, 12 S.Ct. 495(explaining that an Act did not "in any real sense, invest the President with the power of legislation"). Congress had created a "named contingency," and the President "was the mere agent of the law-making department to ascertain and declare the event upon which its expressed will was to take effect." J.W. Hampton, supra,at 410-411, 48 S.Ct. 348.6

The analysis in Fieldand J.W. Hamptonmay have been premised on an incorrect assessment of the statutes before the Court, see n. 4, supra,but neither purported to define executive power as including the discretion to make generally applicable rules governing private conduct. To the extent that our modern jurisprudence treats them as sanctioning the "delegation" of such power, it misunderstands their historical foundations and expands the Court's holdings.

B

It is nevertheless true that, at the time J.W. Hamptonwas decided, there was a growing trend of cases upholding statutes pursuant to which the Executive exercised the power of "making ... subordinate rules within prescribed limits." Panama Refining Co. v. Ryan,293 U.S. 388, 421, 55 S.Ct. 241, 79 L.Ed. 446 (1935); see also id.,at 429, 55 S.Ct. 241(collecting cases). These cases involved executive power to make "binding rules of conduct," and they were found valid "as subordinate rules ... [when] within the framework of the policy which the legislature ha[d] sufficiently defined." Id.,at 428-429, 55 S.Ct. 241. To the extent that these cases endorsed authorizing the Executive to craft generally applicable rules of private conduct, they departed from the precedents on which they purported to rely.

The key decision to which these cases purport to trace their origin is Wayman,10 Wheat. 1, but that decision does not stand for the proposition those cases suggest. Although it upheld a statute authorizing courts to set rules governing the execution of their own judgments, id.,at 50, its reasoning strongly suggests that rules of private conduct were not the proper subject of rulemaking by the courts. Writing for the Court, Chief Justice Marshall surveyed a number of choices that could be left to rulemaking by the courts, explaining that they concerned only "the regulation of the conduct of the officer of the Court in giving effect to its judgments." Id.,at 45. When it came to specifying "the mode of obeying the mandate of a writ," however, he lamented that "so much of that which may be done by the judiciary, under the authority of the legislature, seems to be blended with that for which the legislature must expressly and directly provide." Id.,at 46.

This important passage reflects two premises that Chief Justice Marshall took for granted, but which are disregarded in later decisions relying on this precedent: First, reflected in his discussion of "blending" permissible with impermissible discretion, is the premise that it is not the *1250quantity,but the quality,of the discretion that determines whether an authorization is constitutional. Second, reflected in the contrast Chief Justice Marshall draws between the two types of rules, is the premise that the rules "for which the legislature must expressly and directly provide" are those regulating private conduct rather than those regulating the conduct of court officers.

Thus, when Chief Justice Marshall spoke about the "difficulty in discerning the exact limits within which the legislature may avail itself of the agency of its Courts," ibid.,he did not refer to the difficulty in discerning whether the Legislature's policy guidance is "sufficiently defined," see Panama Refining, supra,at 429, 55 S.Ct. 241, but instead the difficulty in discerning which rules affected substantive private rights and duties and which did not. We continue to wrestle with this same distinction today in our decisions distinguishing between substantive and procedural rules both in diversity cases and under the Rules Enabling Act. See, e.g., Shady Grove Orthopedic Associates, P.A. v. Allstate Ins. Co.,559 U.S. 393, 406-407, 130 S.Ct. 1431, 176 L.Ed.2d 311 (2010)("In the Rules Enabling Act, Congress authorized this Court to promulgate rules of procedure subject to its review, 28 U.S.C. § 2072(a), but with the limitation that those rules 'shall not abridge, enlarge or modify any substantive right,' § 2072(b)").7

C

Today, the Court has abandoned all pretense of enforcing a qualitative distinction between legislative and executive power. To the extent that the "intelligible principle" test was ever an adequate means of enforcing that distinction, it has been decoupled from the historical understanding of the legislative and executive powers and thus does not keep executive "lawmaking" within the bounds of inherent executive discretion. See Whitman,531 U.S., at 487, 121 S.Ct. 903(THOMAS, J., concurring) ("I am not convinced that the intelligible principle doctrine serves to prevent all cessions of legislative power"). Perhaps we were led astray by the optical illusion caused by different branches carrying out the same functions, believing that the separation of powers would be substantially honored so long as the encroachment were not too great. See, e.g., Loving v. United States,517 U.S. 748, 773, 116 S.Ct. 1737, 135 L.Ed.2d 36 (1996)("Separation-of-powers principles are vindicated, not disserved, by measured cooperation between two political branches of the Government, each contributing to a lawful objective through its own processes"). Or perhaps we deliberately departed from the separation, bowing to the exigencies of modern Government that were so often cited in cases upholding challenged delegations of rulemaking authority.8See, *1251e.g., Mistretta,488 U.S., at 372, 109 S.Ct. 647("[O]ur jurisprudence has been driven by a practical understanding that in our increasingly complex society, replete with ever changing and more technical problems, Congress simply cannot do its job absent an ability to delegate power under broad general directives").

For whatever reason, the intelligible principle test now requires nothing more than a minimal degree of specificity in the instructions Congress gives to the Executive when it authorizes the Executive to make rules having the force and effect of law. And because the Court has " 'almost never felt qualified to second-guess Congress regarding the permissible degree of policy judgment that can be left to those executing or applying the law,' " Whitman, supra,at 474-475, 121 S.Ct. 903(majority opinion) (quoting Mistretta, supra,at 416, 109 S.Ct. 647(SCALIA, J., dissenting)), the level of specificity it has required has been very minimal indeed, see 531 U.S., at 474, 121 S.Ct. 903(collecting cases upholding delegations to regulate in the "public interest"). Under the guise of the intelligible-principle test, the Court has allowed the Executive to go beyond the safe realm of factual investigation to make political judgments about what is "unfair" or "unnecessary." See, e.g., American Power & Light Co. v. SEC,329 U.S. 90, 104-105, 67 S.Ct. 133, 91 L.Ed. 103 (1946). It has permitted the Executive to make trade-offs between competing policy goals. See, e.g., Yakus v. United States,321 U.S. 414, 420, 423-426, 64 S.Ct. 660, 88 L.Ed. 834 (1944)(approving authorization for agency to set prices of commodities at levels that "will effectuate the [sometimes conflicting] purposes of th[e] Act"); see also Industrial Union Dept., AFL-CIO v. American Petroleum Institute,448 U.S. 607, 686-687, 100 S.Ct. 2844, 65 L.Ed.2d 1010 (1980)(Rehnquist, J., concurring in judgment) ("It is difficult to imagine a more obvious example of Congress simply avoiding a choice which was both fundamental for purposes of the statute and yet politically so divisive that the necessary decision or compromise was difficult, if not impossible, to hammer out in the legislative forge"). It has even permitted the Executive to decide which policy goals it wants to pursue. Entergy Corp. v. Riverkeeper, Inc.,556 U.S. 208, 218-223, 129 S.Ct. 1498, 173 L.Ed.2d 369 (2009)(concluding that Congress gave the Environmental Protection Agency (EPA) discretion to decide whether it should consider costs in making certain rules). And it has given sanction to the Executive to craft significant rules of private conduct. See, e.g., Whitman,531 U.S., at 472-476, 121 S.Ct. 903(approving delegation to EPA to set national standards for air quality); see also id.,at 488-489, 121 S.Ct. 903(Stevens, J., concurring in part and concurring in judgment) (arguing that the Clean Air Act effects a delegation of legislative power because it authorizes EPA to make prospective, generally applicable rules of conduct).

Our reluctance to second-guess Congress on the degreeof policy judgment is understandable; our mistake lies in assuming that anydegree of policy judgment is permissible when it comes to establishing generally applicable rules governing private conduct. To understand the "intelligible principle" test as permitting Congress to delegate policy judgment in this context is to divorce that test from its history. It may never be possible perfectly to distinguish between legislative and executive power, but that does not mean we may look the other way when the Government *1252asks us to apply a legally binding rule that is not enacted by Congress pursuant to Article I.

We should return to the original meaning of the Constitution: The Government may create generally applicable rules of private conduct only through the proper exercise of legislative power. I accept that this would inhibit the Government from acting with the speed and efficiency Congress has sometimes found desirable. In anticipating that result and accepting it, I am in good company. John Locke, for example, acknowledged that a legislative body "is usually too numerous, and so too slow for the dispatch requisite to execution." Locke § 160, at 80. But he saw that as a benefit for legislation, for he believed that the creation of rules of private conduct should be an irregular and infrequent occurrence. See id.,§ 143, at 72. The Framers, it appears, were inclined to agree. As Alexander Hamilton explained in another context, "It may perhaps be said that the power of preventing bad laws includes that of preventing good ones.... But this objection will have little weight with those who can properly estimate the mischiefs of that inconstancy and mutability in the laws, which form the greatest blemish in the character and genius of our governments." The Federalist No. 73, at 443-444. I am comfortable joining his conclusion that "[t]he injury which may possibly be done by defeating a few good laws will be amply compensated by the advantage of preventing a number of bad ones." Id.,at 444.

IV

Although the majority corrects an undoubted error in the framing of the delegation dispute below, it does so without placing that error in the context of the constitutional provisions that govern respondent's challenge to § 207 of the PRIIA.

A

Until the case arrived in this Court, the parties proceeded on the assumption that Amtrak is a private entity, albeit one subject to an unusual degree of governmental control.9The Court of Appeals agreed. 721 F.3d 666, 674-677 (C.A.D.C.2013). Because it also concluded that Congress delegated regulatory power to Amtrak, id.,at 670-674, and because this Court has held that delegations of regulatory power to private parties are impermissible, Carter v. Carter Coal Co.,298 U.S. 238, 311, 56 S.Ct. 855, 80 L.Ed. 1160 (1936), it held the delegation to be unconstitutional, 721 F.3d, at 677.

Although no provision of the Constitution expressly forbids the exercise of governmental power by a private entity, our so-called "private nondelegation doctrine" flows logically from the three Vesting Clauses. Because a private entity is neither Congress, nor the President or one of his agents, nor the Supreme Court or an inferior court established by Congress, the Vesting Clauses would categorically preclude it from exercising the legislative, executive, or judicial powers of the Federal Government. In short, the "private nondelegation doctrine" is merely one application of the provisions of the Constitution that forbid Congress to allocate power to an ineligible entity, whether governmental or private.

*1253For this reason, a conclusion that Amtrak is private-that is, not part of the Government at all-would necessarily mean that it cannot exercise these three categories of governmental power. But the converse is not true: A determination that Amtrak acts as a governmental entity in crafting the metrics and standards says nothing about whether it properly exercises governmental power when it does so. An entity that "was created by the Government, is controlled by the Government, and operates for the Government's benefit," ante, at 1232 (majority opinion), but that is not properly constituted to exercise a power under one of the Vesting Clauses, is no better qualified to be a delegatee of that power than is a purely private one. To its credit, the majority does not hold otherwise. It merely refutes the Court of Appeals' premise that Amtrak is private. But this answer could be read to suggest, wrongly, that our conclusion about Amtrak's status has some constitutional significance for "delegation" purposes.

B

The first step in the Court of Appeals' analysis on remand should be to classify the power that § 207 purports to authorize Amtrak to exercise. The second step should be to determine whether the Constitution's requirements for the exercise of that power have been satisfied.

1

Under the original understanding of the legislative and executive power, Amtrak's role in the creation of metrics and standards requires an exercise of legislative power because it allows Amtrak to decide the applicability of standards that provide content to generally applicable rules of private conduct.

Specifically, the metrics and standards alter the railroads' common-carrier obligations under 49 U.S.C. § 11101. Host railroads may enter into contracts with Amtrak under §§ 10908and 24308to fulfill their common-carrier obligations. The metrics and standards shape the types of contracts that satisfy the common-carrier obligations because § 207 provides that "Amtrak and its host rail carriers shall" include the metrics and standards in their contracts "[t]o the extent practicable." PRIIA § 207(c), 49 U.S.C. § 24101 (note)(emphasis added). As Justice ALITO explains, it matters little that the railroads may avoid incorporating the metrics and standards by arguing that incorporation is impracticable; the point is that they have a legal duty to try-a duty the substance of which is defined by the metrics and standards. See ante,at 1235 - 1236 (concurring opinion). And that duty is backed up by the Surface Transportation Board's coercive power to impose "reasonable terms" on host railroads when they fail to come to an agreement with Amtrak. § 24308(a)(2)(A)(ii). Presumably, when it is "practicable" to incorporate the metrics and standards, the Board is better positioned to deem such terms "reasonable" and to force them upon the railroads.

Although the Government's argument to the contrary will presumably change now that the Court has held that Amtrak is a governmental entity, it argued before this Court that Amtrak did not exercise meaningful power because other "governmental entities had sufficient control over the development and adoption of the metrics and standards." Brief for Petitioners 19-26. For support, the Government relied on two questionable precedents in which this Court held that Congress may grant private actors the power to determine whether a government regulation will go into effect: Currin v. Wallace,306 U.S. 1, 59 S.Ct. 379, 83 L.Ed. 441 (1939), and *1254United States v. Rock Royal Co-operative, Inc.,307 U.S. 533, 59 S.Ct. 993, 83 L.Ed. 1446 (1939). Those precedents reason that it does not require an exercise of legislative power to decide whether and when legally binding rules of private conduct will go into effect. Currin, supra,at 16-18, 59 S.Ct. 379; Rock Royal, supra,at 574-577, 59 S.Ct. 993. But as I have explained above, to the extent that this decision involves an exercise of policy discretion, it requires an exercise of legislative power. Supra,at 1251 - 1252. In any event, these precedents are directly contrary to our more recent holding that a discretionary "veto" necessarily involves an exercise of legislative power. See INS v. Chadha,462 U.S., at 952-953, 103 S.Ct. 2764; see also id.,at 987, 103 S.Ct. 2764(White, J., dissenting) (noting that the power Congress reserved to itself was virtually identical to the power it conferred on private parties in Currinand Rock Royal). As such, Currinand Rock Royalhave been discredited and lack any force as precedents.

Section 207 therefore violates the Constitution. Article I, § 1, vests the legislative power in Congress, and Amtrak is not Congress. The procedures that § 207 sets forth for enacting the metrics and standards also do not comply with bicameralism and presentment. Art. I, § 7. For these reasons, the metrics and standards promulgated under this provision are invalid.

2

I recognize, of course, that the courts below will be bound to apply our "intelligible principle" test. I recognize, too, that that test means so little that the courts are likely to conclude that § 207 calls for nothing more than the exercise of executive power. Having made that determination, the Court of Appeals must then determine whether Amtrak is constitutionally eligible to exercise executive power.

As noted, Article II of the Constitution vests the executive power in a "President of the United States of America." Art. II, § 1. Amtrak, of course, is not the President of the United States, but this fact does not immediately disqualify it from the exercise of executive power. Congress may authorize subordinates of the President to exercise such power, so long as they remain subject to Presidential control.

The critical question, then, is whether Amtrak is adequately subject to Presidential control. See Myers,272 U.S., at 117, 47 S.Ct. 21. Our precedents treat appointment and removal powers as the primary devices of executive control, Free Enterprise Fund,561 U.S., at 492, 130 S.Ct. 3138, and that should be the starting point of the Court of Appeals' analysis. As Justice ALITO's concurrence demonstrates, however, there are other constitutional requirements that the Court of Appeals should also scrutinize in deciding whether Amtrak is constitutionally eligible to exercise the power § 207 confers on it.

* * *

In this case, Congress has permitted a corporation subject only to limited control by the President to create legally binding rules. These rules give content to private railroads' statutory duty to share their private infrastructure with Amtrak. This arrangement raises serious constitutional questions to which the majority's holding that Amtrak is a governmental entity is all but a non sequitur. These concerns merit close consideration by the courts below and by this Court if the case reaches us again. We have too long abrogated our duty to enforce the separation of powers required by our Constitution. We have overseen and sanctioned the growth of an administrative system that concentrates the power to make laws and the power to enforce them in the hands of a vast and unaccountable administrative apparatus that finds no comfortable home in our constitutional *1255structure. The end result may be trains that run on time (although I doubt it), but the cost is to our Constitution and the individual liberty it protects.

2.2 What Do Agencies Do? 2.2 What Do Agencies Do?

By far the longest portion of this casebook, this subsection focuses on what agencies do and how they do it. As you read the materials in this subsection, keep two big questions in mind. First, what are the categories of agency action? As we will see, categorization of agency action is like the North Star of administrative law. Knowing what kind of agency action is being undertaken can often lead you directly to a result, as the APA's requirements are often fairly clear once we know what an agency action is--it's whether an agency action is X rather than Y that presents many difficult questions. Second, what steps are required for an agency to take a particular type of action. Don't forget about the materials in the introductory section: in many cases the procedures are clear, but in some cases they are not. What should courts do when agencies operate in this netherworld?

2.2.1 The Rulemaking/Adjudication Distinction 2.2.1 The Rulemaking/Adjudication Distinction

By far the most important categorization question in the APA is the rulemaking/adjudication distinction. As with the question of what is an agency, there are both statutory and constitutional dimensions to this question.

In the first set of cases, Londoner and Bi-Metallic, the Court deals with the distinction at the constitutional level. The question is what due process requires, and that question hinges on the categorical distinction between rulemaking and adjudication.

We then shift to the statutory question--the APA provides definitions of rulemaking and adjudication, and as we will see in later subsections, whether something is rulemaking or adjudication under the APA determines the steps that agencies need to take before taking either type of action.

There is a lot of overlap between how courts deal with the constitutional question and how they deal with the statutory question, due in large part to the fact that the APA's definition of rulemaking is considered by many to be incoherent. See Ronald M. Levin, The Case for (Finally) Fixing the APA's Definition of "Rule," 56 Admin. L. Rev. 1077 (2004). In fact, in 2016 the ABA Section on Administrative Law & Regulatory Practice (a section that you should all join!) issued consensus-driven recommendations to Congress to reform many sections of the APA, including the definition of "rule." See Christopher J. Walker, Modernizing the Administrative Procedure Act, 69 Admin. L. Rev. 629, 642 (2017).

The distinction between rulemaking and adjudication is anything but clear (despite its obvious importance), but see what you can come up with based on reading the following cases and definitions. We'll round out the fuller picture in class.

2.2.1.1 Londoner v. Denver, 210 U.S. 373 (1908) 2.2.1.1 Londoner v. Denver, 210 U.S. 373 (1908)

Londoner v. Denver, 210 U.S. 373 (1908)

 

Argued March 6, 9, 1908

Decided June 1, 1908

 

ERROR TO THE SUPREME COURT

OF THE STATE OF COLORADO

 

  1. JUSTICE MOODY delivered the opinion of the Court.

 

The plaintiffs in error began this proceeding in a state court of Colorado to relieve lands owned by them from an assessment of a tax for the cost of paving a street upon which the lands abutted. The relief sought was granted by the trial court, but its action was reversed by the supreme court of the state, which ordered judgment for the defendants. 33 Colo. 104, 80 P. 117. The case is here on writ of error. The supreme court held that the tax was assessed in conformity with the Constitution and laws of the state, and its decision of that question is conclusive.

 

The assignments of error relied upon are as follows:

 

"Fifth. The Supreme Court of Colorado more particularly erred in holding and deciding that the city authorities, in following the procedure in this Eighth Avenue Paving District, No. 1, of the City of Denver, Colorado, in the manner in which the record, evidence, and decree of the trial court affirmatively shows that they did, constituted due process of law as to these several appellees (now plaintiffs in error) as guaranteed by the Fourteenth Amendment of the Constitution of the United States."

 

The tax complained of was assessed under the provisions of the Charter of the City of Denver, which confers upon the city the power to make local improvements and to assess the cost upon property specially benefited. It does not seem necessary to set forth fully the elaborate provisions of the charter regulating the exercise of this power, except where they call for special examination.

 

It appears from the charter that, in the execution of the power to make local improvements and assess the cost upon the property specially benefited, the main steps to be taken by the city authorities are plainly marked and separated: 1. The board of public works must transmit to the city council a resolution ordering the work to be done and the form of an ordinance authorizing it and creating an assessment district. This it can do only upon certain conditions, one of which is that there shall first be filed a petition asking the improvement, signed by the owners of the majority of the frontage to be assessed. 2. The passage of that ordinance by the city council, which is given authority to determine conclusively whether the action of the board was duly taken. 3. The assessment of the cost upon the landowners after due notice and opportunity for hearing.

 

The fifth assignment, though general, vague, and obscure, fairly raises, we think, the question whether the assessment was made without notice and opportunity for hearing to those affected by it, thereby denying to them due process of law. The trial court found as a fact that no opportunity for hearing was afforded, and the supreme court did not disturb this finding. The record discloses what was actually done, and there seems to be no dispute about it. After the improvement was completed, the board of public works, in compliance with § 29 of the charter, certified to the city clerk a statement of the cost, and an apportionment of it to the lots of land to be assessed. Thereupon, the city clerk, in compliance with § 30, published a notice, stating, inter alia, that the written complaints or objections of the owners, if filed within thirty days, would be "heard and determined by the city council before the passage of any ordinance assessing the cost." Those interested therefore were informed that, if they reduced their complaints and objections to writing, and filed them within thirty days, those complaints and objections would be heard, and would be heard before any assessment was made. The notice given in this case, although following the words of the statute, did not fix the time for hearing, and apparently there were no stated sittings of the council acting as a board of equalization. But the notice purported only to fix the time for filing the complaints and objections, and to inform those who should file them that they would be heard before action. The statute expressly required no other notice, but it was sustained in the court below on the authority of Paulsen v. Portland, 149 U. S. 30, because there was an implied power in the city council give notice of the time for hearing. We think that the court rightly conceived the meaning of that case, and that the statute could be sustained only upon the theory drawn from it. Resting upon the assurance that they would be heard, the plaintiffs in error filed within the thirty days the following paper:

 

"Denver, Colorado, January 13, 1900"

"To the Honorable Board of Public Works and the Honorable Mayor and City Council of the City of Denver:"

"The undersigned, by Joshua Grozier, their attorney, do hereby most earnestly and strenuously protest and object to the passage of the contemplated or any assessing ordinance against the property in Eighth Avenue Paving District No. 1, so called, for each of the following reasons, to-wit:"

"1st. That said assessment and all and each of the proceedings leading up to the same were and are illegal, voidable, and void, and the attempted assessment, if made, will be void and uncollectible."

"2nd. That said assessment and the cost of said pretended improvement should be collected, if at all, as a general tax against the city at large, and not as a special assessment. "

"3d. That property in said city not assessed is benefited by the said pretended improvement, and certain property assessed is not benefited by said pretended improvement, and other property assessed is not benefited by said pretended improvement to the extent of the assessment; that the individual pieces of property in said district are not benefited to the extent assessed against them and each of them respectively; that the assessment is arbitrary, and property assessed in an equal amount is not benefited equally; that the boundaries of said pretended district were arbitrarily created without regard to the benefits or any other method of assessment known to law; that said assessment is outrageously large."

"Wherefore, because of the foregoing and numerous other good and sufficient reasons, the undersigned object and protest against the passage of the said proposed assessing ordinance."

 

This certainly was a complaint against an objection to the proposed assessment. Instead of affording the plaintiffs in error an opportunity to be heard upon its allegations, the city council, without notice to them, met as a board of equalization, not in a stated, but in a specially called, session and, without any hearing, adopted the following resolution:

 

"Whereas, complaints have been filed by the various persons and firms as the owners of real estate included within the Eighth Avenue Paving District No. 1, of the City of Denver, against the proposed assessments on said property for the cost of said paving, the names and description of the real estate respectively owned by such persons being more particularly described in the various complaints filed with the city clerk; and"

"Whereas, no complaint or objection has been filed or made against the apportionment of said assessment made by the board of public works of the City of Denver, but the complaints and objections filed deny wholly the right of the city to assess any district or portion of the assessable property of the City of Denver; therefore, be it"

"Resolved, by the City Council of the City of Denver, sitting as a board of equalization, that the apportionments of said assessment made by said board of public works be, and the same are hereby, confirmed and approved."

 

Subsequently, without further notice or hearing, the city council enacted the ordinance of assessment whose validity is to be determined in this case. The facts out of which the question on this assignment arises may be compressed into small compass. The first step in the assessment proceedings was by the certificate of the board of public works of the cost of the improvement and a preliminary apportionment of it. The last step was the enactment of the assessment ordinance. From beginning to end of the proceedings, the landowners, although allowed to formulate and file complaints and objections, were not afforded an opportunity to be heard upon them. Upon these facts, was there a denial by the State of the due process of law guaranteed by the Fourteenth Amendment to the Constitution of the United States?

 

In the assessment, apportionment, and collection of taxes upon property within their jurisdiction, the Constitution of the United States imposes few restrictions upon the states. In the enforcement of such restrictions as the Constitution does impose, this Court has regarded substance, and not form. But where the legislature of a state, instead of fixing the tax itself, commits to some subordinate body the duty of determining whether, in what amount, and upon whom it shall be levied, and of making its assessment and apportionment, due process of law requires that at some stage of the proceedings, before the tax becomes irrevocably fixed, the taxpayer shall have an opportunity to be heard, of which he must have notice, either personal, by publication, or by a law fixing the time and place of the hearing. Hagar v. Reclamation District, 111 U. S. 701Kentucky Railroad Tax Cases, 115 U. S. 321Winona & St. Peter Land Co. v. Minnesota, 159 U. S. 526159 U. S. 537Lent v. Tillson, 140 U. S. 316Glidden v. Harrington, 189 U. S. 255Hibben v. Smith, 191 U. S. 310Security Trust Co. v. Lexington, 203 U. S. 323Central of Georgia v. Wright, 207 U. S. 127. It must be remembered that the law of Colorado denies the landowner the right to object in the courts to the assessment, upon the ground that the objections are cognizable only by the board of equalization.

 

If it is enough that, under such circumstances, an opportunity is given to submit in writing all objections to and complaints of the tax to the board, then there was a hearing afforded in the case at bar. But we think that something more than that, even in proceedings for taxation, is required by due process of law. Many requirements essential in strictly judicial proceedings may be dispensed with in proceedings of this nature. But even here, a hearing, in its very essence, demands that he who is entitled to it shall have the right to support his allegations by argument, however brief, and, if need be, by proof, however informal. Pittsburgh &c. Railway Co. v. Backus, 154 U. S. 421154 U. S. 426Fallbrook Irrigation District v. Bradley, 164 U. S. 112164 U. S. 171 et seq.

 

It is apparent that such a hearing was denied to the plaintiffs in error. The denial was by the city council, which, while acting as a board of equalization, represents the state. Raymond v. Chicago Traction Co., 207 U. S. 20. The assessment was therefore void, and the plaintiffs in error were entitled to a decree discharging their lands from a lien on account of it. It is not now necessary to consider the tenth assignment of error.

 

Judgment reversed.

THE CHIEF JUSTICE and MR. JUSTICE HOLMES dissent.

2.2.1.2 Bi-Metallic Investment Co. v. State Bd. of Equalization of Colorado, 239 U.S. 441 (1915) 2.2.1.2 Bi-Metallic Investment Co. v. State Bd. of Equalization of Colorado, 239 U.S. 441 (1915)

Bi-Metallic Investment Co. v. State Board of Equalization, 239 U.S. 441 (1915)

 

ERROR TO THE SUPREME COURT

OF THE STATE OF COLORADO

 

  1. JUSTICE HOLMES delivered the opinion of the Court.

 

This is a suit to enjoin the State Board of Equalization and the Colorado Tax Commission from putting in force, and the defendant Pitcher, as Assessor of Denver, from obeying, an order of the boards, increasing the valuation of all taxable property in Denver forty percent. The order was sustained and the suit directed to be dismissed by the supreme court of the state. 56 Colo. 512. See 56 Colo. 343. The plaintiff is the owner of real estate in Denver, and brings the case here on the ground that it was given no opportunity to be heard, and that therefore its property will be taken without due process of law, contrary to the Fourteenth Amendment of the Constitution of the United States. That is the only question with which we have to deal.

 

For the purposes of decision, we assume that the constitutional question is presented in the baldest way -- that neither the plaintiff nor the assessor of Denver, who presents a brief on the plaintiff's side, nor any representative of the city and county, was given an opportunity to be heard, other than such as they may have had by reason of the fact that the time of meeting of the boards is fixed by law. On this assumption, it is obvious that injustice may be suffered if some property in the county already has been valued at its full worth. But if certain property has been valued at a rate different from that generally prevailing in the county, the owner has had his opportunity to protest and appeal as usual in our system of taxation, Hagar v. Reclamation District, 111 U. S. 701111 U. S. 709-710, so that it must be assumed that the property owners in the county all stand alike. The question, then, is whether all individuals have a constitutional right to be heard before a matter can be decided in which all are equally concerned -- here, for instance, before a superior board decides that the local taxing officers have adopted a system of undervaluation throughout a county, as notoriously often has been the case. The answer of this Court in the State Railroad Tax Cases, 92 U. S. 575, at least, as to any further notice, was that it was hard to believe that the proposition was seriously made.

 

Where a rule of conduct applies to more than a few people, it is impracticable that everyone should have a direct voice in its adoption. The Constitution does not require all public acts to be done in town meeting or an assembly of the whole. General statutes within the state power are passed that affect the person or property of individuals, sometimes to the point of ruin, without giving them a chance to be heard. Their rights are protected in the only way that they can be in a complex society -- by their power, immediate or remote, over those who make the rule. If the result in this case had been reached, as it might have been, by the state's doubling the rate of taxation, no one would suggest that the Fourteenth Amendment was violated unless every person affected had been allowed an opportunity to raise his voice against it before the body entrusted by the state constitution with the power. In considering this case in this Court we must assume that the proper state machinery has been used, and the question is whether, if the state constitution had declared that Denver had been undervalued as compared with the rest of the state, and had decreed that, for the current year, the valuation should be forty percent higher, the objection now urged could prevail. It appears to us that to put the question is to answer it. There must be a limit to individual argument in such matters if government is to go on. In Londoner v. Denver, a local board had to determine "whether, in what amount, and upon whom" a tax for paving a street should be levied for special benefits. A relatively small number of persons was concerned, who were exceptionally affected, in each case upon individual grounds, and it was held that they had a right to a hearing. But that decision is far from reaching a general determination dealing only with the principle upon which all the assessments in a county had been laid.

 

Judgment affirmed.

2.2.1.3 Definitions 2.2.1.3 Definitions

For the purpose of this subchapter—

(1) "agency" means each authority of the Government of the United States, whether or not it is within or subject to review by another agency, but does not include—

(A) the Congress;

(B) the courts of the United States;

(C) the governments of the territories or possessions of the United States;

(D) the government of the District of Columbia;


or except as to the requirements of section 552 of this title—

(E) agencies composed of representatives of the parties or of representatives of organizations of the parties to the disputes determined by them;

(F) courts martial and military commissions;

(G) military authority exercised in the field in time of war or in occupied territory; or

(H) functions conferred by sections 1738, 1739, 1743, and 1744 of title 12; subchapter II of chapter 471 of title 49; or sections 1884, 1891–1902, and former section 1641(b)(2), of title 50, appendix; 1


(2) "person" includes an individual, partnership, corporation, association, or public or private organization other than an agency;

(3) "party" includes a person or agency named or admitted as a party, or properly seeking and entitled as of right to be admitted as a party, in an agency proceeding, and a person or agency admitted by an agency as a party for limited purposes;

(4) "rule" means the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency and includes the approval or prescription for the future of rates, wages, corporate or financial structures or reorganizations thereof, prices, facilities, appliances, services or allowances therefor or of valuations, costs, or accounting, or practices bearing on any of the foregoing;

(5) "rule making" means agency process for formulating, amending, or repealing a rule;

(6) "order" means the whole or a part of a final disposition, whether affirmative, negative, injunctive, or declaratory in form, of an agency in a matter other than rule making but including licensing;

(7) "adjudication" means agency process for the formulation of an order;

(8) "license" includes the whole or a part of an agency permit, certificate, approval, registration, charter, membership, statutory exemption or other form of permission;

(9) "licensing" includes agency process respecting the grant, renewal, denial, revocation, suspension, annulment, withdrawal, limitation, amendment, modification, or conditioning of a license;

(10) "sanction" includes the whole or a part of an agency—

(A) prohibition, requirement, limitation, or other condition affecting the freedom of a person;

(B) withholding of relief;

(C) imposition of penalty or fine;

(D) destruction, taking, seizure, or withholding of property;

(E) assessment of damages, reimbursement, restitution, compensation, costs, charges, or fees;

(F) requirement, revocation, or suspension of a license; or

(G) taking other compulsory or restrictive action;


(11) "relief" includes the whole or a part of an agency—

(A) grant of money, assistance, license, authority, exemption, exception, privilege, or remedy;

(B) recognition of a claim, right, immunity, privilege, exemption, or exception; or

(C) taking of other action on the application or petition of, and beneficial to, a person;


(12) "agency proceeding" means an agency process as defined by paragraphs (5), (7), and (9) of this section;

(13) "agency action" includes the whole or a part of an agency rule, order, license, sanction, relief, or the equivalent or denial thereof, or failure to act; and

(14) "ex parte communication" means an oral or written communication not on the public record with respect to which reasonable prior notice to all parties is not given, but it shall not include requests for status reports on any matter or proceeding covered by this subchapter.

Notes

Historical and Revision Notes
DerivationU.S. CodeRevised Statutes and

Statutes at Large

(1) 5 U.S.C. 1001(a). June 11, 1946, ch. 324, §2(a), 60 Stat. 237.
  Aug. 8, 1946, ch. 870, §302, 60 Stat. 918.
  Aug. 10, 1946, ch. 951, §601, 60 Stat. 993.
  Mar. 31, 1947, ch. 30, §6(a), 61 Stat. 37.
  June 30, 1947, ch. 163, §210, 61 Stat. 201.
  Mar. 30, 1948, ch. 161, §301, 62 Stat. 99.
(2)–(13) 5 U.S.C. 1001 (less (a)). June 11, 1946, ch. 324, §2 (less (a)), 60 Stat. 237.

In paragraph (1), the sentence "Nothing in this Act shall be construed to repeal delegations of authority as provided by law," is omitted as surplusage since there is nothing in the Act which could reasonably be so construed.

In paragraph (1)(G), the words "or naval" are omitted as included in "military".

In paragraph (1)(H), the words "functions which by law expire on the termination of present hostilities, within any fixed period thereafter, or before July 1, 1947" are omitted as executed. Reference to the "Selective Training and Service Act of 1940" is omitted as that Act expired Mar. 31, 1947. Reference to the "Sugar Control Extension Act of 1947" is omitted as that Act expired on Mar. 31, 1948. References to the "Housing and Rent Act of 1947, as amended" and the "Veterans' Emergency Housing Act of 1946" have been consolidated as they are related. The reference to former section 1641(b)(2) of title 50, appendix, is retained notwithstanding its repeal by §111(a)(1) of the Act of Sept. 21, 1961, Pub. L. 87–256, 75 Stat. 538, since §111(c) of the Act provides that a reference in other Acts to a provision of law repealed by §111(a) shall be considered to be a reference to the appropriate provisions of Pub. L. 87–256.

In paragraph (2), the words "of any character" are omitted as surplusage.

In paragraph (3), the words "and a person or agency admitted by an agency as a party for limited purposes" are substituted for "but nothing herein shall be construed to prevent an agency from admitting any person or agency as a party for limited purposes".

In paragraph (9), a comma is supplied between the words "limitation" and "amendment" to correct an editorial error of omission.

In paragraph (10)(C), the words "of any form" are omitted as surplusage.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

References in Text

Sections 1884 and 1891–1902 of title 50, appendix, referred to in par. (1)(H), were a part of the various Housing and Rent Acts which were classified to section 1881 et seq. of the former Appendix to Title 50, War and National Defense, and had been repealed or omitted from the Code as executed prior to the elimination of the Appendix to Title 50. See Elimination of Title 50, Appendix note preceding section 1 of Title 50. Section 1641 of title 50, appendix, referred to in par. (1)(H), was repealed by Pub. L. 87–256, §111(a)(1), Sept. 21, 1961, 75 Stat. 538. See Historical and Revision Note above.

Codification

Section 551 of former Title 5, Executive Departments and Government Officers and Employees, was transferred to section 2242 of Title 7, Agriculture.

Amendments

2011—Par. (1)(H). Pub. L. 111–350 struck out "chapter 2 of title 41;" after "title 12;".

1994—Par. (1)(H). Pub. L. 103–272 substituted "subchapter II of chapter 471 of title 49; or sections" for "or sections 1622,".

1976—Par. (14). Pub. L. 94–409 added par. (14).

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–409 effective 180 days after Sept. 13, 1976, see section 6 of Pub. L. 94–409, set out as an Effective Date note under section 552b of this title.

Study and Reports on Administrative Subpoenas

Pub. L. 106–544, §7, Dec. 19, 2000, 114 Stat. 2719, provided that:

"(a) Study on Use of Administrative Subpoenas.—Not later than December 31, 2001, the Attorney General, in consultation with the Secretary of the Treasury, shall complete a study on the use of administrative subpoena power by executive branch agencies or entities and shall report the findings to the Committees on the Judiciary of the Senate and the House of Representatives. Such report shall include—

"(1) a description of the sources of administrative subpoena power and the scope of such subpoena power within executive branch agencies;

"(2) a description of applicable subpoena enforcement mechanisms;

"(3) a description of any notification provisions and any other provisions relating to safeguarding privacy interests;

"(4) a description of the standards governing the issuance of administrative subpoenas; and

"(5) recommendations from the Attorney General regarding necessary steps to ensure that administrative subpoena power is used and enforced consistently and fairly by executive branch agencies.

"(b) Report on Frequency of Use of Administrative Subpoenas.—

"(1) In general.—The Attorney General and the Secretary of the Treasury shall report in January of each year to the Committees on the Judiciary of the Senate and the House of Representatives on the number of administrative subpoenas issued by them under this section and the identity of the agency or component of the Department of Justice or the Department of the Treasury issuing the subpoena and imposing the charges.

"(2) Expiration.—The reporting requirement of this subsection shall terminate in 3 years after the date of the enactment of this section [Dec. 19, 2000]."

2.2.1.4 Sangamon Valley Television Corp. v. United States 2.2.1.4 Sangamon Valley Television Corp. v. United States

SANGAMON VALLEY TELEVISION CORPORATION, Petitioner v. UNITED STATES of America and Federal Communications Commission, Respondents American Broadcasting-Paramount Theatres, Inc., WMAY-TV, Inc., Signal Hill Telecasting Corporation, and Plains Television Corporation, Intervenors.

No. 13992.

United States Court of Appeals District of Columbia Circuit.

Argued March 19, 1959.

Decided May 8, 1959.

*222Mr. D. M. Patrick, Washington, D. C., with whom Messrs. Lester Cohen and Stanley S. Harris, Washington, D. C., were on the brief, for petitioner.

Mr. Robert A. Bicks, First Assistant, Antitrust Division, Department of Justice, of the bar of the Court of Appeals of New York, pro hac vice, by special leave of court, with whom Mr. Henry Geller, Attorney, Department of Justice, was on the brief, for respondent United States of America. Mr. Daniel M. Friedman, Attorney, Department of Justice, also entered an appearance for respondent United States of America.

Mr. Max D. Paglin, Assistant General Counsel, Federal Communications Commission, for respondent Federal Communications Commission. Messrs. John L. FitzGerald, General Counsel, Federal Communications Commission, and Edward W. Hautanen, Counsel, Federal Communications Commission, were on the brief for respondent Federal Communications Commission.

Mr. Marcus Cohn, Washington, D. C., with whom Mr. Paul Dobin, Washington, D. C., was on the brief, for intervenor WMAY-TV, Inc. Mr. Stanley S. Neu-stadt, Washington, D. C., also entered an appearance for intervenor WMAY-TV, Inc.

Mr. Monroe Oppenheimer, Washington, D. C., with whom Messrs. Abraham J. Harris and James H. Heller, Washington, D. C., were on the brief, for inter-venor Signal Hill Telecasting Corporation.

Messrs. James A. McKenna, Jr., and Vernon L. Wilkinson, Washington, D. C., were on the briefs for intervenors American Broadcasting-Paramount Theatres, Inc., and Plains Television Corporation.

Before Edgerton, Fahy, and Bastían, Circuit Judges.

EDGERTON, Circuit Judge.

When this case was here before, we said only:

“Petitioner seeks review of a rule-making decision of the Federal Communications Commission resulting in amendment of the. Table of Television Channel Assignment. The amendment assigned VHF Channel 2, Springfield, Illinois, to St. Louis, Missouri, and Terre Haute, Indiana, accompanied with the assignment of UHF Channels 26 and 36 to Springfield.
“Petitioner, applicant for Channel 2 at Springfield, attacks the decision as illegal because inconsistent with Section 307(b) of the Communications Act.1
“We are unable to sustain this attack. Upon the basis of a full hearing the Commission weighed the various factors involved and reached a reasoned decision within its competence. We find nothing arbitrary, capricious or otherwise illegal in the decision, and it accordingly is Affirmed.” 2

Sangamon Valley Television Corporation petitioned the Supreme Court for certiorari. The government’s brief in opposition concluded:

“We believe it proper, however, to call the Court’s attention to certain testimony given before the Subcommittee of Legislative Oversight of the House Committee on Interstate and Foreign Commerce on May 22, 26, and 28, 1958, and Juné 9, 10, and *22311, 1958, subsequent to the decision by the court of appeals affirming the Commission’s order. The testimony indicates that after the rule-making proceeding here had been initiated by Notice of Proposed Rulemaking, and while it was under consideration by the Commission, representatives of the St. Louis operator of a UHF station who was interested in having a new VHF channel assigned to St. Louis, and representatives of the petitioner and the other applicant for VHF Channel 2 in Springfield, who were interested in retaining that channel in Springfield, made ex parte presentations with respect to merits of the rule-making proceeding to various members of the Commission.
“These matters were not presented to the court below and are not presented by the petition. For this reason, the respondents do not and would not regard denial of certiorari as foreclosing appropriate consideration thereof by the court of appeals.” (pp. 7-8)

In granting Sangamon’s petition the Supreme Court said:

“In view of the representations in the Solicitor General’s brief on pages 7 and 8, concerning testimony given before the Subcommittee of Legislative Oversight of the House Committee on Interstate and Foreign Commerce subsequent to the decision by the Court of Appeals in this case, the judgment of the Court of Appeals is vacated and the case is remanded to the Court of Appeals for such action as it may deem appropriate.” 358 U.S. 49-50, 79 S.Ct. 94, 3 L.Ed.2d 47.

While the proceeding involved here was pending before the Commission it gave notice to the parties, on October 12, 1956, that

“Any interested person who is of the view that the proposals herein should not be adopted, or should not be adopted in the form set forth herein, may file with the Commission on or before November 15, 1956, written data, views, or arguments setting forth his comments. Comments in support of the proposals may also be filed on or before the same date. Comments or briefs in reply to such original comments as may be submitted should be filed within 15 days from the last day for filing said original comments or briefs. No additional comments may be filed unless (1) specifically requested by the Commission or (2) good cause for filing such additional comments is established. The Commission will consider all such additional comments submitted before taking further action in this matter, and if any comments appear to warrant the holding of a hearing, oral argument, or demonstration, notice of the time and place of such hearing, oral argument or demonstration will be given.” (Emphasis added.)

Several parties filed comments. The Commission extended the time for filing reply comments until December 28, 1956. The parties, including intervenor Signal Hill Telecasting Corporation, filed timely reply comments.

On March 1, 1957, the Commission issued the order under review. It shifted VHF Channel 2 from Springfield to St. Louis, shifted UHF Channels 26 and 36 to Springfield, and modified Signal Hill’s outstanding authorization for Channel 36 in St. Louis to permit temporary operation on Channel 2 subject to certain conditions.

Harry Tenenbaum, president of inter-venor Signal Hill, admitted to the Legislative Oversight Subcommittee that while the proceeding before the Commission was pending he spoke to its members individually “in privacy in their offices, not while they were sitting in a body as the Commission”, of his desire to have Channel 2; “knowing, of course, or expecting, that if Channel 2 went to St. Louis [he] would have good opportunity to get it.” He was “in all the Commissioners’ offices” and went “from Commissioner to Commissioner”. He “probably *224discussed” with every Commissioner his desire to have Channel 2. He testified that he had every Commissioner at one time or another as his luncheon guest, and that he gave turkeys to every Commissioner in 1955 and in 1956.

Finally, on February 20, 1957, seven weeks after the cut-off date, as extended, for filing reply comments and ten days before the Commission decided the case, Tenenbaum sent each Commissioner a letter in which he contended and tried to prove that “Channel 2, based in St. Louis, would reach 166,700 more homes in the state of Illinois than if it were based in Springfield, Illinois.”3 These letters did not go into the public record. The parties who were opposing the transfer of Channel 2 from Springfield to St. Louis could not question Tenenbaum’s contention, since they did not know he was making it. Its importance was great and perhaps critical, for the principal contention of the opposing parties was that the transfer would deprive Illinois of the “fair, efficient, and equitable distribution of radio service” to which the Communications Act entitles each state and community.4

Interested attempts “to influence any member of the Commission * * * except by the recognized and public processes” go “to the very core of the Commission’s quasi-judicial powers

* * Massachusetts Bay Telecasters, Inc., v. Federal Communications Commission, 104 U.S.App.D.C. 226, 261 F.2d 55, 66, 67. That case involved licensing, not rule-making. Ordinarily allocation of TV channels among communities is a matter of rule-making, governed by § 4 of the Administrative Procedure Act, 5 U.S.C.A. § 1003, rather than adjudication governed by § 5, 5 U.S.C.A. § 1004.5 The Commission and the intervenor contend that because the proceeding now on review was “rule-making”, ex parte attempts to influence the Commissioners did not invalidate it. The Department of Justice disagrees. On behalf of the United States, the Department urges that whatever the proceeding may be called it involved not only allocation of TV channels among communities but also resolution of conflicting private claims to a valuable privilege, and that basic fairness requires such a proceeding to be carried on in the open. We agree with the Department of Justice. Accordingly the private approaches to the members of the Commission vitiated its action and the proceeding must be reopened.6

We agree also that the Commission proceeding must be reopened for another reason. Agency action that substantially and prejudicially violates the agency’s rules cannot stand.7 At the time of this proceeding the Commission *225had no general regulations governing all rule-making, but when it proposed an allocation of TV channels to particular communities it was its usual practice, followed in this instance, to prescribe a cutoff date before which “Any interested person * * * may file with the Commission * * * written data, views, or arguments setting forth his comments” favoring or opposing the plan; a cut-off date for “comments or briefs in reply”; and that “No additional comments may be filed” without a request from the Commission or a showing of good cause.8 By plain implication, this rule forbade submitting material to the Commission’s members after the time for filing it with the Commission had gone by. The rule cannot be interpreted to permit parties to make off the record contentions that it forbids them to make on the record.9

In substantial agreement with the recommendation of the Department of Justice, the Commission’s Report and Order of March 1, 1957 is vacated and the case is remanded to the Commission with instructions to hold, with the aid of a specially appointed hearing examiner, an evidential hearing to determine the nature and source of all ex parte pleas and other approaches that were made to Commissioners while the former proceeding was pending, and any other factors that might be thought to require either disqualification of some Commissioners from participating in the reopened proceeding or disqualification of some parties from receiving any award that may ultimately result. All parties to the former proceeding and to the present review may on request participate fully in the evidential hearing. The Commission is instructed to report its progress to this court within 60 days, together with any recommendations it is then able to make. In the discretion of the Commission existing services may be maintained, and the court retains jurisdiction of this proceeding, pending further order of the court.

Vacated and remanded.

2.2.2 Agency Choice of Policy Instrument 2.2.2 Agency Choice of Policy Instrument

Although some agencies only possess, or only typically exercise, adjudicative power--the National Labor Relations Board (NLRB) is a good example, see Katie R. Eyer, Administrative Adjudication and the Rule of Law, 60 Admin. L. Rev. 647, 648-49 (2008) (noting that NLRB chooses almost exclusively to exercise adjudicative power)--and other agencies primarily, or even exclusively, exercise rulemaking power, the norm is for agencies to possess and exercise both of these powers.

This raises an important question: is an agency required to exercise one or the other of these powers in any particular case? The cases that follow not only lay out the ground rules that govern what administrative law scholar Elizabeth Magill called the "agency choice of policymaking form," see M. Elizabeth Magill, Agency Choice of Policymaking Form, 71 U. Chi. L. Rev. 1838 (2004), but they also provide some context to help you determine why agencies might exercise discretion to favor one policymaking form over another. Both of these are important questions: the former because, well, it's the law; the latter because, as Eyer points out, "[m]any agencies, particularly in recent decades, have opted to exercise their lawmaking authority primarily or exclusively legislatively through the issuance of regulations." Eyer, supra, at 648.

2.2.2.1 Securities & Exchange Commission v. Chenery Corp. 2.2.2.1 Securities & Exchange Commission v. Chenery Corp.

332 U.S. 194 (1947)

SECURITIES & EXCHANGE COMMISSION
v.
CHENERY CORPORATION ET AL.

No. 81.

Supreme Court of United States.

Argued December 13, 16, 1946.
Decided June 23, 1947.

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA.[1]

[195] Roger S. Foster argued the cause for petitioner. With him on the brief were Solicitor General McGrath and Theodore L. Thau.

[196] Spencer Gordon argued the cause and filed a brief for respondents in No. 81.

Allen S. Hubbard argued the cause and filed a brief for respondent in No. 82.

MR. JUSTICE MURPHY delivered the opinion of the Court.

This case is here for the second time. In S.E.C. v. Chenery Corp., 318 U.S. 80, we held that an order of the Securities and Exchange Commission could not be sustained on the grounds upon which that agency acted. We therefore directed that the case be remanded to the Commission for such further proceedings as might be appropriate. On remand, the Commission reexamined the problem, recast its rationale and reached the same result, The issue now is whether the Commission's action is proper in light of the principles established in our prior decision.

When the case was first here, we emphasized a simple but fundamental rule of administrative law. That rule is to the effect that a reviewing court, in dealing with a determination or judgment which an administrative agency alone is authorized to make, must judge the propriety of such action solely by the grounds invoked by the agency. If those grounds are inadequate or improper, the court is powerless to affirm the administrative action by substituting what it considers to be a more adequate or proper basis. To do so would propel the court into the domain which Congress has set aside exclusively for the administrative agency.

We also emphasized in our prior decision an important corollary of the foregoing rule. If the administrative action is to be tested by the basis upon which it purports to rest, that basis must be set forth with such clarity as to be understandable. It will not do for a court to be compelled [197] to guess at the theory underlying the agency's action; nor can a court be expected to chisel that which must be precise from what the agency has left vague and indecisive. In other words, "We must know what a decision means before the duty becomes ours to say whether it is right or wrong." United States v. Chicago, M., St. P. & P.R. Co., 294 U.S. 499, 511.

Applying this rule and its corollary, the Court was unable to sustain the Commission's original action. The Commission had been dealing with the reorganization of the Federal Water Service Corporation (Federal), a holding company registered under the Public Utility Holding Company Act of 1935, 49 Stat. 803. During the period when successive reorganization plans proposed by the management were before the Commission, the officers, directors and controlling stockholders of Federal purchased a substantial amount of Federal's preferred stock on the over-the-counter market. Under the fourth reorganization plan, this preferred stock was to be converted into common stock of a new corporation; on the basis of the purchases of preferred stock, the management would have received more than 10% of this new common stock. It was frankly admitted that the management's purpose in buying the preferred stock was to protect its interest in the new company. It was also plain that there was no fraud or lack of disclosure in making these purchases.

But the Commission would not approve the fourth plan so long as the preferred stock purchased by the management was to be treated on a parity with the other preferred stock. It felt that the officers and directors of a holding company in process of reorganization under the Act were fiduciaries and were under a duty not to trade in the securities of that company during the reorganization period. 8 S.E.C. 893, 915-921. And so the plan was amended to provide that the preferred stock acquired by the management, unlike that held by others, was not to be converted [198] into the new common stock; instead, it was to be surrendered at cost plus dividends accumulated since the purchase dates. As amended, the plan was approved by the Commission over the management's objections. 10 S.E.C. 200.

The Court interpreted the Commission's order approving this amended plan as grounded solely upon judicial authority. The Commission appeared to have treated the preferred stock acquired by the management in accordance with what it thought were standards theretofore recognized by courts. If it intended to create new standards growing out of its experience in effectuating the legislative policy, it failed to express itself with sufficient clarity and precision to be so understood. Hence the order was judged by the only standards clearly invoked by the Commission. On that basis, the order could not stand. The opinion pointed out that courts do not impose upon officers and directors of a corporation any fiduciary duty to its stockholders which precludes them, merely because they are officers and directors, from buying and selling the corporation's stock. Nor was it felt that the cases upon which the Commission relied established any principles of law or equity which in themselves would be sufficient to justify this order.

The opinion further noted that neither Congress nor the Commission had promulgated any general rule proscribing such action as the purchase of preferred stock by Federal's management. And the only judge-made rule of equity which might have justified the Commission's order related to fraud or mismanagement of the reorganization by the officers and directors, matters which were admittedly absent in this situation.

After the case was remanded to the Commission, Federal Water and Gas Corp. (Federal Water), the surviving corporation under the reorganization plan, made an application for approval of an amendment to the plan to provide [199] for the issuance of new common stock of the reorganized company. This stock was to be distributed to the members of Federal's management on the basis of the shares of the old preferred stock which they had acquired during the period of reorganization, thereby placing them in the same position as the public holders of the old preferred stock. The intervening members of Federal's management joined in this request. The Commission denied the application in an order issued on February 8, 1945. Holding Company Act Release No. 5584. That order was reversed by the Court of Appeals, 80 U.S. App. D.C. 365, 154 F.2d 6, which felt that our prior decision precluded such action by the Commission.

The latest order of the Commission definitely avoids the fatal error of relying on judicial precedents which do not sustain it. This time, after a thorough reexamination of the problem in light of the purposes and standards of the Holding Company Act, the Commission has concluded that the proposed transaction is inconsistent with the standards of §§ 7 and 11 of the Act. It has drawn heavily upon its accumulated experience in dealing with utility reorganizations. And it has expressed its reasons with a clarity and thoroughness that admit of no doubt as to the underlying basis of its order.

The argument is pressed upon us, however, that the Commission was foreclosed from taking such a step following our prior decision. It is said that, in the absence of findings of conscious wrongdoing on the part of Federal's management, the Commission could not determine by an order in this particular case that it was inconsistent with the statutory standards to permit Federal's management to realize a profit through the reorganization purchases. All that it could do was to enter an order allowing an amendment to the plan so that the proposed transaction could be consummated. Under this view, the Commission would be free only to promulgate a general rule [200] outlawing such profits in future utility reorganizations; but such a rule would have to be prospective in nature and have no retroactive effect upon the instant situation.

We reject this contention, for it grows out of a misapprehension of our prior decision and of the Commission's statutory duties. We held no more and no less than that the Commission's first order was unsupportable for the reasons supplied by that agency. But when the case left this Court, the problem whether Federal's management should be treated equally with other preferred stockholders still lacked a final and complete answer. It was clear that the Commission could not give a negative answer by resort to prior judicial declarations. And it was also clear that the Commission was not bound by settled judicial precedents in a situation of this nature. 318 U.S. at 89. Still unsettled, however, was the answer the Commission might give were it to bring to bear on the facts the proper administrative and statutory considerations, a function which belongs exclusively to the Commission in the first instance. The administrative process had taken an erroneous rather than a final turn. Hence we carefully refrained from expressing any views as to the propriety of an order rooted in the proper and relevant considerations. See Siegel Co. v. Federal Trade Commission, 327 U.S. 608, 613-614.

When the case was directed to be remanded to the Commission for such further proceedings as might be appropriate, it was with the thought that the Commission would give full effect to its duties in harmony with the views we had expressed. Ford Motor Co. v. Labor Board, 305 U.S. 364, 374; Federal Radio Commission v. Nelson Bros. Co., 289 U.S. 266, 278. This obviously meant something more than the entry of a perfunctory order giving parity treatment to the management holdings of preferred stock. The fact that the Commission had committed a legal error in its first disposition of the case certainly gave Federal's [201] management no vested right to receive the benefits of such an order. See Federal Communications Commission v. Pottsville Broadcasting Co., 309 U.S. 134, 145. After the remand was made, therefore, the Commission was bound to deal with the problem afresh, performing the function delegated to it by Congress. It was again charged with the duty of measuring the proposed treatment of the management's preferred stock holdings by relevant and proper standards. Only in that way could the legislative policies embodied in the Act be effectuated. Cf. Labor Board v. Donnelly Co., 330 U.S. 219, 227-228.

The absence of a general rule or regulation governing management trading during reorganization did not affect the Commission's duties in relation to the particular proposal before it. The Commission was asked to grant or deny effectiveness to a proposed amendment to Federal's reorganization plan whereby the management would be accorded parity treatment on its holdings. It could do that only in the form of an order, entered after a due consideration of the particular facts in light of the relevant and proper standards. That was true regardless of whether those standards previously had been spelled out in a general rule or regulation. Indeed, if the Commission rightly felt that the proposed amendment was inconsistent with those standards, an order giving effect to the amendment merely because there was no general rule or regulation covering the matter would be unjustified.

It is true that our prior decision explicitly recognized the possibility that the Commission might have promulgated a general rule dealing with this problem under its statutory rule-making powers, in which case the issue for our consideration would have been entirely different from that which did confront us. 318 U.S. 92-93. But we did not mean to imply thereby that the failure of the Commission to anticipate this problem and to promulgate a general rule withdrew all power from that agency to perform [202] its statutory duty in this case. To hold that the Commission had no alternative in this proceeding but to approve the proposed transaction, while formulating any general rules it might desire for use in future cases of this nature, would be to stultify the administrative process. That we refuse to do.

Since the Commission, unlike a court, does have the ability to make new law prospectively through the exercise of its rule-making powers, it has less reason to rely upon ad hoc adjudication to formulate new standards of conduct within the framework of the Holding Company Act. The function of filling in the interstices of the Act should be performed, as much as possible, through this quasi-legislative promulgation of rules to be applied in the future. But any rigid requirement to that effect would make the administrative process inflexible and incapable of dealing with many of the specialized problems which arise. See Report of the Attorney General's Committee on Administrative Procedure in Government Agencies, S. Doc. No. 8, 77th Cong., 1st Sess., p. 29. Not every principle essential to the effective administration of a statute can or should be cast immediately into the mold of a general rule. Some principles must await their own development, while others must be adjusted to meet particular, unforeseeable situations. In performing its important functions in these respects, therefore, an administrative agency must be equipped to act either by general rule or by individual order. To insist upon one form of action to the exclusion of the other is to exalt form over necessity.

In other words, problems may arise in a case which the administrative agency could not reasonably foresee, problems which must be solved despite the absence of a relevant general rule. Or the agency may not have had sufficient experience with a particular problem to warrant rigidifying its tentative judgment into a hard and fast rule. Or [203] the problem may be so specialized and varying in nature as to be impossible of capture within the boundaries of a general rule. In those situations, the agency must retain power to deal with the problems on a case-to-case basis if the administrative process is to be effective. There is thus a very definite place for the case-by-case evolution of statutory standards. And the choice made between proceeding by general rule or by individual, ad hoc litigation is one that lies primarily in the informed discretion of the administrative agency. See Columbia Broadcasting System v. United States, 316 U.S. 407, 421.

Hence we refuse to say that the Commission, which had not previously been confronted with the problem of management trading during reorganization, was forbidden from utilizing this particular proceeding for announcing and applying a new standard of conduct. Cf. Federal Trade Commission v. Keppel & Bro., 291 U.S. 304. That such action might have a retroactive effect was not necessarily fatal to its validity. Every case of first impression has a retroactive effect, whether the new principle is announced by a court or by an administrative agency. But such retroactivity must be balanced against the mischief of producing a result which is contrary to a statutory design or to legal and equitable principles. If that mischief is greater than the ill effect of the retroactive application of a new standard, it is not the type of retroactivity which is condemned by law. See Addison v. Holly Hill Co., 322 U.S. 607, 620.

And so in this case, the fact that the Commission's order might retroactively prevent Federal's management from securing the profits and control which were the objects of the preferred stock purchases may well be outweighed by the dangers inherent in such purchases from the statutory standpoint. If that is true, the argument of retroactivity becomes nothing more than a claim that the Commission lacks power to enforce the standards of [204] the Act in this proceeding. Such a claim deserves rejection.

The problem in this case thus resolves itself into a determination of whether the Commission's action in denying effectiveness to the proposed amendment to the Federal reorganization plan can be justified on the basis upon which it clearly rests. As we have noted, the Commission avoided placing its sole reliance on inapplicable judicial precedents. Rather it has derived its conclusions from the particular facts in the case, its general experience in reorganization matters and its informed view of statutory requirements. It is those matters which are the guide for our review.

The Commission concluded that it could not find that the reorganization plan, if amended as proposed, would be "fair and equitable to the persons affected thereby" within the meaning of § 11 (e) of the Act, under which the reorganization was taking place. Its view was that the amended plan would involve the issuance of securities on terms "detrimental to the public interest or the interest of investors" contrary to §§ 7 (d) (6) and 7 (e), and would result in an "unfair or inequitable distribution of voting power" among the Federal security holders within the meaning of § 7(e). It was led to this result "not by proof that the interveners [Federal's management] committed acts of conscious wrongdoing but by the character of the conflicting interests created by the interveners' program of stock purchases carried out while plans for reorganization were under consideration."

The Commission noted that Federal's management controlled a large multi-state utility system and that its influence permeated down to the lowest tier of operating companies. The financial, operational and accounting policies of the parent and its subsidiaries were therefore under the management's strict control. The broad range of business judgments vested in Federal's management [205] multiplied opportunities for affecting the market price of Federal's outstanding securities and made the exercise of judgment on any matter a subject of greatest significance to investors. Added to these normal managerial powers, the Commission pointed out that a holding company management obtains special powers in the course of a voluntary reorganization under § 11 (e) of the Holding Company Act. The management represents the stockholders in such a reorganization, initiates the proceeding, draws up and files the plan, and can file amendments thereto at any time. These additional powers may introduce conflicts between the management's normal interests and its responsibilities to the various classes of stockholders which it represents in the reorganization. Moreover, because of its representative status, the management has special opportunities to obtain advance information of the attitude of the Commission.

Drawing upon its experience, the Commission indicated that all these normal and special powers of the holding company management during the course of a § 11(e) reorganization placed in the management's command "a formidable battery of devices that would enable it, if it should choose to use them selfishly, to affect in material degree the ultimate allocation of new securities among the various existing classes, to influence the market for its own gain, and to manipulate or obstruct the reorganization required by the mandate of the statute." In that setting, the Commission felt that a management program of stock purchase would give rise to the temptation and the opportunity to shape the reorganization proceeding so as to encourage public selling on the market at low prices. No management could engage in such a program without raising serious questions as to whether its personal interests had not opposed its duties "to exercise disinterested judgment in matters pertaining to subsidiaries' accounting, budgetary and dividend policies, to present [206] publicly an unprejudiced financial picture of the enterprise, and to effectuate a fair and feasible plan expeditiously."

The Commission further felt that its answer should be the same even where proof of intentional wrongdoing on the management's part is lacking. Assuming a conflict of interests, the Commission thought that the absence of actual misconduct is immaterial; injury to the public investors and to the corporation may result just as readily. "Questionable transactions may be explained away, and an abuse of investors and the administrative process may be perpetrated without evil intent, yet the injury will remain." Moreover, the Commission was of the view that the delays and the difficulties involved in probing the mental processes and personal integrity of corporate officials do not warrant any distinction on the basis of evil intent, the plain fact being "that an absence of unfairness or detriment in cases of this sort would be practically impossible to establish by proof."

Turning to the facts in this case, the Commission noted the salient fact that the primary object of Federal's management in buying the preferred stock was admittedly to obtain the voting power that was accruing to that stock through the reorganization and to profit from the investment therein. That stock had been purchased in the market at prices that were depressed in relation to what the management anticipated would be, and what in fact was, the earning and asset value of its reorganization equivalent. The Commission admitted that the good faith and personal integrity of this management were not in question; but as to the management's justification of its motives, the Commission concluded that it was merely trying to "deny that they made selfish use of their powers during the period when their conflict of interest, vis-a-vis public investors, was in existence owing to their purchase program." Federal's management had [207] thus placed itself in a position where it was "peculiarly susceptible to temptation to conduct the reorganization for personal gain rather than the public good" and where its desire to make advantageous purchases of stock could have an important influence, even though subconsciously, upon many of the decisions to be made in the course of the reorganization. Accordingly, the Commission felt that all of its general considerations of the problem were applicable to this case.

The scope of our review of an administrative order wherein a new principle is announced and applied is no different from that which pertains to ordinary administrative action. The wisdom of the principle adopted is none of our concern. See Board of Trade v. United States, 314 U.S. 534, 548. Our duty is at an end when it becomes evident that the Commission's action is based upon substantial evidence and is consistent with the authority granted by Congress. See National Broadcasting Co. v. United States, 319 U.S. 190, 224.

We are unable to say in this case that the Commission erred in reaching the result it did. The facts being undisputed, we are free to disturb the Commission's conclusion only if it lacks any rational and statutory foundation. In that connection, the Commission has made a thorough examination of the problem, utilizing statutory standards and its own accumulated experience with reorganization matters. In essence, it has made what we indicated in our prior opinion would be an informed, expert judgment on the problem. It has taken into account "those more subtle factors in the marketing of utility company securities that gave rise to the very grave evils which the Public Utility Holding [Company] Act of 1935 was designed to correct" and has relied upon the fact that "Abuse of corporate position, influence, and access to information may raise questions so subtle that the law can deal with them effectively only by prohibitions [208] not concerned with the fairness of a particular transaction." 318 U.S. at 92.

Such factors may properly be considered by the Commission in determining whether to approve a plan of reorganization of a utility holding company, or an amendment to such a plan. The "fair and equitable" rule of § 11 (e) and the standard of what is "detrimental to the public interest or the interest of investors or consumers" under § 7 (d) (6) and § 7 (e) were inserted by the framers of the Act in order that the Commission might have broad powers to protect the various interests at stake. 318 U.S. at 90-91. The application of those criteria, whether in the form of a particular order or a general regulation, necessarily requires the use of informed discretion by the Commission. The very breadth of the statutory language precludes a reversal of the Commission's judgment save where it has plainly abused its discretion in these matters. See United States v. Lowden, 308 U.S. 225; I.C.C. v. Railway Labor Assn., 315 U.S. 373. Such an abuse is not present in this case.

The purchase by a holding company management of that company's securities during the course of a reorganization may well be thought to be so fraught with danger as to warrant a denial of the benefits and profits accruing to the management. The possibility that such a stock purchase program will result in detriment to the public investors is not a fanciful one. The influence that program may have upon the important decisions to be made by the management during reorganization is not inconsequential. Since the officers and directors occupy fiduciary positions during this period, their actions are to be held to a higher standard than that imposed upon the general investing public. There is thus a reasonable basis for a judgment that the benefits and profits accruing to the management from the stock purchases should be prohibited, regardless of the good faith involved. And [209] it is a judgment that can justifiably be reached in terms of fairness and equitableness, to the end that the interests of the public, the investors and the consumers might be protected. But it is a judgment based upon public policy, a judgment which Congress has indicated is of the type for the Commission to make.

The Commission's conclusion here rests squarely in that area where administrative judgments are entitled to the greatest amount of weight by appellate courts. It is the product of administrative experience, appreciation of the complexities of the problem, realization of the statutory policies, and responsible treatment of the uncontested facts. It is the type of judgment which administrative agencies are best equipped to make and which justifies the use of the administrative process. See Republic Aviation Corp. v. Labor Board, 324 U.S. 793, 800. Whether we agree or disagree with the result reached, it is an allowable judgment which we cannot disturb.

Reversed.

MR. JUSTICE BURTON concurs in the result.

THE CHIEF JUSTICE and MR. JUSTICE DOUGLAS took no part in the consideration or decision of these cases.

MR. JUSTICE FRANKFURTER and MR. JUSTICE JACKSON dissent, but there is not now opportunity for a response adequate to the issues raised by the Court's opinion. These concern the rule of law in its application to the administrative process and the function of this Court in reviewing administrative action. Accordingly, the detailed grounds for dissent will be filed in due course.

MR. JUSTICE JACKSON, dissenting.[2]

The Court by this present decision sustains the identical administrative order which only recently it held invalid. [210] S.E.C. v. Chenery Corp., 318 U.S. 80. As the Court correctly notes, the Commission has only "recast its rationale and reached the same result." (Par. 1.)[3] There being no change in the order, no additional evidence in the record and no amendment of relevant legislation, it is clear that there has been a shift in attitude between that of the controlling membership of the Court when the case was first here and that of those who have the power of decision on this second review.

I feel constrained to disagree with the reasoning offered to rationalize this shift. It makes judicial review of administrative orders a hopeless formality for the litigant, even where granted to him by Congress. It reduces the judicial process in such cases to a mere feint. While the opinion does not have the adherence of a majority of the full Court, if its pronouncements should become governing principles they would, in practice, put most administrative orders over and above the law.

I.

The essential facts are few and are not in dispute.[4] This corporation filed with the Securities and Exchange Commission a voluntary plan of reorganization. While the reorganization proceedings were pending sixteen officers and directors bought on the open market about 7 1/2% of the corporation's preferred stock. Both the Commission and the Court admit that these purchases were not forbidden by any law, judicial precedent, regulation or rule of the Commission. Nevertheless, the Commission has [211] ordered these individuals to surrender their shares to the corporation at cost, plus 4% interest, and the Court now approves that order.

It is helpful, before considering whether this order is authorized by law, to reflect on what it is and what it is not. It is not conceivably a discharge of the Commission's duty to determine whether a proposed plan of reorganization would be "fair and equitable." It has nothing to do with the corporate structure, or the classes and amounts of stock, or voting rights or dividend preferences. It does not remotely affect the impersonal financial or legal factors of the plan. It is a personal deprivation denying particular persons the right to continue to own their stock and to exercise its privileges. Other persons who bought at the same time and price in the open market would be allowed to keep and convert their stock. Thus, the order is in no sense an exercise of the function of control over the terms and relations of the corporate securities.

Neither is the order one merely to regulate the future use of property. It literally takes valuable property away from its lawful owners for the benefit of other private parties without full compensation and the Court expressly approves the taking. It says that the stock owned by these persons is denied conversion along with similar stock owned by others; "instead, it was to be surrendered at cost plus dividends accumulated since the purchase dates." (Par. 5.) It should be noted that this formula was subsequently altered to read "cost plus 4% interest." That this basis was less than its value is recognized, for the Court says "That stock had been purchased in the market at prices that were depressed in relation to what the management anticipated would be, and what in fact was, the earning and asset value of its reorganization equivalent." (Par. 24.) Admittedly, the value above cost, and interest on it, simply is taken from the owners, [212] without compensation. No such power has ever been confirmed in any administrative body.

It should also be noted that neither the Court nor the Commission purports to adjudge a forfeiture of this property as a consequence of sharp dealing or breach of trust. The Court says, "The Commission admitted that the good faith and personal integrity of this management were not in question;. . . ." (Par. 24.) And again, "It was frankly admitted that the management's purpose in buying the preferred stock was to protect its interest in the new company. It was also plain that there was no fraud or lack of disclosure in making these purchases." (Par. 4.)

II.

The reversal of the position of this Court is due to a fundamental change in prevailing philosophy. The basic assumption of the earlier opinion as therein stated was, "But before transactions otherwise legal can be outlawed or denied their usual business consequences, they must fall under the ban of some standards of conduct prescribed by an agency of government authorized to prescribe such standards. . . ." S.E.C. v. Chenery Corp., 318 U.S. 80, 92-93. The basic assumption of the present opinion is stated thus: "The absence of a general rule or regulation governing management trading during reorganization did not affect the Commission's duties in relation to the particular proposal before it." (Par. 13.) This puts in juxtaposition the two conflicting philosophies which produce opposite results in the same case and on the same facts. The difference between the first and the latest decision of the Court is thus simply the difference between holding that administrative orders must have a basis in law and a holding that absence of a legal basis is no ground on which courts may annul them.

As there admittedly is no law or regulation to support this order, we peruse the Court's opinion diligently to find [213] on what grounds it is now held that the Court of Appeals, on pain of being reversed for error, was required to stamp this order with its approval. We find but one. That is the principle of judicial deference to administrative experience. That argument is five times stressed in as many different contexts, and I quote just enough to identify the instances: "The Commission," it says, "has drawn heavily upon its accumulated experience in dealing with utility reorganizations." (Par. 9.) "Rather it has derived its conclusions from the particular facts in the case, its general experience in reorganization matters and its informed view of statutory requirements." (Par. 19.) "Drawing upon its experience, the Commission indicated . . .," etc. (Par. 22.) ".. . the Commission has made a thorough examination of the problem, utilizing statutory standards and its own accumulated experience with reorganization matters." (Par. 26.) And finally, of the order the Court says, "It is the product of administrative experience," etc. (Par. 29.)

What are we to make of this reiterated deference to "administrative experience" when in another context the Court says, "Hence, we refuse to say that the Commission, which had not previously been confronted with the problem of management trading during reorganization, was forbidden from utilizing this particular proceeding for announcing and applying a new standard of conduct."? (Par. 17.) (Emphasis supplied.)

The Court's reasoning adds up to this: The Commission must be sustained because of its accumulated experience in solving a problem with which it had never before been confronted!

Of course, thus to uphold the Commission by professing to find that it has enunciated a "new standard of conduct" brings the Court squarely against the invalidity of retroactive law-making. But the Court does not falter. "That such action might have a retroactive effect [214] was not necessarily fatal to its validity." (Par. 17.) "But such retroactivity must be balanced against the mischief of producing a result which is contrary to a statutory design or to legal and equitable principles." (Par. 17.) Of course, if what these parties did really was condemned by "statutory design" or "legal and equitable principles," it could be stopped without resort to a new rule and there would be no retroactivity to condone. But if it had been the Court's view that some law already prohibited the purchases, it would hardly have been necessary three sentences earlier to hold that the Commission was not prohibited "from utilizing this particular proceeding for announcing and applying a new standard of conduct." (Par. 17.) (Emphasis supplied.)

I give up. Now I realize fully what Mark Twain meant when he said, "The more you explain it, the more I don't understand it."

III.

But one does not need to comprehend the processes by which other minds reach a given result in order to estimate the practical consequences of their pronouncement upon judicial review of administrative orders.

If it is of no consequence that no rule of law be existent to support an administrative order, and the Court of Appeals is obliged to defer to administrative experience and to sustain a Commission's power merely because it has been asserted and exercised, of what use is it to print a record or briefs in the case, or to hear argument? Administrative experience always is present, at least to the degree that it is here, and would always dictate a like deference by this Court to an assertion of administrative power. Must the reviewing court, as this Court does in this opinion, support the order on a presumptive or imputed experience even though the Court is obliged to discredit such experience in the very same opinion? Is [215] fictitious experience to be conclusive in matters of law and particularly in the interpretation of statutes, as the Court's opinion now intimates, or just in fact finding which has been the function which the Court has heretofore sustained upon the argument of administrative experience?

I suggest that administrative experience is of weight in judicial review only to this point — it is a persuasive reason for deference to the Commission in the exercise of its discretionary powers under and within the law. It cannot be invoked to support action outside of the law. And what action is, and what is not, within the law must be determined by courts, when authorized to review, no matter how much deference is due to the agency's fact finding. Surely an administrative agency is not a law unto itself, but the Court does not really face up to the fact that this is the justification it is offering for sustaining the Commission action.

Even if the Commission had, as the Court says, utilized this case to announce a new legal standard of conduct, there would be hurdles to be cleared, but we need not dwell on them now. Because to promulgate a general rule of law, either by regulation or by case law, is something the Commission expressly declined to do. It did not previously promulgate, and it does not by this order profess to promulgate, any rule or regulation to prohibit such purchases absolutely or under stated conditions. On the other hand, its position is that no such rule or standard would be fair and equitable in all cases.[5]

[216] IV.

Whether, as matter of policy, corporate managers during reorganization should be prohibited from buying or selling its stock, is not a question for us to decide. But it is for us to decide whether, so long as no law or regulation prohibits them from buying, their purchases may be forfeited, or not, in the discretion of the Commission. If such a power exists in words of the statute or in their implication, it would be possible to point it out and thus end the case. Instead, the Court admits that there was no law prohibiting these purchases when they were made, or at any time thereafter. And, except for this decision, there is none now.

The truth is that in this decision the Court approves the Commission's assertion of power to govern the matter without law, power to force surrender of stock so purchased whenever it will, and power also to overlook such acquisitions if it so chooses. The reasons which will lead it to take one course as against the other remain locked in its own breast, and it has not and apparently does not intend to commit them to any rule or regulation. This administrative authoritarianism, this power to decide without law, is what the Court seems to approve in so many words: "The absence of a general rule or regulation [217] governing management trading during reorganization did not affect the Commission's duties. . . ." (Par. 13). This seems to me to undervalue and to belittle the place of law, even in the system of administrative justice. It calls to mind Mr. Justice Cardozo's statement that "Law as a guide to conduct is reduced to the level of mere futility if it is unknown and unknowable."[6]

V.

The Court's averment concerning this order, that "It is the type of judgment which administrative agencies are best equipped to make and which justifies the use of the administrative process," (Par. 29) is the first instance in which the administrative process is sustained by reliance on that disregard of law which enemies of the process have always alleged to be its principal evil. It is the first encouragement this Court has given to conscious lawlessness as a permissible rule of administrative action. This decision is an ominous one to those who believe that men should be governed by laws that they may ascertain and abide by, and which will guide the action of those in authority as well as of those who are subject to authority.[7]

I have long urged, and still believe, that the administrative process deserves fostering in our system as an expeditious and nontechnical method of applying law in specialized [218] fields.[8] I can not agree that it be used, and I think its continued effectiveness is endangered when it is used, as a method of dispensing with law in those fields.

MR. JUSTICE FRANKFURTER joins in this opinion.

[1] Together with No. 82, Securities & Exchange Commission v. Federal Water & Gas Corp., also on certiorari to the same Court.

[2] Filed October 6, 1947.

[3] For convenience of reference, I have numbered consecutively the paragraphs of the Court's opinion, and cite quotations accordingly.

[4] The facts and the law of the case generally are fully set forth in the first opinion of Mr. Chief Justice Groner of the Court of Appeals which reversed the Commission's order (75 U.S. App. D.C. 374, 128 F.2d 303) and in his second opinion (80 U.S. App. D.C. 365, 154 F.2d 6) again reversing the Commission's order after it had "recast its rationale."

[5] The Commission, speaking of such a rule, appends the following note to its opinion:

"Without flexibility the rule might itself operate unfairly. Limitation to cost appears appropriate here, but would be inappropriate in a case where the cost of the security purchased was in excess of its reorganization value, and in some instances cash payment by the company would not be feasible. In addition, special treatment of any sort might be inappropriate for incidental purchases not made as part of a program in contemplation of reorganization benefits. In this connection, we wish to emphasize that our concern here is not primarily with the normal corporate powers which make it possible for officers and directors to influence the market for their own gain, in the absence of reorganization, by a choice of dividend policies, accounting practices, published reports, and the like. The questions of fairness and detriment here presented arise before us in the context of a capital readjustment. At that point our scrutiny is called for, and that our scrutiny is to be vigilant cannot be doubted. See Appendix to Sen. Rep. No. 621 (74th Cong., 1st Sess.) on S. 2796, at p. 58, quoted supra."

[6] The Growth of the Law, p. 3.

[7] On the same day, the Court denied its own authority to recognize and enforce, without Congressional action, an unlegislated liability much less novel than the one imposed here, and that in the field of tort law which traditionally has developed by decisional rather than by legislative process. The result is to confirm in an executive agency a discretion to act outside of established law that goes beyond any judicial discretion as well as beyond any legislative delegation. Compare United States v. Standard Oil Co., 332 U.S. 301.

[8] See statement before House of Delegates, American Bar Association, 1939. (1939 Proceedings, House of Delegates, XXV A.B.A. Journal 95.) Also see Report as Attorney General to president Roosevelt recommending veto of Walter-Logan Bill — made part of veto message, Vol. 86, Part 12, Congressional Record, 76th Congress, 3d Session, p. 13943.

2.2.2.2 NLRB v. Bell Aerospace, 416 U.S. 267 (1974) 2.2.2.2 NLRB v. Bell Aerospace, 416 U.S. 267 (1974)

POWELL, J., delivered the opinion of the Court, in which BURGER, C.J., and DOUGLAS, BLACKMUN, and REHNQUIST, JJ., joined. WHITE, J., filed an opinion dissenting in part, in which BRENNAN, STEWART, and MARSHALL, JJ., joined, post, p. 416 U. S. 295.

 

  1. JUSTICE POWELL delivered the opinion of the Court.

 

This case presents two questions: first, whether the National Labor Relations Board properly determined that all "managerial employees," except those whose participation in a labor organization would create a conflict of interest with their job responsibilities, are covered by the National Labor Relations Act; and second, whether the Board must proceed by rulemaking, rather than by adjudication, in determining whether certain buyers are "managerial employees." We answer both questions in the negative.

 

I

Respondent Bell Aerospace Co., Division of Textron, Inc. (company), operates a plant in Wheatfield, New York, where it is engaged in research and development in the design and fabrication of aerospace products. On July 30, 1970, Amalgamated Local No. 1286 of the United Automobile, Aerospace and Agricultural Implement Workers of America (union) petitioned the National Labor Relations Board (Board) for a representation election to determine whether the union would be certified as the bargaining representative of the 25 buyers in the purchasing and procurement department at the company's plant. The company opposed the petition on the ground that the buyers were "managerial employees," and thus were not covered by the Act.

 

On May 20, 1971, the Board issued its decision, holding that the company's buyers constituted an appropriate unit for purposes of collective bargaining and directing an election. 190 N.L.R.B. 431. Relying on its recent decision in North Arkansas Electric Cooperative, Inc., 185 N.L.R.B. 550 (1970), the Board first stated that, even though the company's buyers might be "managerial employees," they were nevertheless covered by the Act and entitled to its protections.

 

On June 16, 1971, a representation election was conducted in which 15 of the buyers voted for the union and nine against. On August 12, the Board certified the union as the exclusive bargaining representative for the company's buyers. That same day, however, the Court of Appeals for the Eighth Circuit denied enforcement of another Board order in NLRB v. North Arkansas Electric Cooperative, Inc., 446 F.2d 602, and held that "managerial employees" were not covered by the Act, and were therefore not entitled to its protections. Id. at 610.

 

Encouraged by the Eighth Circuit's decision, the company moved the Board for reconsideration of its earlier order. The Board denied the motion, 196 N.L.R.B. 827 (1972), stating that it disagreed with the Eighth Circuit, and would adhere to its own decision in North Arkansas. In the Board's view, Congress intended to exclude from the Act only those "managerial employees" associated with the "formulation and implementation of labor relations policies." Id. at 828. In each case, the "fundamental touchstone" was "whether the duties and responsibilities of any managerial employee or group of managerial employees do or do not include determinations which should be made free of any conflict of interest which could arise if the person involved was a participating member of a labor organization."

Ibid. Turning to the present case, the Board reiterated its prior finding that the company had not shown that union organization of its buyers would create a conflict of interest in labor relations.

 

The company stood by its contention that the buyers, as "managerial employees," were not covered by the Act, and refused to bargain with the union. An unfair labor practice complaint resulted in a Board finding that the company had violated §§ 8(a)(5) and (1) of the Act, 29 U.S.C. §§ 158(a)(5) and (1), and an order compelling the company to bargain with the union. 197 N.L.R.B. 209 (1972). Subsequently, the company petitioned the United States Court of Appeals for the Second Circuit for review of the order and the Board cross-petitioned for enforcement.

 

The Court of Appeals denied enforcement. 475 F.2d 485 (1973). After reviewing the legislative history of the Taft-Hartley Act of 1947, 61 Stat. 136, and the Board's decisions in this area, the court concluded that Congress had intended to exclude all true "managerial employees" from the protection of the Act. It explained

that this "exclusion embraced not only an employee 'so closely related to or aligned with management as to place the employee in a position of conflict of interest between his employer on the one hand and his fellow workers on the other,' but also one who is 'formulating, determining and effectuating his employer's policies or has discretion, independent of an employer's established policy, in the performance of his duties,' Illinois State Journal-Register, Inc. v. NLRB, 412 F.2d 37, 41 (7 Cir.1969)." 475 F.2d at 494. The court added, however, that "the Board would [not] be precluded, on proper proceedings, from determining that buyers, or some types of buyers, are not true 'managerial employees,' and consequently come within the protection of § 8(a)(5) and (1).” Ibid.

 

Turning to the merits of the present case, the court acknowledged that there was substantial evidence that the company's buyers were not sufficiently high in the managerial hierarchy to constitute true "managerial employees." Nevertheless, the court denied enforcement for two reasons. First, it was not certain that the Board's decision rested on a factual determination that these buyers were not true "managerial employees", rather than on "its new, and, in our view, erroneous holding that it was free to regard all managerial employees as covered by the Act unless their duties met" the conflict of interest touchstone. Id. at 494-495. Second, although the Board was not precluded from holding that buyers, or some types of buyers, were not "managerial employees," the court thought that, in view of the Board's long line of cases holding the contrary, it could not accomplish this change of position by adjudication. Rather, the Board should conduct a rulemaking proceeding in conformity with § 6 of the Act, 29 U.S.C. § 156. The court therefore remanded the case to the Board for such a proceeding. We granted the Board's petition for certiorari. 414 U.S. 816.

 

II

 

We begin with the question whether all "managerial employees," rather than just those in positions susceptible to conflicts of interest in labor relations, are excluded from the protections of the Act. The Board's early decisions, the legislative history of the Taft-Hartley Act of 1947, 61 Stat. 136, and subsequent Board and court decisions provide the necessary guidance for our inquiry. Application of these principles leads us to conclude, as did the Court of Appeals, that Congress intended to exclude from the protections of the Act all employees properly classified as "managerial." We agree with the Court of Appeals below that the Board "is not now free" to read a new and more restrictive meaning into the Act. 475 F.2d at 494.

In view of our conclusion, the case must be remanded to permit the Board to apply the proper legal standard in determining the status of these buyers. SEC v. Chenery Corp., 318 U. S. 80318 U. S. 85 (1943); FTC v. Sperry & Hutchinson Co., 405 U. S. 233405 U. S. 249 (1972). We express no opinion as to whether these buyers fall within the category of "managerial employees."

 

III

 

The Court of Appeals also held that, although the Board was not precluded from determining that buyers or some types of buyers were not "managerial employees," it could do so only by invoking its rulemaking procedures under § 6 of the Act, 29 U.S.C. § 156. We disagree.

 

At the outset, the precise nature of the present issue must be noted. The question is not whether the Board should have resorted to rulemaking, or, in fact, improperly promulgated a "rule," when, in the context of the prior representation proceeding, it held that the Act covers all "managerial employees" except those meeting the new "conflict of interest in labor relations" touchstone. Our conclusion that the Board applied the wrong legal standard makes consideration of that issue unnecessary. Rather, the present question is whether, on remand, the Board must invoke its rulemaking procedures if it determines, in light of our opinion, that these buyers are not "managerial employees" under the Act. The Court of Appeals thought that rulemaking was required because any Board finding that the company's buyers are not "managerial" would be contrary to its prior decisions, and would presumably be in the nature of a general rule designed "to fit all cases at all times."

 

A similar issue was presented to this Court in its second decision in SEC v. Chenery Corp., 332 U. S. 194 (1947) (Chenery II). There, the respondent corporation argued that, in an adjudicative proceeding, the Commission could not apply a general standard that it had formulated for the first time in that proceeding. Rather, the Commission was required to resort instead to its rulemaking procedures if it desired to promulgate a new standard that would govern future conduct. In rejecting this contention, the Court first noted that the Commission had a statutory duty to decide the issue at hand in light of the proper standards, and that this duty remained "regardless of whether those standards previously had been spelled out in a general rule or regulation." Id. at 332 U. S. 201. The Court continued:

 

"The function of filling in the interstices of the [Securities] Act should be performed, as much as possible, through this quasi-legislative promulgation of rules to be applied in the future. But any rigid requirement to that effect would make the administrative process inflexible and incapable of dealing with many of the specialized problems which arise. . . . Not every principle essential to the effective administration of a statute can or should be cast immediately into the mold of a general rule. Some principles must await their own development, while others must be adjusted to meet particular, unforeseeable situations. In performing its important functions in these respects, therefore, an administrative agency must be equipped to act either by general rule or by individual order. To insist upon one form of action to the exclusion of the other is to exalt form over necessity."

"In other words, problems may arise in a case which the administrative agency could not reasonably foresee, problems which must be solved despite the absence of a relevant general rule. Or the agency may not have had sufficient experience with a particular problem to warrant rigidifying its tentative judgment into a hard and fast rule. Or the problem may be so specialized and varying in nature as to be impossible of capture within the boundaries of a general rule. In those situations, the agency must retain power to deal with the problems on a case-to-case basis if the administrative process is to be effective. There is thus a very definite place for the case-by-case evolution of statutory standards."

 

Id. at 332 U. S. 202-203. (Emphasis added.) The Court concluded that "the choice made between proceeding by general rule or by individual, ad hoc litigation is one that lies primarily in the informed discretion of the administrative agency."

Id. at 332 U. S. 203. And in NLRB v. Wyman-Gordon Co., 394 U. S. 759 (1969), the Court upheld a Board order enforcing an election list requirement first promulgated in an earlier adjudicative proceeding in Excelsior Underwear Inc., 156 N.L.R.B. 1236 (1966). The plurality opinion of Mr. Justice Fortas, joined by The Chief Justice, MR. JUSTICE STEWART, and MR. JUSTICE WHITE, recognized that

"[a]djudicated cases may and do . . . serve as vehicles for the formulation of agency policies, which are applied and announced therein," and that such cases "generally provide a guide to action that the agency may be expected to take in future cases." NLRB v. Wyman-Gordon Co., supra, at 394 U. S. 765-766. The concurring opinion of Mr. Justice Black, joined by MR. JUSTICE BRENNAN and MR. JUSTICE MARSHALL, also noted that the Board had both adjudicative and rulemaking powers, and that the choice between the two was "within its informed discretion." Id. at 394 U. S. 772.

 

The views expressed in Chenery II and Wyman-Gordon make plain that the Board is not precluded from announcing new principles in an adjudicative proceeding, and that the choice between rulemaking and adjudication lies in the first instance within the Board's discretion. Although there may be situations where the Board's reliance on adjudication would amount to an abuse of discretion or a violation of the Act, nothing in the present case would justify such a conclusion. Indeed, there is ample indication that adjudication is especially appropriate in the instant context. As the Court of Appeals noted, "[t]here must be tens of thousands of manufacturing, wholesale and retail units which employ buyers, and hundreds of thousands of the latter." 475 F.2d at 496. Moreover, duties of buyers vary widely depending on the company or industry. It is doubtful whether any generalized standard could be framed which would have more than marginal utility. The Board thus has reason to proceed with caution, developing its standards in a case-by-case manner with attention to the specific character of the buyers' authority and duties in each company. The Board's judgment that adjudication best serves this purpose is entitled to great weight.

 

The possible reliance of industry on the Board's past decisions with respect to buyers does not require a different result. It has not been shown that the adverse consequences ensuing from such reliance are so substantial that the Board should be precluded from reconsidering the issue in an adjudicative proceeding. Furthermore, this is not a case in which some new liability is sought to be imposed on individuals for past actions which were taken in good faith reliance on Board pronouncements. Nor are fines or damages involved here. In any event, concern about such consequences is largely speculative, for the Board has not yet finally determined whether these buyers are "managerial."

 

It is true, of course, that rulemaking would provide the Board with a forum for soliciting the informed views of those affected in industry and labor before embarking on a new course. But surely the Board has discretion to decide that the adjudicative procedures in this case may also produce the relevant information necessary to mature and fair consideration of the issues. Those most immediately affected, the buyers and the company in the particular case, are accorded a full opportunity to be heard before the Board makes its determination.

 

The judgment of the Court of Appeals is therefore affirmed in part and reversed in part, and the cause remanded to that court with directions to remand to the Board for further proceedings in conformity with this opinion.

 

It is so ordered.

 

 

2.2.2.3 Heckler v. Campbell 2.2.2.3 Heckler v. Campbell

HECKLER, SECRETARY OF HEALTH AND HUMAN SERVICES v. CAMPBELL

No. 81-1983.

Argued February 28, 1983

Decided May 16, 1983

*459Powell, J., delivered the opinion of the Court, in which Burger, C. J., and Brennan, White, Blackmun, Rehnquist, Stevens, and O’Con-nor, JJ., joined. Brennan, J., filed a concurring opinion, post, p. 470. Marshall, J., filed an opinion concurring in part and dissenting in part, post, p. 473.

John H. Garvey argued the cause for petitioner. With him on the briefs were Solicitor General Lee, Assistant Attorney General McGrath, Deputy Solicitor General Getter, and Anne Buxton Sobol.

Ruben Nazario argued the cause for respondent. With him on the brief were Toby Golick and Jane Greengold Stevens*

Justice Powell

delivered the opinion of the Court.

The issue is whether the Secretary of Health and Human Services may rely on published medical-vocational guidelines to determine a claimant’s right to Social Security disability benefits.

I

The Social Security Act defines “disability” in terms of the effect a physical or mental impairment has on a person’s abil*460ity to function in the workplace. It provides disability benefits only to persons who are unable “to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment.” 81 Stat. 868, as amended, 42 U. S. C. § 423(d)(1)(A). And it specifies that a person must “not only [be] unable to do his previous work but [must be unable], considering his age, education, and work experience, [to] engage in any other kind of substantial gainful work which exists in the national economy, regardless of whether such work exists in the immediate area in which he lives, or whether a specific job vacancy exists for him, or whether he would be hired if he applied for work.” 42 U. S. C. § 423(d)(2)(A).

In 1978, the Secretary of Health and Human Services promulgated regulations implementing this definition. See 43 Fed. Reg. 55349 (1978) (codified, as amended, at 20 CFR pt. 404, subpt. P (1982)). The regulations recognize that certain impairments are so severe that they prevent a person from pursuing any gainful work. See 20 CFR § 404.1520(d) (1982) (referring to impairments listed at 20 CFR pt. 404, subpt. P, app. 1). A claimant who establishes that he suffers from one of these impairments will be considered disabled without further inquiry. Ibid. If a claimant suffers from a less severe impairment, the Secretary must determine whether the claimant retains the ability to perform either his former work or some less demanding employment. If a claimant can pursue his former occupation, he is not entitled to disability benefits. See §404.1520(e). If he cannot, the Secretary must determine whether the claimant retains the capacity to pursue less demanding work. See §404.1520(f)(1).

■ The regulations divide this last inquiry into two stages. First, the Secretary must assess each claimant’s present job qualifications. The regulations direct the Secretary to consider the factors Congress has identified as relevant: physical ability, age, education, and work experience.1 See 42 *461U. S. C. § 423(d)(2)(A); 20 CFR § 404.1520(f) (1982). Second, she must consider whether jobs exist in the national economy that a person having the claimant’s qualifications could perform. 20 CFR §§ 404.1520(f), 404.1566-404.1569 (1982).

Prior to 1978, the Secretary relied on vocational experts to establish the existence of suitable jobs in the national economy. After a claimant’s limitations and abilities had been determined at a hearing, a vocational expert ordinarily would testify whether work existed that the claimant could perform. Although this testimony often was based on standardized guides, see 43 Fed. Reg. 9286 (1978), vocational experts frequently were criticized for their inconsistent treatment of similarly situated claimants. See Santise v. Schweiker, 676 F. 2d 925, 930 (CA3 1982); J. Mashaw, C. Goetz, F. Goodman, W. Schwartz, P. Verkuil, & M. Carrow, Social Security Hearings and Appeals 78-79 (1978). To improve both the uniformity and efficiency2 of this determination, the Secretary promulgated medical-vocational guidelines as part of the 1978 regulations. See 20 CFR pt. 404, subpt. P, app. 2 (1982).

These guidelines relieve the Secretary of the need to rely on vocational experts by establishing through rulemaking the types and numbers of jobs that exist in the national economy. They consist of a matrix of the four factors identified by Con*462gress — physical ability, age, education, and work experience3 — and set forth rules that identify whether jobs requiring specific combinations of these factors exist in significant numbers in the national economy.4 Where a claimant’s qualifications correspond to the job requirements identified by a rule,5 the guidelines direct a conclusion as to whether work exists that the claimant could perform. If such work exists, the claimant is not considered disabled.

t — I HH

In 1979, Carmen Campbell applied for disability benefits because a back condition and hypertension prevented her from continuing her work as a hotel maid. After her application was denied, she requested a hearing de novo before an Administrative Law Judge.6 He determined that her back *463problem was not severe enough to find her disabled without further inquiry, and accordingly considered whether she retained the ability to perform either her past work or some less strenuous job. App. to Pet. for Cert. 28a. He concluded that even though Campbell’s back condition prevented her from returning to her work as a maid, she retained the physical capacity to do light work. Ibid. In accordance with the regulations, he found that Campbell was 52 years old, that her previous employment consisted of unskilled jobs, and that she had a limited education. Id., at 28a-29a. He noted that Campbell, who had been born in Panama, experienced difficulty in speaking and writing English. She was able, however, to understand and read English fairly well. App. 42. Relying on the medical-vocational guidelines, the Administrative Law Judge found that a significant number of jobs existed that a person of Campbell’s qualifications could perform. Accordingly, he concluded that she was not disabled.7 App. to Pet. for Cert. 29a.

This determination was upheld by both the Social Security Appeals Council, id., at 16a, and the District Court for the Eastern District of New York, id., at 15a. The Court of Appeals for the Second Circuit reversed. Campbell v. Secretary of Dept. of Health and Human Services, 665 F. 2d 48 (1981). It accepted the Administrative Law Judge’s determination that Campbell retained the ability to do light work. And it did not suggest that he had classified Campbell’s age, *464education, or work experience incorrectly. The court noted, however, that it

“has consistently required that ‘the Secretary identify specific alternative occupations available in the national economy that would be suitable for the claimant’ and that ‘these jobs be supported by “a job description clarifying the nature of the job, [and] demonstrating that the job does not require” exertion or skills not possessed by the claimant.’” Id., at 53 (quoting Decker v. Harris, 647 F. 2d 291, 298 (CA2 1981)).

The court found that the medical-vocational guidelines did not provide the specific evidence that it previously had required. It explained that in the absence of such a showing, “the claimant is deprived of any real chance to present evidence showing that she cannot in fact perform the types of jobs that are administratively noticed by the guidelines.” 665 F. 2d, at 53. The court concluded that because the Secretary had failed to introduce evidence that specific alternative jobs existed, the determination that Campbell was not disabled was not supported by substantial evidence. Id., at 54.

We granted certiorari to resolve a conflict among the Courts of Appeals.8 Schweiker v. Campbell, 457 U. S. 1131 (1982). We now reverse.

*465III

The Secretary argues that the Court of Appeals’ holding effectively prevents the use of the medical-vocational guidelines. By requiring her to identify specific alternative jobs in every disability hearing, the court has rendered the guidelines useless. An examination of both the language of the Social Security Act and its legislative history clearly demonstrates that the Secretary may proceed by regulation to determine whether substantial gainful work exists in the national economy. Campbell argues in response that the Secretary has misperceived the Court of Appeals’ holding. Campbell reads the decision as requiring only that the Secretary give disability claimants concrete examples of the kinds of factual determinations that the administrative law judge will be making. This requirement does not defeat the guidelines’ purpose; it ensures that they will be applied only where appropriate. Accordingly, respondent argues that we need not address the guidelines’ validity.

A

The Court of Appeals held that “[i]n failing to show suitable available alternative jobs for Ms. Campbell, the Secretary’s finding of ‘not disabled’ is not supported by substantial evidence.” 665 F. 2d, at 54. It thus rejected the proposition that “the guidelines provide adequate evidence of a claimant’s ability to perform a specific alternative occupation,” id., at 53, and remanded for the Secretary to put into evidence “particular types of jobs suitable to the capabilities of Ms. Campbell,” id., at 54. The court’s requirement that additional evidence be introduced on this issue prevents the Secretary from putting the guidelines to their intended use and implicitly calls their validity into question.9 Accord*466ingly, we think the decision below requires us to consider whether the Secretary may rely on medical-vocational guidelines in appropriate cases.

The Social Security Act directs the Secretary to “adopt reasonable and proper rules and regulations to regulate and provide for the nature and extent of the proofs and evidence and the method of taking and furnishing the same” in disability cases. 42 U. S. C. § 405(a). As we previously have recognized, Congress has “conferred on the Secretary exceptionally broad authority to prescribe standards for applying certain sections of the [Social Security] Act.” Schweiker v. Gray Panthers, 453 U. S. 34, 43 (1981); see Batterton v. Francis, 432 U. S. 416, 425 (1977). Where, as here, the statute expressly entrusts the Secretary with the responsibility for implementing a provision by regulation,10 our review is limited to determining whether the regulations promulgated exeeded the Secretary's statutory authority and whether they are arbitrary and capricious. Herweg v. Ray, 455 U. S. 265, 275 (1982); Schweiker v. Gray Panthers, supra, at 44.

*467We do not think that the Secretary’s reliance on medical-vocational guidelines is inconsistent with the Social Security Act. It is true that the statutory scheme contemplates that disability hearings will be individualized determinations based on evidence adduced at a hearing. See 42 U. S. C. § 423(d)(2)(A) (specifying consideration of each individual’s condition); 42 U. S. C. § 405(b) (1976 ed., Supp. V) (disability determination to be based on evidence adduced at hearing). But this does not bar the Secretary from relying on rulemaking to resolve certain classes of issues. The Court has recognized that even where an agency’s enabling statute expressly requires it to hold a hearing, the agency may rely on its rulemaking authority to determine issues that do not require case-by-case consideration. See FPC v. Texaco Inc., 377 U. S. 33, 41-44 (1964); United States v. Storer Broadcasting Co., 351 U. S. 192, 205 (1956). A contrary holding would require the agency continually to relitigate issues that may be established fairly and efficiently in a single rulemaking proceeding. See FPC v. Texaco Inc., supra, at 44.

The Secretary’s decision to rely on medical-vocational guidelines is consistent with Texaco and Storer. As noted above, in determining whether a claimant can perform less strenuous work, the Secretary must make two determinations. She must assess each claimant’s individual abilities and then determine whether jobs exist that a person having the claimant’s qualifications could perform. The first inquiry involves a determination of historic facts, and the regulations properly require the Secretary to make these findings on the basis of evidence adduced at a hearing. We note that the regulations afford claimants ample opportunity both to present evidence relating to their own abilities and to offer evidence that the guidelines do not apply to them.11 The sec*468ond inquiry requires the Secretary to determine an issue that is not unique to each claimant — the types and numbers of jobs that exist in the national economy. This type of general factual issue may be resolved as fairly through rulemaking as by introducing the testimony of vocational experts at each disability hearing. See American Airlines, Inc. v. CAB, 123 U. S. App. D. C. 310, 319, 359 F. 2d 624, 633 (1966) (en banc).

As the Secretary has argued, the use of published guidelines brings with it a uniformity that previously had been perceived as lacking. To require the Secretary to relitigate the existence of jobs in the national economy at each hearing would hinder needlessly an already overburdened agency. We conclude that the Secretary’s use of medical-vocational guidelines does not conflict with the statute, nor can we say on the record before us that they are arbitrary and capricious.

B

We now consider Campbell’s argument that the Court of Appeals properly required the Secretary to specify alternative available jobs. Campbell contends that such a showing informs claimants of the type of issues to be established at the hearing and is required by both the Secretary’s regulation, 20 CFR §404.944 (1982), and the Due Process Clause.

By referring to notice and an opportunity to respond, see 665 F. 2d, at 53-54, the decision below invites the interpretation given it by respondent. But we do not think that the decision fairly can be said to present the issues she raises.12 *469The Court of Appeals did not find that the Secretary failed to give sufficient notice in violation of the Due Process Clause or any statutory provision designed to implement it. See 42 U. S. C. §405(b) (1976 ed., Supp. V) (requiring that disability claimants be given “reasonable notice and [an] opportunity for a hearing”). Nor did it find that the Secretary violated any duty imposed by regulation. See 20 CFR § 404.944 (1982) (requiring the administrative law judge to “loo[k] fully into the issues”). Rather the court’s reference to notice and an opportunity to respond appears to be based on a principle of administrative law — that when an agency takes official or administrative notice of facts, a litigant must be given an adequate opportunity to respond.13 See 5 U. S. C. § 556(e); McDaniel v. Celebrezze, 331 F. 2d 426 (CA4 1964).

*470This principle is inapplicable, however, when the agency has promulgated valid regulations. Its purpose is to provide a procedural safeguard: to ensure the accuracy of the facts of which an agency takes notice. But when the accuracy of those facts already has been tested fairly during rulemaking, the rulemaking proceeding itself provides sufficient procedural protection.14 See, e. g., Rivers v. Schweiker, 684 F. 2d 1144, 1156 (CA5 1982); Broz v. Schweiker, 677 F. 2d 1351, 1362 (CA11 1982); Torres v. Secretary of Health and Human Services, 677 F. 2d 167, 169 (CA1 1982).

> HH

The Court of Appeals’ decision would require the Secretary to introduce evidence of specific available jobs that respondent could perform. It would limit severely her ability to rely on the medical-vocational guidelines. We think the Secretary reasonably could choose to rely on these guidelines in appropriate cases rather than on the testimony of a vocational expert in each case. Accordingly, the judgment of the Court of Appeals is

Reversed.

Justice Brennan,

concurring.

I join the Court’s opinion. It merits comment, however, that the hearing respondent received, see ante, at 462-463, if it is in any way indicative of standard practice, reflects *471poorly on the Administrative Law Judge’s adherence to what Chief Judge Godbold has called his “duty of inquiry”:

“[T]here is a ‘basic obligation’ on the ALJ in these nonadversarial proceedings to develop a full and fair record, which obligation rises to a ‘ “special duty ... to scrupulously and conscientiously explore for all the relevant facts’” where an unrepresented claimant has not waived counsel. This duty of inquiry on the ALJ would include, in a case decided under the grids, a duty to inquire into possible nonexertional impairments and into exertional limitations that prevent a full range of work.” Broz v. Schweiker, 677 F. 2d 1351, 1364 (CA11 1982).1

In her brief to this Court, the Secretary acknowledges that the Social Security regulations embody this duty and relies upon it in answering respondent’s due process contentions. Brief for Petitioner 42 (citing Broz v. Schweiker, supra)] see 20 CFR § 404.944 (1982); ante, at 468, and n. 12. The Administrative Law Judge’s “duty to inquire” takes on special urgency where, as here, the claimant has little education and limited fluency in English, and, given that the claimant already has a right to a hearing, the additional cost of pursuing relevant issues at the hearing is minimal.

*472In order to find that respondent was not disabled, the Secretary had to determine that she had the physical capacity to do “light work,” compare 20 CFR pt. 404, subpt. P, app. 2, §201.10 (1982), with id., §202.10, a determination that required a finding that she was capable of frequent lifting or carrying of objects weighing up to 10 pounds and sometimes lifting up to 20 pounds, 20 CFR §404.1567(b) (1982). The hearing record included one disinterested doctor’s report of a medical examination of respondent that concluded with the unexplained statement “Patient may return to light-duty work,” App. 11, and a subsequent report by a second disinterested doctor stating that respondent could lift and carry only “up to 10 pounds,” id., at 32. In finding that respondent could perform “light work,” the Administrative Law Judge rejected the second doctor’s report as “without basis.” App. to Pet. for Cert. 23a-25a. Yet he failed entirely to adduce evidence relevant to this issue at respondent’s hearing. At several points during the hearing, respondent stated that she could not lift things, but the Administrative Law Judge did not question her on the subject at all,2 nor did he make any inquiry whether by “light-duty work” the first doctor meant the same thing as the Secretary’s term “light work.”

The Administrative Law Judge further failed to inquire whether factors besides strength, age, or education, combined with her other impairments, rendered respondent disabled. See 20 CFR pt. 404, supra, § 200.00(e)(2); ante, at 462, n. 5. Apparently such factors could have been dispositive of *473the case before us: The Secretary has since determined that respondent is in fact disabled, see ante, at 463, n. 7, based on consideration of severe emotional complications not explored at all by the Administrative Law Judge in the hearing that led to her petition for review in this case.3

This issue was not presented to the Court of Appeals, nor passed upon by it. See ante, at 468-469, n. 12. In terms of ensuring fair and accurate determinations of disability claims, the obligation that the Court of Appeals would have placed on administrative law judges was a poor substitute for good-faith performance of the “duty of inquiry” they already have. The federal courts have been successful in enforcing this duty in the past, see n. 1, supra, and I respectfully suggest that the Secretary insist upon its faithful performance in future cases.

Justice Marshall,

concurring in part and dissenting in part.

While I agree that the Secretary’s medical-vocational guidelines are valid, I believe that this case presents the additional question whether the Administrative Law Judge fulfilled his obligation to “loo[k] fully into the issues.” 20 CFR §404.944 (1982). See Richardson v. Perales, 402 U. S. 389, 410 (1971) (at the hearing the administrative law judge is required to “ac[t] as an examiner charged with developing the facts”). I would therefore remand this case for further proceedings.

I do not agree with the Court, ante, at 468-469, that the decision below does not question the adequacy of the Administrative Law Judge’s inquiry at the hearing. Although the Court of Appeals’ opinion is not entirely clear, the court ap*474pears to have concluded that Campbell was not given an adequate opportunity to demonstrate that she was unable to perform “light work.” The court explained as follows:

“ ‘The key consideration in the administrative proceeding must be that the claimant be given adequate opportunity to challenge the suitability ... of the jobs noticed. . . .’ [0]ur major concern is that the claimant be given adequate notice of the nature and demands of the types of jobs allegedly available. Absent sufficient notice, the claimant is deprived of any real chance to present evidence showing that she cannot in fact perform the types of jobs that are administratively noticed by the guidelines. This is particularly true in Ms. Campbell’s case where the ALJ gave no indication of any specific ‘light work’ jobs that she was capable of performing . . . .” Campbell v. Secretary of Dept. of Health and Human Services, 665 F. 2d 48, 53-54 (CA2 1981), quoting Decker v. Harris, 647 F. 2d 291, 298 (CA2 1981).1

The Court of Appeals remanded the case for further administrative proceedings at which Campbell would be given “a listing of particular types of jobs suitable to the capabilities of Ms. Campbell.” 665 F. 2d, at 54.

The Court of Appeals’ concern was amply justified in light of the hearing that was conducted in this case. The central *475issue at respondent’s hearing was whether she was capable of performing “light work.”2 If Campbell had shown that she was unable to perform “light work,” she would have been entitled to disability benefits under the Secretary’s guidelines. Although Campbell was afforded a hearing to determine whether she was disabled, she was never apprised of this central issue either in advance of or during the hearing. She was not represented by counsel, and the Administrative Law Judge who conducted the hearing never explained to her what “light work” entailed. Moreover, although the judge inquired at length into respondent’s medical problems, he conducted little inquiry into the effect of her medical problems on her capacity to perform work. Yet reasonably complete questioning concerning the claimant’s ability to function in her daily activity was essential to resolving this question in a fair manner.3

*476The above-quoted portions of the Court of Appeals’ decision demonstrate to my satisfaction that the question whether respondent received an adequate hearing is fairly raised by the decision below. It would have been well within the Court of Appeals’ authority under 42 U. S. C. § 405(g) (1976 ed., Supp. V) to order a new hearing if the court concluded that the Administrative Law Judge failed to conduct an adequate inquiry.4 That appears to be just what the court did when it remanded the case. The court required the judge to fulfill his obligation to elicit testimony concerning respondent’s capacity to perform “light work” by giving her a few examples of specific types of “light work” and allowing her to explain why she is unable to perform such work.

2.2.2.4 Vitarelli v. Seaton 2.2.2.4 Vitarelli v. Seaton

VITARELLI v. SEATON, SECRETARY OF THE INTERIOR, et al.

No. 101.

Argued April 1-2, 1959.

Decided June 1, 1959.

*536 Clifford J. .Hynning argued the cause for petitioner. With him on the brief was Harry E. Sprogell.

John G. Laughlin, Jr. argued the cause for respondents. With him on the brief were Solicitor General Rankin, Assistant Attorney General Doub and Samuel D. Slade.

Mr. Justice Harlan

delivered the opinion of the Court.

This case concerns, the legality of petitioner’s discharge as an employee of the Department of the Interior.. Vitarelli, an educator holding a. doctor’s degree from Columbia University,"' was appointed in 1952 by the Department of the Interior as an Education and Training Specialist in the Education Department of the Trust Territory of the Pacific Islands, at Koror in the Palau District, a mandated area for which this country has. responsibility.

By a letter dated March 30, 1954, respondent Secretary’s predecessor in office notified petitioner of his suspension from duty without pay, effective April 2, 1954, assigning as ground therefor various charges. Essentially, the charges were that petitioner from 1941 to 1945 *537had been in “sympathetic association” with three named persons alleged to have been members of or in sympathetic association with the Communist Party, and had concealed from the Government the true extent of these associations at the time of a previous inquiry into them; that he had registered as a supporter of the American Labor Party in New York City in 1945, had subscribed to the USSR Information Bulletin, and had purchased copies of the Daily Worker and New Masses; and that because such associations and activities tended to show that petitioner was “not reliable or trustworthy” his continued employment might be “contrary to the best interests of national security.”

Petitioner filed a written answer to the statement of charges, and appeared before a security hearing board on June 22 and July 1, 1954. At this hearing no evidence was adduced by the Department in support of the charges, nor did any witness testify against petitioner. Petitioner testified at length, and presented four witnesses, and he and the witnesses were extensively cross-examined by the security officer and the members of the hearing board. On September 2, 1954, a notice of dismissal effective September 10,1954, was sent petitioner over the signature of the Secretary, reciting that the dismissal was “in the interest of national security for the reasons specifically set forth in the letter of charges, dated March 30, 1954.” This was followed on September 21, 1954, with the filing of a “Notification of Personnel Action” setting forth the Secretary’s action. The record does not show that a copy of this document was ever sent to petitioner.

After having failed to obtain reinstatement by a demand upon the Secretary, petitioner filed suit in the United States District Court for the District of Columbia seeking a declaration that his dismissal had been illegal and ineffective and an injunction requiring his reinstatement. On October 10, 1956, while the case was pending in the *538District Court, a copy of a new “Notification of Personnel Action,” dated September 21, 1954, and reciting that it was “a revision of and replaces the original bearing the same date,’’.was filed in the District Court, and another copy of this document was delivered to petitioner shortly thereafter. This notification was identical with the one already mentioned, except that it omitted any reference to the reason for petitioner’s discharge and to the authority under which it was carried out.1 Thereafter the District Court granted summary judgment for the respondent. That judgment was affirmed by the Court of Appeals, one judge dissenting. 102 U. S. App. D. C. 316, 253 F. 2d 338. We granted certiorari to consider the validity of petitioner’s discharge. 358 U. S.,871.

The Secretary’s letter of March 30, 1954, and notice of dismissal of September 2, 1954, both relied upon Exec. Order No. 10450, 18 Fed. Reg. 2489 (1953), the Act of August 26, 1950, 64 Stat. 476, 5 U. S. C. § 22-1 et seq., and Department of the Interior Order No. 2738, all relating to discharges of government employees on security or loyalty grounds, as the authority for petitioner’s dismissal. In Cole v. Young, 351 U. S. 536, this Court. held that the statute referred to did not apply to government employees in positions not designated as “sensitive.” Respondent takes the position that since petitioner’s position in government service has át no time been designated as sensitive the effect of Cole, which was decided after the 1954 dismissal of petitioner, was to render also inapplicable to petitioner Department of the Interior Order No. 2738, under which the proceedings relating to petitioner’s dismissal were had. It is urged *539that in this state of affairs petitioner, who coneededly was at no time within the protection of the Civil Service Act, Veterans' Preference Act, or any other statute relating to employment rights of government employees, and who, as a “Schedule A” employee, could have been summarily discharged by the Secretary at any time without the giving of a reason, under no circumstances could be entitled to more than that which he has already received — namely, an “expunging” from the record of his 1954 discharge of any reference to the authority or reasons therefor.’

Respondent misconceives the effect of our decision in Cole. It is true that the Act of August 26, 1950, and the Executive Order did not alter the power of the Secretary to discharge summarily an employee in petitioner’s status, without the giving of any reason. Nor did the Department’s own regulations preclude such a course. Since, however, the Secretary gratuitously decided to give a reason, and that reason was national security, he was obligated to conform to the procedural standards he had formulated in Order No. 2738 for the dismissal of employees on security grounds. Service v. Dulles, 354 U. S. 363. That Order on its face applies to all security discharges in the Department of the Interior, including such discharges of Schedule A employees. Cole v. Young established that the Act of August 26, 1950, did not permit the discharge of nonsensitive employees pursuant to procedures authorized by that Act if those procedures were more summary than those to which the employee would have been entitled by virtue of any pre-existing statute or regulation. That decision cannot, however, justify noncompliance by the Secretary with regulations promulgated by him in the departmental Order, which as to petitioner afford greater procedural protections in the case of a dismissal stated to be for security reasons than in the case of dismissal without any statement of reasons. Having chosen to procéed against petitioner on security *540grounds, the Secretary here, as in Service, was bound by the regulations which he himself had promulgated for dealing with such cases, even though without such regulations he could have discharged petitioner summarily.

Petitioner makes various contentions as to the constitutional invalidity of the procedures provided by Order No. 2738. He further urges that even assuming the validity of the governing procedures, his dismissal cannot stand because the notice of suspension and hearing given him did not comply with the Order. We find it unnecessary to reach the constitutional issues, for we think that petitioner’s second position is well taken and must be sustained.

Preliminarily, it should be said that departures from departmental regulations in matters of this kind involve more than mere consideration of procedural irregularities. For in proceedings of this nature, in which the ordinary rules of evidence do not apply, in which matters involving the disclosure of confidential information are withheld, and where it must be recognized that counsel is under practical constraints in the making.of objections and in the tactical handling of his case which would not obtain in a cause being tried in a court of law before trained judges, scrupulous observance of departmental procedural safeguards is clearly of particular importance.2 In this instance an examination of the record, and of the transcript of the hearing before the departmental security board, discloses that petitioner’s procedural rights under the applicable regulations were violated in at least three material respects in the proceedings which terminated in the final notice of his dismissal.

. First, § 15 (a) of Order No. 2738 requires that the' statement of charges served upon an employee at the time *541of his suspension on security grounds “shall be as specific and detailed as security considerations, including the need for protection of confidential sources of information, permit . . . and shall be subject to amendment within 30 days of issuance.”. Although the statement of charges furnished petitioner appears on its face to be reasonably specific;3 the transcript of hearing establishes that the statement, jvhich was never amended, cannot conceivably be said in fact to be as specific and detailed as “security considerations . . . permit.” For petitioner was questioned by the security officer and by the . hearing board in great detail concerning Jhis association with and knowledge of various persons and organizations nowhere mentioned in the statement of charges,4 and at length concerning his activities in Bugks County, Pennsylvania, and elsewhere after 1945, activities as to which the charges are also completely silent. These questions were presumably asked because they were deemed relevant to the inquiry before the board, and the very fact that they were' asked and thus spread on the record is conclusive *542indication that “security considerations” could not have justified the omission of any statement concerning them in the charges furnished petitioner.

Second, §§ 21 (a) and (e) require that hearings before security hearing boards shall be “orderly” and that “reasonable restrictions shall be imposed as to relevancy,, competency, and materiality of matters considered.” The material set forth in the margin, taken from the transcript, and illustrative rather than exhaustive, shows that these indispensable indicia of & meaningful hearing were not observed.5 It is. not an overcharacterization to say *543that as the hearing proceeded it developed into a wide-ranging inquisition into this man’s educational, social, and- political beliefs, encompassing even a question as to whether he was “a religious man.”

*544 Third, § 21 (c) (4) gives the employee the right “to cross-examine any witness offered in ‘support of the charges.” It is apparent from an over-all reading of the regulations that it was not contemplated that this provision should require the Department to call witnesses to testify in support of any or all of the charges, because it was expected that charges might rest on information gathered from or by “confidential informants.” We think, however, that § 21 (c) (4) did contemplate the calling by the Department of any informant not properly classifiable as “confidential,” if information furnished by that informant was to be used by the board in assessing an employee’s status.6 The transcript shows that this *545provision was violated on at least one occasion at petitioner’s hearing, for the security officer-identified by name a person who had given information apparently considered, detrimental to petitioner, thus negating any possible inference that that person was considered a “confidential informant” whose identity it was necessary to keep secret, and questioned petitioner at some length concerning the information supplied from this source without calling the ■ informant and affording petitioner the right to cross-examine.7

Because thé proceedings attendant upon petitioner’s dismissal from government service on grounds of national security fell substantially short of-the requirements of the applicable departmental regulations, we hold that such dismissal was illegal and of no effect.

Respondent urges that even if the dismissal of September 10,1954, was invalid, petitioner is not entitled to reinstatement by reason of the fact that he was at all events vaiidly dismissed in October 1956, when a copy of the second' “Notification of Personnel Action,” omitting all reference to any statute, order, or regulation relating to seeúrity discharges, was delivered to him. Granting that the Secretary could at any time after September 10, 1954, have validly dismissed petitioner without any statement of reasons, and independently of - the proceedings taken against him under Order No. 2738, we cannot view the delivery of the new notification to petitioner as an exercise of that summary dismissal power. Rather, the fact that it was dated “9-21-54,” contained a termination of employment date of “9-10-54,” was designated as “a revision” of the 1954 notification, and was evidently filed in *546the District Court before its delivery to petitioner indicates that its sole purpose was an attempt to moot petitioner’s suit in the District Court by an “expunging” of the grounds for the dismissal which brought Order No. 2738 into play.8 In. these’'circumstances, we would not be justified in now treating the 1956 action, plainly intended by the Secretary as a grant of relief to petitioner in connection with the form of the 1954 discharge, as an exercise of the Secretary’s summary removal power as of the date of its delivery to petitioner.9

It follows from what we have said that petitioner, is entitled to the reinstatement which he seeks, subject, of course to any lawful exercise of the.Secretary’s authority hereafter to dismiss him from employment in the Department of the Interior.

Reversed.

Mr. Justice Frankfurter,

whom Mr. Justice Clark, - Mr. Justice Whittaker and Mr. Justice Stewart join,

concurring in part and dissenting in part.

An executive agency must be rigorously held to the standards by which it professes its action to be judged. See Securities & Exchange Comm’n v. Chenery Corp., 318 U. S. 80, 87-88. Accordingly, if dismissal from *547employment is based on a defined procedure, even though generous beyond the requirements that bind such agency, that procedure must be scrupulously observed. See Service v. Dulles, 354 U. S. 363. This judicially evolved rule of administrative law is now firmly established and, if I may add, rightly so. He that takes the procedural sword shall perish with that sword. Therefore, I unreservedly join in the Court’s main conclusion, that the attempted dismissal of Vitarelli in September 1954 was abortive and of no validity because the procedure under Department of the Interior Order No. 2738 was invoked but not observed.

But when an executive agency draws on the freedom that the law vests in it, the judiciary cannot deny or curtail such freedom. The Secretary of the Interior con-cededly had untrammelled right to dismiss Vitarelli out of hand, since he had no protected ■ employment rights. He could do so as freely as a private employer who is not bound by procedural restrictions of a collective bargaining contract. The Secretary was under no law-imposed or self-imposed restriction in discharging an employee in Vitarelli’s position without statement of reasons and without a hearing. And so the question is, did the Secretary take action, after the abortive discharge in 1954, dismissing Vitarelli?

T o October 1956 there was served upon Vitarelli a copy of a new notice of dismissal which had been inserted in the Department’s personnel records in place of the first notice. Another copy was filed with the District Court in this proceeding. This second notice contained no mention of grounds of discharge. If, instead of sending this second notice to Vitarelli, the Secretary had telephoned Vitarelli to convey the contents of the second notice, he would have said: “I note that you are contesting the validity of the dismissal. I want to make this very clear to you. If I did not succeed in dismissing you before, *548I now dismiss you, and I dismiss you retroactively, effective September 1954.”

The Court disallows this significance to the second notice of discharge because it finds controlling meaning •in the suggestion of the Government that’the expunging from the record of any adverse comment, and the second notice of dischargé, signified a reassertion of the effectiveness of the first attempt at dismissal. And so, the Court concludes, no intention of severance from service in 1956 could legally be found since the Secretary expressed no doubt that the first dismissal had been effective. But this document of 1956 was not a mere piece of paper in a dialectic. The paper was a record of a process, a manifestation of purpose and action. The intendment of the second notice, to be sure, was to discharge Vitarelli retroactively, resting this attempted dismissal on valid authority — the summary power to dismiss without reason. Though the second notice could not pre-date the summary discharge because the Secretary rested his 1954 discharge on an unsustainable ground, and Vitarelli could ■not be deprived of rights accrued during two years of unlawful discharge, the prior wrongful action did not deprive the Secretary of the power in him to fire Vitarelli prospectively.' And if the intent of the Secretary be manifested in fact by what he- did, hpwever that intent be expressed — here,' the intent to be rid of Vitarelli — the Court should not frustrate the Secretary’s rightful exercise of this power as of- October 1956. The fact that he wished to accomplish more does not mean he accomplished nothing.

To construe the second notice to mean administratively nothing is to attribute to the Secretary the purpose of a mere diarist, the corrector of entries in. the Department’s archives. This wholly disregards the actualities in the conduct of a Department concerned with terminating the services of an undesired employee as completely and by *549whatever means .that may legally be accomplished. If an employer summons before him an employee over whom he has unfettered power of dismissal and says to him: “You are no longer employed here because I fired you last week,” can one reasonably escape the conclusion that though the employer was in error and had not effectively carried out his purpose to fire the employee last week, the employer’s statement clearly manifests a present belief that the employee is dismissed and an intention that he be foreverafter dismissed? Certainly the employee would have no doubt his employment was now. at an end. Of course if some special formal document were required to bring about a severance of a relationship, cf. Felter v. Southern Pacific Co., 359 U. S. 326, because of non-compliance with the formality the severance would not come into being. But no such formality was requisite to Vitarelli’s dismissal.

This is the common sense of it: In 1956 the Secretary said to Vitarelli: “This document tells you without any ifs, ands,.or buts, you have been fired right along and of course that means you are not presently employed by this Department.” Since he had not been fired successfully in 1954, the Court concludes he must still be employed. I cannot join in án unreal interpretation which attributes to governmental action the empty meaning of confetti throwing.

2.2.3 APA Designated Processes 2.2.3 APA Designated Processes

As discussed earlier in the casebook, the APA distinguishes between adjudication and rulemaking. Less clear, but no less important, is that it distinguishes between formal and informal varieties of each category of action (Note: a recent article challenges this longstanding received wisdom when it comes to adjudication, and we'll talk more about this challenge in class. See Emily S. Bremer, The Rediscovered Stages of Agency Adjudication, 99 Wash. U. L. Rev. 377 (2021).)

If you put these two distinctions together, you end up with a very helpful 2X2 table that, to a large extent (exceptions do apply) maps the terrain of possible agency action. The most barebones version of this 2X2 table is below:

  Adjudication Rulemaking
Formal Trial-type proceeding, conducted on the record, governed by the procedures in 5 U.S.C. §§ 554, 556, 557. Trial-type proceeding, conducted on the record, governed by the procedures in 5 U.S.C. §§ 553, 556, 557.
Informal Only the bare minimum procedures outlined in 5 U.S.C. § 555 need apply

Paper hearing with notice-and-comment (unless excepted), governed by 5 U.S.C. § 553 alone.

Knowing what kind of action in this simple 2X2 you are dealing with is your starting point for answering almost any procedural administrative law question you might confront. This is a bit of an overstatement, of course--the law is never that simple. For one thing, each of the sections cited in this table contains many provisions, many of which are not crystal clear, and this introduces opportunities for agencies to improvise (at least above the "floor" set out clearly in the APA) and for parties affected by agency action to argue that agencies did not really comply with its requirements. For another thing, as the introductory section mentioned, sometimes Congress mandates that agencies comply with agency-specific procedures that can often be a mashup, or hybrid, of the APA's categories.

Thus, as you read the materials in this section, you need to figure out which quadrant applies, if any, and then figure out what procedural requirements, if any, are in question. Doing so is best done by studying the APA's text closely and reading how courts have sorted out the answers in a sample of cases. As you will see, core themes from the introductory chapter about how to deal with indeterminacy in administrative law are very important here. Historically, courts have drawn on the purposes of administrative law to flesh out the APA's bare bones, but in many ways the center of gravity has shifted to a more textualist/originalist approach. These shifts, unfortunately, do not provide too much certainty about what procedures are required of agencies, although there are certain rules that seem beyond reconsideration. Our goal in this subsection is to map the terrain and understand both what is absolutely required of agencies and how agencies ought to navigate the "white space" between the rules. See Emily S. Bremer & Sharon B. Jacobs, Agency Innovation in Vermont Yankee's White Space, 32 J. Land Use & Envtl. L. 523 (2017).

2.2.3.1 Adjudication 2.2.3.1 Adjudication

2.2.3.1.1 Procedural Steps 2.2.3.1.1 Procedural Steps

2.2.3.1.1.1 Adjudications 2.2.3.1.1.1 Adjudications

(a) This section applies, according to the provisions thereof, in every case of adjudication required by statute to be determined on the record after opportunity for an agency hearing, except to the extent that there is involved—

(1) a matter subject to a subsequent trial of the law and the facts de novo in a court;

(2) the selection or tenure of an employee, except a 1 administrative law judge appointed under section 3105 of this title;

(3) proceedings in which decisions rest solely on inspections, tests, or elections;

(4) the conduct of military or foreign affairs functions;

(5) cases in which an agency is acting as an agent for a court; or

(6) the certification of worker representatives.


(b) Persons entitled to notice of an agency hearing shall be timely informed of—

(1) the time, place, and nature of the hearing;

(2) the legal authority and jurisdiction under which the hearing is to be held; and

(3) the matters of fact and law asserted.


When private persons are the moving parties, other parties to the proceeding shall give prompt notice of issues controverted in fact or law; and in other instances agencies may by rule require responsive pleading. In fixing the time and place for hearings, due regard shall be had for the convenience and necessity of the parties or their representatives.

(c) The agency shall give all interested parties opportunity for—

(1) the submission and consideration of facts, arguments, offers of settlement, or proposals of adjustment when time, the nature of the proceeding, and the public interest permit; and

(2) to the extent that the parties are unable so to determine a controversy by consent, hearing and decision on notice and in accordance with sections 556 and 557 of this title.


(d) The employee who presides at the reception of evidence pursuant to section 556 of this title shall make the recommended decision or initial decision required by section 557 of this title, unless he becomes unavailable to the agency. Except to the extent required for the disposition of ex parte matters as authorized by law, such an employee may not—

(1) consult a person or party on a fact in issue, unless on notice and opportunity for all parties to participate; or

(2) be responsible to or subject to the supervision or direction of an employee or agent engaged in the performance of investigative or prosecuting functions for an agency.


An employee or agent engaged in the performance of investigative or prosecuting functions for an agency in a case may not, in that or a factually related case, participate or advise in the decision, recommended decision, or agency review pursuant to section 557 of this title, except as witness or counsel in public proceedings. This subsection does not apply—

(A) in determining applications for initial licenses;

(B) to proceedings involving the validity or application of rates, facilities, or practices of public utilities or carriers; or

(C) to the agency or a member or members of the body comprising the agency.


(e) The agency, with like effect as in the case of other orders, and in its sound discretion, may issue a declaratory order to terminate a controversy or remove uncertainty.

Notes

Historical and Revision Notes
DerivationU.S. CodeRevised Statutes and

Statutes at Large

5 U.S.C. 1004. June 11, 1946, ch. 324, §5, 60 Stat. 239.

In subsection (a)(2), the word "employee" is substituted for "officer or employee of the United States" in view of the definition of "employee" in section 2105.

In subsection (a)(4), the word "naval" is omitted as included in "military".

In subsection (a)(5), the word "or" is substituted for "and" since the exception is applicable if any one of the factors are involved.

In subsection (a)(6), the word "worker" is substituted for "employee", since the latter is defined in section 2105 as meaning Federal employees.

In subsection (b), the word "When" is substituted for "In instances in which".

In subsection (c)(2), the comma after the word "hearing" is omitted to correct an editorial error.

In subsection (d), the words "The employee" and "such an employee" are substituted in the first two sentences for "The same officers" and "such officers" in view of the definition of "employee" in section 2105. The word "officer" is omitted in the third and fourth sentences as included in "employee" as defined in section 2105. The prohibition in the third and fourth sentences is restated in positive form. In paragraph (C) of the last sentence, the words "in any manner" are omitted as surplusage.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Codification

Section 554 of former Title 5, Executive Departments and Government Officers and Employees, was transferred to section 2246 of Title 7, Agriculture.

Amendments

1978—Subsec. (a)(2). Pub. L. 95–251 substituted "administrative law judge" for "hearing examiner".

2.2.3.1.1.2 Hearings; presiding employees; powers and duties; burden of proof; evidence; record as basis of decision 2.2.3.1.1.2 Hearings; presiding employees; powers and duties; burden of proof; evidence; record as basis of decision

(a) This section applies, according to the provisions thereof, to hearings required by section 553 or 554 of this title to be conducted in accordance with this section.

(b) There shall preside at the taking of evidence—

(1) the agency;

(2) one or more members of the body which comprises the agency; or

(3) one or more administrative law judges appointed under section 3105 of this title.


This subchapter does not supersede the conduct of specified classes of proceedings, in whole or in part, by or before boards or other employees specially provided for by or designated under statute. The functions of presiding employees and of employees participating in decisions in accordance with section 557 of this title shall be conducted in an impartial manner. A presiding or participating employee may at any time disqualify himself. On the filing in good faith of a timely and sufficient affidavit of personal bias or other disqualification of a presiding or participating employee, the agency shall determine the matter as a part of the record and decision in the case.

(c) Subject to published rules of the agency and within its powers, employees presiding at hearings may—

(1) administer oaths and affirmations;

(2) issue subpenas authorized by law;

(3) rule on offers of proof and receive relevant evidence;

(4) take depositions or have depositions taken when the ends of justice would be served;

(5) regulate the course of the hearing;

(6) hold conferences for the settlement or simplification of the issues by consent of the parties or by the use of alternative means of dispute resolution as provided in subchapter IV of this chapter;

(7) inform the parties as to the availability of one or more alternative means of dispute resolution, and encourage use of such methods;

(8) require the attendance at any conference held pursuant to paragraph (6) of at least one representative of each party who has authority to negotiate concerning resolution of issues in controversy;

(9) dispose of procedural requests or similar matters;

(10) make or recommend decisions in accordance with section 557 of this title; and

(11) take other action authorized by agency rule consistent with this subchapter.


(d) Except as otherwise provided by statute, the proponent of a rule or order has the burden of proof. Any oral or documentary evidence may be received, but the agency as a matter of policy shall provide for the exclusion of irrelevant, immaterial, or unduly repetitious evidence. A sanction may not be imposed or rule or order issued except on consideration of the whole record or those parts thereof cited by a party and supported by and in accordance with the reliable, probative, and substantial evidence. The agency may, to the extent consistent with the interests of justice and the policy of the underlying statutes administered by the agency, consider a violation of section 557(d) of this title sufficient grounds for a decision adverse to a party who has knowingly committed such violation or knowingly caused such violation to occur. A party is entitled to present his case or defense by oral or documentary evidence, to submit rebuttal evidence, and to conduct such cross-examination as may be required for a full and true disclosure of the facts. In rule making or determining claims for money or benefits or applications for initial licenses an agency may, when a party will not be prejudiced thereby, adopt procedures for the submission of all or part of the evidence in written form.

(e) The transcript of testimony and exhibits, together with all papers and requests filed in the proceeding, constitutes the exclusive record for decision in accordance with section 557 of this title and, on payment of lawfully prescribed costs, shall be made available to the parties. When an agency decision rests on official notice of a material fact not appearing in the evidence in the record, a party is entitled, on timely request, to an opportunity to show the contrary.

Notes

Historical and Revision Notes
DerivationU.S. CodeRevised Statutes and

Statutes at Large

5 U.S.C. 1006. June 11, 1946, ch. 324, §7, 60 Stat. 241.

In subsection (b), the words "hearing examiners" are substituted for "examiners" in paragraph (3) for clarity. The prohibition in the second sentence is restated in positive form and the words "This subchapter does not" are substituted for "but nothing in this chapter shall be deemed to". The words "employee" and "employees" are substituted for "officer" and "officers" in view of the definition of "employee" in section 2105. The sentence "A presiding or participating employee may at any time disqualify himself." is substituted for the words "Any such officer may at any time withdraw if he deems himself disqualified."

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Amendments

1990—Subsec. (c)(6). Pub. L. 101–552, §4(a)(1), inserted before semicolon at end "or by the use of alternative means of dispute resolution as provided in subchapter IV of this chapter".

Subsec. (c)(7) to (11). Pub. L. 101–552, §4(a)(2), added pars. (7) and (8) and redesignated former pars. (7) to (9) as (9) to (11), respectively.

1978—Subsec. (b)(3). Pub. L. 95–251 substituted "administrative law judges" for "hearing examiners".

1976—Subsec. (d). Pub. L. 94–409 inserted provisions relating to consideration by agency of a violation under section 557(d) of this title.

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–409 effective 180 days after Sept. 13, 1976, see section 6 of Pub. L. 94–409, set out as an Effective Date note under section 552b of this title.

Hearing Examiners Employed by Department of Agriculture

Functions vested by this subchapter in hearing examiners employed by Department of Agriculture not included in functions of officers, agencies, and employees of that Department transferred to Secretary of Agriculture by 1953 Reorg. Plan No. 2, §1, eff. June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out in the Appendix to this title.

Hearing Examiners Employed by Department of Commerce

Functions vested by this subchapter in hearing examiners employed by Department of Commerce not included in functions of officers, agencies, and employees of that Department transferred to Secretary of Commerce by 1950 Reorg. Plan No. 5, §1, eff. May 24, 1950, 15 F.R. 3174, 64 Stat. 1263, set out in the Appendix to this title.

Hearing Examiners Employed by Department of the Interior

Functions vested by this subchapter in hearing examiners employed by Department of the Interior not included in functions of officers, agencies, and employees of that Department transferred to Secretary of the Interior by 1950 Reorg. Plan No. 3, §1, eff. May 24, 1950, 15 F.R. 3174, 64 Stat. 1262, set out in the Appendix to this title.

Hearing Examiners Employed by Department of Justice

Functions vested by this subchapter in hearing examiners employed by Department of Justice not included in functions of officers, agencies, and employees of that Department transferred to Attorney General by 1950 Reorg. Plan No. 2, §1, eff. May 24, 1950, 15 F.R. 3173, 64 Stat. 1261, set out in the Appendix to this title.

Hearing Examiners Employed by Department of Labor

Functions vested by this subchapter in hearing examiners employed by Department of Labor not included in functions of officers, agencies, and employees of that Department transferred to Secretary of Labor by 1950 Reorg. Plan No. 6, §1, eff. May 24, 1950, 15 F.R. 3174, 64 Stat. 1263, set out in the Appendix to this title.

Hearing Examiners Employed by Department of the Treasury

Functions vested by this subchapter in hearing examiners employed by Department of the Treasury not included in functions of officers, agencies, and employees of that Department transferred to Secretary of the Treasury by 1950 Reorg. Plan. No. 26, §1, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to this title.

2.2.3.1.1.3 Initial decisions; conclusiveness; review by agency; submissions by parties; contents of decisions; record 2.2.3.1.1.3 Initial decisions; conclusiveness; review by agency; submissions by parties; contents of decisions; record

(a) This section applies, according to the provisions thereof, when a hearing is required to be conducted in accordance with section 556 of this title.

(b) When the agency did not preside at the reception of the evidence, the presiding employee or, in cases not subject to section 554(d) of this title, an employee qualified to preside at hearings pursuant to section 556 of this title, shall initially decide the case unless the agency requires, either in specific cases or by general rule, the entire record to be certified to it for decision. When the presiding employee makes an initial decision, that decision then becomes the decision of the agency without further proceedings unless there is an appeal to, or review on motion of, the agency within time provided by rule. On appeal from or review of the initial decision, the agency has all the powers which it would have in making the initial decision except as it may limit the issues on notice or by rule. When the agency makes the decision without having presided at the reception of the evidence, the presiding employee or an employee qualified to preside at hearings pursuant to section 556 of this title shall first recommend a decision, except that in rule making or determining applications for initial licenses—

(1) instead thereof the agency may issue a tentative decision or one of its responsible employees may recommend a decision; or

(2) this procedure may be omitted in a case in which the agency finds on the record that due and timely execution of its functions imperatively and unavoidably so requires.


(c) Before a recommended, initial, or tentative decision, or a decision on agency review of the decision of subordinate employees, the parties are entitled to a reasonable opportunity to submit for the consideration of the employees participating in the decisions—

(1) proposed findings and conclusions; or

(2) exceptions to the decisions or recommended decisions of subordinate employees or to tentative agency decisions; and

(3) supporting reasons for the exceptions or proposed findings or conclusions.


The record shall show the ruling on each finding, conclusion, or exception presented. All decisions, including initial, recommended, and tentative decisions, are a part of the record and shall include a statement of—

(A) findings and conclusions, and the reasons or basis therefor, on all the material issues of fact, law, or discretion presented on the record; and

(B) the appropriate rule, order, sanction, relief, or denial thereof.


(d)(1) In any agency proceeding which is subject to subsection (a) of this section, except to the extent required for the disposition of ex parte matters as authorized by law—

(A) no interested person outside the agency shall make or knowingly cause to be made to any member of the body comprising the agency, administrative law judge, or other employee who is or may reasonably be expected to be involved in the decisional process of the proceeding, an ex parte communication relevant to the merits of the proceeding;

(B) no member of the body comprising the agency, administrative law judge, or other employee who is or may reasonably be expected to be involved in the decisional process of the proceeding, shall make or knowingly cause to be made to any interested person outside the agency an ex parte communication relevant to the merits of the proceeding;

(C) a member of the body comprising the agency, administrative law judge, or other employee who is or may reasonably be expected to be involved in the decisional process of such proceeding who receives, or who makes or knowingly causes to be made, a communication prohibited by this subsection shall place on the public record of the proceeding:

(i) all such written communications;

(ii) memoranda stating the substance of all such oral communications; and

(iii) all written responses, and memoranda stating the substance of all oral responses, to the materials described in clauses (i) and (ii) of this subparagraph;


(D) upon receipt of a communication knowingly made or knowingly caused to be made by a party in violation of this subsection, the agency, administrative law judge, or other employee presiding at the hearing may, to the extent consistent with the interests of justice and the policy of the underlying statutes, require the party to show cause why his claim or interest in the proceeding should not be dismissed, denied, disregarded, or otherwise adversely affected on account of such violation; and

(E) the prohibitions of this subsection shall apply beginning at such time as the agency may designate, but in no case shall they begin to apply later than the time at which a proceeding is noticed for hearing unless the person responsible for the communication has knowledge that it will be noticed, in which case the prohibitions shall apply beginning at the time of his acquisition of such knowledge.


(2) This subsection does not constitute authority to withhold information from Congress.

Notes

Historical and Revision Notes
DerivationU.S. CodeRevised Statutes and

Statutes at Large

5 U.S.C. 1007. June 11, 1946, ch. 324, §8, 60 Stat. 242.

In subsection (b), the word "employee" is substituted for "officer" and "officers" in view of the definition of "employee" in section 2105. The word "either" is added after the word "requires" in the first sentence to eliminate the need for parentheses. The words "the presiding employee or an employee qualified to preside at hearings under section 556 of this title" are substituted for "such officers" in the last sentence. The word "initial" is omitted before "decision", the final word in the first sentence and the sixth word of the fourth sentence, to avoid confusion between the "initial decision" of the presiding employee and the "initial decision" of the agency.

In subsection (c), the word "employees" is substituted for "officers" in view of the definition of "employee" in section 2105.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Codification

Section 557 of former Title 5, Executive Departments and Government Officers and Employees, was transferred to section 2207 of Title 7, Agriculture.

Section 557a of former Title 5, Executive Departments and Government Officers and Employees, was transferred to section 2208 of Title 7.

Amendments

1976—Subsec. (d). Pub. L. 94–409 added subsec. (d).

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–409 effective 180 days after Sept. 13, 1976, see section 6 of Pub. L. 94–409, set out as an Effective Date note under section 552b of this title.

2.2.3.1.1.4 Citizens Awareness Network, Inc. v. United States 2.2.3.1.1.4 Citizens Awareness Network, Inc. v. United States

CITIZENS AWARENESS NETWORK, INC., Petitioner, and National Whistleblower Center et al., Intervenors, v. UNITED STATES of America and United States Nuclear Regulatory Commission, Respondents, and Nuclear Energy Institute, Inc., Intervenor. Public Citizen Critical Mass Energy and Environment Program et al., Petitioners, v. United States of America and United States Nuclear Regulatory Commission, Respondents.

Nos. 04-1145, 04-1359.

United States Court of Appeals, First Circuit.

Heard Sept. 13, 2004.

Decided Dec. 10, 2004.

*342Jonathan Mark Block for petitioner Citizens Awareness Network.

Stephen M. Kohn on brief for interve-nors National Whistleblower Center and Committee for Safety at Plant Zion.

Michael T. Kirkpatrick, with whom Bonnie I. Robin-Vergeer and Scott L. Nelson were on brief, for petitioners Public Citizen Critical Mass Energy and Environment Program and Nuclear Information and Resource Service.

Thomas F. Reilly, Attorney General (Massachusetts), and Nora J. Chorover, Assistant Attorney General (Massachusetts), on brief for Massachusetts, California, Connecticut, New Hampshire, and New York, amici curiae.

Steven F. Crockett, Special Counsel, United States Nuclear Regulatory Commission, with whom Thomas L. Sansonetti, Assistant Attorney General, Greer S. Goldman and Lisa E. Jones, Attorneys, Environment and Natural Resources Division, United States Department of Justice, Karen D. Cyr, General Counsel, John F. Cordes, Jr., Solicitor, E. Leo Slaggie, Deputy Solicitor, and Shelly D. Cole, Attorney, United States Nuclear Regulatory Commission, were on brief, for respondents.

Ellen C. Ginsberg, with whom Robert W. Bishop and Michael A. Bauser were on *343brief, for intervenor Nuclear Energy Institute, Inc.

Before SELYA, LIPEZ and HOWARD, Circuit Judges.

SELYA, Circuit Judge.

Disenchanted with its existing procedural framework for the conduct of adjudicatory hearings, the Nuclear Regulatory Commission (NRC or Commission) promulgated new rules designed to make its hearing processes more efficient. These new rules greatly reduce the level of formality in reactor licensing proceedings but, at the same time, place certain unaccustomed restrictions upon the parties. The petitioners and petitioner-intervenors are public interest groups. Supported by the Attorneys General of five states (who have filed a helpful amicus brief), they claim that the new rules violate a statutory requirement that all reactor licensing-hearings be conducted in accordance with sections 554, 556, and 557 of the Administrative Procedure Act (APA), 5 U.S.C. §§ 554, 556 & 557. 1 In the alternative, they claim that the Commission has not put forth an adequate justification for so substantial a departure from prior practice and that, therefore, the new rules must be set aside as arbitrary and capricious. Fully cognizant of the gravity of our task, we have studied the complex statutory and regulatory framework and scrutinized the plenitudinous administrative record. After completing that perscrutation and grappling with an antecedent jurisdictional question, we find that the new procedures in fact comply with the relevant provisions of the APA and that the Commission has furnished an adequate explanation for the changes. Consequently, we deny the petitions for review.

I. BACKGROUND

The NRC is the federal agency charged with regulating the use of nuclear energy, including the licensing of reactors used for power generation. See 42 U.S.C. § 2201. The Atomic Energy Act requires the Commission to hold a hearing “upon the request of any person whose interest may be affected,” id. § 2239(a)(1)(A), before granting a new license, a license amendment, or a license renewal.

The NRC’s predecessor agency, the Atomic Energy Commission (AEC), originally interpreted this provision as requiring on-the-record hearings in accordance with the APA. See Hearings Before the Subcommittee on Legislation, Joint Committee on Atomic Energy, 87th Cong. 60 (1962) (letter of AEC Commissioner Loren K. Olsen). These hearings closely resembled federal court trials, complete with a full panoply of discovery devices and direct and cross-examination of witnesses by advocates for the parties. Such hearings proved to be very lengthy; some lasted as long as seven years.

In 1982, the NRC relaxed its approach for certain types of licensing proceedings. See, e.g., In re Kerr-McGee Corp., 15 N.R.C. 232, 235, 1982 WL 31680 (1982) (determining that formal hearings are not necessary in materials licensing cases). Although the results were heartening, the Commission nevertheless retained the full range of trial-like procedures for reactor licensing cases. The passage of time brought further changes: faced with the prospect of hearings on many license renewal applications in the near future — -a large number of reactors were initially licensed in the decade from 1960 to 1970 *344and the standard term for. such licenses was forty years — the Commission began to reassess its adjudicatory processes, focusing particularly on the procedures used in reactor licensing cases. The NRC’s issuance, in 1998, of a policy on the conduct of adjudicatory proceedings, 63 Fed.Reg. 41,-" 872 (Aug. 5, 1998), marked the inception of this process. This policy statement reiterated the NR'C’s commitment to expeditious adjudication and urged hearing officers to employ a variety of innovative case-management techniques in order to improve hearing efficiency.

While encouraging better utilization of existing procedures, the Commission also began pondering possible procedural revisions. In January of 1999, the NRC’s general counsel drafted a legal memorandum concluding that the Atomic Energy Act did not require reactor licensing hearings to be on the record and, accordingly, that the Commission had the option of replacing the existing format with a truncated regime. Later that year, the Commission held a widely attended workshop on hearing procedures. Building on this foundation, the Commission published a notice of proposed rulemaking on April 16, 2001, 66 Fed.Reg. 19,610, suggesting a major revision of its hearing procedures. In an accompanying statement, the Commission took the position that section 189 of the Atomic Energy Act, 42 U.S.C. § 2239, does not require reactor licensing proceedings to be on the record.

On January 14, 2004, the NRC published a final rule, along with a response to the comments that the proposed rule had generated. See 69 Fed.Reg. 2,182. With minor exceptions, the final rule replicated the proposed rule. The statement of considerations for the final rule reiterated the Commission’s view that reactor licensing hearings may be informal.

The new rules took effect on February 13, 2004. Although they apply to all adjudications conducted by the NRC, the petitioners only challenge their application to reactor licensing proceedings. We therefore confine our ensuing discussion to that aspect of the new rules.

Under the old protocol, all reactor licensing hearings were conducted according to the procedures outlined in 10 C.F.R. part 2, subpart G. The subpart G rules resemble those associated with judicial proceedings.2 They include a complete ar-mamentarium of traditional discovery devices (e.g., requests for document production, interrogatories, and depositions). 10 C.F.R. § 2.705. The parties may make motions for summary disposition (although the hearing officer is not required to entertain them). Id. § 2.710. There is an evidentiary hearing at which testimony is presented through direct and cross-examination of witnesses by the parties. Id. § 2.711.

Under the new rules, reactor licensing-hearings are, for the most part, to be conducted according to a less elaborate set of procedures described in 10 C.F.R. pt. 2, subpart L.3 The new subpart — which differs materially from the old subpart L— limns a streamlined hearing procedure. Unlike subpart G, subpart L does not pro*345vide for traditional discovery. 10 C.F.R. § 2.1203. Instead, parties in hearings governed by subpart L are required to make certain mandatory disclosures (akin to “open file” discovery) anent expert witnesses, expert witness reports, relevant documents, data compilations, and claims of privilege. Id. § 2.336.

The hearings themselves also differ. Under subpart L, the presumption is that all interrogation of witnesses will be undertaken by the hearing officer, not the litigants. Id. § 2.1207. Parties are allowed to submit proposed questions in advance of the hearing, but the presiding officer is under no compulsion to pose them. Id. Parties are not allowed to submit proposed questions during the hearing unless requested to do so by the presiding officer. Id. Cross-examination is not available as of right, although a party may request permission to conduct cross-examination that it deems “necessary to ensure the development of an adequate record for decision.” Id. § 2.1204. A party seeking leave to conduct cross-examination must submit a cross-examination plan, which will be included in the record of the proceeding regardless of whether the request is allowed. Id.

The petitioners — we use that phrase broadly to include the petitioner-interve-nors — took umbrage at these changes and brought these petitions for judicial review. Their primary claim is that the Commission erred in its determination that reactor licensing proceedings do not have to be fully formal adjudications. In their view, the new rules do not comply with the APA’s requirements for on-the-record adjudication and, therefore, cannot stand. As a fallback, the petitioners assert that even if the new rules are not ultra vires, they must be set aside as arbitrary and capricious.

II. APPELLATE JURISDICTION

The parties have operated on the assumption that this court has first-instance jurisdiction to hear and determine their petitions for judicial review. We are not so sanguine — and we are cognizant that, as a court of limited jurisdiction, subject-matter jurisdiction will not accrete to us either by the parties’ acquiescence or by their consent. Espinal-Dominguez v. Puerto Rico, 352 F.3d 490, 495 (1st Cir.2003). Consequently, we asked the parties to address what we perceived to be a thorny question relating to our authority to entertain these petitions. Before proceeding to the merits of the petitioners’ asseverational array, we must resolve that question.

The facts are as follows. The petitioners premise jurisdiction on the Administrative Orders Review Act, 28 U.S.C. §§ 2341-2351, better known as the Hobbs Act. In pertinent part, that statute confers original jurisdiction on the courts of appeals to hear petitions for judicial review of “all final orders of the [NRC] made reviewable by section 2239 of title 42.” Id. at § 2342(4). In turn, 42 U.S.C. § 2239(b) makes reviewable, inter alia, “[a]ny final order entered in any proceeding of the kind specified in subsection (a) of this section.” The proceedings enumerated in that subsection include those for “the granting, suspending, revoking, or amending of any license or construction permit, or application to transfer control, and in any proceeding for the issuance or modification of rules and regulations dealing with the activities of licensees.” Id. § 2239(a).

Read literally, these interlocking statutes would not seem to grant jurisdiction to this court. After all, the petitioners are challenging a rule, not an order. The APA, which is made applicable to the Commission by 42 U.S.C. § 2231, defines an order as “the whole or a part of a final *346disposition, whether affirmative, negative, injunctive, or declaratory in form, of an agency in a matter other than rule making 5 U.S.C. § 551(6) (emphasis supplied). Thus, the action at issue here — a rulemaking — would appear to fall outside the scope of review provided by the Hobbs Act.

Even if one were tempted to suppose that Congress simply misspoke in limiting Hobbs Act jurisdiction to the review of orders, other sections of the Act would seem to militate against a judicial reconstruction of the term “order” to encompass rulemaking. The Act explicitly provides for initial court of appeals review of “all rules, regulations, or final orders” of the Secretary of Transportation, the Federal Maritime Commission, and the Surface Transportation Board. 42 U.S.C. §§ 2342(3), 2342(5). The principle is clear that Congress’s use of differential language in various sections of the same statute is presumed to be intentional and deserves interpretive weight. See Duncan v. Walker, 533 U.S. 167, 173, 121 S.Ct. 2120, 150 L.Ed.2d 251 (2001); In re 229 Main St. Ltd. P’ship, 262 F.3d 1, 5-6 (1st Cir. 2001).

Were we writing on a pristine page, we would likely find this careful parsing persuasive and thus dismiss the case so that the petitioners could seek initial review in an appropriate district court. The page, however, is cluttered, not pristine. There is a substantial body of precedent elaborating the scope of the Hobbs Act with respect to both the NRC and other agencies to which it applies.

The key case is Florida Power & Light Co. v. Lorion, 470 U.S. 729, 105 S.Ct. 1598, 84 L.Ed.2d 643 (1985), in which the Supreme Court determined that Hobbs Act jurisdiction existed in the courts of appeals for initial review of the NRC’s denial of citizen petitions to suspend or revoke licenses. Id. at 746, 105 S.Ct. 1598. In making this determination, the Court declared that the language of section 2239 was ambiguous as to whether it limited judicial review to orders entered in proceedings under that section. Id. at 736, 105 S.Ct. 1598. The Court then declared that the Hobbs Act should be interpreted broadly, so as to maximize the availability of initial circuit court review of licensing proceedings. Id. at 745, 105 S.Ct. 1598.

The Court laid out two grounds in support of this reasoning. First, it cited efficiency concerns. In this regard, the Court deemed initial circuit court review the better use of judicial resources, observed that such a course eliminates one layer of review, and stressed that there is usually no need for the compilation of either a fresh or an augmented record in agency review proceedings. Id. at 744, 105 S.Ct. 1598. Second, the Court harangued against the evils of piecemeal review. In this regard, it warned that when Congress clearly places initial review of some agency actions in the courts of appeals, the jurisdictional provision should not be interpreted narrowly to shunt review of other agency actions to the district courts. Id. at 741-42, 105 S.Ct. 1598. For these reasons, the Court admonished that “[ajbsent a firm indication that Congress intended to locate initial APA review of agency action in the district courts, we will not presume that Congress intended to depart from the sound policy of placing initial APA review in the courts of appeals.” Id. at 745, 105 S.Ct. 1598.

Lorion has displayed remarkable vitality. The Seventh Circuit applied its teachings in Commonwealth Edison Co. v. U.S. NRC, 830 F.2d 610 (7th Cir.1987), finding jurisdiction to review the Commission’s assessment of fees for the processing of a licensing application. Id. at 613. In the court’s view, the assessment was sufficient*347ly related to a licensing proceeding to ground circuit court jurisdiction. Id. at 612-13. Pertinently for present purposes, the court, in the exercise of its discerned jurisdiction, reviewed the underlying rules on which the Commission had based its assessment. Id. at 616.

Closer to home, this court has applied Lotion to find jurisdiction when a contrary reading of the applicable statute would, for no apparent reason, have divided judicial review between the district courts and the courts of appeals. See City of Boston v. U.S. HUD, 898 F.2d 828, 834-35 (1st Cir.1990). The Third Circuit has gone even further, holding that Lotion creates a presumption of initial circuit court review “absent clear and convincing evidence of a contrary congressional intent.” Conoco, Inc. v. Skinner, 970 F.2d 1206, 1214 (3d Cir.1992).

Although the question is close, we conclude that appellate jurisdiction is proper in this case. In reaching this conclusion, we start with the premise that both the Hobbs Act and the Atomic Energy Act are ambiguous as to their reach. Furthermore, while the term “order” has a clear meaning for APA purposes, its placement in section 2239 of the Atomic Energy Act suggests that Congress might not have used it with the same precision in connection with the intersection of the Hobbs Act and the Atomic Energy Act. Cf. Hanover Ins. Co. v. United States, 880 F.2d 1503, 1504 (1st Cir.1989) (noting that the same word may have different meanings in different statutory contexts). That premise is bolstered by the fact that the Atomic Energy Act uses the terms “order” and “rule” inconsistently. For example, section 2239(b) refers to “[a]ny final order entered in any proceeding of the kind specified in subsection (a),” but section 2239(a) includes proceedings “for the issuance or modification of rules and regulations dealing with the activities of licensees.” This disharmony renders the meaning of “order” in this context uncertain.

Given these amphibolies, we believe that the policies announced by the Supreme Court in Lotion deserve special weight. We interpret Lotion as holding that original jurisdiction in the courts of appeals is proper to review any NRC action that could be cognizable in a petition for review from a proceeding under section 2239. This interpretation is consistent with the Lotion Court’s instruction that jurisdictional statutes should be construed so that agency actions will always be subject to initial review in the same court, regardless of the procedural package in which they are wrapped. Lotion, 470 U.S. at 742, 105 S.Ct. 1598. By like token, an affirmation of jurisdiction in this case is consistent with the Lotion Court’s conclusion that judicial efficiency is best served by limiting the layers of review. Id. at 744-45, 105 S.Ct. 1598. On this basis, and in conformity with our earlier decision in City of Boston, we conclude that we have jurisdiction to entertain these petitions.

III. THE MERITS

We divide our discussion of the merits into three segments, corresponding with the petitioners’ most lively bruited points.

A. Ultra Vires.

The mainstay of the petitioners’ challenge is the proposition that the new rules exceed the Commission’s statutory authority. The petitioners start with the premise that 42 U.S.C. § 2239 requires the NRC to conduct licensing hearings on the record, that is, in strict accordance with the relevant provisions of the APA. See sv/pra note 1. In their view, the new rules fail to satisfy that requirement and, therefore, must be pole-axed. In the pages that *348follow, we examine both the petitioners’ premise and their conclusion.

Section 2239 requires the Commission, “upon the request of any person whose interest may be affected” by certain agency actions, to hold “a hearing.” It does not explicitly require that the hearing be on the record. We have held, however, that the degree of formality that a hearing must afford does not necessarily turn on the presence or absence of an explicit statutory directive. If, even absent such a directive, the nature of the hearing that Congress intended to grant is clear, then that intention governs. Dantran, Inc. v. U.S. Dep’t of Labor, 246 F.3d 36, 46 (1st Cir.2001); Seacoast Anti-Pollution League v. Costle, 572 F.2d 872, 876 (1st Cir.1978). We assume arguendo, favorably to the petitioners, that the Seacoast rule still obtains.4

The petitioners advance several arguments for holding that Congress, in enacting section 2239, purposed to require on-the-record hearings in reactor licensing cases. In addition to canvassing the legislative history and cataloging the relevant amendments to the statute, they point out that for approximately four decades the NRC and its predecessor agency, the AEC, interpreted the statute as requiring on-the-record hearings in reactor licensing proceedings. In response, the NRC highlights the ambiguity of the statute and attempts to situate the latest round of changes in a larger history of procedural experimentation. The Commission also notes that some courts have interpreted section 2239 to allow informal hearings in licensing proceedings not involving reactors. See, e.g., City of W. Chicago v. U.S. NRC, 701 F.2d 632, 645 (7th Cir.1983) (licensing of nuclear materials). Last— but far from least — the Commission urges us to defer to its judgment that informal hearings are a suitable prophylactic for reactor licensing. Cf. Lattab v. Ashcroft, 384 F.3d 8, 19-20 (1st Cir.2004) (deferring to the agency’s judgment on the proper application of a procedural statute).

For years, the courts of appeals have avoided the question of whether section 2239 requires reactor licensing hearings to be .on the record. See, e.g., Kelley v. Selin, 42 F.3d 1501, 1510-14 (6th Cir.1995) (discussing, but not resolving, the issue while approving the use of informal hearings for materials storage issues); Nuclear Info. & Res. Serv. v. NRC, 969 F.2d 1169, 1180 (D.C.Cir.1992) (en banc) (deeming the issue forfeited and declining to decide it); Union of Concerned Scientists v. U.S. NRC, 920 F.2d 50, 53 n. 3 (D.C.Cir.1990) (finding the procedural rules at issue to comply with the APA and declining to decide whether formal hearings are required); City of W. Chicago, 701 F.2d at 642-43 (distinguishing reactor licensing from materials licensing and addressing only the latter). We too decline to resolve this issue. Because the new rules adopted by the Commission meet the requirements of the APA it does not matter what type of hearing the NRC is required to conduct in reactor licensing cases.

*349Before elaborating our reasoning on this point, we must dispense with a procedural theory advocated by the petitioner Public Citizen. It is a bedrock principle that a court may only uphold an administrative action on a rationale advanced by the agency in the administrative proceeding. SEC v. Chenery Corp., 318 U.S. 80, 95, 63 S.Ct. 454, 87 L.Ed. 626 (1943). Embracing this principle, Public Citizen asserts that the Commission has waived the argument that the new rules satisfy the APA’s requirements because, in promulgating the new rules, it relied exclusively on its view that section 2239 does not mandate on-the-record hearings. Thus, it cannot now rely on a different rationale to defend the rules in court.

This assertion reads the record through rose-colored glasses. The Commission explicitly memorialized in the statement of considerations for the final rule the view that even if reactor licensing hearings were required to be on the record, the new rules would meet that requirement. 69 Fed.Reg. at 2,192 (“[T]he Commission believes that ... the hearing procedures in each of these subparts meets [sic] the requirements for an on-the-record hearing under the APA....”). No more was exigi-ble to preserve the point. Accordingly, we turn to the merits of this rationale.

We exercise plenary review over the Commission’s compliance with the APA. See Dantran, 246 F.3d at 48 (stating that agencies’ interpretations of statutes they do not administer are not entitled to particular deference). The APA lays out only the most skeletal framework for conducting agency adjudications, leaving broad discretion to the affected agencies in formulating detailed procedural rules. See Am. Trucking Ass’ns, Inc. v. United States, 627 F.2d 1313, 1321 (D.C.Cir.1980). In specific terms, the APA requires only that the agency provide a hearing before a neutral decisionmaker and allow each party an opportunity “to present his case or defense by oral or documentary evidence, to submit rebuttal evidence, and to conduct such cross-examination as may be required for a full and true disclosure of the facts.” 5 U.S.C. § 556(d).5

The petitioners urge that the magnitude of the risks involved in reactor licensing proceedings warrant the imposition of a more elaborate set of safeguards. It is beyond cavil, however, that, short of constitutional constraints, a court may not impose procedural requirements in administrative cases above and beyond those mandated by statute (here, the APA). Vt. Yankee Nuclear Power Corp. v. Natural Res. Def. Council, Inc., 435 U.S. 519, 543-44, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978); Union of Concerned Scientists, 920 F.2d at 53. Accordingly, we are not at liberty to impress on the Commission (or any other agency, for that matter) a procedural regime not mandated by Congress. The NRC’s new rules will, therefore, succumb to the petitioners’ first line of attack only if they fail to provide the minimal procedural safeguards actually demanded by the APA. See Nat’l Classif. Comm. v. United States, 765 F.2d 1146, 1151 (D.C.Cir.1985).

We turn now from the general to the particular. The rulemaking at issue here effected several changes in the Commission’s procedures. The petitioners focus *350their challenge on two aspects of the newly minted process. First, they object to the Commission’s decision to eliminate discovery. Second, they complain about the Commission’s decision to circumscribe the availability of cross-examination. Because these are the only issues on which the petitioners have offered developed argumentation, we confine our analysis to those portions of the new rules. Cf. United States v. Zannino, 895 F.2d 1, 17 (1st Cir.1990) (holding that “a litigant has an obligation to spell out its arguments squarely and distinctly, or else forever hold its peace” (citations and internal quotation marks omitted)).

We begin with the question of whether the new rules fall below the APA’s minimum requirements by eliminat-. ing discovery. The Commission points out, and the petitioners do not seriously contest, that the APA does not explicitly require the provision of any discovery devices in formal adjudications. See 5 U.S.C. § 556; see also Kelly v. U.S. EPA, 203 F.3d 519, 523 (7th Cir.2000); Frilette v. Kimberlin, 508 F.2d 205, 208 (3d Cir.1974). Thus, if the APA requires the Commission to provide any discovery to satisfy the standards for formal adjudications, that discovery must be necessary either to effectuate some other procedural right guaranteed by the APA or to ensure an adequate record for judicial review. Cf. U.S. Lines, Inc. v. Fed. Maritime Comm’n, 584 F.2d 519, 540 (D.C.Cir.1978) (stating that an agency charged with holding a hearing to determine the public interest must provide adequate means of public participation); Seacoast, 572 F.2d at 876-77 (noting that in some eases procedural requirements may be implied to ensure adequate judicial review).

The petitioners suggest that discovery is necessary to realize the right of citizen-intervenors to present their case and submit an informed rebuttal. See 5 U.S.C. § 556. If discovery is unavailable, this thesis runs, citizen-intervenors will be unable to gather the evidence needed to support their contentions and, thus, will be shut out of meaningful participation in licensing hearings.

This thesis is composed of more cry than wool. The petitioners argue as if the new rules have eliminated all access to information from opposing parties — but that is a gross distortion. The new rules provide meaningful access to information from adverse parties in the form of a system of mandatory disclosure. See 10 C.F.R. § 2.336. Although there might well be less information available to citizen-intervenors under the new rules, the difference is one of degree. There is simply no principled way that we can say that the difference occasioned by replacing traditional discovery methods with mandatory disclosure is such that citizen-intervenors are left with no means of adequately presenting their case.

Nor do we think that full-dress discovery is essential to ensure a satisfactory record for judicial review. The Commission’s final decision in any hearing must survive review based on the evidence adduced in the hearing. 5 U.S.C. § 556(e). The applicant bears the burden of proof in any licensing hearing, id. § 556(d), and it will have every incentive- to proffer sufficient information to allow the agency to reach a reasoned decision. That same quantum of information should be adequate for a reviewing court to determine whether the agency’s action is supportable.

To say more on this point would be to paint the lily. There is simply no discovery-linked conflict between the new rules and the APA’s on-the-record adjudication requirement. The petitioners’ first line of argument is, therefore, a dead end.

*351Turning to cross-examination, the petitioners’ contentions fare no better: the new rules meet the APA’s requirements. To explain this conclusion, we first must strip away the rhetorical flourishes in which the petitioners shroud their reasoning.

It is important to understand that, contrary to the petitioners’ importunings, the new rules do not extirpate cross-examination. Rather, they restrict its use to situations in which it is “necessary to ensure an adequate record for decision.” 10 C.F.R. § 2.1204. The legitimacy of this restriction must be weighed in light of the fact that the APA does not provide an absolute right of cross-examination in on-the-record hearings. Seacoast, 572 F.2d at 880. The APA affords a right only to such cross-examination as may be necessary for a full and fair adjudication of the facts. Id. Equally to the point, “[t]he party seeking to cross-examine bears the burden of showing that cross-examination is in fact necessary.” Id. at 880 n. 16.

The Commission represents that, despite the difference in language, it interprets the standard for allowing cross-examination under the new rules to be equivalent to the APA standard. 69 Fed.Reg. at 2,195-96. When an agency provides a plausible interpretation of its own procedural rules and there is no record or pattern of contrary conduct a court has no right either to slough off that interpretation or to deem it disingenuous. Cf. Albathani v. INS, 318 F.3d 365, 378-79 (1st Cir.2003) (accepting the agency’s good faith in carrying out its procedures, while acknowledging that evidence to the contrary might warrant judicial intervention). Given the Commission’s stated interpretation, the new rules on cross-examination cannot be termed inconsistent with the dictates of the APA. Nor do we see how cross-examination that is not “necessary to ensure an adequate record for decision” could be necessary to ensure appropriate judicial review.

Because we find that the new rules meet the APA requirements for on-the-record adjudications, we hold that their promulgation does not exceed the Commission’s authority. Consequently, the petitioners’ ultra vires argument founders.

B. Arbitrary and Capricious.

Our labors are not yet done. Even though we hold that the new rules are within the ambit of the NRC’s authority, we still must consider whether its decision to discard the old in favor of the new was arbitrary and capricious. See 5 U.S.C. § 706.

An agency’s rules, once adopted, are not frozen in place. The opposite is true: an agency may alter its rules in light of its accumulated experience in administering them. Rust v. Sullivan, 500 U.S. 173, 186-87, 111 S.Ct. 1759, 114 L.Ed.2d 233 (1991). An agency must, however, offer a reasoned explanation for the change. If the agency fails to furnish such an explanation, or if the proffered explanation fails to demonstrate that the agency fully considered its new course, the revised rules must be set aside. See Motor Vehicle Mfrs. Ass’n of the U.S. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 42, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983) (“If Congress established a presumption from which judicial review should start, that presumption ... is ... against changes in current policy that are not justified by the rulemaking record.”).

The petitioners begin this branch of their assault with a global challenge to the rationality of departing from the NRC’s forty-year-old procedural regime. They do not suggest that the Commission’s goal of improving hearing efficiency is im*352permissible; rather, they maintain that the current procedures worked well enough and that the Commission has made no showing that they were the source of any past inefficiencies. The petitioners further note evidence in the. rulemaking record suggesting that efficiency gains could be brought about through less drastic measures, such as more aggressive case management.

To resolve this point, we first must determine what an agency must show to justify modifying its procedural rules. As a general principle, agencies have broad authority to formulate their own procedures — and the NRC’s authority in this respect has been termed particularly great. Union of Concerned Scientists, 920 F.2d at 54; BPI v. Atomic Energy Comm’n, 502 F.2d 424, 428 n. 3 (D.C.Cir.1974). A necessary corollary of this authority is the freedom to experiment with different procedural formats. Consequently, tinkering with rules is by no means a forbidden activity.

Of course, there are limits on this prerogative. An agency may not act precipitously or in an irrational manner in revising its rules. But so long as these limits are observed, it is not the place of a reviewing court to second-guess the agency’s decision as to when to make procedural changes. It is enough that the agency reasonably determines that existing processes are unsatisfactory and takes steps that are fairly targeted at improving the situation.

In this case, the NRC has determined that its existing rules of practice lead to hearings that are cumbersome, unnecessarily protracted, and wasteful of the resources of the parties and the Commission. This determination warrants a high degree of deference: See Vt. Yankee, 435 U.S. at 543-44, 98 S.Ct. 1197 (holding that agencies’ evaluations of their procedural needs are entitled to great respect). Although the petitioners may disagree, we descry nothing in the record that would support setting aside the rule on the basis that the agency should have left well enough alone. It would unfairly handcuff administrators if agencies could not change their procedures simply because certain of their constituencies admired the status quo.

That leaves the how of the Commission’s new rules; that is, the question whether the Commission ■ acted arbitrarily in making a specific set of changes in order to achieve its goal of improved hearing efficiency. To clear this hurdle, the Commission must show both that its new rules constitute a rational means for achieving its stated objective and that it sensibly rejected other options considered in the rulemaking proceeding (including the option of maintaining the status quo). See State Farm, 463 U.S. at 43-44, 103 S.Ct. 2856. This calculus must fairly account for any benefits lost by modifying existing rules, as well as any advantages expected to be gained through the adoption of updated rules. See id.

Here, too, we address only the NRC’s decisions to replace traditional discovery with mandatory disclosure and to restrict the availability of conventional cross-examination. With regard to discovery, the NRC explained in its statement of considerations for the final rule that the proposed substitute “has the potential to significantly reduce delays and resources expended by all parties in discovery.” 69 Fed.Reg. at 2,194. The Commission also expressed the view that replacing traditional discovery with mandatory disclosure would eliminate a substantial amount of motion practice related to discovery matters. Id. Finally, the Commission determined that any preju*353dice to citizen-intervenors from eliminating traditional discovery would be offset by the mandatory disclosure requirements and the general public availability of NRC documents. Id.

The petitioners renew their exhortation that discovery is necessary for citizen-in-tervenors to participate effectively in reactor licensing hearings. They speculate that without discovery they will be without access to large amounts of detailed technical information (information that is available to the applicant and the Commission staff) and, thus, will be unable to respond adequately to technical and factual arguments.

We agree with the petitioners that the Commission’s explanation for the change in discovery practice is thin. The Commission baldly states its belief that eliminating traditional discovery will shorten hearings and conserve resources, but it provides no empirical analysis of its experience with traditional discovery from which an outside observer can determine what benefits the Commission might reasonably expect. In a substantive rule, this omission might be fatal. See, e.g., Portland Cement Ass’n v. Ruckelshaus, 486 F.2d 375, 393 (D.C.Cir. 1973) (“It is not consonant with the purpose of a rulemaking proceeding to promulgate rules on the basis of inadequate data, or on data that, [in] critical degree, is known only to the agency.”).

In the realm of procedure, however, agencies are presumed to have special competence and, accordingly, are held to less exacting standards of explication. See Union of Concerned Scientists, 920 F.2d at 54 (noting that procedural determinations “fall uniquely within the expertise of the agency”). To add to this leeway, we are not willing to ignore matters that are common knowledge to courts of law. Discovery, especially in complex matters, is both time-consuming and costly. We do not think it can reasonably be questioned that the replacement of discovery with mandatory disclosure will make reactor licensing hearings faster and less expensive.

The Commission also has explained that it believes any harm to citizen-intervenors will be minimal. Although the petitioners offer some hypothetical examples of information that may be unavailable under the new rules, they have not made a persuasive case that mandatory disclosure will undercompensate for the loss of traditional discovery. We thus find no basis for setting aside the new rules on discovery-related grounds.

The new rules’ outlook on cross-examination presents a closer question. The Commission reasons that restricting cross-examination will reduce the amount of testimony taken and make hearings more efficient. 69 Fed.Reg. at 2,196. The Commission further observes that, in its experience, cross-examination is not always helpful to the resolution of scientific or technical issues. Id.

The petitioners retort that cross-examination is a vital component of a citizen-intervenor’s case. They note that citizen-intervenors often lack the resources to present their own expert testimony and must rely on cross-questioning of the adverse party’s experts to make their case. They also stress the value of cross-examination as a means for bolstering public confidence in licensing hearings. Tellingly, the Commission’s own administrative judges agree that cross-examination is helpful for the resolution of issues raised in many licensing hearings. In addition to the reasons advanced by the petitioners, the administrative judges note that the prospect of cross-examination discourages exaggeration in direct testimony because witnesses are aware that they will have to defend their statements later.

*354Experience in the courts has- left no doubt that cross-examination can be a useful tool. Had the new rules abolished cross-examination entirely, we might well find the Commission’s action insupportable. Importantly, however, the new rules do not completely do away with cross-examination. Rather, they leave its availability to the discretion of the hearing officer. Just as we will not ignore the fact that discovery is resource-consuming, we will not presume that all — or, perhaps, even most — cross-examination is essential to the just resolution of issues. With this in mind, we find no fault with the Commission’s decision to attempt to curtail unnecessary cross-examination. Cf. 5 U.S.C. § 556(d) (“[T]he agency as a matter of policy shall provide for the exclusion of irrelevant, immaterial, or unduly repetitious evidence.”). Accordingly, we cannot say that it is arbitrary and capricious for the Commission to leave the determination of whether cross-examination will further the truth-seeking process in a particular proceeding to the discretion of the individual hearing officer.

We do, however, add a caveat. The APA does require that cross-examination be available when “required for a full and true disclosure of the facts.” Id. If the new procedures are to comply in practice with the APA, cross-examination must be allowed in appropriate instances. Should the agency’s administration of the new rules contradict its present representations or otherwise flout this principle, nothing in this opinion will inoculate the rules against future challenges.

C. Constitutional Claims.

One petitioner, Citizens Awareness Network (CAN), charges that the new rules are unconstitutional because they deprive citizen-intervenors of fundamental political rights and discriminate against them in violation of the Fifth Amendment. We explore these charges.

CAN’s first charge implodes because there is no fundamental right to participate in administrative adjudications. Reactor licensing (unlike, say, voting) is not “preservative of other basic civil and political rights.” Reynolds v. Sims, 377 U.S. 533, 562, 84 S.Ct. 1362, 12 L.Ed.2d 506 (1964). Assuming, for argument’s sake, that -citizen-intervenors have a protected liberty interest in the outcome of reactor licensing proceedings — a- proposition that we consider extremely dubious, see City of W. Chicago, 701 F.2d at 645— the quantum of process required before the government may deprive citizen-intervenors of that interest would depend on the three-part analysis adumbrated in Mathews v. Eldridge, 424 U.S. 319, 335, 96 S.Ct. 893, 47 L.Ed.2d 18 (1976). CAN makes no effort to apply the Mathews rubric to the rules at issue, and we will not do CAN’s homework for it. The issue is, therefore, forfeit. See Zannino, 895 F.2d at 17.

As for equal protection, CAN claims that we should apply strict scrutiny because citizen-intervenors are a “discrete and insular minority.” This claim is meritless. The Supreme Court has made it crystal clear that the criteria for deeming a class suspect are both rigorous and specific. Johnson v. Robison, 415 U.S. 361, 375 n. 14, 94 S.Ct. 1160, 39 L.Ed.2d 389 (1974); San Antonio Ind. Sch. Dist. v. Rodriguez, 411 U.S. 1, 28, 93 S.Ct. 1278, 36 L.Ed.2d 16 (1973). As a class, citizenintervenors cannot begin to meet those criteria. They are not “saddled with such disabilities, or subjected to such a history of purposeful unequal treatment, or relegated to such a position of political powerlessness as to command extraordinary protection from the majoritarian political process,” Rodriguez, 411 U.S. at 28, 93 *355S.Ct. 1278, nor do they share any “immutable characteristic determined solely by the accident of birth,” Johnson, 415 U.S. at 375 n. 14, 94 S.Ct. 1160.

Belaboring this point would serve no useful purpose. Whatever legitimate grievances citizen-intervenors may have, it is absurd to equate discrimination against them with the historic discrimination against racial and other minorities that lies at the core of suspectedness. The bottom line is that citizen-intervenors are not a suspect class. We so hold.

This holding means, of course, that rational basis review applies, not strict scrutiny. See Boivin v. Black, 225 F.3d 36, 42 (1st Cir.2000). Thus, CAN bears the burden of demonstrating that no plausible set of facts exists that could forge a rational relationship between the challenged rules and the government’s legitimate goals. Id. at 44; Montalvo-Huertas v. Rivera-Cruz, 885 F.2d 971, 978-79 (1st Cir.1989). For the reasons set forth above, see supra Part III(B), there can be no doubt that the Commission’s action is rationally related to a legitimate government purpose. It follows inexorably, as night follows day, that CAN’S constitutional argument is meritless.

IV. CONCLUSION

We need go no further. Procedural flexibility is one of the great hallmarks of the administrative process-and it is a feature that courts must be reluctant to curtail. Though the Commission’s new rules may approach the outer bounds of what is permissible under the APA, we find the statute sufficiently broad to accommodate them. Similarly, the Commission’s judgments as to when its procedures need fine-tuning and how they should be retooled are ones to which we accord great respect. We cannot say that the Commission’s desire for more expeditious adjudications is unreasonable, nor can we say that the changes embodied in the new rules are an eccentric or a plainly inadequate means for achieving the Commission’s goals. Accordingly, both of the instant petitions must be denied.

The petitions for judicial review are denied and dismissed.

LIPEZ, Circuit Judge.

Although I concur fully in Judge Selya’s thoughtful and comprehensive opinion, I write separately to describe some oddities about this case which should not go unnoticed. The basic proposition of Judge Sel-ya’s decision is indisputably correct: the new rules promulgated by the Nuclear Regulatory Commission (NRC) to reduce the level of formality in reactor licensing proceedings comply with the “on-the-record” requirements of the Administrative Procedure Act (APA). Yet that legal proposition was largely an afterthought of the NRC in the effort to justify its new rules. Instead, the NRC principally argued in the long run-up to this case that 42 U.S.C. § 2239, which simply requires the Commission to hold a hearing “upon the request of any person whose interest may be affected” before granting a new license, did not invoke the requirements for formal adjudication (commonly referred to as “on-the-record” hearings) under the APA.

It is striking that so many smart people at the NRC could be so wrong for so long about the requirements of the APA. Although this history does not affect the outcome of this case, it should be noted as a cautionary tale about the power of analogy and the endurance of unexamined legal theories. This history also serves to explain some of the legitimate frustrations of the petitioners, who felt that they were dealing with a moving target as the NRC tried to justify its new regulations. With so much at stake in these nuclear reactor *356licensing proceedings, the rulemaking process should have followed a steadier course. For reasons I shall explain, this was not the rulemaking process at its best.

Terminology

The terminology for hearings under the APA can be imprecise and confusing. The everyday meaning of terms like “formal” and “informal” sometimes creeps into the discussion, although those terms have specific, functional definitions under the APA. As Judge Selya notes, the terms “formal” and “on-the-record” are generally used as shorthand for hearings that must be conducted pursuant to the requirements of 5 U.S.C. §§ 554, 556, and 557 of the APA. Other terms, too, are sometimes used to refer to such procedures — “trial-type” and “quasi-judicial.” These vague and indefinite terms are particularly mischievous because they evoke images of courtroom trials, and they have contributed to the false impression that the APA’s requirement of on-the-record hearings involves procedures more akin to civil trials than is actually the case.

To be specific, § 554 requires that, in cases of an “adjudication required by statute to be determined on the record after opportunity for an agency hearing,” the agency must follow the procedures outlined in §§ 556 and 557. Although the statutory text at issue here is itself rather pithy, these procedures can be usefully condensed into the following ten' points:

1. The agency must give notice of legal authority and matters of fact and law asserted. § 554(b).
2. The oral evidentiary hearing must be presided over by an officer who can be disqualified for bias. § 556(b).
3. Presiding officers cannot have ex parte communications. §§ 554(d), 557(d)(1).
4. Parties are entitled to be represented by attorneys. § 555(b).
5. The proponent of an order has the burden of proof. § 556(d).
6. A party is entitled to present oral or documentary evidence. § 556(d).
7. A party is entitled “to conduct such cross-examination as may be required for a full and true disclosure of the facts.” § 556(d).
8. Orders can be issued only on consideration of the record of the hearing. § 556(d).
9. The transcript of testimony and exhibits is the exclusive record for decision and shall be made available to parties. § 556(e).
10. The decision must include “findings and conclusions, and the reasons or basis therefor, on all the material issues of fact, law, or discretion presented on the record.” § 557(c)(3)(A).

See Richard J. Pierce, Jr., Administrative Law Treatise § 8.1 (4th ed.2002). Strikingly, there is no reference to discovery in these statutory provisions of the APA, and cross-examination is assured only if necessary “for a full and true disclosure of the facts.” 5 U.S.C.. § 556(d). Most of these provisions relate to the conduct and responsibilities of the presiding officer or the basis for agency orders (on the record). Only a few relate to the conduct of the hearing itself. These APA requirements leave agencies with a great deal of flexibility in tailoring on-the-record hearing procedures to suit their perceived needs.

If hearings are not required to be “on the record,” the procedures of §§ 556 and 557 are not triggered; the only section of the APA applicable to the proceedings is § 555, titled “Ancillary matters.” Section 555(b) entitles a party to be represented by a lawyer, § 555(c) entitles people who have submitted data or evidence to retain copies of their submissions, and § 555(e) *357requires agencies to give prompt notice when they deny a petition made in connection with a proceeding, and to give a brief statement of the grounds for denial. Additionally, subsections (c) and (d) require that process, subpoenas, and other investigative demands must be made in accordance with law. Of course, these “informal” hearings must also comply with basic due process requirements.

From the beginning of its proposed rule-making, the NRC repeatedly referred to the procedures outlined in the new regulations as “informal,” as opposed to the outmoded formal procedures of the past. The clear implication was that the new informal procedures would not meet the APA’s requirements for formal, on-the-record hearings. Thus, the NRC believed that-it first had to establish that its authorizing statute, the Atomic Energy Act (AEA), did not require it to hold on-the-record hearings for reactor licensing.

Background to Rulemaking

Judge Selya outlines some of the important history of the rulemaking in this case. However, there is more to this curious history that is worth telling. From the 1998 Policy Statement to the Notice of Proposed Rulemaking, the NRC barely contemplated the possibility'that it could reform its hearing procedures to its liking and still comply with the APA after all. Indeed, at first, the NRC did not propose any dramatic changes to its hearing procedures. In its August 5, 1998 Policy Statement, the NRC stated that it hoped to encourage a renewed vigor in the enforcement of already-existing hearing procedures by the Atomic Safety and Licensing Boards (ASLBs).6 To expedite hearings, the NRC advocated greater adherence to schedules, more rigorous enforcement of time limits for filing (for example, allowing extensions of time only in “unavoidable and extreme circumstances”), more rigorous enforcement of contention requirements,7 and tighter management of discovery. It also announced that the NRC “may consider further changes to the Rules of Practice as appropriate to enable additional improvements to the adjudicatory process.”

True to its word, the NRC issued a Staff Requirements Memorandum to its Office of General Counsel (OGC) on July 22, 1999, directing it to develop a proposed rulemaking. At the same time, the Commission noted that it would also pursue a legislative solution by lobbying Congress to confirm its authority to reform licensing hearings as it wished. Again, the Staff Requirements Memorandum never suggested that the NRC could reduce the formality of its hearing procedures while staying within the strictures of the APA’s requirements for on-the-record hearings. Instead, the NRC apparently still believed that the more informal licensing procedures it sought would not comply with the *358APA, and that it had to establish its freedom from the APA’s strictest requirements.

The Staff Requirements Memorandum also directed the NRC’s OGC to solicit the views of interested parties on the proposed rulemaking. Consequently, the general counsel held a two-day meeting in October 1999, called a “hearing process workshop,” with representatives from the nuclear industry, citizens’ groups (including the petitioners in this ease), other federal agencies, academia, and the NRC’s Atomic Safety Board and Licensing Panel. Although the OGC encouraged a wide-ranging conversation, no one raised the possibility that the NRC licensing procedures could be more informal yet still comply with the APA.

In the Notice of Proposed Rulemaking itself, 66 Fed.Reg. 19,610 (April 16, 2001), which for the first time proposed specific changes to the NRC’s hearing procedures, there was still no argument that the proposed procedures complied with the APA’s requirements. Instead, the notice offered pages of legal analysis on the history of the AEA, all intended to justify the NRC’s ability to promulgate new hearing procedures that are not subject to the APA’s requirements for on-the-record hearings.

Other choices made by the NRC in its regulatory overhaul further emphasize the firmness of its conviction that the supposedly “informal” procedures it was proposing did not comply with the APA’s requirements for on-the-record hearings. In the one instance where no one disputes that the NRC must hold on-the-record hearings — the licensing of construction and operation of uranium enrichment facilities, see 42 U.S.C. § 2243(b) — the Notice described this process as “requiring formal trial-type hearing procedures to be used.” 66 Fed.Reg. at 19,623. Consequently, the NRC believed that it could not use new subpart L for these hearings but had to resort to the more formal procedures of subpart G.8

Strikingly, in the entire record of this rulemaking prior to the promulgation of the Final Rule, I can find only one footnote hinting that anyone at the NRC thought that it could reduce the formality of its procedures while at the same time complying with the strictures of the APA. In a footnote in its January 1999 memo, the OGC acknowledged the possibility of eliminating the “elements of Subpart G that go beyond the Administrative Procedure Act’s requirements for ‘on-the-record’ hearings. One immediate effect would be to eliminate formal discovery in NRC adjudications.” The memo contains no further discussion of how far beyond the APA’s requirements the OGC understood Subpart G to go.

Not until publication of the Final Rule itself did the NRC assert for the first time that the new procedures comply with the APA’s requirements for an on-the-record hearing-and even here, the NRC devotes only a few sentences to the issues of cross-examination, discovery, and the presiding officer.9 Indeed, the NRC’s few statements are easily reproduced in their en*359tirety. In response to concerns about the reforms to cross-examination, the NRC stated: “The Commission believes that this approach strikes an appropriate balance in the use of cross-examination, and is consistent with the requirements of the Administrative Procedure Act (APA), which does not require cross-examination for on-the-record proceedings unless necessary for a ‘fair and true disclosure of the facts.’ ” 69 Fed.Reg. 2182, 2188 (Jan. 14, 2004). A little later, the NRC states: “The Commission’s consideration of cross-examination in the hearing process begins with the observation that parties have no fundamental right to cross-examination, even in the most formal hearing procedures provided in Subpart G.” 69 Fed.Reg. at 2195-96.

As for concerns about the availability of discovery, the NRC stated: “Thus, the mandatory disclosure requirement in sub-part C, the hearing file provision in sub-parts G, L, and N[,] and the requirement for an LSN and ‘electronic docket’ in sub-part J, go well beyond the ‘discovery’ provisions for full, on-the-record adjudicatory hearings under the APA.”10 69 Fed.Reg. at 2189. As for presiding officers, the NRC described how the new regulations provided for either an ALJ or a three-member ASLB to preside over the hearing, and then stated: “The Commission has taken this step to ensure that all of these proceedings meet the requirements with regard to a presiding officer for an on-the-record hearing under the APA.” 69 Fed.Reg. at 2191. However, despite these few references in the Final Rule to meeting the APA’s requirements for on-the-record hearings, the NRC’s primary rationale for its new procedures remained its long-standing position that reactor licensing hearings did not have to comply with the on-the-record requirements of the APA.11

In considerable part,' administrative agencies set the terms of the debate in the rulemaking process with the arguments they advance in support of their rulemak-ing initiatives. If certain arguments are unmistakably primary, those arguments will draw most of the attention during the administrative process, and during the judicial review that follows. Not surprisingly, opponents will believe that the primacy of the argument means that it is the most important argument to address. If, in the end, the dispositive issue on appeal is a different issue, addressed only glancingly in the administrative process, there has been enormous wasted effort, and the courts of appeal will be poorly served by appellate briefing that reflects the outdated emphases of the administrative process. That is precisely what happened here.

In their petition for review, petitioners never even mentioned the argument of the NRC that its new procedures complied with the APA’s requirements for on-the-record hearings. Not one of the petition*360ers addressed the argument in their opening briefs.12 Indeed, the NRC tried to exploit this omission by arguing that petitioners had thereby waived the issue. In response, Public Citizen stated that the NRC argued from the beginning of the rulemaking that its freedom from the APA’s on-the-record requirements was essential to its ability to fashion informal procedures, and “[t]here would have been no need for page after page of argument that Section 189 does not require on-the-record hearing procedures in reactor licensing cases if the NRC had believed that the new Subpart L procedures conformed to these requirements.”13 Public Citizen added that the few references to APA-compliance in the Final Rule were nothing more than “stray remarks” when weighed against the overwhelming number of statements to the contrary made by the NRC throughout the rulemaking. Public Citizen then tried to turn this lament into a legal argument based upon SEC v. Chenery Corp., 318 U.S. 80, 63 S.Ct. 454, 87 L.Ed. 626 (1943). Although the lament is a fair one, the legal argument does not work.

SEC v. Chenery

In Chenery, the Supreme Court warned courts that they must not substitute their own policy judgments for those of the administrative agencies whose decisions they review. The Court explained that this rule did not disturb the settled rule that appellate courts can affirm trial court decisions that are right for the wrong reasons:

In confining our review to a judgment upon the validity of the grounds upon which the Commission itself based its action, we do not disturb the settled rule that, in reviewing the decision of a lower court, it must be affirmed if the result is correct although the lower court relied upon a wrong ground or gave a wrong reason. The reason for this rule is obvious. It would be wasteful to send a case back to' a lower court to reinstate a decision which it had already made but which the appellate court concluded should properly be based on another ground within the power of the appellate court to formulate. But it is also familiar appellate procedure that where the correctness of the lower court’s decision depends upon a determination of fact which only a jury could make but which has not been made, the appellate court cannot take the place of the jury.- Like considerations govern review of administrative orders. If an order is valid only as a determination of policy or judgment which the agency alone is authorized to make and which it has not made, a judicial judgment cannot be made to do service for an administrative judgment. For purposes of affirming no less than reversing its orders, an appellate court cannot intrude upon the domain which Congress has exclusively entrusted to an administrative agency.

SEC v. Chenery Corp., 318 U.S. 80, 88, 63 S.Ct. 454, 87 L.Ed. 626 (1943) (citation and internal quotation marks omitted) (Chenery I). 14

*361The dispute in Chenery came before the Court again in 1947, after the SEC had “reexamined the problem, recast its rationale and reached the same result.” SEC v. Chenery Corp., 332 U.S. 194, 196, 67 S.Ct. 1575, 91 L.Ed. 1995 (1947) (Chenery II). Accepting the SEC’s new decision as justified by an administrative determination that “is based upon substantial evidence and is consistent with the authority granted by Congress,” id. at 207, 67 S.Ct. 1575, the Court noted the “important corollary” to Chenery’s rule of judicial review of agency decisions:

If the administrative action is to be tested by the basis upon which it purports to rest, that basis must be set forth with such clarity as to be understandable. It will not do for a court to be compelled to guess at the theory underlying the agency’s action; nor can a court be expected to chisel that which must be precise from what the agency has left vague and indecisive. In other words, ‘We must know what a decision means before the duty becomes ours to say whether it is right or wrong.’

Id. at 196, 67 S.Ct. 1575 (quoting United States v. Chicago, M., St. P. & P. R.R. Co., 294 U.S. 499, 511, 55 S.Ct. 462, 79 L.Ed. 1023 (1935)). The Chenery decisions have continuing vitality today. See, e.g., NLRB v. K. River Cmty. Care, Inc., 532 U.S. 706, 721, 121 S.Ct. 1861, 149 L.Ed.2d 939 (2001); ■ Nat’l Toiver, LLC v. Plainville Zoning Bd. of Appeals, 297 F.3d 14, 21 (1st Cir.2002); Rizek v. SEC, 215 F.3d 157, 161 (1st Cir.2000) (citing the “well-established rule that agencies must sufficiently articulate the grounds of their decisions so that appellate courts are able to perform their function of judicial review meaningfully.”)

Despite the NRC’s disproportionate attention to its original premise that it could alter its procedures for the. licensing of nuclear reactors free of the on-the-record requirements of the APA, and its scant attention to the APA-compliance argument that prevails here (found primarily in several sentences placed in the Final Rule), I agree with Judge Selya that the NRC preserved the rationale that has become the basis for affirming its rulemaking initiative. However, if the Chenery eases have a spirit, the NRC came perilously close to violating it here, with the unfortunate consequences for efficient administrative process and effective appellate review that I have already described. Although, to quote Chenery II, we did not have “to guess at the theory underlying the agency’s action,” 332 U.S. at 197, 67 S.Ct. 1575, we had to find it with too little help from the parties because of the NRC’s failure to understand the APA’s flexibility.

Further History

The NRC’s belated recognition that the new licensing procedures might in fact comply with the on-the-record requirements of the APA is all the more surprising because sources contemporaneous with the APA’s passage suggest that flexibility has always been a hallmark of the APA, and that agencies have always had considerable discretion to structure on-the-record hearings to suit their particular needs. This flexibility is nowhere more evident than in determining the role of cross-examination in on-the-record hearings.

*362The Attorney General’s Manual on the Administrative Procedure Act (1947) is a “key document” for interpreting the APA, Am. Min. Cong. v. Mine Safety & Health Admin., 995 F.2d 1106, 1109 (D.C.Cir. 1993). We have described it as containing the “most authoritative” account of the history of the Act’s passage, Warder v. Shalala, 149 F.3d 73, 79 (1st Cir.1998). See also V. Yankee Nuclear Power Corp. v. Natural Res. Def. Council, Inc., 435 U.S. 519, 546, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978) (the Attorney General’s Manual is “a contemporaneous interpretation previously given some deference by this Court because of the role played by the Department of Justice in drafting the legislation”). The Attorney General’s Manual offers a vision of cross-examination entirely consistent with that advanced by the NRC in this rulemaking.

The Manual begins by stressing the general importance of cross-examination in on-the-record hearings, cautioning that “it is clear that the ‘right to present his case or defense by oral or documentary evidence’ does not extend to presenting evidence in affidavit or other written form so as to deprive the agency or opposing parties of opportunity for cross-examination.” AG’s Manual at 77. Technical evidence may be introduced in written form as long as its admission “would not prejudicially deprive other parties or the agency of opportunity for cross-examination. Thus, technical and statistical data may be introduced in convenient written form subject to adequate opportunity for cross-examination and rebuttal.” Id.

The Attorney General’s Manual goes on, however, to acknowledge that the general opportunity to cross-examine is subject to restrictions which become more salient as the complexity of the hearing’s subject matter increases. On this point, the Manual quotes from the Report of the House Committee on the Judiciary on the APA. The Report cautions that the APA’s provision for “such cross-examination as may be required for a full and true disclosure of the facts” does not

confer a right of so-called ‘unlimited’ cross-examination. Presiding officers will have to make the necessary initial determination whether the cross-examination is pressed to unreasonable lengths by a party or whether it is required for the ‘full and true disclosure of the facts’ stated in the provision. Nor is it the intention to eliminate the authority of agencies to confer sound discretion upon presiding officers in the matter of its extent. The test is — as the section states — whether it is required ‘for a full and true disclosure of the facts.’ In many rule making proceedings where the subject matter and evidence are broadly economic or statistical in character and the parties or witnesses numerous, the direct or rebuttal evidence may be of such a nature that cross-examination adds nothing substantial to the record and unnecessarily prolongs the hearings.

H.R.Rep. No.1980, 79th Cong., 2d Sess., 37.

The Attorney General’s Manual and the House Report serve as good indicators that Congress, when it passed the APA, understood that agencies needed a considerable amount of flexibility in fashioning hearing procedures for on-the-record hearings. Despite the frequent use of terms like “trial-type” and “quasi-judicial” over the years to refer to on-the-record hearings, agencies have always been able to adapt their procedures for on-the-record hearings under the APA. Today, this statute of general applicability governs the procedures for an enormous variety of hearings — everything from relatively simple claims for workers’ compensation, to *363enforcement proceedings under the National Labor Relations Act or the Occupational Health and Safety Act, to complex rate-setting hearings before the Federal Energy Regulatory Commission. See Manual for Administrative Law Judges (ALJ Manual), 49-51.'

This historical flexibility is confirmed by a modern-day guide to the conduct! of on-the-record hearings, the Manual for Administrative Law Judges, which provides a thorough overview of the current state of on-the-record procedures.15 Although the Manual is primarily designed as a practical aid for ALJs, it also offers an analysis of. the fundamental requirements of the APA, including a section on the special problems presented by complex hearings at both the agency and ALJ levels. See ALJ Manual at 49-70. Ultimately, if the ALJ Manual tells us anything about what a typical on-the-record hearing looks like, it is that there is no typical hearing.

In its section on complex hearings, the ALJ Manual begins by noting that the term “quasi-judicial” is most often used to refer to “relatively simple cases.” Id. at 50. “Typically, these quasi-judicial proceedings are nearly identical to a formal adjudication without a jury,” with the full panoply of pleadings, pre-hearing discovery, and witnesses who testify orally on direct and cross-examination. Id. at 49. Complex cases, - however, are “another matter,” bearing less resemblance to our traditional concept of a civil trial. ■ Id. at 51. The ALJ Manual cites the NRC’s use of- ASLBs as an “innovative approach to complex cases” with highly technical subject matter. Id. at 52. In general, the ALJ Manual, emphasizes the use of written submissions of direct and rebuttal evidence; “Typically, much of the testimony is highly technical and lengthy, and is submitted in written form prior to the hearing.” Id. at 51. “Preparation and exchange of direct and rebuttal evidence is usually beneficial in complex cases.” Id. at 56.16

Like the Attorney General’s Manual, the ALJ Manual emphasizes. the basic importance of the opportunity to cross-examine in on-the-record hearings, noting that “judges should be extremely cautious about denying parties an opportunity to cross-examine witnesses.” Id. at 55 n. 149. In the end, however, and again like the Attorney General’s Manual, the ALJ Manual also acknowledges the agencies’ need to adapt hearing procedures to.suit especially complex cases, observing that “[u]n-less witness credibility is involved, cross-examination is frequently confined to clarifying the exhibits, determining the source of the material, and testing the basis for the witness’s conclusions.” Id. at 83. In fact, the ALJ Manual even notes a propos*364al by one legal commentator that “the major rebuttal of expert opinion testimony should take place not by cross-examination but by submission, prior to the hearing, of rebuttal testimony prepared by the opponent’s experts.” Id.

These sources, both contemporaneous with the APA’s passage and modern, show that procedures in on-the-record hearings, despite sometimes being described as “trial-type” procedures, can in fact stray considerably from the procedures found in civil trials as the subjects of the administrative proceedings become more complex and more technical. This flexibility is inherent in the APA, and has been acknowledged by commentators and by courts. See Seacoast Anti-Pollution League v. Costle, 572 F.2d 872, 880 (1st Cir.1978) (finding no basis to petitioners’ argument that the APA required presiding officer to afford opportunity for cross-examination); Cellular Mobile Systems of Pa., Inc. v. FCC, 782 F.2d 182, 198 (D.C.Cir.1985) (“Cross-examination is therefore not an automatic right conferred by the APA; instead, its necessity must be established under specific circumstances by the party seeking it.”).17 With these abundant sources pointing the way, the NRC’s belated recognition that the APA could, in fact, accommodate its procedural reforms is all the more puzzling.

Conclusion

For most of the history of this rulemak-ing, the NRC argued that it did not have to comply with the APA’s on-the-record requirements in refashioning its procedures for reactor licensing hearings. Belatedly, and then only sketchily, the NRC advanced the alternative argument that its proposed procedures complied with those on-the-record requirements. The staying power of old theories and flawed analogies (the repeated references to trial-type proceedings) may account for some of this delay. Whatever the reasons, the deleterious effect of this late insight on the rule-making process and our review of it is undeniable. Countless hours were wasted during the administrative process fighting over the tired issue of whether 42 U.S.C. § 2239 requires reactor licensing hearings to be on the record. This tired issue dogged judicial review as well. Although we have done what Chenery requires— affirming on a basis advanced by the agency itself during the administrative process — we got there with too little help from the parties. There is a victory here for the NRC, but it should be a cause for self-examination rather than jubilation.

2.2.3.1.2 Adjudicator Independence 2.2.3.1.2 Adjudicator Independence

2.2.3.1.2.1 Ludwig v. Astrue 2.2.3.1.2.1 Ludwig v. Astrue

William M. LUDWIG, Plaintiff-Appellant, v. Michael J. ASTRUE, Defendant-Appellee.

No. 10-35946.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted July 27, 2011.

Filed June 1, 2012.

*1048Paul B. Eaglin, Eaglin Law Office, Fairbanks, AK, for the appellant.

Jordan D. Goddard, Assistant Regional Counsel, Office of the General Counsel, Social Security Administration, Seattle, WA, for the appellee.

Before: BETTY B. FLETCHER,ANDREW J. KLEINFELD, and CONSUELO M. CALLAHAN, Circuit Judges.

OPINION

KLEINFELD, Senior Circuit Judge:

We address whether an administrative law judge’s handling of an ex parte contact was error, and if so, whether it was harmless.

I. Facts

Ludwig claimed social security disability,1 his claim was denied, and his appeal to the district court was unsuccessful.

A. The Medical Evidence

Ludwig told the Social Security Administration in his May 2006 application that *1049he could not work because of epilepsy, bipolar disease, depression, insomnia, and social anxiety. He had not worked since getting fired at his last job as a cook earlier the same year. He had previously worked on a fishing tender, and as a welder and a cook. In his initial interview, Ludwig attributed his inability to work to his psychiatric problems, not his physical condition. But at his hearing, he claimed disabling arthritis in his knees, hips, and ankles, and degenerative disease in his low back. He testified that he had severe pain if he lifted as much as 15 pounds.

Ludwig had extensive medical records from correctional facilities and community health facilities. He had complained of knee problems for ten years, starting when he was in military service. A year before his social security application, he told a medical provider that he could “press 1,000 pounds,” and exercised. His description of his symptoms, together with X-rays and MRIs, led to a diagnosis of chronic pain in both knees and possible tears in the meniscus of the left knee. In 2007, the Department of Veterans Affairs (VA) awarded Ludwig ten percent service-connected disability compensation on account of his knee. Two months before Ludwig’s social security hearing, a VA examining physician described Ludwig’s knee problems as “minimal.” Around the same time, a chiropractic report said that Ludwig was walking normally.

Ludwig also complained of back pain. On June 14, 2007, Ludwig told a medical provider that he had been experiencing low back pain since trying to pick up a dishwasher the previous month. Two weeks later, he reported to a different examiner that he had endured chronic back pain since straining his back eleven years earlier, but had suffered no recent injury. He was diagnosed with lumbar strain and mild disc herniation. Ludwig said to one medical provider that Vicodin was “the only thing that helped before” with the back pain, but was instead prescribed methadone. The prescription was later changed to morphine sulphate, after Ludwig complained of side effects from the methadone. Physical therapy was prescribed, but Ludwig did not complete the sessions.

Ludwig was diagnosed with bipolar disorder in 2002. Medication successfully controlled it. Ludwig reported to his doctor in early 2006, the same year he applied for social security disability benefits, that, so long as he stayed away from alcohol, his medication kept him reasonably stable. After he got fired from his job as a cook, he enrolled in a drug and alcohol treatment program.

He also had a seizure disorder, controlled by medication. An emergency department record shows that Ludwig was admitted to the emergency room in March 2006, after having had a “witnessed seizure while working at the local Denny’s restaurant.” He testified at his social security hearing that this was an anxiety attack, not a seizure. But he also testified to far more frequent and recent seizures than what he had told his medical providers.

Ludwig’s social security application was denied in July 2006. The Social Security Administration’s medical consultant, after reviewing Ludwig’s records, concluded that Ludwig’s mental impairments caused mild restrictions and difficulties. He opined that Ludwig could lift or carry 25 pounds frequently, 50 pounds occasionally, stand or walk for about 6 hours in an 8-hour workday, and sit for the same amount of time. After the initial denial, Ludwig requested a hearing.

At his hearing, Ludwig testified that he could not lift more than 15 pounds without severe pain, and that it was very painful to sit for more than half an hour. But he also testified that he carried his own firewood into his cabin for heat. He testified *1050that his bipolar disorder made it difficult for him to control his anger, and that he became anxious in crowds of more than ten people. He said he had been fired from his job at Denny’s because he could not get along with his coworkers. Ludwig claimed that he suffered three or four grand mal seizures a year, the last one about a month before the hearing. He testified that his petit mal seizures occurred too frequently for him to count. But medical records from 2007 show that he claimed there were three to five year periods where he had no seizures.

B. Ex Parte Communication

Right after the hearing, and before the ALJ had issued his decision, an FBI agent told the ALJ that Ludwig was apparently faking his physical disability. The ALJ immediately sent a letter to Ludwig’s lawyer, disclosing the ex parte contact. The ALJ suggested that counsel could contact the FBI agent if he wished, though he did not represent that the agent had agreed to talk to counsel:

Shortly after your client’s hearing ... a special agent with the F.B.I. [ ] informed me that, earlier, he had observed Mr. Ludwig in the parking lot walking with normal gait and station; and when he observed Mr. Ludwig walking inside of the Federal Courthouse (where our hearing was held) he was walking with an exaggerated limp (which I also observed as he left the hearing room). Should you wish to inquire further, [the special agent] can be reached at the F.B.I. office at:
101 12th Ave
#329
Fairbanks, AK, 99701
Counsel responded, objecting to any weight being given to what the FBI agent had said.

Counsel asked that unless the ALJ gave assurance that no weight would be given to the ex parte communication, he receive a supplementary hearing at which counsel could cross-examine the agent. Counsel intended to address whether, among other things, the FBI agent really had observed Ludwig as he thought, since around a dozen people had been in and out of the several hearings that morning. He questioned the accuracy of the FBI agent’s observations, since Ludwig’s knee problem was well-documented in the medical records. Counsel also expected to ask whether his client had been under some sort of surveillance, making him recognizable to the FBI agent.

C. The ALJ’s Decision

The ALJ found that although Ludwig had a “longstanding seizure disorder,” it was “controlled when he takes medication as prescribed.” He noted conflicting evidence on Ludwig’s physical condition, including Ludwig’s claim that he could press 1,000 pounds, the chiropractor’s observation that Ludwig walked normally, and evidence of damage to Ludwig’s left knee.

The ALJ found that the seizure disorder and diseased tissue in the left knee were “severe” for social security purposes. As for Ludwig’s back pain, the ALJ found that Ludwig’s “contradictory accounts” and minimal objective findings established that Ludwig “was exaggerating symptoms.” He found that Ludwig’s bipolar disorder was “well controlled” so long as Ludwig took his medicine and abstained from alcohol, so it caused only “mild” restriction of activities of daily living and functioning.

The ALJ found that none of Ludwig’s impairments, separately or together, met the criteria of a listed impairment,2 and *1051that Ludwig had the capacity to perform “medium” work.3 Most importantly, the ALJ found that Ludwig was not credible, and had exaggerated how intense, persistent, and limiting his impairments were.

The decision notes that the FBI agent told the ALJ after the hearing that the agent had seen Ludwig in the parking lot “with a normal gait and station and subsequently observed the claimant walking with an exaggerated limp once inside the Federal Courthouse.” The ALJ wrote that he did “not assign significant weight” to the agent’s statements because the FBI agent was not familiar with Ludwig’s medical history and observed Ludwig “only briefly.” The ALJ did not say, as Ludwig’s counsel had requested as an alternative to a supplementary hearing, that the ALJ had not assigned “any” weight to what the FBI agent told him, just that whatever weight he gave it was not “significant.”

The ALJ explained that the record contained “other evidence showing [Ludwig had] exaggerated symptoms.” Ludwig’s testimony about his seizures was clearly exaggerated “based on what he told health providers.” Ludwig had claimed for compensation purposes in March 2008 that he could walk “no more than a few yards,” but had reported a month before to a medical provider that he had walked two miles in sub-zero temperatures and suffered frostbite. (Ludwig lives in Fairbanks, Alaska.) Ludwig’s back and knee claims were inconsistent with his claim to health care providers that he could press 1,000 pounds. He had exaggerated various parts of his medical history to various providers. Likewise, Ludwig contradicted himself in different contexts about his claimed difficulty with social interactions. His statements that he walked for exercise, cut wood for heat, and stood for nine hours a day as a cook, contradicted his claimed physical limitations. The ALJ found that Ludwig could still work as a cook, as he had before he was fired for not getting along, and was not disabled under the Social Security Act. The district court affirmed.

II. Analysis

A. Standard of Review

We review the district court’s decision de novo “to ensure that the [ALJ’s] decision was supported by substantial evidence and a correct application of the law.”4 Substantial evidence means “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion,” and “[e]ven when the evidence is susceptible to more than one rational interpretation, we must uphold the ALJ’s findings if they are supported by inferences reasonably drawn from the record.”5

B. The Ex Parte Contact

The ex parte contact in this case is troubling. Judges are supposed to get their evidence from the testimony and exhibits, not private chats.6 The judge should have refused to hear the ex parte *1052communication. Ordinarily, if someone says to a judge, “Judge, you know that case you heard this morning?”, a judge responds, “Don’t tell me anything about it. I can’t listen to evidence out of court.”

The FBI agent’s statements went to the heart of the case. Part of Ludwig’s disability claim was his knee problem that he said made it hard to walk. He limped in the courtroom. The FBI agent told the ALJ that he saw Ludwig walking in the parking lot without limping. That is to say, the FBI agent told the ALJ privately that Ludwig was faking.

An FBI agent, by virtue of his employment, is likely to have more credibility with a trier of fact than a felon like Ludwig, with conflicting medical records and a history of substance abuse. To impeach the FBI agent, Ludwig’s lawyer wanted to ask the agent in a supplementary hearing, “How do you know the person you saw in the parking lot was Ludwig?” That is a good question, and counsel doubtless had reasons for wanting to ask the FBI agent in front of the ALJ. The FBI agent was under no obligation to talk to Ludwig’s attorney, and might have refused to answer his questions without a scheduled hearing. Even if the FBI agent did respond to counsel’s inquiries, he would have plenty of time to improve how his answers sounded if he got a private rehearsal with claimant’s counsel. Without a hearing, the ALJ would not be able to see the agent’s demeanor when answering questions.

Ludwig’s lawyer asked for either an assurance that the ALJ would give no weight to the ex parte communication, or else a supplementary hearing to explore what force it should have. He got neither. The ALJ said in his decision that he did not give “significant” weight to the FBI agent’s information, not that he disregarded it or gave it no weight. Congress has commanded that the ALJ’s decision be “on the basis of evidence adduced at the hearing,” not on the basis, even in part, of private chats outside the hearing.7

Ludwig cites Richardson v. Perales, but that case addresses whether hearsay reports can constitute substantial evidence, not ex parte communications.8 ■ Ludwig also cites Guenther v. Commissioner, which is binding circuit authority and on point. We held, in the first of our two decisions in that case, that “ ‘ex parte proceedings are anathema in our system of justice,’ ” and “absent some ‘compelling justification,’ ex parte communications will not be tolerated.”9 We held that disclosure of the ex parte information after the trial was over denied the other side “a meaningful opportunity to be heard.”10 We remanded for an evidentiary hearing to determine precisely what the contents of the ex parte communication were, why it was made, why it was not served on opposing counsel, and such other facts as might bear on acceptance and consideration of the ex parte communication.11 When the case came back to us, after the record had been supplemented with findings and the contents of the ex parte communication, we held that the ex parte communication prejudiced the appellants, and denial of a supplementary hearing had denied them an adequate opportunity for rebuttal.12

*1053We reversed in Guenther, requiring that the case be reassigned to a different judge who had not been exposed to the ex parte communication.13 We admonished that “[w]e trust that we will not again be confronted by an institutionalized due process violation,” such as the ex parte communication in that case, which went “both to the merits of the case and to the [appellants’] character generally.”14 Yet today, we are.

This case differs from Guenther in that the ALJ here promptly notified Ludwig’s attorney of the ex parte communication. Also, the error in Guenther was more egregious, in that the ex parte communication was by a party to the proceeding. We are not persuaded that these distinctions make a difference to the question of whether Ludwig was entitled to an eviden-tiary hearing, though, since the judge in both Guenther and this case received an ex parte communication going to the heart of the case, and declined to say that he disregarded it.

By contrast, we affirmed a decision, despite ex parte communication, in Alexander Shokai, Inc. v. Commissioner. 15 In Shokai, counsel was provided with notice of a hearing addressing a third party motion to quash a subpoena, and elected not to attend.16 No secret communication was made to the judge, as in Guenther or this case. At the hearing in open court, prior to trial, government counsel brought up matters relating to the merits of the case and outside the scope of the notice of hearing.17 The judge in Shokai expressly refused to make any rulings on these matters until opposing counsel could be heard.18 In Shokai, unlike this case, the error was before trial, and counsel had an adequate opportunity to deal with it at trial, before the judge formed a conclusion.

Allowing the FBI agent to speak to the judge outside the presence of counsel, with no opportunity for counsel to cross-examine the agent, and no assurance that the communication had no influence on the result, was error. “Notice and [a meaningful] opportunity to be heard are the hallmarks of procedural due process.”19 Though Ludwig was given notice of the evidence against him, he was not given a meaningful opportunity to be heard on it. The ALJ offered his own impeachment that the FBI agent’s observation was brief and that the agent was unfamiliar with Ludwig’s medical records. But Ludwig’s lawyer might have done better. Where, as here, the communication is ex parte, is not disregarded by the judge, and may be subject to significant factual questions, we cannot see what justification there could be for denying a request for an evidentiary hearing. Receipt of the ex parte communication, assignment of some weight to it, and denial of a supplementary hearing to address it, was error.

C. Harmlessness

Because the judge erred by considering the ex parte evidence without allowing a supplementary hearing, we are required to evaluate whether there was prejudice. We need not decide whether, in these circumstances, a statement that the judge disregarded the evidence would suffice to establish absence of prejudice, because the ALJ made no such statement. We do not suggest that private chats with witnesses are purged of any taint by a rote recitation *1054that they were given “no” weight. But here we do not have even that assurance. No “significant” weight, perhaps a more candid statement than “no” weight, carries a negative pregnant, that the communication received some weight.

Shinseki v. Sanders establishes that administrative adjudications are subject to the same harmless error rule as generally applies to civil cases. Reversal on account of error is not automatic, but requires a determination of prejudice.20 Determination of prejudice requires “case-specific application of judgment, based upon examination of the record,” not “mandatory presumptions and rigid rules.”21 The burden is on the party claiming error to demonstrate not only the error, but also that it affected his “substantial rights,” which is to say, not merely his procedural rights.22 Among the case-specific factors an appellate court must consider are “an estimation of the likelihood that the result would have been different,”23 as well as the impact of the error on the public perception of such proceedings:

[T]he factors that inform a reviewing court’s “harmless-error” determination are various, potentially involving, among other case-specific factors, an estimation of the likelihood that the result would have been different, an awareness of what body (jury, lower court, administrative agency) has the authority to reach that result, a consideration of the error’s likely effects on the perceived fairness, integrity, or public reputation of judicial proceedings, and a hesitancy to generalize too broadly about particular kinds of errors when the specific factual circumstances in which the error arises may well make all the difference.24

We addressed the issue of harmless error in social security disability cases in McLeod v. Astrue, holding that Sanders applies fully to them.25 We held that the claimant need not necessarily show what other evidence might have been obtained had there not been error, but does have to show at least a “substantial likelihood of prejudice.”26 And as Sanders required, we held that to evaluate error for harmlessness, “we must exercise judgment in light of the circumstances of the case,” as opposed to the sort of presuming and generalizing that Sanders rejected.27

Having done so, we conclude that there was no prejudice from the error. The contradictions between what Ludwig said when he testified in his disability hearing, and what he had said -on other occasions, were dramatic. He had to have spoken falsely for many years to medical personnel for him to be speaking truthfully at his hearing. Considering the record as a whole, and the ALJ’s explanation of his decision, we are convinced that Ludwig has not demonstrated that the decision *1055would have been any different without the ex parte communication.

How could the ALJ give some weight to the FBI agent’s communication, but not a “significant” enough amount to affect the outcome? Any judge with an adequate amount of humility makes many decisions about which he has varying degrees of confidence in his own judgment. Learning after a firm conviction has been formed that one’s conviction is supported by additional evidence can affect the judge’s level of confidence in his decision, without affecting the outcome of the decision. The ALJ’s decision, and the record of Ludwig’s contradictions, make it plain that the ALJ would have reached the same conclusion— that Ludwig was fit to resume work like his last job as a cook — had the FBI agent not spoken to him about his observations of Ludwig.

An ex parte contact can be quite egregious without being prejudicial.28 In the absence of actual prejudice from the error, we are required, under Sanders and McLeod, to conclude that the ex parte communication does not entitle Ludwig to a reversal.29

Ludwig makes two other arguments: that consideration of the ex parte evidence denied his right to petition for redress of grievances, and that it violated the ALJ’s duty to develop the record.30 Both arguments appear to be rephrasings of the ex parte evidence argument discussed above. They fail for the same reasons.

AFFIRMED.

2.2.3.1.2.2 Cinderella Career & Finishing Schools, Inc. v. Federal Trade Commission 2.2.3.1.2.2 Cinderella Career & Finishing Schools, Inc. v. Federal Trade Commission

CINDERELLA CAREER AND FINISHING SCHOOLS, INC., Stephen Corporation, Vincent Melzac, Petitioners, v. FEDERAL TRADE COMMISSION, Respondent.

No. 22624.

United States Court of Appeals, District of Columbia Circuit.

Argued Oct. 23, 1969.

Decided March 20, 1970.

Mr. Alan Y. Cole, Washington, D.C., with whom Messrs. Isaac N. Groner and William Kanter, Washington, D. C., were on the brief, for petitioners.

Mr. Gerald Harwood, Atty., Federal Trade Commission, with whom Mr. Karl H. Buschmann, Atty., Federal Trade Commission, was on the brief, for respondent.

Before TAMM, MacKINNON and ROBB, Circuit Judges.

*584TAMM, Circuit Judge:

This is a petition to review orders of the Federal Trade Commission which required petitioners Cinderella Career College and Finishing Schools, Inc. (hereinafter Cinderella), Stephen Corporation (the corporate entity which operates Cinderella), and Vincent Melzac (the sole owner of the stock of Cinderella and Stephen Corporation), to cease and desist from engaging in certain practices which were allegedly unfair and deceptive.1

After the Commission filed its complaint under section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45 (1964), which charged Cinderella with making representations and advertising in a manner which was false, misleading and deceptive, a hearing examiner held a lengthy series of hearings which consumed a total of sixteen days; these proceedings are reported in 1,810 pages of transcript. After the Commission had called twenty-nine witnesses and the petitioners twenty-three, and after the FTC had introduced 157 exhibits and petitioners 90 (Petitioners’ Brief at 7), the hearing examiner ruled in a ninety-three page initial decision that the charges in the complaint should be dismissed.2

Complaint counsel appealed the hearing examiner’s initial decision to the full Commission; oral argument was heard on the appeal on May 28, 1968 (Opinion of the Commission at 2), and the Commission’s final order was issued on October 10, 1968. The full Commission reversed the hearing examiner as to six of the original thirteen charges and entered a cease and desist order against the petitioners, who then brought this appeal. For the reasons which follow we remand to the Commission for further proceedings.

We are faced with two principal issues on this appeal: whether the action of the Commission in reversing the hearing examiner comports with standards of due process, and whether then Chairman Paul Rand Dixon should have recused himself from participation in the review of the initial decision due to public state*585ments he had previously made which allegedly indicated pre-judgment of the case on his part.

I. PROCEDURAL IRREGULARITY AND DUE PROCESS

As we have indicated above, the hearing on the complaint against petitioners was exhaustive. The important question raised by petitioners here is whether the full Commission, in reviewing an initial decision, may consider the advertisements de novo, disregarding entirely the evidence adduced at a lengthy hearing, and arrive at independent findings of fact and conclusions of law, or whether the Commission is bound by its own rules and regulations, as well as concepts of due process, to review the conclusions of the hearing examiner in light of the evidence.

In their final decision the Commissioners first criticized the hearing examiner for his handling of some of the testimony, stating that “[f]rom the initial decision it appears that the examiner ignored some of this testimony and some of it was given little or no weight because the examiner either questioned the credibility of the witness or considered their testimony hearsay.” (Opinion of the Commission at 4.) The Commissioners themselves then proceeded to ignore all testimony completely: “[I]n view of our decision to independently analyze — and without assistance from consumer or other witnesses — the challenged advertisements and their impact * * * it becomes unnecessary to review the testimony of these expert and consumer witnesses.” (Id. at 6; emphasis added.) Later in the opinion they again noted that “for the reasons stated above the Commission will rely on its own reading and study of the advertisements to determine whether the questioned representation has the capacity to deceive.” (Id. at 13; emphasis added.) The hearing examiner' in a Federal Trade Commission proceeding has both the right and duty to make determinations concerning the credibility of witnesses and the exclusion of hearsay evidence; while the Commissioners may review those determinations on appeal, in light o,f the record, they may not choose to ignore completely the testimony adduced at the hearing.3

A further example of the Commissioners’ determination to make a de novo review of the advertisements rather than considering the record as developed during the hearing is the statement that: *586(Opinion of the Commission at 4; emphasis added.) Not only do we find this conduct on the part of the Commissioners a violation of their own rules and hence of due process, but we also seriously question their ability to make the determination called for without the aid of the testimony in the record. It should be noted that the advertisements here in question are directed at a specific, narrow part of the public — teenage girls who are recent high school graduates and who do not intend to pursue their formal education in college. While it may be true that some advertisements are so glaringly misleading that anyone can recognize that fact, we think it could only benefit the ultimate determination if the Commissioners had before them the testimony both of experts on youth and of teenage girls themselves, in addition to their own reading of the statements alleged to be misleading. While they might initially decide that a given statement had the capacity to mislead, perhaps testimony of experts and consumers would reveal that the group at which the statements were directed was in fact more knowledgeable and sophisticated than the Commissioners had originally anticipated. In any event, we think it can only help, and certainly it will not hurt, to have the testimony before the reviewing Commissioners as well as their own reading of the advertisements.

*585A review of the examiner’s initial decision has persuaded the members of the Commission to examine firsthand and independently the challenged representations contained in respondents’ advertisements rather than relying on the analysis thereof contained in the initial decision.4

*586As authority for the proposition that they could properly ignore the record and make a de novo determination of the capacity of the statement to mislead, the Commissioners state only that “[t]he Commission’s authority to predicate a finding of deception on its own examination and study is too well settled to require further comment.” (Opinion of the Commission at 4.) The Commission’s counsel reiterated this position on appeal, stating in the brief that:

The Commission, as stated in its opinion * * *, evaluated Cinderella’s advertising entirely on the basis of its own study of the material. It found no need to resolve the conflicting expert and consumer testimony in the record bearing upon the meaning of the advertisements.

(Brief for the Respondents at 14; emphasis added.) The brief further states that “[t]he law is too well settled to admit of any doubt that the meaning of advertisements and their tendency or capacity to deceive are questions of fact to be determined by the Commission, whose determination should be upheld unless clearly wrong.” (Id.)

On its face this statement is true — it is for the Federal Trade Commission to resolve such questions of fact. However, a distinction must be drawn between the “Commission,” meaning the entire Federal Trade Commission, including the Commissioners, hearing examiners, staff, etc., and the “Commissioners,” who are of course the five Federal Trade Commissioners. It is customary in common parlance, and occasionally even in court opinions, to use the word “Commission” to mean both the broader term and the more restricted group at the toR, which would be more accurately termed the “Commissioners.” Thus the. cases cited by the Commission in the statement that the “law is too well settled to admit of any doubt” are clearly inapposite, for their holdings relate to the entire “Commission,” not to the five “Commissioners” sitting as a reviewing body. In the *587leading case in this jurisdiction we stated:

The Commission here has determined that the use of the term “manufacturer’s list price” represents to the public that that was the price at which the product was usually and customarily sold by other stores in the area. This determination was within its power, unless it was “arbitrary or clearly wrong.” We cannot say that it was, particularly in view of the consumers’ testimony adduced at the hearing.

Giant Food Inc. v. FTC, 116 U.S.App.D.C. 227, 231-232, 322 F.2d 977, 981-982 (1963), cert. dismissed, 376 U.S. 967, 84 S.Ct. 1121, 12 L.Ed.2d 82 (1964) (emphasis added). From this and other statements of the court in the Giant Food case it is quite clear that the use of the words “the Commission” related to the Federal Trade Commission, not to the Federal Trade Commissioners sitting in review of an initial decision. It is therefore not appropriate to say that the court in that case upheld the power of the five Commissioners to review the challenged advertisements de novo, making an independent judgment concerning their capacity to deceive and ignoring the evidence adduced at a lengthy hearing.5 Counsel for the Commission have therefore seriously misread the cases which they have cited. We are unable to find any authority for their proposition — that a sixteen-day hearing may be completely ignored if the Commissioners are dissatisfied with the result reached by their hearing examiner. In fact, language in an opinion which the Commission cites cuts decidedly the other way:

This finding [that advertising tended to deceive] was amply supported by evidence adduced in the proceedings before the Commission * * *. The applicable section of the Act provides * * * that upon a review of this kind “[t]he findings of the Commission as to the facts, if supported by evidence, shall be conclusive.”

Stauffer Laboratories, Inc. v. FTC, 343 F.2d 75, 79 (9th Cir. 1965) (emphasis added).

There is a reason for the procedures set forth in the rules and regulations promulgated under the Federal Trade Commission Act. The procedures which have been established are designed to provide for proceedings in which both the Commission and the responding party have a fair and equal opportunity to present exhibits and witnesses designed to establish the legitimacy of their argument. The regulations are drawn so as to require reliance on that evidence by the hearing examiner.6 We think it as preposterous for the Commission to claim a right to ignore that evidence and, with more daring than prudence, to decide a case de novo as it would be for this *588court to claim a right to ignore the findings of fact and conclusions of law of a district court in a proceeding here, substituting the judgment of this court on a cold record for that of the finder of the fact below.

Counsel for the Commission referred at oral argument to the Supreme Court’s decision in FCC v. Allentown Broadcasting Corp., 349 U.S. 358, 75 S.Ct. 855, 99 L.Ed. 1147 (1955), in an effort to convince the court that the Commission could make an independent review of the advertisements without regard to the evidence adduced at the hearing. In that case the Court said:

The Court of Appeals’ conclusion of error as to evasiveness relies largely on its understanding that the Examiner’s findings based on demeanor of a witness are not to be overruled by a Board without a “very substantial preponderance in the testimony as recorded” * * *. We think this attitude goes too far. It seems to adopt for examiners of administrative agencies the ‘clearly erroneous’ rule of the Fed. Rules Civ.Proc., 52(a), applicable to courts.

349 U.S. at 364, 75 S.Ct. at 859. Of course, we agree with that statement; we do not mean by our previous statement that the same rule applies to both courts and administrative agencies. The Court went on to cite the Universal Camera opinion for the proposition that “[t]he responsibility for decision * * * placed on the Board is wholly inconsistent with the notion that it has power to reverse an examiner’s findings only when they are ‘clearly erroneous.’ ” Universal Camera Corp. v. NLRB, 340 U.S. 474, 492, 71 S.Ct. 456, 467, 95 L.Ed. 456 (1951). The determination we make here is not contrary to these statements by the Supreme Court; we do not say that the Commission must find an examiner’s findings of fact and conclusions of law “clearly erroneous” before overturning an initial decision, but we do say that it must consider that decision and the evidence in the record upon which it is based, rather than dismissing the proceedings at the hearing out of hand. To hold otherwise would put us in an impossible situation: the substantial evidence test as explained in Universal Camera requires us to review all of the record in determining whether the agency’s decision is supported by substantial evidence, yet the Commission contends that it has the power to make an independent determination without reference to the evidence. We hardly think it permissible for the Commission to draw such independent conclusions, while ignoring the record and consequently converting the entire hearing proceeding into a meaningless exercise, leaving it for the court to review the record to find whether there is evidence to support those conclusions.

The procedures for decision on appeal have been established for the Federal Trade Commission as follows:

Upon appeal from or review of an initial decision, the Commission will consider such parts of the record as are cited or as may be necessary to resolve the issues presented and, in addition, will, to the extent necessary or desirable, exercise all the power which it could have exercised if it had made the initial decision.

16 C.F.R. § 3.54(a) (1969) (emphasis added). Surely this language makes it clear that the five Commissioners, in reviewing an initial decision, are not to speak as verbum regis, but must consider the evidence adduced at the hearing. The regulation makes it clear that the Commissioners will consider the record, and that they may additionally exercise the powers they could have exercised had they made the initial decision. We do not hold that the Commissioners could not have reviewed the advertisements independently if they had been responsible for the decision from the outset; but when a proceeding which involves sixteen days, 1,810 pages of testimony, fifty-two witnesses, and 247 exhibits, has been established, the Commissioners are not free to • boil over in aggression and completely dismiss those *589proceedings either because they are dissatisfied with the outcome, or for any other reason. Such procedure is rooted in nothing and places the Commission in the position of being both the instrument and the musician at the same time. The result, legally, is a ragged and confusing mosaic defying the very archetype of due process, abandoning the merit in hearings of the power of persuasion for the persuasion of power and thereby producing a self-justifying system that makes fairness not really the controlling factor in practice that it seems in metaphor.

The regulations establish the procedure the Commission is to follow:

In rendering its decision [on appeal or review], the Commission will adopt, modify, or set aside the findings, conclusions, and rule or order contained in the initial decision, and will include in the decision a statement of the reasons or basis for its action. * * *

16 C.F.R. § 3.54(b) (1969) (emphasis added). This gives the reviewing Commissioners great latitude to disagree with their hearing examiner;7 it does not, however, give them the option of completely ignoring the testimony of many witnesses and the findings of the examiner on premises which are legally evanescent. If they choose to modify or set aside his conclusions they must state that they are doing so and they must give reasons for so doing. To hold otherwise is to ignore the objectives of adversary proceedings before the Commission. Only if such rules are carefully adhered to can a reviewing court properly analyze the action taken by the Commission; only then can the wheat of meaningful agency action be separated from the chaff of arbitrary and caprieious conduct. The Commissioners may not turn away in haughty administrative aloofness from the entire body of law governing their procedures.8

II. DISQUALIFICATION OF CHAIRMAN DIXON

An additional ground which requires remand of these proceedings — and which would have required reversal even in the absence of the above-described procedural irregularities — is participation in the proceedings by the then Chairman of the Federal Trade Commission, Paul Rand Dixon.

Notice that the hearing examiner’s dismissal of all charges would be appealed was filed by the Commission staff on February 1, 1968 (Brief for Petitioners at 18). On March 12, 1968, this court’s decision was handed down in a prior appeal arising from this same complaint, in which we upheld the Commission’s issuance of press releases which called attention to the pending proceedings.9 Then, on March 15,1968, while the appeal from the examiner’s decision was pending before him, Chairman Dixon made a speech before the Government Relations Workshop of the National Newspaper Association in which he stated:

What kind of vigor can a reputable newspaper exhibit ? The quick answer, of course, pertains to its editorial policy, its willingness to present the news without bias. However, that is only half the coin. How about ethics on the business side of running a paper? What standards are maintained on advertising acceptance? What would be the attitude toward accepting good money for advertising by a merchant who conducts a “going out of business” *590sale every five months? What about carrying ads that offer college educations in five weeks, fortunes by raising mushrooms in the basement, getting rid of pimples with a magic lotion, or becoming an airline’s hostess by attending a charm school? Or, to raise the target a bit, how many newspapers would hesitate to accept an ad promising an unqualified guarantee for a product when the guarantee is subject to many limitations? Without belaboring the point, I’m sure you’re aware that advertising acceptance standards could stand more tightening by many newspapers. Granted that newspapers are not in the advertising policing business, their advertising managers are savvy enough to smell deception when the odor is strong enough. And it is in the public interest, as well as their own, that their sensory organs become more discriminating. The Federal Trade Commission, even where it has jurisdiction, could not protect the public as quickly.

(App. 134; emphasis added.) It requires no superior olfactory powers to recognize that the danger of unfairness through prejudgment is not diminished by a cloak of self-righteousness. We have no concern for or interest in the public statements of government officers, but we are charged with the responsibility of making certain that the image of the administrative process is not transformed from a Rubens to a Modigliani.

We indicated in our earlier opinion in this case that “there is in fact and law authority in the Commission, acting in the public interest, to alert the public to suspected violations of the law by factual press releases whenever the Commission shall have reason to believe that a respondent is engaged in activities made unlawful by the Act * * FTC v. Cinderella Career & Finishing Schools, Inc., 131 U.S.App.D.C. 331, 337, 404 F.2d 1308, 1314 (1968) (emphasis added). This does not give individual Commissioners license to prejudge cases or to make speeches which give the appearance that the case has been prejudged.10 Conduct such as this may have the effect of entrenching a Commissioner in a position which he has publicly stated, making it difficult, if not impossible, for him to reach a different conclusion in the event he deems it necessary to do so after consideration of the record. There is a marked difference between the issuance of a press release which states that the Commission has filed a complaint becahse it has “reason to believe” that there have been violations, and statements by a Commissioner after an appeal has been filed which give the appearance that he has already prejudged the case and that the ultimate determination of the merits will move in predestined grooves. While these two situations — Commission press releases and a Commissioner’s pre-decision public statements — are similar in appearance, they are obviously of a different order of merit.

As we noted in our earlier opinion, Congress has specifically vested the administrative agencies both with the “power to act in an accusatory capacity” and with the “responsibility of ultimately determining the merits of the charges so presented.” 131 U.S.App.D.C. at 338, 404 F.2d at 1315.

Chairman Dixon, sensitive to theory but insensitive to reality, made the following statement in declining to recuse himself from this case after petitioners requested that he withdraw :

As * * * I have stated * * * this principle “is not a rigid command of the law, compelling disqualification for trifling causes, but a consideration addressed to the discretion and sound judgment of the administrator him*591self in determining whether, irrespective of the law’s requirements, he should disqualify himself.”

(App. 143.) To this tenet of self-appraisal we apply Lord Macaulay’s evaluation more than 100 years ago of our American government: “It has one drawback — it is all sail and no anchor.” We find it hard to believe that former Chairman Dixon is so indifferent to the dictates of the Courts of Appeals that he has chosen once again to put his personal determination of what the law requires ahead of what the courts have time and again told him the law requires. If this is a question of “discretion and judgment,” Commissioner Dixon has exercised questionable discretion and very poor judgment indeed, in directing his shafts and squibs at a case awaiting his official action. We can use his own words in telling Commissioner Dixon that he has acted “irrespective of the law’s requirements”; we will spell out for him once again, avoiding tired cliche and weary generalization, in no uncertain terms, exactly what those requirements are, in the fervent hope that this will be the last time we have to travel this wearisome road.

The test for disquaification has been succinctly stated as being whether “a disinterested observer may conclude that [the agency] has in some measure adjudged the facts as well as the law of a particular case in advance of hearing it.” Gilligan, Will & Co. v. SEC, 267 F.2d 461, 469 (2d Cir.), cert. denied, 361 U.S. 896, 80 S.Ct. 200, 4 L.Ed.2d 152 (1959).

That test was cited with approval by this court in Texaco, Inc. v. FTC, 118 U.S.App.D.C. 366, 336 F.2d 754 (1964), vacated and remanded on other grounds, 381 U.S. 739, 85 S.Ct. 1798, 14 L.Ed.2d 714 (1965). In that case Chairman Dixon made a speech before the National Congress of Petroleum Retailers, Inc. while a case against Texaco was pending before the examiner on remand. After restating the test for disqualification, this court said:

[A] disinterested reader of Chairman Dixon’s speech could hardly fail to conclude that he had in some measure decided in advance that Texaco had violated the Act.

118 U.S.App.D.C. at 372, 336 F.2d at 760. We further stated that such an administrative hearing “must be attended, not only with every element of fairness but with the very appearance of complete fairness,” citing Amos Treat & Co. v. SEC, 113 U.S.App.D.C. 100, 107, 306 F.2d 260, 267 (1962). We therefore concluded that Chairman Dixon’s participation in the Texaco case amounted to a denial of due process.

After our decision in Texaco the United States Court of Appeals for the Sixth Circuit was required to reverse a decision of the FTC because Chairman Dixon refused to recuse himself from the case even though he had served as Chief Counsel and Staff Director to the Senate Subcommittee which made the initial investigation into the production and sale of the “wonder drug” tetracycline. American Cyanamid Co. v. FTC, 363 F.2d 757 (1966). Incredible though it may seem, the court was compelled to note in that case that:

[T]he Commission is a fact-finding body. As Chairman, Mr. Dixon sat with the other members as triers of the facts and joined in making the factual determination upon which the order of the Commission is based. As counsel for the Senate Subcommittee, he had investigated and developed many of these same facts.

363 F.2d at 767 (emphasis added). It is appalling to witness such insensitivity to the requirements of due process; it is even more remarkable to find ourselves once again confronted with a situation in which Mr. Dixon, pouncing on the most convenient victim, has determined either to distort the holdings in the cited cases beyond all reasonable interpretation or to ignore them altogether. We are constrained to this harshness of language because of Mr. Dixon’s flagrant disregard of prior decisions.

*592The rationale for remanding the case despite the fact that former Chairman Dixon’s vote was not necessary for a majority is well established:

Litigants are entitled to an impartial tribunal whether it consists of one man or twenty and there is no way which we know of whereby the influence of one upon the others can be quantitatively measured.

Berkshire Employees Ass’n of Berkshire Knitting Mills v. NLRB, 121 F.2d 235, 239 (3d Cir. 1941). This rationale was cited with approval in the American Cyanamid opinion; we adopt the position of our sister circuits on this point.

III. CONCLUSION

For the reasons set forth above we vacate the order of the Commission and remand with instructions that the Commissioners consider the record and evidence in reviewing the initial decision, without the participation of Commissioner Dixon.

Vacated and remanded.

2.2.3.1.2.3 Executive Order 13,843 of July 10, 2018, 83 Fed. Reg. 32,755 (Jul. 13, 2018) (RESCINDED) 2.2.3.1.2.3 Executive Order 13,843 of July 10, 2018, 83 Fed. Reg. 32,755 (Jul. 13, 2018) (RESCINDED)

Excepting Administrative Law Judges From the Competitive Service

By the authority vested in me as President by the Constitution and the laws of the United States of America, including sections 3301 and 3302 of title 5, United States Code, it is hereby ordered as follows:

Section 1. Policy. The Federal Government benefits from a professional cadre of administrative law judges (ALJs) appointed under section 3105 of title 5, United States Code, who are impartial and committed to the rule of law. As illustrated by the Supreme Court's recent decision in Lucia v. Securities and Exchange Commission, No. 17-130 (June 21, 2018), ALJs are often called upon to discharge significant duties and exercise significant discretion in conducting proceedings under the laws of the United States. As part of their adjudications, ALJs interact with the public on issues of significance. Especially given the importance of the functions they discharge—which may range from taking testimony and conducting trials to ruling on the admissibility of evidence and enforcing compliance with their orders—ALJs must display appropriate temperament, legal acumen, impartiality, and sound judgment. They must also clearly communicate their decisions to the parties who appear before them, the agencies that oversee them, and the public that entrusts them with authority.

Previously, appointments to the position of ALJ have been made through competitive examination and competitive service selection procedures. The role of ALJs, however, has increased over time and ALJ decisions have, with increasing frequency, become the final word of the agencies they serve. Given this expanding responsibility for important agency adjudications, and as recognized by the Supreme Court in Lucia, at least some—and perhaps all—ALJs are “Officers of the United States” and thus subject to the Constitution's Appointments Clause, which governs who may appoint such officials.

As evident from recent litigation, Lucia may also raise questions about the method of appointing ALJs, including whether competitive examination and competitive service selection procedures are compatible with the discretion an agency head must possess under the Appointments Clause in selecting ALJs. Regardless of whether those procedures would violate the Appointments Clause as applied to certain ALJs, there are sound policy reasons to take steps to eliminate doubt regarding the constitutionality of the method of appointing officials who discharge such significant duties and exercise such significant discretion.

Pursuant to my authority under section 3302(1) of title 5, United States Code, I find that conditions of good administration make necessary an exception to the competitive hiring rules and examinations for the position of ALJ. These conditions include the need to provide agency heads with additional flexibility to assess prospective appointees without the limitations imposed by competitive examination and competitive service selection procedures. Placing the position of ALJ in the excepted service will mitigate concerns about undue limitations on the selection of ALJs, reduce the likelihood of successful Appointments Clause challenges, and forestall litigation in which such concerns have been or might be raised. This action will also give agencies greater ability and discretion to assess critical qualities in ALJ candidates, such as work ethic, judgment, and ability to meet the particular needs of the agency. These are all qualities individuals should have before wielding the significant authority conferred on ALJs, and each agency should be able to assess them without proceeding through complicated and elaborate examination processes or rating procedures that do not necessarily reflect the agency's particular needs. This change will also promote confidence in, and the durability of, agency adjudications.

Sec. 2. Excepted Service. Appointments of ALJs shall be made under Schedule E of the excepted service, as established by section 3 of this order.

Sec. 3. Implementation. (a) Civil Service Rule VI is amended as follows:

(i) 5 CFR 6.2 is amended to read:

OPM shall list positions that it excepts from the competitive service in Schedules A, B, C, and D, and it shall list the position of administrative law judge in Schedule E, which schedules shall constitute parts of this rule, as follows:

Schedule A. Positions other than those of a confidential or policy-determining character for which it is not practicable to examine shall be listed in Schedule A.

Schedule B. Positions other than those of a confidential or policy-determining character for which it is not practicable to hold a competitive examination shall be listed in Schedule B. Appointments to these positions shall be subject to such noncompetitive examination as may be prescribed by OPM.

Schedule C. Positions of a confidential or policy-determining character shall be listed in Schedule C.

Schedule D. Positions other than those of a confidential or policy-determining character for which the competitive service requirements make impracticable the adequate recruitment of sufficient numbers of students attending qualifying educational institutions or individuals who have recently completed qualifying educational programs. These positions, which are temporarily placed in the excepted service to enable more effective recruitment from all segments of society by using means of recruiting and assessing candidates that diverge from the rules generally applicable to the competitive service, shall be listed in Schedule D.

Schedule E. Position of administrative law judge appointed under 5 U.S.C. 3105. Conditions of good administration warrant that the position of administrative law judge be placed in the excepted service and that appointment to this position not be subject to the requirements of 5 CFR, part 302, including examination and rating requirements, though each agency shall follow the principle of veteran preference as far as administratively feasible.

(ii) 5 CFR 6.3(b) is amended to read:

(b) To the extent permitted by law and the provisions of this part, and subject to the suitability and fitness requirements of the applicable Civil Service Rules and Regulations, appointments and position changes in the excepted service shall be made in accordance with such regulations and practices as the head of the agency concerned finds necessary. These shall include, for the position of administrative law judge appointed under 5 U.S.C. 3105, the requirement that, at the time of application and any new appointment, the individual, other than an incumbent administrative law judge, must possess a professional license to practice law and be authorized to practice law under the laws of a State, the District of Columbia, the Commonwealth of Puerto Rico, or any territorial court established under the United States Constitution. For purposes of this requirement, judicial status is acceptable in lieu of “active” status in States that prohibit sitting judges from maintaining “active” status to practice law, and being in “good standing” is also acceptable in lieu of “active” status in States where the licensing authority considers “good standing” as having a current license to practice law. This requirement shall constitute a minimum standard for appointment to the position of administrative law judge, and such appointments may be subject to additional agency requirements where appropriate.

(iii) 5 CFR 6.4 is amended to read:

Except as required by statute, the Civil Service Rules and Regulations shall not apply to removals from positions listed in Schedules A, C, D, or E, or from positions excepted from the competitive service by statute. The Civil Service Rules and Regulations shall apply to removals from positions listed in Schedule B of persons who have competitive status.

(iv) 5 CFR 6.8 is amended to add after subsection (c):

(d) Effective on July 10, 2018, the position of administrative law judge appointed under 5 U.S.C. 3105 shall be listed in Schedule E for all levels of basic pay under 5 U.S.C. 5372(b). Incumbents of this position who are, on July 10, 2018, in the competitive service shall remain in the competitive service as long as they remain in their current positions.

(b) The Director of the Office of Personnel Management (Director) shall:

(i) adopt such regulations as the Director determines may be necessary to implement this order, including, as appropriate, amendments to or rescissions of regulations that are inconsistent with, or that would impede the implementation of, this order, giving particular attention to 5 CFR, part 212, subpart D; 5 CFR, part 213, subparts A and C; 5 CFR 302.101; and 5 CFR, part 930, subpart B; and

(ii) provide guidance on conducting a swift, orderly transition from the existing appointment process for ALJs to the Schedule E process established by this order.

Sec. 4. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented in a manner consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

 

2.2.3.1.3 Informal Adjudication 2.2.3.1.3 Informal Adjudication

2.2.3.1.3.1 Pension Benefit Guaranty Corp. v. LTV Corp. 2.2.3.1.3.1 Pension Benefit Guaranty Corp. v. LTV Corp.

PENSION BENEFIT GUARANTY CORPORATION v. THE LTV CORP. et al.

No. 89-390.

Argued February 27, 1990

Decided June 18, 1990

Blackmun, J., delivered the opinion of the Court, in which Rehnquist, C. J., and Brennan, Marshall, Scalia, and Kennedy, JJ., joined, and in which White and O’Connor, JJ., joined except as to the statement of judgment and n. 11. White, J., filed an opinion concurring in part and dissenting in part, in which O’Connor, J., joined, post, p. 656. Stevens, J., filed a dissenting opinion, post, p. 657.

Carol Connor Flowe argued the cause for petitioner. With her on the briefs were James J. Armbruster, Raymond Morgan Forster, Thomas S. Martin, Richard K. Willard, and Charles G. Cole.

Lewis B. Kaden argued the cause for respondents. With him on the brief for respondents The LTV Corporation et al. were Karen E. Wagner, Michael J. Crames, Marc Abrams, and Frank Cummings. Robin E. Phelan and Kathryn C. Malloy filed a brief for respondent Banctexas Dallas, N. A. Joel B. Ziueibel, Geoffrey M. Kalmus, Michael J. Dell, and Peter V. Pantaleo filed a brief for respondent LTV Bank Group. R. A. King and Kenneth R. Bruce filed a brief for respondents David H. Miller et al. Edgar H. Booth, Richard H. Kuh, and Mary S. Zitwer filed a brief for respondent Official Committee of Equity Security Holders. Leonard M. Rosen, Lawrence P. King, Theodore Gewertz, Harold S. Novikoff, Brian M. Cogan, and Mark A. Speiser filed a brief for respondent Official Committee of Unsecured Creditors of LTV Steel Company, Inc. William H. Roberts, Raymond L. Shapiro, Thomas E. Biron, William E. Taylor III, and Ann B. Laupheimer filed a brief for respondent Official Parent Creditors’ Committee of The LTV Corporation.*

*

Briefs of amici curiae urging reversal were filed for the United States by Solicitor General Starr, Deputy Solicitor General Shapiro, and Christopher J. Wright; for the American Society of Pension Actuaries by Chester J. Salkind; for Armco et al. by Benjamin R. Civiletti and W. Warren Hamel; and for the Retired Employees Benefits Coalition, Inc., by Bruce E. Davis.

Briefs of amici curiae urging affirmance were filed for the State of Ohio by Anthony J. Celebrezze, Jr., Attorney General, and Loren L. Braverman; and for the American Federation of Labor and Congress of Industrial Organizations et al. by Robert M. Weinberg, Jeremiah A. Collins, Peter O. Shinevar, Laurence Gold, Bernard Kleiman, Carl B. Frankel, Paul Whitehead, and Karin S. Feldman.

William J. Kilberg and Baruch A. Fellner filed a brief for Wheeling-Pittsburgh Steel Corp. as amicus curiae.

Justice Blackmun

delivered the opinion of the Court.

In this case we must determine whether the decision of the Pension Benefit Guaranty Corporation (PBGC) to restore certain pension plans under § 4047 of the Employee Retirement Income Security Act of 1974 (ERISA), 88 Stat. 1028, as amended, 100 Stat. 237, 29 U. S. C. § 1347, was, as the Court of Appeals concluded, arbitrary and capricious or contrary to law, within the meaning of the Administrative Procedure Act (APA), 5 U. S. C. § 706.

I

Petitioner PBGC is a wholly owned United States Government corporation, see 29 U. S. C. § 1302, modeled after the Federal Deposit Insurance Corporation. See 120 Cong. Rec. 29950 (1974) (statement of Sen. Bentsen). The Board of Directors of the PBGC consists of the Secretaries of the Treasury, Labor, and Commerce. 29 U. S. C. § 1302(d). The PBGC administers and enforces Title IV of ERISA. Title IV includes a mandatory Government insurance program that protects the pension benefits of over 30 million private-sector American workers who participate in plans covered by the Title.1 In enacting Title IV, Congress sought to ensure that employees and their beneficiaries would not be completely “deprived of anticipated retirement benefits by the termination of pension plans before sufficient funds have been accumulated in the plans.” Pension Benefit Guaranty Corporation v. R. A. Gray & Co., 467 U. S. 717, 720 (1984). See also Nachman Corp. v. Pension Benefit Guaranty Corporation, 446 U. S. 359, 361-362, 374-375 (1980).

When a plan covered under Title IV terminates with insufficient assets to satisfy its pension obligations to the employees, the PBGC becomes trustee of the plan, taking over the plan’s assets and liabilities. The PBGC then uses the plan’s assets to cover what it can of the benefit obligations. See 29 U. S. C. § 1344 (1982 ed. and Supp. IV). The PBGC then must add its own funds to ensure payment of most of the remaining “nonforfeitable” benefits, i. e., those benefits to which participants have earned entitlement under the plan terms as of the date of termination. §§ 1301(a)(8), 1322(a) and (b). ERISA does place limits on the benefits PBGC may guarantee upon plan termination, however, even if an employee is entitled to greater benefits under the terms of the plan. See 29 CFR § 2621.3(a)(2) and App. A (1989); 29 U. S. C. § 1322(b)(3)(B). In addition, benefit increases resulting from plan amendments adopted within five years of the termination are not paid in full. Finally, active plan participants (current employees) cease to earn additional benefits under the plan upon its termination and lose entitlement to most benefits not yet fully earned as of the date of plan termination. 29 U. S. C. §§ 1322(a) and (b), 1301(a)(8); 29 CFR § 2613.6 (1989).

The cost of the PBGC insurance is borne primarily by employers that maintain ongoing pension plans. Sections 4006 and 4007 of ERISA require these employers to pay annual premiums. See 29 U. S. C. §§ 1306 and 1307 (1982 ed. and Supp. IV). The insurance program is also financed by statutory liability imposed on employers who terminate underfunded pension plans. Upon termination, the employer becomes liable to the PBGC for the benefits that the PBGC will pay out.2 Because the PBGC historically has recovered only a small portion of that liability, Congress repeatedly has been forced to increase the annual premiums. Even with these increases, the PBGC in its most recent annual report noted liabilities of $4 billion and assets of only $2.4 billion, leaving a deficit of over $1.5 billion.

As noted above, plan termination is the insurable event under Title IV. Plans may be terminated “voluntarily” by an employer or “involuntarily” by the PBGC. An employer may terminate a plan voluntarily in one of two ways. It may proceed with a “standard termination” only if it has sufficient assets to pay all benefit commitments. A standard termination thus does not implicate PBGC insurance responsibilities. If an employer wishes to terminate a plan whose assets are insufficient to pay all benefits, the employer must demonstrate that it is in financial “distress” as defined in 29 U. S. C. § 1341(c) (1982 ed., Supp. IV). Neither a standard nor a distress termination by the employer, however, is permitted if termination would violate the terms of an existing collective-bargaining agreement. 29 U. S. C. § 1341(a)(3).

The PBGC, though, may terminate a plan “involuntarily,” notwithstanding the existence of a collective-bargaining agreement. Ibid. Section 4042 of ERISA provides that the PBGC may terminate a plan whenever it determines that:

“(1) the plan has not met the minimum funding standard required under section 412 of title 26, or has been notified by the Secretary of the Treasury that a notice of deficiency under section 6212 of title 26 has been mailed with respect to the tax imposed under section 4791(a) of title 26,
“(2) the plan will be unable to pay benefits when due,
“(3) the reportable event described in section 1343(b)(7) of this title has occurred, or
“(4) the possible long-run loss of the [PBGC] with respect to the plan may reasonably be expected to increase unreasonably if the plan is not terminated.” 29 U. S. C. § 1342(a).

Termination can be undone by PBGC. Section 4047 of ERISA, 29 U. S. C. § 1347, provides:

“In the case of a plan which has been terminated under section 1341 or 1342 of this title the [PBGC] is authorized in any such case in which [it] determines such action to be appropriate and consistent with its duties under this subchapter, to take such action as may be necessary to restore the plan to its pretermination status, including, but not limited to, the transfer to the employer or a plan administrator of control of part or all of the remaining assets and liabilities of the plan.”

When a plan is restored, full benefits are reinstated, and the employer, rather than the PBGC, again is responsible for the plan’s unfunded liabilities.

II

This case arose after respondent The LTV Corporation (LTV Corp.) and many of its subsidiaries, including LTV Steel Company Inc. (LTV Steel), (collectively LTV), in July 1986 filed petitions for reorganization under Chapter 11 of the Bankruptcy Code. At that time, LTV Steel was the sponsor of three defined benefit pension plans (Plans) covered by Title IV of ERISA. Two of the Plans were the products of collective-bargaining negotiations with the United Steelworkers of America (Steelworkers). The third was for nonunion salaried employees. Chronically underfunded, the Plans, by late 1986, had unfunded liabilities for promised benefits of almost $2.3 billion. Approximately $2.1 billion of this amount was covered by PBGC insurance.

It is undisputed that one of LTV Corp.’s principal goals in filing the Chapter 11 petitions was the restructuring of LTV Steel’s pension obligations, a goal which could be accomplished if the Plans were terminated and responsibility for the unfunded liabilities was placed on the PBGC. LTV Steel then could negotiate with its employees for new pension arrangements. LTV, however, could not voluntarily terminate the Plans because two of them had been negotiated in collective bargaining. LTV therefore sought to have the PBGC terminate the Plans.

To that end, LTV advised the PBGC in 1986 that it could not continue to provide complete funding for the Plans. PBGC estimated that, without continued funding, the Plans’ $2.1 billion underfunding could increase by as much as $65 million by December 1987 and by another $63 million by December 1988, unless the Plans were terminated. Moreover, extensive plant shutdowns were anticipated. These shutdowns, if they occurred before the Plans were terminated, would have required the payment of significant “shutdown benefits.” The PBGC estimated that such benefits could increase the Plans’ liabilities by as much as $300 million to $700 million, of which up to $500 million would be covered by PBGC insurance. Confronted with this information, the PBGC, invoking § 4042(a)(4) of ERISA, 29 U. S. C. § 1342(a)(4), determined that the Plans should be terminated in order to protect the insurance program from the unreasonable risk of large losses, and commenced termination proceedings in the District Court. With LTV’s consent, the Plans were terminated effective January 13, 1987.3

Because the Plans’ participants lost some benefits as a result of the termination, the Steelworkers filed an adversary action against LTV in the Bankruptcy Court, challenging the termination and seeking an order directing LTV to make up the lost benefits. This action was settled, with LTV and the Steelworkers negotiating an interim collective-bargaining agreement that included new pension arrangements intended to make up benefits that plan participants lost as a result of the termination. New payments to retirees were based explicitly upon “a percentage of the difference between the benefit that was being paid under the Prior Plans and the amount paid by the PBGC.” App. 181. Retired participants were thereby placed in substantially the same positions they would have occupied had the old Plans never been terminated. The new agreements respecting active participants were also designed to replace benefits under the old Plans that were not insured by the PBGC, such as early retirement benefits and shutdown benefits. With respect to shutdown benefits, LTV stated in Bankruptcy Court that the new benefits totaled “75% of benefits lost as a result of plan termination.” Id., at 159. With respect to some other kinds of benefits for active participants, the new arrangements provided 100% or more of the lost benefits. Id., at 235.

The PBGC objected to these new pension agreements, characterizing them as “follow-on” plans. It defines a follow-on plan as a new benefit arrangement designed to wrap around the insurance benefits provided by the PBGC in such a way as to provide both retirees and active participants substantially the same benefits as they would have received had no termination occurred. The PBGC’s policy against follow-on plans stems from the agency’s belief that such plans are “abusive” of the insurance program and result in the PBGC’s subsidizing an employer’s ongoing pension program in a way not contemplated by Title IV. The PBGC consistently has made clear its policy of using its restoration powers under § 4047 if an employer institutes an abusive follow-on plan. In three opinion letters, two in 1981 and one in 1986, the PBGC stated: “[T]he termination insurance program of Title IV was not intended to subsidize an employer’s ongoing retirement program.” App. to Pet. for Cert. 162a, 167a, 173a. Accordingly, the PBGC has indicated that if an employer adopts a new plan that, “together with the guaranteed benefits paid by the PBGC under the terminated plan, provide[s] for the payment of, accrual of, or eligibility for benefits that are substantially the same as those provided under the terminated plan,” App. 229, the PBGC will view the plan as an attempt to shift liability to the termination insurance program while continuing to operate the plan.

LTV ignored the PBGC’s objections to the new pension arrangements and asked the Bankruptcy Court for permission to fund the follow-on plans. The Bankruptcy Court granted LTV’s request. In doing so, however, it noted that the PBGC “may have legal options or avenues that it can assert administratively . . . to implement its policy goals. Nothing done here tonight precludes the PBGC from pursuing these options. . . .” Id., at 261.

In early August 1987, the PBGC determined that the financial factors on which it had relied in terminating the Plans had changed significantly. Of particular significance to the PBGC was its belief that the steel industry, including LTV Steel, was experiencing a dramatic turnaround. As a result, the PBGC concluded it no longer faced the imminent risk, central to its original termination decision, of large unfunded liabilities stemming from plant shutdowns. Later that month, the PBGC’s internal working group made a recommendation, based upon LTV’s improved financial circumstances and its follow-on plans, to the PBGC’s Executive Director to restore the Plans under the PBGC’s § 4047 powers. After consulting the PBGC’s Board of Directors, which agreed with the working group that restoration was appropriate, the Executive Director decided to restore the Plans.4

The Director issued a notice of restoration on September 22, 1987, indicating the PBGC’s intent to restore the terminated Plans. The PBGC notice explained that the restoration decision was based on (1) LTV’s establishment of “a retirement program that results in an abuse of the pension plan termination insurance system established by Title IV of ERISA,” and (2) LTV’s “improved financial circumstances.” See App. to Pet. for Cert. 182a.5 Restoration meant that the Plans were ongoing, and that LTV again would be responsible for administering and funding them.

LTV refused to comply with the restoration decision. This prompted the PBGC to initiate an enforcement action in the District Court.6 The court vacated the PBGC’s restoration decision, finding, among other things, that the PBGC had exceeded its authority under § 4047. See In re Chateaugay Corp., 87 B. R. 779 (SDNY 1988).

The Court of Appeals for the Second Circuit affirmed, holding that the PBGC’s restoration decision was “arbitrary and capricious” or contrary to law under the APA, 5 U. S. C. § 706(2)(A), in various ways. 875 F. 2d 1008, 1015-1021 (1989). The court first concluded that the PBGC’s action was arbitrary and capricious because the PBGC focused “inordinately on ERISA” to the exclusion of other laws. Id., at 1016. The court then found the agency’s anti-follow-on policy to be contrary to law because the “legislative history of section 4047 reveals no indication that Congress intended the establishment of successive [i. e., follow-on] benefit plans to be a ground for restoration.” Id., at 1017. The court also found the PBGC’s other basis for restoration—improved financial condition—inadequate because the PBGC did not explain many of its economic assumptions. Id., at 1018-1020. Finally, the court concluded that the agency’s restoration decision was arbitrary and capricious because the PBGC’s decisionmaking process of informal adjudication lacked adequate procedural safeguards. Id., at 1021.

Because of the significant administrative law questions raised by this case, and the importance of the PBGC’s insurance program, we granted certiorari. 493 U. S. 932 (1989).

III

A

The Court of Appeals first held that the restoration decision was arbitrary and capricious under § 706(2)(A) because the PBGC did not take account of all the areas of law the court deemed relevant to the restoration decision. The court expressed the view that “[b]ecause ERISA, bankruptcy and labor law are involved in the case at hand, there must be a showing on the administrative record that PBGC, before reaching its decision, considered all of these areas of the law, and to the extent possible, honored the policies underlying them.” 875 F. 2d, at 1015. The court concluded that the administrative record did not reflect thorough and explicit consideration by the PBGC of the “policies and goals” of each of the three bodies of law. Id., at 1016. As the court put it, the PBGC “focused inordinately on ERISA.” Ibid. The Court of Appeals did not hold that the PBGC’s decision actually conflicted with any provision in the bankruptcy or labor laws, or that the PBGC’s action “trench[ed] upon the . . . jurisdiction” of another agency. See Burlington Truck Lines, Inc. v. United States, 371 U. S. 156, 173 (1962). Rather, the court held that because labor law and bankruptcy law are “involved in the case at hand,” the PBGC had an affirmative obligation, which had not been met, to address them. 875 F. 2d, at 1015.

The PBGC contends that the Court of Appeals misapplied the general rule that an agency must take into consideration all relevant factors, see Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U. S. 402, 416 (1971), by requiring the agency explicitly to consider and discuss labor and bankruptcy law. We agree.

First, and most important, we do not think that the requirement imposed by the Court of Appeals upon the PBGC can be reconciled with the plain language of § 4047, under which the PBGC is operating in this case. This section gives the PBGC the power to restore terminated plans in any case in which the PBGC determines such action to be “appropriate and consistent with its duties under this title [i. e., Title IV of ERISA]” (emphasis added). The statute does not direct the PBGC to make restoration decisions that further the “public interest” generally, but rather empowers the agency to restore when restoration would further the interests that Title IV of ERISA is designed to protect. Given this specific and unambiguous statutory mandate, we do not think that the PBGC did or could focus “inordinately” on ERISA in making its restoration decision.

Even if Congress’ directive to the PBGC had not been so clear, we are not entirely sure that the Court of Appeals’ holding makes good sense as a general principle of administrative law. The PBGC points out problems that would arise if federal courts routinely were to require each agency to take explicit account of public policies that derive from federal statutes other than the agency’s enabling Act. To begin with, there are numerous federal statutes that could be said to embody countless policies. If agency action may be disturbed whenever a reviewing court is able to point to an arguably relevant statutory policy that was not explicitly considered, then a very large number of agency decisions might be open to judicial invalidation.

The Court of Appeals’ directive that the PBGC give effect to the “policies and goals” of other statutes, apart from what those statutes actually provide,7 is questionable for another reason as well. Because the PBGC can claim no expertise in the labor and bankruptcy areas, it may be ill equipped to undertake the difficult task of discerning and applying the “policies and goals” of those fields. This Court recently observed:

“[N]o legislation pursues its purposes at all costs. Deciding what competing values will or will not be sacrificed to the achievement of a particular objective is the very essence of legislative choice—and it frustrates rather than effectuates legislative intent simplistically to assume that whatever furthers the statute’s primary objective must be the law.” Rodriguez v. United States, 480 U. S. 522, 525-526 (1987).

For these reasons, we believe the Court of Appeals erred in holding that the PBGC’s restoration decision was arbitrary and capricious because the agency failed adequately to consider principles and policies of bankruptcy law and labor law.

B

The Court of Appeals also rejected the grounds for restoration that the PBGC did assert and discuss. The court found that the first ground the PBGC proffered to support the restoration—its policy against follow-on plans—was contrary to law because there was no indication in the text of the restoration provision, § 4047, or its legislative history that Congress intended the PBGC to use successive benefit plans as a basis for restoration. The PBGC argues that in reaching this conclusion the Court of Appeals departed from traditional principles of statutory interpretation and judicial review of agency construction of statutes. Again, we must agree.

In Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837 (1984), we set forth the general principles to be applied when federal courts review an agency’s interpretation of the statute it implements:

“When a court reviews an agency’s construction of the statute which it administers, it is confronted with two questions. First, always, is the question whether Congress has directly spoken to the precise question at issue. If the intent of Congress is clear, that is the end of the matter; for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress. If, however, the court determines Congress has not directly addressed the precise question at issue, the court does not simply impose its own construction on the statute, as would be necessary in the absence of an administrative interpretation. Rather, if the statute is silent or ambiguous with respect to the specific issue, the question for the court is whether the agency’s answer is based on a permissible construction of the statute. ” Id., at 842-843 (footnotes omitted).

Here, the PBGC has interpreted § 4047 as giving it the power to base restoration decisions on the existence of follow-on plans. Our task, then, is to determine whether any clear congressional desire to avoid restoration decisions based on successive pension plans exists, and, if the answer is in the negative, whether the PBGC’s policy is based upon a permissible construction of the statute. See Mead Corp. v. Tilley, 490 U. S. 714 (1989) (applying Chevron principles to the PBGC’s construction of ERISA).

Turning to the first half of the inquiry, we observe that the text of § 4047 does not evince a clear congressional intent to deprive the PBGC of the ability to base restoration decisions on the existence of follow-on plans. To the contrary, the textual grant of authority to the PBGC embodied in this section is broad. As noted above, the section authorizes the PBGC to restore terminated plans “in any such case in which [the PBGC] determines such action to be appropriate and consistent with its duties under [Title IV of ERISA].” 29 U. S. C. § 1347. The PBGC’s duties consist primarily of furthering the statutory purposes of Title IV identified by Congress. These are:

“(1) to encourage the continuation and maintenance of voluntary private pension plans for the benefit of their participants,
“(2) to provide for the timely and uninterrupted payment of pension benefits to participants and beneficiaries under plans to which this subchapter applies, and
“(3) to maintain premiums established by [the PBGC] under section 1306 of this title at the lowest level consistent with carrying out the obligations under this sub-chapter.” 29 U. S. C. § 1302(a).

On their face, of course, none of these statutorily identified purposes has anything to say about the precise question at issue—the use of follow-on plans as a basis for restoration decisions.

Nor do any of the other traditional tools of statutory construction compel the conclusion that Congress intended that the PBGC not base its restoration decisions on follow-on plans. The Court of Appeals relied extensively on passages in the legislative history of the 1974 enactment of ERISA which suggest that Congress considered financial recovery a valid basis for restoration, but which make no mention of follow-on plans. The court reasoned that because follow-ons were not among the bases for restoration discussed by Members of Congress, that body must have intended that the existence of follow-ons not be a reason for restoring pension plans. See 875 F. 2d, at 1017.

We do not agree with this conclusion. We first note that the discussion in the legislative history concerning grounds for restoration was not limited to the financial-recovery example. The House Conference Report indicated that restoration was appropriate if financial recovery or “some other factor made termination no longer advisable.” H. R. Conf. Rep. No. 93-1280, p. 378 (1974). Moreover, and more generally, the language of a statute—particularly language expressly granting an agency broad authority—is not to be regarded as modified by examples set forth in the legislative history. An example, after all, is just that: an illustration of a statute’s operation in practice. It is not, as the Court of Appeals apparently thought, a definitive interpretation of a statute’s scope. We see no suggestion in the legislative history that Congress intended its list of examples to be exhaustive. Under these circumstances, we conclude that ERISA’s legislative history does not suggest “clear congressional intent” on the question of follow-on plans.

The Court of Appeals also relied on the legislative history of the 1987 amendments to ERISA effected by the Pension Protection Act, Pub. L. 100-203, 101 Stat. 1330-333. See 875 F. 2d, at 1017. This history reveals that Congress in 1987 considered, but did not enact, a provision that expressly would have authorized the PBGC to prohibit follow-on plans. But subsequent legislative history is a “hazardous basis for inferring the intent of an earlier” Congress. United States v. Price, 361 U. S. 304, 313 (1960). It is a particularly dangerous ground on which to rest an interpretation of a prior statute when it concerns, as it does here, a proposal that does not become law. See, e. g., United States v. Wise, 370 U. S. 405, 411 (1962). Congressional inaction lacks “persuasive significance” because “several equally tenable inferences” may be drawn from such inaction, “including the inference that the existing legislation already incorporated the offered change.” Ibid. These admonitions are especially apt in the instant case because Congress was aware of the action taken by the PBGC with respect to LTV at the time it rejected the proposed amendment. See H. R. Rep. No. 100-391, pt. 1, pp. 106-107 (1987). Despite Congress’ awareness of the PBGC’s belief that the adoption of follow-on plans was a ground for restoration, Congress did not amend § 4047 to restrict the PBGC’s discretion. The conclusion that Congress thought the PBGC was properly exercising its authority is at least as plausible as any other. Thus, the legislative history surrounding the 1987 amendments provides no more support than the 1974 legislative history for the Court of Appeals’ holding that the PBGC’s interpretation of § 4047 contravened clear congressional will.

Having determined that the PBGC’s construction is not contrary to clear congressional intent, we still must ascertain whether the agency’s policy is based upon a “permissible” construction of the statute, that is, a construction that is “rational and consistent with the statute.” NLRB v. Food & Commercial Workers, 484 U. S. 112, 123 (1987); see also Sullivan v. Everhart, 494 U. S. 83 (1990). Respondents argue that the PBGC’s anti-follow-on policy is irrational because, as a practical matter, no purpose is served when the PBGC bases a restoration decision on something other than the improved financial health of the employer. According to respondents, “financial improvement [is] both a necessary and a sufficient condition for restoration. The agency’s asserted abuse policy . . . is logically irrelevant to the restoration decision.” Brief for Respondents LTV Corp. and LTV Steel 33 (emphasis added). We think not. The PBGC’s anti-follow-on policy is premised on the belief, which we find eminently reasonable, that employees will object more strenuously to a company’s original decision to terminate a plan (or to take financial steps that make termination likely) if the company cannot use a follow-on plan to put the employees in the same (or a similar) position after termination as they were in before. The availability of a follow-on plan thus would remove a significant check—employee resistance—against termination of a pension plan.

Consequently, follow-on plans may tend to frustrate one of the objectives of ERISA that the PBGC is supposed to accomplish—the “continuation and maintenance of voluntary private pension plans.” 29 U. S. C. § 1302(a)(1). In addition, follow-on plans have a tendency to increase the PBGC’s deficit and increase the insurance premiums all employers must pay, thereby frustrating another related statutory objective—the maintenance of low premiums. See 29 U. S. C. § 1302(a)(3). In short, the PBGC’s construction based upon its conclusion that the existence of follow-on plans will lead to more plan terminations and increased PBGC liabilities is “assuredly a permissible one.” Everhart, 494 U. S., at 93. Indeed, the judgments about the way the real world works that have gone into the PBGC’s anti-follow-on policy are precisely the kind that agencies are better equipped to make than are courts.8 This practical agency expertise is one of the principal justifications behind Chevron deference. See 467 U. S., at 865.

None of this is to say that financial improvement will never be relevant to a restoration decision. Indeed, if an employer’s financial situation remains so dire that restoration would lead inevitably to immediate retermination, the PBGC may decide not to restore a terminated plan even where the employer has instituted a follow-on plan.9 For present purposes, however, it is enough for us to decide that where, as here, there is no suggestion that immediate retermination of the plans will be necessary,10 it is rational for the PBGC to disfavor follow-on plans.11

C

Finally, we consider the Court of Appeals’ ruling that the agency procedures were inadequate in this particular case. Relying upon a passage in Bowman Transportation, Inc. v. Arkansas-Best Freight System, Inc., 419 U. S. 281, 288, n. 4 (1974), the court held that the PBGC’s decision was arbitrary and capricious because the “PBGC neither apprised LTV of the material on which it was to base its decision, gave LTV an adequate opportunity to offer contrary evidence, proceeded in accordance with ascertainable standards . . . , nor provided [LTV] a statement showing its reasoning in applying those standards.” 875 F. 2d, at 1021. The court suggested that on remand the agency was required to do each of these things.

The PBGC argues that this holding conflicts with Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council, Inc., 435 U. S. 519 (1978), where, the PBGC contends, this Court made clear that when the Due Process Clause is not implicated and an agency’s governing statute contains no specific procedural mandates, the APA establishes the maximum procedural requirements a reviewing court may impose on agencies. Although Vermont Yankee concerned additional procedures imposed by the Court of Appeals for the District of Columbia Circuit on the Atomic Energy Commission when the agency was engaging in informal rulemaking, the PBGC argues that the informal adjudication process by which the restoration decision was made should be governed by the same principles.

Respondents counter by arguing that courts, under some circumstances, do require agencies to undertake additional procedures. As support for this proposition, they rely on Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U. S. 402 (1971). In Overton Park, the Court concluded that the Secretary of Transportation’s “post hoc rationalizations” regarding a decision to authorize the construction of a highway did not provide “an [a]dequate basis for [judicial] review” for purposes of the APA, 5 U. S. C. §706. Id., at 419. Accordingly, the Court directed the District Court on remand to consider evidence that shed light on the Secretary’s reasoning at the time he made the decision. Of particular relevance for present purposes, the Court in Overton Park intimated that one recourse for the District Court might be a remand to the agency for a fuller explanation of the agency’s reasoning at the time of the agency action. See id., at 420-421. Subsequent cases have made clear that remanding to the agency in fact is the preferred course. See Florida Power & Light Co. v. Lorion, 470 U. S. 729, 744 (1985) (“[I]f the reviewing court simply cannot evaluate the challenged agency action on the basis of the record before it, the proper course, except in rare circumstances, is to remand to the agency for additional investigation or explanation”). Respondents contend that the instant case is controlled by Overton Park rather than Vermont Yankee, and that the Court of Appeals’ ruling was thus correct.

We believe that respondents’ argument is wide of the mark. We begin by noting that although one initially might feel that there is some tension between Vermont Yankee and Overton Park, the two cases are not necessarily inconsistent. Vermont Yankee stands for the general proposition that courts are not free to impose upon agencies specific procedural requirements that have no basis in the APA. See 435 U. S., at 524. At most, Overton Park suggests that § 706 (2)(A), which directs a court to ensure that an agency action is not arbitrary and capricious or otherwise contrary to law, imposes a general “procedural” requirement of sorts by mandating that an agency take whatever steps it needs to provide an explanation that will enable the court to evaluate the agency’s rationale at the time of decision.

Here, unlike in Overton Park, the Court of Appeals did not suggest that the administrative record was inadequate to enable the court to fulfill its duties under § 706. Rather, to support its ruling, the court focused on “fundamental fairness” to LTV. 875 F. 2d, at 1020-1021. With the possible exception of the absence of “ascertainable standards”—by which we are not exactly sure what the Court of Appeals meant—the procedural inadequacies cited by the court all relate to LTV’s role in the PBGC’s decisionmaking process. But the court did not point to any provision in ERISA or the APA which gives LTV the procedural rights the court identified. Thus, the court’s holding runs afoul of Vermont Yankee and finds no support in Overton Park.

Nor is Arkansas-Best, the case on which the Court of Appeals relied, to the contrary. The statement relied upon (which was dictum) said: “A party is entitled, of course, to know the issues on which decision will turn and to be apprised of the factual material on which the agency relies for decision so that he may rebut it.” 419 U. S., at 288, n. 4. That statement was entirely correct in the context of Arkansas-Best, which involved a formal adjudication by the Interstate Commerce Commission pursuant to the trial-type procedures set forth in §§ 5, 7 and 8 of the APA, 5 U. S. C. §§ 554, 556-557, which include requirements that parties be given notice of “the matters of fact and law asserted,” § 554(b)(3), an opportunity for “the submission and consideration of facts [and] arguments,” § 554(c)(1), and an opportunity to submit “proposed findings and conclusions” or “exceptions,” § 557(c)(1), (2). See 5 U. S. C. § 554(a); 49 Stat. 548, 54 Stat. 913, formerly codified at 49 U. S. C. §§ 17, 305(h) (1976 ed.), repealed 92 Stat. 1466; 96 Stat. 2444. The determination in this case, however, was lawfully made by informal adjudication, the minimal requirements for which are set forth in the APA, 5 U. S. C. § 555, and do not include such elements. A failure to provide them where the Due Process Clause itself does not require them (which has not been asserted here) is therefore not unlawful.

IV

We conclude that the PBGC’s failure to consider all potentially relevant areas of law did not render its restoration decision arbitrary and capricious. We also conclude that the PBGC’s anti-follow-on policy, an asserted basis for the restoration decision, is not contrary to clear congressional intent and is based on a permissible construction of § 4047. Finally, we find the procedures employed by the PBGC to be consistent with the APA. Accordingly, the judgment of the Court of Appeals is reversed, and the case is remanded for further proceedings consistent with this opinion.

It is so ordered.

1

Title IV covers virtually all “defined benefit” pension plans sponsored by private employers. A defined benefit plan is one that promises to pay employees, upon retirement, a fixed benefit under a formula that takes into account factors such as final salary and years of service with the employer. See 29 U. S. C. § 1321. It is distinguished from a “defined contribution” plan (also known as an “individual account” plan), under which the employer typically contributes a percentage of an employee’s compensation to an account, and the employee is entitled to the account upon retirement. See 29 U. S. C. §§ 1002(34) and (35). ERISA insurance does not cover defined contribution plans because employees are not promised any particular level of benefits; instead, they are promised only that they will receive the balances in their individual accounts.

2

Prior to 1987, employers were liable for only 75% of PBGC’s expenditures. In that year, Congress eliminated the 75% cap. See Pension Protection Act, Pub. L. 100-203, 101 Stat. 1330-333.

3

The Steelworkers appealed the District Court’s judgment (giving effect to the PBGC’s termination) to the United States Court of Appeals for the Second Circuit. That court affirmed. Jones & Laughlin Hourly Pension Plan v. LTV Corp., 824 F. 2d 197 (1987).

4

Thereafter, the Executive Director offered to meet with LTV to “consider any additional information [it] might wish to supply.” App. 348. Representatives of LTV and the PBGC then met on September 19 and 21, 1987. At these meetings, LTV officials expressed concern about the timing of the restoration decision and indicated that restoration would give rise to time-consuming litigation, which would cast doubt on the bankruptcy reorganization, thereby imposing hardship on other creditors.

5

The PBGC also gave a third reason for restoration—LTV’s “demonstrated willingness to fund employee retirement arrangements.” See App. to Pet. for Cert. 182a. Before the Court of Appeals for the Second Circuit, the PBGC conceded that this reason was not an independent basis for the restoration decision but rather was “subsumed [with]in the other two” grounds. See 875 F. 2d 1008, 1020 (1989). Accordingly, the Court of Appeals did not address this explanation for restoration, and neither do we.

6

Meanwhile, LTV filed an action in the Bankruptcy Court alleging that restoration would violate the automatic stay provision of the Bankruptcy Code. See 11 U. S. C. § 362(a). The District Court granted the PBGC’s motion to withdraw LTV’s action from the Bankruptcy Court pursuant to 28 U. S. C. § 157(d), and considered the two actions together. See In re Chateaugay Corp., 86 B. R. 33 (SDNY 1987).

7

It is worth noting that the provisions of ERISA itself do take account of other areas of federal law. For example, as noted above, an employer may not voluntarily terminate a plan if to do so would violate the terms of a collective-bargaining agreement. 29 U. S. C. § 1341(a)(3).

8

Justice Stevens suggests that the possibility of follow-on plans will make employees “no less likely to object to the financial steps that will lead to [an involuntary] plan termination because they would have no basis for belief that a union will insist on [the adoption of follow-on plans] when, perhaps years later, the PBGC involuntarily terminates the plan.” Post, at 659 (dissenting opinion). There is no reason to believe, however, that financial decisions that lead to an involuntary termination always or ordinarily occur far in advance of the termination itself. Thus, as Justice Stevens himself acknowledges with respect to a voluntary termination, “those who could object to [the events resulting in an involuntary termination may also be] reasonably assured of receiving benefits when the insurance is paid.” Ibid. Moreover, even when an involuntary termination does not occur until well after the financial decisions that lead to termination are made, we think the PBGC’s apparent belief that employee resistance to those financial decisions will be lessened to some degree by the prospect of follow-on plans after termination is not an unreasonable one.

9

For example, the PBGC did not restore a fourth LTV plan that had been terminated because, among other things, the plan had insufficient assets to pay benefits when due. App. 318.

10

In this respect we observe that in its notice of restoration, the PBGC relied on the long-term potential for PBGC liability. See 29 U. S. C. § 1342(a)(4). The PBGC did not conclude that the Plans were in any imminent danger or that LTV could not meet the statutory minimum-funding requirements. In fact, the PBGC observed in the notice that LTV did have “sufficient cash” to cover current benefits. See App. to Pet. for Cert. 183a. No party has suggested to this Court that, at the time of restoration, immediate retermination, either voluntary or involuntary, was likely.

11

Because we, like the Court of Appeals, read the PBGC’s notice of restoration as indicating that the PBGC’s anti-follow-on policy constitutes an independent ground for the restoration decision, we need not address that court’s ruling that the PBGC’s methodology with regard to the other asserted basis for restoration—improved financial condition—was flawed.

Justice White,

with whom Justice O’Connor joins, concurring in part and dissenting in part.

I join the Court’s opinion except for the statement of the judgment and footnote 11. In particular, I agree that the anti-follow-on policy at issue here is not contrary to the statute and that the PBGC would not have been prohibited from applying that policy as a basis for restoration in this case. Unlike the Court, however, I cannot read the notice of restoration as relying on the anti-follow-on policy and respondents’ alleged improved financial position as alternative, independent grounds for restoration. The notice, as I read it, clearly rested on both grounds in conjunction. Furthermore, it would make good sense to rely on improved financial position, for without it there would be a risk of an early re-termination of the plan. At the very least, there is serious doubt about the matter, and if the Court of Appeals was correct that the PBGC’s assessment of respondents’ financial position was inadequate—and I think it was—the case should be remanded to the agency to consider whether the anti-follow-on plan by itself provides sufficient grounds for a restoration order.

I realize that the PBGC represented at oral argument that it had relied on its anti-follow-on policy and on respondents’ improved financial condition as separate and independent grounds for the restoration, Tr. of Oral Arg. 25-26, but counsel’s post hoc rationalizations are no substitute for adequate action by the agency itself. See Motor Vehicle Mfrs. Assn. of United States, Inc. v. State Farm Mutual Automobile Insurance Co., 463 U. S. 29, 50 (1983). Nor may the PBGC’s restoration order be upheld even though the agency might reach the same result on remand, relying only on the anti-follow-on policy. “[The agency’s] action must be measured by what [it] did, not by what it might have done. . . . The [agency’s] action cannot be upheld merely because findings might have been made and considerations disclosed which would justify its order as an appropriate safeguard for the interests protected by the Act.” SEC v. Chenery Corp., 318 U. S. 80, 93-94 (1943).

I would therefore reverse the Court of Appeals in part, affirm in part, and remand with directions to return the case to the PBGC.

Justice Stevens,

dissenting.

In my opinion, at least with respect to ERISA plans that the PBGC has terminated involuntarily, the use of its restoration power under § 4047 to prohibit “follow-on” plans is contrary to the agency’s statutory mandate. Unless there was a sufficient improvement in LTV’s financial condition to justify the restoration order, I believe it should be set aside. I, therefore, would remand the case for a determination of whether that ground for the agency decision is adequately supported by the record.

A company that is undergoing reorganization under Chapter 11 of the Bankruptcy Code continues to operate an ongoing business and must have a satisfactory relationship with its work force in order to complete the reorganization process successfully. If its previous pension plans have been involuntarily terminated with the consequence that the PBGC has assumed the responsibility for discharging a significant share of the company’s pension obligations, that responsibility by the PBGC is an important resource on which the company has a right to rely during the reorganization process. It may use the financial cushion to fund capital investments, to pay current salary, or to satisfy contractual obligations, including the obligation to pay pension benefits. As long as the company uses its best efforts to complete the reorganization (and, incidentally, to reimburse the PBGC for payments made to its former employees to the extent required by ERISA),1 the PBGC does not have any reason to interfere with managerial decisions that the company makes and the bankruptcy court approves. Whether the company’s resources are dedicated to current expenditures or capital investments and whether the package of employee benefits that is provided to the work force is composed entirely of wages, vacation pay, and health insurance, on the one hand, or includes additional pension benefits, on the other, should be matters of indifference to the PBGC. Indeed, if it was faithful to the statement of congressional purposes in ERISA, see ante, at 648, it should favor an alternative that increases the company’s use and maintenance of pension plans and that provides for continued payment to existing plan beneficiaries. The follow-on plans, in my opinion, are wholly consistent with the purposes of ERISA.

According to the Court, the PBGC policy is premised on the belief that if the company cannot adopt a follow-on plan, the employees will object more strenuously (1) in the case of a voluntary termination, to the “company’s original decision to terminate a plan”; and (2) in the case of an involuntary termination, to the company’s decision “to take financial steps that make termination likely.” Ante, at 651. That belief might be justified in the case of a voluntary termination of an ERISA plan. Since the follow-on plan would be adopted immediately after plan termination, those who could object to the insurable event are also reasonably assured of receiving benefits when the insurance is paid.2 That view is wholly unwarranted, however, in the case of an involuntary termination. The insurable event, plan termination, is within the control of the PBGC, which presumably has determined that the company does not have the financial resources to meet its current pension obligations. Even if the company could adopt a follow-on plan, the employees will be no less likely to object to the financial steps that will lead to plan termination because they would have no basis for belief that a union will insist on that course when, perhaps years later, the PBGC involuntarily terminates the plan. The safety that comes from a healthy pension plan will not be overcome by the hope that a future union will remember the interests of its retirees and former employees. Plan restoration in these circumstances is not a legitimate curative to the problem of moral hazard, but rather constitutes punishment of both labor and management for the imprudence of their predecessors.

In the case of an involuntary termination, if a mistake in the financial analysis is made, or if there is a sufficient change in the financial condition of the company to justify a reinstatement of the company’s obligation, the PBGC should use its restoration powers. Without such a financial justification, however, there is nothing in the statute to authorize the PBGC’s use of that power to prevent a company from creating or maintaining the kind of employee benefit program that the statute was enacted to encourage.

Accordingly, I respectfully dissent.

1

At the time of the termination of the LTV plans, the PBGC was entitled to recover only 75 percent of the amounts expended to discharge LTV’s pension obligations. The statute has since been amended to authorize a 100 percent recovery. LTV represents that if the restoration order is upheld, and if—as seems highly probable—it is promptly followed by another termination, the PBGC bankruptcy claim will increase from about $2 billion to more than $3 billion. Brief for Respondents LTV Corp. and LTV Steel 33, n. 21. The PBGC, of course, does not assert this change as a justification for the restoration order.

2

The three opinion letters identifying the PBGC policy concerning follow-on plans all involved voluntary terminations. See App. to Pet. for Cert. 159a, 165a, 172a. The restoration order entered in this case was unprecedented.

2.2.3.2 Rulemaking 2.2.3.2 Rulemaking

2.2.3.2.1 Procedural Steps 2.2.3.2.1 Procedural Steps

2.2.3.2.1.1 The Standard Process: Notice-and-Comment Rulemaking 2.2.3.2.1.1 The Standard Process: Notice-and-Comment Rulemaking

2.2.3.2.1.1.1 Rule making 2.2.3.2.1.1.1 Rule making

(a) This section applies, according to the provisions thereof, except to the extent that there is involved—

(1) a military or foreign affairs function of the United States; or

(2) a matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts.


(b) General notice of proposed rule making shall be published in the Federal Register, unless persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law. The notice shall include—

(1) a statement of the time, place, and nature of public rule making 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.


Except when notice or hearing is required by statute, this subsection does not apply—

(A) to interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice; or

(B) when the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.


(c) After notice required by this section, the agency shall give interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity for oral presentation. After consideration of the relevant matter presented, the agency shall incorporate in the rules adopted a concise general statement of their basis and purpose. When rules are required by statute to be made on the record after opportunity for an agency hearing, sections 556 and 557 of this title apply instead of this subsection.

(d) The required publication or service of a substantive rule shall be made not less than 30 days before its effective date, except—

(1) a substantive rule which grants or recognizes an exemption or relieves a restriction;

(2) interpretative rules and statements of policy; or

(3) as otherwise provided by the agency for good cause found and published with the rule.


(e) Each agency shall give an interested person the right to petition for the issuance, amendment, or repeal of a rule.

Notes

Historical and Revision Notes
DerivationU.S. CodeRevised Statutes and

Statutes at Large

5 U.S.C. 1003. June 11, 1946, ch. 324, §4, 60 Stat. 238.

In subsection (a)(1), the words "or naval" are omitted as included in "military".

In subsection (b), the word "when" is substituted for "in any situation in which".

In subsection (c), the words "for oral presentation" are substituted for "to present the same orally in any manner". The words "sections 556 and 557 of this title apply instead of this subsection" are substituted for "the requirements of sections 1006 and 1007 of this title shall apply in place of the provisions of this subsection".

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Codification

Section 553 of former Title 5, Executive Departments and Government Officers and Employees, was transferred to section 2245 of Title 7, Agriculture.

Executive Order No. 12044

Ex. Ord. No. 12044, Mar. 23, 1978, 43 F.R. 12661, as amended by Ex. Ord. No. 12221, June 27, 1980, 45 F.R. 44249, which related to the improvement of Federal regulations, was revoked by Ex. Ord. No. 12291, Feb. 17, 1981, 46 F.R. 13193, formerly set out as a note under section 601 of this title.

2.2.3.2.1.1.2 United States v. Florida East Coast Railway Co. 2.2.3.2.1.1.2 United States v. Florida East Coast Railway Co.

410 U.S. 224 (1973)

UNITED STATES ET AL.
v.
FLORIDA EAST COAST RAILWAY CO. ET AL.

No. 70-279.

Supreme Court of United States.

Argued December 7, 1972.
Decided January 22, 1973.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA.

Samuel Huntington argued the cause for the United States et al. With him on the briefs were Solicitor General Griswold, Assistant Attorney General Kauper, Fritz R. Kahn, and Leonard S. Goodman.

A. Alvis Layne argued the cause for appellee Florida East Coast Railway Co. With him on the brief was [225] Walter G. Arnold. Richard A. Hollander argued the cause and filed a brief for appellee Seaboard Coast Line Railroad Co.

MR. JUSTICE REHNQUIST delivered the opinion of the Court.

Appellees, two railroad companies, brought this action in the District Court for the Middle District of Florida to set aside the incentive per diem rates established by appellant Interstate Commerce Commission in a rulemaking proceeding. Incentive Per Diem Charges1968, Ex parte No. 252 (Sub-No. 1), 337 I. C. C. 217 (1970). They challenged the order of the Commission on both substantive and procedural grounds. The District Court sustained appellees' position that the Commission had failed to comply with the applicable provisions of the Administrative Procedure Act, 5 U. S. C. § 551 et seq., and therefore set aside the order without dealing with the railroads' other contentions. The District Court held that the language of § 1 (14) (a)[1] of the Interstate Commerce [226] Act, 24 Stat. 379, as amended, 49 U. S. C. § 1 (14) (a), required the Commission in a proceeding such as this to act in accordance with the Administrative Procedure Act, 5 U. S. C. § 556 (d), and that the Commission's determination to receive submissions from the appellees only in written form was a violation of that section because the appellees were "prejudiced" by that determination within the meaning of that section.

Following our decision last Term in United States v. Allegheny-Ludlum Steel Corp., 406 U. S. 742 (1972), we noted probable jurisdiction, 407 U. S. 908 (1972), and requested the parties to brief the question of whether the Commission's proceeding was governed by 5 U. S. C. § 553,[2] [227] or by §§ 556[3] and 557,[4] of the Administrative Procedure Act. We here decide that the Commission's proceeding was governed only by § 553 of that Act, [228] and that appellees received the "hearing" required by § 1 (14) (a) of the Interstate Commerce Act. We, therefore, reverse the judgment of the District Court and [229] remand the case to that court for further consideration of appellees' other contentions that were raised there, but which we do not decide.

[230] I. BACKGROUND OF CHRONIC FREIGHT CAR SHORTAGES

This case arises from the factual background of a chronic freight-car shortage on the Nation's railroads, which we described in United States v. Allegheny-Ludlum Steel Corp., supra. Judge Simpson, writing for the District Court in this case, noted that "[f]or a number of years portions of the nation have been plagued with seasonal shortages of freight cars in which to ship goods." 322 F. Supp. 725, 726 (MD Fla. 1971). Judge Friendly, writing for a three-judge District Court in the Eastern District of New York in the related case of Long Island R. Co. v. United States, 318 F. Supp. 490, 491 (EDNY 1970), described the Commission's order as "the latest chapter in a long history of freight-car shortages in certain regions and seasons and of attempts to ease them." Congressional concern for the problem was manifested in the enactment in 1966 of an amendment to § 1 (14) (a) of the Interstate Commerce Act, enlarging the Commission's authority to prescribe per diem charges for the use by one railroad of freight cars owned by another. Pub. L. 89-430, 80 Stat. 168. The Senate [231] Committee on Commerce stated in its report accompanying this legislation:

"Car shortages, which once were confined to the Midwest during harvest seasons, have become increasingly more frequent, more severe, and nation-wide in scope as the national freight car supply has plummeted." S. Rep. No. 386, 89th Cong., 1st Sess., 1-2.

The Commission in 1966 commenced an investigation, Ex parte No. 252, Incentive Per Diem Charges, "to determine whether information presently available warranted the establishment of an incentive element increase, on an interim basis, to apply pending further study and investigation." 332 I. C. C. 11, 12 (1967). Statements of position were received from the Commission staff and a number of railroads. Hearings were conducted at which witnesses were examined. In October 1967, the Commission rendered a decision discontinuing the earlier proceeding, but announcing a program of further investigation into the general subject.

In December 1967, the Commission initiated the rulemaking procedure giving rise to the order that appellees here challenge. It directed Class I and Class II line-haul railroads to compile and report detailed information with respect to freight-car demand and supply at numerous sample stations for selected days of the week during 12 four-week periods, beginning January 29, 1968.

Some of the affected railroads voiced questions about the proposed study or requested modification in the study procedures outlined by the Commission in its notice of proposed rulemaking. In response to petitions setting forth these carriers' views, the Commission staff held an informal conference in April 1968, at which the objections and proposed modifications were discussed. [232] Twenty railroads, including appellee Seaboard, were represented at this conference, at which the Commission's staff sought to answer questions about reporting methods to accommodate individual circumstances of particular railroads. The conference adjourned on a note that undoubtedly left the impression that hearings would be held at some future date. A detailed report of the conference was sent to all parties to the proceeding before the Commission.

The results of the information thus collected were analyzed and presented to Congress by the Commission during a hearing before the Subcommittee on Surface Transportation of the Senate Committee on Commerce in May 1969. Members of the Subcommittee expressed dissatisfaction with the Commission's slow pace in exercising the authority that had been conferred upon it by the 1966 Amendments to the Interstate Commerce Act. Judge Simpson in his opinion for the District Court said:

"Members of the Senate Subcommittee on Surface Transportation expressed considerable dissatisfaction with the Commission's apparent inability to take effective steps toward eliminating the national shortage of freight cars. Comments were general that the Commission was conducting too many hearings and taking too little action. Senators pressed for more action and less talk, but Commission counsel expressed doubt respecting the Commission's statutory power to act without additional hearings." 322 F. Supp., at 727.

Judge Friendly, describing the same event in Long Island R. Co. v. United States, supra, said:

"To say that the presentation was not received with enthusiasm would be a considerable under-statement. Senators voiced displeasure at the Commission's [233] long delay at taking action under the 1966 amendment, engaged in some merriment over what was regarded as an unintelligible discussion of methodology . . . and expressed doubt about the need for a hearing . . . . But the Commission's general counsel insisted that a hearing was needed . . . and the Chairman of the Commission agreed . . . ." 318 F. Supp., at 494.

The Commission, now apparently imbued with a new sense of mission, issued in December 1969 an interim report announcing its tentative decision to adopt incentive per diem charges on standard boxcars based on the information compiled by the railroads. The substantive decision reached by the Commission was that so-called "incentive" per diem charges should be paid by any railroad using on its lines a standard boxcar owned by another railroad. Before the enactment of the 1966 amendment to the Interstate Commerce Act, it was generally thought that the Commission's authority to fix per diem payments for freight car use was limited to setting an amount that reflected fair return on investment for the owning railroad, without any regard being had for the desirability of prompt return to the owning line or for the encouragement of additional purchases of freight cars by the railroads as a method of investing capital. The Commission concluded, however, that in view of the 1966 amendment it could impose additional "incentive" per diem charges to spur prompt return of existing cars and to make acquisition of new cars financially attractive to the railroads. It did so by means of a proposed schedule that established such charges on an across-the-board basis for all common carriers by railroads subject to the Interstate Commerce Act. Embodied in the report was a proposed rule adopting the Commission's tentative conclusions and a notice [234] to the railroads to file statements of position within 60 days, couched in the following language:

"That verified statements of facts, briefs, and statements of position respecting the tentative conclusions reached in the said interim report, the rules and regulations proposed in the appendix to this order, and any other pertinent matter, are hereby invited to be submitted pursuant to the filing schedule set forth below by an interested person whether or not such person is already a party to this proceeding.

.....

"That any party requesting oral hearing shall set forth with specificity the need therefor and the evidence to be adduced." 337 I. C. C. 183, 213.

Both appellee railroads filed statements objecting to the Commission's proposal and requesting an oral hearing, as did numerous other railroads. In April 1970, the Commission, without having held further "hearings," issued a supplemental report making some modifications in the tentative conclusions earlier reached, but overruling in toto the requests of appellees.

The District Court held that in so doing the Commission violated § 556 (d) of the Administrative Procedure Act, and it was on this basis that it set aside the order of the Commission.

II. APPLICABILITY OF ADMINISTRATIVE PROCEDURE ACT

In United States v. Allegheny-Ludlum Steel Corp., supra, we held that the language of § 1 (14) (a) of the Interstate Commerce Act authorizing the Commission to act "after hearing" was not the equivalent of a requirement that a rule be made "on the record after opportunity for an agency hearing" as the latter term is used in § 553 (c) of the Administrative Procedure Act. Since the 1966 amendment to § 1 (14) (a), under which [235] the Commission was here proceeding, does not by its terms add to the hearing requirement contained in the earlier language, the same result should obtain here unless that amendment contains language that is tantamount to such a requirement. Appellees contend that such language is found in the provisions of that Act requiring that:

"[T]he Commission shall give consideration to the national level of ownership of such type of freight car and to other factors affecting the adequacy of the national freight car supply, and shall, on the basis of such consideration, determine whether compensation should be computed . . . ."

While this language is undoubtedly a mandate to the Commission to consider the factors there set forth in reaching any conclusion as to imposition of per diem incentive charges, it adds to the hearing requirements of the section neither expressly nor by implication. We know of no reason to think that an administrative agency in reaching a decision cannot accord consideration to factors such as those set forth in the 1966 amendment by means other than a trial-type hearing or the presentation of oral argument by the affected parties. Congress by that amendment specified necessary components of the ultimate decision, but it did not specify the method by which the Commission should acquire information about those components.[5]

[236] Both of the district courts that reviewed this order of the Commission concluded that its proceedings were governed by the stricter requirements of §§ 556 and 557 of the Administrative Procedure Act, rather than by the provisions of § 553 alone.[6] The conclusion of the District Court for the Middle District of Florida, which we here review, was based on the assumption that the language in § 1 (14) (a) of the Interstate Commerce Act requiring rulemaking under that section to be done "after hearing" was the equivalent of a statutory requirement that the rule "be made on the record after opportunity for an agency hearing." Such an assumption [237] is inconsistent with our decision in Allegheny-Ludlum, supra.

The District Court for the Eastern District of New York reached the same conclusion by a somewhat different line of reasoning. That court felt that because § 1 (14) (a) of the Interstate Commerce Act had required a "hearing," and because that section was originally enacted in 1917, Congress was probably thinking in terms of a "hearing" such as that described in the opinion of this Court in the roughly contemporaneous case of ICC v. Louisville & Nashville R. Co., 227 U. S. 88, 93 (1913). The ingredients of the "hearing" were there said to be that "[a]ll parties must be fully apprised of the evidence submitted or to be considered, and must be given opportunity to cross-examine witnesses, to inspect documents and to offer evidence in explanation or rebuttal." Combining this view of congressional understanding of the term "hearing" with comments by the Chairman of the Commission at the time of the adoption of the 1966 legislation regarding the necessity for "hearings," that court concluded that Congress had, in effect, required that these proceedings be "on the record after opportunity for an agency hearing" within the meaning of § 553 (c) of the Administrative Procedure Act.

Insofar as this conclusion is grounded on the belief that the language "after hearing" of § 1 (14) (a), without more, would trigger the applicability of §§ 556 and 557, it, too, is contrary to our decision in Allegheny-Ludlum, supra. The District Court observed that it was "rather hard to believe that the last sentence of § 553 (c) was directed only to the few legislative sports where the words `on the record' or their equivalent had found their way into the statute book." 318 F. Supp., at 496. This is, however, the language which Congress used, and since there are statutes on the books that do use these [238] very words, see, e. g., the Fulbright Amendment to the Walsh-Healey Act, 41 U. S. C. § 43a, and 21 U. S. C. § 371 (e) (3), the regulations provision of the Food and Drug Act, adherence to that language cannot be said to render the provision nugatory or ineffectual. We recognized in Allegheny-Ludlum that the actual words "on the record" and "after . . . hearing" used in § 553 were not words of art, and that other statutory language having the same meaning could trigger the provisions of §§ 556 and 557 in rulemaking proceedings. But we adhere to our conclusion, expressed in that case, that the phrase "after hearing" in § 1 (14) (a) of the Interstate Commerce Act does not have such an effect.

III. "HEARING" REQUIREMENT OF § 1 (14) (a) OF THE INTERSTATE COMMERCE ACT

Inextricably intertwined with the hearing requirement of the Administrative Procedure Act in this case is the meaning to be given to the language "after hearing" in § 1 (14) (a) of the Interstate Commerce Act. Appellees, both here and in the court below, contend that the Commission procedure here fell short of that mandated by the "hearing" requirement of § 1 (14) (a), even though it may have satisfied § 553 of the Administrative Procedure Act. The Administrative Procedure Act states that none of its provisions "limit or repeal additional requirements imposed by statute or otherwise recognized by law." 5 U. S. C. § 559. Thus, even though the Commission was not required to comply with §§ 556 and 557 of that Act, it was required to accord the "hearing" specified in § 1 (14) (a) of the Interstate Commerce Act. Though the District Court did not pass on this contention, it is so closely related to the claim based on the Administrative Procedure Act that we proceed to decide it now.

[239] If we were to agree with the reasoning of the District Court for the Eastern District of New York with respect to the type of hearing required by the Interstate Commerce Act, the Commission's action might well violate those requirements, even though it was consistent with the requirements of the Administrative Procedure Act.

The term "hearing" in its legal context undoubtedly has a host of meanings.[7] Its meaning undoubtedly will vary, depending on whether it is used in the context of a rulemaking-type proceeding or in the context of a proceeding devoted to the adjudication of particular disputed facts. It is by no means apparent what the drafters of the Esch Car Service Act of 1917, 40 Stat. 101, which became the first part of § 1 (14) (a) of the Interstate Commerce Act, meant by the term. Such an intent would surely be an ephemeral one if, indeed, Congress in 1917 had in mind anything more specific than the language it actually used, for none of the parties refer to any legislative history that would shed light on the intended meaning of the words "after hearing." What is apparent, though, is that the term was used in granting authority to the Commission to make rules and regulations of a prospective nature.

Appellees refer us to testimony of the Chairman of the Commission to the effect that if the added authority ultimately contained in the 1966 amendment were enacted, the Commission would proceed with "great caution" in imposing incentive per diem rates, and to statements of both Commission personnel and Members of Congress as to the necessity for a "hearing" before Commission action. Certainly, the lapse of time of more than three years between the enactment of the 1966 amendment and the Commission's issuance of its tentative [240] conclusions cannot be said to evidence any lack of caution on the part of that body. Nor do generalized references to the necessity for a hearing advance our inquiry, since the statute by its terms requires a "hearing"; the more precise inquiry of whether the hearing requirements necessarily include submission of oral testimony, cross-examination, or oral arguments is not resolved by such comments as these.

Under these circumstances, confronted with a grant of substantive authority made after the Administrative Procedure Act was enacted,[8] we think that reference to that Act, in which Congress devoted itself exclusively to questions such as the nature and scope of hearings, is a satisfactory basis for determining what is meant by the term "hearing" used in another statute. Turning to that Act, we are convinced that the term "hearing" as used therein does not necessarily embrace either the right to present evidence orally and to cross-examine opposing witnesses, or the right to present oral argument to the agency's decisionmaker.

Section 553 excepts from its requirements rulemaking devoted to "interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice," and rulemaking "when the agency for good cause finds . . . that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest." This exception does not apply, however, "when notice or hearing is required by statute"; in those cases, even though interpretative rulemaking be involved, the requirements of § 553 apply. But since these requirements [241] themselves do not mandate any oral presentation, see Allegheny-Ludlum, supra, it cannot be doubted that a statute that requires a "hearing" prior to rulemaking may in some circumstances be satisfied by procedures that meet only the standards of § 553. The Court's opinion in FPC v. Texaco Inc., 377 U. S. 33 (1964), supports such a broad definition of the term "hearing."

Similarly, even where the statute requires that the rulemaking procedure take place "on the record after opportunity for an agency hearing," thus triggering the applicability of § 556, subsection (d) provides that the agency may proceed by the submission of all or part of the evidence in written form if a party will not be "prejudiced thereby." Again, the Act makes it plain that a specific statutory mandate that the proceedings take place on the record after hearing may be satisfied in some circumstances by evidentiary submission in written form only.

We think this treatment of the term "hearing" in the Administrative Procedure Act affords a sufficient basis for concluding that the requirement of a "hearing" contained in § 1 (14) (a), in a situation where the Commission was acting under the 1966 statutory rulemaking authority that Congress had conferred upon it, did not by its own force require the Commission either to hear oral testimony, to permit cross-examination of Commission witnesses, or to hear oral argument. Here, the Commission promulgated a tentative draft of an order, and accorded all interested parties 60 days in which to file statements of position, submissions of evidence, and other relevant observations. The parties had fair notice of exactly what the Commission proposed to do, and were given an opportunity to comment, to object, or to make some other form of written submission. The final order of the Commission indicates that it gave consideration to the statements of the two appellees here. [242] Given the "open-ended" nature of the proceedings, and the Commission's announced willingness to consider proposals for modification after operating experience had been acquired, we think the hearing requirement of § 1 (14) (a) of the Act was met.

Appellee railroads cite a number of our previous decisions dealing in some manner with the right to a hearing in an administrative proceeding. Although appellees have asserted no claim of constitutional deprivation in this proceeding, some of the cases they rely upon expressly speak in constitutional terms, while others are less than clear as to whether they depend upon the Due Process Clause of the Fifth and Fourteenth Amendments to the Constitution, or upon generalized principles of administrative law formulated prior to the adoption of the Administrative Procedure Act.

Morgan v. United States, 304 U. S. 1 (1938), is cited in support of appellees' contention that the Commission's proceedings were fatally deficient. That opinion describes the proceedings there involved as "quasi-judicial," id., at 14, and thus presumably distinct from a rulemaking proceeding such as that engaged in by the Commission here. But since the order of the Secretary of Agriculture there challenged did involve a form of ratemaking, the case bears enough resemblance to the facts of this case to warrant further examination of appellees' contention. The administrative procedure in Morgan was held to be defective primarily because the persons who were to be affected by the Secretary's order were found not to have been adequately apprised of what the Secretary proposed to do prior to the time that he actually did it. Illustrative of the Court's reasoning is the following passage from the opinion:

"The right to a hearing embraces not only the right to present evidence but also a reasonable opportunity to know the claims of the opposing party [243] and to meet them. The right to submit argument implies that opportunity; otherwise the right may be but a barren one. Those who are brought into contest with the Government in a quasi-judicial proceeding aimed at the control of their activities are entitled to be fairly advised of what the Government proposes and to be heard upon its proposals before it issues its final command." Id., at 18-19.[9]

The proceedings before the Secretary of Agriculture had been initiated by a notice of inquiry into the reasonableness of the rates in question, and the individuals being regulated suffered throughout the proceeding from its essential formlessness. The Court concluded that this formlessness denied the individuals subject to regulation the "full hearing" that the statute had provided.

Assuming, arguendo, that the statutory term "full hearing" does not differ significantly from the hearing requirement of § 1 (14) (a), we do not believe that the proceedings of the Interstate Commerce Commission before us suffer from the defect found to be fatal in Morgan. Though the initial notice of the proceeding by no means set out in detail what the Commission proposed to do, its tentative conclusions and order of December 1969, could scarcely have been more explicit or detailed. All interested parties were given 60 days following the issuance of these tentative findings and order in which to make appropriate objections. Appellees were "fairly advised" of exactly what the Commission proposed to do sufficiently in advance of the entry of the final order to give them adequate time to [244] formulate and to present objections to the Commission's proposal. Morgan, therefore, does not aid appellees.

ICC v. Louisville & Nashville R. Co., 227 U. S. 88 (1913), involved what the Court there described as a "quasi-judicial" proceeding of a quite different nature from the one we review here. The provisions of the Interstate Commerce Act, 24 Stat. 379, as amended, and of the Hepburn Act, 34 Stat. 584, in effect at the time that case was decided, left to the railroad carriers the "primary right to make rates," 227 U. S., at 92, but granted to the Commission the authority to set them aside, if after hearing, they were shown to be unreasonable. The proceeding before the Commission in that case had been instituted by the New Orleans Board of Trade complaint that certain class and commodity rates charged by the Louisville & Nashville Railroad from New Orleans to other points were unfair, unreasonable, and discriminatory. 227 U. S., at 90. The type of proceeding there, in which the Commission adjudicated a complaint by a shipper that specified rates set by a carrier were unreasonable, was sufficiently different from the nationwide incentive payments ordered to be made by all railroads in this proceeding so as to make the Louisville & Nashville opinion inapplicable in the case presently before us.

The basic distinction between rulemaking and adjudication is illustrated by this Court's treatment of two related cases under the Due Process Clause of the Fourteenth Amendment. In Londoner v. Denver, cited in oral argument by appellees, 210 U. S. 373 (1908), the Court held that due process had not been accorded a landowner who objected to the amount assessed against his land as its share of the benefit resulting from the paving of a street. Local procedure had accorded him the right to file a written complaint and objection, but not to be heard orally. This Court held that due process [245] of law required that he "have the right to support his allegations by argument however brief, and, if need be, by proof, however informal." Id., at 386. But in the later case of Bi-Metallic Investment Co. v. State Board of Equalization, 239 U. S. 441 (1915), the Court held that no hearing at all was constitutionally required prior to a decision by state tax officers in Colorado to increase the valuation of all taxable property in Denver by a substantial percentage. The Court distinguished Londoner by stating that there a small number of persons "were exceptionally affected, in each case upon individual grounds." Id., at 446.

Later decisions have continued to observe the distinction adverted to in Bi-Metallic Investment Co., supra. In Ohio Bell Telephone Co. v. Public Utilities Comm'n, 301 U. S. 292, 304-305 (1937), the Court noted the fact that the administrative proceeding there involved was designed to require the utility to refund previously collected rate charges. The Court held that in such a proceeding the agency could not, consistently with due process, act on the basis of undisclosed evidence that was never made a part of the record before the agency. The case is thus more akin to Louisville & Nashville R. Co., supra, than it is to this case. FCC v. WJR, 337 U. S. 265 (1949), established that there was no across-the-board constitutional right to oral argument in every administrative proceeding regardless of its nature. While the line dividing them may not always be a bright one, these decisions represent a recognized distinction in administrative law between proceedings for the purpose of promulgating policy-type rules or standards, on the one hand, and proceedings designed to adjudicate disputed facts in particular cases on the other.

Here, the incentive payments proposed by the Commission in its tentative order, and later adopted in its [246] final order, were applicable across the board to all of the common carriers by railroad subject to the Interstate Commerce Act. No effort was made to single out any particular railroad for special consideration based on its own peculiar circumstances. Indeed, one of the objections of appellee Florida East Coast was that it and other terminating carriers should have been treated differently from the generality of the railroads. But the fact that the order may in its effects have been thought more disadvantageous by some railroads than by others does not change its generalized nature. Though the Commission obviously relied on factual inferences as a basis for its order, the source of these factual inferences was apparent to anyone who read the order of December 1969. The factual inferences were used in the formulation of a basically legislative-type judgment, for prospective application only, rather than in adjudicating a particular set of disputed facts.

The Commission's procedure satisfied both the provisions of § 1 (14) (a) of the Interstate Commerce Act and of the Administrative Procedure Act, and were not inconsistent with prior decisions of this Court. We, therefore, reverse the judgment of the District Court, and remand the case so that it may consider those contentions of the parties that are not disposed of by this opinion.

It is so ordered.

MR. JUSTICE POWELL took no part in the consideration or decision of this case.

MR. JUSTICE DOUGLAS, with whom MR. JUSTICE STEWART concurs, dissenting.

The present decision makes a sharp break with traditional concepts of procedural due process. The Commission order under attack is tantamount to a rate order. Charges are fixed that nonowning railroads must pay [247] owning railroads for boxcars of the latter that are on the tracks of the former. These charges are effective only during the months of September through February, the period of greatest boxcar use. For example, the charge for a boxcar that costs from $15,000 to $17,000 and that is five years of age or younger amounts to $5.19 a day. Boxcars costing between $39,000 and $41,000 and that are five years of age or younger cost the non-owning railroad $12.98 a day. The fees or rates charged decrease as the ages of the boxcars lengthen. 49 CFR § 1036.2. This is the imposition on carriers by administrative fiat of a new financial liability. I do not believe it is within our traditional concepts of due process to allow an administrative agency to saddle anyone with a new rate, charge, or fee without a full hearing that includes the right to present oral testimony, cross-examine witnesses, and present oral argument. That is required by the Administrative Procedure Act, 5 U. S. C. § 556 (d); § 556 (a) states that § 556 applies to hearings required by § 553. Section 553 (c) provides that § 556 applies "[w]hen rules are required by statute to be made on the record after opportunity for an agency hearing." A hearing under § 1 (14) (a) of the Interstate Commerce Act fixing rates, charges, or fees is certainly adjudicatory, not legislative in the customary sense.

The question is whether the Interstate Commerce Commission procedures used in this rate case "for the submission of . . . evidence in written form" avoided prejudice to the appellees so as to comport with the requirements of the Administrative Procedure Act.[10] The Government appeals from the District Court's order [248] remanding this case to the Commission for further proceedings on the incentive per diem rates to be paid by the appellee railroads for the standard boxcars they use.

In 1966, Congress amended § 1 (14) (a) of the Interstate Commerce Act to require that the Commission investigate the use of methods of incentive compensation to alleviate any shortage of freight cars "and encourage the acquisition and maintenance of a car supply adequate to meet the needs of commerce and the national defense." 49 U. S. C. § 1 (14) (a). While the Commission was given the discretion to exempt carriers from incentive payments "in the national interest," it was denied the power to "make any incentive element applicable to any type of freight car the supply of which the Commission finds to be adequate . . . ." Ibid.

The Commission's initial investigation under this authority (31 Fed. Reg. 9240) was terminated without action because it "produced no reliable information respecting the quantum of interim incentive charge necessary to meet the statutory standards." 332 I. C. C. 11, 16. A subsequent study of boxcar supply-and-demand conditions (32 Fed. Reg. 20987) yielded data that were compiled in an interim report containing tentative charges and that were submitted to the railroads for comment. 337 I. C. C. 183. Although the Commission was admittedly uncertain whether its proposed charges would accomplish the statutory objective, id., at 191, and even though "the opportunity to present evidence and arguments" was contemplated, id., at 183, congressional impatience militated against further delay in implementing § 1 (14) (a).[11] Consequently, the Commission rejected the requests of the appellees and other railroads for further hearings and promulgated an incentive [249] per diem rate schedule for standard boxcars. 337 I. C. C. 217.

Appellees then brought this action in the District Court alleging that they were "prejudiced" within the meaning of the Administrative Procedure Act by the Commission's failure to afford them a proper hearing. 322 F. Supp. 725 (MD Fla. 1971). Seaboard argued that it had been damaged by what it alleged to be the Commission's sudden change in emphasis from specialty to unequipped boxcars and that it would lose some $1.8 million as the result of the Commission's allegedly hasty and experimental action. Florida East Coast raised significant challenges to the statistical validity of the Commission's data,[12] and also contended that its status as a terminating railroad left it with a surfeit of standard boxcars which should exempt it from the requirement to pay incentive charges.

Appellees, in other words, argue that the inadequacy of the supply of standard boxcars was not sufficiently established by the Commission's procedures. Seaboard contends that specialty freight cars have supplanted standard boxcars and Florida East Coast challenges the accuracy of the Commission's findings.

In its interim report, the commission indicated that there would be an opportunity to present evidence and arguments. See 337 I. C. C. 183, 187. The appellees could reasonably have expected that the later hearings would give them the opportunity to substantiate and elaborate the criticisms they set forth in their [250] initial objections to the interim report. That alone would not necessarily support the claim of "prejudice." But I believe that "prejudice" was shown when it was claimed that the very basis on which the Commission rested its finding was vulnerable because it lacked statistical validity or other reasoned basis. At least in that narrow group of cases, prejudice for lack of a proper hearing has been shown.

Both Long Island R. Co. v. United States, 318 F. Supp. 490 (EDNY 1970), and the present case involve challenges to the Commission's procedures establishing incentive per diem rates. In Long Island, however, the railroad pointed to no specific challenges to the Commission's findings (id., at 499), and the trial was conducted on stipulated issues involving the right to an oral hearing. Id., at 491 n. 2. Since Long Island presented no information which might have caused the Commission to reach a different result,[13] there was no showing of prejudice, and a fortiori no right to an oral hearing. In the [251] present case, by contrast, there are specific factual disputes and the issue is the narrow one of whether written submission of evidence without oral argument was prejudicial.

The more exacting hearing provisions of the Administrative Procedure Act, 5 U. S. C. §§ 556-557, are only applicable, of course, if the "rules are required by statute to be made on the record after opportunity for an agency hearing." Id., § 553 (c).

United States v. Allegheny-Ludlum Steel Corp., 406 U. S. 742, was concerned strictly with a rulemaking proceeding of the Commission for the promulgation of "car service rules" that in general required freight cars, after being unloaded, to be returned "in the direction of the lines of the road owning the cars." Id., at 743. We sustained the Commission's power with respect to these two rules on the narrow ground that they were wholly legislative. We held that § 1 (14) (a) of the Interstate Commerce Act, requiring by its terms a "hearing," "does not require that such rules `be made on the record' " within the meaning of § 553 (c). Id., at 757. We recognized, however, that the precise words "on the record" are not talismanic, but that the crucial question is whether the proceedings under review are "an exercise of legislative rulemaking" or "adjudicatory hearings." Ibid. The "hearing" requirement of § 1 (14) (a) cannot be given a fixed and immutable meaning to be applied in each and every case without regard to the nature of the proceedings.

The rules in question here established "incentive" per diem charges to spur the prompt return of existing cars and to make the acquisition of new cars financially attractive to the railroads.[14] Unlike those we considered in [252] Allegheny-Ludlum, these rules involve the creation of a new financial liability. Although quasi-legislative, they are also adjudicatory in the sense that they determine the measure of the financial responsibility of one road for its use of the rolling stock of another road. The Commission's power to promulgate these rules pursuant to § 1 (14) (a) is conditioned on the preliminary finding that the supply of freight cars to which the rules apply is inadequate. Moreover, in fixing incentive compensation once this threshold finding has been made, the Commission "shall give consideration to the national level of ownership of such type of freight car and to other factors affecting the adequacy of the national freight car supply . . . ."[15]

[253] The majority finds ICC v. Louisville & Nashville R. Co., 227 U. S. 88, "sufficiently different" as to make the opinion in that case inapplicable to the case now before us. I would read the case differently, finding a clear mandate that where, as here, ratemaking must be [254] based on evidential facts, § 1 (14) (a) requires that full hearing which due process normally entails. There we considered Commission procedures for setting aside as unreasonable, after a hearing, carrier-made rates. The Government maintained that the Commission, invested with legislative ratemaking power, but required by the Commerce Act to obtain necessary information, could act on such information as the Congress might. The Government urged that we presume that the Commission's findings were supported by such information, "even though not formally proved at the hearing." Id., at 93. We rejected the contention, holding that the right to a hearing included "an opportunity to test, explain, or refute. . . . All parties must be fully apprised of the evidence submitted or to be considered, and must be given opportunity to cross-examine witnesses, to inspect documents and to offer evidence in explanation or rebuttal." Ibid. I would agree with the District Court in Long Island R. Co., supra, at 497, that Congress was fully cognizant of our decision in Louisville & Nashville R. Co. when it first adopted the hearing requirement of § 1 (14) (a) in 1917. And when Congress debated the 1966 amendment that empowered the Commission to adopt incentive per diem rates, it had not lost sight of the importance of hearings. Questioned about the effect that incentive compensation might have on terminating lines, Mr. Staggers, Chairman of the House Committee on Interstate and Foreign Commerce and floor manager of the bill, responded: "I might say to the gentleman that this will not be put into practice until there have been full hearings before the Commission and all sides have had an opportunity to argue and present their facts on the question." 112 Cong. Rec. 10443 (emphasis added). Nor should we overlook the Commission's own interpretation of the hearing requirement in § 1 (14) (a) as it applies to this case. The Commission's order initiating [255] the rulemaking proceeding notified the parties that it was acting "under authority of Part I of the Interstate Commerce Act (49 U. S. C. § 1, et seq.); more particularly, section 1 (14) (a) and the Administrative Procedure Act (5 U. S. C. §§ 553, 556, and 557)." Clearly, the Commission believed that it was required to hold a hearing on the record.[16] This interpretation, not of the Administrative Procedure Act, but of § 1 (14) (a) of the Commission's own Act, is "entitled to great weight." United States v. American Trucking Assns., 310 U. S. 534, 549; Norwegian Nitrogen Products Co. v. United States, 288 U. S. 294, 315.

The majority, at one point, distinguishes Morgan v. United States, 304 U. S. 1 (Morgan II), on the ground that the proceedings there involved were "quasi-judicial," "and thus presumably distinct from a rulemaking proceeding such as that engaged in by the Commission here." It is this easy categorization and pigeonholing that leads the majority to find Allegheny-Ludlum of controlling significance in this case. Morgan II dealt with the "full hearing" requirement of § 310 of the Packers and Stockyards Act, 42 Stat. 166, as it related to rate-making for the purchase and sale of livestock.[17] It is true that the Court characterized the proceedings as "quasi-judicial." [256] But, the first time the case was before the Court, Morgan v. United States, 298 U. S. 468, Mr. Chief Justice Hughes noted that the "distinctive character" of the proceeding was legislative: "It is a proceeding looking to legislative action in the fixing of rates of market agencies." Id., at 479. Nevertheless, the Secretary of Agriculture was required to establish rates in accordance with the standards and under the limitations prescribed by Congress. The Court concluded: "A proceeding of this sort requiring the taking and weighing of evidence, determinations of fact based upon the consideration of the evidence, and the making of an order supported by such findings, has a quality resembling that of a judicial proceeding. Hence it is frequently described as a proceeding of quasi-judicial character. The requirement of a `full hearing' has obvious reference to the tradition of judicial proceedings . . . ." Id., at 480.

Section 1 (14) (a) of the Interstate Commerce Act bestows upon the Commission broad discretionary power to determine incentive rates. These rates may have devastating effects on a particular line. According to the brief of one of the appellees, the amount of incentive compensation paid by debtor lines amounts to millions of dollars each six-month period. Nevertheless, the courts must defer to the Commission as long as its findings are supported by substantial evidence and it has not abused its discretion. "All the more insistent is the need, when power has been bestowed so freely, that the `inexorable safeguard' . . . of a fair and open hearing be maintained in its integrity." Ohio Bell Telephone Co. v. Public Utilities Comm'n, 301 U. S. 292, 304.

Accordingly, I would hold that appellees were not afforded the hearing guaranteed by § 1 (14) (a) of the Interstate Commerce Act and 5 U. S. C. §§ 553, 556, and 557, and would affirm the decision of the District Court.

[1] Section 1 (14) (a) provides:

"The Commission may, after hearing, on a complaint or upon its own initiative without complaint, establish reasonable rules, regulations, and practices with respect to car service by common carriers by railroad subject to this chapter, including the compensation to be paid and other terms of any contract, agreement, or arrangement for the use of any locomotive, car, or other vehicle not owned by the carrier using it (and whether or not owned by another carrier), and the penalties or other sanctions for nonobservance of such rules, regulations, or practices. In fixing such compensation to be paid for the use of any type of freight car, the Commission shall give consideration to the national level of ownership of such type of freight car and to other factors affecting the adequacy of the national freight car supply, and shall, on the basis of such consideration, determine whether compensation should be computed solely on the basis of elements of ownership expense involved in owning and maintaining such type of freight car, including a fair return on value, or whether such compensation should be increased by such incentive element or elements of compensation as in the Commission's judgment will provide just and reasonable compensation to freight car owners, contribute to sound car service practices (including efficient utilization and distribution of cars), and encourage the acquisition and maintenance of a car supply adequate to meet the needs of commerce and the national defense. The Commission shall not make any incentive element applicable to any type of freight car the supply of which the Commission finds to be adequate and may exempt from the compensation to be paid by any group of carriers such incentive element or elements if the Commission finds it to be in the national interest."

[2] "§ 553. Rule making.

"(a) This section applies, according to the provisions thereof, except to the extent that there is involved—

"(1) a military or foreign affairs function of the United States; or

"(2) a matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts.

"(b) General notice of proposed rule making shall be published in the Federal Register, unless persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law. The notice shall include—

"(1) a statement of the time, place, and nature of public rule making 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.

Except when notice or hearing is required by statute, this subsection does not apply—

"(A) to interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice; or

"(B) when the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.

"(c) After notice required by this section, the agency shall give interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity for oral presentation. After consideration of the relevant matter presented, the agency shall incorporate in the rules adopted a concise general statement of their basis and purpose. When rules are required by statute to be made on the record after opportunity for an agency hearing, sections 556 and 557 of this title apply instead of this subsection.

"(d) The required publication or service of a substantive rule shall be made not less than 30 days before its effective date, except—

"(1) a substantive rule which grants or recognizes an exemption or relieves a restriction;

"(2) interpretative rules and statements of policy; or

"(3) as otherwise provided by the agency for good cause found and published with the rule.

"(e) Each agency shall give an interested person the right to petition for the issuance, amendment, or repeal of a rule."

[3] "§ 556. Hearings; presiding employees; powers and duties; burden of proof; evidence; record as basis of decision.

"(a) This section applies, according to the provisions thereof, to hearings required by section 553 or 554 of this title to be conducted in accordance with this section.

"(b) There shall preside at the taking of evidence—

"(1) the agency;

"(2) one or more members of the body which comprises the agency; or

"(3) one or more hearing examiners appointed under section 3105 of this title.

"This subchapter does not supersede the conduct of specified classes of proceedings, in whole or in part, by or before boards or other employees specially provided for by or designated under statute. The functions of presiding employees and of employees participating in decisions in accordance with section 557 of this title shall be conducted in an impartial manner. A presiding or participating employee may at any time disqualify himself. On the filing in good faith of a timely and sufficient affidavit of personal bias or other disqualification of a presiding or participating employee, the agency shall determine the matter as a part of the record and decision in the case.

"(c) Subject to published rules of the agency and within its powers, employees presiding at hearings may—

"(1) administer oaths and affirmations;

"(2) issue subpenas authorized by law;

"(3) rule on offers of proof and receive relevant evidence;

"(4) take depositions or have depositions taken when the ends of justice would be served;

"(5) regulate the course of the hearing;

"(6) hold conferences for the settlement or simplication of the issues by consent of the parties;

"(7) dispose of procedural requests or similar matters;

"(8) make or recommend decisions in accordance with section 557 of this title; and

"(9) take other action authorized by agency rule consistent with this subchapter.

"(d) Except as otherwise provided by statute, the proponent of a rule or order has the burden of proof. Any oral or documentary evidence may be received, but the agency as a matter of policy shall provide for the exclusion of irrelevant, immaterial, or unduly repetitious evidence. A sanction may not be imposed or rule or order issued except on consideration of the whole record or those parts thereof cited by a party and supported by and in accordance with the reliable, probative, and substantial evidence. A party is entitled to present his case or defense by oral or documentary evidence, to submit rebuttal evidence, and to conduct such cross-examination as may be required for a full and true disclosure of the facts. In rule making or determining claims for money or benefits or applications for initial licenses an agency may, when a party will not be prejudiced thereby, adopt procedures for the submission of all or part of the evidence in written form.

"(e) The transcript of testimony and exhibits, together with all papers and requests filed in the proceeding, constitutes the exclusive record for decision in accordance with section 557 of this title and, on payment of lawfully prescribed costs, shall be made available to the parties. When an agency decision rests on official notice of a material fact not appearing in the evidence in the record, a party is entitled, on timely request, to an opportunity to show the contrary."

[4] "§ 557. Initial decisions; conclusiveness; review by agency; submissions by parties; contents of decisions; record.

"(a) This section applies, according to the provisions thereof, when a hearing is required to be conducted in accordance with section 556 of this title.

"(b) When the agency did not preside at the reception of the evidence, the presiding employee or, in cases not subject to section 554 (d) of this title, an employee qualified to preside at hearings pursuant to section 556 of this title, shall initially decide the case unless the agency requires, either in specific cases or by general rule, the entire record to be certified to it for decision. When the presiding employee makes an initial decision, that decision then becomes the decision of the agency without further proceedings unless there is an appeal to, or review on motion of, the agency within time provided by rule. On appeal from or review of the initial decision, the agency has all the powers which it would have in making the initial decision except as it may limit the issues on notice or by rule. When the agency makes the decision without having presided at the reception of the evidence, the presiding employee or an employee qualified to preside at hearings pursuant to section 556 of this title shall first recommend a decision, except that in rule making or determining applications for initial licenses—

"(1) instead thereof the agency may issue a tentative decision or one of its responsible employees may recommend a decision; or

"(2) this procedure may be omitted in a case in which the agency finds on the record that due and timely execution of its functions imperatively and unavoidably so requires.

"(c) Before a recommended, initial, or tentative decision, or a decision on agency review of the decision of subordinate employees, the parties are entitled to a reasonable opportunity to submit for the consideration of the employees participating in the decisions—

"(1) proposed findings and conclusions; or

"(2) exceptions to the decisions or recommended decisions of subordinate employees or to tentative agency decisions: and

"(3) supporting reasons for the exceptions or proposed findings or conclusions.

"The record shall show the ruling on each finding, conclusion, or exception presented. All decisions, including initial, recommended, and tentative decisions, are a part of the record and shall include a statement of—

"(A) findings and conclusions, and the reasons or basis therefor, on all the material issues of fact, law, or discretion presented on the record; and

"(B) the appropriate rule, order, sanction, relief, or denial thereof."

[5] The Court of Appeals for the Ninth Circuit reached a result similar to that which we reach, in Pacific Coast European Conference v. United States, 350 F. 2d 197 (1965). Construing the authority of the Federal Maritime Commission under § 14b of the Shipping Act, 1916, as amended, 46 U. S. C. § 813a, that court observed that "[t]he authority of the Commission to permit such contracts was limited by requiring that the contracts in eight specified respects meet the congressional judgment as to what they should include." 350 F. 2d, at 201. Notwithstanding these explicit directions that particular factors be considered by the Commission in reaching its decision, the court held that the statute's requirements of "notice and hearing" were not sufficient to bring into play the provisions of §§ 556 and 557 of the Administrative Procedure Act.

[6] Both district court opinions were handed down before our decision in United States v. Allegheny-Ludlum Steel Corp., 406 U. S. 742 (1972), and it appears from the record before us that the Government in those courts did not really contest the proposition that the Commission's proceedings were governed by the stricter standards of §§ 556 and 557.

The dissenting opinion of MR. JUSTICE DOUGLAS relies in part on indications by the Commission that it proposed to apply the more stringent standards of §§ 556 and 557 of the Administrative Procedure Act to these proceedings. This Act is not legislation that the Interstate Commerce Commission, or any other single agency, has primary responsibility for administering. An agency interpretation involving, at least in part, the provisions of that Act does not carry the weight, in ascertaining the intent of Congress, that an interpretation by an agency "charged with the responsibility" of administering a particular statute does. See United States v. American Trucking Assns., 310 U. S. 534 (1940); Norwegian Nitrogen Products Co. v. United States, 288 U. S. 294 (1933). Moreover, since any agency is free under the Act to accord litigants appearing before it more procedural rights than the Act requires, the fact that an agency may choose to proceed under §§ 556 and 557 does not carry the necessary implication that the agency felt it was required to do so.

[7] See 1 K. Davis, Administrative Law Treatise, § 6.05 (1958).

[8] The Interstate Commerce Act was amended in May 1966; the 1946 Administrative Procedure Act was repealed by Act of Sept. 6, 1966, 80 Stat. 378, which revised, codified, and enacted Title 5 of the United States Code, but the section detailing the procedures to be used in rulemaking is substantially similar to the original provision in the 1946 Administrative Procedure Act. See § 4 (b), 60 Stat. 238.

[9] This same language was cited with approval by the Court in Willner v. Committee on Character, 373 U. S. 96, 105 (1963), in which it was held that an applicant for admission to the bar could not be denied such admission on the basis of ex parte statements of others whom he had not been afforded an opportunity to cross-examine.

[10] 5 U. S. C. § 556 (d) provides that a "sanction may not be imposed" without a full hearing, including cross-examination. But § 556 (d) makes an exception, which I submit is not relevant here. It provides: "In rule making . . . an agency may, when a party will not be prejudiced thereby, adopt procedures for the submission of all or part of the evidence in written form." (Emphasis added.)

[11] See Hearing before the Subcommittee on Surface Transportation of the Senate Committee on Commerce, 91st Cong., 1st Sess. (1969).

[12] Florida East Coast argues, for example, that the Commission's finding of a boxcar shortage may be attributable to a variety of sampling or definitional errors, asserting that it is unrealistic to define boxcar deficiencies in such a manner as "to show as a `deficiency' the failure to supply a car on the day requested by the shipper no matter when the request was received." The Government's contention that a 24-hour standard was not used seems unresponsive to this argument. See 337 I. C. C. 217, 221.

[13] In the Long Island case the court, speaking through Judge Friendly, said:

"Whether there was to be an oral hearing or not, the Long Island's first job was to examine the basic data and find this out. Nothing stood in its way. . . . If, on examining the data, the Long Island had pointed to specifics on which it needed to cross-examine or present live rebuttal testimony and the Commission had declined to grant an oral hearing, we would have a different case. Instead the Long Island's request for an oral hearing was silent as to any respect in which the Commission's disclosure of greater detail or cross-examination of the Commission's staff was needed to enable it to mount a more effective argument against the Commission's proposal. The last sentence of § 556 (d) would be deprived of all meaning if this were held sufficient to put the agency on notice that `prejudice' would result from the denial of an oral hearing. Even taking into account the further representations that have been made to us, we fail to see that prejudice has been established." 318 F. Supp. 490, 499.

[14] Title 49 CFR § 1036.1 provides:

"Application.—Each common carrier by railroad subject to the Interstate Commerce Act shall pay to the owning railroads, including the owning railroads of Canada, the additional per diem charges set forth in § 1036.2 on all boxcars shown below, . . . while in the possession of nonowning railroads and subject to per diem rules. These charges are in addition to all other per diem charges currently in effect or prescribed. Mexican-owned cars are exempt from the operation of these rules. The rules of this part shall apply regardless of whether the foregoing boxcars are in intrastate, interstate, or foreign commerce."

As I have noted, § 1036.2 contains a schedule of per diem rates or fees for the use of another's boxcars which have been shunted onto its tracks, the rates or fees being definite or precise and controlled by two variables: the cost of the boxcars and the ages of the boxcars. These rates or fees, according to the record, amount to millions of dollars a year.

[15] The Commission discusses the critical factual issues to be resolved in fixing incentive compensation rates under § 1 (14) (a) in Incentive Per Diem Charges, 332 I. C. C. 11, 14-15:

"Before an incentive element, either interim or long-term, can be added to the per diem charge for the use of any particular type of freight car, we are required to give consideration to the national level of ownership of that type of car and to other factors affecting the adequacy of the national freight car supply. We have observed that the adequacy of the national freight car fleet depends upon the interplay of a number of factors, none of which can be said to be of superior importance. Further, since the effect of an incentive charge must be produced over a future period, consideration must be given to possible changes in these factors. In recent years many innovations and improvements have taken place in car design and operation. In the transportation of many commodities the standard boxcar has been replaced by cars capable of transporting greater loads with substantially less damage. In the transportation of grains, railroads are converting more and more to the use of large covered hopper cars. Shippers of lumber and plywood have found modern cars designed to facilitate transportation of their products increasingly desirable. At the same time, many of these cars are adaptable to the transportation of other commodities when not needed in the particular trade for which they were designed. In large part, the special service boxcars, covered hoppers and flatcars of various types handle traffic which formerly moved in general service boxcars. The same is true to some extent with respect to refrigerator cars. Their larger size and, with respect to the flatcars in trailer-on-flatcar (TOFC) service, their more rapid turnaround, enables them to provide service which would require many more of the general service boxcars which they replaced.

"Valid conclusions as to the types of cars, the construction of which for future use is to be encouraged by application of either an interim or long-range incentive charge, and which must be found to be in inadequate supply pursuant to the statutory requirement, necessarily require consideration of the extent to which the transportation service they perform is or can also be provided by cars of other types. Such consideration requires a thorough analysis of the services currently desired by the shipping public and those reasonably to be anticipated in the future. An overall, nationwide review of traffic and service demands and trends must precede any valid determination of the existing or prospective national requirements for freight cars of particular types. It is quite obvious that application of an incentive charge which served to encourage the acquisition of cars not adaptable to efficient provision of needed service over their normal lifetime would not be in the national interest. Shipper need, demand and acceptance with respect to future equipment is a significant factor."

[16] In its final report, the Commission apparently still believed that its proceedings had to comply with the provisions of § 556 of the Administrative Procedure Act. The report stated that the parties had been granted a hearing in accordance with those provisions. 337 I. C. C., at 219.

[17] Morgan II considered in some depth the parameters of a "full hearing." The majority takes the position that the case is inapposite because the hearings provided in this case do not "suffer from the defect found to be fatal in Morgan"—i. e., the parties were "fairly advised" of the scope and substance of the Commission proceedings. In Morgan II, however, there was no question that a "full hearing" included the right to present oral testimony and argument. 304 U. S. 1, 18-20.

2.2.3.2.1.1.3 Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council, Inc. 2.2.3.2.1.1.3 Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council, Inc.

VERMONT YANKEE NUCLEAR POWER CORP. v. NATURAL RESOURCES DEFENSE COUNCIL, INC., et al.

No. 76-419.

Argued November 28,1977

Decided April 3, 1978*

*521Rehnquist, J., delivered the opinion of the Court, in which all other Members joined except Blackmun and Powell, JJ., who took no part in the consideration or decision of the cases.

*522Thomas G. Dignan, Jr., argued the cause for petitioner in No. 76,-419. With him on the briefs were G. Marshall Moriarty, William L. Patton, and B. K. Gad III. Charles A. Horsky argued the cause for petitioner in No. 76-528. With him on the briefs was Harold F. Beis.

Deputy Solicitor General Wallace argued the cause for the federal respondents in support of petitioners in both cases pursuant to this Court’s Rule 21 (4). On the briefs were Solicitor General McCree, Acting Assistant Attorney General Liotta, Harriet S. Shapiro, Edmund B. Clark, John J. Zimmerman, Peter L. Strauss, and Stephen F. Eilperin. Henry V. Nickel and George C. Freeman, Jr., filed a brief for respondents Baltimore Gas & Electric Co. et al. in support of petitioner in No. 76-419 pursuant to Rule 21 (4).

Bichard E. Ayres argued the cause and filed briefs for respondents in No. 76-419. Myron M. Cherry argued the cause for the nonfederal respondents in No. 76-528. With him on the brief was Peter A. Flynn.

*523Mr. Justice Rehnquist

delivered the opinion of the Court.

In 1946, Congress enacted the Administrative Procedure Act, which as we have noted elsewhere was not only “a new, basic and comprehensive regulation of procedures in many agencies,” Wong Yang Sung v. McGrath, 339 U. S. 33 (1950), but was also a legislative enactment which settled “long-continued and hard-fought contentions, and enacts a formula upon which opposing social and political forces have come to rest.” Id., at 40. Section 4 of the Act, 5 U. S. C. § 553 (1976 ed.), dealing with rulemaking, requires in subsection (b) that *524“notice of proposed rule making shall be published in the Federal Register . . . describes the contents of that notice, and goes on to require in subsection (c) that after the notice the agency “shall give interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity for oral presentation. After consideration of the relevant matter presented, the agency shall incorporate in the rules adopted a concise general statement of their basis and purpose.” Interpreting this provision of the Act in United States v. AlleghenyLudlum Steel Corp., 406 U. S. 742 (1972), and United States v. Florida East Coast R. Co., 410 U. S. 224 (1973), we held that generally speaking this section of the Act established the maximum procedural requirements which Congress was willing to have the courts impose upon agencies in conducting rulemaking procedures.1 Agencies are free to grant additional procedural rights in the exercise of their discretion, but reviewing courts are generally not free to impose them if the agencies have not chosen to grant them. This is not to say necessarily that there are no circumstances- which would ever justify a court in overturning agency action because of a failure to employ procedures beyond those required by the statute. But such circumstances, if they exist, are extremely rare.

Even apart from the Administrative Procedure Act this Court has for more than four decades emphasized that the formulation of procedures was basically to be left within the discretion of the agencies to which Congress had confided the responsibility for substantive judgments. In FCC v. Schreiber, 381 U. S. 279, 290 (1965), the Court explicated *525this principle, describing it as “an outgrowth of the congressional determination that administrative agencies and administrators will be familiar with the industries which they regulate and will be in a better position than federal courts or Congress itself to design procedural rules adapted to the peculiarities of the industry and the tasks of the agency involved.” The Court there relied on its earlier ease of FCC v. Pottsville Broadcasting Co., 309 U. S. 134, 138 (1940), where it had stated that a provision dealing with the conduct of business by the Federal Communications Commission delegated to the Commission the power to resolve “subordinate questions of procedure . . . [such as] the scope of the inquiry, whether applications should be heard contemporaneously or successively, whether parties should be allowed to intervene in one another’s proceedings, and similar questions.”

It is in the light of this background of statutory and decisional law that we granted certiorari to review two judgments of the Court of Appeals for the District of Columbia Circuit because of our concern that they had seriously misread or misapplied this statutory and decisional law cautioning reviewing courts against engrafting their own notions of proper procedures upon agencies entrusted with substantive functions by Congress. 429 U. S. 1090 (1977). We conclude that the Court of Appeals has done just that in these cases, and we therefore remand them to it for further proceedings. We also find it necessary to examine the Court of Appeals’ decision with respect to agency action taken after full adjudicatory hearings. We again conclude that the court improperly intruded into the agency’s decisionmaking process, making it necessary for us to reverse and remand with respect to- this part of the cases also.

I

A

Under the Atomic Energy Act of 1954, 68 Stat. 919, as amended, 42 U. S. C. § 2011 et seq., the Atomic Energy Comm*526ission2 was given broad regulatory authority over the development of nuclear energy. Under the terms of the Act, a utility seeking to construct and operate a nuclear power plant must obtain a separate permit or license at both the construction and the operation stage of the project. See 42 U. S. C. §§ 2133, 2232, 2235, 2239. In order to obtain the construction permit, the utility must file a preliminary safety analysis report, an environmental report, and certain information regarding the antitrust implications of the proposed project. See 10 CFR §§2.101, 50.30 (f), 50.33a, 50.34 (a) (1977). This application then undergoes exhaustive review by the Commission’s staff and by the Advisory Committee on Reactor Safeguards (ACRS), a group of distinguished experts in the field of atomic energy. Both groups submit to the Commission their own evaluations, which then become part of the record of the utility’s application.3 See 42 U. S. C. §§ 2039, 2232 (b). The Commission staff also undertakes the review required by the National Environmental Policy Act of 1969 (NEPA), 83 Stat. 852, 42 U. S. C. §4321 et seq., and prepares a draft environmental impact statement, which, after being circulated for comment, 10 CFR §§ 51.22-51.25 (1977), is revised and becomes a final environmental impact statement. § 51.26. Thereupon a three-member Atomic Safety and Licensing Board conducts a public adjudicatory hearing, 42 U. S. C. § 2241, and reaches a decision4 which can be *527appealed to the Atomic Safety and Licensing Appeal Board, and currently, in the Commission’s discretion, to the Commission itself. 10 CFR §§ 2.714, 2.721, 2.786, 2.787 (1977). The final agency decision may be appealed to the courts of appeals. 42 U. S. C. § 2239; 28 U. S. C. § 2342. The same sort of process occurs when the utility applies for a license to operate the plant, 10 CFR § 50.34 (b) (1977), except that a hearing need only be held in contested cases and may be limited to the matters in controversy. See 42 U. S. C. § 2239 (a); 10 CFR §2.105 (1977); 10 CFR pt. 2, App. A, V (f) (1977).5

These cases arise from two separate decisions of the Court of Appeals for the District of Columbia Circuit. In the first, the court remanded a decision of the Commission to grant a license to petitioner Vermont Yankee Nuclear Power Corp. to operate a nuclear power plant. Natural Resources Defense Council v. NRC, 178 U. S. App. D. C. 336, 547 F. 2d 633 (1976). In the second, the court remanded a decision of that same agency to grant a permit to petitioner Consumers Power Co. to construct two pressurized water nuclear reactors to generate electricity and steam. Aeschliman v. NRC, 178 U. S. App. D. C. 325, 547 F. 2d 622 (1976).

B

In December 1967, after the mandatory adjudicatory hearing and necessary review, the Commission granted petitioner Vermont Yankee a permit to build a nuclear power plant in Vernon, Vt. See 4 A. E. C. 36 (1967). Thereafter, Vermont Yankee applied for an operating license. Respondent Natural Resources Defense Council (NRDC) objected to the granting *528of a license, however, and therefore a hearing on the application commenced on August 10, 1971. Excluded from consideration at the hearings, over NRDC’s objection, was the issue of the environmental effects of operations to reprocess fuel or dispose of wastes resulting from the reprocessing operations.6 This ruling was affirmed by the Appeal Board in June 1972.

In November 1972, however, the Commission, making specific reference to the Appeal Board’s decision with respect to the Vermont Yankee license, instituted rulemaking proceed-' ings “that would specifically deal with the question of consideration of environmental effects associated with the uranium fuel cycle in the individual cost-benefit analyses for light water cooled nuclear power reactors.” App. 352.' The notice of proposed rulemaking offered two alternatives, both predicated on a report prepared by the Commission’s staff entitled Environmental Survey of the Nuclear Euel Cycle. The first would have required no quantitative evaluation of the environmental hazards of fuel reprocessing or disposal because the Environmental Survey had found them to be slight. The second would have specified numerical values for the environmental impact of this part of the fuel cycle, which values would then be incorporated into a table, along with the other relevant factors, to determine the overall cost-benefit balance for each operating license. See id., at 356-357.

Much of the controversy in this case revolves around the *529procedures used in the rulemaking hearing which commenced in February 1973. In a supplemental notice of hearing the Commission indicated that while discovery or cross-examination would not be utilized, the Environmental Survey would be available to the public before the hearing along with the extensive background documents cited therein. All participants would be given a reasonable opportunity to present their position and could be represented by counsel if they so desired. Written and, time permitting, oral statements would be received and incorporated into the record. All persons giving oral statements would be subject to questioning by the Commission. At the conclusion of the hearing, a transcript would be made available to the public and the record would remain open for 30 days to allow the filing of supplemental written statements. See generally id., at 361-363. More than 40 individuals and organizations representing a wide variety of interests submitted written comments. On January 17, 1973, the Licensing Board held a planning session to schedule the appearance of witnesses and to discuss methods for compiling a record. The hearing was held on February 1 and 2, with participation by a number of groups, including the Commission’s staff, the United States Environmental Protection Agency, a manufacturer of reactor equipment, a trade association from the nuclear industry, a group of electric utility companies, and a group called Consolidated National Intervenors which represented 79 groups and individuals including respondent NRDC.

After the hearing, the Commission’s staff filed a supplemental document for the purpose of clarifying and revising the Environmental Survey. Then the Licensing Board forwarded its report to the Commission without rendering any decision. The Licensing Board identified as the principal procedural question the propriety of declining to use full formal adjudicatory procedures. The major substantive issue was the technical adequacy of the Environmental Survey.

*530In April 1974, the Commission issued a rule which adopted the second of the two proposed alternatives described above. The Commission also approved the procedures used at the hearing,7 and indicated that the record, including the Environmental Survey, provided an “adequate data base for the regulation adopted.” Id., at 392. Finally, the Commission ruled that to the extent the rule differed from the Appeal Board decisions in Vermont Yankee “those decisions have no further precedential significance,” id., at 386, but that since “the environmental effects of the uranium fuel cycle have been shown to be relatively insignificant, ... it is unnecessary to apply the amendment to applicant’s environmental reports submitted prior to its effective date or to Final Environmental Statements for which Draft Environmental Statements have been circulated for comment prior to the effective date,” id., at 395.

Respondents appealed from both the Commission’s adoption of the rule and its decision to grant Vermont Yankee’s license to the Court of Appeals for the District of Columbia Circuit.

C

In January 1969, petitioner Consumers Power Co. applied for a permit to construct two nuclear reactors in Midland, *531Mich. Consumers Power’s application was examined by the Commission’s staff and the ACRS. The ACRS issued reports which discussed specific problems and recommended solutions. It also made reference to “other problems” of a more generic nature and suggested that efforts should be made to resolve them with respect to these as well as all other projects.8 Two groups, one called Saginaw and another called Mapleton, intervened and opposed the application.9 Saginaw filed with the Board a number of environmental contentions, directed over 300 interrogatories to the ACRS, attempted to depose the chairman of the ACRS, and requested discovery of various ACRS documents. The Licensing Board denied the various discovery requests directed to the ACRS. Hearings were then held on numerous radiological health and safety issues.10 Thereafter, the Commission’s staff issued a draft *532environmental impact statement. Saginaw submitted 119 environmental contentions which were both comments on the proposed draft statement and a statement of Saginaw’s position in the upcoming hearings. The staff revised the statement and issued a final environmental statement in March 1972. Further hearings were then conducted during May and June 1972. Saginaw, however, choosing not to appear at or participate in these latter hearings, indicated that it had “no conventional findings of fact to set forth” and had not “chosen to search the record and respond to this proceeding by submitting citations of matters which we believe were proved or disproved.” See App. 190 n. 9. But the Licensing Board, recognizing its obligations to “independently consider the final balance among conflicting environmental factors in the record,” nevertheless treated as contested those issues “as to which intervenors introduced affirmative evidence or engaged in substantial cross examination.” Id., at 205, 191.

At issue now are 17 of those 119 contentions which are claimed to raise questions of “energy conservation.”', The Licensing Board indicated that as far as appeared from the record, the demand for the plant was made up, of normal industrial and residential use. Id., at 207. It went on to state that it was “beyond our province to inquire into whether the customary uses being made of electricity in our society are ‘proper’ or ‘improper.’ ” Ibid. With respect to claims that Consumers Power stimulated demand by its advertising the Licensing Board indicated that “[n]o evidence was offered on this point and absent some evidence that Applicant is creating abnormal demand, the Board did not consider the *533question.” Id., at 207-208. The Licensing Board also' failed to consider the environmental effects of fuel reprocessing or disposal of radioactive wastes. The Appeal Board ultimately-affirmed the Licensing Board’s grant of a construction permit and the Commission declined to further review the matter.

At just about the same time, the Council on Environmental Quality revised its regulations governing the preparation of environmental impact statements. 38 Fed. Reg. 20550 (1973). The regulations mentioned for the first time the necessity of considering in impact statements energy conservation as one of the alternatives to a proposed project. The new guidelines were to apply only to final impact statements filed after January 28, 1974. Id., at 20557. Thereafter, on November 6, 1973, more than a year after the record had been closed in the Consumers Power case and while that case was pending before the Court of Appeals, the Commission ruled in another case that while its statutory power to compel conservation was not clear, it did not follow that all evidence of energy conservation issues should therefore be barred at the threshold. In re Niagara Mohawk Power Corp., 6 A. E. C. 995 (1973). Saginaw then moved the Commission to clarify its ruling and reopen the Consumers Power proceedings.

In a lengthy opinion, the Commission declined to reopen the proceedings. The Commission first ruled it was required to consider only energy conservation alternatives which 'were “ ‘reasonably available,’ ” would in their aggregate effect curtail demand for electricity to a level at which the proposed facility would not be needed, and were susceptible of a reasonable degree of proof. App. 332. It then determined, after a thorough examination of the record, that not all of Saginaw’s contentions met these threshold tests. Id., at 334-340. It further determined that the Board had been willing at all times to take evidence on the other contentions. Saginaw had simply failed to present any such evidence. The *534Commission further criticized Saginaw for its total disregard of even those minimal procedural formalities necessary to give the Board some idea of exactly what was at issue. The Commission emphasized that “[particularly in these circumstances, Saginaw’s complaint that it was not granted a hearing on alleged energy conservation issues comes with ill grace.”11 Id., at 342. And in response to Saginaw’s contention that regardless of whether it properly raised the issues, the Licensing Board must consider all environmental issues, the Commission basically agreed, as did the Board itself, but further reasoned that the Board must have some workable procedural rules and these rules

“in this setting must take into account that energy conservation is a novel and evolving concept. NEPA 'does not require a “crystal ball” inquiry.’ Natural Resources Defense Council v. Morton, [148 U. S. App. D. C. 5, 15, 458 F. 2d 827, 837 (1972) ]. This consideration has led us to hold that we will not apply Niagara retroactively. As we gain experience on a case-by-case basis and hopefully, feasible energy conservation techniques emerge, the applicant, staff, and licensing boards will have obligations to develop an adequate record on these issues in appropriate cases, whether or not they are raised by intervenors.
“However, at this emergent stage of energy conservation principles, intervenors also have their responsibilities. They must state clear and reasonably specific energy conservation contentions in a timely fashion. Beyond that, they have a burden of coming forward with some *535affirmative showing if they wish to have these novel contentions explored further.”12 Id., at 344 (footnotes omitted).

Respondents then challenged the granting of the construction permit in the Court of Appeals for the District of Columbia Circuit.

D

With respect to the challenge of Vermont Yankee’s license, the court first ruled that in the absence of effective rulemaking proceedings,13 the Commission must deal with the environmental impact of fuel reprocessing and disposal in individual licensing proceedings. 178 U. S. App. D. C., at 344, 547 P. 2d, at 641. The court then examined the rulemaking proceedings and, despite the fact that it appeared that the agency employed all the procedures required by 5 U. S. C. § 553 (1976 ed.) and more, the court determined the proceedings to be inadequate and overturned the rule. Accordingly, the Commission’s determination with respect to Vermont Yankee’s license was also remanded for further proceedings.14 178 U. S. App. D. C., at 358, 547 P. 2d, at 6.55.

*536With respect to the permit to Consumers Power, the court first held that the environmental impact statement for construction of the Midland reactors was fatally defective for *537failure to examine energy conservation as an alternative to a plant of this size. 178 U. S. App. D. C., at 331,547F. 2d, at 628. The uourt also thought the report by ACRS was inadequate, although it did not agree that discovery from individual ACRS members was the proper way to obtain further explication of the report. Instead, the court held that the Commission should have sua sponte sent the report back to the ACRS for further elucidation of the “other problems” and their resolution. Id., at 335, 547 F. 2d, at 632. Finally, the court ruled that the fuel cycle issues in this case were controlled by NRDC v. NRC, discussed above, and remanded for appropriate consideration of waste disposal and other unaddressed fuel cycle issues as described in that opinion. 178 U. S. App. D. C., at 335, 547 F. 2d, at 632.

*538II

A

Petitioner Vermont Yankee first argues that the Commission may grant a license to operate a nuclear reactor without any consideration of waste disposal and fuel reprocessing. We find, however, that this issue is no longer presented by the record in this case. The Commission does not contend that it is not required to consider the environmental impact of the spent fuel processes when licensing nuclear power plants. Indeed, the Commission has publicly stated subsequent to the Court of Appeals’ decision in the instant case that consideration of the environmental impact of the back end of the fuel cycle in “the environmental impact statements for individual LWR’s [light-water power reactors] would represent a full and candid assessment of costs and benefits consistent with the legal requirements and spirit of NEPA.” 41 Fed. Reg. 45849 (1976). Even prior to the Court of Appeals’ decision the Commission implicitly agreed that it would consider the back end of the fuel cycle in all licensing proceedings: It indicated that it was not necessary to reopen prior licensing proceedings because “the environmental effects of the uranium fuel cycle have been shown to be relatively insignificant,” and thus incorporation of those effects into the cost-benefit analysis would not change the results of such licensing proceedings. App. 395. Thus, at this stage of the proceedings the only question presented for review in this regard is whether the Commission may consider the environmental impact of the fuel processes when licensing nuclear reactors. In addition to the weight which normally attaches to the agency’s determination of such a question, other reasons support the Commission’s conclusion.

Vermont Yankee will produce annually well over 100 pounds of radioactive wastes, some of which will be highly toxic. The Commission itself, in a pamphlet published by its *539information office, clearly recognizes that these wastes “pose the most severe potential health hazard . . . U. S. Atomic Energy Commission, Radioactive Wastes 12 (1965). Many of these substances must be isolated for anywhere from 600 to hundreds of thousands of years. It is hard to argue that these wastes do not constitute “adverse environmental effects which cannot be avoided should the proposal be implemented,” or that by operating nuclear power plants we are not making “irreversible and irretrievable commitments of resources.” 42 U. S. C. §§ 4332 (2) (C) (ii), (v). As the Court of Appeals recognized, the environmental impact of the radioactive wastes produced by a nuclear power plant is analytically indistinguishable from the environmental effects of “the stack gases produced by a coal-burning power plant.” 178 U. S. App. D. C., at 341, 547 F. 2d, at 638. For these reasons we hold that the Commission acted well within its statutory authority when it considered the back end of the fuel cycle in individual licensing proceedings.

B

We next turn to the invalidation of the fuel cycle rule. But before determining whether the Court of Appeals reached a permissible result, we must determine exactly what result it did reach, and in this case that is no mean feat. Vermont Yankee argues that the court invalidated the rule because of the inadequacy of the procedures employed in the proceedings. Brief for Petitioner in No. 76-419, pp. 30-38. Respondents, on the other hand, labeling petitioner’s view of the decision a “straw man,” argue to this Court that the court merely held that the record was inadequate to enable the reviewing court to determine whether the agency had fulfilled its statutory obligation. Brief for Respondents in No. 76 — A19, pp. 28-30, 40. But we unfortunately have not found the parties’ characterization of the opinion to be entirely reliable; it appears here, as in Orloff v. Willoughby, 345 U. S. 83, 87 (1953), that *540“in this Court the parties changed positions as nimbly as if dancing a quadrille.” 15

After a thorough examination of the opinion itself, we con-*541elude that while the matter is not entirely free from doubt, the majority of the Court of Appeals struck down the rule because of the perceived inadequacies of the procedures employed in the rulemaking proceedings. The court first determined the intervenors’ primary argument to be “that the decision to preclude 'discovery or cross-examination’ denied them a meaningful opportunity to participate in the proceedings as guaranteed by due process.” 178 U. S. App. D. C., at 346, 547 F. 2d, at 643. The court then went on to frame the issue for decision thus:

“Thus, we are called upon to decide whether the procedures provided by the agency were sufficient to ventilate the issues.” Ibid., 547 F. 2d, at 643.

The court conceded that absent extraordinary circumstances it is improper for a reviewing court to prescribe the procedural format an agency must follow, but it likewise clearly thought it entirely appropriate to “scrutinize the record as a whole to insure that genuine opportunities to participate in a meaningful way were provided . . . .” Id., at 347, 547 F. 2d, at 644. The court also refrained from actually ordering the agency to follow any specific procedures, id., at 356-357, 547 F. 2d, at 653-654, but there is little doubt in our minds that *542the ineluctable mandate of the court’s decision is that the procedures afforded during the hearings were inadequate. This conclusion is particularly buttressed by the fact that after the court examined the record, particularly the testimony of Dr. Pittman, and declared it insufficient, the court proceeded to discuss at some length the necessity for further procedural devices or a more “sensitive” application of those devices employed during the proceedings. Ibid. The exploration of the record and the statement regarding its insufficiency might initially lead one to conclude that the court was only examining the sufficiency of the evidence, but the remaining portions of the opinion dispel any doubt that this was certainly not the sole or even the principal basis of the decision. Accordingly, we feel compelled to address the opinion on its own terms, and we conclude that it was wrong.

In prior opinions we have intimated that even in a rule-making proceeding when an agency is making a “ 'quasi-judicial’ ” determination by which a very small number of persons are “ 'exceptionally affected, in each case upon individual grounds,’ ” in some circumstances additional procedures may be required in order to afford the aggrieved individuals due process.16 United States v. Florida East Coast R. Co., 410 U. S., at 242, 245, quoting from Bi-Metallic Investment Co. v. State Board of Equalization, 239 U. S. 441, 446 (1915). It might also be true, although we do not think the issue is presented in this case and accordingly do not decide it, that a totally unjustified departure from well-settled agency procedures of long standing might require judicial correction.17

*543But this much is absolutely clear. Absent constitutional constraints or extremely compelling circumstances the “administrative agencies ‘should be free to fashion their own rules of procedure and to pursue methods of inquiry capable of permitting them to discharge their multitudinous duties.’ ” FCC v. Schreiber, 381 U. S., at 290, quoting from FCC v. Pottsville *544Broadcasting Co., 309 U. S., at 143. Indeed, our cases could hardly be more explicit in this regard. The Court has, as we noted in FCC v. Schreiber, supra, at 290, and n. 17, upheld this principle in a variety of applications,18 including that case where the District Court, instead of inquiring into the validity of the Federal Communications Commission’s exercise of its rulemaking authority, devised procedures to be followed by the agency on the basis of its conception of how the public and private interest involved could best be served. Examining §4 (j) of the Communications Act of 1934, the Court unanimously held that the Court of Appeals erred in upholding that action. And the basic reason for this decision was the Court of Appeals’ serious departure from the very basic tenet of administrative law that agencies should be free to fashion their own rules of procedure.

We have continually repeated this theme through the years, most recently in FPC v. Transcontinental Gas Pipe Line Corp., 423 U. S. 326 (1976), decided just two Terms ago. In that case, in determining the proper scope of judicial review of agency action under the Natural Gas Act, we held that while a court may have occasion to remand an agency decision because of the inadequacy of the record, the agency should normally be allowed to “exercise its administrative discretion in deciding how, in light of internal organization considerations, it may best proceed to develop the needed evidence and how its prior decision should be modified in light of such evidence as develops.” Id., at 333. We went on to emphasize:

“At least in the absence of substantial justification for doing otherwise, a reviewing court may not, after determining that additional evidence is requisite for adequate *545review, proceed by dictating to the agency the methods, procedures, and time dimension of the needed inquiry and ordering the results to be reported to the court without opportunity for further consideration on the basis of the new evidence by the agency. Such a procedure clearly runs the risk of ‘propel [ling] the court into the domain which Congress has set aside exclusively for the administrative agency.’ SEC v. Chenery Corp., 332 U. S. 194, 196 (1947).” Ibid.

Respondent NRDC argues that § 4 of the Administrative Procedure Act, 5 U. S. C. § 553 (1976 ed.), merely establishes lower procedural bounds and that a court may routinely require more than the minimum when an agency’s proposed rule addresses complex or technical factual issues or “Issues of Great Public Import.” Brief for Respondents in No. 76-419, p. 49. We have, however, previously shown that our decisions reject this view. Supra, at 542 to this page. We also think the legislative history, even the part which it cites, does not bear out its contention. The Senate Report explains what eventually became § 4 thus:

“This subsection states . . . the minimum requirements of public rule making procedure short of statutory hearing. Under it agencies might in addition confer with industry advisory committees, consult organizations, hold informal ‘hearings,’ and the like. Considerations of practicality, necessity, and public interest . . . will naturally govern the agency’s determination of the extent to which public proceedings should go. Matters of great import, or those where the public submission of facts will be either useful to the agency or a protection to the public, should naturally be accorded more elaborate public procedures.” S. Rep. No. 752, 79th Cong., 1st Sess., 14-15 (1945).

The House Report is in complete accord:

“ ‘[U]niformity has been found possible and desirable for all classes of both equity and law actions in the courts .... *546It would seem to require no argument to demonstrate that the administrative agencies, exercising but a fraction of the judicial power may likewise operate under uniform rules of practice and procedure and that they may be required to remain within the terms of the law as to the exercise of both quasi-legislative and quasi-judicial power/
“The bill is an outline of minimum essential rights and procedures. ... It affords private parties a means of knowing what their rights are and how they may protect them ....
"... [The bill contains] the essentials of the different forms of administrative proceedings . . . H. R. Rep. No. 1980, 79th Cong., 2d Sess., 9,16-17 (1946).

And the Attorney General’s Manual on the Administrative Procedure Act 31, 35 (1947), a contemporaneous interpretation previously given, some deference by this Court because of the role played by the Department of Justice in drafting the legislation,19 further confirms that view. In short, all of this leaves little doubt that Congress intended that the discretion of the agencies and not that of the courts be exercised in determining when extra procedural devices should be employed.

There are compelling reasons for construing § 4 in this manner. In the first place, if courts continually review agency proceedings to determine whether the agency employed procedures which were, in the court’s opinion, perfectly tailored to reach what the court perceives to be the “best” or “correct” result, judicial review would be totally unpredictable. And the agencies, operating under this vague injunction to employ *547the “best” procedures and facing the threat of reversal if they did not, would undoubtedly adopt full adjudicatory procedures in every instance. Not only would this totally disrupt the statutory scheme, through which Congress enacted “a formula upon which opposing social and political forces have come to rest,” Wong Yang Sung v. McGrath, 339 U. S., at 40, but all the inherent advantages of informal rulemaking would be totally lost.20

Secondly, it is obvious that the court in these cases reviewed the agency’s choice of procedures on the basis of the record actually produced at the hearing, 178 U. S. App. D. C., at 347, 547 F. 2d, at 644, and not on the basis of the information available to the agency when it made the decision to structure the proceedings in a certain way. This sort of Monday morning quarterbacking not only encourages but almost compels the agency to conduct all rulemaking proceedings with the full panoply of procedural devices normally associated only with adjudicatory hearings.

Finally, and perhaps most importantly, this sort of review fundamentally misconceives the nature of the standard for judicial review of an agency rule. The court below uncritically assumed that additional procedures will automatically result in a more adequate record because it will give interested parties more of an opportunity to participate in and contribute to the proceedings. But informal rulemaking need not be based solely on the transcript of a hearing held before an agency. Indeed, the agency need not even hold a formal hearing. See 5 U. S. C. § 553 (c) (1976 ed.). Thus, the adequacy of the “record” in this type of proceeding is not correlated directly to the type of procedural devices employed, but .rather turns on whether the agency has followed the statutory mandate of the Administrative Procedure Act or other relevant statutes. If the agency is compelled to sup*548port the rule which it ultimately adopts with the type of record produced only after a full adjudicatory hearing, it simply will have no choice but to conduct a full adjudicatory hearing prior to promulgating every rule. In sum, this sort of unwarranted judicial examination of perceived procedural shortcomings of a rulemaking proceeding can do nothing but seriously interfere with that process prescribed by Congress.

Respondent NRDC also argues that the fact that the Commission's inquiry was undertaken in the context of NEPA somehow permits a court to require procedures beyond those specified in § 4 of the APA when investigating factual issues through rulemaking. The Court of Appeals was apparently also of this view, indicating that agencies may be required to “develop new procedures to accomplish the innovative task of implementing NEPA through rulemaking. 178 U. S. App. D. C., at 356, 547 F. 2d, at 653. But we search in vain for something in NEPA which would mandate such a result. We have before observed that “NEPA does not repeal by implication any other statute.” Aberdeen & Bockfish B. Co. v. SCRAP, 422 U. S. 289, 319 (1975). See also United States v. SCBAP, 412 U. S. 669, 694 (1973). In fact, just two Terms ago, we emphasized that the only procedural requirements imposed by NEPA are those stated in the plain language of the Act. Kleppe v. Sierra Club, 427 U. S. 390, 405-406 (1976). Thus, it is clear NEPA cannot serve as the basis for a substantial revision of the carefully constructed procedural specifications of the APA.

In short, nothing in the APA, NEPA, the circumstances of this case, the nature of the issues being considered, past agency practice, or the statutory mandate under which the Commission operates permitted the court to review and overturn the rulemaking proceeding on the basis of the procedural devices employed (or not employed) by the Commission so long as the Commission employed at least the statutory minima, a matter about which there is no doubt in this case.

*549There remains, of course, the question of whether the challenged rule finds sufficient justification in the administrative proceedings that it should be upheld by the reviewing court. Judge Tamm, concurring in the result reached by the majority of the Court of Appeals, thought that it did not. There are also intimations in the majority opinion which suggest that the judges who joined it likewise may have thought the administrative proceedings an insufficient basis upon which to predicate the rule in question. We accordingly remand so that the Court of Appeals may review the rule as the Administrative Procedure Act provides. We have made it abundantly clear before that when there is a contemporaneous explanation of the agency decision, the validity of that action must “stand or fall on the propriety of that finding, judged, of course, by the appropriate standard of review. If that finding is not sustainable on the administrative record made, then the Comptroller’s decision must be vacated and the matter remanded to him for further consideration.” Camp v. Pitts, 411 U. S. 138, 143 (1973). See also SEC v. Chenery Corp., 318 U. S. 80 (1943). The court should engage in this kind of review and not stray beyond the judicial province to explore the procedural format or to impose upon the agency its own notion of which procedures are “best” or most likely to further some vague, undefined public good.21

Ill

A

We now turn to the Court of Appeals’ holding “that rejection of energy conservation on the basis of the 'threshold test’ *550was capricious and arbitrary,” 178 U. S. App. D. C., at 332, 547 F. 2d, at 629, and again conclude the court was wrong.

The Court of Appeals ruled that the Commission’s “threshold test” for the presentation of energy conservation contentions was inconsistent with NEPA’s basic mandate to the Commission. Id., at 330, 547 F. 2d, at 627. The Commission, the court reasoned, is something more than an umpire who sits back and resolves adversary contentions at the hearing stage. Ibid., 547 F. 2d, at 627. And when an intervenor’s comments “bring sufficient attention to the issue to stimulate the Commission’s consideration of it,’ ” the Commission must “undertake its own preliminary investigation of the proffered alternative sufficient to reach a rational judgment whether it is worthy of detailed consideration in the EIS. Moreover, the Commission must explain the basis for each conclusion that further consideration of a suggested alternative is unwarranted.” Id., at 331, 547 F. 2d, at 628, quoting from Indiana & Michigan Electric Co. v. FPC, 163 U. S. App. D. C. 334, 337, 502 F. 2d 336, 339 (1974), cert. denied, 420 U. S. 946 (1975).

While the court’s rationale is not entirely unappealing as an abstract proposition, as applied to this case we think it basically misconceives not only the scope of the agency’s statutory responsibility, but also the nature of the administrative process, the thrust of the agency’s decision, and the type of issues the intervenors were trying to raise.

There is little doubt that under the Atomic Energy Act of 1954, state public utility commissions or similar bodies are empowered to make the initial decision regarding the need for power. 42 U. S. C. § 2021 (k). The Commission’s prime area of concern in the licensing context, on the other hand, is national security, public health, and safety. §§ 2132, 2133, 2201. And it is clear that the need, as that term is conventionally used, for the power was thoroughly explored in the hearings. Even the Federal Power Commission, which regu*551lates sales in interstate commerce, 16 U. S. C. § 824 et seq. (1976 ed.), agreed with Consumers Power’s analysis of projected need. App. 207.

NEPA, of course, has altered slightly the statutory balance, requiring “a detailed statement by the responsible official on . . . alternatives to the proposed action.” 42 U. S. C. § 4332 (C). But, as should be obvious even upon a moment’s reflection, the term “alternatives” is not self-defining. To make an impact statement something more than an exercise in frivolous boilerplate the concept of alternatives must be bounded by some notion of feasibility. As the Court of Appeals for the District of Columbia Circuit has itself recognized:

“There is reason for concluding that NEPA was not meant to require detailed discussion of the environmental effects of 'alternatives’ put forward in comments when these effects cannot be readily ascertained and the alternatives are deemed only remote and speculative possibilities, in view of basic changes required in statutes and policies of other agencies — making them available, if at all, only after protracted debate and litigation not meaningfully compatible with the time-frame of the needs to which the underlying proposal is addressed.” Natural Resources Defense Council v. Morton, 148 U. S. App. D. C. 5, 15-16, 458 F. 2d 827, 837-838 (1972).

See also Life of the Land v. Brinegar, 485 F. 2d 460 (CA9 1973), cert. denied, 416 U. S. 961 (1974). Common sense also teaches us that the “detailed statement of alternatives” cannot be found wanting simply because the agency failed to include every alternative device and thought conceivable by the mind of man. ' Time and resources are simply too limited to hold that an impact statement fails because the agency failed to ferret out every possible alternative, regardless of how uncommon or unknown that alternative may have been at the time the project was approved.

*552With these principles in mind we now turn to the notion of “energy conservation,” an alternative the omission of which was thought by the Court of Appeals to have been “forcefully pointed out by Saginaw in its comments on the draft EIS.” 178 U. S. App. D. C., at 328, 547 F. 2d, at 625. Again, as the Commission pointed out, “the phrase 'energy conservation’ has a deceptively simple ring in this context. Taken literally, the phrase suggests a virtually limitless range of possible actions and developments that might, in one way or another, ultimately reduce projected demands for electricity from a particular proposed plant.” App. 331. Moreover, as a practical matter, it is hard to dispute the observation that it is largely the events of recent years that have emphasized not only the need but also a large variety of alternatives for energy conservation. Prior to the drastic oil shortages incurred by the United States in 1973, there was little serious thought in most Government circles of energy conservation alternatives. Indeed, the Council on Environmental Quality did not promulgate regulations which even remotely suggested the need to consider energy conservation in impact statements until August 1, 1973. See 40 CFR § 1500.8 (a) (4) (1977); 38 Fed. Reg. 20554 (1973). And even then the guidelines were not made applicable to draft and final statements filed with the Council before January 28, 1974. Id., at 20557, 21265. The Federal Power Commission likewise did not require consideration of energy conservation in applications to build hydroelectric facilities until June 19, 1973. 18 CFR pt. 2, App. A., §8.2 (1977); 38 Fed. Reg. 15946, 15949 (1973). And these regulations were not made retroactive either. Id., at 15946. All this occurred over a year and a half after the draft environmental statement for Midland had been prepared, and over a year after the final environmental statement had been prepared and the hearings completed.

We think these facts amply demonstrate that the concept of “alternatives” is an evolving one, requiring the agency to *553explore more or fewer alternatives as they become better known and understood. This was well understood by the Commission, which, unlike the Court of Appeals, recognized that the Licensing Board’s decision had to be judged by the information then available to it. And judged in that light we have little doubt the Board’s actions were well within the proper bounds of its statutory authority. Not only did the record before the agency give every indication that the project was actually needed, but also there was nothing before the Board to indicate to the contrary.

We also think the court’s criticism of the Commission’s “threshold test” displays a lack of understanding of the historical setting within which the agency action took place and of the nature of the test itself. In the first place, while it is true that NEPA places upon an agency the obligation to consider every significant aspect of the environmental impact of a proposed action, it is still incumbent upon intervenors who wish to participate to structure their participation so that it is meaningful, so that it alerts the agency to the intervenors’ position and contentions. This is especially true when the intervenors are requesting the agency to embark upon an exploration of uncharted territory, as was the question of energy conservation in the late 1960’s and early 19'70’s.

“[C]omments must be significant enough to step over a threshold requirement of materiality before any lack of agency response or consideration becomes of concern. The comment cannot merely state that a particular mistake was made ... ; it must show why the mistake was of possible significance in the results . . . .” Portland Cement Assn. v. Ruckelshaus, 158 U. S. App. D. C. 308, 327, 486 F. 2d 375, 394 (1973), cert. denied sub nom. Portland Cement Corp. v. Administrator, EPA, 417 U. S. 921 (1974).

Indeed, administrative proceedings should not be a game or a forum to engage in unjustified obstructionism by making *554cryptic and obscure reference to matters that “ought to' be” considered and then, after failing to do more to bring the matter to the agency’s attention, seeking to have that agency determination vacated on the ground that the agency failed to consider matters “forcefully presented.” In fact, here the agency continually invited further clarification of Saginaw’s contentions. Even without such clarification it indicated a willingness to receive evidence on the matters. But not only did Saginaw decline to further focus its contentions, it virtually declined to participate, indicating that it had “no conventional findings of fact to set forth” and that it had not “chosen to search the record and respond to this proceeding by submitting citations of matter which we believe were proved or disproved.”

We also think the court seriously mischaracterized the Commission’s “threshold test” as placing “heavy substantive burdens ... on intervenors . . . .” 178 U. S. App. D. C., at 330, and n. 11, 547 F. 2d, at 627, and n. 11. On the contrary, the Commission explicitly stated:

“We do not equate this burden with the civil litigation concept of a prima jade case, an unduly heavy burden in this setting. But the showing should be sufficient to require reasonable minds to inquire further.” App. 344 n. 27.

We think this sort of agency procedure well within the agency’s discretion.

In sum, to characterize the actions of the Commission as “arbitrary or capricious” in light of the facts then available to it as described at length above, is to deprive those words of any meaning. As we have said in the past:

“Administrative consideration of evidence . . . always creates a gap between the time the record is closed and the time the administrative decision is promulgated [and, we might add, the time the decision is judicially reviewed]. ... If upon the coming down of the order *555litigants might demand rehearings as a matter of law because some new circumstance has arisen, some new trend has been observed, or some new fact discovered, there would be little hope that the administrative process could ever be consummated in an order that would not be subject to reopening.” ICC v. Jersey City, 322 U. S. 503, 514 (1944).

See also Northern Lines Merger Cases, 396 U. S. 491, 521 (1970).

We have also made it clear that the role of a court in reviewing the sufficiency of an agency’s consideration of environmental factors is a limited one, limited both by the time at which the decision was made and by the statute mandating review.

“Neither the statute nor its legislative history contemplates that a court should substitute its judgment for that of the agency as to the environmental consequences of its actions.” Kleppe v. Sierra Club, 427 U. S., at 410 n. 21.

We think the Court of Appeals has forgotten that injunction here and accordingly its judgment in this respect must also be reversed.22

*556B

Finally, we turn to the Court of Appeals’ holding that the Licensing Board should have returned the ACRS report to ACRS for further elaboration, understandable to a layman, of the reference to other problems.

The Court of Appeals reasoned that since one function of the report was “that all concerned may be apprised of the safety or possible hazard of the facilities,” the report must be in terms understandable to a layman and replete with cross-references to previous reports in which the “other problems” are detailed. Not only that, but if the report does not so elaborate, and the Licensing Board fails to sun sponte return the report to ACRS for further development, the entire agency action, made after exhaustive studies, reviews, and 14 days of hearings, must be nullified.

Again the Court of Appeals has unjustifiably intruded into the administrative process. It is true that Congress thought publication of the ACRS report served an important function. But the legislative history shows that the function of publication was subsidiary to its main function, that of providing technical advice from a body of experts uniquely qualified to provide assistance. See 42 U. S. C. § 2039; S. Rep. No. 296, 85th Cong., 1st Sess., 24 (1957); Joint Committee on Atomic Energy, A Study of AEC Procedures and Organization in the Licensing of Reactor Facilities, 85th Cong., 1st Sess., 32-34 (Comm. Print 1957). The basic information to be conveyed to the public is not necessarily a full technical exposition of every facet of nuclear energy, but rather the ACRS’s position, and reasons therefor, with respect to the safety of a proposed nuclear reactor. Accordingly, the ACRS cannot be faulted for not dealing with every facet of nuclear energy in every report it issues.

Of equal significance is the fact that the ACRS was not obfuscating its findings. The reports to which it referred were matters of public record, on file in the Commission’s *557public-documents room. Indeed, all ACRS reports are on file there. Furthermore, we are informed that shortly after the Licensing Board’s initial decision, ACRS prepared a list which identified its “generic safety concerns.” In light of all this it is simply inconceivable that a reviewing court should find it necessary or permissible to order the Board to sua sponte return the report to ACRS. Our view is confirmed by the fact that the putative reason for the remand was that the public did not understand the report, and yet not one member of the supposedly uncomprehending public even asked that the report be remanded. This surely is, as petitioner Consumers Power claims, “judicial intervention run riot.” Brief for Petitioner in No. 76-528, p. 37.

We also think it worth noting that we find absolutely nothing in the relevant statutes to justify what the court did here. The Commission very well might be able to remand a report for further clarification, but there is nothing to support a court’s ordering the Commission to take that step or to support a court’s requiring the ACRS to give a short explanation, understandable to a layman, of each generic safety concern.

All this leads us to make one further observation of some relevance to this case. To say that the Court of Appeals’ final reason for remanding is insubstantial at best is a gross understatement. Consumers Power first applied in 1969 for a construction permit — not even an operating license, just a construction permit. The proposed plant underwent an incredibly extensive review. The reports filed and reviewed literally fill books. The proceedings took years, and the actual hearings themselves over two weeks. To then nullify that effort seven years later because one report refers to other problems, which problems admittedly have been discussed at length in-other reports available to the public, borders on the Kafkaesque. Nuclear energy may some day be a cheap, safe source of power or it may not. But Congress has made a *558choice to at least try nuclear energy, establishing a reasonable review process in which courts are to play only a limited role. The fundamental policy questions appropriately resolved in Congress and in the state legislatures are not subject to reexamination in the federal courts under the guise of judicial review of agency action. Time may prove wrong the decision to develop nuclear energy, but it is Congress or the States within their appropriate agencies which must eventually make that judgment. In the meantime courts should perform their appointed function. NEPA does set forth significant substantive goals for the Nation, but its mandate to the agencies is essentially procedural. See 42 IT. S. C. § 4332. See also Aberdeen & Bockfish R. Co. v. SCRAP, 422 U. S., at 319. It is to insure a fully informed and well-considered decision, not necessarily a decision the judges of the Court of Appeals or of this Court would have reached had they been members of the decisionmaking unit of the agency. Administrative decisions should be set aside in this context, as in every other, only for substantial procedural or substantive reasons as mandated by statute, Consolo v. FMC, 383 U. S. 607, 620 (1966), not simply because the court is unhappy with the result reached. And a single alleged oversight on a peripheral issue, urged by parties who never fully cooperated or indeed raised the issue below, must not be made the basis for overturning a decision properly made .after an otherwise exhaustive proceeding.

Reversed and remanded.

Mr. Justice Blackmun and Mr. Justice Powell took no part in the consideration or decision of these cases.

2.2.3.2.1.1.4 American Radio Relay League, Inc. v. Federal Communications Commission 2.2.3.2.1.1.4 American Radio Relay League, Inc. v. Federal Communications Commission

AMERICAN RADIO RELAY LEAGUE, INCORPORATED, Petitioner v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents. Ambient Corporation, et al., Intervenors.

No. 06-1343.

United States Court of Appeals, District of Columbia Circuit.

Argued Oct. 23, 2007.

Decided April 25, 2008.

*230Jonathan J. Frankel argued the cause for petitioner. With him on the briefs were Christopher D. Imlay, William T. Lake, Dileep S. Srihari, and Daniel A. Zibel.

C. Grey Pash, Jr., Counsel, Federal Communications Commission, argued the cause for respondents. With him on the brief were Thomas O. Barnett, Assistant Attorney General, Robert B. Nicholson and Robert J. Wiggers, Attorneys, Samuel L. Feder, General Counsel, Federal Communications Commission, Joseph R. Pal-more, Deputy General Counsel, Richard K. Welch, Associate General Counsel, and John E. Ingle, Deputy Associate General Counsel.

George Y. Wheeler, John B. Richards, Thomas B. Magee, James N. Horwood, Tillman L. Lay, Jill Mace Lyon, Brett Kilbourne, Mitchell Lazarus, and Harry F. Cole were on the brief for intervenors.

Before: ROGERS, TATEL and KAVANAUGH, Circuit Judges.

Opinion for the Court by Circuit Judge ROGERS.

Concurring opinion by Circuit Judge TATEL.

Opinion concurring in part, concurring in the judgment in part, and dissenting in part by Circuit Judge KAVANAUGH.

ROGERS, Circuit Judge:

The American Radio Relay League, Inc., petitions on behalf of licensed amateur radio operators for review of two orders of the Federal Communications Commission promulgating a rule to regulate the use of the radio spectrum by Access Broadband over Power Line (“Access BPL”) operators. The Commission concluded that existing safeguards combined with new protective measures required by the rule will prevent harmful interference to licensees *231from Access BPL radio emissions. The League challenges this conclusion, contending that the Commission has abandoned decades of precedent requiring shut-down and other protections for licensees and that the rule is substantively and procedurally flawed. We grant the petition in part and remand the rule to the Commission. The Commission failed to satisfy the notice and comment requirements of the Administrative Procedure Act (“APA”) by redacting studies on which it relied in promulgating the rule and failed to provide a reasoned explanation for its choice of the extrapolation factor for measuring Access BPL emissions.

I.

Under section 301 of the Communications Act, the owners and operators of “any apparatus for the transmission of energy or communications or signals by radio” are required to obtain a license as a condition of operation and they may not use or operate any such apparatus, for instance, “when interference is caused by such use or operation with the transmission of such energy, communications, or signals.” 47 U.S.C. § 301. Section 302 of the Act authorizes the Commission, “consistent with the public interest, convenience, and necessity,” to promulgate regulations for manufacture and use governing “the interference potential of devices which in their operation are capable of emitting radio frequency energy ... in sufficient degree to cause harmful interference to radio communications.” Id. § 302a(a). The Commission’s rules, specifically Part 15, define “harmful interference” as “[a]ny emission, radiation or induction that endangers the functioning of a radio navigation service or of other safety services or seriously degrades, obstructs or repeatedly interrupts a radiocommuni-cations service.” 47 C.F.R. § 15.3(m). The rules governing unlicensed devices also include two provisions to protect licensed radio operators from unlicensed devices: an ex ante precondition of operation that a device not cause “harmful interference,” id. § 15.5(b), and an ex post requirement that a device “cease” operation if “harmful interference” occurs, id. § 15.5(c).

The Commission, upon concluding that “the introduction of new high-speed [Access] BPL technologies warrants a systematic review of the Part 15 rules' in order to facilitate the deployment of this new technology, promote consistency in the rules and ensure the ongoing protection of the licensed radio services,” issued a notice of inquiry. Notice of Inquiry, Carrier Current Systems, Including Broadband Over Power Line Systems (“NOI”), 18 F.C.C.R. 8498, 8503 (April 28, 2003). Therein it stated that in the process of Access BPL transmission, devices installed along electric power lines transmit radio frequency energy over the 1.7-80 MHz spectrum, creating potential to interfere with the ability of nearby radio operators to send and receive signals on the same frequencies. Id. at 8499-500, 8505-06. Licensed radio operators on this part of the spectrum include public safety and federal government agencies, aeronautical navigation, maritime, radio-astronomy, citizen band radio, and amateur radio operators. Id. at 8506. Subsequently, in announcing a proposed rule, the Commission stated that its policy was to “promote and foster the development of [the] new technology [Access BPL] with its concomitant benefits while at the same time ensuring that existing licensed operations are protected from harmful interference.” Notice of Proposed Rule Making, Carrier Current Systems, Including Broadband Over Power Line Systems (“NPRM”), 19 F.C.C.R. 3335, 3355 (Feb. 23, 2004).

*232In the final rule the Commission defined Access BPL and set technical and administrative requirements to protect licensed radio operators from harmful interference. See Amendment of Part 15 Regarding New Requirements and Measurement Guidelines for Access Broadband Over Power Line Systems, Carrier Current Systems (“Order”), 19 F.C.C.R. 21,265, 21,284-302 (Oct. 28, 2004). To protect licensed operators, the rule requires Access BPL manufacturers and operators to comply with certification requirements and emission limits, and establishes a nationwide database of Access BPL operations in order to facilitate identification of a source of interference and its resolution. Id. at 21,282, 21,300, 21,316. Access BPL operations also must have the capability, from a central location, to reduce or “notch” operating power, to avoid or adjust frequencies, and to shut down segments of their operations entirely when necessary to resolve licensees’ complaints of “harmful interference.” Id. at 21,291-96. To protect government, aeronautical, and public safety operations, Access BPL operators must avoid certain frequencies and certain geographic areas, notify and consult with public safety users before beginning operations, and resolve public safety users’ complaints of harmful interference within 24 hours. Id. at 21,287-89, 21,301-02. The Commission retained the existing extrapolation factor of 40 decibels (“dB”) per decade1 for frequencies below 30 MHz to measure Access BPL emissions and any resulting interference. Id. at 21,-309-12.

The Commission acknowledged that “some cases of harmful interference may be possible from Access BPL emissions at levels up to the Part 15 limits” but it was satisfied that “the benefits of Access BPL service warrant acceptance of a small and manageable degree of interference risk.” Id. at 21,276. The Commission concluded that the risk of such harmful interference was “low.” Id. at 21,275; see id. at 21,283. Regarding mobile operations, such as amateur radios in automobiles, the Commission concluded that the requirement that Access BPL operators “notch” their emitted power to a level at least 20 dB below emission limits on a frequency band would be “generally ... sufficient to resolve any harmful interference that might occur to mobile operations.” Id. at 21,294. The Commission referenced its findings that “[only] low signal levels [are] allowed under the Part 15 emission limits” and that “a mobile transceiver can readily be repositioned to provide some separation from the Access BPL operation.” Id.

In reaching its “low”-likelihood conclusion, the Commission stated that “[t]he record and our investigations indicate that [Access] BPL network systems can generally be configured and managed to minimize and/or eliminate ... harmful interference potential [to licensed radio services].” Id. at 21,266, 21,322. The Commission also relied on “information provided by our field tests,” “our own field measurements of Access BPL installations,” and “our own field testing.” Id. at 21,275-76, 21,282, 21,296. Following issuance of the NOI, the League sought disclosure under the Freedom of Information Act (“FOIA”) of the Commission’s studies related to Access BPL systems. The Commission denied that request except as to one document that it placed in the record in the fall of 2003. When the League filed a second FOIA request citing the Order, the Commission released five studies in redacted *233form and made them part of the record in December 2004 after the rule was promulgated. The Commission stated that “[t]hese documents comprise internally-generated information upon which the Commission relied, in part, in reaching its determination.” Submission by FCC Ofc. of Eng’g & Tech, to Sec’y (Dec. 22, 2004), filed in ET Docket Nos. 03-104 & 04-37.

The League sought reconsideration, and upon its denial, with a clarification,2 the League petitioned for review.

II.

The League seeks vacatur of the rule on four grounds. The League contends that: First, without acknowledging it, the Commission abrogated seventy years of precedent by invoking section 302 of the Act to authorize the operation of unlicensed devices that could interfere with licensed devices, and by no longer requiring them to cease operation if they actually cause harmful interference. Second, because “[t]he lynchpin” of the rule “is a series of studies conducted by the [Commission’s] engineers” that have never been made available in unredacted form, their nondisclosure violates the APA’s notice and comment requirements. Pet’s Br. at 18. Third, the rule is based on a flawed assumption that Access BPL emissions under 30 MHz decay by 40 dB per decade; consequently, use of this extrapolation factor to measure Access BPL emissions is arbitrary and capricious given the absence of any evidentiary basis in the rulemaking record and the Commission’s refusals to consider empirical evidence supporting a lower extrapolation factor of 20 dB per decade or an alternative sliding-scale formula. Fourth, the Commission failed to consider adequately a proposal to limit Access BPL systems to the frequency band between 30 and 50 MHz, as a “workable” way to ensure that they do not cause harmful interference in those frequencies “uniquely well-suited to licensed long-distance communications such as ... amateur radio.” Id. at 43-44. The Commission rejects all of these contentions.

Our review of the Commission’s exercise of its regulatory authority is deferential, considering whether the Commission’s action was arbitrary or capricious, an abuse of discretion, or otherwise not in accordance with law. 5 U.S.C. § 706(2); see 28 U.S.C. § 2342(1); 47 U.S.C. § 402. An agency need only articulate a “rational connection between the facts found and the choice made,” Motor Vehicle Mfrs. Ass’n of the United States, Inc. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983) (citation omitted), and the court “will not intervene unless the Commission failed to consider relevant factors or made a manifest error in judgment,” Consumer Elecs. Ass’n v. FCC, 347 F.3d 291, 300 (D.C.Cir.2003). Where a “highly technical question” is involved, “courts necessarily must show considerable deference to an agency’s expertise.” MCI Cellular Tel. Co. v. FCC, 738 F.2d 1322, 1333 (D.C.Cir.1984). At least “a modicum of reasoned analysis” is required, however. Hispanic Info. & Telecomms. Network, Inc. v. FCC, 865 F.2d *2341289, 1297-98 (D.C.Cir.1989). The court defers to an agency’s reasonable interpretation of its governing statute consistent with Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 842-45, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). An agency’s interpretation of its own regulation is “ ‘controlling’ unless ‘plainly erroneous or inconsistent with’ the regulation[ ] being interpreted.” Long Island Care at Home, Ltd. v. Coke, — U.S. -, 127 S.Ct. 2339, 2349, 168 L.Ed.2d 54 (2007) (quotation marks and citations omitted); see Udall v. Tollman, 380 U.S. 1, 16-17, 85 S.Ct. 792, 13 L.Ed.2d 616 (1965); Cassell v. FCC, 154 F.3d 478, 483 (D.C.Cir.1998).

A.

The Commission has long interpreted section 301 of the Act to allow the unlicensed operation of a device that emits radio frequency energy as long as it does not “transmití ] enough energy to have a significant potential for causing harmful interference” to licensed radio operators. Revision of Part 15 of the Commission’s Rules Regarding Ultra-Wideband Transmission Systems, 19 F.C.C.R. 24,558, 24,589 & n. 179 (2004) (“UltraWideband Order”); see Revision of Part 15 of the Rules, 4 F.C.C.R. 3493, 3493 (1989); Part 15 Incidental and Restricted Radiation Devices, 20 Fed.Reg. 10,055, 10,056 (Dec. 29, 1955). The League contends that in promulgating the rule the Commission has departed from its longstanding interpretation of section 301 as including an ex post shut-down requirement where harmful interference occurs “by forcing licensed users to accept harmful interference from unlicensed operations and permitting unlicensed [Access] BPL operators to continue their interference-generating activities.” Pet’s Br. at 21. The League does not dispute that an agency may change its position and depart from its precedent. See Action for Children’s Television v. FCC, 821 F.2d 741, 745 (D.C.Cir.1987) (citing Greater Boston Television Corp. v. FCC, 444 F.2d 841, 852 (D.C.Cir.1970); State Farm, 463 U.S. at 42-43, 103 S.Ct. 2856). Rather, the League contends that the Commission has done so without acknowledging the change or providing a reasoned explanation for it. This contention is not well taken.

The Commission determined, in accord with its precedent, that such interference as may remain from Access BPL emissions under the rule will not rise to the level of harmful interference for mobile radio operators in light of the nature of mobile antennae reception. See Order, 19 F.C.C.R. at 21,294-95; Reconsideration Order, 21 F.C.C.R. at 9318-21, 9328. The rule requires Access BPL operators to reduce their signal by 20 dB if such harmful interference occurs to any radio operation. The Commission determined that for mobile operators the remaining interference after this “notch” “would not be significantly greater than the background noise at the distances normally used for protection against harmful interference.” Reconsideration Order, 21 F.C.C.R. at 9319; see Order, 19 F.C.C.R. at 21,294. Consequently, the Commission concluded that “Access BPL signals [after a 20 dB reduction] will not constitute harmful interference to mobile, and in particular, amateur mobile communications.” Reconsideration Order, 21 F.C.C.R. at 9320. This is because, the Commission found, “[t]he effect of [the Part 15 emission] limits will be to constrain the harmful interference potential of [Access BPL] systems to relatively short distances from the power lines that they occupy.” Order, 19 F.C.C.R. at 21,-282.

Put otherwise, the Commission has applied its longstanding definition of harmful *235interference in a new context without modifying its shut-down policy. Cf. Cassell, 154 F.3d at 483. The Commission implicitly determined that any interference that may occur beyond the required “notch” will not “seriously degrade[ ], obstruet[ ] or repeatedly interrupt[ ]” mobile radio under the Part 15 definition of “harmful interference.” Order, 19 F.C.C.R. at 21,276 & n. 51; Reconsideration Order, 21 F.C.C.R. at 9323 & n. 89. Because the Commission determined that any Access BPL interference will never reach a harmful level of interference for mobile use, the shut-down rule simply will not be triggered for mobile operations. See Reconsideration Order, 21 F.C.C.R. at 9320. The clarification upon reconsideration is to the same effect.3 Not requiring an Access BPL operator to shut down unless harmful interference occurs reflects Commission precedent. See Order, 19 F.C.C.R. at 21,296; Reconsideration Order, 21 F.C.C.R. at 9316; see also Ultra-Wideband Order, 19 F.C.C.R. at 24,591. The League concedes that Commission precedent does not require the elimination of all interference at all times and all places for section 301’s license requirement not to apply. See Pet’s Reply Br. at 4. Contrary to the League’s suggestion, then, the Commission’s observation that mobile users could move, Order, 19 F.C.C.R. at 21,294, did not impose a new burden on mobile operators but simply recognized the nature of mobile use, see Reconsideration Order, 21 F.C.C.R. at 9318, 9320.

The League’s related contention that the Commission has departed from its precedent in interpreting the relationship between section 301 and section 302 of the Act fares no better. The Commission stated in responding to the League’s petition for reconsideration that because Access BPL systems are “capable of emitting [radio frequency] energy that can cause harmful interference to radio communications,” they “fall under the Commission’s jurisdiction as conferred by Section 302 of the Communications Act, rather than Section 301.” Id. at 9327-28. The League misconstrues this statement to mean that the Commission is no longer regulating Access BPL under section 301.4 The League had argued that the Commission could not rely on section 302 and that there was no basis for a balancing test regarding harmful interference under section 301. See id. at 9327. The Commission’s response, however, does not suggest either that Access BPL devices are not governed by section 301 at all or that the Commission is not invoking its authority under both sections in promulgating the rule. See id. at 9335; Order, 19 F.C.C.R. at 21,321. As the Commission offers, the statement appears to be a shorthand way of saying that the Commission has applied section 302’s public interest standard to regulate Access BPL systems, as it has done in the past, because they operate in accordance with Part 15 rules rather than triggering the section 301 license requirement. Resp.’s Br. at 39; see Order, 19 F.C.C.R. at 21,275, 21,283; see also Amendment of Part 15 of the Commission’s Rules to Allow Certification of Equipment, 16 F.C.C.R. 22,337, 22,341-42 (2001).

*236B.

More persuasive is the League’s contention that the Commission has failed to comply with the APA by not disclosing in full certain studies by its staff upon which the Commission relied in promulgating the rule.

The APA requires an agency to publish “notice” of “either the terms or substance of the proposed rule or a description of the subjects and issues involved,” in order to “give interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments,” and then, “[a]f-ter consideration of the relevant matter presented, the agency shall incorporate in the rules adopted a concise general statement of their basis and purpose.” 5 U.S.C. § 553(b)-(c). Longstanding precedent instructs that “[njotice is sufficient ‘if it affords interested parties a reasonable opportunity to participate in the rulemak-ing process,’ and if the parties have not been ‘deprived of the opportunity to present relevant information by lack of notice that the issue was there.’ ” WJG Tel. Co., Inc. v. FCC, 675 F.2d 386, 389 (D.C.Cir.1982) (citations omitted); see Fla. Power & Light Co. v. Nuclear Regulatory Comm’n, 846 F.2d 765, 771 (D.C.Cir.1988).

Under APA notice and comment requirements, “[a]mong the information that must be revealed for public evaluation are the ‘technical studies and data’ upon which the agency relies [in its rulemak-ing].” Chamber of Commerce v. SEC (Chamber of Commerce II), 443 F.3d 890, 899 (D.C.Cir.2006) (citation omitted). Construing section 553 of the APA, the court explained long ago that “[i]n order to allow for useful criticism, it is especially important for the agency to identify and make available technical studies and data that it has employed in reaching the decisions to propose particular rules.” Conn. Light & Power Co. v. Nuclear Regulatory Comm’n, 673 F.2d 525, 530 (D.C.Cir.1982) (emphasis added). More particularly, “[disclosure of staff reports allows the parties to focus on the information relied on by the agency and to point out where that information is erroneous or where the agency may be drawing improper conclusions from it.” Nat’l Ass’n of Regulatory Util. Comm’rs (“NARUC”) v. FCC, 737 F.2d 1095, 1121 (D.C.Cir.1984) (emphasis added); see Portland Cement Ass’n v. Ruckelshaus, 486 F.2d 375, 393 (D.C.Cir.1973); see also Kent County, Del. Levy Court v. EPA 963 F.2d 391, 395-96 (D.C.Cir.1992); Indep. U.S. Tanker Owners Comm. v. Lewis, 690 F.2d 908, 926 (D.C.Cir.1982).

Public notice and comment regarding relied-upon technical analysis, then, are “[t]he safety valves in the use of ... sophisticated methodology.” Sierra Club v. Costle, 657 F.2d 298, 334, 397-98 & n. 484 (D.C.Cir.1981) (citing cases); see Engine Mfrs. Ass’n v. EPA 20 F.3d 1177, 1181-82 (D.C.Cir.1994).

By requiring the “most critical factual material” used by the agency be subjected to informed comment, the APA provides a procedural device to ensure that agency regulations are tested through exposure to public comment, to afford affected parties an opportunity to present comment and evidence to support their positions, and thereby to enhance the quality of judicial review.

Chamber of Commerce II, 443 F.3d at 900 (quoting Ass’n of Data Processing Serv. Orgs., Inc. v. Bd. of Governors of the Fed. Reserve Sys., 745 F.2d 677, 684 (D.C.Cir.1984)). Enforcing the APA’s notice and comment requirements ensures that an agency does not “fail[] to reveal portions of the technical basis for a proposed rule in time to allow for meaningful commentary” *237so that “a genuine interchange” occurs rather than “allow[ing] an agency to play hunt the peanut with technical information, hiding or disguising the information that it employs.” Conn. Light & Power Co., 673 F.2d at 530-31. The failure to disclose for public comment is subject, however, to “the rule of prejudicial error,” 5 U.S.C. § 706, and the court will not set aside a rule absent a showing by the petitioners “that they suffered prejudice from the agency’s failure to provide an opportunity for public comment,” Gerber v. Norton, 294 F.3d 173, 182 (D.C.Cir.2002), in sufficient time so that the agency’s “decisions ... [may be] framed with ... comment in full view,” NARUC, 737 F.2d at 1121.

At issue are five scientific studies consisting of empirical data gathered from field tests performed by the Office of Engineering and Technology. Two studies measured specific Access BPL companies’ emissions, and three others measured location-specific emissions in pilot Access BPL areas in New York, North Carolina, and Pennsylvania. In placing the studies in the rulemaking record, the Commission has redacted parts of individual pages, otherwise relying on those pages. In responding to the League’s FOIA request, the Commission stated that “certain portions of [these] presentations have been redacted, as they represent preliminary or partial results or staff opinions that were part of the deliberative process, exempt from disclosure under Section 0.457(e) of the Commission’s rules and Section 552(b)(5) of the FOIA.” Letter from Edmond Thomas, Chief, FCC Ofc. of Eng’g & Tech., to Christopher Imlay, Gen. Counsel, Am. Radio Relay League (Jan. 4, 2005). Upon reconsideration, the Commission reaffirmed that “the redacted portions ... referred to internal communications that were not relied upon in the decision making process,” while reiterating that Commission statements in the Order “point” to the partially redacted studies — including the Commission’s “own field investigations of [Access] BPL experimental sites” — and “clarifying] that in this proceeding, the Commission relied ... on its own internally conducted studies.” Reconsideration Order, 21 F.C.C.R. at 9324-25. The court, pursuant to the Commission’s offer, Resp.’s Br. at 44 n. 35, has reviewed in camera the partially redacted pages in unredacted form; they show staff summaries of test data, scientific recommendations, and test analysis and conclusions regarding the methodology used in the studies. All pages in the studies are stamped “for internal use only.”

It would appear to be a fairly obvious proposition that studies upon which an agency relies in promulgating a rule must be made available during the rulemaking in order to afford interested persons meaningful notice and an opportunity for comment. “It is not consonant with the purpose of a rule-making proceeding to promulgate rules on the basis of inadequate data, or on data that, [to a] critical degree, is known only to the agency.” Portland Cement Ass’n, 486 F.2d at 393; see NARUC, 737 F.2d at 1121. Where, as here, an agency’s determination “is based upon ‘a complex mix of controversial and uncommented upon data and calculations,’ ” there is no APA precedent allowing an agency to cherry-pick a study on which it has chosen to rely in part. See Solite Corp. v. EPA, 952 F.2d 473, 500 (D.C.Cir.1991) (quoting Weyerhaeuser Co. v. Costle, 590 F.2d 1011, 1031 (D.C.Cir.1978)); see also Kent County, 963 F.2d at 396; Indep. U.S. Tanker Owners Comm., 690 F.2d at 926; Sierra Club, 657 F.2d at 334, 398.

The League has met its burden to demonstrate prejudice by showing that it “ha[s] something useful to say” regarding *238the unredacted studies, Chamber of Commerce II, 443 F.3d at 905, that may allow it to “mount a credible challenge” if given the opportunity to comment, Gerber, 294 F.3d at 184 (citation omitted); see Owner-Operator Indep. Drivers Ass’n, Inc. v. Fed. Motor Carrier Safety Admin., 494 F.3d 188, 202-03 (D.C.Cir.2007). As suggested by the League, the partially redacted pages indicate that a study’s core scientific recommendations may reveal the limitations of its own data and that its conclusions may reveal methodology or illuminate strengths and weaknesses of certain data or the study as a whole. For example, the League points to the unredacted headings of otherwise redacted pages referring to “New Information Arguing for Caution on HF BPL” and “BPL Spectrum Tradeoffs,” subjects on which it seeks the opportunity to comment. FCC Lab., BPL Summary After Briarcliff Manor, N.Y. Test, Sept. 8, 2004, at 17, filed in ET Docket Nos. 03-104 & 04-37. The unredacted pages thus appear to “contain information in tension with the [Commission’s] conclusion” that “[Access] BPL’s acknowledged interference risks are ‘manageable.’ ” Pet’s Br. at 18 (quoting Order, 19 F.C.C.R. at 21,276). Allowing such “omissions in data and methodology” may “ma[ke] it impossible to reproduce” an agency’s results or assess its reliance upon them. City of Brookings Mun. Tel. Co. v. FCC, 822 F.2d 1153, 1168 (D.C.Cir.1987); see also Sierra Club, 657 F.2d at 334, 397-98; United States v. Nova Scotia Food Prods. Corp., 568 F.2d 240, 252 (2d Cir.1977).

The Commission nonetheless maintains that it need not publish for notice and comment the five studies in full, including portions which it styles as “its staffs internal analysis of data in a rulemaking proceeding,” Resp.’s Br. at 44, “regardless of whether the agency accepts or rejects or ignores” this material, id. at 22. It relies on EchoStar Satellite L.L. C. v. FCC, 457 F.3d 31 (D.C.Cir.2006), but that case is inapposite. In EchoStar, the court held that neither late disclosure of data submitted by a commenter nor non-disclosure of certain staff analysis, in the absence of a timely objection to the completeness of the rulemaking record, violated the notice and comment requirements. Id. at 39-40. The study in that case on which the Commission had relied was made part of the rulemaking record two months before the Commission issued its order upon reconsideration and the non-disclosed staff analysis represented “merely ... cogitations upon the evidence” that was part of the rulemaking record. Id. at 40. By contrast, the challenged orders indicate that the five staff studies were never fully disclosed for comment even though they were, according to the Commission, a central source of data for its critical determinations. See, e.g., Order, 19 F.C.C.R. at 21,266, 21,322, 21,275-76, 21,282, 21,296; Reconsideration Order, 21 F.C.C.R. at 9319, 9324-25.

The Commission’s other bases for redaction and non-publication do not withstand analysis. The FOIA’s deliberative process privilege, invoked by the Commission in responding to the League’s FOIA request, “does not authorize an agency to throw a protective blanket over all information .... Purely factual reports and scientific studies cannot be cloaked in secrecy by an exemption designed to protect only those internal working papers in which opinions are expressed and policies formulated and recommended.” Bristol-Myers Co. v. Fed. Trade Comm’n, 424 F.2d 935, 939 (D.C.Cir.1970) (footnote and internal quotation marks omitted). By choosing “to adopt or incorporate by reference” the redacted studies, NLRB v. Sears, Roebuck & Co., 421 U.S. 132, 161, 95 S.Ct. 1504, 44 L.Ed.2d 29 (1975), and thereby “us[ing] *239... [them] in its dealings with the public,” Coastal States Gas Corp. v. Dep’t of Energy, 617 F.2d 854, 866 (D.C.Cir.1980), the Commission ceased treating them as internal working papers. The Commission’s reliance on Vernal Enterprises, Inc. v. FCC, 355 F.3d 650, 661 (D.C.Cir.2004), for the proposition that an agency is not bound by the actions of its staff, is misplaced; unlike .the refund rulings in that case, the redacted studies were neither unauthorized staff activities nor binding on the Commission.

The narrowness of our holding under section 553 of the APA is manifest. The redacted studies consist of staff-prepared scientific data that the Commission’s partial reliance made “critical factual material.” Owner-Operator Indep. Drivers Ass’n, 494 F.3d at 201 (quoting Air Transp. Ass’n of Am. v. FAA, 169 F.3d 1, 7 (D.C.Cir.1999)). The Commission has chosen to rely on the data in those studies and to place the redacted studies in the rulemaking record. Individual pages relied upon by the Commission reveal that the unredacted portions are likely to contain evidence that could call into question the Commission’s decision to promulgate the rule. Under the circumstances, the Commission can point to no authority allowing it to rely on the studies in a rulemaking but hide from the public parts of the studies that may contain contrary evidence, inconvenient qualifications, or relevant explanations of the methodology employed. The Commission has not suggested that any other confidentiality considerations would be implicated were the unredacted studies made public for notice and comment. The Commission also has not suggested that the redacted portions of the studies contain only “supplementary information” merely “clarifying], expanding], or amending] other data that has been offered for comment.” See Chamber of Commerce II, 443 F.3d at 903. Of course, it is within the Commission’s prerogative to credit only certain parts of the studies. But what it did here was redact parts of those studies that are inextricably bound to the studies as a whole and thus to the data upon which the Commission has stated it relied, parts that explain the otherwise unidentified methodology underlying data cited by the Commission for its conclusions, and parts that signal caution about that data. This is a critical distinction and no precedent sanctions such a “hide and seek” application of the APA’s notice and comment requirements. See Gerber, 294 F.3d at 181 (quoting MCI Telecomms. Corp. v. FCC, 57 F.3d 1136, 1142 (D.C.Cir.1995)).

Ajs our colleague notes, see Concurring & Dissenting Op. by Judge Kavanaugh at 245, in Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council, 435 U.S. 519, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978), the Supreme Court has limited the extent that a court may order additional agency procedures, but the procedures invalidated in Vermont Yankee were not anchored to any statutory provision. See id. at 548, 98 S.Ct. 1197; Richard J. Pierce, Jr., Waiting for Vermont Yankee III, IV, and V? A Response to Beermann and Lawson, 75 Geo. Wash. L.Rev. 902, 917 (2007). By contrast, the court does not impose any new procedures for the regulatory process, but merely applies settled law to the facts. The Commission made the choice to engage in notice-and-comment rulemaking and to rely on parts of its redacted studies as a basis for the rule. The court, consequently, is not imposing new procedures but enforcing the agency’s procedural choice by ensuring that it conforms to APA requirements. It is one thing for the Commission to give notice and make available for comment the studies on which it relied in formulating the rule while explaining its non-reliance on *240certain parts. It is quite another thing to provide notice and an opportunity for comment on only those parts of the studies that the Commission likes best. Moreover, the court’s precedent construing section 553 to require agencies to release for comment the “technical studies and data” or “staff reports” on which they rely during a rulemaking, see, e.g., Conn. Light & Power Co., 673 F.2d at 530; NARUC, 737 F.2d at 1121, is not inconsistent with the view that “the Portland Cement doctrine should be limited to studies on which the agency actually relies to support its final rule.” 1 RighaRD J. PieRce, Jr., Admmis-trative Law Treatise 437 (4th ed.2002) (emphasis added).

On remand, the Commission shall make available for notice and comment the unre-dacted “technical studies and data that it has employed in reaching [its] decisions,” Conn. Light & Power Co., 673 F.2d at 530; see Chamber of Commerce II, 443 F.3d at 903; Idaho Farm Bureau Fed’n v. Babbitt, 58 F.3d 1392, 1403 (9th Cir.1995); see also Mortgage Investors Corp. v. Gober, 220 F.3d 1375, 1380 (Fed.Cir.2000), and shall make them part of the rulemaking record. In view of the remand, the court does not reach the League’s contention that the late disclosure of redacted portions of the studies also violated the APA.

C.

The League also challenges the Commission’s decision to retain the extrapolation factor of 40 dB per decade to measure Access BPL radio emissions at frequencies below 30 MHz, which is the band primarily used by amateur radio operators, as unsupported by empirical evidence.

The “distance extrapolation factor[]” is the projected rate at which radio frequency strength decreases from a radiation-emitting source, used to estimate signal decay for Access BPL and resulting interference to radio operators at various distances from a source without actually measuring such emissions. See Order, 19 F.C.C.R. at 21,303; NOI, 18 F.C.C.R. at 8508; 47 C.F.R. § 15.31(f). The Commission’s Part 15 rules, § 15.31(f)(2), include a generally applicable extrapolation factor of 40 dB per decade for any device that may have potential to interfere with licensed operators at frequencies below 30 MHz. The Commission acknowledged that the extrapolation factor “is an important consideration in determining compliance with the emission limits in the rules” because “[i]f the extrapolation factor is 20 dB per decade instead of 40 dB per decade, the correction factor would be smaller, thus resulting in higher value for the transmitted emission levels [of Access BPL devices].” Reconsideration Order, 21 F.C.C.R. at 9317 & n. 55; see Order, 19 F.C.C.R. at 21,316. Nonetheless, the gaps in the Commission’s explanation for applying the pre-existing extrapolation factor to Access BPL systems demonstrate its inadequacy. Cf. Hispanic Info. & Telecomms. Network, Inc., 865 F.2d at 1297-98.

The League points out that to confirm its choice of a 40 dB per decade factor the Commission relied on modeling data using a method of measurement that is not based on empirical evidence derived from testing or scientific observation. See Order, 19 F.C.C.R. at 21,310; Reconsideration Order, 21 F.C.C.R. at 9318. Assuming that modeling may prove instructive, the comments to which the Commission points, see Order, 19 F.C.C.R. at 21,265; Reconsideration Order, 21 F.C.C.R. at 9318, at best suggest an alternative interpretation of empirical data reported by the National Telecommunications and Information Administration (“NTIA”). But the NTIA study itself casts doubt on the Commission’s decision to retain the preexisting extrapolation factor rather than suggesting *241that factor was appropriate for the new technology of Access BPL.5 The Commission also relied on the NTIA’s latest computer modeling results, but these results were not part of the rulemaking record. See Order, 19 F.C.C.R. at 21,310. Although indicating that it was confronted with a “lack of conclusive experimental data pending large scale Access BPL deployments,” Order, 19 F.C.C.R. at 21,310; Reconsideration Order, 21 F.C.C.R. at 9318, the Commission provided no explanation of how this circumstance justified retaining for Access BPL an extrapolation factor that was designed to accommodate technologies different in scale, signal power, and frequencies used. See NOI, 18 F.C.C.R. at 8498, 8501; Order, 19 F.C.C.R. at 21,266. Promulgated in 1989, the regulation states that for frequencies below 30 MHz the factor applies “[pjending the development of an appropriate measurement procedure,” 47 C.F.R. § 15.31(f)(2), and the Commission acknowledged that “[t]he actual extrapolation factor can be determined empirically” for carrier current systems, NOI, 18 F.C.C.R. at 8508.

But that aside, the Commission offered no reasoned explanation for its dismissal of empirical data that was submitted at its invitation. Order, 19 F.C.C.R. at 21,310. The League submitted three studies published in 2005 by the Commission’s counterpart in the United Kingdom, as well as additional analysis of its own, suggesting that an extrapolation factor of 20 dB per decade may be more appropriate for Access BPL.6 Upon reconsideration, the Commission summarily dismissed this data, stating: “No new information has been submitted that would provide a convincing argument for modifying [the extrapolation factor or emission limit/distance standards] at this time.” Reconsideration Order, 21 F.C.C.R. at 9318. Given the acknowledged critical nature of the extrapolation factor, see Reconsideration Order, 21 F.C.C.R. at 9317 & n. 55, so conclusory a statement cannot substitute for a reasoned explanation, AT & T Corp. v. FCC, 236 F.3d 729, 737 (D.C.Cir.2001), for it provides neither assurance that the Commission considered the relevant factors nor a discernable path to which the court may defer, see State Farm, 463 U.S. at 42-43, 103 S.Ct. 2856. Our colleague’s philosophical concern cannot fill the void, see Concurring & Dis. Op. at 248.

On remand, the Commission shall either provide a reasoned justification for retaining an extrapolation factor of 40 dB per decade for Access BPL systems sufficient to indicate that it has grappled with the 2005 studies, or adopt another factor and provide a reasoned explanation for it. The court need not address the League’s contention that the Commission failed to consider a proposal of a sliding-scale extrapolation factor, assuming it was properly presented to the Commission through a reference in an exhibit accompanying the League’s petition for reconsideration.

*242D.

Finally, the League contends the Commission gave inadequate consideration to a proposal that would restrict Access BPL systems to the frequency band between 30 MHz and 50 MHz, rather than allowing use throughout the 1.7-80 MHz spectrum range.

An agency is required “to consider responsible alternatives to its chosen policy and to give a reasoned explanation for its rejection of such alternatives.” City of Brookings Mun. Tel. Co., 822 F.2d at 1169 (quoting Farmers Union Cent. Exch., Inc. v. Fed. Energy Regulatory Comm’n, 734 F.2d 1486, 1511 (D.C.Cir.1984)); see also State Farm, 463 U.S. at 42, 103 S.Ct. 2856. Although this obligation extends only to “significant and viable” alternatives, Farmers Union, 734 F.2d at 1511 n. 54, the League’s proposal was “neither frivolous nor out of bounds,” Chamber of Commerce v. SEC, 412 F.3d 133, 145 (D.C.Cir.2005), particularly in light of the Commission’s adoption of certain band exclusions to protect other licensed operators, see Order, 19 F.C.C.R. at 21, 287-89. Contrary to the League’s contention, however, the Commission did not treat it as such.

The Commission explained that the alternative proposal would have “restricted] Access BPL system design and reduce[d] system capacity,” as well as “increas[ed] ... its cost to the public ... without corresponding benefit or need.” Reconsideration Order, 21 F.C.C.R. at 9321. Viewing the Access BPL remediation mechanisms in the rule as sufficient to protect amateur operations, id. at 9325-26; see also Order, 19 F.C.C.R. at 21,283-84, the Commission noted that the alternative proposal requested a system-wide “complete avoidance of all HF frequencies [below 30 MHz]” without regard to whether there were any amateurs near an Access BPL installation. See Reconsideration Order, 21 F.C.C.R. at 9321. The League maintains that the Commission’s response was empirically deficient, but the Commission, in fact, discussed the difference between amateur operations and other operations that received band protection. See id. at 9323 (citing Order, 19 F.C.C.R. at 21,289). Its analysis reflects the Commission’s considered technical judgment in light of its policy to foster Access BPL technology because it offers the potential for establishing “a significant new medium for extending broadband access to American homes and businesses,” could be made available nearly everywhere, including rural areas with power lines, and could introduce additional competition. Order, 19 F.C.C.R. at 21,266. Observing that “public safety systems merit additional protection because of the often critical and/or safety-of-life nature of the communications they provide,” the Commission noted that “in many instances amateur frequencies are used for routine communications and hobby activities.” Id. at 21,289. In offering an explanation for rejecting the alternative, the Commission was not required to do more. See City of Waukesha v. EPA, 320 F.3d 228, 258 (D.C.Cir.2003).

Accordingly, we grant the petition in part and remand the rule to the Commission. See Engine Mfrs. Ass’n, 20 F.3d at 1184; Radio-Televison News Dirs. Ass’n v. FCC, 184 F.3d 872, 888 (D.C.Cir.1999) (citing Allied-Signal, Inc. v. Nuclear Regulatory Comm’n, 988 F.2d 146, 151 (D.C.Cir.1993)). On remand, the Commission shall afford a reasonable opportunity for public comment on the unredacted studies on which it relied in promulgating the rule, make the studies part of the rulemaking record, and provide a reasoned explanation of its choice of an extrapolation factor for Access BPL systems.

TATEL, Circuit Judge,

concurring:

I write separately to emphasize that in my view, the disclosure ordered by the *243court in Part IIB is particularly important because the Commission’s failure to turn over the unredacted studies undermines this court’s ability to perform the review function APA section 706 demands. That provision requires us to set aside arbitrary and capricious agency action after reviewing “the whole record,” 5 U.S.C. § 706, and the “whole record” in this case includes the complete content of the staff reports the Commission relied upon in promulgating the challenged rule.

We described the APA’s “whole record” requirement in Walter O. Boswell Memorial Hospital v. Heckler, 749 F.2d 788 (D.C.Cir.1984). There, because the Department of Health and Human Services had improperly failed to supply the court — and the plaintiffs — with the whole administrative record, we remanded the case to the district court. Id. at 790, 793. Following the standard set forth in Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 420, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971) (“[R]eview is to be based on the full administrative record that was before the Secretary at the time he made his decision.” (emphasis added)), we explained that for a court “to review an agency’s action fairly, it should have before it neither more nor less information than did the agency when it made its decision.” Boswell Mem’l, 749 F.2d at 792. Observing that “[s]ome of the documents of which the plaintiffs were apparently unaware [we]re quite critical of the ... study that the [agency] cite[d] as a basis for the [final rule],” id. at 793, we explained that “reviewing] less than the full administrative record might allow a party to withhold evidence unfavorable to its case, and so the APA requires review of ‘the whole record,’ ” id. at 792 (quoting 5 U.S.C. § 706).

A similar situation confronts us here. Given that the Commission relied on the studies at issue, there can be no doubt that they form part of the administrative record — a proposition unaffected by the Commission’s claim that it chose not to rely on various parts of the studies. See 28 U.S.C. § 2112(b) (“The record to be filed in the court of appeals ... shall consist of the order sought to be reviewed or enforced, the findings or report upon which it is based, and the pleadings, evidence, and proceedings before the agency ... concerned.” (emphasis added)); Fed. R. App. P. 16 (“The record on review or enforcement of an agency order consists of ... any findings or report on which it is based.” (emphasis added)). Nor is there any doubt that, as our case law makes clear, the APA means exactly what it says: an agency must make the “whole record” available, especially where, as here, the undisclosed portions might very well undercut the agency’s ultimate decision, see Maj. Op. at 237-38.

This conclusion makes sense given that in the context of the APA, arbitrary and capricious review and the substantial evidence test “ ‘are one and the same’ insofar as the requisite degree of evidentiary support is concerned.” Consumers Union of U.S., Inc. v. FTC, 801 F.2d 417, 422 (D.C.Cir.1986) (quoting Ass’% of Data Processing Serv. Orgs. v. Bd. of Governors of the Fed. Reserve Sys., 745 F.2d 677, 683 (D.C.Cir.1984)). Because “[t]he substan-tiality of evidence must take into account whatever in the record fairly detracts from its weight,” Universal Camera Corp. v. NLRB, 340 U.S. 474, 488, 71 S.Ct. 456, 95 L.Ed. 456 (1951), for petitioners to mount a substantial evidence challenge, and for us to resolve it in any meaningful sense, agencies must disclose information that appears to “fairly detract[ ] from [the] weight” of the evidence, id. The redacted portions of the Commission’s staff reports fall neatly into that category, meaning that, as petitioner persuasively argues, “[disclosure of the complete content of *244these studies is essential not just for com-menters, but also the reviewing court.” Pet’r’s Opening Br. 33-34 (emphasis in original). Contrary to the Commission’s claim that petitioner’s substantial evidence argument would compel the agency to “make available for public comment every internal document in its entirety that the agency’s staff prepares relating to a rule making proceeding,” Resp’ts’ Br. 45, APA section 706 requires disclosure only of staff studies relied upon by the agency and thus contained in the record. Agencies retain discretion to craft staff reports and studies as they see fit, or to exclude such studies from the record altogether simply by declining to rely on them. Under the Commission’s view, however, an agency could redact from studies on which it expressly relies any evidence that “fairly detracts” from a proposed rule, thereby evading its obligation to account for contrary record evidence. Indeed, in this very case the Commission redacted individual lines from certain pages on which it otherwise relied. Maj. Op. at 237. Faced with selective redactions of this sort, we cannot perform the review function Congress has assigned us.

This is hardly a novel conclusion. In previous informal rulemaking cases, we ordered additional agency disclosures to facilitate meaningful arbitrary and capricious review of agency action. In Kent County, Delaware Levy Court v. EPA, 963 F.2d 391 (D.C.Cir.1992), for example, we directed the agency to supplement the administrative record with internal agency documents that “relate[d] to the position of the agency’s own experts on [a] question central to th[e] case.” Id. at 396. “To deny their relevance,” we explained, “would be inconsistent with rational decisionmaking by an administrative agency.” Id. Indeed, in Kent County we ordered the agency to supplement the administrative record even though there was no indication “that the agency [had] purposefully excluded the documents.” 963 F.2d at 396. Here, by contrast, there is little doubt that the Commission deliberately attempted to “exclude[ ] from the record evidence adverse to its position,” a circumstance in which “this court [has] recognized that supplementing the administrative record might be proper.” Id. (internal quotation marks omitted); see also Natural Resources Def. Council v. Train, 519 F.2d 287, 292 (D.C.Cir.1975) (remanding to enable plaintiffs “to determine, by limited discovery, whether any other documents which are properly part of the administrative record have been withheld”); 28 U.S.C. § 2112(b) (“If there is omitted from the record any portion of the proceedings before the agency ... which the court subsequently determines to be proper for it to consider to enable it to review or enforce the order in question[,] the court may direct that such additional portion of the proceedings be filed as a supplement to the record.”).

It is true, as we pointed out in Boswell Memorial, that APA section 706 “does allow review based not only on ‘the whole record,’ but also on ‘those parts of it cited by a party.’” 749 F.2d at 793 (quoting 5 U.S.C. § 706). Acknowledging that such an approach would sometimes be “fundamentally unfair,” id., however, we carefully circumscribed this possibility: *245 ld.; see also 28 U.S.C. § 2112(b) (allowing review of partial record if all parties agree). Because the plaintiffs in Boswell Memorial were left in the dark about several documents that the agency later submitted in related cases, we refused to base our review on what we considered an incomplete record. Such an approach would have been unfair, we explained, because with “no check upon the failure of the agency to disclose information adverse to it, the normal pressures towards inclusion of all relevant material in the record before the court [we]re absent.” 749 F.2d at 793. Because here, as in Boswell Memorial, “reviewing] less than the full administrative record might allow a party to withhold evidence unfavorable to its case,” id. at 792,1 agree that the appropriate course is to remand the case with an order to disclose the entire studies on which the Commission relied — warts and all.

*244For review to go forward on a partial record, we would have to be convinced that the selection of particular portions of the record was the result of mutual agreement between the parties after both sides had fully reviewed the complete record. In that situation, we might naturally assume that the omitted portions did not materially affect either party’s case and, for our own convenience, review the case on that portion of the record cited by the parties.

*245KAVANAUGH, Circuit Judge,

concurring in part, concurring in the judgment in part, and dissenting in part.

To expand consumer access to broadband Internet services, increase competition against DSL and cable modem providers, and lower prices for consumers, the FCC adopted a rule to facilitate the use of electric power lines for broadband Internet access. The petitioner, an organization of amateur radio operators, has challenged this “Access Broadband Over Power Line Systems” rule. I agree with the majority opinion that the FCC’s rule complies with the Communications Act.

Applying the Administrative Procedure Act and our Portland Cement line of decisions, however, the majority opinion remands for the FCC to release redacted portions of certain FCC staff documents analyzing field tests of broadband over power lines. See Portland Cement Ass’n v. Ruckelshaus, 486 F.2d 375, 392-93 (D.C.Cir.1973). In light of our precedents, I concur in the judgment on this point; but I write separately because of concerns about our case law in this area.

Applying the State Farm principle, the majority opinion also remands for the FCC to further explain why it chose to use a certain measurement, or “extrapolation factor,” to estimate the interference that broadband over power lines will cause to licensed radio services. See Motor Vehicle Mfrs. Ass’n v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983). I respectfully dissent from that holding because I believe the FCC sufficiently explained its reasoning.

I therefore join Parts I, IIA, and IID of the majority opinion. I concur in the judgment as to Part IIB, and I dissent from Part IIC.

I

In issuing its rule, the FCC relied on various technical studies, including an NTIA report; the various interference studies filed in the record, including petitioner’s studies; and the unredacted portions of certain internal FCC staff studies. Amendment of Part 15 Regarding New Requirements and Measurement Guidelines for Access Broadband Over Power Line Systems, Mem. Op. and Order, 21 F.C.C.R. 9308, 9324-25 ¶47 (2006). The FCC publicly disclosed all those materials. But the Commission did not release certain redacted portions of the internal staff studies on which it relied. Id. Citing § 553 of the APA, petitioner says the FCC must release the redacted portions of the staff studies so that interested parties can comment on them and so the FCC, in turn, can consider those comments.

Petitioner’s argument would be unavailing if analyzed solely under the text of APA § 553. The APA requires only that an agency provide public notice and a com*246ment period before the agency issues a rule. See 5 U.S.C. § 553. The notice must include “the terms or substance of the proposed rule or a description of the subjects and issues involved.” § 553(b)(3) (emphasis added). After issuing a notice and allowing time for interested persons to comment, the agency must issue a “concise general statement” of the rule’s “basis and purpose” along with the final rule. § 553(c). One searches the text of APA § 553 in vain for a requirement that an agency disclose other agency information as part of the notice or later in the rule-making process.

But beginning with the Portland Cement case in 1973 — which was decided in an era when this Court created several procedural requirements not rooted in the text of the APA — our precedents have required agencies to disclose, in time to allow for meaningful comment, technical data or studies on which they relied in formulating proposed rules. See Portland Cement Ass’n v. Ruckelshaus, 486 F.2d 375, 392-93 (D.C.Cir.1973); see also Chamber of Commerce v. SEC, 443 F.3d 890, 899 (D.C.Cir.2006); Connecticut Light & Power Co. v. Nuclear Regulatory Comm’n, 673 F.2d 525, 530-31 & n. 6 (D.C.Cir.1982).

The majority opinion concludes that the Portland Cement requirement does not allow the FCC to redact portions of studies when the studies otherwise must be disclosed under Portland Cement. I accept the majority opinion’s conclusion as the best interpretation of our Portland Cement line of decisions.

I write separately to underscore that Portland Cement stands on a shaky legal foundation (even though it may make sense as a policy matter in some cases). Put bluntly, the Portland Cement doctrine cannot be squared with the text of § 553 of the APA. And Portland Cement’s lack of roots in the statutory text creates a serious jurisprudential problem because the Supreme Court later rejected this kind of freeform interpretation of the APA. In its landmark Vermont Yankee decision, which came a few years after Portland Cement, the Supreme Court forcefully stated that the text of the APA binds courts: Section 553 of the APA “established the maximum procedural requirements which Congress was willing to have the courts impose upon agencies in conducting rulemaking procedures.” Vermont Yankee Nuclear Power Corp. v. Natural Res. Def. Council, Inc., 435 U.S. 519, 524, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978) (emphasis added); see also Antonin Scalia, Vermont Yankee: The APA, the D.C. Circuit, and the Supreme Court, 1978 Sup. Ct. Rev. 345, 395-96 (Vermont Yankee was “a major watershed. It has put to rest the notion that the courts have a continuing ‘common-law’ authority to impose procedures not required by the Constitution in the areas covered by the APA.”).

Because there is “nothing in the bare text of § 553 that could remotely give rise” to the Portland Cement requirement, some commentators argue that Portland Cement is “a violation of the basic principle of Vermont Yankee that Congress and the agencies, but not the courts, have the power to decide on proper agency procedures.” Jack M. Beermann & Gary Lawson, Reprocessing Vermont Yankee, 75 Geo. Wash. L. Rev. 856, 894 (2007). At the very least, others say, the Supreme Court’s decision in Vermont Yankee raises “a question concerning the continuing vitality of the Portland Cement requirement that an agency provide public notice of the data on which it proposes to rely in a rulemaking.” 1 RichaRd J. PieRoe, AdministRAtive Law Treatise § 7.3, at 435 (4th ed.2002).

I do not believe Portland Cement is consistent with the text of the APA or Vermont Yankee. In the wake of Vermont *247 Yankee, however, this Court has repeatedly continued to apply Portland Cement (albeit without analyzing the tension between Vermont Yankee and Portland Cement ). In these circumstances, this three-judge panel must accept Portland Cement as binding precedent and must require the FCC to disclose the redacted portions of its staff studies. I therefore concur in the judgment as to Part IIB of the majority opinion.

II

The majority opinion also holds that the FCC did not provide a sufficiently “reasoned explanation” for its choice of an extrapolation factor to measure interference from broadband over power lines. I disagree.

The FCC estimates the radio-frequency interference caused by broadband over power lines to determine whether broadband over power lines will cause unlawful “harmful interference” to licensed radio operators. In selecting guidelines to estimate interference, the FCC has adhered to a pre-existing “extrapolation factor” that it already used to estimate interference caused by broadband over power lines and other regulated technologies. Amendment of Part 15 Regarding New Requirements and Measurement Guidelines for Access Broadband Over Power Line Systems, Carrier Current Systems, Report and Order, 19 F.C.C.R. 21265, 21310 ¶ 109 (2004). The National Telecommunications and Information Administration, a federal agency within the Department of Commerce, provided data supporting the existing extrapolation factor. Id. Another commenter, Ameren Energy Communications, also advocated this measurement. Id. By contrast, Aeronautical Radio, Inc. and ARRL, the petitioner here, sought the use of a different extrapolation factor. Id.

Given the “lack of conclusive experimental data” and disagreements among eom-menters, the Commission stated that it would continue to use the existing extrapolation factor. Id. The Commission added that it would “revisit” the issue if new information became available. Id.

In its reconsideration order, after receiving new studies conducted in the United Kingdom, the Commission found that those studies did not support a change to the extrapolation factor in light of the factual disagreements and uncertainty discussed in the initial order. The Commission stated: “No new information has been submitted that would provide a convincing argument for modifying this requirement at this time.” Amendment of Part 15 Regarding New Requirements and Measurement Guidelines for Access Broadband Over Power Line Systems, Mem. Op. and Order, 21 F.C.C.R. 9308, 9317-18 ¶26 (2006).

Applying the State Farm doctrine, the majority opinion remands for further explanation from the FCC. See Motor Vehicle Mfrs. Ass’n v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983). Although I recognize that the reasoned decisionmaking requirement of State Farm is sometimes more art than science, more Rorschach than rule of law, I do not agree with the majority opinion that the FCC needs to say more in this case.

Section 706 provides that courts set aside agency rules that are “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A). Arbitrary-and-capricious review under § 706 is “narrow,” and “a court is not to substitute its judgment for that of the agency.” State Farm, 463 U.S. at 43, 103 S.Ct. 2856. A reviewing court “may not set aside an agency rule that is rational, based on consideration of the relevant *248factors, and within the scope of the authority delegated to the agency by the statute.” Id. at 42, 103 S.Ct. 2856. We thus must “ ‘uphold a decision of less than ideal clarity if the agency’s path may reasonably be discerned.’ ” Id. at 43, 103 S.Ct. 2856 (quoting Bowman Transp. Inc. v. Arkansas-Best Freight Sys., Inc., 419 U.S. 281, 286, 95 S.Ct. 438, 42 L.Ed.2d 447 (1974)).

In my judgment, the FCC’s explanation in this case suffices. The FCC’s choice of extrapolation factor to estimate interference from broadband over power lines is a highly technical determination committed to the Commission’s expertise and policy discretion. Cf. Mobile Relay Assocs. v. FCC, 457 F.3d 1, 8 (D.C.Cir.2006); Teledesic LLC v. FCC, 275 F.3d 75, 84 (D.C.Cir.2001); American Iron & Steel Inst. v. EPA, 115 F.3d 979, 1004 (D.C.Cir.1997); MCI Cellular Tel. Co. v. FCC, 738 F.2d 1322, 1333 (D.C.Cir.1984). In its two orders, the Commission reasonably stated that the evidence submitted by commenters was conflicting, that the new evidence submitted on reconsideration was not sufficiently conclusive to require a change, and that it therefore would continue (for now) to adhere to its longstanding extrapolation factor with respect to broadband-overpower-lines technology. This explanation makes sense. And State Farm does not require a word count; a short explanation can be a reasoned explanation.

* * *

The two issues on which I write separately prompt a broader observation. In appropriate cases or controversies, courts of course must be vigilant in ensuring that agencies adhere to the plain text of statutes imposing substantive and procedural obligations. See, e.g., Chevron U.S.A. Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 842-43 & n. 9, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984) (Chevron “Step 1”); Vermont Yankee Nuclear Power Corp. v. Natural Res. Def. Council, Inc., 435 U.S. 519, 558, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978). But it bears repeating that § 553 of the APA requires only a notice providing a “description of the subjects and issues involved”; time for interested persons to comment; and a “concise general statement” of the rule’s “basis and purpose.” 5 U.S.C. § 553. Courts have incrementally expanded those APA procedural requirements well beyond what the text provides. And courts simultaneously have grown State Farm’s “narrow” § 706 arbitrary- and-capricious review into a far more demanding test. Application of the beefed-up arbitrary-and-capricious test is inevitably if not inherently unpredictable' — so much so that, on occasion, the courts’ arbitrary-and-capricious review itself appears arbitrary and capricious.

Over time, those twin lines of decisions have gradually transformed rulemaking— whether regulatory or deregulatory rule-making — from the simple and speedy practice contemplated by the APA into a laborious, seemingly never-ending process. The judicially created obstacle course can hinder Executive Branch agencies from rapidly and effectively responding to changing or emerging issues within their authority, such as consumer access to broadband, or effectuating policy or philosophical changes in the Executive’s approach to the subject matter at hand. The trend has not been good as a jurisprudential matter, and it continues to have significant practical consequences for the operation of the Federal Government and those affected by federal regulation and deregulation.

2.2.3.2.1.2 Shortcuts and Short Circuits 2.2.3.2.1.2 Shortcuts and Short Circuits

2.2.3.2.1.2.1 Rule making 2.2.3.2.1.2.1 Rule making

(a) This section applies, according to the provisions thereof, except to the extent that there is involved—

(1) a military or foreign affairs function of the United States; or

(2) a matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts.


(b) General notice of proposed rule making shall be published in the Federal Register, unless persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law. The notice shall include—

(1) a statement of the time, place, and nature of public rule making 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.


Except when notice or hearing is required by statute, this subsection does not apply—

(A) to interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice; or

(B) when the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.


(c) After notice required by this section, the agency shall give interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity for oral presentation. After consideration of the relevant matter presented, the agency shall incorporate in the rules adopted a concise general statement of their basis and purpose. When rules are required by statute to be made on the record after opportunity for an agency hearing, sections 556 and 557 of this title apply instead of this subsection.

(d) The required publication or service of a substantive rule shall be made not less than 30 days before its effective date, except—

(1) a substantive rule which grants or recognizes an exemption or relieves a restriction;

(2) interpretative rules and statements of policy; or

(3) as otherwise provided by the agency for good cause found and published with the rule.


(e) Each agency shall give an interested person the right to petition for the issuance, amendment, or repeal of a rule.

Notes

Historical and Revision Notes
DerivationU.S. CodeRevised Statutes and

Statutes at Large

5 U.S.C. 1003. June 11, 1946, ch. 324, §4, 60 Stat. 238.

In subsection (a)(1), the words "or naval" are omitted as included in "military".

In subsection (b), the word "when" is substituted for "in any situation in which".

In subsection (c), the words "for oral presentation" are substituted for "to present the same orally in any manner". The words "sections 556 and 557 of this title apply instead of this subsection" are substituted for "the requirements of sections 1006 and 1007 of this title shall apply in place of the provisions of this subsection".

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Codification

Section 553 of former Title 5, Executive Departments and Government Officers and Employees, was transferred to section 2245 of Title 7, Agriculture.

Executive Order No. 12044

Ex. Ord. No. 12044, Mar. 23, 1978, 43 F.R. 12661, as amended by Ex. Ord. No. 12221, June 27, 1980, 45 F.R. 44249, which related to the improvement of Federal regulations, was revoked by Ex. Ord. No. 12291, Feb. 17, 1981, 46 F.R. 13193, formerly set out as a note under section 601 of this title.

2.2.3.2.1.2.2 Air Transport Ass'n of America v. Department of Transportation 2.2.3.2.1.2.2 Air Transport Ass'n of America v. Department of Transportation

900 F.2d 369

AIR TRANSPORT ASSOCIATION OF AMERICA, Petitioner, v. DEPARTMENT OF TRANSPORTATION; Samuel Skinner, Secretary of Transportation; Federal Aviation Administration; and James B. Busey, Administrator, Respondents.

No. 89-1195.

United States Court of Appeals, District of Columbia Circuit.

Argued Feb. 2, 1990.

Decided April 13, 1990.

As Amended April 27, 1990.

*387Michael S. Sundermeyer, with whom Steven A. Solomon, Washington, D.C., was on the brief, for petitioner.

Bruce G. Forrest, Attorney, Dept, of Justice, with whom Stuart M. Gerson, Asst. Atty. Gen., Anthony J. Steinmeyer and John P. Schnitker, Attorneys, Dept, of Justice, Gregory S. Walden, Chief Counsel, John H. Cassady, Acting Deputy Chief Counsel, Allan H. Horowitz, Washington, D.C., and Cynthia A. Dominick, Attorneys, F.A.A., were on the brief, for respondents.

Robert M. Lichtman, Washington, D.C., for National Air Carrier Ass’n, Inc., et. al, Gary Green and Jerry D. Anker, Washington, D.C., for Air Line Pilots Ass’n, John E. Gillick and Robert Reed Gray, Washington, D.C., for America West Airlines, Inc., John S. Yodice, Washington, D.C., and Donald L. Hardison, for Aircraft Owners and Pilots Ass’n, Alan Armstrong for Albert O. McCauley, were on the joint brief, for intervenors National Air Carrier Ass’n, Inc., et al.

Before MIKYA, HARRY T. EDWARDS and SILBERMAN, Circuit Judges.

Opinion for the Court filed by Circuit Judge HARRY T. EDWARDS.

Dissenting opinion filed by Circuit Judge SILBERMAN.

HARRY T. EDWARDS, Circuit Judge:

The issue in this case is whether respondent governmental agencies (collectively “Federal Aviation Administration” or “FAA”) were obliged to engage in notice and comment procedures before promulgating a body of regulations governing the adjudication of administrative civil penalty actions. See 53 Fed.Reg. 34,646 (1988) (codified at 14 C.F.R. pt. 13) (“Penalty Rules” or “Rules”). The FAA issued the Penalty Rules pursuant to a temporary enabling statute intended to augment the agency’s authority to enforce compliance with aviation safety standards. See 49 U.S.C. app. § 1475 (Supp. V 1987). Petitioner Air Transport Association of America (“Air Transport”) contends that the FAA’s failure to comply with the notice and comment requirements of the Administrative Procedure Act (“APA”), see 5 U.S.C. § 553 (1988), renders the Penalty Rules invalid. *388The FAA maintains that it was justified in dispensing with notice and comment under the “rules of agency organization, procedure, or practice” and “good cause” exceptions to section 553. See id. § 553(b)(AHB).

We grant the petition for review. It is well established that the exemption under section 553(b)(A), for “rules of agency organization, procedure, or practice,” does not apply to agency action that “substantially alterfs] the rights or interests of regulated” parties. American Hosp. Ass’n v. Bowen, 834 F.2d 1037, 1041 (D.C.Cir.1987). The Penalty Rules fall outside the scope of the exception because they substantially affect civil penalty defendants’ “right to avail [themselves] of an administrative adjudication.” National Motor Freight Traffic Ass’n v. United States, 268 F.Supp. 90, 96 (D.D.C.1967) (three-judge panel), aff'd mem., 393 U.S. 18, 89 S.Ct. 49, 21 L.Ed.2d 19 (1968). Moreover, because we find that the time constraints of the enabling statute did not impose an insurmountable obstacle to complying with the applicable notice and comment requirements of the APA, we also reject the FAA’s reliance on the “good cause” exception under section 553(b)(B). Consequently, we hold that the Penalty Rules are invalid and that the FAA may not initiate new prosecutions until it has complied with the procedural requirements of the APA.

I.Background

In December of 1987, Congress enacted a series of amendments to the Federal Aviation Act relating to civil penalties. See Pub.L. No. 100-223, § 204, 101 Stat. 1519 (codified in scattered sections of 49 U.S.C. app.). Among other things, these amendments raised to $10,000 the maximum penalty for a single violation of aviation safety standards, see 49 U.S.C. app. § 1471(a)(1) (Supp. V 1987), and established a “demonstration program” authorizing the FAA to prosecute and adjudicate administrative penalty actions involving less than $50,000, 49 U.S.C. app. § 1475 (Supp. V 1987).1 Under the terms of the demonstration program, the FAA was granted the authority to assess administrative penalties for a two-year period beginning on December 30, 1987, see id. § 1475(d)(4), and was to report to Congress on the effectiveness of the program within eighteen months, see Pub.L. No. 100-223, § 204(i)(2), 101 Stat. 1521.

Congress’ goal in enacting this legislation was to strengthen the enforcement powers of the Federal Aviation Administration. Before the 1987 amendments, the FAA could propose a maximum civil penalty of only $1,000 per violation and had no enforcement authority of its own.2 When an alleged violator disputed a penalty, the FAA was obliged to refer the ease to the United States Attorney’s office for prosecution in federal district court; relatively few such cases were prosecuted, however, because of competing work obligations facing U.S. Attorneys. See 133 Cong.Rec.

515.294 (daily ed. Oct. 28, 1987) (statement of Sen. Wilson); 53 Fed.Reg. 34,646 (1988). Understandably, Congress did not view this as a particularly effective system for assuring compliance with aviation safety standards. By raising the maximum penalty and giving the FAA the power to prosecute penalty actions administratively, Congress sought to “close the holes in the FAA’s safety net” and thereby “provide[] an incentive for airlines to ensure that [their safety] systems are maintained at the highest of standards.” 133 Cong.Rec.

515.294 (statement of Sen. Wilson).3

*389At the same time, however, Congress remained attentive to the adjudicative rights of civil penalty defendants. Congress provided that the FAA could assess a civil penalty “only after notice and opportunity for a hearing on the record in accordance with section 554 of [the APA].” 49 U.S.C. app. § 1475(d)(1). As the conference report accompanying section 1475 explained, the express incorporation of the APA’s procedural protections was designed to achieve two purposes:

First, the requirement is intended to advise the FAA of the appropriate level of procedural formality and attention to the rights of those assessed civil penalties under this demonstration program. Secondly, this requirement is intended to provide reasonable assurance to the potential subjects of such civil penalties that their due process rights are not compromised.

H.R. Conf.Rep. No. 484, 100th Cong., 1st Sess. 81 (1987).

Approximately nine months after enactment of section 1475, the FAA promulgated the Penalty Rules. See 53 Fed.Reg. 34,646 (1988) (codified at 14 C.F.R. pt. 13). Effective immediately upon their issuance, the Penalty Rules established a schedule of civil penalties, including fines of up to $10,-000 for violations of the safety standards of the Federal Aviation Act and related regulations. See 14 C.F.R. § 13.16(a)(3) (1989). The Penalty Rules also established a comprehensive adjudicatory scheme providing for formal notice, settlement procedures, discovery, an adversary hearing before an AU and an administrative appeal. See id. §§ 13.201-13.235. In explaining why it dispensed with prepromulgation notice and comment, the FAA emphasized the procedural character of the Penalty Rules and the time constraints of section 1475. See 53 Fed.Reg. 34,646, 34,652-53. The FAA did respond to post promulgation comments but declined to make any amendments to the Rules. See 54 Fed.Reg. 11,-914 (1989).

Congressional oversight of the section 1475 demonstration program is ongoing. In its report to Congress, the FAA vigorously defended the Penalty Rules. See Respondent’s Supplemental Addendum at 1-54. Others, including commercial and noncommercial aviators and the Administrative Law Section of the American Bar Association were less enthusiastic, criticizing what they perceived to be the Rules’ systematic procedural bias in favor of the FAA. See Petitioner’s Supplemental Addendum 2-40. In response to the controversy, Congress declined FAA’s request to extend section 1475 by two years, and instead extended the statute by only four months. See Pub.L. No. 101-236, § 1,103 Stat. 2060 (1989). Supporters of this legislation emphasized that extension “should not be viewed as approval of the FAA’s procedures” but only “as a way to preserve the status quo while” Congress “review[s] ... how the major concerns coming from every segment of the aviation community are going to be resolved.” 135 Cong.Rec. H8917 (daily ed. Nov. 17, 1989) (statement of Rep. Hammerschmidt); id. (statement of Rep. Valentine). Indeed, on March 6, 1990 — approximately one month after this case was argued — the FAA issued a notice of proposed rulemaking announcing the agency’s intention to amend some of the individual Rules that have provoked the most controversy. See 55 Fed.Reg. 7980 (1990).

In its petition for review, Air Transport raises two challenges to the Penalty Rules.4 First, it attacks the procedural adequacy of the Rules, arguing that the FAA was obliged by section 553 of the APA to permit notice and comment before the Rules became effective. Second, Air Transport attacks the substantive adequacy of the Rules on the ground that they establish adjudicatory procedures inconsistent with section 554 of the APA. In a previous order, we deferred consideration of the FAA’s motion to dismiss the petition on ripeness grounds and directed the par*390ties to address this issue in their briefs on the merits. We now find that Air Transport’s procedural challenge to the Penalty Rules is ripe for review and grant the petition on that ground.5

II. Analysis

A. Ripeness

The FAA contends that, under the ripeness doctrine, Abbott Labs. v. Gardner, 387 U.S. 136, 149, 87 S.Ct. 1507, 1515, 18 L.Ed.2d 681 (1967), this court should defer review of the Penalty Rules until after the agency has had an opportunity to apply the Rules in the concrete settings of administrative adjudications. Compare Webb v. Department of Health and Human Servs., 696 F.2d 101, 107-08 (D.C.Cir.1982) (fact-specific challenge to regulation not ripe before regulation is applied) with Better Gov’t Ass’n v. Department of State, 780 F.2d 86, 92-93 (D.C.Cir.1986) (purely legal challenge is ripe before application). In other words, the agency claims that Air Transport’s preenforcement challenge to the substance of the Penalty Rules should be barred as unripe. We need not reach that issue, however, because Air Transport’s petition for review raises two issues: (1) the claim that the agency was required to use notice and comment rulemaking in promulgating the Penalty Rules (the “procedural” challenge), and (2) the claim that, whether or not notice and comment was required, certain of the Penalty Rules are unlawful as promulgated (the “substantive” challenge). Because we find merit in the procedural challenge, we need not address whether Air Transport’s substantive challenge is ripe.

As FAA counsel acknowledged at oral argument, the first of the two claims, the procedural challenge, is clearly ripe for review. In applying the ripeness doctrine, we ask first whether the challenge in question is “purely legal”; if so, it is presumptively reviewable. See, e.g., Better Gov’t Ass’n, 780 F.2d at 92. Next “we determine whether the court or the agency would benefit from the postponement of review until the agency action or policy in question has assumed either a final or more concrete form.” Id. Only if these inquiries raise significant “doubts about the fitness of the issue for judicial resolution” do we look to the “hardship” prong of the ripeness test, considering whether the effect of the challenged action on the petitioner’s primary conduct outweighs the institutional interests in deferring review. Consolidated Rail Corp. v. United States, 896 F.2d 574, 577 (D.C.Cir.1990); see Askins v. District of Columbia, 877 F.2d 94, 97-98 (D.C.Cir. 1989).

Applying these criteria, we have no trouble concluding that Air Transport’s procedural challenge to the Penalty Rules is ripe. The challenge is purely legal; whether the Penalty Rules are subject to the APA's notice and comment procedures can be determined solely from the text, the legislative history and the judicial interpretations of section 553. See Better Gov’t Ass’n, 780 F.2d at 92. Furthermore, there are no judicial or agency interests militating in favor of deferring review. Neither the application of the Penalty Rules nor even the possible amendment of individual Rules will have any bearing on whether the Rules as a whole were unlawfully promulgated.6 And until that question is settled, it will provide a possible basis for review in every penalty action adjudicated by the FAA.

Thus, “in light of our conclusion that this matter is clearly fit to be heard, we need not consider whether petitioners would suffer any hardship from our postponing its resolution.” Consolidated Rail Corp., supra, 896 F.2d at 577-78. Accordingly, we *391hold that petitioner’s procedural challenge is ripe for review.

B. The Merits

Section 553 of the APA obliges an agency to provide notice and an opportunity to comment before promulgating a final rule.7 No question exists that the Penalty Rules fall within the scope of the APA’s rulemaking provisions. See 5 U.S.C. § 551(4) — (5) (1988). Nonetheless, the FAA maintains that the Penalty Rules were exempt from the notice and comment requirements for two, independent reasons: first, because they are “rules of agency organization, procedure, or practice,” id. § 553(b)(A); and second, because the time constraints of section 1475 gave the FAA “good cause” to find that prepromulgation notice and comment would be “impracticable, unnecessary, or contrary to the public interest,” id. § 553(b)(B). The FAA also argues that its entertainment of post promulgation comments cured any violation of section 553.

Section 553’s notice and comment requirements are essential to the scheme of administrative governance established by the APA. These procedures reflect Congress’ “judgment that ... informed administrative decisionmaking require[s] that agency decisions be made only after affording interested persons” an opportunity to communicate their views to the agency. Chrysler Corp. v. Brown, 441 U.S. 281, 316, 99 S.Ct. 1705, 1725, 60 L.Ed.2d 208 (1979). Equally important, by mandating “openness, explanation, and participatory democracy” in the rulemaking process, these procedures assure the legitimacy of administrative norms. Weyerhaeuser Co. v. Costle, 590 F.2d 1011, 1027 (D.C.Cir. 1978). For these reasons, we have consistently afforded a narrow cast to the exceptions to section 553, permitting an agency to forgo notice and comment only when the subject matter or the circumstances of the rulemaking divest the public of any legitimate stake in influencing the outcome. See, e.g., Batterton v. Marshall, 648 F.2d 694, 704 (D.C.Cir.1980); American Bus Ass’n v. United States, 627 F.2d 525, 528 (D.C.Cir.1980). In the instant case, because the Penalty Rules substantially affected civil penalty defendants’ right to avail themselves of an administrative adjudication, we cannot accept the FAA’s contention that the Rules could be promulgated without notice and comment.

1. “Rules of Agency Organization, Procedure, or Practice”

The FAA argues that the Penalty Rules are exempt as “rules of agency organization, procedure, or practice” because they establish “procedures” for adjudicating civil penalty actions. According to the FAA, it would have been obliged to permit public participation in the rulemaking process only if the Penalty Rules affected aviators’ “substantive” obligations under the Federal Aviation Act. We find this analysis unpersuasive.

Our cases construing section 553(b)(A) have long emphasized that a rule does not fall within the scope of the exception mere*392ly because it is capable of bearing the label “procedural.” See, e.g., Reeder v. FCC, 865 F.2d 1298 (D.C.Cir.1989) (per curiam). In Reeder, we examined a body of rules governing the submission of “counterproposals” to the allotment of FM radio frequencies by the Federal Communications Commission. Although the rules purported merely to define the procedures for the submission of counterproposals, we recognized that these procedures in fact foreclosed agency consideration of counterproposals based on the upgrading of existing FM stations. See id. at 1305. Because the agency previously did permit applicants to submit counterproposals based on upgrading plans, we held that the agency should have engaged in notice and comment before depriving applicants’ of this right. See id.; see also Batterton, 648 F.2d at 707-08 (procedures affecting entitlement to federal grants not exempt); Picfcus v. United States Bd. of Parole, 507 F.2d 1107, 1113 (D.C.Cir.1974) (procedures affecting parole determinations).

Rather than focus on whether a particular rule is “procedural” or “substantive,” these decisions employ a functional analysis. Section 553(b)(A) has been described as essentially a “housekeeping” measure, Chrysler Corp. v. Brown, 441 U.S. 281, 310, 99 S.Ct. 1705, 1721, 60 L.Ed.2d 208 (1979), “[t]he distinctive purpose of ... [which] is to ensure ‘that agencies retain latitude in organizing their internal operations,”’ American Hosp. Ass’n v. Bowen, 834 F.2d 1037, 1047 (D.C.Cir.1987) (quoting Batterton, 648 F.2d at 707) (emphasis added). Where nominally “procedural” rules “encode[] a substantive value judgment” or “substantially alter the rights or interests of regulated” parties, however, the rules must be preceded by notice and comment. Id. at 1047, 1041.

The Penalty Rules fall outside the scope of section 553(b)(A) because they substantially affect a civil penalty defendant’s right to an administrative adjudication. Under both the due process clause, see Lipke v. Lederer, 259 U.S. 557, 562, 42 S.Ct. 549, 551, 66 L.Ed. 1061 (1922), and the APA, see 5 U.S.C. §§ 554, 556 (1988), a party has a right to notice and a hearing before being forced to pay a monetary penalty. Congress expressly directed the FAA to incorporate these rights into its civil penalty program. See 49 U.S.C. app. § 1475(d)(1); H.R. Conf.Rep. No. 484,100th Cong., 1st Sess. 81 (1987). In implementing this mandate, the FAA made discretionary — indeed, in many cases, highly contentious — choices concerning what process civil penalty defendants are due. Each one of these choices “encodefd] a substantive value judgment,” American Hosp. Ass’n, 834 F.2d at 1047, on the appropriate balance between a defendant’s rights to adjudicatory procedures and the agency’s interest in efficient prosecution.8 The FAA was no less obliged to engage in notice and comment before taking action affecting these adjudicatory rights than it would have been had it taken action affecting aviators’ “substantive” obligations under the Federal Aviation Act. See, e.g., National Ass’n v. Schweiker, 690 F.2d 932, 949 (D.C.Cir.1982) (notice and comment required for rules “eliminating the qualified right” to present reimbursement claims to agency secretary rather than intermediary), cert. denied, 459 U.S. 1205, 103 S.Ct. 1193, 75 L.Ed.2d 438 (1983); Brown Express, Inc. v. United States, 607 F.2d 695, 702-03 (5th Cir.1979) (notice and comment required for rules eliminating notice of award of temporary carrier licenses).

Indeed, this is the teaching of the seminal decision in National Motor Freight Traffic Ass’n v. United States, 268 F.Supp. 90 (D.D.C.1967) (three-judge panel), aff'd mem., 393 U.S. 18, 89 S.Ct. 49, 21 L.Ed.2d 19 (1968). In National Motor Freight, the court9 reviewed a body of Interstate Com*393merce Commission rules establishing a scheme for the administrative adjudication of carrier overcharge claims. Rejecting the claim that the rules merely established procedures for implementing substantive statutory rights, the court held that the agency’s decision to establish “[a] right to avail oneself of an administrative adjudication” was itself one that the APA required to be open to public participation. Id. at 95-96. National Motor Freight was summarily affirmed by the Supreme Court, and remains binding precedent. See 1 K. Davis, Administrative Law Treatise § 6.29, at 589 (2d ed. 1978) (describing National Motor Freight as “[t]he most authoritative decision” on the scope of section 553(b)(A)). In our view, it is controlling in the case before us.

The cases cited by the FAA do not suggest a contrary conclusion. The FAA puts its primary emphasis on American Hospital Association. At issue in that case were a series of agency directives and manuals defining the “enforcement strategy” of review boards assigned to investigate Medicare reimbursement claims by hospitals. See 834 F.2d at 1049-52. We held that these materials were covered by section 553(b)(A) because we recognized that the public has no legitimate interest in influencing an agency’s “discretionary deployment of enforcement resources,” id. at 1057 n. 4 — a classic “internal” matter, essential to how an agency constitutes itself, cf. Heckler v. Chaney, 470 U.S. 821, 831-32, 105 S.Ct. 1649, 1655-56, 84 L.Ed.2d 714 (1985). Nothing in American Hospital Association detracts from the principle that the public does have a legitimate interest in participating in agency decisions affecting statutory and constitutional rights “to avail oneself of an administrative adjudication.” National Motor Freight, 268 F.Supp. at 96.10

Also inapposite are various decisions in which we have applied section 553(b)(A) to rules that regulate such matters as the timing of applications for benefits, see, e.g., Lamoille Valley R. Co. v. ICC, 711 F.2d 295, 328 (D.C.Cir.1983); Ranger v. FCC, 294 F.2d 240, 243-44 (D.C.Cir.1961), or the timing of the agency’s processing of such applications, Neighborhood TV Co., Inc. v. FCC, 742 F.2d 629, 637-38 (D.C.Cir.1984). The rules at issue in these cases did affect “the manner in which the parties present themselves or their viewpoints to the agency,” Batterton, 648 F.2d at 707, but they did not affect any component of a party’s statutory or constitutional right to avail himself of an administrative adjudication. They were all cases, in short, in which “the need for public participation” in the rule-making process was “too small to warrant it.” Id. at 704.11 The Penalty Rules, in contrast, affect the entire range of adjudicatory rights guaranteed by the due process clause, the APA and section 1475(d)(1) —matters far too important to be withdrawn from public deliberation. See National Motor Freight, 268 F.Supp. at 96-97.12

In criticizing our reliance on National Motor Freight, the dissent argues that *394agency action that is expressly exempt under the APA is not subject to notice and comment rulemaking simply because it has a “substantial impact” on regulated parties. We agree with this assertion, but it is irrelevant because it begs the question whether the Penalty Rules are included within the exemption of section 553(b)(A). We rely on National Motor Freight not to show that the Penalty Rules have a “substantial impact” on aviators, but to show that rules affecting the right to avail oneself of an administrative adjudication are not within the express terms of section 553(b)(A). No case in this circuit has ever suggested otherwise.

The dissent also contends that we have “obliterated” the distinction between substance and procedure. But, as the case law clearly illustrates, there is no such “distinction" to obliterate for purposes of section 553(b)(A). The dissent refuses to come to terms with the precedent characterizing this exception to notice and comment rule-making as a mere “housekeeping” measure, Brown, 441 U.S. at 310, 99 S.Ct. at 1721, applicable to rules “ ‘organizing [agencies'] internal operations.’ ” American Hosp. Ass’n, 834 F.2d at 1047 (quoting Batterton, 648 F.2d at 707) (emphasis added). The dissent’s infusion of a rigid “procedure” — “substance” distinction is not only inconsistent with our precedent, see, e.g., Reeder, 865 F.2d at 1305; Batterton, 648 F.2d at 707-08, but is also inconsistent with the statutory text. Section 553(b)(A) does not exempt “rules of procedure” per se, but rather “rules of agency organization, procedure, or practice.” The dissent’s exclusive focus on the word “procedure” thus violates the well established principle of construction “that ‘words grouped in a list should be given related meaning.’ ” Dole v. United Steelworkers, — U.S. -, 110 S.Ct. 929, 935, 108 L.Ed.2d 23 (1990) (quoting Massachusetts v. Morash, — U.S.-, 109 S.Ct. 1668, 1673, 104 L.Ed.2d 98 (1989)).13

In sum, the FAA’s contention that it did not affect the “substantive” obligations of aviators under the Federal Aviation Act is irrelevant. “The characterizations ‘substantive’ and ‘procedural’ — no more here than elsewhere in the law — do not guide inexorably to the right result, nor do they really advance the inquiry very far.” National Motor Freight, 268 F.Supp. at 96. In using the terms “rules of agency organization, procedure, or practice,” Congress intended to distinguish not between rules affecting different classes of rights —“substantive” and “procedural” — but rather to distinguish between rules affecting different subject matters —“the rights or interests of regulated” parties, American Hosp. Ass’n, 834 F.2d at 1041, and agencies’ “ ‘internal operations,’ ” id. at 1047 (quoting Batterton, 648 F.2d at 707). Because the Penalty Rules substantially affect civil penalty defendants’ “right to avail [themselves] of an administrative adjudication,” members of the aviation community had a legitimate interest in participating in the rulemaking process. National Motor Freight, 268 F.Supp. at 96.

2. “Good Cause”

We also disagree that the two-year duration of section 1475’s demonstra*395tion program furnished the FAA with “good cause” to dispense with notice and comment procedures. Like the other exceptions, the good cause exception is to “be narrowly construed and only reluctantly countenanced.” New Jersey v. EPA, 626 F.2d 1038, 1045 (D.C.Cir.1980). In particular, we have explained that statutory time limits do not ordinarily excuse compliance with the APA’s procedural requirements. In New Jersey v. EPA, we reviewed a set of regulations issued pursuant to a six-month time limit. Adopting the reasoning of two of our sister circuits, we held that the statutory deadline did not constitute good cause to forgo notice and comment absent “ ‘any express indication’ ” by Congress to this effect. Id. at 1043 (quoting Sharon Steel Corp. v. EPA, 597 F.2d 377, 380 (3d Cir.1979)). See also Council of Southern Mountains, Inc. v. Donovan, 653 F.2d 573, 581 (D.C.Cir.1981) (“‘[T]he mere existence of deadlines for agency action ... [can] not in itself constitute good cause for a § 553(b)(B) exception.’ ”) (quoting United States Steel Corp. v. United States EPA, 595 F.2d 207, 213 (5th Cir.), reh’g granted in part on other grounds, 598 F.2d 915 (5th Cir.1979)).

New Jersey v. EPA is controlling here. Congress did not express an intention to relieve the FAA of the legal obligation to engage in notice and comment procedures before promulgation of the Penalty Rules. Indeed, section 1475 did not even set a formal deadline for implementation of the agency’s authority to assess civil penalties. It is true that the two-year duration of the “demonstration program,” along with the associated eighteen-month reporting deadline, see Pub.L. No. 100-223, § 204(i)(2), 101 Stat. 1521, encouraged the FAA to act with reasonable dispatch. But we believe that the FAA, using expedited notice and comment procedures if necessary, could have realized this objective short of disregarding its obligations under the APA. Cf. Phillips Petroleum Co. v. United States EPA, 803 F.2d 545, 559 (10th Cir.1986) (noting broad discretion of agency to determine length of comment period).14

Finally, the FAA is foreclosed from relying on the good cause exception by its own delay in promulgating the Penalty Rules. The agency waited almost nine months before taking action to implement its authority under section 1475. At oral argument, counsel for the FAA conceded that the delay was largely a product of the agency’s decision to attend to other obligations. We are hardly in a position to second guess the FAA’s choices in determining institutional priorities. But insofar as the FAA’s own failure to act materially contributed to its perceived deadline pressure, the agency cannot now invoke the need for expeditious action as “good cause” to avoid the obligations of section 553(b). See National Ass’n of Farmworkers v. Marshall, 628 F.2d 604, 622 (D.C.Cir.1980).

3. Postpromulgation Comment

Finally, we reject the FAA’s contention that its response to comments after promulgation of the Penalty Rules cured any noncompliance with section 553. Section 553 provides “that notice and an opportunity for comment are to precede rule-making.” New Jersey v. EPA, 626 F.2d at 1050. We strictly enforce this requirement because we recognize that an agency is not likely to be receptive to suggested changes once the agency “put[s] its credibility on the line in the form of ‘final’ rules. People naturally tend to be more close-minded and defensive once they have made a ‘final’ determination.” National Tour Brokers Ass’n v. United States, 591 F.2d 896, 902 (D.C.Cir.1978). Although we have suggested that there might be circumstances in which “defects in an original notice [could] be cured by an adequate later notice” and opportunity to comment, we have emphasized that we could reach such a conclusion only upon a compelling showing that “the agency’s mind remain[ed] open enough at the later stage.” McLouth Steel Prods. Corp. v. Thomas, 838 F.2d 1317, 1323 (D.C. Cir.1988); see Reeder, 865 F.2d at 1304; see also New Jersey v. EPA, 626 F.2d at 1050 (noting “the presumption that post hoc *396comment was not contemplated by the APA and is generally not consonant with it”).

The FAA has not come close to overcoming the presumption of closed-mindedness in this case. It made no changes in the Penalty Rules in response to public comments. Nor did the language of FAA’s published replies suggest that the agency had afforded the comments particularly searching consideration. See McLouth Steel Prods. Corp., 838 F.2d at 1323.

Under the circumstances, then, we cannot discount the possibility that, had the FAA entertained comments before the Penalty Rules became final, it “might have decided [on] a different accommodation” of the agency's enforcement needs and civil penalty defendants’ procedural rights. Brown, 441 U.S. at 316, 99 S.Ct. at 1725. Indeed, if the FAA had entertained prepromulgation comments and taken those comments seriously, it might very well have averted the public outcry underlying the agency’s pending notice of proposed rule-making.

C. Remedy

Having determined that the FAA promulgated the Penalty Rules in violation of the APA’s notice and comment requirements, we must next consider the appropriate remedy. Ordinarily, when agency rules have been invalidated, the agency may not rely on those rules until they have been repromulgated in accordance with the APA. See, e.g., Reeder, 865 F.2d at 1306. We find such a disposition appropriate in this case; therefore, we hold that the FAA may not initiate new prosecutions under the Penalty Rules unless and until they are repromulgated. Insofar as the FAA’s pending notice of proposed rulemaking seeks public comment on the individual Rules that the agency intends to amend, the agency may rely on the outcome of that rulemaking as a partial fulfillment of this mandate.

This disposition, however, does not address the status of pending civil penalty actions. Counsel informed us that as of the date on which this case was argued, the FAA had initiated some 4,800 prosecutions, only a handful of which had progressed to the stage of an administrative hearing. The FAA remains free, of course, to refer these cases to the United States Attorney for prosecution in district court. See 49 U.S.C. app. §§ 1471(a)(1), 1487(a), (b). Nonetheless, we remain sympathetic to the FAA’s concern that leaving the agency with solely this option would oblige it to forfeit the considerable investment it has made in prosecuting these cases and would frustrate Congress’ intent to tighten enforcement by providing an administrative forum for their adjudication.

So long as it “act[s] within the bounds of the statute and without intruding upon the administrative province,” a court sitting in review of an administrative agency “may adjust its relief to the exigencies of the case in accordance with the equitable principles governing judicial action.” Ford Motor Co. v. NLRB, 305 U.S. 364, 373, 59 S.Ct. 301, 307, 83 L.Ed. 221 (1939); accord Indiana & Michigan Elec. Co. v. FPC, 502 F.2d 336, 346 (D.C.Cir.1974), cert. denied, 420 U.S. 946, 95 S.Ct. 1326, 43 L.Ed.2d 424 (1975). In the past, we have employed our broad remedial powers to minimize disruption of congressional and administrative objectives when invalidating a rule promulgated in violation of the APA’s notice and comment procedures. See, e.g., Rodway v. United States Dep’t of Agriculture, 514 F.2d 809, 817 (D.C.Cir.1975) (permitting agency to continue reliance on procedurally defective regulations implementing food stamp program pending new rulemaking).

We believe that the exercise of our equitable remedial powers is appropriate in this case as well. Consequently, although the FAA may not initiate new prosecutions under the Penalty Rules, we hold that the FAA is free to hold pending actions in abeyance while it engages in further rule-making. If and when the FAA promulgates a final rule for adjudication of administrative penalty actions, it may then resume prosecution of these cases. A defendant in such a case will also be free to raise the defense that the FAA could not have successfully prosecuted him but for the *397agency’s reliance on some aspect of the Penalty Rules abandoned in the new scheme. Finally, we take no position on whether parties whose cases have reached a final determination under the Penalty Rules may now raise the procedural invalidity of the Rules as a ground for seeking review.

III. Conclusion

An agency may dispense with the notice and comment requirements of section 553 “only where the need for public participation is overcome by good cause to suspend it, or where the need is too small to warrant it.” Batterton, 648 F.2d at 704 (footnote omitted). Neither of these conditions obtains in this case. The FAA did not have good cause to forgo notice and comment procedures, for nothing in section 1475 either excused or mandated noncompliance with section 553. Nor was this a case in which the need for public participation was “too small to warrant it”; civil penalty defendants have a legitimate interest in influencing agency action affecting their statutory and constitutional “right to avail [themselves] of an administrative adjudication.” National Motor Freight, 268 F.Supp. at 96. We therefore grant the petition for review and order the FAA not to initiate further prosecutions under the Penalty Rules until the agency has engaged in further rulemaking in accord with section 553. Nonetheless, pursuant to our remedial powers, we hold that the FAA is free to hold pending cases in abeyance and resume prosecution upon the repromulgation of a scheme for adjudicating administrative civil penalty actions under section 1475.

It is so ordered.

SILBERMAN, Circuit Judge,

dissenting:

I quite agree with the majority that the question whether the FAA was obliged to issue the proposed rules for notice and comment is ripe,1 but I disagree with the majority’s answer to the question because I think the rules fall, by ample measure, within the “procedural” exemption of section 553(b)(A), which exempts from notice and comment “rules of agency organization, procedure, or practice.” To be sure, the rules in this case could as well be described as rules of “practice” (covering the practice of the parties and attorneys before the FAA) and also in some respects rules of “agency organization” (dealing with the interrelationship between the administrative law judges and the Administrator). I use the term “procedure” here to cover all three concepts.

Lines between substance and procedure in various areas of the law are difficult to draw and therefore often perplex scholars and judges. But Congress, when it passed the Administrative Procedure Act, made that difference critical, and we are therefore obliged to implement a viable distinction between “procedural” rules and those that are substantive. See, e.g., Chrysler Corp. v. Brown, 441 U.S. 281, 301, 99 S.Ct. 1705, 1717, 60 L.Ed.2d 208 (1979) (“The central distinction among agency regulations found in the APA is between ‘substantive rules’ on the one hand and ‘interpretive rules, general statements of policy, or rules of agency organization, procedure, or practice’ on the other.”); Reeder v. FCC, 865 F.2d 1298, 1305 (D.C.Cir.1989); American Hospital Ass’n v. Bowen, 834 F.2d 1037, 1047 (D.C.Cir.1987); Neighborhood TV Co., Inc. v. FCC, 742 F.2d 629, 636-37 (D.C.Cir.1984); Lamoille Valley R.R. Co. v. ICC, 711 F.2d 295, 328 (D.C.Cir.1983); Batterton v. Marshall, 648 F.2d 694, 707 (D.C.Cir.1980). The majority opinion, in effect, abandons the effort, finding in Reed-er, American Hospital Ass’n, and Batter-ton a disposition to challenge the Supreme Court’s Chrysler Corp. analysis that I do not discern in those cases — or in any other. Accordingly, it will be impossible for any agency general counsel, in the future, safely to advise agency heads that a given set of proposed rules are procedural and do not have to be published for comment. Therefore, I dissent.

*398If we assume a spectrum of rules running from the most substantive to the most procedural, I would describe the former as those that regulate “primary conduct” in the way that term is used in Toilet Goods Ass’n, Inc. v. Gardner, 387 U.S. 158, 164, 87 S.Ct. 1520, 1524, 18 L.Ed.2d 697 (1967), and the latter are those furthest away from primary conduct. In other words, if a given regulation purports to direct, control, or condition the behavior of those institutions or individuals subject to regulation by the authorizing statute it is not procedural, it is substantive. At the other end of the spectrum are those rules, such as the ones before us in this case, which deal with enforcement or adjudication of claims of violations of the substantive norm but which do not purport to affect the substantive norm. These kinds of rules are, in my view, clearly procedural.

Rules are no less procedural because they are thought to be important or affect outcomes. Congress did not state, when it passed the APA, that all but insignificant rules must be put out for notice and comment.2 And to say, as does the majority, that the rules are covered by section 553’s notice and comment requirement because they “substantially affect a civil defendant’s right to an administrative adjudication,” Maj. Op. at 378 (emphasis in original), is, I respectfully submit, circular reasoning. It assumes the conclusion by describing petitioner’s interest in the agency’s adjudicatory procedures as if it were a substantive right. It also implicitly suggests that petitioner is correct on the merits in claiming the agency’s adjudicatory procedures are illegal. In determining whether particular rules must be put out for comment, surely the APA does not contemplate that a reviewing court would be influenced by whether or not it thought procedural rules were illegal. If, as argued by petitioner, the rules violate its rather ill-defined notion of administrative due process (petitioner’s primary claim on the merits seems to be that the rules offend the views of the American Bar Association) or even constitutional due process, that is an entirely separate matter which can be raised in a concrete setting.

Admittedly, not all our cases fit precisely along the continuum I described above. When an agency, rather than publishing rules which define a substantive norm to which regulated groups must conform or which flesh out enforcement procedures to effectuate such compliance, instead adopts rules dealing with the award of benefits, a slightly different but similar analysis is used to distinguish substantive from procedural rules. Sometimes the Government’s prospective award of benefits is actually designed, in part, to affect primary conduct — such as the standards used to determine whether to renew a broadcast license or the criteria employed to determine eligibility for unemployment insurance. But typically, benefits are bestowed in accordance with preexisting qualifications or status. In those circumstances, it cannot be said that the rules seek to condition primary conduct. We still think of such rules as substantive because defining eligibility for a benefit program is the very essence of the program. It is in this context that in Batterton v. Marshall, 648 F.2d 694 (D.C. Cir.1980), we said that substantive rules are those that affect the “rights and interests of parties.” See id. at 707. In Batterton, Maryland challenged the Department of Labor’s adoption of a new method of calculating local unemployment rates, which in turn determined the amount of CETA job training funds each state and locality would receive. We categorized those new rules as substantive because they altered the criteria by which Government benefits would be distributed rather than simply change the manner in which claimants for benefits communicated to the *399agency the nature of their substantive claim. See id. at 707-08. Similarly, in Reeder v. FCC, 865 F.2d 1298 (D.C.Cir. 1989), a radio station objected to the FCC’s adoption of rules governing counterproposals to the agency’s allotment of new FM channels throughout the United States. We decided that the procedural exemption was inapplicable because the FCC had altered its decisionmaking criteria for new station allotments. See id. at 1304-05.

In contrast, in Neighborhood TV Co., Inc v. FCC, 742 F.2d 629 (D.C.Cir.1984), we concluded that FCC rules that froze contested applications for “translators” (devices which amplify and rebroadcast television signals) and then processed rural applications before urban ones were procedural because the rules did not alter the standards by which those applications would be judged. See id. at 637-38. We also pointed out that our earlier decisions in Kessler v. FCC, 326 F.2d 673 (D.C.Cir. 1963), and Ranger v. FCC, 294 F.2d 240 (D.C.Cir.1961), found the challenged rules exempted from the notice and comment requirements precisely because the FCC rules did not regulate the radio stations’ right to broadcast its signals at a particular station. See Neighborhood TV, 742 F.2d at 638.

Of course, procedure impacts on outcomes and thus can virtually always be described as affecting substance, but to pursue that line of analysis results in the obliteration of the distinction that Congress demanded. We avoided that snare only recently in American Hosp. Ass’n v. Bowen, 834 F.2d 1037, 1047 (D.C.Cir.1987), where we held, over a strong dissent in many respects redolent of the majority opinion here, that HHS rules that set forth the enforcement priorities for peer review organizations (acting as agents to ensure medically reasonable and necessary hospital health care), as well as some adjudicatory procedures similar to those contained in the rules before us, did not have to be published for comment. Although it was argued that the procedures would affect hospital behavior by discouraging activity in the zone of an enforcement priority, we nevertheless held that the rules did not “encode[ ] a substantive value judgment or put[] a stamp of approval or disapproval on a given type of behavior.” Id. at 1047. We recognized that hospital costs would be affected by the enforcement scheme, but that was not enough to bring the rules out of the procedural safe harbor. See id. at 1051. The case at bar involves rules that are, a fortiori, procedural because, unlike in American Hospital Ass’n, it is not even argued here that primary behavior — the safety efforts of the airlines — is even affected by the adjudicatory rules.

Deviating from our previous and recent emphasis on primary conduct, the majority asserts that a proposed rule that allegedly infringes on “the right to avail oneself of an administrative adjudication” is “substantive.” See Maj. Op. at 377. But the quoted language comes from an old and now discredited district court case, National Motor Freight Traffic Ass’n v. United States, 268 F.Supp. 90 (D.D.C.1967), aff'd mem., 393 U.S. 18, 89 S.Ct. 49, 21 L.Ed.2d 19 (1968). The Supreme Court summarily affirmed the judgment of the district court in National Motor Freight, and therefore we are not bound by the district court’s reasoning. See Anderson v. Celebrezze, 460 U.S. 780, 785 n. 5, 103 S.Ct. 1564, 1568 n. 5, 75 L.Ed.2d 547 (1983) (“A summary disposition affirms only the judgment of the court below, and no more may be read into our action than was essential to sustain that judgment.”); Illinois Election Bd. v. Socialist Workers Party, 440 U.S. 173, 182-83, 99 S.Ct. 983, 989, 59 L.Ed.2d 230 (1979). We have specifically disapproved of National Motor Freight’s “substantial impact” analysis, moreover, because of the Supreme Court’s command in Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978), to avoid engrafting additional procedures on agency action beyond those required by the APA. See Cabais v. Egger, 690 F.2d 234, 237 (D.C.Cir. 1982) (“Simply because agency action has substantial impact does not mean it is subject to notice and comment if it is otherwise *400expressly exempt under the APA.”).3

It might be thought that there is something vaguely underhanded about an agency publishing important rules without an opportunity for those affected to comment. And lawyers and judges tend to prefer, on the margin, added procedure. But as Cabais makes clear, we have been admonished somewhat dramatically by Vermont Yankee to not add more procedure to the APA than Congress required. I am afraid the majority opinion by obliterating the distinction between substance and procedure in section 553 does just that.

2.2.3.2.1.2.3 Little Sisters of the Poor Saints Peter & Paul Home v. Pennsylvania 2.2.3.2.1.2.3 Little Sisters of the Poor Saints Peter & Paul Home v. Pennsylvania

LITTLE SISTERS OF THE POOR SAINTS PETER AND PAUL HOME, Petitioner
v.
PENNSYLVANIA, et al.;

Donald J. Trump, President of the United States, et al., Petitioners
v.
Pennsylvania, et al.

Nos. 19-431
19-454

Supreme Court of the United States.

Argued May 6, 2020
Decided July 8, 2020

Paul D. Clement, Erin E. Murphy, Andrew C. Lawrence, Mariel A. Brookins, Kirkland & Ellis LLP, Washington, DC, Mark L. Rienzi, Eric C. Rassbach, Lori H. Windham, Diana M. Verm, Chris Pagliarella, The Becket Fund for Religious Liberty, Washington, DC, for petitioner Little Sisters of the Poor Saints Peter and Paul Home.

Noel J. Francisco, Solicitor General, Joseph H. Hunt, Assistant Attorney General, Jeffrey B. Wall, Deputy Solicitor General, Hashim M. Mooppan, Deputy Assistant Attorney General, Christopher G. Michel, Benjamin W. Snyder, Assistants to the Solicitor General, Sharon Swingle, Lowell V. Sturgill Jr., Karen Schoen, Attorneys, Department of Justice, Washington, DC, for Petitioners Donald J. Trump, President of the United States, et al.

Gurbir S. Grewal, Attorney General, State of New Jersey, Glenn J. Moramarco, Assistant Attorney General, Elspeth Hans, Eric L. Apar, Deputy Attorneys General, Office of Attorney General, Trenton, NJ, Josh Shapiro, Attorney General, Commonwealth of Pennsylvania, Michael J. Fischer, Counsel of Record, Chief Deputy Attorney General, Aimee D. Thomson, Jacob B. Boyer, Deputy Attorneys General, Office of Attorney General, Philadelphia, PA, for Respondents.

Justice THOMAS delivered the opinion of the Court.

*2372In these consolidated cases, we decide whether the Government created lawful exemptions from a regulatory requirement implementing the Patient Protection and Affordable Care Act of 2010 (ACA), 124 Stat. 119. The requirement at issue obligates *2373certain employers to provide contraceptive coverage to their employees through their group health plans. Though contraceptive coverage is not required by (or even mentioned in) the ACA provision at issue, the Government mandated such coverage by promulgating interim final rules (IFRs) shortly after the ACA's passage. This requirement is known as the contraceptive mandate.

After six years of protracted litigation, the Departments of Health and Human Services, Labor, and the Treasury (Departments)-which jointly administer the relevant ACA provision1 -exempted certain employers who have religious and conscientious objections from this agency-created mandate. The Third Circuit concluded that the Departments lacked statutory authority to promulgate these exemptions and affirmed the District Court's nationwide preliminary injunction. This decision was erroneous. We hold that the Departments had the authority to provide exemptions from the regulatory contraceptive requirements for employers with religious and conscientious objections. We accordingly reverse the Third Circuit's judgment and remand with instructions to dissolve the nationwide preliminary injunction.

I

The ACA's contraceptive mandate-a product of agency regulation-has existed for approximately nine years. Litigation surrounding that requirement has lasted nearly as long. In light of this extensive history, we begin by summarizing the relevant background.

A

The ACA requires covered employers to offer "a group health plan or group health insurance coverage" that provides certain "minimum essential coverage." 26 U.S.C. § 5000A(f)(2) ; §§ 4980H(a), (c)(2). Employers who do not comply face hefty penalties, including potential fines of $100 per day for each affected employee. §§ 4980D(a)-(b); see also Burwell v. Hobby Lobby Stores, Inc. , 573 U.S. 682, 696-697, 134 S.Ct. 2751, 189 L.Ed.2d 675 (2014). These cases concern regulations promulgated under a provision of the ACA that requires covered employers to provide women with "preventive care and screenings" without "any cost sharing requirements." 42 U.S.C. § 300gg-13(a)(4).2

The statute does not define "preventive care and screenings," nor does it include an exhaustive or illustrative list of such services. Thus, the statute itself does not explicitly require coverage for any specific form of "preventive care." Hobby Lobby , 573 U.S. at 697, 134 S.Ct. 2751. Instead, Congress stated that coverage must include "such additional preventive care and screenings ... as provided for in comprehensive guidelines supported by the Health Resources and Services Administration" (HRSA), an agency of the Department of Health and Human Services (HHS). § 300gg-13(a)(4). At the time of the ACA's enactment, these guidelines were not yet written. As a result, no specific forms of preventive care or screenings were (or could be) referred to or incorporated by reference.

*2374Soon after the ACA's passage, the Departments began promulgating rules related to § 300gg-13(a)(4). But in doing so, the Departments did not proceed through the notice and comment rulemaking process, which the Administrative Procedure Act (APA) often requires before an agency's regulation can "have the force and effect of law." Perez v. Mortgage Bankers Assn. , 575 U.S. 92, 96, 135 S.Ct. 1199,191 L.Ed.2d 186 (2015) (internal quotation marks omitted); see also 5 U.S.C. § 553. Instead, the Departments invoked the APA's good cause exception, which permits an agency to dispense with notice and comment and promulgate an IFR that carries immediate legal force. § 553(b)(3)(B).

The first relevant IFR, promulgated in July 2010, primarily focused on implementing other aspects of § 300gg-13. 75 Fed. Reg. 41728. The IFR indicated that HRSA planned to develop its Preventive Care Guidelines (Guidelines) by August 2011. Ibid. However, it did not mention religious exemptions or accommodations of any kind.

As anticipated, HRSA released its first set of Guidelines in August 2011. The Guidelines were based on recommendations compiled by the Institute of Medicine (now called the National Academy of Medicine), "a nonprofit group of volunteer advisers." Hobby Lobby , 573 U.S. at 697, 134 S.Ct. 2751. The Guidelines included the contraceptive mandate, which required health plans to provide coverage for all contraceptive methods and sterilization procedures approved by the Food and Drug Administration as well as related education and counseling. 77 Fed. Reg. 8725 (2012).

The same day the Guidelines were issued, the Departments amended the 2010 IFR. 76 Fed. Reg. 46621 (2011). When the 2010 IFR was originally published, the Departments began receiving comments from numerous religious employers expressing concern that the Guidelines would "impinge upon their religious freedom" if they included contraception. Id. , at 46623. As just stated, the Guidelines ultimately did contain contraceptive coverage, thus making the potential impact on religious freedom a reality. In the amended IFR, the Departments determined that "it [was] appropriate that HRSA ... tak[e] into account the [mandate's] effect on certain religious employers" and concluded that HRSA had the discretion to do so through the creation of an exemption. Ibid. The Departments then determined that the exemption should cover religious employers, and they set out a four-part test to identify which employers qualified. The last criterion required the entity to be a church, an integrated auxiliary, a convention or association of churches, or "the exclusively religious activities of any religious order." Ibid. HRSA created an exemption for these employers the same day. 78 Fed. Reg. 39871 (2013). Because of the narrow focus on churches, this first exemption is known as the church exemption.

The Guidelines were scheduled to go into effect for plan years beginning on August 1, 2012. 77 Fed. Reg. 8725-8726. But in February 2012, before the Guidelines took effect, the Departments promulgated a final rule that temporarily prevented the Guidelines from applying to certain religious nonprofits. Specifically, the Departments stated their intent to promulgate additional rules to "accommodat[e] non-exempted, non-profit organizations' religious objections to covering contraceptive services." Id. , at 8727. Until that rulemaking occurred, the 2012 rule also provided a temporary safe harbor to protect such employers. Ibid. The safe harbor covered nonprofits "whose plans have consistently not covered all or the same subset of contraceptive services for religious *2375reasons."3 Thus, the nonprofits who availed themselves of this safe harbor were not subject to the contraceptive mandate when it first became effective.

The Departments promulgated another final rule in 2013 that is relevant to these cases in two ways. First, after reiterating that § 300gg-13(a)(4) authorizes HRSA "to issue guidelines in a manner that exempts group health plans established or maintained by religious employers," the Departments "simplif[ied]" and "clarif[ied]" the definition of a religious employer. 78 Fed. Reg. 39873.4 Second, pursuant to that same authority, the Departments provided the anticipated accommodation for eligible religious organizations, which the regulation defined as organizations that "(1) [o]ppos[e] providing coverage for some or all of the contraceptive services ... on account of religious objections; (2) [are] organized and operat[e] as ... nonprofit entit[ies]; (3) hol[d] [themselves] out as ... religious organization[s]; and (4) self-certif[y] that [they] satisf[y] the first three criteria." Id. , at 39874. The accommodation required an eligible organization to provide a copy of the self-certification form to its health insurance issuer, which in turn would exclude contraceptive coverage from the group health plan and provide payments to beneficiaries for contraceptive services separate from the health plan. Id. , at 39878. The Departments stated that the accommodation aimed to "protec[t]" religious organizations "from having to contract, arrange, pay, or refer for [contraceptive] coverage" in a way that was consistent with and did not violate the Religious Freedom Restoration Act of 1993 (RFRA), 107 Stat. 1488, 42 U.S.C. § 2000bb et seq. 78 Fed. Reg. 39871, 39886-39887. This accommodation is referred to as the self-certification accommodation.

B

Shortly after the Departments promulgated the 2013 final rule, two religious nonprofits run by the Little Sisters of the Poor (Little Sisters) challenged the self-certification accommodation. The Little Sisters "are an international congregation of Roman Catholic women religious" who have operated homes for the elderly poor in the United States since 1868. See Mission Statement: Little Sisters of the Poor, http://www.littlesistersofthepoor.org/mission-statement. They feel called by their faith to care for their elderly residents regardless of "faith, finances, or frailty." Brief for Residents and Families of Residents at Homes of the Little Sisters of the Poor as Amici Curiae 14. The Little Sisters endeavor to treat all residents "as if they were Jesus [Christ] himself, cared for as family, and treated with dignity until God calls them to his home." Complaint ¶14 in *2376Little Sisters of the Poor Home for the Aged , Denver, Colo. v. Sebelius , 6 F.Supp.3d 1225 (D Colo.2013), p. 5 (Complaint).

Consistent with their Catholic faith, the Little Sisters hold the religious conviction "that deliberately avoiding reproduction through medical means is immoral." Little Sisters of the Poor Home for the Aged, Denver, Colo. v. Burwell , 794 F.3d 1151, 1167 (CA10 2015). They challenged the self-certification accommodation, claiming that completing the certification form would force them to violate their religious beliefs by "tak[ing] actions that directly cause others to provide contraception or appear to participate in the Departments' delivery scheme." Id. , at 1168. As a result, they alleged that the self-certification accommodation violated RFRA. Under RFRA, a law that substantially burdens the exercise of religion must serve "a compelling governmental interest" and be "the least restrictive means of furthering that compelling governmental interest." §§ 2000bb-1(a)-(b). The Court of Appeals disagreed that the self-certification accommodation substantially burdened the Little Sisters' free exercise rights and thus rejected their RFRA claim. Little Sisters , 794 F.3d at 1160.

The Little Sisters were far from alone in raising RFRA challenges to the self-certification accommodation. Religious nonprofit organizations and educational institutions across the country filed a spate of similar lawsuits, most resulting in rulings that the accommodation did not violate RFRA. See, e.g. , East Texas Baptist Univ. v. Burwell , 793 F.3d 449 (CA5 2015) ; Geneva College v. Secretary, U. S. Dept. of Health and Human Servs. , 778 F.3d 422 (CA3 2015) ; Priests for Life v. United States Dept. of Health and Human Servs. , 772 F.3d 229 (CADC 2014) ; Michigan Catholic Conference v. Burwell , 755 F.3d 372 (CA6 2014) ; University of Notre Dame v. Sebelius , 743 F.3d 547 (CA7 2014) ; but see Sharpe Holdings, Inc. v. United States Dept. of Health and Human Servs. , 801 F.3d 927 (CA8 2015) ; Dordt College v. Burwell , 801 F.3d 946 (CA8 2015). We granted certiorari in cases from four Courts of Appeals to decide the RFRA question. Zubik v. Burwell , 578 U. S. ----, ----, 136 S.Ct. 1557, 1560, 194 L.Ed.2d 696 (2016) (per curiam ). Ultimately, however, we opted to remand the cases without deciding that question. In supplemental briefing, the Government had "confirm[ed]" that " 'contraceptive coverage could be provided to petitioners' employees, through petitioners' insurance companies, without any ... notice from petitioners.' " Id. , at ----, 136 S.Ct., at 1560. Petitioners, for their part, had agreed that such an approach would not violate their free exercise rights. Ibid. Accordingly, because all parties had accepted that an alternative approach was "feasible," ibid. , we directed the Government to "accommodat[e] petitioners' religious exercise while at the same time ensuring that women covered by petitioners' health plans receive full and equal health coverage, including contraceptive coverage," id. , at ----, 136 S.Ct., at 1560 (internal quotation marks omitted).

C

Zubik was not the only relevant ruling from this Court about the contraceptive mandate. As the Little Sisters and numerous others mounted their challenges to the self-certification accommodation, a host of other entities challenged the contraceptive mandate itself as a violation of RFRA. See, e.g. , Hobby Lobby Stores, Inc. v. Sebelius , 723 F.3d 1114 (CA10 2013) (en banc); Korte v. Sebelius , 735 F.3d 654 (CA7 2013) ; Gilardi v. United States Dept. of Health and Human Servs. , 733 F.3d 1208 (CADC 2013) ; Conestoga Wood Specialties Corp. v. Secretary of U. S. Dept. of Health and Human Servs. , 724 F.3d 377 (CA3 2013) ;

*2377Autocam Corp. v. Sebelius , 730 F.3d 618 (CA6 2013). This Court granted certiorari in two cases involving three closely held corporations to decide whether the mandate violated RFRA. Hobby Lobby , 573 U.S. 682, 134 S.Ct. 2751.

The individual respondents in Hobby Lobby opposed four methods of contraception covered by the mandate. They sincerely believed that human life begins at conception and that, because the challenged methods of contraception risked causing the death of a human embryo, providing those methods of contraception to employees would make the employers complicit in abortion. Id. , at 691, 720, 134 S.Ct. 2751. We held that the mandate substantially burdened respondents' free exercise, explaining that "[if] the owners comply with the HHS mandate, they believe they will be facilitating abortions, and if they do not comply, they will pay a very heavy price." Id. , at 691, 134 S.Ct. 2751. "If these consequences do not amount to a substantial burden," we stated, "it is hard to see what would." Ibid. We also held that the mandate did not utilize the least restrictive means, citing the self-certification accommodation as a less burdensome alternative. Id. , at 730-731, 134 S.Ct. 2751.

Thus, as the Departments began the task of reformulating rules related to the contraceptive mandate, they did so not only under Zubik 's direction to accommodate religious exercise, but also against the backdrop of Hobby Lobby 's pronouncement that the mandate, standing alone, violated RFRA as applied to religious entities with complicity-based objections.

D

In 2016, the Departments attempted to strike the proper balance a third time, publishing a request for information on ways to comply with Zubik . 81 Fed. Reg. 47741. This attempt proved futile, as the Departments ultimately concluded that "no feasible approach" had been identified. Dept. of Labor, FAQs About Affordable Care Act Implementation Part 36, p. 4 (2017). The Departments maintained their position that the self-certification accommodation was consistent with RFRA because it did not impose a substantial burden and, even if it did, it utilized the least restrictive means of achieving the Government's interests. Id. , at 4-5.

In 2017, the Departments tried yet again to comply with Zubik , this time by promulgating the two IFRs that served as the impetus for this litigation. The first IFR significantly broadened the definition of an exempt religious employer to encompass an employer that "objects ... based on its sincerely held religious beliefs," "to its establishing, maintaining, providing, offering, or arranging [for] coverage or payments for some or all contraceptive services." 82 Fed. Reg. 47812 (2017). Among other things, this definition included for-profit and publicly traded entities. Because they were exempt, these employers did not need to participate in the accommodation process, which nevertheless remained available under the IFR. Id. , at 47806.

As with their previous regulations, the Departments once again invoked § 300gg-13(a)(4) as authority to promulgate this "religious exemption," stating that it "include[d] the ability to exempt entities from coverage requirements announced in HRSA's Guidelines." Id. , at 47794. Additionally, the Departments announced for the first time that RFRA compelled the creation of, or at least provided the discretion to create, the religious exemption. Id. , at 47800-47806. As the Departments explained: "We know from Hobby Lobby that, in the absence of any accommodation, the contraceptive-coverage requirement imposes a substantial burden on certain objecting employers. We know from other lawsuits and public comments that *2378many religious entities have objections to complying with the [self-certification] accommodation based on their sincerely held religious beliefs." Id. , at 47806. The Departments "believe[d] that the Court's analysis in Hobby Lobby extends, for the purposes of analyzing a substantial burden, to the burdens that an entity faces when it religiously opposes participating in the [self-certification] accommodation process." Id. , at 47800. They thus "conclude[d] that it [was] appropriate to expand the exemption to other ... organizations with sincerely held religious beliefs opposed to contraceptive coverage." Id. , at 47802 ; see also id. , at 47810-47811.

The second IFR created a similar "moral exemption" for employers-including nonprofits and for-profits with no publicly traded components-with "sincerely held moral" objections to providing some or all forms of contraceptive coverage. Id. , at 47850, 47861-47862. Citing congressional enactments, precedents from this Court, agency practice, and state laws that provided for conscience protections, id. , at 47844-47847, the Departments invoked their authority under the ACA to create this exemption, id. , at 47844. The Departments requested post-promulgation comments on both IFRs. Id. , at 47813, 47854.

E

Within a week of the 2017 IFRs' promulgation, the Commonwealth of Pennsylvania filed an action seeking declaratory and injunctive relief. Among other claims, it alleged that the IFRs were procedurally and substantively invalid under the APA. The District Court held that the Commonwealth was likely to succeed on both claims and granted a preliminary nationwide injunction against the IFRs. The Federal Government appealed.

While that appeal was pending, the Departments issued rules finalizing the 2017 IFRs. See 83 Fed. Reg. 57536 (2018) ; 83 Fed. Reg. 57592, codified at 45 C.F.R. pt. 147 (2018). Though the final rules left the exemptions largely intact, they also responded to post-promulgation comments, explaining their reasons for neither narrowing nor expanding the exemptions beyond what was provided for in the IFRs. See 83 Fed. Reg. 57542-57545, 57598-57603. The final rule creating the religious exemption also contained a lengthy analysis of the Departments' changed position regarding whether the self-certification process violated RFRA. Id. , at 57544-57549. And the Departments explained that, in the wake of the numerous lawsuits challenging the self-certification accommodation and the failed attempt to identify alternative accommodations after the 2016 request for information, "an expanded exemption rather than the existing accommodation is the most appropriate administrative response to the substantial burden identified by the Supreme Court in Hobby Lobby ." Id. , at 57544-57545.

After the final rules were promulgated, the State of New Jersey joined Pennsylvania's suit and, together, they filed an amended complaint. As relevant, the States-respondents here-once again challenged the rules as substantively and procedurally invalid under the APA. They alleged that the rules were substantively unlawful because the Departments lacked statutory authority under either the ACA or RFRA to promulgate the exemptions. Respondents also asserted that the IFRs were not adequately justified by good cause, meaning that the Departments impermissibly used the IFR procedure to bypass the APA's notice and comment procedures. Finally, respondents argued that the purported procedural defects of the IFRs likewise infected the final rules.

The District Court issued a nationwide preliminary injunction against the implementation *2379of the final rules the same day the rules were scheduled to take effect. The Federal Government appealed, as did one of the homes operated by the Little Sisters, which had in the meantime intervened in the suit to defend the religious exemption.5 The appeals were consolidated with the previous appeal, which had been stayed.

The Third Circuit affirmed. In its view, the Departments lacked authority to craft the exemptions under either statute. The Third Circuit read 42 U.S.C. § 300gg-13(a)(4) as empowering HRSA to determine which services should be included as preventive care and screenings, but not to carve out exemptions from those requirements. It also concluded that RFRA did not compel or permit the religious exemption because, under Third Circuit precedent that was vacated and remanded in Zubik , the Third Circuit had concluded that the self-certification accommodation did not impose a substantial burden on free exercise. As for respondents' procedural claim, the court held that the Departments lacked good cause to bypass notice and comment when promulgating the 2017 IFRs. In addition, the court determined that, because the IFRs and final rules were "virtually identical," "[t]he notice and comment exercise surrounding the Final Rules [did] not reflect any real open-mindedness." Pennsylvania v. President of United States , 930 F.3d 543, 568-569 (2019). Though it rebuked the Departments for their purported attitudinal deficiencies, the Third Circuit did not identify any specific public comments to which the agency did not appropriately respond. Id. , at 569, n. 24.6 We granted certiorari. 589 U. S. ----, 140 S.Ct. 918, 205 L.Ed.2d 519 (2020).

II

Respondents contend that the 2018 final rules providing religious and moral exemptions to the contraceptive mandate are both substantively and procedurally invalid. We begin with their substantive argument that the Departments lacked statutory authority to promulgate the rules.

A

The Departments invoke 42 U.S.C. § 300gg-13(a)(4) as legal authority for both exemptions. This provision of the ACA states that, "with respect to women," "[a] group health plan and a health insurance issuer offering group or individual health insurance coverage shall, at a minimum provide ... such additional preventive care and screenings not described in paragraph (1) as provided for in comprehensive *2380guidelines supported by [HRSA]." The Departments maintain, as they have since 2011, that the phrase "as provided for" allows HRSA both to identify what preventive care and screenings must be covered and to exempt or accommodate certain employers' religious objections. See 83 Fed. Reg. 57540-57541 ; see also post , at 2397 - 2398 (KAGAN, J., concurring in judgment). They also argue that, as with the church exemption, their role as the administering agencies permits them to guide HRSA in its discretion by "defining the scope of permissible exemptions and accommodations for such guidelines." 82 Fed. Reg. 47794. Respondents, on the other hand, contend that § 300gg-13(a)(4) permits HRSA to only list the preventive care and screenings that health plans "shall ... provide," not to exempt entities from covering those identified services. Because that asserted limitation is found nowhere in the statute, we agree with the Departments.

"Our analysis begins and ends with the text." Octane Fitness, LLC v. ICON Health & Fitness, Inc. , 572 U.S. 545, 553, 134 S.Ct. 1749, 188 L.Ed.2d 816 (2014). Here, the pivotal phrase is "as provided for." To "provide" means to supply, furnish, or make available. See Webster's Third New International Dictionary 1827 (2002) (Webster's Third); American Heritage Dictionary 1411 (4th ed. 2000); 12 Oxford English Dictionary 713 (2d ed. 1989). And, as the Departments explained, the word "as" functions as an adverb modifying "provided," indicating "the manner in which" something is done. 83 Fed. Reg. 57540. See also Webster's Third 125; 1 Oxford English Dictionary, at 673; American Heritage Dictionary 102 (5th ed. 2011).

On its face, then, the provision grants sweeping authority to HRSA to craft a set of standards defining the preventive care that applicable health plans must cover. But the statute is completely silent as to what those "comprehensive guidelines" must contain, or how HRSA must go about creating them. The statute does not, as Congress has done in other statutes, provide an exhaustive or illustrative list of the preventive care and screenings that must be included. See, e.g. , 18 U.S.C. § 1961(1) ; 28 U.S.C. § 1603(a). It does not, as Congress did elsewhere in the same section of the ACA, set forth any criteria or standards to guide HRSA's selections. See, e.g. , 42 U.S.C. § 300gg-13(a)(3) (requiring "evidence-informed preventive care and screenings" (emphasis added)); § 300gg-13(a)(1) ("evidence-based items or services"). It does not, as Congress has done in other contexts, require that HRSA consult with or refrain from consulting with any party in the formulation of the Guidelines. See, e.g. , 16 U.S.C. § 1536(a)(1) ; 23 U.S.C. § 138. This means that HRSA has virtually unbridled discretion to decide what counts as preventive care and screenings. But the same capacious grant of authority that empowers HRSA to make these determinations leaves its discretion equally unchecked in other areas, including the ability to identify and create exemptions from its own Guidelines.

Congress could have limited HRSA's discretion in any number of ways, but it chose not to do so. See Ali v. Federal Bureau of Prisons , 552 U.S. 214, 227, 128 S.Ct. 831, 169 L.Ed.2d 680 (2008) ; see also Rotkiske v. Klemm , 589 U. S. ----, ----, 140 S.Ct. 355, 361, 205 L.Ed.2d 291 (2019) ; Husted v. A. Philip Randolph Institute , 584 U. S. ----, ----, 138 S.Ct. 1833, 1845-1846, 201 L.Ed.2d 141 (2018). Instead, it enacted " 'expansive language offer[ing] no indication whatever' " that the statute limits what HRSA can designate as preventive care and screenings or who must provide that coverage. Ali , 552 U.S. at 219-220, 128 S.Ct. 831 (quoting *2381Harrison v. PPG Industries, Inc. , 446 U.S. 578, 589, 100 S.Ct. 1889, 64 L.Ed.2d 525 (1980) ). "It is a fundamental principle of statutory interpretation that 'absent provision[s] cannot be supplied by the courts.' " Rotkiske , 589 U. S., at ----, 140 S.Ct., at 360-361 (quoting A. Scalia & B. Garner, Reading Law: The Interpretation of Legal Texts 94 (2012)); Nichols v. United States , 578 U. S. ----, ----, 136 S.Ct. 1113, 1118, 194 L.Ed.2d 324 (2016). This principle applies not only to adding terms not found in the statute, but also to imposing limits on an agency's discretion that are not supported by the text. See Watt v. Energy Action Ed. Foundation , 454 U.S. 151, 168, 102 S.Ct. 205, 70 L.Ed.2d 309 (1981). By introducing a limitation not found in the statute, respondents ask us to alter, rather than to interpret, the ACA. See Nichols , 578 U. S., at ----, 136 S.Ct., at 1118.

By its terms, the ACA leaves the Guidelines' content to the exclusive discretion of HRSA. Under a plain reading of the statute, then, we conclude that the ACA gives HRSA broad discretion to define preventive care and screenings and to create the religious and moral exemptions.7

The dissent resists this conclusion, asserting that the Departments' interpretation thwarts Congress' intent to provide contraceptive coverage to the women who are interested in receiving such coverage. See post , at 2400, 2411 - 2412 (opinion of GINSBURG, J.). It also argues that the exemptions will make it significantly harder for interested women to obtain seamless access to contraception without cost sharing, post , at 2394 - 2396, which we have previously "assume[d]" is a compelling governmental interest, Hobby Lobby , 573 U.S. at 728, 134 S.Ct. 2751 ; but see post , at 2391 - 2393 (ALITO, J., concurring). The Departments dispute that women will be adversely impacted by the 2018 exemptions. 82 Fed. Reg. 47805. Though we express no view on this disagreement, it bears noting that such a policy concern cannot justify supplanting the text's plain meaning. See Gitlitz v. Commissioner , 531 U.S. 206, 220, 121 S.Ct. 701, 148 L.Ed.2d 613 (2001). "It is not for us to rewrite the statute so that it covers only what we think is necessary to achieve what we think Congress really intended." Lewis v. Chicago , 560 U.S. 205, 215, 130 S.Ct. 2191, 176 L.Ed.2d 967 (2010).

Moreover, even assuming that the dissent is correct as an empirical matter, its concerns are more properly directed at the regulatory mechanism that Congress put in place to protect this assumed governmental interest. As even the dissent recognizes, *2382contraceptive coverage is mentioned nowhere in § 300gg-13(a)(4), and no language in the statute itself even hints that Congress intended that contraception should or must be covered. See post , at 2401 - 2402 (citing legislative history and amicus briefs). Thus, contrary to the dissent's protestations, it was Congress, not the Departments, that declined to expressly require contraceptive coverage in the ACA itself. See 83 Fed. Reg. 57540. And, it was Congress' deliberate choice to issue an extraordinarily "broad general directiv[e]" to HRSA to craft the Guidelines, without any qualifications as to the substance of the Guidelines or whether exemptions were permissible. Mistretta v. United States , 488 U.S. 361, 372, 109 S.Ct. 647, 102 L.Ed.2d 714 (1989). Thus, it is Congress, not the Departments, that has failed to provide the protection for contraceptive coverage that the dissent seeks.8

No party has pressed a constitutional challenge to the breadth of the delegation involved here. Cf. Gundy v. United States , 588 U. S. ----, 139 S.Ct. 2116, 204 L.Ed.2d 522 (2019). The only question we face today is what the plain language of the statute authorizes. And the plain language of the statute clearly allows the Departments to create the preventive care standards as well as the religious and moral exemptions.9

B

The Departments also contend, consistent with the reasoning in the 2017 IFR and the 2018 final rule establishing the religious exemption, that RFRA independently compelled the Departments' solution or that it at least authorized it.10 In light of our holding that the ACA provided a basis for both exemptions, we need not reach these arguments.11 We do, however, address respondents' argument that the Departments could not even consider RFRA as they formulated the religious *2383exemption from the contraceptive mandate. Particularly in the context of these cases, it was appropriate for the Departments to consider RFRA.

As we have explained, RFRA "provide[s] very broad protection for religious liberty." Hobby Lobby , 573 U.S. at 693, 134 S.Ct. 2751. In RFRA's congressional findings, Congress stated that "governments should not substantially burden religious exercise," a right described by RFRA as "unalienable." 42 U.S.C. §§ 2000bb(a)(1), (3). To protect this right, Congress provided that the "[g]overnment shall not substantially burden a person's exercise of religion even if the burden results from a rule of general applicability" unless "it demonstrates that application of the burden ... is in furtherance of a compelling governmental interest; and ... is the least restrictive means of furthering that compelling governmental interest." §§ 2000bb-1(a)-(b). Placing Congress' intent beyond dispute, RFRA specifies that it "applies to all Federal law, and the implementation of that law, whether statutory or otherwise." § 2000bb-3(a). RFRA also permits Congress to exclude statutes from RFRA's protections. § 2000bb-3(b).

It is clear from the face of the statute that the contraceptive mandate is capable of violating RFRA. The ACA does not explicitly exempt RFRA, and the regulations implementing the contraceptive mandate qualify as "Federal law" or "the implementation of [Federal] law." § 2000bb-3(a) ; cf. Chrysler Corp. v. Brown , 441 U.S. 281, 297-298, 99 S.Ct. 1705, 60 L.Ed.2d 208 (1979). Additionally, we expressly stated in Hobby Lobby that the contraceptive mandate violated RFRA as applied to entities with complicity-based objections. 573 U.S. at 736, 134 S.Ct. 2751. Thus, the potential for conflict between the contraceptive mandate and RFRA is well settled. Against this backdrop, it is unsurprising that RFRA would feature prominently in the Departments' discussion of exemptions that would not pose similar legal problems.

Moreover, our decisions all but instructed the Departments to consider RFRA going forward. For instance, though we held that the mandate violated RFRA in Hobby Lobby , we left it to the Federal Government to develop and implement a solution. At the same time, we made it abundantly clear that, under RFRA, the Departments must accept the sincerely held complicity-based objections of religious entities. That is, they could not "tell the plaintiffs that their beliefs are flawed" because, in the Departments' view, "the connection between what the objecting parties must do ... and the end that they find to be morally wrong ... is simply too attenuated." Hobby Lobby , 573 U.S. at 723-724, 134 S.Ct. 2751. Likewise, though we did not decide whether the self-certification accommodation ran afoul of RFRA in Zubik , we directed the parties on remand to "accommodat[e]" the free exercise rights of those with complicity-based objections to the self-certification accommodation. 578 U. S., at ----, 136 S.Ct., at 1560. It is hard to see how the Departments could promulgate rules consistent with these decisions if they did not overtly consider these entities' rights under RFRA.

This is especially true in light of the basic requirements of the rulemaking process. Our precedents require final rules to "articulate a satisfactory explanation for [the] action including a rational connection between the facts found and the choice made." Motor Vehicle Mfrs. Assn. of United States, Inc. v. State Farm Mut. Automobile Ins. Co. , 463 U.S. 29, 43, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983) (internal quotation marks omitted). This requirement allows courts to assess whether the agency has promulgated an arbitrary and capricious rule by "entirely fail[ing] to consider *2384an important aspect of the problem [or] offer[ing] an explanation for its decision that runs counter to the evidence before [it]." Ibid. ; see also Department of Commerce v. New York , 588 U. S. ----, ---- - ----, 139 S.Ct. 2551, 2585-2586, 204 L.Ed.2d 978 (2019) (BREYER, J., concurring in part and dissenting in part); Genuine Parts Co. v. EPA , 890 F.3d 304, 307 (CADC 2018) ; Pacific Coast Federation of Fishermen's Assns. v. United States Bur. of Reclamation , 426 F.3d 1082, 1094 (CA9 2005). Here, the Departments were aware that Hobby Lobby held the mandate unlawful as applied to religious entities with complicity-based objections. 82 Fed. Reg. 47799 ; 83 Fed. Reg. 57544-57545. They were also aware of Zubik 's instructions. 82 Fed. Reg. 47799. And, aside from our own decisions, the Departments were mindful of the RFRA concerns raised in "public comments and ... court filings in dozens of cases-encompassing hundreds of organizations." Id. , at 47802 ; see also id. , at 47806. If the Departments did not look to RFRA's requirements or discuss RFRA at all when formulating their solution, they would certainly be susceptible to claims that the rules were arbitrary and capricious for failing to consider an important aspect of the problem.12 Thus, respondents' argument that the Departments erred by looking to RFRA as a guide when framing the religious exemption is without merit.

III

Because we hold that the Departments had authority to promulgate the exemptions, we must next decide whether the 2018 final rules are procedurally invalid. Respondents present two arguments on this score. Neither is persuasive.

A

Unless a statutory exception applies, the APA requires agencies to publish a notice of proposed rulemaking in the Federal Register before promulgating a rule that has legal force. See 5 U.S.C. § 553(b). Respondents point to the fact that the 2018 final rules were preceded by a document entitled "Interim Final Rules with Request for Comments," not a document entitled "General Notice of Proposed Rulemaking." They claim that since this was insufficient to satisfy § 553(b) 's requirement, the final rules were procedurally invalid. Respondents are incorrect. Formal labels aside, the rules contained all of the elements of a notice of proposed rulemaking as required by the APA.

The APA requires that the notice of proposed rulemaking contain "reference to the legal authority under which the rule is proposed" and "either the terms or substance of the proposed rule or a description of the subjects and issues involved." §§ 553(b)(2)-(3). The request for comments in the 2017 IFRs readily satisfies these requirements. That request detailed the Departments' view that they had legal authority under the ACA to promulgate both exemptions, 82 Fed. Reg. 47794, 47844, as well as authority under RFRA to promulgate the religious exemption, id. , at 47800-47806. And respondents do not-and cannot-argue that the IFRs failed to air the relevant issues with sufficient detail *2385for respondents to understand the Departments' position. See supra , at 2377 - 2378. Thus, the APA notice requirements were satisfied.

Even assuming that the APA requires an agency to publish a document entitled "notice of proposed rulemaking" when the agency moves from an IFR to a final rule, there was no "prejudicial error" here. § 706. We have previously noted that the rule of prejudicial error is treated as an "administrative law ... harmless error rule," National Assn. of Home Builders v. Defenders of Wildlife , 551 U.S. 644, 659-660, 127 S.Ct. 2518, 168 L.Ed.2d 467 (2007) (internal quotation marks omitted). Here, the Departments issued an IFR that explained its position in fulsome detail and "provide[d] the public with an opportunity to comment on whether [the] regulations ... should be made permanent or subject to modification." 82 Fed. Reg. 47815 ; see also id. , at 47852, 47855. Respondents thus do not come close to demonstrating that they experienced any harm from the title of the document, let alone that they have satisfied this harmless error rule. "The object [of notice and comment], in short, is one of fair notice," Long Island Care at Home, Ltd. v. Coke , 551 U.S. 158, 174, 127 S.Ct. 2339, 168 L.Ed.2d 54 (2007), and respondents certainly had such notice here. Because the IFR complied with the APA's requirements, this claim fails.13

B

Next, respondents contend that the 2018 final rules are procedurally invalid because "nothing in the record signal[s]" that the Departments "maintained an open mind throughout the [post-promulgation] process." Brief for Respondents 27. As evidence for this claim, respondents point to the fact that the final rules made only minor alterations to the IFRs, leaving their substance unchanged. The Third Circuit applied this "open-mindedness" test, concluding that because the final rules were "virtually identical" to the IFRs, the Departments lacked the requisite "flexible and open-minded attitude" when they promulgated the final rules. 930 F.3d at 569 (internal quotation marks omitted).

We decline to evaluate the final rules under the open-mindedness test. We have repeatedly stated that the text of the APA provides the " 'maximum procedural requirements' " that an agency must follow in order to promulgate a rule. Perez , 575 U.S. at 100, 135 S.Ct. 1199 (quoting Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council, Inc. , 435 U.S. 519, 524, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978) ). Because the APA "sets forth the full extent of judicial authority to review executive agency action for procedural correctness," FCC v. Fox Television Stations, Inc. , 556 U.S. 502, 513, 129 S.Ct. 1800, 173 L.Ed.2d 738 (2009), we have repeatedly rejected courts' attempts to impose "judge-made procedur[es]" in addition to the APA's mandates, Perez , 575 U.S. at 102, 135 S.Ct. 1199 ; see also Pension Benefit Guaranty Corporation v. LTV Corp. , 496 U.S. 633, 654-655, 110 S.Ct. 2668, 110 L.Ed.2d 579 (1990) ; Vermont Yankee , 435 U.S. at 549, 98 S.Ct. 1197. And like the procedures that we have held invalid, the open-mindedness test violates the "general proposition that courts are not free to impose upon agencies specific procedural requirements that have no basis in the APA." LTV Corp. , 496 U.S. at 654, 110 S.Ct. 2668. Rather than adopting this test, we focus our inquiry on *2386whether the Departments satisfied the APA's objective criteria, just as we have in previous cases. We conclude that they did.

Section 553(b) obligated the Departments to provide adequate notice before promulgating a rule that has legal force. As explained supra , at 2384 - 2385, the IFRs provided sufficient notice. Aside from these notice requirements, the APA mandates that agencies "give interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments," § 553(c) ; states that the final rules must include "a concise general statement of their basis and purpose," ibid. ; and requires that final rules must be published 30 days before they become effective, § 553(d).

The Departments complied with each of these statutory procedures. They "request[ed] and encourag[ed] public comments on all matters addressed" in the rules-i.e. , the basis for the Departments' legal authority, the rationales for the exemptions, and the detailed discussion of the exemptions' scope. 82 Fed. Reg. 47813, 47854. They also gave interested parties 60 days to submit comments. Id. , at 47792, 47838. The final rules included a concise statement of their basis and purpose, explaining that the rules were "necessary to protect sincerely held" moral and religious objections and summarizing the legal analysis supporting the exemptions. 83 Fed. Reg. 57592 ; see also id. , at 57537-57538. Lastly, the final rules were published on November 15, 2018, but did not become effective until January 14, 2019-more than 30 days after being published. Id. , at 57536, 57592. In sum, the rules fully complied with " 'the maximum procedural requirements [that] Congress was willing to have the courts impose upon agencies in conducting rulemaking procedures.' " Perez , 575 U.S. at 102, 135 S.Ct. 1199 (quoting Vermont Yankee , 435 U.S. at 524, 98 S.Ct. 1197 ). Accordingly, respondents' second procedural challenge also fails.14

* * *

For over 150 years, the Little Sisters have engaged in faithful service and sacrifice, motivated by a religious calling to surrender all for the sake of their brother. "[T]hey commit to constantly living out a witness that proclaims the unique, inviolable dignity of every person, particularly those whom others regard as weak or worthless." Complaint ¶14. But for the past seven years, they-like many other religious objectors who have participated in the litigation and rulemakings leading up to today's decision-have had to fight for the ability to continue in their noble work without violating their sincerely held religious beliefs. After two decisions from this Court and multiple failed regulatory attempts, the Federal Government has arrived at a solution that exempts the Little Sisters from the source of their complicity-based concerns-the administratively imposed contraceptive mandate.

We hold today that the Departments had the statutory authority to craft that exemption, as well as the contemporaneously issued moral exemption. We further hold that the rules promulgating these exemptions are free from procedural defects. Therefore, we reverse the judgment of the Court of Appeals and remand the cases for further proceedings consistent with this opinion.

It is so ordered .

Justice ALITO, with whom Justice GORSUCH joins, concurring.

*2387In these cases, the Court of Appeals held, among other things, (1) that the Little Sisters of the Poor lacked standing to appeal, (2) that the Affordable Care Act (ACA) does not permit any exemptions from the so-called contraceptive mandate, (3) that the Departments responsible for issuing the challenged rule1 violated the Administrative Procedure Act (APA) by failing to provide notice of proposed rulemaking, and (4) that the final rule creating the current exemptions is invalid because the Departments did not have an open mind when they considered comments to the rule. Based on this analysis, the Court of Appeals affirmed the nationwide injunction issued by the District Court.

This Court now concludes that all the holdings listed above were erroneous, and I join the opinion of the Court in full. We now send these cases back to the lower courts, where the Commonwealth of Pennsylvania and the State of New Jersey are all but certain to pursue their argument that the current rule is flawed on yet another ground, namely, that it is arbitrary and capricious and thus violates the APA. This will prolong the legal battle in which the Little Sisters have now been engaged for seven years-even though during all this time no employee of the Little Sisters has come forward with an objection to the Little Sisters' conduct.

I understand the Court's desire to decide no more than is strictly necessary, but under the circumstances here, I would decide one additional question: whether the Court of Appeals erred in holding that the Religious Freedom Restoration Act (RFRA), 42 U.S.C. §§ 2000bb - 2000bb-4, does not compel the religious exemption granted by the current rule. If RFRA requires this exemption, the Departments did not act in an arbitrary and capricious manner in granting it. And in my judgment, RFRA compels an exemption for the Little Sisters and any other employer with a similar objection to what has been called the accommodation to the contraceptive mandate.

I

Because the contraceptive mandate has been repeatedly modified, a brief recapitulation of this history may be helpful. The ACA itself did not require that insurance plans include coverage for contraceptives. Instead, the Act provided that plans must cover those preventive services found to be appropriate by the Health Resources and Services Administration (HRSA), an agency of the Department of Health and Human Services. 42 U.S.C. § 300gg-13(a)(4). In 2011, HRSA recommended that plans be required to cover " '[a]ll ... contraceptive methods' " approved by the Food and Drug Administration. 77 Fed. Reg. 8725 (2012). (I will use the term "contraceptive mandate" or simply "mandate" to refer to the obligation to provide coverage for contraceptives under any of the various regimes that have existed since the promulgation of this original rule.) At the direction of the relevant Departments, HRSA simultaneously created *2388an exemption from the mandate for "churches, their integrated auxiliaries, and conventions or associations of churches," as well as "the exclusively religious activities of any religious order." 76 Fed. Reg. 46623 (2011) ; see 77 Fed. Reg. 8726. (I will call this the "church exemption.") This narrow exemption was met with strong objections on the ground that it furnished insufficient protection for religious groups opposed to the use of some or all of the listed contraceptives.

The Departments responded by issuing a new regulation that created an accommodation for certain religious non-profit employers. See 78 Fed. Reg. 39892-39898 (2013). (I will call this the "accommodation.") Under this accommodation, a covered employer could certify its objection to its insurer (or, if its plan was self-funded, to its third-party plan administrator), and the insurer or third-party administrator would then proceed to provide contraceptive coverage to the objecting entity's employees. Unlike the earlier church exemption, the accommodation did not exempt these religious employers from the contraceptive mandate, but the Departments construed invocation of the accommodation as compliance with the mandate.

Meanwhile, the contraceptive mandate was challenged by various employers who had religious objections to providing coverage for at least some of the listed contraceptives but were not covered by the church exemption or the accommodation. In Burwell v. Hobby Lobby Stores, Inc. , 573 U.S. 682, 134 S.Ct. 2751, 189 L.Ed.2d 675 (2014), we held that RFRA prohibited the application of the regulation to closely held, for-profit corporations that fell into this category. The Departments responded by issuing a new regulation that attempted to codify our holding by allowing closely-held corporations to utilize the accommodation. See 80 Fed. Reg. 41343-41347 (2015).2

Although this modification solved one RFRA problem, the contraceptive mandate was still objectionable to some religious employers, including the Little Sisters. We considered those objections in Zubik v. Burwell , 578 U. S. ----, 136 S.Ct. 1557, 194 L.Ed.2d 696 (2016) (per curiam ), but instead of resolving the legal dispute, we vacated the decisions below and remanded, instructing the parties to attempt to come to an agreement. Unfortunately, after strenuous efforts, the outgoing administration reported on January 9, 2017, that no reconciliation could be reached.3 The Little Sisters and other employers objected to engaging in any conduct that had the effect of making contraceptives available to their employees under their insurance plans, and no way of providing such coverage to their employees without using their plans could be found.

In 2017, the new administration took up the task of attempting to find a solution. After receiving more than 56,000 comments, it issued the rule now before us, which made the church exemption available to non-governmental employers who object to the provision of some or all contraceptive services based on sincerely held *2389religious beliefs.4 45 C.F.R. § 147.132 (2019) ; see 83 Fed. Reg. 57540, 57590. (The "religious exemption.") The Court of Appeals, as noted, held that RFRA did not require this new rule.

II

A

RFRA broadly prohibits the Federal Government from violating religious liberty. See 42 U.S.C. § 2000bb-1(a). It applies to every "branch, department, agency, [and] instrumentality" of the Federal Government, as well as any "person acting under the color of" federal law. § 2000bb-2(1). And this prohibition applies to the "implementation" of federal law. § 2000bb-3(a). Thus, unless the ACA or some other subsequently enacted statute made RFRA inapplicable to the contraceptive mandate, the Departments responsible for administering that mandate are obligated to do so in a manner that complies with RFRA.

No provision of the ACA abrogates RFRA, and our decision in Hobby Lobby , 573 U.S. at 736, 134 S.Ct. 2751, established that application of the contraceptive mandate must conform to RFRA's demands. Thus, it was incumbent on the Departments to ensure that the rules implementing the mandate were consistent with RFRA, as interpreted in our decision.

B

Under RFRA, the Federal Government may not "substantially burden a person's exercise of religion even if the burden results from a rule of general applicability," unless it "demonstrates that application of the burden to the person-(1) is in furtherance of a compelling governmental interest; and (2) is the least restrictive means of furthering that compelling governmental interest." §§ 2000bb-1(a) - (b). Applying RFRA to the contraceptive mandate thus presents three questions. First, would the mandate substantially burden an employer's exercise of religion? Second, if the mandate would impose such a burden, would it nevertheless serve a "compelling interest"? And third, if it serves such an interest, would it represent "the least restrictive means of furthering" that interest?

Substantial burden . Under our decision in Hobby Lobby , requiring the Little Sisters or any other employer with a similar religious objection to comply with the mandate would impose a substantial burden. Our analysis of this question in Hobby Lobby can be separated into two parts. First, would non-compliance have substantial adverse practical consequences? 573 U.S. at 720-723, 134 S.Ct. 2751. Second, would compliance cause the objecting party to violate its religious beliefs, as it sincerely understands them ? Id. , at 723-726.

The answer to the first question is indisputable. If a covered employer does not comply with the mandate (by providing contraceptive coverage or invoking the accommodation), it faces penalties of $100 per day for each of its employees. 26 U.S.C. § 4980D(b)(1). "And if the employer decides to stop providing health insurance altogether and at least one full-time employee enrolls in a health plan and qualifies for a subsidy on one of the government-run ACA exchanges, the employer must pay $2,000 per year for each of its full-time employees. §§ 4980H(a), (c)(1)." 573 U.S. at 697, 134 S.Ct. 2751. In *2390Hobby Lobby , we found these "severe" financial consequences sufficient to show that the practical effect of non-compliance would be "substantial."5 Id. , at 720, 134 S.Ct. 2751.

Our answer to the second question was also perfectly clear. If an employer has a religious objection to the use of a covered contraceptive, and if the employer has a sincere religious belief that compliance with the mandate makes it complicit in that conduct, then RFRA requires that the belief be honored. Id. , at 724-725. We noted that the objection raised by the employers in Hobby Lobby "implicate[d] a difficult and important question of religion and moral philosophy, namely, the circumstances under which it is wrong for a person to perform an act that is innocent in itself but that has the effect of enabling or facilitating the commission of an immoral act by another." Id. , at 724. We noted that different individuals have different beliefs on this question, but we were clear that "federal courts have no business addressing ... whether the religious belief asserted in a RFRA case is reasonable." Ibid. Instead, the "function" of a court is " 'narrow' ": " 'to determine' whether the line drawn reflects 'an honest conviction.' " Id. , at 725 (quoting Thomas v. Review Bd. of Ind. Employment Security Div. , 450 U.S. 707, 716, 101 S.Ct. 1425, 67 L.Ed.2d 624 (1981) ).

Applying this holding to the Little Sisters yields an obvious answer. It is undisputed that the Little Sisters have a sincere religious objection to the use of contraceptives and that they also have a sincere religious belief that utilizing the accommodation would make them complicit in this conduct. As in Hobby Lobby , "it is not for us to say that their religious beliefs are mistaken or insubstantial." 573 U.S. at 725, 134 S.Ct. 2751.

In reaching a contrary conclusion, the Court of Appeals adopted the reasoning of a prior Third Circuit decision holding that " 'the submission of the self-certification form' " required by the mandate would not " 'trigger or facilitate the provision of contraceptive coverage' " and would not make the Little Sisters " ' "complicit" in the provision' " of objected-to services. 930 F.3d 543, 573 (2019) (quoting Geneva College v. Secretary of U. S. Dept. of Health and Human Servs. , 778 F.3d 422, 437-438 (CA3 2015), vacated and remanded sub nom. Zubik , 578 U. S. ----, 136 S.Ct. 1557 ).

The position taken by the Third Circuit was similar to that of the Government when Zubik was before us. Opposing the position taken by the Little Sisters and others, the Government argued that what the accommodation required was not materially different from simply asking that an objecting party opt out of providing contraceptive coverage with the knowledge that by doing so it would cause a third party to provide that coverage. According to the Government, everything that occurred following the opt-out was a result of governmental action.6

Petitioners disagreed. Their concern was not with notifying the Government that they wished to be exempted from complying *2391with the mandate per se ,7 but they objected to two requirements that they sincerely believe would make them complicit in conduct they find immoral. First, they took strong exception to the requirement that they maintain and pay for a plan under which coverage for contraceptives would be provided. As they explained, if they "were willing to incur ruinous penalties by dropping their health plans, their insurance companies would have no authority or obligation to provide or procure the objectionable coverage for [their] plan beneficiaries."8 Second, they also objected to submission of the self-certification form required by the accommodation because without that certification their plan could not be used to provide contraceptive coverage.9 At bottom, then, the Government and the religious objectors disagreed about the relationship between what the accommodation demanded and the provision of contraceptive coverage.

Our remand in Zubik put these two conflicting interpretations to the test. In response to our request for supplemental briefing, petitioners explained their position in the following terms. "[T]heir religious exercise" would not be "infringed" if they did not have to do anything " 'more than contract for a plan that does not include coverage for some or all forms of contraception,' even if their employees receive[d] cost-free contraceptive coverage from the same insurance company." 578 U. S., at ----, 136 S.Ct., at 1560. At the time, the Government thought that it might be possible to achieve this result under the ACA, ibid ., but subsequent attempts to find a way to do this failed. After great effort, the Government was forced to conclude that it was "not aware of the authority, or of a practical mechanism," for providing contraceptive coverage "specifically to persons covered by an objecting employer, other than by using the employer's plan, issuer, or third party administrator." 83 Fed. Reg. 57545-57546.

The inescapable bottom line is that the accommodation demanded that parties like the Little Sisters engage in conduct that was a necessary cause of the ultimate conduct to which they had strong religious objections. Their situation was the same as that of the conscientious objector in Thomas , 450 U.S. at 715, 101 S.Ct. 1425, who refused to participate in the manufacture of tanks but did not object to assisting in the production of steel used to make the tanks. Where to draw the line in a chain of causation that leads to objectionable conduct is a difficult moral question, and our cases have made it clear that courts cannot override the sincere religious beliefs of an objecting party on that question. See Hobby Lobby , 573 U.S. at 723-726, 134 S.Ct. 2751 ; Thomas , 450 U.S. at 715-716, 101 S.Ct. 1425.

For these reasons, the contraceptive mandate imposes a substantial burden on any employer who, like the Little Sisters, has a sincere religious objection to the use of a listed contraceptive and a sincere religious belief that compliance with the mandate (through the accommodation or otherwise) makes it complicit in the provision to the employer's workers of a contraceptive to which the employer has a religious objection.

*2392Compelling interest . In Hobby Lobby , the Government asserted and we assumed for the sake of argument that the Government had a compelling interest in "ensuring that all women have access to all FDA-approved contraceptives without cost sharing." 573 U.S. at 727, 134 S.Ct. 2751. Now, the Government concedes that it lacks a compelling interest in providing such access, Reply Brief in No. 19-454, p. 10, and this time, the Government is correct.

In order to show that it has a "compelling interest" within the meaning of RFRA, the Government must clear a high bar. In Sherbert v. Verner , 374 U.S. 398, 83 S.Ct. 1790, 10 L.Ed.2d 965 (1963), the decision that provides the foundation for the rule codified in RFRA, we said that " '[o]nly the gravest abuses, endangering paramount interest' " could " 'give occasion for [a] permissible limitation' " on the free exercise of religion. Id. , at 406, 83 S.Ct. 1790. Thus, in order to establish that it has a "compelling interest" in providing free contraceptives to all women, the Government would have to show that it would commit one of "the gravest abuses" of its responsibilities if it did not furnish free contraceptives to all women.

If we were required to exercise our own judgment on the question whether the Government has an obligation to provide free contraceptives to all women, we would have to take sides in the great national debate about whether the Government should provide free and comprehensive medical care for all. Entering that policy debate would be inconsistent with our proper role, and RFRA does not call on us to express a view on that issue. We can answer the compelling interest question simply by asking whether Congress has treated the provision of free contraceptives to all women as a compelling interest.

" '[A] law cannot be regarded as protecting an interest "of the highest order" ... when it leaves appreciable damage to that supposedly vital interest unprohibited.' " Church of Lukumi Babalu Aye, Inc. v. Hialeah , 508 U.S. 520, 547, 113 S.Ct. 2217, 124 L.Ed.2d 472 (1993). Thus, in considering whether Congress has manifested the view that it has a compelling interest in providing free contraceptives to all women, we must take into account "exceptions" to this asserted " 'rule of general applicability.' " Gonzales v. O Centro Espírita Beneficente União do Vegetal , 546 U.S. 418, 436, 126 S.Ct. 1211, 163 L.Ed.2d 1017 (2006) (quoting § 2000bb-1(a) ). And here, there are exceptions aplenty. The ACA-which fails to ensure that millions of women have access to free contraceptives-unmistakably shows that Congress, at least to date, has not regarded this interest as compelling.

First, the ACA does not provide contraceptive coverage for women who do not work outside the home. If Congress thought that there was a compelling need to make free contraceptives available for all women, why did it make no provision for women who do not receive a paycheck? Some of these women may have a greater need for free contraceptives than do women in the work force.

Second, if Congress thought that there was a compelling need to provide cost-free contraceptives for all working women, why didn't Congress mandate that coverage in the ACA itself? Why did it leave it to HRSA to decide whether to require such coverage at all ?

Third, the ACA's very incomplete coverage speaks volumes. The ACA "exempts a great many employers from most of its coverage requirements." Hobby Lobby , 573 U.S. at 699, 134 S.Ct. 2751. "[E]mployers with fewer than 50 employees are not required to provide" any form of health insurance, and a number of large employers with " 'grandfathered' " plans need not *2393comply with the contraceptive mandate. Ibid. ; see 26 U.S.C. § 4980H(c)(2) ; 42 U.S.C. § 18011. According to a recent survey, 13% of the 153 million Americans with employer-sponsored health insurance are enrolled in a grandfathered plan, while only 56% of small firms provide health insurance. Kaiser Family Foundation, Employer Health Benefits: 2019 Annual Survey 7, 44, 209 (2019). In Hobby Lobby , we wrote that "the contraceptive mandate 'presently does not apply to tens of millions of people,' " 573 U.S. at 700, 134 S.Ct. 2751, and it appears that this is still true apart from the religious exemption.10

Fourth, the Court's recognition in today's decision that the ACA authorizes the creation of exemptions that go beyond anything required by the Constitution provides further evidence that Congress did not regard the provision of cost-free contraceptives to all women as a compelling interest.

Moreover, the regulatory exemptions created by the Departments and HRSA undermine any claim that the agencies themselves viewed the provision of contraceptive coverage as sufficiently compelling. From the outset, the church exemption has applied to churches, their integrated auxiliaries, and associations. 76 Fed. Reg. 46623. And because of the way the accommodation operates under the Employee Retirement Income Security Act of 1974, the Departments treated a number of self-insured non-profit organizations established by churches or associations of churches, including religious universities and hospitals, as "effectively exempted" from the contraceptive mandate as well. Brief for Petitioners in No. 19-454, p. 4. The result was a complex and sometimes irrational pattern of exemptions.

The dissent frames the allegedly compelling interest served by the mandate in different terms-as an interest in providing "seamless" cost-free coverage, post , at 2400, 2407, 2411 - 2412 (opinion of GINSBURG, J.)-but this is an even weaker argument. What "seamless" coverage apparently means is coverage under the insurance plan furnished by a woman's employer. So as applied to the Little Sisters, the dissent thinks that it would be a grave abuse if an employee wishing to obtain contraceptives had to take any step that would not be necessary if she wanted to obtain any other medical service. See post , at 2408 - 2409. Apparently, it would not be enough if the Government sent her a special card that could be presented at a pharmacy to fill a prescription for contraceptives without any out-of-pocket expense. Nor would it be enough if she were informed that she could obtain free contraceptives by going to a conveniently located government clinic. Neither of those alternatives would provide "seamless coverage," and thus, according to the dissent, both would be insufficient. Nothing short of capitulation on the part of the Little Sisters would suffice.

This argument is inconsistent with any reasonable understanding of the concept of a "compelling interest." It is undoubtedly convenient for employees to obtain all types of medical care and all pharmaceuticals under their general health insurance plans, and perhaps there are women whose personal situation is such that taking any additional steps to secure contraceptives would be a notable burden. But can it be said that all women or all working women *2394have a compelling need for this convenience?

The ACA does not provide "seamless" coverage for all forms of medical care. Take the example of dental care. Although lack of dental care can cause great pain and may lead to serious health problems, the ACA does not require that a plan cover dental services. Millions of employees must secure separate dental insurance or pay dentist bills out of their own pockets.

In short, it is undoubtedly true that the contraceptive mandate provides a benefit that many women may find highly desirable, but Congress's enactments show that it has not regarded the provision of free contraceptives or the furnishing of "seamless" coverage as "compelling."

Least restrictive means . Even if the mandate served a compelling interest, the accommodation still would not satisfy the "exceptionally demanding" least-restrictive-means standard. Hobby Lobby , 573 U.S. at 728, 134 S.Ct. 2751. To meet this standard, the Government must "sho[w] that it lacks other means of achieving its desired goal without imposing a substantial burden on the exercise of religion." Ibid. ; see also Holt v. Hobbs , 574 U.S. 352, 365, 135 S.Ct. 853, 190 L.Ed.2d 747 (2015) (" '[I]f a less restrictive means is available for the Government to achieve its goals, the Government must use it' ").

In Hobby Lobby , we observed that the Government has "other means" of providing cost-free contraceptives to women "without imposing a substantial burden on the exercise of religion by the objecting parties." 573 U.S. at 728, 134 S.Ct. 2751. "The most straightforward way," we noted, "would be for the Government to assume the cost of providing the ... contraceptives ... to any women who are unable to obtain them under their health-insurance policies." Ibid. In the context of federal funding for health insurance, the cost of such a program would be "minor." Id. , at 729, 134 S.Ct. 2751.11

The Government argued that we should not take this option into account because it lacked statutory authority to create such a program, see ibid. , but we rejected that argument, id. , at 729-730, 134 S.Ct. 2751. Certainly, Congress could create such a program if it thought that providing cost-free contraceptives to all women was a matter of "paramount" concern.

As the Government now points out, Congress has taken steps in this direction. "[E]xisting federal, state, and local programs," including Medicaid, Title X, and Temporary Assistance for Needy Families, already "provide free or subsidized contraceptives to low-income women." Brief for Petitioners in No. 19-454, at 27; see also 83 Fed. Reg. 57548, 57551 (discussing programs).12 And many women who work for *2395employers who have religious objections to the contraceptive mandate may be able to receive contraceptive coverage through a family member's health insurance plan.

In sum, the Departments were right to conclude that applying the accommodation to sincere religious objectors violates RFRA. See id. , at 57546. All three prongs of the RFRA analysis-substantial burden, compelling interest, and least restrictive means-necessitate this answer.

III

Once it was apparent that the accommodation ran afoul of RFRA, the Government was required to eliminate the violation. RFRA does not specify the precise manner in which a violation must be remedied; it simply instructs the Government to avoid "substantially burden[ing]" the "exercise of religion"-i.e. , to eliminate the violation. § 2000bb-1(a) ; see also § 2000bb-1(c) (providing for "appropriate relief" in judicial suit). Thus, in Hobby Lobby , once we held that application of the mandate to the objecting parties violated RFRA, we left it to the Departments to decide how best to rectify this problem. See 573 U.S. at 736, 134 S.Ct. 2751 ; 79 Fed. Reg. 51118 (2014) (proposing to modify the accommodation to extend it to closely held corporations in light of Hobby Lobby ); 80 Fed. Reg. 41324 (final rule explaining that "[t]he Departments believe that the definition adopted in these regulations complies with and goes beyond what is required by RFRA and Hobby Lobby ").

The same principle applies here. Once it is recognized that the prior accommodation violated RFRA in some of its applications, it was incumbent on the Departments to eliminate those violations, and they had discretion in crafting what they regarded as the best solution.

The solution they devised cures the problem, and it is not clear that any narrower exemption would have been sufficient with respect to parties with religious objections to the accommodation. As noted, after great effort, the Government concluded that it was not possible to solve the problem without using an "employer's plan, issuer, or third party administrator." 83 Fed. Reg. 57546. As a result, the Departments turned to the current rule, under which an objecting party must certify that it "objects, based on its sincerely held religious beliefs, to its establishing, maintaining, providing, offering, or arranging for (as applicable)" either "[c]overage or payments for some or all contraceptive services" or "[a] plan, issuer, or third party administrator that provides or arranges such coverage or payments." 45 C.F.R. §§ 147.132(a)(2)(i)-(ii).

The States take exception to the new religious rule on several grounds. First, they complain that it grants an exemption to some employers who were satisfied with the prior accommodation, but there is little basis for this argument. An employer who is satisfied with the accommodation may continue to operate under that regime. See §§ 147.131(c) - (d) ; 83 Fed. Reg. 57569-57571. And unless an employer has a religious objection to the accommodation, it is unclear why an employer would give it up. The accommodation does not impose any cost on an employer, and it provides an *2396added benefit for the employer's work force.

The States also object to the new rule because it makes exemptions available to publicly traded corporations, but the Government is "not aware" of any publicly traded corporations that object to compliance with the mandate. Id. , at 57562. For all practical purposes, therefore, it is not clear that the new rule's provisions concerning entities that object to the mandate on religious grounds go any further than necessary to bring the mandate into compliance with RFRA.

In any event, while RFRA requires the Government to employ the least restrictive means of furthering a compelling interest that burdens religious belief, it does not require the converse-that an accommodation of religious belief be narrowly tailored to further a compelling interest. The latter approach, which is advocated by the States, gets RFRA entirely backwards. See Brief for Respondents 45 ("RFRA could require the religious exemption only if it was the least restrictive means of furthering [the Government's compelling interest]"). Nothing in RFRA requires that a violation be remedied by the narrowest permissible corrective.

Needless to say, the remedy for a RFRA problem cannot violate the Constitution, but the new rule does not have that effect. The Court has held that there is a constitutional right to purchase and use contraceptives. Griswold v. Connecticut , 381 U.S. 479, 85 S.Ct. 1678, 14 L.Ed.2d 510 (1965) ; Carey v. Population Services Int'l , 431 U.S. 678, 97 S.Ct. 2010, 52 L.Ed.2d 675 (1977). But the Court has never held that there is a constitutional right to free contraceptives.

The dissent and the court below suggest that the new rule is improper because it imposes burdens on the employees of entities that the rule exempts, see post , at 2407 - 2409; 930 F.3d at 573-574,13 but the rule imposes no such burden. A woman who does not have the benefit of contraceptive coverage under her employer's plan is not the victim of a burden imposed by the rule or her employer. She is simply not the beneficiary of something that federal law does not provide. She is in the same position as a woman who does not work outside the home or a woman whose health insurance is provided by a grandfathered plan that does not pay for contraceptives or a woman who works for a small business that may not provide any health insurance at all.

* * *

I would hold not only that it was appropriate for the Departments to consider RFRA, but also that the Departments were required by RFRA to create the religious exemption (or something very close to it). I would bring the Little Sisters' legal odyssey to an end.

Justice KAGAN, with whom Justice BREYER joins, concurring in the judgment.

I would uphold HRSA's statutory authority to exempt certain employers from *2397the contraceptive-coverage mandate, but for different reasons than the Court gives. I also write separately because I question whether the exemptions can survive administrative law's demand for reasoned decisionmaking. That issue remains open for the lower courts to address.

The majority and dissent dispute the breadth of the delegation in the Women's Health Amendment to the ACA. The Amendment states that a health plan or insurer must offer coverage for "preventive care and screenings ... as provided for in comprehensive guidelines supported by [HRSA] for purposes of this paragraph." 42 U.S.C. § 300gg-13(a)(4). The disputed question is just what HRSA can "provide for." Both the majority and the dissent agree that HRSA's guidelines can differentiate among preventive services, mandating coverage of some but not others. The opinions disagree about whether those guidelines can also differentiate among health plans, exempting some but not others from the contraceptive-coverage requirement. On that question, all the two opinions have in common is equal certainty they are right. Compare ante, at 2380 - 2381 (majority opinion) (Congress "enacted expansive language offer[ing] no indication whatever that the statute limits what HRSA can designate as preventive care and screenings or who must provide that coverage" (internal quotation marks omitted)), with post, at 2904 (GINSBURG, J., dissenting) ("Nothing in [the statute] accord[s] HRSA authority" to decide "who must provide coverage" (internal quotation marks omitted; emphasis in original)).

Try as I might, I do not find that kind of clarity in the statute. Sometimes when I squint, I read the law as giving HRSA discretion over all coverage issues: The agency gets to decide who needs to provide what services to women. At other times, I see the statute as putting the agency in charge of only the "what" question, and not the "who." If I had to, I would of course decide which is the marginally better reading. But Chevron deference was built for cases like these. See Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc. , 467 U.S. 837, 842-843, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984) ; see also Arlington v. FCC , 569 U.S. 290, 301, 133 S.Ct. 1863, 185 L.Ed.2d 941 (2013) (holding that Chevron applies to questions about the scope of an agency's statutory authority). Chevron instructs that a court facing statutory ambiguity should accede to a reasonable interpretation by the implementing agency. The court should do so because the agency is the more politically accountable actor. See 467 U.S. at 865-866, 104 S.Ct. 2778. And it should do so because the agency's expertise often enables a sounder assessment of which reading best fits the statutory scheme. See id., at 865, 104 S.Ct. 2778.

Here, the Departments have adopted the majority's reading of the statutory delegation ever since its enactment. Over the course of two administrations, the Departments have shifted positions on many questions involving the Women's Health Amendment and the ACA more broadly. But not on whether the Amendment gives HRSA the ability to create exemptions to the contraceptive-coverage mandate. HRSA adopted the original church exemption on the same capacious understanding of its statutory authority as the Departments endorse today. See 76 Fed. Reg. 46623 (2011) ("In the Departments' view, it is appropriate that HRSA, in issuing these Guidelines, takes into account the effect on the religious beliefs of certain religious employers if coverage of contraceptive services were required").1 While the exemption *2398itself has expanded, the Departments' reading of the statutory delegation-that the law gives HRSA discretion over the "who" question-has remained the same. I would defer to that longstanding and reasonable interpretation.

But that does not mean the Departments should prevail when these cases return to the lower courts. The States challenged the exemptions not only as outside HRSA's statutory authority, but also as "arbitrary [and] capricious." 5 U.S.C. § 706(2)(A). Because the courts below found for the States on the first question, they declined to reach the second. That issue is now ready for resolution, unaffected by today's decision. An agency acting within its sphere of delegated authority can of course flunk the test of "reasoned decisionmaking." Michigan v. EPA , 576 U. S. 743, 750, 135 S.Ct. 2699, 192 L.Ed.2d 674 (2015). The agency does so when it has not given "a satisfactory explanation for its action"-when it has failed to draw a "rational connection" between the problem it has identified and the solution it has chosen, or when its thought process reveals "a clear error of judgment." Motor Vehicle Mfrs. Assn. of United States, Inc. v. State Farm Mut. Automobile Ins. Co. , 463 U.S. 29, 43, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983) (internal quotation marks omitted). Assessed against that standard of reasonableness, the exemptions HRSA and the Departments issued give every appearance of coming up short.2

Most striking is a mismatch between the scope of the religious exemption and the problem the agencies set out to address. In the Departments' view, the exemption was "necessary to expand the protections" for "certain entities and individuals" with "religious objections" to contraception. 83 Fed. Reg. 57537 (2018). Recall that under the old system, an employer objecting to the contraceptive mandate for religious reasons could avail itself of the "self-certification accommodation." Ante, at 2376. Upon making the certification, the employer no longer had "to contract, arrange, [or] pay" for contraceptive coverage; instead, its insurer would bear the services' cost. 78 Fed. Reg. 39874 (2013). That device dispelled some employers' objections-but not all. The Little Sisters, among others, maintained that the accommodation itself made them complicit in providing contraception. The measure thus failed to "assuage[ ]" their "sincere religious objections." 82 Fed. Reg. 47799 (2017). Given that fact, the Departments might have chosen to exempt the Little Sisters and other still-objecting groups from the mandate. But the Departments went further still. Their rule exempted all employers with objections to the mandate, even if the accommodation *2399met their religious needs. In other words, the Departments exempted employers who had no religious objection to the status quo (because they did not share the Little Sisters' views about complicity). The rule thus went beyond what the Departments' justification supported-raising doubts about whether the solution lacks a "rational connection" to the problem described. State Farm , 463 U.S. at 43, 103 S.Ct. 2856.3

And the rule's overbreadth causes serious harm, by the Departments' own lights. In issuing the rule, the Departments chose to retain the contraceptive mandate itself. See 83 Fed. Reg. 57537. Rather than dispute HRSA's prior finding that the mandate is "necessary for women's health and well-being," the Departments left that determination in place. HRSA, Women's Preventive Services Guidelines (Dec. 2019), www.hrsa.gov/womens-guidelines-2019; see 83 Fed. Reg. 57537. The Departments thus committed themselves to minimizing the impact on contraceptive coverage, even as they sought to protect employers with continuing religious objections. But they failed to fulfill that commitment to women. Remember that the accommodation preserves employees' access to cost-free contraceptive coverage, while the exemption does not. See ante, at 2374 - 2375. So the Departments (again, according to their own priorities) should have exempted only employers who had religious objections to the accommodation-not those who viewed it as a religiously acceptable device for complying with the mandate. The Departments' contrary decision to extend the exemption to those without any religious need for it yielded all costs and no benefits. Once again, that outcome is hard to see as consistent with reasoned judgment. See State Farm , 463 U.S. at 43, 103 S.Ct. 2856.4

Other aspects of the Departments' handiwork may also prove arbitrary and capricious. For example, the Departments allow even publicly traded corporations to claim a religious exemption. See 83 Fed. Reg. 57562-57563. That option is unusual enough to raise a serious question about whether the Departments adequately supported their choice. Cf. Burwell v. Hobby Lobby Stores, Inc. , 573 U.S. 682, 717, 134 S.Ct. 2751, 189 L.Ed.2d 675 (2014) (noting the oddity of "a publicly traded corporation asserting RFRA rights"). Similarly, the Departments offer an exemption to employers who have moral, rather than *2400religious, objections to the contraceptive mandate. Perhaps there are sufficient reasons for that decision-for example, a desire to stay neutral between religion and non-religion. See 83 Fed. Reg. 57603-57604. But RFRA cast a long shadow over the Departments' rulemaking, see ante, at 2382 - 2384, and that statute does not apply to those with only moral scruples. So a careful agency would have weighed anew, in this different context, the benefits of exempting more employers from the mandate against the harms of depriving more women of contraceptive coverage. In the absence of such a reassessment, it seems a close call whether the moral exemption can survive.

None of this is to say that the Departments could not issue a valid rule expanding exemptions from the contraceptive mandate. As noted earlier, I would defer to the Departments' view of the scope of Congress's delegation. See supra, at 2397 - 2398. That means the Departments (assuming they act hand-in-hand with HRSA) have wide latitude over exemptions, so long as they satisfy the requirements of reasoned decisionmaking. But that "so long as" is hardly nothing. Even in an area of broad statutory authority-maybe especially there-agencies must rationally account for their judgments.

Justice GINSBURG, with whom Justice SOTOMAYOR joins, dissenting.

In accommodating claims of religious freedom, this Court has taken a balanced approach, one that does not allow the religious beliefs of some to overwhelm the rights and interests of others who do not share those beliefs. See, e.g. , Estate of Thornton v. Caldor, Inc. , 472 U.S. 703, 105 S.Ct. 2914, 86 L.Ed.2d 557, 708-710 (1985) ; United States v. Lee , 455 U.S. 252, 102 S.Ct. 1051, 71 L.Ed.2d 127, 258-260 (1982). Today, for the first time, the Court casts totally aside countervailing rights and interests in its zeal to secure religious rights to the nth degree. Specifically, in the Women's Health Amendment to the Patient Protection and Affordable Care Act (ACA), 124 Stat. 119; 155 Cong. Rec. 28841 (2009), Congress undertook to afford gainfully employed women comprehensive, seamless, no-cost insurance coverage for preventive care protective of their health and well-being. Congress delegated to a particular agency, the Health Resources and Services Administration (HRSA), authority to designate the preventive care insurance should cover. HRSA included in its designation all contraceptives approved by the Food and Drug Administration (FDA).

Destructive of the Women's Health Amendment, this Court leaves women workers to fend for themselves, to seek contraceptive coverage from sources other than their employer's insurer, and, absent another available source of funding, to pay for contraceptive services out of their own pockets. The Constitution's Free Exercise Clause, all agree, does not call for that imbalanced result.1 Nor does the Religious *2401Freedom Restoration Act of 1993 (RFRA), 42 U.S.C. § 2000bb et seq. , condone harm to third parties occasioned by entire disregard of their needs. I therefore dissent from the Court's judgment, under which, as the Government estimates, between 70,500 and 126,400 women would immediately lose access to no-cost contraceptive services. On the merits, I would affirm the judgment of the U. S. Court of Appeals for the Third Circuit.

I

A

Under the ACA, an employer-sponsored "group health plan" must cover specified "preventive health services" without "cost sharing," 42 U.S.C. § 300gg-13, i.e. , without such out-of-pocket costs as copays or deductibles.2 Those enumerated services did not, in the original draft bill, include preventive care specific to women. "To correct this oversight, Senator Barbara Mikulski introduced the Women's Health Amendment," now codified at § 300gg-13(a)(4). Burwell v. Hobby Lobby Stores, Inc. , 573 U.S. 682, 134 S.Ct. 2751, 189 L.Ed.2d 675, 741 (2014) (GINSBURG, J., dissenting); see also 155 Cong. Rec. 28841. This provision was designed "to promote equality in women's access to health care," countering gender-based discrimination and disparities in such access. Brief for 186 Members of the United States Congress as Amici Curiae 6 (hereinafter Brief for 186 Members of Congress). Its proponents noted, inter alia , that "[w]omen paid significantly more than men for preventive care," and that "cost barriers operated to block many women from obtaining needed care at all." Hobby Lobby , 573 U.S. at 742, 134 S.Ct. 2751 (GINSBURG, J., dissenting); see, e.g. , 155 Cong. Rec. 28844 (statement of Sen. Hagan) ("When ... women had to choose between feeding their children, paying the rent, and meeting other financial obligations, they skipped important preventive screenings and took a chance with their personal health.").

Due to the Women's Health Amendment, the preventive health services that group health plans must cover include, "with respect to women," "preventive care and screenings ... provided for in comprehensive guidelines supported by [HRSA]." § 300gg-13(a)(4). Pursuant to this instruction, HRSA undertook, after consulting the Institute of Medicine,3 to state "what preventive services are necessary for women's health and well-being and therefore should be considered in the development of comprehensive guidelines for preventive services for women."4 The resulting "Women's Preventive Services *2402Guidelines" issued in August 2011.5 Under these guidelines, millions of women who previously had no, or poor quality, health insurance gained cost-free access, not only to contraceptive services but as well to, inter alia, annual checkups and screenings for breast cancer, cervical cancer, postpartum depression, and gestational diabetes.6 As to contraceptive services, HRSA directed that, to implement § 300gg-13(a)(4), women's preventive services encompass "all [FDA] approved contraceptive methods, sterilization procedures, and patient education and counseling for all women with reproductive capacity."7

Ready access to contraceptives and other preventive measures for which Congress set the stage in § 300gg-13(a)(4) both safeguards women's health and enables women to chart their own life's course. Effective contraception, it bears particular emphasis, "improves health outcomes for women and [their] children," as "women with unintended pregnancies are more likely to receive delayed or no prenatal care" than women with planned pregnancies. Brief for 186 Members of Congress 5 (internal quotation marks omitted); Brief for American College of Obstetricians and Gynecologists et al. as Amici Curiae 10 (hereinafter ACOG Brief) (similar). Contraception is also "critical for individuals with underlying medical conditions that would be further complicated by pregnancy," "has ... health benefits unrelated to preventing pregnancy," (e.g. , it can reduce the risk of endometrial and ovarian cancer ), Brief for National Women's Law Center et al. as Amici Curiae 23-24, 26 (hereinafter NWLC Brief), and "improves women's social and economic status," by "allow[ing] [them] to invest in higher education and a career with far less risk of an unplanned pregnancy," Brief for 186 Members of Congress 5-6 (internal quotation marks omitted).

B

For six years, the Government took care to protect women employees' access to critical preventive health services while accommodating the diversity of religious opinion on contraception. The Internal Revenue Service (IRS), the Employee Benefits Security Administration (EBSA), and the Center for Medicare and Medicaid Services (CMS) crafted a narrow exemption relieving houses of worship, "their integrated auxiliaries," "conventions or associations of churches," and "religious order[s]" from the contraceptive-coverage requirement. 76 Fed. Reg. 46623 (2011). For other nonprofit and closely held for-profit organizations opposed to contraception on religious grounds, the agencies made available an accommodation rather than an exemption. See 78 Fed. Reg. 39874 (2013) ; Hobby Lobby , 573 U.S. at 730-731, 134 S.Ct. 2751.

"Under th[e] accommodation, [an employer] can self-certify that it opposes providing coverage for particular contraceptive services. See 45 C.F.R. §§ 147.131(b)(4), (c)(1) [ (2013) ]; 26 C.F.R. §§ 54.9815-2713A(a)(4), (b). If [an employer] makes such a certification, the [employer's] insurance issuer or *2403third-party administrator must '[e]xpressly exclude contraceptive coverage from the group health insurance coverage provided in connection with the group health plan' and '[p]rovide separate payments for any contraceptive services required to be covered' without imposing 'any cost-sharing requirements ... on the [employer], the group health plan, or plan participants or beneficiaries.' 45 C.F.R. § 147.131(c)(2) ; 26 C.F.R. § 54.9815-2713A(c)(2)." Id. , at 731, 134 S.Ct. 2751 (some alterations in original).8

The self-certification accommodation, the Court observed in Hobby Lobby , "does not impinge on [an employer's] belief that providing insurance coverage for ... contraceptives ... violates [its] religion." Ibid . It serves "a Government interest of the highest order," i.e. , providing women employees "with cost-free access to all FDA-approved methods of contraception." Id. , at 729, 134 S.Ct. 2751. And "it serves [that] stated interes[t] ... well." Id. , at 731, 134 S.Ct. 2751 ; see id., at 693, 134 S.Ct. 2751 (Government properly accommodated employer's religion-based objection to covering contraceptives under employer's health insurance plan when the harm to women of doing so "would be precisely zero"). Since the ACA's passage, "[gainfully employed] [w]omen, particularly in lower-income groups, have reported greater affordability of coverage, access to health care, and receipt of preventive services." Brief for 186 Members of Congress 21.

C

Religious employers, including petitioner Little Sisters of the Poor Saints Peter and Paul Home (Little Sisters), nonetheless urge that the self-certification accommodation renders them "complicit in providing [contraceptive] coverage to which they sincerely object." Brief for Little Sisters 35. In 2017, responsive to the pleas of such employers, the Government abandoned its effort to both end discrimination against employed women in access to preventive services and accommodate religious exercise. Under new rules drafted not by HRSA, but by the IRS, EBSA, and CMS, any "non-governmental employer"-even a publicly traded for-profit company-can avail itself of the religious exemption previously reserved for houses of worship. 82 Fed. Reg. 47792 (2017) (interim final rule); 45 C.F.R. § 147.132(a)(1)(i)(E) (2018).9 More than 2.9 million Americans-including approximately 580,000 women of childbearing age-receive insurance through organizations newly eligible for this blanket exemption. 83 Fed. Reg. 57577-57578 (2018). Of cardinal significance, the exemption contains no alternative mechanism to ensure affected women's continued access to contraceptive coverage. See 45 C.F.R. § 147.132.

Pennsylvania and New Jersey, respondents here, sued to enjoin the exemption. Their lawsuit posed this core question: May the Government jettison an arrangement *2404that promotes women workers' well-being while accommodating employers' religious tenets and, instead, defer entirely to employers' religious beliefs, although that course harms women who do not share those beliefs? The District Court answered "no," and preliminarily enjoined the blanket exemption nationwide. 281 F.Supp.3d 553, 585 (ED Pa. 2017). The Court of Appeals affirmed. 930 F.3d 543, 576 (CA3 2019). The same question is now presented for ultimate decision by this Court.

II

Despite Congress' endeavor, in the Women's Health Amendment to the ACA, to redress discrimination against women in the provision of healthcare, the exemption the Court today approves would leave many employed women just where they were before insurance issuers were obliged to cover preventive services for them, cost free. The Government urges that the ACA itself authorizes this result, by delegating to HRSA authority to exempt employers from the contraceptive-coverage requirement. This argument gains the Court's approbation. It should not.

A

I begin with the statute's text. But see ante , at 2381 (opinion of the Court) (overlooking my starting place). The ACA's preventive-care provision, 42 U.S.C. § 300gg-13(a), reads in full:

"A group health plan and a health insurance issuer offering group or individual health insurance coverage shall, at a minimum provide coverage for and shall not impose any cost sharing requirements for-
"(1) evidence-based items or services that have in effect a rating of 'A' or 'B' in the current recommendations of the United States Preventive Services Task Force;
"(2) immunizations that have in effect a recommendation from the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention with respect to the individual involved; ...
"(3) with respect to infants, children, and adolescents, evidence-informed preventive care and screenings provided for in the comprehensive guidelines supported by [HRSA; and]
"(4) with respect to women, such additional preventive care and screenings not described in paragraph (1) as provided for in comprehensive guidelines supported by [HRSA] for purposes of this paragraph."

At the start of this provision, Congress instructed who is to "provide coverage for" the specified preventive health services: "group health plan[s]" and "health insurance issuer[s]." § 300gg-13(a). As the Court of Appeals explained, paragraph (a)(4), added by the Women's Health Amendment, granted HRSA "authority to issue 'comprehensive guidelines' concern[ing] the type of services" group health plans and health insurance issuers must cover with respect to women. 930 F.3d at 570 (emphasis added). Nothing in paragraph (a)(4) accorded HRSA "authority to undermine Congress's [initial] directive," stated in subsection (a), "concerning who must provide coverage for these services." Ibid. (emphasis added).

The Government argues otherwise, asserting that "[t]he sweeping authorization for HRSA to 'provide[ ] for' and 'support[ ]' guidelines 'for purposes of' the women's preventive-services mandate clearly grants HRSA the power not just to specify what services should be covered, but also to provide appropriate exemptions." Brief for *2405HHS et al. 15.10 This terse statement-the entirety of the Government's textual case-slights the language Congress employed. Most visibly, the Government does not endeavor to explain how any language in paragraph (a)(4) counteracts Congress' opening instruction in § 300gg-13(a) that group health plans "shall ... provide" specified services. See supra , at 2404 - 2405.

The Court embraces, and the opinion concurring in the judgment adopts, the Government's argument. The Court correctly acknowledges that HRSA has broad discretion to determine what preventive services insurers should provide for women. Ante , at 2380. But it restates that HRSA's "discretion [is] equally unchecked in other areas, including the ability to identify and create exemptions from its own Guidelines." Ante , at 2380. See also ante , at 2397 - 2398 (KAGAN, J., concurring in judgment) (agreeing with this interpretation). Like the Government, the Court and the opinion concurring in the judgment shut from sight § 300gg-13(a) 's overarching direction that group health plans and health insurance issuers "shall" cover the specified services. See supra , at 2404 - 2405. That " 'absent provision[s] cannot be supplied by the courts,' " ante , at 2381 (quoting Rotkiske v. Klemm , 589 U. S. ----, ----, 140 S.Ct. 355, 361, 205 L.Ed.2d 291 (2019)), militates against the Court's conclusion, not in favor of it. Where Congress wanted to exempt certain employers from the ACA's requirements, it said so expressly. See, e.g. , supra, at 2401, n. 2. Section 300gg-13(a)(4) includes no such exemption. See supra , at 2404 - 2405.11

B

The position advocated by the Government and endorsed by the Court and the opinion concurring in the judgment encounters further obstacles.

Most saliently, the language in § 300gg-13(a)(4) mirrors that in § 300gg-13(a)(3), the provision addressing children's preventive health services. Not contesting here that HRSA lacks authority to exempt group health plans from the children's preventive-care guidelines, the Government attempts to distinguish paragraph (a)(3) from paragraph (a)(4). Brief for HHS et al. 16-17. The attempt does not withstand inspection.

The Government first observes that (a)(4), unlike (a)(3), contemplates guidelines created "for purposes of this paragraph ." (Emphasis added.) This language does not speak to the scope of the guidelines HRSA is charged to create. Moreover, the Government itself accounts for this textual difference: The children's preventive-care guidelines described in paragraph (a)(3) were "preexisting guidelines ... developed for purposes unrelated to the ACA." Brief for HHS et al. 16. The guidelines on women's preventive care, by contrast, did not exist before the ACA; they had to be created "for purposes of" the preventive-care mandate. § 300gg-13(a)(4). The Government next points to the modifier "evidence-informed" placed in (a)(3), but absent in (a)(4). This omission, however it may bear on the kind of preventive *2406services for women HRSA can require group health insurance to cover, does not touch or concern who is required to cover those services.12

HRSA's role within HHS also tugs against the Government's, the Court's, and the opinion concurring in the judgment's construction of § 300gg-13(a)(4). That agency was a logical choice to determine what women's preventive services should be covered, as its mission is to "improve health care access" and "eliminate health disparities."13 First and foremost, § 300gg-13(a)(4) is directed at eradicating gender-based disparities in access to preventive care. See supra , at 2401. Overlooked by the Court, see ante, at 2379 - 2382, and the opinion concurring in the judgment, see ante , at 2397 - 2398 (opinion of KAGAN, J.), HRSA's expertise does not include any proficiency in delineating religious and moral exemptions. One would not, therefore, expect Congress to delegate to HRSA the task of crafting such exemptions. See King v. Burwell , 576 U. S. 473, 486, 135 S.Ct. 2480, 192 L.Ed.2d 483 (2015) ("It is especially unlikely that Congress would have delegated this decision to [an agency] which has no expertise in ... policy of this sort.").14

In fact, HRSA did not craft the blanket exemption. As earlier observed, see supra , at 2403 - 2404, that task was undertaken by the IRS, EBSA, and CMS. See also 45 C.F.R. § 147.132(a)(1), 147.133(a)(1) (direction by the IRS, EBSA, and CMS that HRSA's guidelines "must not provide for" contraceptive coverage in the circumstances described in the blanket exemption (emphasis added)). Nowhere in 42 U.S.C. § 300gg-13(a)(4) are those agencies named, as earlier observed, see supra, at 2404 - 2405, an absence the Government, the Court, and the opinion concurring in the judgment do not deign to acknowledge. See Brief for HHS et al. 15-20; ante , at 2379 - 2382 (opinion of the Court); ante , at 2397 - 2398 (opinion of KAGAN, J.).

C

If the ACA does not authorize the blanket exemption, the Government urges, then the exemption granted to houses of worship in 2011 must also be invalid. Brief for HHS et al. 19-20. As the Court of Appeals explained, however, see 930 F.3d at 570, n. 26, the latter exemption is not attributable to the ACA's text; it was justified on First Amendment grounds. See Hosanna-Tabor Evangelical Lutheran Church and School v. EEOC , 565 U.S. 171, 188, 132 S.Ct. 694, 181 L.Ed.2d 650 (2012) (the First Amendment's "ministerial exception" protects "the internal governance of [a] church"); 80 Fed. Reg. 41325 (2015) (the exemption "recogni[zes] [the] particular sphere of autonomy [afforded to] houses of worship ... consistent with their special status under longstanding tradition in our society").15 Even if the house-of-worship *2407exemption extends beyond what the First Amendment would require, see ante , at 2397 - 2398, n. 1 (opinion of KAGAN, J.), that extension, as just explained, cannot be extracted from the ACA's text.16

III

Because I conclude that the blanket exemption gains no aid from the ACA, I turn to the Government's alternative argument. The religious exemption, if not the moral exemption, the Government urges, is necessary to protect religious freedom. The Government does not press a free exercise argument, see supra , at 2400 - 2401, and n. 1, instead invoking RFRA. Brief for HHS et al. 20-31. That statute instructs that the "Government shall not substantially burden a person's exercise of religion even if the burden results from a rule of general applicability," unless doing so "is the least restrictive means of furthering [a] compelling governmental interest." 42 U.S.C. § 2000bb-1(a), (b).

A

1

The parties here agree that federal agencies may craft accommodations and exemptions to cure violations of RFRA. See, e.g ., Brief for Respondents 36.17 But that authority is not unbounded. Cutter v. Wilkinson , 544 U.S. 709, 720, 125 S.Ct. 2113, 161 L.Ed.2d 1020 (2005) (construing Religious Land Use and Institutionalized Persons Act of 2000, the Court cautioned that "adequate account" must be taken of "the burdens a requested accommodation may impose on nonbeneficiaries" of the Act); Caldor , 472 U.S. at 708-710, 105 S.Ct. 2914 (invalidating state statute requiring employers to accommodate an employee's religious observance for failure to take into account the burden such an accommodation would impose on the employer and other employees). "[O]ne person's right to free exercise must be kept in harmony with the rights of her fellow citizens." Hobby Lobby, 573 U.S. at 765, n. 25, 134 S.Ct. 2751 (GINSBURG, J., dissenting). See also id. , at 746, 134 S.Ct. 2751 ("[Y]our right to swing your arms ends just where the other man's nose begins." (quoting Chafee, Freedom of Speech in War Time, 32 Harv. L. Rev. 932, 957 (1919) )).

In this light, the Court has repeatedly assumed that any religious accommodation to the contraceptive-coverage requirement would preserve women's continued access to seamless, no-cost contraceptive coverage. See Zubik v. Burwell , 578 U. S. ----, ----, 136 S.Ct. 1557, 1560, 194 L.Ed.2d 696 (2016) (per curiam ) ("[T]he parties on remand *2408should be afforded an opportunity to arrive at an approach ... that accommodates petitioners' religious exercise while ... ensuring that women covered by petitioners' health plans receive full and equal health coverage, including contraceptive coverage." (internal quotation marks omitted)); Wheaton College v. Burwell , 573 U.S. 958, 959, 134 S.Ct. 2806, 189 L.Ed.2d 856 (2014) ("Nothing in this interim order affects the ability of applicant's employees and students to obtain, without cost, the full range of [FDA] approved contraceptives."); Hobby Lobby , 573 U.S. at 692, 134 S.Ct. 2751 ("There are other ways in which Congress or HHS could equally ensure that every woman has cost-free access to ... all [FDA]-approved contraceptives. In fact, HHS has already devised and implemented a system that seeks to respect the religious liberty of religious nonprofit corporations while ensuring that the employees of these entities have precisely the same access to all FDA-approved contraceptives as employees of [other] companies.").

The assumption made in the above-cited cases rests on the basic principle just stated, one on which this dissent relies: While the Government may "accommodate religion beyond free exercise requirements," Cutter , 544 U.S. at 713, 125 S.Ct. 2113, when it does so, it may not benefit religious adherents at the expense of the rights of third parties. See, e.g. , id. , at 722, 125 S.Ct. 2113 ("[A]n accommodation must be measured so that it does not override other significant interests."); Caldor , 472 U.S. at 710, 105 S.Ct. 2914 (religious exemption was invalid for its "unyielding weighting in favor of" interests of religious adherents "over all other interests"). Holding otherwise would endorse "the regulatory equivalent of taxing non-adherents to support the faithful." Brief for Church-State Scholars as Amici Curiae 3.

2

The expansive religious exemption at issue here imposes significant burdens on women employees. Between 70,500 and 126,400 women of childbearing age, the Government estimates, will experience the disappearance of the contraceptive coverage formerly available to them, 83 Fed. Reg. 57578-57580 ; indeed, the numbers may be even higher.18 Lacking any alternative insurance coverage mechanism, see supra , at 2403 - 2404, the exemption leaves women two options, neither satisfactory.

The first option-the one suggested by the Government in its most recent rulemaking, 82 Fed. Reg. 47803 -is for women to seek contraceptive care from existing government-funded programs. Such programs, serving primarily low-income individuals, are not designed to handle an influx of tens of thousands of previously insured women.19 Moreover, as the Government *2409has acknowledged, requiring women "to take steps to learn about, and to sign up for, a new health benefit" imposes "additional barriers," "mak[ing] that coverage accessible to fewer women." 78 Fed. Reg. 39888. Finally, obtaining care from a government-funded program instead of one's regular care provider creates a continuity-of-care problem, "forc[ing those] who lose coverage away from trusted providers who know their medical histories." NWLC Brief 18.

The second option for women losing insurance coverage for contraceptives is to pay for contraceptive counseling and devices out of their own pockets. Notably, however, "the most effective contraception is also the most expensive." ACOG Brief 14-15. "[T]he cost of an IUD [intrauterine device ]," for example, "is nearly equivalent to a month's full-time pay for workers earning the minimum wage." Hobby Lobby , 573 U.S. at 762, 134 S.Ct. 2751 (GINSBURG, J., dissenting). Faced with high out-of-pocket costs, many women will forgo contraception, Brief for 186 Members of Congress 11, or resort to less effective contraceptive methods, 930 F.3d at 563.

As the foregoing indicates, the religious exemption "reintroduce[s] the very health inequities and barriers to care that Congress intended to eliminate when it enacted the women's preventive services provision of the ACA." NWLC Brief 5. "No tradition, and no prior decision under RFRA, allows a religion-based exemption when [it] would be harmful to others-here, the very persons the contraceptive coverage requirement was designed to protect." Hobby Lobby , 573 U.S. at 764, 134 S.Ct. 2751 (GINSBURG, J., dissenting).20 I would therefore hold the religious exemption neither required nor permitted by RFRA.21

B

Pennsylvania and New Jersey advance an additional argument: The exemption is not authorized by RFRA, they maintain, because the self-certification accommodation it replaced was sufficient to alleviate any substantial burden on religious exercise. Brief for Respondents 36-42. That accommodation, I agree, further indicates the religious exemption's flaws.

1

For years, religious organizations have challenged the self-certification accommodation as insufficiently protective of their religious rights. See, e.g. , Zubik , 578 U. S., at ----, 136 S.Ct., at 1560. While I do not doubt the sincerity of these organizations' opposition to that accommodation, Hobby Lobby , 573 U.S. at 758-759, 134 S.Ct. 2751 (GINSBURG. J., dissenting), I agree with Pennsylvania and New Jersey that the accommodation does not substantially burden objectors' religious exercise.

*2410As Senator Hatch observed, "[RFRA] does not require the Government to justify every action that has some effect on religious exercise." 139 Cong. Rec. 26180 (1993). Bowen v. Roy , 476 U.S. 693, 106 S.Ct. 2147, 90 L.Ed.2d 735 (1986), is instructive in this regard. There, a Native American father asserted a sincere religious belief that his daughter's spirit would be harmed by the Government's use of her social security number. Id. , at 697, 106 S.Ct. 2147. The Court, while casting no doubt on the sincerity of this religious belief, explained:

"Never to our knowledge has the Court interpreted the First Amendment to require the Government itself to behave in ways that the individual believes will further his or her spiritual development or that of his or her family. The Free Exercise Clause simply cannot be understood to require the Government to conduct its own internal affairs in ways that comport with the religious beliefs of particular citizens." Id ., at 699, 106 S.Ct. 2147.22

Roy signals a critical distinction in the Court's religious exercise jurisprudence: A religious adherent may be entitled to religious accommodation with regard to her own conduct, but she is not entitled to "insist that ...others must conform their conduct to [her] own religious necessities.' " Caldor , 472 U.S. at 710, 105 S.Ct. 2914 (quoting Otten v. Baltimore & Ohio R. Co. , 205 F.2d 58, 61 (CA2 1953) ) (Hand, J.); (emphasis added).23 Counsel for the Little Sisters acknowledged as much when he conceded that religious "employers could [not] object at all" to a "government obligation" to provide contraceptive coverage "imposed directly on the insurers." Tr. of Oral Arg. 41.24

But that is precisely what the self-certification accommodation does. As the Court recognized in Hobby Lobby : "When a group-health-insurance issuer receives notice that [an employer opposes coverage for some or all contraceptive services for religious reasons], the issuer must then exclude [that] coverage from the employer's plan and provide separate payments for contraceptive services for plan participants." 573 U.S. at 698-699, 134 S.Ct. 2751 ; see also id., at 738, 134 S.Ct. 2751 (Kennedy, J., concurring) ("The accommodation works by requiring insurance companies to cover ... contraceptive coverage for female employees who wish it." (emphasis added)). Under the self-certification accommodation, then, the objecting employer is absolved of any obligation to provide the contraceptive coverage to which it objects; that obligation is transferred to the insurer. This arrangement *2411"furthers the Government's interest [in women's health] but does not impinge on the [employer's] religious beliefs." Ibid . ; see supra , at 2409 - 2410.

2

The Little Sisters, adopting the arguments made by religious organizations in Zubik , resist this conclusion in two ways. First, they urge that contraceptive coverage provided by an insurer under the self-certification accommodation forms "part of the same plan as the coverage provided by the employer." Brief for Little Sisters 12 (internal quotation marks omitted). See also Tr. of Oral Arg. 29 (Little Sisters object "to having their plan hijacked"); ante , at 2391 (ALITO, J., concurring) (Little Sisters object to "maintain[ing] and pay[ing] for a plan under which coverage for contraceptives would be provided"). This contention is contradicted by the plain terms of the regulation establishing that accommodation: To repeat, an insurance issuer "must ...[e]xpressly exclude contraceptive coverage from the group health insurance coverage provided in connection with the group health plan." 45 C.F.R. § 147.131(c)(2)(i)(A) (2013) (emphasis added); see supra, at 2402 - 2403.25

Second, the Little Sisters assert that "tak[ing] affirmative steps to execute paperwork ... necessary for the provision of 'seamless' contraceptive coverage to their employees" implicates them in providing contraceptive services to women in violation of their religious beliefs. Little Sisters Reply Brief 7. At the same time, however, they have been adamant that they do not oppose merely "register[ing] their objections" to the contraceptive-coverage requirement. Ibid. See also Tr. of Oral Arg. 29, 42-43 (Little Sisters have "no objection to objecting"); ante , at 2390 - 2391 (ALITO, J., concurring) (Little Sisters' "concern was not with notifying the Government that they wished to be exempted from complying with the mandate per se "). These statements, taken together, reveal that the Little Sisters do not object to what the self-certification accommodation asks of them , namely, attesting to their religious objection to contraception. See supra , at 2402 - 2403. They object, instead, to the particular use insurance issuers make of that attestation. See supra , at 2409 - 2410.26 But that use originated from the ACA and its once-implementing regulation, not from religious employers' self-certification or alternative notice.

* * *

The blanket exemption for religious and moral objectors to contraception formulated by the IRS, EBSA, and CMS is inconsistent with the text of, and Congress' intent for, both the ACA and RFRA. Neither law authorizes it.27 The *2412original administrative regulation accommodating religious objections to contraception appropriately implemented the ACA and RFRA consistent with Congress' staunch determination to afford women employees equal access to preventive services, thereby advancing public health and welfare and women's well-being. I would therefore affirm the judgment of the Court of Appeals.28

2.2.3.2.2 Rulemaker Independence 2.2.3.2.2 Rulemaker Independence

2.2.3.2.2.1 Home Box Office, Inc. v. Federal Communications Commission 2.2.3.2.2.1 Home Box Office, Inc. v. Federal Communications Commission

HOME BOX OFFICE, INC., Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, Professional Baseball et al., Intervenors.

No. 75-1280.*

United States Court of Appeals, District of Columbia Circuit.

Argued April 20, 1976.

Decided March 25, 1977.

Special Concurring Opinion filed May 20, 1977.

*15Simon H. Rifkind, New York City, of the bar of the Court of Appeals of New York, *16pro hac vice, by special leave of court, with whom Stuart Robinowitz and Bruce S. Kap-lan, New York City, Harry M. Plotkin, George H. Shapiro, Linda A. Cinciotta and Ronald A. Cass, Washington, D.C., and Susan P. Carr and Moses Silverman, New York City, were on the brief, for petitioner in Nos. 75-1280, 75-1342, and 75-1358.

Robert W. Coll, Washington, D.C., with whom James A. McKenna, Jr. and Steven A. Lerman, Washington, D.C., were on the brief, for petitioner in Nos. 75-1788 and 75-2130 and for intervenor American Broadcasting Companies, Inc. in Nos. 75-1280, 75-1284, 75-1342, 75-1430, 75-1496, 75-1555, and 75-1358; also argued for all broadcasters.

Arthur Scheiner, Washington, D.C., with whom Richard A. Solomon, Robert D. Hadl, and Richard A. Moore, Washington, D.C., were on the brief, for petitioners in No. 75-1430.

Gerald Meyer, New York City, of the bar of the Court of Appeals of New York, pro hac vice, by special leave of court, with whom Lawrence S. Lesser, Arlington, Va., was on the brief, for petitioners in No. 75-1496.

Barry Grossman, Atty., Dept, of Justice, Washington, D.C., with whom Samuel R. Simon, Atty., Dept, of Justice, Washington, D.C., was on the brief, for respondent United States of America. Robert B. Nicholson, Atty., Dept, of Justice, Washington, D.C., entered an appearance for respondent United States of America in No. 75-1785. Lee I. Weintraub, Atty., Dept, of Justice, Washington, D.C., entered an appearance for respondent United States of America in No. 75-2172. Carl D. Lawson, Atty., Dept, of Justice, Washington, D.C., entered an appearance for respondent United States of America.

Daniel M. Armstrong, Associate Gen. Counsel, F. C. C., Washington, D.C., with whom Ashton R. Hardy, Gen. Counsel, and Jack David Smith, Counsel, F. C. C., and Frederick W. Finn, Counsel, Cable Television Bureau, Washington, D.C., were on the brief, for respondent F. C. C. Joseph A. Marino, Associate Gen. Counsel, F. C. C., Washington, D.C., at the time the record was filed, also entered an appearance for respondent F. C. C.

Curtis T. White, Washington, D.C., with whom Frank W. Lloyd, III, Washington, D.C., was on the brief, for intervenor National Citizens Committee for Broadcasting.

Thomas J. Dougherty and Preston R. Padden, Washington, D.C., were on the brief for petitioner in No. 75-1284.

John B. Summers and James J. Popham, Washington, D.C., were on the brief for petitioner in Nos. 75-1785 and 75-2131.

Sidney Schreiber and James Bouras, New York City, were on the brief for petitioner in No. 75-1555.

Joel Rosenbloom, Peter D. Bewley, Stephen A. Weiswasser, and Lowell B. Miller, Washington, D.C., were on the brief for petitioner in Nos. 75-1807 and 75-2129 and for intervenor CBS Inc. in Nos. 75-1280, 75-1284, and 75-1358. J. Roger Wollen-berg, Washington, D.C., entered an appearance for petitioner in No. 75-1807.

Bernard G. Segal, Philadelphia, Pa., Cory-don B. Dunham, New York City, and Howard Monderer, Washington, D.C., were on the brief for petitioner in Nos. 75-1869 and 75-2171.

Henry Geller, Washington, D.C., filed a brief as amicus curiae urging reversal in Nos. 75-1280, 75-1284, 75-1342, 75-1358, 75-1430, 75-1470, 75-1496, and 75-1555.

Kenneth A. Cox, William J. Byrnes, and Raymond C. Fay, Washington, D.C., filed a brief on behalf of American Mothers Committee, Inc., et aL, as amici curiae.

James F. Fitzpatrick and Frank G. Washington, Washington, D.C., were on the brief for intervenor Professional Baseball in Nos. 75-1280, 75-1284, 75-1358, 75-1430, and 75-1496.

James A. McKenna, Jr., Robert W. Coll, and Steven A. Lerman, Washington, D.C., entered appearances for intervenors Forward Communications Corporation, et al, in Nos. 75-1280, 75-1284, 75-1358, 75-1430, 75-1496, and 75-1555.

Arthur Scheiner, Washington, D.C., entered an appearance for intervenor Twentieth Century-Fox Film Corp.

*17Before WRIGHT and MacKINNON, Circuit Judges, and WEIGEL,* District Judge.

*

Consolidated with the following petitions in which the Federal Communications Commission is the Respondent: Metromedia, Inc., 75-1284; Home Box Office, Inc., 75-1342, 1358; Columbia Pictures Industries, Inc., 75-1430; United Artists Corp., 75-1496; Motion Picture Association of America, Inc., 75-1555; National Association of Broadcasters, 75-1785, 2131; American Broadcasting Companies, Inc., 75-1788, 2130; CBS, Inc., 75-1807, 2129; National Broadcasting Co., Inc., 75-1869, 2172.

*

Of the United States District Court for the Northern District of California, sitting by designation pursuant to 28 U.S.C. § 292(d) (1970).

PER CURIAM:1

In these 15 eases, consolidated for purposes of argument and decision, petitioners challenge various facets of four orders of the Federal Communications Commission which, taken together, regulate and limit the program fare “cablecasters”2 and “subscription broadcast television stations”3 may offer to the public for a fee set on a per-program or per-channel basis.4 Technically, the orders reviewed here amend previous, more stringent, Commission rules.5 While this procedural nicety has not gone *18unnoticed by those petitioners who attack only the amendments to the rules on the theory that they represent a major, but unexplained and hence arbitrary, change of prior Commission policy,6 it has largely escaped those who take the opposing view that any regulation exceeds the authority of the Commission.7 We accept neither view in full but instead uphold the orders challenged here insofar as they relate to subscription broadcast television and vacate the orders as arbitrary, capricious, and unauthorized by law in all other respects.

I. THE FACTUAL BACKGROUND

At the heart of these cases are the Commission’s “pay cable” rules, set out in the margin for convenience.8 The effect of *19these rules is to restrict sharply the ability of cablecasters to present feature film and sports programs if a separate program or channel charge is made for this material. In addition, the rules prohibit cablecasters from devoting more than 90 percent of their cablecast hours tc movie and sports programs and further bar cablecasters from showing commercial advertising on cable channels on which programs are presented for a direct charge to the viewer.9 Virtually identical restrictions apply to subscription broadcast television.10 To understand *20the function of these rules, it is useful to trace their .origins.

The first application to establish a subscription broadcast television service was *21filed with the Commission in 1952.11 After a series of administrative proceedings and hearings before Congress,12 the Commission announced in 1959 that it would license a number of trial systems in order to gather information about the technical and economic aspects of subscription television.13 In its Fourth Report and Order, 15 FCC 2d 466, issued in 1968, the Commission analyzed in detail results achieved in the Hartford, Connecticut trial system and concluded that permanent subscription operations should be authorized with certain limitations.

For present purposes, the relevant limitations included restrictions on feature films, sports events, and series programs that could be shown for a fee, and prohibited commercial advertising during subscription operations.14 The purpose of these limitations was twofold. First, the Commission had agonized over both its authority to dedicate one or more channels from the electronic spectrum to subscription operations and the desirability of doing so. Such channels are scarce, and opponents of subscription television had argued that they should be used for conventional programming which would, of course, be free to all viewers.15 The Commission ultimately concluded that it had the required authority,16 a position sustained by this Court in National Ass’n of Theatre Owners (NATO) v. FCC, 136 U.S.App.D.C. 352, 420 F.2d 194 (1969), cert, denied, 397 U.S. 922, 90 S.Ct. 914, 25 L.Ed.2d 102 (1970), but that subscription service would not be desirable unless the programming presented was distinct from that on conventional advertiser-supported television.17 As a result, the Commission placed restrictions on the number of hours of feature films and sports programs, both readily available on conventional television, that could be shown and prohibited commercial advertising in an effort to remove any economic pressure to appeal to a mass audience, a pressure to which the Commission attributed the sameness of conventional television fare.18 A second reason for restricting the feature films, sports events, and series programs that could be shown on subscription television was the Commission’s fear that the revenue derived from subscription operations would be sufficient to allow subscription operators to bid away the best programs in these categories, thus reducing the quality of conventional television.19 By limiting the subscription operator to material that would not otherwise be shown on television, the Commission hoped both to prevent such “siphoning”20 and to enhance the diversity of program offerings on broadcast television as a whole.

The cable television industry has a similarly lengthy technical and regulatory history. Starting in the 1940’s as community antenna television systems (CATV) designed to bring better or more distant broadcast signals into the home, cable sys-*22terns developed through the 1960’s into media with enough channels to accommodate both retransmission of broadcast television programs and origination of special services such as weather or stock exchange reports.21 More recently, cable companies began cablecasting their own programs on channels not used for retransmission services, and the abundance of channels on modern systems (presently 35 or more)22 promises that program origination will remain an important part of cable programming.

The Commission’s regulation of cable television reflects its technological development. At first the Commission eschewed regulation altogether.23 However, as CATV systems with multiple channels developed, the Commission asserted jurisdiction over cable operations to prevent fragmentation of audiences and revenues between local broadcasters and competing cable systems which were bringing distant broadcast signals into local markets.24 In 1968 the Commission launched a further, broad-ranging inquiry into the uses to which cable television might be put in the national communications network.25 The outcome of these proceedings was a series of regulations which, among other things, required cable systems in major markets to provide cablecasting services, to set aside “access channels” on which members of the public could rent time to produce and transmit their own shows, and to furnish chan-neis for government and educational use.26 The Commission specifically declined, however, to promulgate rules for cable television similar to those adopted for subscription broadcast television. See First Report and Order, 20 FCC2d 201, 204 (1969). The reasons given were that the Commission had no information which would indicate that pay cable television could penetrate any television market to the extent needed to “siphon” programming, see id. at 204 & n.4, and that the Commission would in any event be able to act in time to correct any adverse effects on conventional broadcasting, see id. at 204.

Nine months later the Commission reversed its course and applied the rules developed in the subscription broadcast field to cable television. See Memorandum Opinion and Order, 23 FCC2d 825 (1970). The reasons for such a quick reversal are not clear in the Order and a number of the petitioners here filed petitions to reconsider imposition of the subscription broadcast rules on the ground that the Commission’s abrupt change of course was arbitrary and not adequately explained. See Notice of Proposed Rule Making and Memorandum Opinion and Order, 35 FCC2d 893, 894 n. 5 (1972), JA 2. These petitions for reconsideration were denied. See id. at 899, JA 7. In this same order Docket 19554, which spawned the orders reviewed here, was established.27 In its First Report and Order *23in this docket, 52 FCC2d 1 (1975), JA 25, the Commission re-adopted, with minor modifications, the pay cable rules originally announced. Petitions for reconsideration of *24this Report and Order were denied, except to the extent that some petitioners sought to establish reporting requirements designed to enhance enforcement of the rules. Memorandum Opinion and Order, 54 FCC2d 797 (1975), JA 117. Contemporaneously the Commission issued a Second Further Notice of Proposed Rule Making, 52 FCC2d 83 (1975), JA 107, eliciting additional information on the rules relating to series programming.28 On the basis of that information the Commission deleted any restriction on subscription use of series programs. Second Report and Order,-FCC2d-, 35 P & F Radio Reg.2d 767 (1975), JA 131.29

To understand the postulated “siphoning” phenomenon and its potential harm, it is useful to consider the structure of the television industry today. In 1975 there were 70.1 million American homes with television sets, of which 9.8 million had access to some cable system.30 Although the number of cable subscribers is large, individual cable systems are quite small, with the largest having only 101,000 customers31 and with only 224 of approximately 3,405 systems having more than 10,000 subscribers.32 The number of homes that presently have access to pay cable facilities is about a half million and is growing rapidly.33 Most of these homes are located outside major television markets, with the exception of the New York City area and parts of California.34 Extension of service to other urban areas might be accomplished at a capital cost of some $8 billion, but laying cable to reach that half of the American population which lives in rural areas would by any estimate be extremely expensive, perhaps requiring an additional $240 billion.35 Because of these capital requirements, extension of cable service with cablecasting capability to the country as a whole does not seem possible in the immediate future.

Similarly, access of all Americans to cable seems foreclosed by the cost of cable service. Cable service charges are generally separated into two distinct fees, one basic fee entitling the viewer to receive only broadcast signals, the other entitling the viewer to see cablecast programs as well. The basic fee is approximately $5-$6 monthly.36 Technical capability exists today to distribute and bill for cablecast programs on a program-by-program basis, but this is not currently done. Instead a single fee of $5-$7 monthly, in addition to the basic fee, is charged for access to the cablecasting channels.37 Nonetheless, as the name of one petitioner suggests, it is quite literally possible to turn the home receiver into a “Home Box Office,” thereby market*25ing television features in much the same way that movies are marketed in theaters today. As with other box offices, however, only those with enough money to buy a ticket can get in to see the show.

Siphoning is said to occur when an event or program currently shown on conventional free television is purchased by a cable operator for showing on a subscription cable channel. If such a transfer occurs, the Commission believes, the program or event will become unavailable for showing on the free television system or its showing on free television will be delayed (since the commercial appeal of the cable showing is the assurance of earlier access to program material, an assurance that might itself be brought about by agreement between the seller of the program or event and the subscription cablecaster).38 In either case a segment of the American people — those in areas not served by cable or those too poor to afford subscription cable service — could receive delayed access to the program or could be denied access altogether. The ability of the half-million cable subscribers thus to preempt the other 70 million television homes is said to arise from the fact that subscribers are willing to pay more to see certain types of features than are advertisers to spread their messages by attaching them to those same features. For example, according to Commissioner Robinson,39 subscribers may be willing to pay 15 to 30 cents per viewing hour for the privilege of viewing a recent feature film, while advertisers are willing to pay only three cents per viewer. As a result a pay audience of one million could routinely buy a film away from a nonpaying audience of five to ten million.

Whether such a siphoning scenario is in fact likely to occur and, if so, whether the result of siphoning would be to lower the quality of free television programming available to certain areas of the country or to certain economic strata of the population are matters of great dispute among the Commission and the various petitioners and' intervenors seeking review of the Commission’s regulations in this case. Other petitioners both here and before the Commission argue that the rules which ostensibly place cable in a subordinate role in order to increase program diversity — a goal which has been basic to a number of Commission regulations40 — in fact diminish diversity by prohibiting subscription cable operators from showing the programs that are most likely to be the financial backbone of a successful cable operation. As a result, it is claimed, cultural and minority programming that could otherwise “piggyback” on a cable system supported by more broadly popular fare is precluded. Indeed, some petitioners argue that the subscription broadcast television rules had the effect of killing that medium in its infancy by denying it access to necessary programming — a charge supported by the apparent lack of any viable commercial applications of subscription broadcast television today and left unrefuted by the Commission — and urge us not to let the Commission similarly snuff out pay cable. Finally, other petitioners take the position that the threat of siphoning is very real and that the Commission’s rules do not adequately cope with this threat to conventional television service.

II. PAY CABLE RULES

A. Statutory Authority

In determining the Commission’s authority to promulgate the pay cable rules, we by no means write on a clean slate. This court has recognized that the Commu*26nications Act of 1934, 47 U.S.C. § 151 et seq., must be construed at least in some circumstances to allow the Commission to regulate cable television system operations. See Carter Mountain Transmission Corp. v. FCC, 116 U.S.App.D.C. 93, 321 F.2d 359, cert, denied, 375 U.S. 951, 84 S.Ct. 442, 11 L.Ed.2d 312 (1963); Buckeye Cablevision, Inc. v. FCC, 128 U.S.App.D.C. 262, 387 F.2d 220 (1967). This view has been adopted by other Courts of Appeals, see, e. g., American Civil Liberties Union v. FCC, 523 F.2d 1344, 1351 (9th Cir. 1975), and confirmed by the Supreme Court, see United States v. Midwest Video Corp., 406 U.S. 649, 92 S.Ct. 1860, 32 L.Ed.2d 390 (1972); United States v. Southwestern Cable Co., 392 U.S. 157, 88 S.Ct. 1994, 20 L.Ed.2d 1001 (1968). As the Supreme Court explained in Southwestern Cable, supra, to construe the Communications Act narrowly would be to defeat the purpose of Congress “ ‘to maintain, through appropriate administrative control, a grip on the dynamic aspects of radio transmission.’ ” 392 U.S. at 172, 88 S.Ct. at 2002, quoting FCC v. Pottsville Broadcasting Co., 309 U.S. 134, 138, 60 S.Ct. 437, 84 L.Ed. 656 (1940). Yet, despite the latitude which must be given the Commission to deal with evolving technology, its regulatory authority over cable television is not a carte blanche. Unless these regulations are “justified by reasons which are properly the concern of [the Commission],” Hampton v. Mow Sun Wong, 426 U.S. 88, 116, 96 S.Ct. 1895, 1912, 48 L.Ed.2d 495 (1976), they must be set aside.

1. The Standard for Determining Statutory Authority

Midwest Video Corp. and Southwestern Cable Co. hold that the Commission may only exercise authority over cable television to the extent “reasonably ancillary” to the Commission’s jurisdiction over broadcast television. United States v. Southwestern Cable Co., supra, 392 U.S. at 178, 88 S.Ct. 1994; United States v. Midwest Video Corp., supra, 406 U.S. at 670, 92 S.Ct. 1860. See generally National Ass’n of Regulatory Utility Comm’rs v. FCC, 174 U.S.App.D.C. 374, 379-380, 394-395, 401-406, 533 F.2d 601, 606-607, 621-622, 628-633 (1976). This standard was first enunciated in Southwestern Cable Co., in which the Supreme Court was asked to pass on the Commission’s authority to promulgate rules prohibiting importation of “distant signals”41 into the San Diego television market. 392 U.S. at 159-160, 88 S.Ct. 1994. The purpose of these rules was to prevent division of audiences and revenues between cable television and fledgling UHF and educational television stations. Competition by cable operators, the Commission feared, would make these new ventures unprofitable, thereby frustrating the Commission’s long-standing42 and congressionally approved43 policy of attempting to provide locally controlled broadcast television service. See 392 U.S. at 173-177, 88 S.Ct. 1994.

In finding that the Commission was authorized to promulgate the challenged rules, the Southwestern Court first held that cable television was an instrument of “interstate and foreign communication by wire or radio” within the meaning of Section 2(a) of the Communications Act of 1934, 47 U.S.C. § 152(a) (1970). 392 U.S. at 167-169, 88 S.Ct. 1994. For this reason the Commission *27was held to have “regulatory authority” over cable television. Id. at 173, 88 S.Ct. 1994. However, the Court chose not “to determine in detail the limits of the Commission’s authority to regulate [cable television]” under Section 2(a). Id. at 178, 88 S.Ct. at 2005. Instead, stressing that “ ‘the achievement of an agency’s ultimate purposes' ” was at stake, id. at 177, 88 S.Ct. at 2005, quoting Permian Basin Area Rate Cases, 390 U.S. 747, 780, 88 S.Ct. 1344, 20 L.Ed.2d 312 (1968), the Court noted that the rules were “reasonably ancillary to the effective performance of the Commission’s various responsibilities for the regulation of television broadcasting,” id. at 178, 88 S.Ct. at 2005, and that to carry out such responsibilities the Commission'vcould “issue ‘such rules and regulations and prescribe such restrictions and conditions, not inconsistent with law’ as ‘public convenience, interest, or necessity requires.’ ” Id., quoting 47 U.S.C. § 303(r) (1970).

In United States v. Midwest Video Corp., supra, a decision which affirmed the Commission’s jurisdiction by a narrow margin, a four-judge plurality of the Supreme Court again applied the “reasonably ancillary” standard to determine the scope of the Commission’s jurisdiction over cable television operations. Upholding the Commission’s rules requiring operators of large cable systems to cablecast programs on some channels, the plurality reiterated that Section 2(a) conferred regulatory power on the Commission, but that “§ 2(a) does not in and of itself prescribe any objectives for which the Commission’s regulatory power over [cable television] might properly be exercised.” 406 U.S. at 661, 92 S.Ct. at 1867. The plurality then stated that the test for determining whether a rule reflected a proper objective was whether it would “ ‘further the achievement of long-established regulatory goals in the field of television broadcasting.’ ” Id. at 667-668, 92 S.Ct. at 1870, quoting United States v. Southwestern Cable Co., supra, 392 U.S. at 654, 88 S.Ct. 1994. Under this standard the Commission was held to be authorized to require cable program origination since such a requirement furthered Commission policies with respect to both enhancement of local service and diversification of control of available television and cable programming. See 406 U.S. at 668-670, 92 S.Ct. 1860.

The deciding vote in Midwest Video Corp. was cast by Chief Justice Burger, who wrote:

Candor requires acknowledgment, for me at least, that the Commission’s position strains the outer limits of even the open-ended and pervasive jurisdiction that has evolved by decisions of the Commission and the courts. * * *

406 U.S. at 676, 92 S.Ct. at 1874. Nonetheless, the Chief Justice was willing to uphold the challenged regulations on the ground that “when [cable system operators] interrupt the signal and put it to their own use for profit, they take on burdens, one of which is regulation by the Commission.” Id.44 Justice Douglas, writing for four dissenting Justices, took yet a third position, apparently agreeing that the appropriate test for Commission jurisdiction was expressed by the “reasonably ancillary” standard, but finding that to uphold the regulations challenged in Midwest would “make the Commission’s authority over activities ‘ancillary’ to its responsibilities greater than its authority over any broadcast licensee.” Id. at 681, 92 S.Ct. at 1877.

The Supreme Court’s opinions in Southwestern Cable Co. and Midwest Video Corp. thus look in two directions. First, they recognize an expansive jurisdiction for the Commission based on Section 2(a) of the Communications Act and the need to give the Commission sufficient latitude to cope with technological developments in a rapidly changing field. But the opinions are also *28narrow. Even the broadest opinion, that of the plurality in Midwest Video Corp., recognizes that the Commission, can act only for ends for which it could also regulate broadcast television. Indeed, even this standard will be too commodious in certain cases, since as we discuss in Part III infra the scope of the Commission’s constitutionally permitted authority over broadcast television in areas impinging on the First Amendment is broader than its authority over cable television. Finally, the opinions in both cases go no farther than to allow the Commission to regulate to achieve “long-established” goals or to protect its “ultimate purposes.” That these cases establish an outer boundary to the Commission’s authority we have no doubt, cf. National Ass’n of Regulatory Utility Comm’rs v. FCC, supra; Staff of Subcomm. on Communications, Comm, on Interstate and Foreign Commerce, Cable Television: Promise Versus Regulatory Performance 80-83 (1976) (Subcomm. Print), and if judicial review is to be effective in keeping the Commission within that boundary, we think the Commission must either demonstrate specific support for its actions in the language of the Communications Act or at least be able to ground them in a well-understood and consistently held policy developed in the Commission’s regulation of broadcast television, cf. Greater Boston Television Corp. v. FCC, 143 U.S.App.D.C. 383, 394, 444 F.2d 841, 852 (1970), cert, denied, 403 U.S. 923, 91 S.Ct. 2229, 2233, 29 L.Ed.2d 701 (1971).*

2. Applying the Jurisdictional Standard

The purpose of the Commission’s pay cable rules is to prevent “siphoning” of feature film and sports material from conventional broadcast television to pay cable.45 Although there is dispute over the effectiveness of the rules, it is clear that their thrust is to prevent any competition by pay cable entrepreneurs for film or sports material that either has been shown on conventional television or is likely to be shown there46 How such an effect furthers any legitimate goal of the Communications Act is not clear. The Commission states only that its “mandate to act in the public interest requires that [it] strive to maintain the public’s ability to receive the informational and entertainment programming now provided by conventional television at no direct cost," First Report and Order, supra, 52 FCC2d at 43, JA 67, and that its action “is designed to enhance the integrity of broadcast signals and is a proper execution of our responsibility under Section 2(b) [sic] of the Communications Act * * *,” id. at 45, JA 69.

Insofar as the Commission places reliance on such conclusory phrases as “enhance the integrity of broadcast signals,” we think it has crossed “the line from the tolerably terse to the intolerably mute.” Greater Boston Television Corp. v. FCC, supra, 143 U.S.App.D.C. at 394, 444 F.2d at 852. Beneath such generalities, however, the Commission seems to be making two more specific arguments which relate the public interest to retention of the conventional television structure. First, the Commission appears to take the position that it has both the obligation and the authority to regulate program format content to maintain present levels of public enjoyment. For *29this reason, and because the Commission also seems to assert that the overall level of public enjoyment of television entertainment would be reduced if films or sports events were shown only on pay cable or shown on conventional television only after some delay, it concludes that anti-siphoning rules are both needed and authorized. Second, and closely related, is the argument pressed here by counsel for the Commission that Section 1 of the Communications Act, 47 U.S.C. § 151 (1970), mandates the Commission to promulgate anti-siphoning rules since cable television cannot now and will not in the near future provide a nationwide communications service. See Transcript of Oral Argument at 57-58. Before considering each of these arguments in turn, we note that we do not understand the Commission to be asserting that subscription cable television will divide audiences and revenues available to broadcast stations in such a manner as to put the very existence of these stations in doubt. See Memorandum Opinion and Order, supra, 54 FCC2d at 800-802 (1110, 11,18), JA 120-122; Second Report and Order, supra, - FCC2d at -, 35 P & F Radio Reg.2d at 772, JA 136 (“[w]e possess no evidence which indicates that the advertising revenues generated by conventional television will be diminished as a result of subscription operations”). See also First Report and Order, 20 FCC2d 201, 216-217 (1969). The Supreme Court’s opinion in Southwestern Cable Co. is not, therefore, directly applicable.

The question of the Commission’s obligation or authority to regulate television to maintain public enjoyment is one whose analysis takes us into a thicket of disagreement between this court and the Commission. See Citizens Committee to Save WEFM v. FCC, 165 U.S.App.D.C. 185, 191-207, 506 F.2d 246, 252-268 (1974) (en banc). Although this controversy has taken place in the context of the Commission’s obligation to regulate changes in radio broadcast formats, much of what has been said is directly relevant here.47 The traditional view of the Commission is well summarized by its then chairman, Dean Burch:

It would be a simple matter for the Commission to dictate to each licensee of the 62 stations in the Chicago area which entertainment format each should use. Such an approach might maximize — at least in the short run — the diversity of formats and types of programming available to the public. But it would not be the approach contemplated by Congress when it created the Commission in 1934. Broadcast stations are, of course, licensed to serve the public interest, but as the Supreme Court observed back in 1940, the Communications Act also “recognizes that the field of broadcasting is one of free competition.” In short, “[t]he regulatory responsibility of the Commission in the broadcast field essentially involves the maintenance of a balance between the preservation of a free competitive broadcast system, on the one hand, and the reasonable restriction of that freedom inherent in the public interest standard provided in the Communications Act, on the other.”
The Commission has struck this balance by requiring licensees to conduct formal surveys to ascertain the need for certain types of non-entertainment programming, while allowing licensees wide discretion in the area of entertainment programming. Thus with respect to the provision of news, public affairs, and other informational services to the community, we have required that broadcasters conduct thorough surveys designed to assure familiarity with community problems and then develop programming responsive to those identified needs. In contrast, we have generally left entertainment programming decisions to the licensee or applicant’s judgment and competitive marketplace forces. As the Commission stated in its Programming Policy Statement, 25 Fed.Reg. 7293 (1960), “[o]ur view has been that the station’s [entertainment] *30program format is a matter best left to the discretion of the licensee or applicants, since as a matter of public acceptance and of economic necessity he will tend to program to meet the preferences of his area and fill whatever void is left by the programming of other stations.”

Zenith Radio Corp., 40 FCC2d 223, 230 (1973) (footnotes omitted).48 In addition, in many other proceedings the Commission has taken the position that the First Amendment and the anti-censorship provision of the Communications Act, 47 U.S.C. § 326 (1970), strip it of any authority to require or to prohibit broadcast of any particular material. See, e. g., Ad Hoc Comm, on the Sugar Bowl, 29 P & F Radio Reg.2d 70 (1973); Broadcast of Elections Projections, 38 FCC2d 378 (1972); Washington Women’s Strike for Peace, 6 P & F Radio Reg.2d 307, 308 (1965). As we understand the traditional position of the Commission, therefore, it is that regulation of entertainment program format is inconsistent with the Communications Act and as also unnecessary, but for reasons inapposite here. __s

In WEFM this court en banc rejected the laissez faire approach of the Commission, holding:

There is a public interest in a diversity of broadcast entertainment formats. The disappearance of a distinctive format may deprive a significant segment of the public of the benefits of radio, at least at their first-preference level. When faced with a proposed license assignment encompassing a format change, the FCC is obliged to determine whether the format to be lóst is unique or otherwise serves a specialized audience that would feel its loss. If the endangered format is of this variety, then the FCC must affirmatively consider whether the public interest would be served by approving the proposed assignment, which may, if there are substantial questions of fact or inadequate data in the application or other officially noticeable materials, necessitate conducting a public hearing in order to resolve the factual issues or assist the Commission in discerning the public interest. Finally, it is not sufficient justification for approving the application that the assignor has asserted financial losses in providing the special format; those losses must be attributable to the format itself in order logically to support an assignment that occasions a loss of the format.

165 U.S.App.D.C. at 201, 506 F.2d at 262. Our position is thus unmistakable: The Communications Act not only allows, but in some instances requires, the Commission to consider the preferences of the public, and the Commission in discharging this authority must regulate the entertainment programming which station owners can present whenever a significant segment of the public is threatened with the loss of a preferred broadcast format.* Were WEFM the last word, it is at least possible that the Commission could promulgate the anti-siphoning rules under the theory of jurisdiction recognized by the plurality in Midwest Video Corp., since the end to be achieved— protection of ' preferred television service for those not served by cable television— would also justify regulation of the broadcast media.49

*31The Commission has not, however, acquiesced in WEFM. Instead, it recently launched and concluded a proceeding on “Changes in the Entertainment Formats of Broadcast Stations.” See Notice of Inquiry, 57 FCC2d 580 (1976); Memorandum Opinion and Order, 60 FCC2d 858 (1976). Its conclusions there bear repeating in some detail. First, the Commission has reiterated its conclusion that it has no statutory authority to dictate entertainment formats. Format regulation, it is argued, is analogous to imposing common carrier responsibilities on broadcasters. Since Section 3(h) of the Communications Act, 47 U.S.C. § 153(h) (1970), specifically excludes broadcasters from the category of “common carriers,” “Congress intentionally refrained from extending the full range of regulatory tools deemed appropriate for common carrier regulation to the field of broadcast regu-. lation.” Memorandum Opinion and Order, supra, 60 FCC2d at 859. In particular, “Congress did not enact [a] requirement that broadcasters receive Commission authority to commence or discontinue programming, including program format services, offered to the public.” Id. This conclusion is further supported, in the Commission’s view, by Columbia Broadcasting System, Inc. v. Democratic National Committee, 412 U.S. 94, 93 S.Ct. 2080, 36 L.Ed.2d 772 (1973), and FCC v. Sanders Brothers Radio Station, 309 U.S. 470, 60 S.Ct. 693, 84 L.Ed. 869 (1940). See 60 FCC2d at 860-861. A second point relevant here is the Commission’s professed inability to determine the boundaries of a “particular entertainment format.” Id. at 862. “The Commission does not know, as a matter of indwelling administrative expertise, whether a particular format is ‘unique’ or, indeed, assuming that it is, whether it has been deviated from by a licensee.” Id. In any case, concludes the Commission, “[i]t is impossible to determine whether consumers would be better off [with any particular format] without reference to the actual preferences of real people.” Id. at 864.

If the Commission’s own recently announced standards are applied to the rules challenged here, it seems clear that the rules cannot stand. The very essence of the feature film and sports rules is to require the permission of the Commission “to commence * * * programming, including program format services, offered to the public.” However, it has been the consistent position of the Commission itself that cablecasters, like broadcasters, are not to be regulated as common carriers, a view sustained by a number of courts. See, e. g., American Civil Liberties Union v. FCC, supra, 523 F.2d at 1344; Philadelphia Television Broadcasting Co. v. FCC, 123 U.S.App.D.C. 298, 359 F.2d 282 (1966). Moreover, given the similarities between cablecasting operations and broadcasting, we seriously doubt that the Communications Act could be construed to give the Commission “regulatory tools” over cablecasting that it did not have over broadcasting. See 185 U.S. App.D.C. at----, 567 F.2d at 27-28, supra. Thus, even if the siphoning rules might in some sense increase the public good, this consideration alone cannot justify the Commission’s regulations. See generally Hampton v. Mow Sun Wong, supra.

In addition, the record before us is devoid of any “reference to the actual preferences of real people.” While we would be willing to concede that certain formats, such as the World Series, are sufficiently unique and popular that a factual inquiry into actual preferences might not be required, this would not seem to be the case with either *32feature films or “non-specific” sports events.50 Moreover, there is not even speculation in the record about what material would replace that which might be “siphoned” to cable television. Without such a comparative inquiry, we do not understand how the Commission could define the current level of programming as a baseline for adequate service. Finally, with regard to feature films we question how the Commission, which has stated that it has no criteria by which to distinguish among formats, could have determined that feature films are a sufficiently unique format to warrant protection. The record demonstrates that broadcasters are increasingly substituting made-for-television movies — ■ for which “siphoning” is not a problem since the broadcasters own the copyrights— for feature films. See, e. g., First Report and Order, supra, 52 FCC2d at 26, JA 50. The inference from this would seem to be that the Commission has drawn its categories too narrowly and that a feature film rule may not really be necessary to ensure broadcast presentation of popular movie material. Whether or not this is the case, the inference is certainly too strong to be dismissed, as the Commission has done here, without discussion.

In analyzing the feature film and sports rules under the standards announced by the Commission in its broadcast format change proceeding, we do not wish to imply that we have reconsidered the position of this court in WEFM.51 The sole purpose of undertaking this analysis is to demonstrate that the Commission has, in this proceeding, seemingly backed into an area of regulation in which it would not assert jurisdiction were it to face the issues directly. Indeed, in this very proceeding, and despite the Commission’s definition of current quantity and quality levels of films and sports events as the minimum level consistent with adequate television service, there is no indication that the Commission is prepared to require broadcasters to continue to present material presently on conventional television. See br. for respondent United States at 23; reply br. for petitioner Motion Picture Association of America at 3-4. In the absence of this court’s opinion in WEFM, these unexplained inconsistencies in agency policy would require us to set aside the Commission’s rules and remand the case to the agency to allow it to “supply a reasoned analysis indicating that prior policies and standards are being deliberately changed, not casually ignored.” Greater Boston Television Corp. v. FCC, supra, 143 U.S.App.D.C. at 394, 444 F.2d at 852; accord, New Castle County Airport Comm’n v. CAB, 125 U.S.App.D.C. 268, 270, 371 F.2d 733, 735 (1966), cert, denied, 387 U.S. 930, 87 S.Ct. 2052, 18 L.Ed.2d 991 (1967). Because we understand the Commission’s Memorandum Opinion and Order in the format change proceeding to constitute a request to this court to reconsider its position in WEFM, see 60 FCC2d at 865-866, and because we are hesitant to approve rules which seem inconsistent with the Commission’s best thinking in a closely analogous area, we think we should not affirm the feature film and sports regulations on the basis of WEFM.

Before reaching a conclusion on whether remand is necessary, however, we must consider the Commission’s second theory of jurisdiction.52 Our analysis is hampered by the failure of the Commission to make clear its argument that Section 1 of the Communica*33tions Act,53 as interpreted by this court in NATO v. FCC, supra, requires rules against “siphoning” of material away from free television. In the subscription broadcast proceeding the petitioning theater owners sought to block that part of the Commission’s subscription television rules which permitted subscription television by arguing that Section 1 of the Act prohibited the Commission from withdrawing one channel from the broadcast spectrum for use by only the few who might be willing to pay for the privilege of receiving broadcast signals. See First Report, 23 FCC 532, 536-540 (1957). The Commission, in dismissing such an interpretation of the Act, stated:

[Section 1 has] been relied on in support of an argument to the effect that the Act did not contemplate or permit, and in fact bars authorization by the Commission of a program service, by broadcast stations, which would be available only to such members of the public as were able and willing to pay a charge. We believe, however, that such a construction cannot reasonably be made of these excerpts. Section 1 states the general purposes of the Act in broad terms. The reference to “all the people of the United States” does not, for example, preclude licensing the-use of radio frequencies for the safety and special radio services. Frequencies so allocated are not available to all the people of the United States. While the words “at reasonable charges” evidently refer to the Commission’s regulation of rates charged by common carriers for message communications, and does not, presumably, refer to charges for programs disseminated over broadcast stations, it may be noted that this express reference to charges is unaccompanied by any prohibitive language concerning charges for programs transmitted by broadcast stations.

Id. at 538. In NATO this court, after reviewing the legislative history of the Communications Act, 136 U.S.App.D.C. at 358-360, 420 F.2d at 200-202, agreed, finding that the Act did not prohibit licensing of subscription television services, but was indeed “designed to foster diversity in the financial organization and modus operandi of broadcasting stations as well as in the content of programs * * 136 U.S.App.D.C. at 360, 420 F.2d at 202. Thus, as interpreted by both this court and the Commission, Section 1 does not itself compel the Commission to protect-conventional advertiser-supported television broadcasting.

However, counsel for the Commission at oral argument appeared to be making a second argument about the meaning of Section 1. Stressing that Section 1 also mentions that the Commission is to foster “Nation-wide” service,54 counsel argued that cable could not be a nationwide service in the reasonably foreseeable future and that “siphoning” would, therefore (the logic behind this “therefore” is by no means clear), destroy nationwide service in contravention of the policy of Section 1. See Transcript of Oral Argument at 57-58. We need not consider whether Section 1 can be so construed since counsel’s argument is nothing more than a naked allegation, unsupported in the record. Indeed, the Commission has nowhere spelled out even a theory of the dynamic which could result in loss of broadcast television service to regions not served by cable. Nor is such a dynamic readily apparent. For example, cablecasters are unlikely to withhold feature film and sports material from markets they do not serve since broadcast of this material in such markets could not reduce the potential cable audience and because exhibition rights to this material would undoubtedly have substantial value. In these circumstances, the postulated loss of regional service is too *34speculative to support jurisdiction. See City of Chicago v. FPC, 147 U.S.App.D.C. 312, 323, 458 F.2d 731, 742 (1971), cert denied, 405 U.S. 1074, 92 S.Ct. 1495, 31 L.Ed.2d 808 (1972).

Finally, none of the suggested bases for Commission jurisdiction justifies imposition of the no-advertising55 and 90-percent56 rules on cable television. These rules evolved out of the subscription broadcast television proceeding, see Fourth Report and Order, supra, 15 FCC2d at 484, and were retained here apparently because they raised “little dissent.” See First Report and Order, supra, 52 FCC2d at 66, JA 90. The reasons for which these rules were adopted in the subscription television proceeding are not applicable here, however. In the subscription proceeding the Commission determined that the public interest would not be served if one of very few available broadcast channels was allocated to subscription television unless subscription television offered services distinct from conventional advertiser-supported broadcasting. See 15 FCC2d at 484. To ensure such a “supplemental” role for subscription television, advertising was prohibited and the broadcast time that could be allocated to sports and feature films — which were already available on conventional television — was limited to 90 percent of subscription broadcast time. When these rules were reviewed by this court, it was again in the context of a need to allocate scarce spectrum resources. See NATO v. FCC, supra, 136 U.S.App.D.C. at 365-366, 420 F.2d at 207-208. Such an allocation problem is clearly not involved in this case. Moreover, given the abundance of channels that cable systems can carry, plus the Commission’s rules57 requiring governmental, educational, and public access channels on every cable system carrying broadcast signals, we do not understand the need to restrict feature film and sports programming time to create the technical conditions for diversity. Without further explanation of the functions these rules are meant to serve, we cannot affirm the Commission’s authority to promulgate them.

Although we hold today that the Commission has not established its jurisdiction on the record evidence before it, we think it important to note the limits of our holding. We do not hold that the Commission must find express statutory authority for its cable television regulations. Such a holding would be inconsistent with the nature of the FCC’s organic Act and the flexibility needed to regulate a rapidly changing industry. However, we do require that at a minimum the Commission, in developing its cable television regulations, demonstrate that the objectives to be achieved by regulating cable television are also objectives for which the Commission could legitimately regulate the broadcast media. Where the First Amendment is involved, more will be required. See Part III infra. Further, we require that the Commission state clearly the harm which its regulations seek to remedy and its reasons for supposing that this harm exists. Because our holding is so limited, it is possible that the Commission will, after remand, be able to satisfy the jurisdictional prerequisites for regulating pay cable television. In order to avoid multiple remands, therefore, we will now consider other objections raised against these rules.

B. The Evidence

1. Standard of Review

With the exception of the Commission’s ruling in In re Home Box Office, Inc., *3551 FCC2d 317 (1975), JA 141, each of the orders challenged here is the product of rulemaking under Section 303 of the Communications Act, 47 U.S.C. § 303 (1970). Because the statute does not otherwise indicate, this rulemaking is also informal rule-making governed by Section 4 of the Administrative Procedure Act (APA), 5 U.S.C. § 553 (1970), see id. § 553(a); Ethyl Corp. v. EPA, 176 U.S.App.D.C. 373, 405, 406, 541 F.2d 1, 33-34 (1976) (en banc), and the appropriate standard of review is that set out in Section 10 of the APA, 5 U.S.C. § 706(2)(A)-(D) (1970), see Ethyl Corp. v. EPA, supra, 176 U.S.App.D.C. at 405-406, 541 F.2d at 33-34; National Ass’n of Food Chains, Inc. v. ICC, 175 U.S.App.D.C. 346, 351-352, 535 F.2d 1308, 1313-1314 (1976). See generally Pedersen, Formal Records and Informal Rulemaking, 85 Yale L.J. 38 (1975); Wright, The Courts and the Rule-making Process: The Limits of Judicial Review, 59 Cornell L.Rev. 375 (1974).

We have recently had occasion to review at length our obligation to set aside agency action which is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law * * 5 U.S.C. § 706(2)(A), see Ethyl Corp. v. EPA, supra, 176 U.S.App.D.C. at 405-409, 541 F.2d at 33-37, and for this reason we need not labor our analysis here. It is axiomatic that we may not substitute our judgment for that of the agency. Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 416, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971). Yet our review must be “searching and careful,” id., and we must ensure both that the Commission has adequately considered all relevant factors, see id., and that it has demonstrated a “rational connection between the facts found and the choice made,” Burlington Truck Lines, Inc. v. United States, 371 U.S. 156, 168, 83 S.Ct. 239, 246, 9 L.Ed.2d 207 (1962).

Equally important, an a-gency must comply with the procedures set out in Section 4 of the APA. Citizens to Preserve Overton Park, Inc. v. Volpe, supra, 401 U.S. at 417, 91 S.Ct. 814. The APA sets out three procedural requirements: notice of the proposed rulemaking, an opportunity for interested persons to comment, and “a concise general statement of [the] basis and purpose” of the rules ultimately adopted. 5 U.S.C. § 553(b)-(c). As interpreted by recent decisions of this court, these procedural requirements are intended to assist judicial review as well as to provide fair treatment for persons affected by a rule. See Portland Cement Ass’n v. Ruckelshaus, 158 U.S.App.D.C. 308, 326-327, 486 F.2d 375, 393-394 (1973), cert, denied, 417 U.S. 921 (1974); International Harvester Co. v. Ruckelshaus, 155 U.S.App.D.C. 411, 445, 478 F.2d 615, 649 (1973); Automotive Parts & Accessories Ass’n v. Boyd, 132 U.S.App.D.C. 200, 208, 407 F.2d 330, 338 (1968). See also Wright, supra, 59 Cornell L.Rev. at 380-381. To this end there must be an exchange of views, information, and criticism between interested persons and the agency. See Portland Cement Ass’n v. Ruckelshaus, supra, 158 U.S.App.D.C. at 326-327, 486 F.2d at 393-394; cf. National Nutritional Foods Ass’n v. Weinberger, 512 F.2d 688, 701 (2d Cir.), cert, denied, 423 U.S. 827, 96 S.Ct. 44, 46 L.Ed.2d 44 (1975). Consequently, the notice required by the APA, or information subsequently supplied to the public, must disclose in detail the thinking that has animated the form of a proposed rule and the data upon which that rule is based. Portland Cement Ass’n v. Ruckelshaus, supra, 158 U.S.App.D.C. at 325-327, 486 F.2d at 392-394; International Harvester Co. v. Ruckelshaus, supra, 155 U.S.App.D.C. at 445, 478 F.2d at 649. Moreover, a dialogue is a two-way street: the opportunity to comment is meaningless unless the agency responds to significant points58 raised by *36the public. Portland Cement Ass’n v. Ruckelshaus, supra, 158 U.S.App.D.C. at 326-327, 486 F.2d at 393-394. A response is also mandated by Overton Park, which requires a reviewing court to assure itself that all relevant factors have been considered by the agency. See 401 U.S. at 416, 91 S.Ct. 814; accord, Duquesne Light Co. v. EPA, 522 F.2d 1186, 1196 (3d Cir. 1975), vacated on other grounds, 427 U.S. 902, 96 S.Ct. 3185, 49 L.Ed.2d 1196 (1976).

From this survey of the case law emerge two dominant principles. First, an agency proposing informal rulemaking has an obligation to make its views known to the public in a concrete and focused form so as to make criticism or formulation of alternatives possible. Second, the “concise and general” statement that must accompany the rules finally promulgated

must be accommodated to the realities of judicial scrutiny, which do not contemplate that the court itself will, by a laborious examination of the record, formulate in the first instance the significant issues faced by the agency and articulate the rationale of their resolution. * * * [The record must] enable us to see what major issues of policy were ventilated by the, informal proceedings and why the agency reacted to them as it did.

Automotive Parts & Accessories Ass’n v. Boyd, supra, 132 U.S.App.D.C. at 208, 407 F.2d at 338; accord, National Nutritional Foods Ass’n v. Weinberger, supra, 512 F.2d at 701; Pillai v. CAB, 158 U.S.App.D.C. 239, 244-252, 485 F.2d 1018, 1023-1031 (1973); National Air Carriers Ass’n v. CAB, 141 U.S.App.D.C. 31, 44-45, 436 F.2d 185, 198-199 (1970); cf. Camp v. Pitts, 411 U.S. 138, 142-143, 93 S.Ct. 1241, 36 L.Ed.2d 106 (1973); Citizens to Preserve Overton Park, Inc. v. Volpe, supra, 401 U.S. at 420, 91 S.Ct. 814.

2. Applying the Standard

(a) The Need for Regulation

At the outset, we must consider whether the Commission has made out a case for undertaking rulemaking at all since a “regulation perfectly reasonable and appropriate in the face of a given problem may be highly capricious if that problem

does not exist.” City of Chicago v. FPC, supra, 147 U.S.App.D.C. at 323, 458 F.2d at 742. Here the Commission has framed the problem it is addressing as

how cablecasting can best be regulated to provide a beneficial supplement to over-the-air broadcasting without at the same time undermining the continued operation of that “free” television service.

Notice of Proposed Rule Making and Memorandum Opinion and Order, supra, 35 FCC 2d at 898, JA 6. To state the problem this way, however, is to gloss over the fact that the Commission has in no way justified its position that cable television must be a supplement to, rather than an equal of, broadcast television. Such an artificial narrowing of the scope of the regulatory problem is itself arbitrary and capricious and is ground for reversal. See Pillai v. CAB, supra, 158 U.S.App.D.C. at 248, 485 F.2d at 1027. Moreover, by narrowing its discussion in this way the Commission has failed to crystallize what is in fact harmful about “siphoning.” Sometimes the harm is characterized as selective bidding away of programming from conventional television, see First Report and Order, supra, 52 FCC 2d at 49, JA 73, sometimes delay, see id. at 50, JA 74, and sometimes (perhaps) the financial collapse of conventional broadcasting, compare id. at 45, JA 69, with Second Report and Order, supra,-FCC 2d at-, 35 P & F Radio Reg.2d at 772, JA 136. As a result, informed criticism has been precluded and formulation of alternatives stymied.59

*37Setting aside the question whether siphoning is harmful to the public interest, we must next ask whether the record shows that siphoning will occur. The Commission assures us that siphoning is “real, not imagined.” First Report and Order, supra, 52 FCC 2d at 50, JA 74. We find little comfort in this assurance, however, because the Commission has not directed our attention to any comments in a voluminous record which would support its statement. Moreover, whatever evidence the Commission thought it had was self-admittedly insufficient to give it a “clear picture as to the effects of subscription television upon conventional broadcasting.”60 Id. at 49, JA 73. Our own review of the First Report and the joint appendix filed in these cases suggests that, if there is any evidentiary support at all, it is indeed scanty. As to the potential financial power of cable television we are left to draw the inference from two facts— that championship boxing matches often-appear only on closed-circuit television in theaters and that Evel Knievel chose to televise his jet-cycled dive into the Snake River in the same fashion — and a series of mathematical demonstrations. See id. at 9, JA 33. See also Memorandum Opinion and Order, supra, 23 FCC 2d at 828 n. 6 (Docket 18397) (reliance on mathematical demonstration). While the former may be directly relevant to siphoning of what the Commission has characterized as “specific” sports events, it is not at all clear what light they shed on the question of who is going to pay how much to see feature films and nonspecific sports events on pay cable.61

The meaning of the various mathematical demonstrations is even less certain. Petitioner American Broadcasting Companies, Inc., for example, has proposed the following technique for estimating the relative income available to cable and conventional television:

30. The most comprehensive attempt to develop a methodology for making this comparison is contained in the reply comments of the American Broadcasting *38Company. It there developed a formula for estimating the pay cable dollars available for the purchase of any particular program. The formula, in somewhat simplified terms, is as follows:
(Total households) X (percent of households with tv sets) X (percent of households with tv sets that are cable tv subscribers) X (percent of cable tv subscribers that have pay cable option available) X (percent of subscribers with pay option that are pay subscribers) X (percent of pay subscribers that view program in question) X (charge to subscriber for program) X (percent of subscription charge passed through to program supplier) = (total national pay cable dollars available for the purchase of program in question).
ABC’s own assumptions as to the state of the pay cable television industry in 1980 are as follows:
Total household_______________ 75,400,000
TV set penetration___percent___ 97
CATV penetration______do_____■ 35
CATV penetration with pay TV potential_________do_____ 80
Pay subscriber penetration of systems with pay potential____________do_____ 15
Percent of pay subscribers viewing program_____do_____ 50
Charge to subscriber for program-----------dollars___ 2.25
Percent of pay fee collected passed on to program producers----percent___ 35
In the circumstance posited by ABC, slightly more than 1.5 million homes would pay $2.25 each for a particular program making available slightly more tha[n] $1.2 million dollars to the pay cable industry for the purchase of the program in question. This, ABC suggests, compares with the $1.5 million dollars a network might pay for two showings of a “blockbuster” feature film like Love Story during a five-year period, and with the $1 million dollars that might be paid for a movie of somewhat less appeal.

First Report and Order, supra, 52 FCC 2d at 9-10, JA 33-34. From this demonstration American Broadcasting Companies and other petitioners who presented similar mathematical models would draw the conclusion that

[p]ay cable operations will have more money than television stations or television networks to purchase programming and, being creatures of a competitive economic system, will inevitably purchase much of the best programming now broadcast on free television and leave free television only with what is left over.

Id. at 10, JA 34.

Even conceding the accuracy of the figures used (a concession which finds no support in the record, however), we think the proponents of the mathematical models have not proved their case. The problem is the incommensurability of the ultimate figures compared: nationwide income of pay cablecasters in 1980 on the one hand, and recent, but historical,62 network expenditures on the other.63 It seems patently obvious that no comparison is valid unless financial figures are extrapolated to the same year. More important is the potential for distortion introduced into the comparison by using income on one hand versus expenditure on the other. The Justice Department and other petitioners have repeatedly pointed out that the conventional television industry is highly concentrated and is, therefore, likely to enjoy substantial monopoly and monopsony power. See, e. g., Comments of the United States Department of Justice in Docket No. 19554, at 20, JA 168 (April 7, 1969); Comments of the United States Department of Justice in *39Docket No. 19554, at 15-16, JA 194-195 (Sept. 5, 1969). Evidence consistent with such an inference is readily available. For example, Noll, Peek and McGowan report that television broadcast stations enjoyed a 20 percent return on sales in 1969 versus eight percent for all manufacturing industry 64 and suggest that this is evidence that “competition is less rigorous in television than elsewhere in the economy.”65 To be sure, television and manufacturing are very different industries, and had the Commission evaluated and rejected the arguments of the Justice Department and others a different question would be presented on this review. But the Commission did not consider whether conventional television broadcasters could pay more for feature film and sports material than at present without pushing their profits below a competitive return on investment and, consequently, it could not properly conclude that siphoning would occur because it could not know whether or how much-broadcasters, faced with competition, would increase their expenditures by reducing alleged monopoly profits. Since the Commission did not assess either potential distorting effect of the comparison offered by the broadcasters, any conclusion it may have drawn from this evidence would be arbitrary.

We have similar difficulties with the second cardinal assumption of the Commission, i. e., that “siphoning” would lead to loss of film and sports programming for audiences not served by cable systems or too poor to subscribe to pay cable. See Transcript of Oral Argument at 61-62; br. for respondent FCC at 53-54. To reach such a conclusion the Commission must assume that cable firms, once having purchased exhibition rights to a program, will not respond to market demand to sell the rights for viewing in those areas that cable firms do not reach. We find no discussion in the record supporting such an assumption. Indeed, a contrary assumption would be more consistent with economic theory since it would prima facie be to the advantage of cable operators to sell broadcast rights to conventional television stations in regions of the country where no cable service existed. Moreover, the greater the area not covered by cable, the greater the demand would tend to be for broadcast rights, and the more likely it would be that, through a combination of cable and broadcast, nationwide coverage would be achieved.

We find the Commission’s argument that “siphoning” could lead to loss of programming for those too poor to purchase cable television more plausible. Here again, however, we find that the Commission has not documented its case that the poor would be deprived of adequate television service and, worse, that the Commission, by prohibiting advertising in connection with subscription operations, has virtually ensured that the price of pay cable will never be within reach of the poor. There- is little disagreement at the theoretical level about the mechanism through which the poor would be deprived of broadcast service in markets served by cable television. Cable operators, to be able to sell a show, would require exclusive exhibition rights in the markets they served, with the result that events purchased by cable operators for subscription presentation would be unavailable to broadcasters, or would be available only after a delay. What follows from this scenario, even assuming that cable operators would have the financial strength to outbid broadcasters, is by no means clear. There is uncontradicted evidence in the record, for example, that the popularity of film material does not decline with an increase in the interval between first theater exhibition and first television broadcast. See Comments of Program Suppliers in Docket No. 19554, at 21, JA 386 (Nov. 1, 1972). At least as to movies, therefore, “siphoning” may not harm the poor very much.

*40Equally important, the pay cable rules taken as a whole scarcely demonstrate a consistent solicitude for the poor. Thus, although “free” home viewing relies upon advertiser-supported programming, the Commission has in this proceeding barred cable firms from offering advertising in connection with subscription operations. See note 55 supra. As a result, the Commission forecloses the possibility that some combination of user fees and advertising might make subscription cable television available to the poor, giving them access to the diverse programming cable may potentially bring. As has already been noted, see 185 U.S.App.D.C. at -, 567 F.2d at 34, supra, the advertising ban section of the regulations was developed to meet wholly different regulatory problems and it has been retained here, not because of its intrinsic merit, but only because no one objected too much. We are thus left with the conclusion that, if the Commission is serious about helping the poor, its regulations are arbitrary; but if it is serious about its rules, it cannot really be relying on harm to the poor. Whatever may be the ultimate validity of this argument, its principal defect on this review is that there is no record evidence to support it.

(b) Consideration of Anticompetitive Effects

Many petitioners, while not conceding the need for regulation, press a series of additional objections to the rules which collectively represent a charge that the Commission has failed to consider anticompeti-tive effects of the regulatory strategy it has adopted. For analytic purposes the various theories of petitioners can be treated as two: first, a contention that the Commission has inadequately resolved traditional antitrust objections to the strengthening of broadcasters’ monopsony power over the feature film and sports broadcasting industries; and, second, that the Commission has similarly been oblivious to the rules’ negative impact on its otherwise long-standing policy favoring diversification of control of programming choices. We will treat these arguments seriatim.

Although much attention has been paid in brief to the question whether the Commission was obliged to consider traditional antitrust issues in formulating rules to be issued under its “public interest, convenience, or necessity”66 standard, we do not think this precise issue is before us at this time. Throughout this proceeding the Commission has sought comments on the anticompetitive impact of its rules and has asked that less restrictive alternatives be presented to it. Notice of Proposed Rule-making and Memorandum Opinion and Order, supra, 35 FCC 2d at 898 (¶ 12(b)), JA 6. The Commission, in its First Report and Order, also treated the antitrust issue as one which required an answer and properly stated the issue raised:67 “whether the public interest considerations which under*41lie the rules outweigh the public interest considerations in support of unfettered competition.” 52 FCC 2d at 45, JA 69. Because the Commission has throughout these proceedings found the antitrust issue to be relevant to discharge of its public interest obligation,68 the only issue properly before this court is whether the Commission met its obligation to make a record “enabling] us to see * * * why the agency reacted to [major issues of policy] as it did.” Automotive Parts & Accessories Ass’n v. Boyd, supra, 132 U.S.App.D.C. at 208, 407 F.2d at 338; see 185 U.S.App.D.C. at-, 567 F.2d at 36, supra. The short answer is: It did not.

We cannot fathom how the Commission reached the conclusion that the balance here should be struck in favor of regulation. Paragraph 150 of the First Report and Order, which contains the only discussion purporting to be an explanation, is obviously flawed and is completely irrelevant to most of the antitrust issues raised.69 The Commission analogizes the regulatory problem here to that presented in United States v. Southwestern Cable Co., supra. This is simply incorrect. The exclusivity and distant signal rules reviewed there did not implicate questions of anticompetitive impacts on filmmakers or sports entrepreneurs and presented no occasion for an attempt to quantify or qualify the competitive harm resulting from reinforcing broadcasters’ monopsony power over those industries. Nor did these rules address situations of alleged selective siphoning; the harm to be avoided was fragmentation of audiences leading to the financial demise of UHF and educational broadcasting. Economic harm in this sense is not at issue here, as the Commission itself recognizes. See Memorandum Opinion and Order, supra, 54 FCC 2d 800-802, JA 120-122 (¶10, 11,18). See also 185 U.S.App.D.C. at -, -, 567 F.2d at 29, 36-37, supra. Moreover, even a cursory glance at the Supreme Court’s opinion in Southwestern Cable Co. would show that the Court did not, contrary to the assertion of the Commission here, affirm the Commission’s findings that anticompeti-tive effects could be tolerated because cable use of broadcast signals constituted “unfair competition” and consequently regulation was needed “to ameliorate the risk that the burgeoning CATY industry would have a future adverse impact on television broadcast service, both existing and potential * * *.” 52 FCC 2d at 45, JA 69. Instead the Court permitted regulation because it would further the congressionally approved goals of “significantly wider use * * * of the available ultra-high-frequency channels,” and of “encourage[ment of] * * * sound and adequate programs to utilize the television channels now reserved for educational purposes.” 392 U.S. at 174-175, 88 S.Ct. at 2004, quoting H.R.Rep.No. 1635, 89th Cong., 2d Sess. 7 (1966). Therefore, Southwestern Cable Co. certainly does not establish the proposition that “unfair competition” requires the general protection of broadcast television.

Even had the Southwestern Cable Co. Court approved the Commission’s “unfair competition” argument, application of that argument to cablecasting rather than retransmission of broadcast signals is unsupportable. What was considered unfair by the Commission in the distant signal cases was that cable was competing with local broadcasters by bringing into the local area identical programming plucked out of the air from distant stations. Because local broadcasters had to pay copyright royalties for this material and cable did not, cable *42was thought to have an unfair advantage.70 Here, however, cablecasters and broadcasters alike must pay copyright royalties, and there is no evidence that the cablecasting function is in any way subsidized by cable’s broadcast retransmission function. Even if there were such evidence, reliance on the “unfair competition” argument would still be misplaced since any exaction of an indirect charge from pay cable operators to redress the alleged competitive imbalance would raise the costs of cable services which must be paid by home viewers, an effect that would disadvantage the poor, thereby undercutting the Commission’s stated authority for promulgating the pay cable rules. See 185 U.S.App.D.C. at -, 567 F.2d at 39-40,, supra. Finally, we do not perceive any public benefit to be achieved by hobbling cable television to correct the sort of unfair competition alleged by the Commission.71 The Supreme Court has found that cable’s free use of broadcast signals does not affect the amount of compensation paid to copyright holders, Teleprompter Corp. v. Columbia Broadcasting System, Inc., 415 U.S. 394, 412-413, 94 S.Ct. 1129, 39 L.Ed.2d 415 (1974), and there can be no doubt that the absence of a charge “serve[s] the cause of promoting broad public availability of literature, music, and the other arts,” Twentieth Century Music Corp. v. Aiken, 422 U.S. 151, 156, 95 S.Ct. 2040, 2044, 45 L.Ed.2d 84 (1975).

We further agree with the Justice Department that the issue of the reasonableness of the balance struck between regulatory and competitive goals, where these diverge, is a matter to be tested on the basis of material in the rulemaking record, not on the basis of legal precedent. Because of this, we think it odd that the Department has not presented factual data to the Commission which would allow it to assess the likely effect of its rules on various fields of competition. The Department’s arguments are basically speculative: 72 they are premised on the unverified assumption that enhancement of competition — actual or potential — -is always a good.73 Certainly there are no “specific findings” proposed, although the Department would impose such a standard on the Commission.74 Indeed, the only argument *43presented that rises above the speculative is one based on legal precedents, not fact— that a private agreement to accomplish the result dictated by the pay cable rules would be a boycott and unlawful per se. Br. of respondent United States at 19. Thus while we appreciate and salute the participation of the Justice Department in these proceedings, in the future a greater contribution could be made if the Department, which is, after all, the repository of antitrust expertise in the federal government, would work with the Commission in developing the type of data necessary to an informed decision.

Petitioners’ second argument — that the pay cable rules consolidate network control over program production and selection and are, therefore, inconsistent with other Commission policy and, perhaps, the First Amendment — had more force prior to repeal of the series restrictions in the Second Report and Order, supra. We agree with petitioners that the series rule would have restricted the market for independently produced entertainment programming, thereby creating an effect directly contrary to that sought to be achieved in the Prime Time Access Rules proceedings.75 As a result the series rules could not have been sustained on the record before us. See Greater Boston Television Corp. v. FCC, supra, 143 U.S.App.D.C. at 394, 444 F.2d at 852; New Castle County Airport Comm’n v. CAB, supra, 125 U.S.App.D.C. at 270, 371 F.2d at 735. The related argument of some petitioners that the rules will have the effect of reducing the economic feasibility of cablecasting minority-interest programming, and hence of reducing diversity, is plausible, but we cannot say on this record that the postulated effect is more than speculative. Certainly an inquiry into this problem would be appropriate in any proceedings the Commission might have on remand. Cf. Citizens Committee to Save WEFM v. FCC, supra.

III. FIRST AMENDMENT

More stringent, but substantially similar, rules to those adopted in the dockets under review here were upheld by this court in NATO v. FCC, supra, and it is wholly because of this precedent that the Commission believes the instant rules to be consistent with the First Amendment. See First Report and Order, supra, 52 FCC 2d at 44 (¶ 148), JA 68. Although we today reaffirm our holding in NATO, see Part V infra, wp decline to extend NATO to Commission regulation of cable television since we find important differences between cable and broadcast television and “differences in the characteristics of new media justify differences in the First Amendment standards applied to them.” Red Lion Broadcasting Co. v. FCC, 395 U.S. 367, 386, 89 S.Ct. 1794, 1805, 23 L.Ed.2d 371 (1969).

Despite the novelty and complexity of the antisiphoning rules challenged in NATO, the constitutional question decided there was straightforward: whether a grant of a broadcast license could be conditioned on terms which made reference to “the kind and content of programs being offered to the public.” 136 U.S.App.D.C. at 365, 420 F.2d at 207. Phrased this way, the issue could be readily resolved on the basis of time-tested and well-known theories of the First Amendment. “With everybody on the air,” wrote Justice Frankfurter over 30 years ago, “nobody could be heard. * * * [T]he radio spectrum simply is not large enough to accommodate everybody. There is a fixed natural limitation upon the num*44ber of stations that can operate without interfering with one another. Regulation of radio was therefore * * * vital to its development * * National Broadcasting Co. v. United States, 319 U.S. 190, 212-213, 63 S.Ct. 997, 1008, 87 L.Ed. 1344 (1943) (footnote omitted).76 Although government division of the spectrum into discrete segments and subsequent allocation of those segments does not necessarily entail comparative licensing — for example, some have suggested that spectrum segments could be auctioned to the highest bidder,77 thereby obviating the need for government control of the allocation process — the National Broadcasting Co. Court refused to restrict the Commission to the role of a “traffic officer, policing the wave lengths to prevent stations from interfering with each other.” 319 U.S. at 215, 63 S.Ct. at 1009. Instead, the Court held it constitutionally permissible to allocate channels to “ ‘render the best practicable service to the community reached * * ” id. at 216, 63 S.Ct. at 1009, quoting FCC v. Sanders Bros. Radio Station, supra, 309 U.S. at 475, 60 S.Ct. 693, and, because of the scarcity of broadcast facilities, this necessarily allowed “comparative considerations as to the [kind and content of program] services to be rendered * * id. at 217, 63 S.Ct. at 1009; see id. at 226-227, 63 S.Ct. 997; accord, Red Lion Broadcasting Co. v. FCC, supra, 395 U.S. at 394, 89 S.Ct. 1794; Gross v. FCC, 480 F.2d 1288, 1291-1292 (2d Cir. 1973); Carter Mountain Transmission Corp. v. FCC, supra, 116 U.S.App.D.C. at 98, 321 F.2d at 364. Review of Commission deliberations culminating in the rules affirmed in NATO reveals plainly that the sole purpose of the subscription broadcast television inquiry and the pilot subscription television operations was to determine how to allocate television licenses so that the overall service rendered a community was the “best practicable.” 78 Therefore, there was no need for NATO to break new First Amendment ground, and a reading of the NATO opinion will show that it did not do so.79

The First Amendment theory espoused in National Broadcasting Co. and reaffirmed in Red Lion Broadcasting Co. cannot be *45directly applied to cable television since an essential precondition of that theory — physical interference and scarcity requiring an umpiring role for government — is absent,80 Interference among speakers on a single cable is controlled by electrical equipment which divides the cable into channels and by the owners of the cable system who determine who shall have access to each channel and for how long. Nor is there any apparent physical scarcity of channels relative to the number of persons who may seek access to the cable system. Currently cable systems have the capacity to convey over 35 channels of programming. Technology is now available that would increase capacity to 80 channels, and in the future channel capacity may become unlimited. See br. for *46petitioner Home Box Office, Inc. at 9; Note, Cable Television and Content Regulation: The FCC, the First Amendment and the Electronic Newspaper, 51 N.Y.U.L.Rev. 133, 135 (1976). And even though there is some evidence that local distribution of cable signals is a natural economic monopoly,81 which may raise the spectre of private censorship by the system owner, there is no readily apparent barrier of physical or electrical interference to operation of a number of cable systems in a given locality. In any case, scarcity which is the result solely of economic conditions is apparently insufficient to justify even limited government intrusion into the First Amendment rights of the conventional press, see Miami Herald Publishing Co. v. Tornillo, 418 U.S. 241, 247-256, 94 S.Ct. 2831, 41 L.Ed.2d 730 (1974), and there is nothing in the record before us to suggest a constitutional distinction between cable television and newspapers on this point.82

The absence in cable television of the physical restraints of the electromagnetic spectrum does not, however, automatically lead to the conclusion that no regulation of cable television is valid.83 As Professor Meiklejohn has eloquently demonstrated, see A. Meiklejohn, Political Freedom 24-48 (1960), rules restricting speech do not necessarily abridge freedom of speech. In particular, and regardless of the medium involved, regulations which transform cacophony into ordered presentation can often be consistent with the First Amendment since “the point of ultimate interest is not the words of the speakers, but the minds of the hearers,” and the latter will not be affected unless each speaks in turn. Id. at 26; see Red Lion Broadcasting Co. v. FCC, supra, 395 U.S. at 387-388, 89 S.Ct. 1794. Further, because “the right of free speech * * * does not embrace a right to snuff out the free speech of others,” id. at 387, 89 S.Ct. at 1805; Associated Press v. United States, 326 U.S. *471, 20, 65 S.Ct. 1416, 89 L.Ed. 2013 (1945), government may adopt reasonable regulations separating speakers competing and interfering with each other for the same audience. See Red Lion Broadcasting Co. v. FCC, supra, 395 U.S. at 387-389, 89 S.Ct. 1794. Restriction becomes abridgment only when government seeks to limit speech “because it is on one side of the issue rather than another,” A. Meiklejohn, supra, at 27; see Madison Joint School Dist. No. 8 v. Wisconsin Empl. Relations Comm’n, 429 U.S. 167, 175, 97 S.Ct. 421, 50 L.Ed.2d 376 (1976), or because it is thought unwise, unfair, false, or dangerous, see, e. g., Police Department of Chicago v. Mosley, 408 U.S. 92, 95-96, 92 S.Ct. 2286, 33 L.Ed.2d 212 (1972). See generally Wright, Politics and the Constitution: Is Money Speech?, 85 Yale L.J. 1001,1005-1010 (1976). Certainly this is the broader teaching of National Broadcasting Co., see 319 U.S. at 215-218, 226-227, 63 S.Ct. 997, and it is a teaching relevant regardless of the source of conflict between speakers. See Cox v. New Hampshire, 312 U.S. 569, 576, 61 S.Ct. 762, 85 L.Ed. 1049 (1941) (government may regulate conflicting parades); Kovacs v. Cooper, 336 U.S. 77, 86, 69 S.Ct. 448, 93 L.Ed. 513 (1949) (suggesting that government regulation of hecklers would be permissible).

Similarly, the First Amendment does not bar regulation of the “collateral consequences”84 or “collateral aspects”85 of speech. For example, use of public places for speech-related purposes, although a right jealously guarded by the First Amendment,86 is subject to reasonable restraints intended to ameliorate traffic congestion,87 reduce noise to tolerable levels,88 or prevent “capture” of unwilling audiences.89 To be sure, many cases dealing with the collateral consequences of speech admit of analysis in terms of “speech” versus “conduct” or “pure speech” versus “speech plus.” But the principle for which these cases stand cannot be limited to situations in which the evil arises because of motion unrelated to movement of the mouth and vocal cords. As the Supreme Court appears to have recognized (especially in cases dealing with symbolic speech),90 conduct and speech can often be separated only in the eyes of the beholder and therefore First Amendment doctrines turning on the true “essence” of an expressive event can provide no very certain guide to judicial decision.91 Instead, the important inquiry here, as in Meiklejohn’s conflicting speaker situation, turns on the purpose for which government regulates. Regulations intended to curtail expression — either directly by banning speech because of a harm thought to stem from its communicative or persuasive effect on its intended audience, see Spence v. Washington, 418 U.S. 405, 411-*48414 & n.8, 94 S.Ct. 2727, 41 L.Ed.2d 842 (1974); Cohen v. California, 403 U.S. 15, 91 S.Ct. 1780, 29 L.Ed.2d 284 (1971); United States v. O’Brien, 391 U.S. 367, 382, 88 S.Ct. 1673, 20 L.Ed.2d 672 (1968); Joseph Burs-tyn, Inc. v. Wilson, 343 U.S. 495, 72 S.Ct. 777, 96 L.Ed. 1098 (1953), or indirectly by favoring certain classes of speakers over others, see Madison Joint School Dist. No. 8 v. Wisconsin Empl. Relations Comm’n, supra, 429 U.S. at 175, 97 S.Ct. 421; Buckley v. Valeo, 424 U.S. 1, 17, 96 S.Ct. 612, 46 L.Ed.2d 659 (1976); Police Department of Chicago v. Mosely, supra, 408 U.S. at 97-98, 92 S.Ct. 2286; Grayned v. City of Rockford, 408 U.S. 104, 92 S.Ct. 2294, 33 L.Ed.2d 222 (1972) — can be justified (if at all) only under categorization doctrines such as obscenity, “fighting words,” or “clear and present danger.” See Ely, Flag Desecration: A Case Study in the Roles of Categorization and Balancing in First Amendment Analysis, 88 Harv.L.Rev. 1482, 1496-1508 (1975). Regulations evincing a “governmental interest * * * unrelated to the suppression of free expression * * *,” United States v. O’Brien, supra, 391 U.S. at 377, 88 S.Ct. at 1679, are treated differently, however. If such regulations “[1] further an important or substantial governmental interest; * * * and [2] if the incidental restriction on alleged First Amendment freedoms is no greater than is essential to the furtherance of that interest,” id. (bracketed numbers added), then the regulations are valid.92

Applying O’Brien here, we cannot say that the pay cable rules were intended to suppress free expression. The narrow purpose espoused by the Commission — protecting the viewing rights of those not served by cable or too poor to pay for cable — is neutral. Indeed, it is not unlike a regulation quieting hecklers or enforcing order on the radio spectrum. As in those situations, the conduct regulated would otherwise blot out transmission of a message, regardless of its content, to at least a segment of its potential audience. Also like those cases, both those whose conduct is restrained by the regulation and those who benefit by it have First Amendment rights, .although here the right is one to receive,93 rather than transmit, information. True, unlike the heckler the person able to pay for cable television does not interrupt transmission of a message to. all who might hear it; specifically, he does not affect his own First Amendment rights or those of others served by cable. That only one segment of an audience benefits from the pay cable rules does not, however, at least in this case, require a different result for, as we shall now show, execution of the Commission’s purpose in favoring one group would not necessarily deny material to the other or affect the range of ideas that are presented to either group.94

*49The Commission seeks only to channel movie and sports material to its intended recipients over broadcast television, rather than pay cable, whenever the economics of advertiser-supported programming permit. If the rules and their associated waiver provisions95 achieved no more than this — a proposition which will be examined in detail below — they would present no barrier: material suitable for broadcast would be broadcast; material financially viable only on cable would be on cable. Those served by pay cable would surely be served by broadcast television as well and, therefore, would have access to anything that could profitably be presented on either medium. Those without cable would at least be no worse off than at present. Conversely, the speech of movie and sports producers would not be affected because the regulations would not stand as a barrier to presentation of any material to one or both audiences.96

The speech of cablecasters, while undoubtedly inhibited, is similarly free from restrictions abridging freedom of expression. The rules clearly have no effect on traditional broadcast modes of persuasive speech such as news broadcasts or editorials. Nor do they affect films which the cablecaster has himself produced. Moreover, they do not even affect the cablecast-er’s ability to exhibit the work of others so long as no per-channel or per-program fee is charged. The sole effect of the rules is to prohibit the cablecaster from exhibiting for a separate fee the artistic work of others. Finally, no claim is made here that this narrow exclusion prevents the cablecaster from making an effective presentation of his views, nor for that matter is any claim made that cablecaster “endorsement” of the views of a particular film adds importantly to the message of the filmmaker.97

Despite our conclusion that content regulations are not at issue here, we nonetheless hold that the rules as promulgated and as put into effect by the Commission cannot be squared with O’Brien’s other requirements and, consequently, they violate the First Amendment. The no-advertising98 *50and 90-percent99 rules clearly violate O’Brien’s first criterion. Not only do they serve no “important or substantial * * * interest,” 391 U.S. at 377, 88 S.Ct. 1673, they serve no purpose which will withstand scrutiny on this record.100 The sports and features films rules fare no better. We have already concluded that the Commission has not put itself in a position to know whether the alleged siphoning phenomenon is a real or merely a fanciful threat to those not served by cable.101 Instead, the Commission has indulged in speculation and innuendo. O’Brien requires that “an important or substantial governmental interest” be demonstrated, however — a requirement which translates in the rulemaking context into a record that convincingly shows a problem to exist and that relates the proffered solution to the statutory mandate of the agency. The record before us fails on both scores. Moreover, we doubt that the Commission’s interest in preventing delay of motion picture broadcasts could be shown to be important or substantial on any record.102

Finally, we think the strategy the Commission has pursued in implementing its interest in preventing siphoning creates a restriction “greater than is essential to the furtherance of that interest.” Id. The Commission’s approach to preserving the present quantity and quality levels of broadcast television has not been to set such levels directly. Instead, the Commission has sought to divide film and sports material into that suitable for broadcasting and that which can be shown, if at all, only on cable, and has left broadcasters free to choose from among the former without any competition from cable television. Even assuming that such a scheme is reasonable, a position contested by a number of petitioners, it is nonetheless very clear that, if such a strategy is to be used, the rules must be closely tailored to the end to be achieved so that material not broadcast (because it is unsuitable or unsalable) is readily available to cablecasters. Otherwise the rules will curtail the flow of programming to those served by cable and willing to pay for it, with a consequent loss of diversity and unnecessary restriction of the First Amendment rights of producers, cablecasters, and viewers.

In assessing whether the rules are sufficiently discriminating in dividing available material into that which may be cablecast and that which may not, the rules must be assessed without reference to the waiver provisions for two reasons. First, the Commission is on record that it will not freely grant waivers. See In re Home Box Office, Inc., supra, 51 FCC 2d at 322, JA 146. Second, the waiver procedures are fundamentally at odds with the procedures outlined in Freedman v. Maryland, 380 U.S. 51, 85 S.Ct. 734, 13 L.Ed.2d 649 (1965). We do not today hold that all the requirements of Freedman must be met, but certainly its central concern — that judicial proceedings be available for rapid removal of unwarranted prior restraints, 380 U.S. at 58-59, 85 S.Ct. 734 — is applicable here.103 See Blount v. Rizzi, 400 U.S. 410, 91 S.Ct. 423, 27 L.Ed.2d 498 (1971); Illinois Citizens Committee for Broadcasting v. FCC, 169 U.S.App.D.C. 166, 172, 515 F.2d 397, 403 (1975); id. at 183 & nn. 27, 29, 515 F.2d at 414 nn. 27, 29 (Bazelon, C. J., statement supporting rehearing en banc). See generally Monaghan, First Amendment “Due Process”, 83 Harv.L.Rev. 518 (1970). Manifestly, the waiver provisions are not reasonably calculated to provide a speedy determi*51nation by the Commission or the courts of whether a film may be shown on cable. In the only case we know of, In re Home Box Office, Inc., supra, it took the Commission alone six and a half months to process a waiver petition, and judicial review has taken an additional 19 months. It further appears that the minimum time in which a waiver could be decided by the Commission is 10 days since this is the length of time allowed for parties to file papers in opposition to waiver petitions. See 47 C.F.R. § 1.45(a) (1975). These time periods equal or exceed those which the Supreme Court has found unacceptable in other cases. See, e. g., Carroll v. President & Comm’rs of Princess Anne, 393 U.S. 175, 89 S.Ct. 347, 21 L.Ed.2d 325 (1968) (10 days); Southeastern Promotions, Ltd. v. Conrad, 420 U.S. 546, 95 S.Ct. 1239, 43 L.Ed.2d 448 (1975) (five-month delay after preliminary hearing).

Turning finally to the rules themselves, we agree with numerous petitioners that the rules are grossly overbroad. Examples of this are legion. It is undisputed, for example, that many films will never be suitable for broadcast television because of their limited appeal, their sophisticated subject matter, or their repeated releases to theaters. Yet, after a film is three years old its exhibition on cable television is restricted regardless of whether it was ever suitable for broadcast. Similarly, in some circumstances the sports rules have the anomalous effect of reducing the number of non-specific games that can be shown on cable television at the same time that broadcasters are reducing the number of games they will show. This provision is apparently justified on the ground that it is too difficult to monitor the reasons broadcasters cut back their game schedules and that at least some cutbacks might be caused by cable competition.104 However, this record reveals no reason to think that cutbacks represent siphoning any more than they represent editorial or commercial judgment. Where the First Amendment is concerned, creation of such a rebuttable presumption of siphoning without clear record support is simply impermissible. Cf. Freedman v. Maryland, supra, 380 U.S. at 58, 85 S.Ct. 734. Other examples could be cited, but this would only belabor points already extensively presented to the Commission. To provide guidance to the Commission for any proceedings it may have on remand, however, we conclude by reminding the Commission that prior restraints on speech are heavily disfavored and can be sustained only where the proponent of the restraint can convincingly demonstrate a need.

IV. EX PARTE CONTACTS

During the pendency of this proceeding Mr. Henry Geller, a participant before the Commission and an amicus here, filed with the Commission a “Petition for Revision of Procedures or for Issuance of Notice of Inquiry or Proposed Rule Making.”105 Brief amicus curiae of Henry Geller at 1 (hereinafter Geller br.). In this petition amicus Geller sought to call the Commission’s attention to what were alleged to be violations in these proceedings of the ex parte communications doctrine set out by this court in Sangamon Valley Television Corp. v. United States, 106 U.S.App.D.C. 30, 269 F.2d 221 (1959). The Commission took no action in response to the petition, and amicus now presses us to set aside the orders under review here because of procedural infirmity in their promulgation.

It is apparently uncontested that a number of participants before the Commission sought out individual commissioners or Commission employees for the purpose of discussing ex parte and in confidence the merits of the rules under review here. In fact, the Commission itself solicited such communications in its notices of proposed *52rulemaking106 and, without discussing the nature, substance, or importance of what was said, argues before us that we should simply ignore these communications because amicus’ petition was untimely, because amicus is estopped from complaining about a course of conduct in which he also participated, or, alternatively, because San-gamon does not apply.107 In an attempt to clarify the facts this court sua sponte ordered the Commission to provide “a list of all of the ex parte presentations, together with the details of each, made to it, or to any of its members or representatives, during the rulemaking proceedings.” In response to this order the Commission filed a document over 60 pages long which revealed, albeit imprecisely,108 widespread ex parte communications involving virtually every party before this court, including amicus Geller.109

Unfortunately, the document filed with this court does not allow an assessment of what was said to the Commission by the various persons who engaged in ex parte contacts. To give a flavor of the effect of these contacts, however, we think it useful to quote at length from the brief of amicus Geller:

[Ex parte] presentations have in fact been made at crucial stages of the proceeding. Thus, in early 1974, then-Chairman Burch sought to complete action in this proceeding.[110] Because the Commission was “leaning” in its deliberations towards relaxing the existing rules “with ‘wildcard’ rights for ‘blockbuster’ movies,” [111] American Broadcasting Company’s representatives contacted “key members of Congress,” who in turn successfully pressured the Commission not to take such action.[112] Further, in the final cru*53cial decisional period, the tentative course to be taken by the Commission would leak after each non-public meeting, and industry representatives would rush to make ex parte presentations to the Commissioners and staff. On March 10,1975, the trade journals state that “word of last week’s changes . . . ■ got out during the week, and both broadcast and cable lobbyists rushed to the Commission, unhappy with some facets”[113] — that broadcast representatives “. were calling on commissioners on Friday . ” to oppose the changes.[114] The following week, the trade press again reported that “various [industry] groups lobbied the Commission, pressing for changes in the tentative decision”[115] —that National Association of Broadcasters “ . . . staff members met with [FCC] Broadcast Bureau staffers to present data backing up [an] asserted need for [a more restrictive] standard.”[116]

Geller br. at 3-4 (footnotes edited and renumbered). It is important to note that many contacts occurred in the crucial period between the close of oral argument on October 25, 1974 and the adoption of the First Report and Order on March 20, 1975, when the rulemaking record should have been closed while the Commission was deciding what rules to promulgate. The information submitted to this court by the Commission indicates that during this period broadcast interests met some 18 times with Commission personnel, cable interests some nine times, motion picture and sports interests five times each, and “public interest” inter-venors not at all.

Although it is impossible to draw any firm conclusions about the effect of ex parte presentations upon the ultimate shape of the pay cable rules, the evidence is certainly consistent with often-voiced claims of undue industry influence over Commission proceedings, and we are particularly concerned that the final shaping of the rules we are reviewing here may have been by compromise among the contending industry forces, rather than by exercise of the independent discretion in the public interest the Communications Act vests in individual commissioners. Cf. National Ass'n of Independent Television Producers & Distributors v. FCC, 502 F.2d 249, 257-258 (2d Cir. 1974). Our concern is heightened by the submission of the Commission’s Broadcast Bureau to this court which states that in December 1974 broadcast representatives “described the kind of pay cable regulation that, in their view, broadcasters ‘could live with.’ ” 117 If actual positions were not re*54vealed in public comments, as this statement would suggest, and, further, if the Commission relied on these apparently more candid private discussions in framing the final pay cable rules, then the elaborate public discussion in these dockets has been reduced to a sham.

Even the possibility that there is here one administrative record for the public and this court and another for the Commission and those “in the know” is intolerable. Whatever the law may have been in the past,118 there can now be no doubt that implicit in the decision to treat the promulgation of rules as a “final” event in an ongoing process of administration is an assumption that an act of reasoned judgment has occurred, an assumption which further contemplates the existence of a body of material — documents, comments, transcripts, and statements in various forms declaring agency expertise or policy119 —with reference to which such judgment was exercised. Against this material, “the full administrative record that was before [an agency official] at the time he made his decision,” Citizens to Preserve Overton Park, Inc. v. Volpe, supra, 401 U.S. at 420, 91 S.Ct. at 825, it is the obligation of this court to test the actions of the Commission for arbitrariness or inconsistency with delegated authority. See id. at 415 — 416, 91 S.Ct. 814, 185 U.S.App.D.C. at —-- -, 567 F.2d at 34-36, supra. Yet here agency secrecy stands between us and fulfillment of our obligation. As a practical matter, Overton Park’s mandate means that the public record must reflect what representations were made to an agency so that relevant information supporting or refuting those representations may be brought to the attention of the reviewing courts by persons participating in agency proceedings. This course is obviously foreclosed if communications are made to the agency in secret and the agency itself does not disclose the information presented. Moreover, where, as here, an agency justifies its actions by reference only to information in the public file while failing to disclose the substance of other relevant information that has been presented to it, a reviewing court cannot presume that the agency has acted properly, Citizens to Preserve Overton Park, Inc. v. Volpe, supra, 401 U.S. at 415, 419-420, 91 S.Ct. 814; see K. Davis, Administrative Law of the Seventies § 11.00 at 317 (1976), but must treat the agency’s justifications as a fictional account of the actual decisionmaking process and *55must perforce find its actions arbitrary. See Ruppert v. Washington, 366 F.Supp. 686, 690 (D.D.C.1973), aff’d by order, 177 U.S.App.D.C. 270, 543 F.2d 417 (1976).

The failure of the public record in this proceeding to disclose all the information made available to the Commission is not the only inadequacy we find here. Even if the Commission had disclosed to this court the substance of what was said to it ex parte, it would still be difficult to judge the truth of what the Commission asserted it knew about the television industry because we would not have the benefit of an adversarial discussion among the parties. The importance of such discussion to the proper functioning of the agency decisionmaking and judicial review processes is evident in our cases.120 We have insisted, for example, that information in agency files or consultants’ reports which the agency has identified as relevant to the proceeding be disclosed to the parties for adversarial comment. Similarly, we have required agencies to set out their thinking in notices of proposed rulemaking. This requirement not only allows adversarial critique of the agency but is perhaps one of the few ways that the public may be apprised of what the agency thinks it knows in its capacity as a repository of expert opinion.121 From a functional standpoint, we see no difference between assertions of fact and expert opinion tendered by the public, as here, and that generated internally in an agency: each may be biased, inaccurate, or incomplete— failings which adversary comment may illuminate. Indeed, the potential for bias in private presentations in rulemakings which resolve “conflicting private claims to a valuable privilege,” Sangamon Valley Television Corp. v. United States, supra, 106 U.S. App.D.C. at 33, 269 F.2d at 224, seems to us greater than in cases where we have reversed agencies for failure to disclose internal studies. We do not understand the rulemaking procedures adopted by the Commission to be inconsistent with these views since those procedures provide for a dialogue among interested parties through provisions for comment, reply-comment, and subsequent oral argument.122 What we *56do find baffling is why the Commission, which apparently recognizes that ready availability of private contacts saps the efficacy of the public proceedings,123 nonetheless continues the practice of allowing public and private comments to exist side by side.

Equally important is the inconsistency of secrecy with fundamental notions of fairness implicit in due process and with the ideal of reasoned decisionmaking on the merits which undergirds all of our administrative law. This inconsistency was recognized in Sangamon, and we would have thought that the principles announced there so clearly governed the instant proceeding that there could be no question of the impropriety of ex parte contacts here. Certainly any ambiguity in how Sangamon should be interpreted has been removed by recent congressional and presidential actions.124 In the Government in the Sunshine Act, for example, Congress has declared it to be “the policy of the United States that the public is entitled to the fullest practicable information regarding the decisionmaking processes of the Federal Government,” Pub.L.No. 94-409, § 2, 90 Stat. 1241 (Sept. 13, 1976), and has taken steps to guard against ex parte contacts in formal agency proceedings.125 Perhaps more closely on point is Executive Order *5711920, 12 Weekly Comp, of Presidential Documents 1040 (1976), which prohibits ex parte contacts with members of the White House staff by those seeking to influence allocation of international air routes during the time route certifications are before the President for his approval.126 The President’s actions under Section 801 of the Federal Aviation Act127 are clearly not adjudication, nor even quasi-judicial. Instead, the closest analogue is precisely that of Sanga-mon : informal official action allocating valuable privileges among competing private parties. Thus this is a time when all branches of government have taken steps “designed to better assure fairness and to avoid suspicions of impropriety,” White House Fact Sheet on Executive Order 11920 (June 10, 1976), and consequently we have no hesitation in concluding with Sangamon that due process requires us to set aside the Commission’s rules here.128

From what has been said above, it should be clear that information gathered ex parte from the public which becomes relevant to a rulemaking will have to be disclosed at some time. On the other hand, we recognize that informal contacts between agencies and the public are the “bread and butter” of the process of administration and are completely appropriate so long as they do not frustrate judicial review or raise serious questions of fairness. Reconciliation of these considerations in a manner which will reduce procedural uncertainty leads us to conclude that communications which are received prior to issuance of a formal notice of rulemaking do not, in general, have to be put in a public file. Of course, if the information contained in such a communication forms the basis for agency action, then, under well established principles,129 that information must be disclosed to the public in some form. Once a notice of proposed rulemaking has been issued, however, any agency official or employee who is or may reasonably be expected to be involved in the decisional process of the rulemaking proceeding, should “refus[e] to discuss matters relating to the disposition of a [rulemaking proceeding] with any interested private party, or an attorney or agent for any such party, prior to the [agency’s] decision * * *,” Executive Order 11920, § 4, supra, at 1041. If ex parte contacts nonetheless occur, we think that any written document or a summary of any oral communication must be placed in the public file established for each rulemaking docket immediately after the communication is received so that interested parties may comment thereon. Compare Executive Order 11920, § 5, supra.130

*58For the foregoing reasons, we must consider what steps should be taken to cure the procedural defect introduced by ex parte contacts. One option would be simply to vacate all of the rules under review and remand them to the Commission for consideration de novo. This approach has two defects, however. First, it is not possible for us to expunge from the Commission’s collective memory what was said to it ex parte. Consequently, information untested by public scrutiny could influence the outcome of future proceedings if steps are not now taken to put this information on the public record. Second, as discussed in Part V infra, we find it possible to uphold the Commission’s rules relating to subscription broadcast television on the basis of the public record as it now stands. We further find no indication in the material already submitted to this court that the subscription broadcast rule amendments benefit persons who participated in ex parte contacts. We think the subscription broadcast rules ought, therefore, to remain in effect pending clarification of what was said to the Commission ex parte. Such clarification would, of course, require further proceedings to be held to determine what was said to the Commission. Since it does not seem possible for such an inquiry to be limited solely to contacts regarding subscription broadcast television given the overlap between issues and parties in these proceedings, and because it would be useful to remove any possible effect of the ex parte contacts in these proceedings, we think the best resolution of the procedural problem we face is to adopt the course taken in Sangamon itself. Therefore, we today remand the record to the Commission for supplementation with instructions “to hold, with the aid of a specially appointed hearing examiner, an evidential hearing to determine the nature and source. of all ex parte pleas and other approaches that were made to” the Commission or its employees after the issuance of the first notice of proposed rulemaking in these dockets. 106 U.S.App.D.C. at 34, 269 F.2d at 225. “All parties to the former proceeding and to the present review may on request participate *59fully in the evidential hearing,” id., and may further participate in any proceedings before the Commission which it may hold for the purpose of evaluating the report of the hearing examiner. The Commission is further instructed to file the supplemented record with this court within 120 days of the date of this opinion, together with its recommendations concerning our disposition of the subscription broadcast television segment of this review.

V. SUBSCRIPTION BROADCAST TELEVISION

Over six years ago this court rendered its decision in NATO v. FCC, supra, affirming in all respects subscription broadcast television rules promulgated in the Commission’s Fourth Report and Order.131 That inquiry, unlike the subscription broadcast rules here under review, was based on elaborate data generated in a two-year trial of subscription broadcast television in Hartford, Connecticut. Since NATO it appears that few, if any, subscription broadcast stations have begun operation on a commercial basis, and consequently the best information available about the general effect of subscription television on conventional broadcasting is that in the Fourth Report. Because of these essentially static factual circumstances, it would be inappropriate for us to reopen now questions of the overall rationality of anti-siphoning rules as they pertain to subscription broadcast television and, as a result, we agree with a number of petitioners that the only question for review here is the rationality of the amendments to the subscription broadcast television rules announced in Dockets 18397 and 19554. We further hold that NATO forecloses general antitrust and First Amendment objections to the subscription broadcast television rules.

The differences between the rules passed on in NATO and the present subscription broadcast rules can be quickly summarized. The no-advertising and 90-percent rules remain unchanged. The feature film rules allow an additional year of unrestricted subscription broadcasting after general release and generally relax requirements for subscription broadcasting of films over ten years old.132 In addition, foreign language films are no longer covered by the rules and the criterion for subscription showing of films three to ten years old has been modified to allow exhibition when a conventional broadcaster in the market holds a present contractual right to exhibit the film. The rule prohibiting subscription exhibition of series programming133 has been dropped. The sports rules have also been modified; however, no one here challenges the sports rules as applied to subscription broadcast television.

We turn first to the feature film rules. There is ample evidence in the record supporting the Commission’s conclusion that “[f]ew films are televised before they are three years old, and most are four years or older before their first telecast.” First Report and Order, supra, 52 FCC 2d at 51, JA 75. In particular, we note the extensive surveys of the program suppliers which suggest that the average age of films shown on broadcast television is over five years.134 Therefore the Commission’s further conclusion that the period of subscription viewing of feature films could be extended to three years from date of release without affecting broadcasting exhibition *60of feature films is clearly reasonable. We also agree with the Commission that no purpose would be served by restricting subscription exhibition of films which could not be siphoned because they were under contract to a broadcaster. Finally, we do not think it unreasonable for the Commission to categorize other films unsuitable for broadcasting through its foreign language and after-ten-years rules. Even a challenger of these rules, Metromedia, could only demonstrate that 23 percent of older films were suitable for broadcasting.135 Because the films to be protected constitute only a small fraction of the total available pool, a blanket prohibition of subscription use of these films would raise serious questions of over-breadth. Finally, we are unwilling to review line-drawing performed by the Commission unless a petitioner can demonstrate that lines drawn, for example the ten-year age, are. patently unreasonable, having no relationship to the underlying regulatory problem.

We also affirm the Commission’s deletion of the series programming rule. The Commission’s discussion in its Second Report and Order, - FCC 2d -, 35 P & F Radio Reg.2d 767 (1975), JA 181, concludes that conditions now existing in the program production industry are adequate to supply series programming for both cable and conventional broadcast use, a conclusion which we agree is amply supported by public comments.136 Further, as we indicated in discussing the pay cable rules, the series restrictions reflect a policy completely opposed to that adopted contemporaneously in the Prime Time Access Rules proceedings and consequently could not have been affirmed without a more detailed explanation than the Commission has so far proffered.137

Although the public record amply supports the subscription broadcast television rule amendments, these amendments cannot be finally approved until this court has had the benefit of the further proceedings set out in Part IV supra. Nonetheless, as we have said in Part IV, it seems unlikely that ex parte information will require vacation of the subscription broadcast television amendments, and we therefore hold that the amendments may remain in effect pending our final order in this segment of the case.

VI. CONCLUSION

Our resolution of the various issues discussed in Parts I through V of this opinion require the following dispositions:

(1) The regulations adopted in the First Report and Order, 52 FCC 2d 1 (1975), and the regulations adopted in the Memorandum Opinion and Order, 23 FCC 2d 825 (1970), are set aside insofar as they apply to cable television.138

(2) The regulations adopted in the Memorandum Opinion and Order, 54 FCC 2d 797 (1975), are set aside.

(3) The repeal of regulations announced in the Second Report and Order,-FCC 2d-, 35 P & F Radio Reg.2d 767 (1975), is affirmed in all respects.

(4) The petitions for review of the Commission’s refusal to waive its pay cable feature film rules, announced in In re Home Box Office, Inc., 51 FCC 2d 317 (1975), are dismissed as moot.

(5) The rules adopted in the First Report and Order, supra, are affirmed insofar as they apply to subscription broadcast television subject to the further proceedings ordered in Part IV supra.

(6) The Commission is hereby ordered to undertake the additional proceedings set out in Part IV supra.

(7) The Commission is hereby further ordered to terminate its proceedings in Docket 20402 (concerning program exclusivity) *61within 180 days of the issuance of this order.139

So ordered.

1

. The opinion in this case is issued as a per curiam, not because it has received less than full consideration by the court, but because the complexity of the issues raised on appeal made it useful to share the effort required to draft this opinion among the members of the panel.

2

. “Cablecasting” refers to the origination of programming on a cable television system, in contradistinction to the retransmission of signals that have been received over the air from conventional broadcast television stations. See 47 C.F.R. §§ 76.5(v)-(x) (1975). The rules challenged here apply to both “access” cablecast-ers, who lease (or are given) channel time from cable system operators, id. § 76.5(x), and “origination” cablecasters, who are system operators, id. § 76.5(w). Id. § 76.225. The rules challenged here apply only to cablecasting on systems which also carry broadcast signals. See id. §§ 76.5(a), 76.225. Although some petitioners have argued that the rules should be extended to all cablecasters, we think the Commission has given a rational basis for this distinction. See First Report and Order, 52 FCC 2d 1, 47-48 (1975), JA 71-72.

3

. Subscription broadcast television stations are those with the technical capability to broadcast programs “intended to be received in intelligible form by members of the public only for a fee or charge.” 47 C.F.R. § 73.641(b) (1975).

4

. Jurisdiction over these petitions for review is based on 47 U.S.C. § 402 (1970) and 28 U.S.C. § 2342 (1970).

In addition to the four orders promulgating, modifying, or refusing to waive the “anti-siphoning” rules, petitioner Home Box Office, Inc. and amicus Henry Geller request that we order the Commission to complete its “program exclusivity” proceedings. “Program exclusivity” refers to an alleged broadcast network practice of obtaining exclusive exhibition rights against cablecasters. This problem was apparently first brought to the attention of the Commission in 1971 and it issued a notice of proposed rulemaking at that time. See Notice of Proposed Rule Making, 27 FCC 2d 13 (1971) (Docket 18179). No further action appears to have been taken in this docket. The issue was raised again in the proceeding here under review, Docket 19554. The issue was not decided in the First Report and Order, supra note 2. Instead, a “Notice of Inquiry” was issued, 52 FCC 2d 87 (1975), JA 111, establishing Docket 20402, a proceeding in which the issue was to be resolved. Almost 18 months have passed since issuance of this notice and over a year since the close of the comment period. Yet we are unaware that any action has been taken by the Commission. We agree with the Commission in Docket 19554 that the use of exclusivity clauses “raise[s] anti-trust questions,” Further Notice of Proposed Rule Making and Order for Oral Argument, 48 FCC 2d 453, 462 n.16 (1974), JA 18. In view of this, and in view of the potentially deleterious effect of exclusivity on the interest of viewers in having the greatest possible access to diverse sources of information, we think the Commission should by now have terminated its deliberations. Therefore, we today enter an order “compelling] agency action * * * unreasonably delayed.” 5 U.S.C. § 706(1) (1970).

5

. In FCC Docket 18397 rules originally developed for application to subscription broadcast television were applied to pay cablecasting. 20 FCC 2d 201 (1969). Petitions for reconsideration of this order were filed with the Commission by many of the parties here. See Notice of Proposed Rule Making and Memorandum Opinion and Order, 35 FCC 2d 893, 894 n.5 (1972), JA 2. These petitions were denied. Id. at 899, JA 7. At the same time, however, the Commission instituted further rulemaking with regard to pay cablecasting under new Docket 19554. In In re Home Box Office, Inc., 51 FCC 2d 317 (1975), JA 141, which is also on review here, the Commission took the view that the rules adopted as a result of the rulemaking in Docket 18397 were final and binding and would not be waived. See 51 FCC 2d at 321, JA 145. We disagree with this interpretation, however. See note 27 infra.

The subscription broadcast television rules were adopted by the Commission in Docket 11279, see Fourth Report and Order, 15 FCC 2d 466 (1968). These rules were affirmed by this court in National Ass’n of Theatre Owners (NATO) v. FCC, 136 U.S.App.D.C. 352, 420 *18F.2d 194 (1969), cert, denied, 397 U.S. 922, 90 S.Ct. 914, 25 L.Ed.2d 102 (1970). Subsequently the Commission entertained petitions for amendment of its subscription television and pay cable rules as they related to sports. Notice of Proposed Rule Making, 35 Fed.Reg. 11040 (1970) (Docket 18893). One order was entered in this docket, Report and Order, 34 FCC 2d 271 (1972), which amended the subscription television sports rule. Petitions for reconsideration were filed in this proceeding, and consideration of these petitions was granted and consolidated with the further consideration of pay cable rules announced in Docket 19554. See Notice of Proposed Rule Making and Memorandum Opinion and Order, supra, 35 FCC 2d at 898, JA 6. The rules promulgated in the First Report and Order, supra note 2, constitute the Commission’s decision on reconsideration of its earlier Report and Order in Docket 18893. The First Report and Order terminated Docket 18893. See 52 FCC 2d at 68, JA 92. Subsequently, however, the Commission issued its Second Report and Order in Docket 19554,-FCC 2d-, 35 P & F Radio Reg. 2d 767 (1975), JA 131, which repealed 47 C.F.R. § 76.225(e), and the Commission took the view in that Order that it could repeal the equivalent subscription broadcast television section of its regulations, 47 C.F.R. § 73.643(g), as well. See-FCC 2d-, JA 139. Such an extension is technically in violation of the Administrative Procedure Act, 5 U.S.C. § 553(b) (1970), because the broadcast inquiry was terminated and the Second Further Notice of Proposed Rule Making, 52 FCC 2d 83 (1975), JA 197, entered after the First Report, supra, made no reference to broadcast television. No party has raised an objection to this procedure, and we think that, given the similarity of the issues and parties involved, this was harmless error. See 5 U.S.C. § 706 (1970).

6

. This group includes the major broadcast networks, the National Association of Broadcasters, and one group of amici.

7

. This view is taken by the Justice Department, the cable television interests, producers of programs suitable for showing on either cable or broadcast television, and a group of amici.

8

. Cable television system operators or channel lessees engaging in origination or access cablecasting operations for which a per-program or per channel [sic] charge is made shall comply with the following requirements:

(a) Feature films shall not be cablecast by a cable television system subject to the mandatory signal carriage requirements of Sub-part D of this Part 76, except as provided in this paragraph.
(1) A feature film may be cablecast if—
(1) The film has been in general release in theaters anywhere in the United States for three (3) years or less prior to its proposed cablecast;
(ii) A conventional television broadcast station licensed in the market of the cable television system holds a present contractual right to exhibit the film. For purposes of this subdivision, a television station affiliated with a television network will be deemed to hold a present contractual right to exhibit a film if the network to which it is affiliated holds such a right;
(iii) The film has been in general release in theaters anywhere in the United States for more than ten (10) years prior to its proposed cablecast and the film has not been exhibited in the market of the cable television system over conventional television for three (3) years prior to its proposed cablecast. Once a film has been cablecast in the market pursuant to this subdivision, or broadcast on a subscription basis pursuant to § 73.-643(a)(l)(iii), such film may thereafter be cablecast in the market without regard to its subsequent exhibition over conventional television;
(iv) The film is in a foreign language;
(2) Feature films otherwise excluded by this parag[r]aph may be cablecast upon a convincing showing to the Commission that they are not desired for exhibition over conventional television in the market of the cable television system, or that the owners of the broadcast rights to the films, even absent the existence of subscription television, would not make the films available to conventional television.
(3) Every cable television system operator or channel lessee engaging in origination or access cablecasting pursuant to this paragraph shall maintain, or cause to be maintained, for public inspection a file listing the *19title of the film, the date on which it was cablecast and the provision of this paragraph pursuant to which it was cablecast. When a feature film is cablecast pursuant to paragraph (a)(l)(ii) of this section, the station or network serving the market and holding a present contractual right to exhibit the film shall be specified. These files shall be retained for a period of two years.
(b) Sports events shall not be cablecast live by a cable television system subject to the mandatory signal carriage requirements of Subpart D of Part 76, except as provided in this paragraph.
(1) A specific event may be cablecast if the event has not been broadcast live over conventional television in the market of the cable television system during any one of the five (5) seasons preceding the proposed cablecast. If a regularly recurring event takes place at intervals of more than one year (e. g., summer Olympic games), the event shall not be cablecast if it has been broadcast live over conventional television in the market during any one of the ten (10) years preceding the proposed cablecast.
(2) New specific sports events that result from the restructuring of existing sports shall not be cablecast until five (5) seasons after their first occurrence. Thereafter, subscription cablecasts shall be governed by paragraph (b)(1) of this section.
(3) The number of non-specific events which may be cablecast in any given season shall be determined as follows:
(i) If less than twenty-five (25) percent of the events in a category of non-specific events were broadcast live over conventional television in the market of the cable television system during each of the five (5) seasons preceding the proposed cablecast, the number of events in the category cablecast shall not exceed the number of events in the category not broadcast in that season among the preceding five (5) seasons when the largest number of events in the category were broadcast.
(ii) If twenty-five (25) percent or more of the events in a category of non-specific events were broadcast live over conventional television in the market of the cable television system during any one of the five (5) seasons preceding the proposed cablecast, the number of events in the category cablecast shall not exceed fifty (50) percent of the number of events in the category not broadcast in that season among the preceding five (5) seasons when the largest number of events in the category were broadcast. However, if the number of events in the category to be broadcast in the current season is a reduction from the number of events broadcast in that season among the preceding five (5) seasons when the largest number of events in the category were broadcast, the number of events in the category which may be cablecast pursuant to this subparagraph shall be reduced in proportion to the reduction in events broadcast.
(c) Not more than ninety (90) percent of the total cablecast programming hours shall consist of feature films and sports events combined. The percentage calculations may be made on a yearly basis, but absent a showing of good cause, the percentage of such programming hours may not exceed ninety-five (95) percent of the total cablecast programming hours in any calendar month.
(d) No commercial advertising announcements shall be carried on subscription channels during such operations except before and after such programs for promotion of other programs for which a per-program or per-channel charge is made.

47 C.F.R. § 76.225 (1975), as amended by Second Report and Order, supra note 5.

9

Commercial advertising on cablecast channels not used for subscription cablecasting was also, at one time, restricted by the Commission. See 47 C.F.R. § 74.1117 (1969), deleted, 39 Fed.Reg. 43310 (1974).

10

. Subscription television broadcast programming shall comply with the following requirements:

(a) Feature films shall not be broadcast except as provided in this paragraph.
(1) A feature film may be broadcast if—
(i) The film has been in general release in theaters anywhere in the United States for three (3) years or less prior to its proposed broadcast;
(ii) A conventional television broadcast station licensed in the market of the subscription television broadcast station holds a present contractual right to exhibit the film. For purposes of this subdivision, a television station affiliated with a television network will be deemed to hold a present contractual right to exhibit a film if the network to which it is affiliated holds such a right;
(iii) The film has been in general release in theaters anywhere in the United States for *20more than ten (10) years prior to its proposed subscription broadcast and the film has not been exhibited over conventional television in the market of the subscription television broadcast station for three (3) years prior to its proposed subscription broadcast. Once a film has been broadcast in the market pursuant to this subdivision or cablecast on a subscription basis pursuant to § 76.225(a)(l)(iii), such film may thereafter be broadcast on a subscription basis in the market without regard to its subsequent exhibition over conventional television;
(iv) The film is in a foreign language;
(2) Feature films otherwise excluded by this paragraph may be broadcast upon a convincing showing to the Commission that they are not desired for exhibition over conventional television in the market or that the owners of the broadcast rights to the films, even absent the existence of subscription television, would not make the films available to conventional television.
(3) Every subscription television broadcast station over which a feature film is broadcast pursuant to this paragraph shall maintain for public inspection a file listing the title of the film, the date on which it was broadcast and the provision of this paragraph pursuant to which it was broadcast. When a feature film is broadcast pursuant to subparagraph (l)(ii) of this paragraph, the station or network, serving the market and holding a present contractual right to exhibit the film shall be specified. These files shall be retained for a period of two years.
(b) Sports events shall not be broadcast live except as provided in this paragraph.
(1) A specific event may be broadcast if the event has not been broadcast live over conventional television in the market of the subscription television broadcast station during any one of the five (5) seasons preceding the proposed subscription broadcast. If a regularly recurring event takes place at intervals of more than one year (e. g., summer Olympic games), the event' shall not be broadcast on a subscription basis if it has been broadcast live over conventional television in the market of the subscription television broadcast station during any one of the ten (10) years preceding the proposed subscription broadcast.
(2) New specific sports events that result from the restructuring of existing sports shall not be broadcast on a subscription basis until five (5) seasons after their first occurrence. Thereafter, subscription broadcasts shall be governed by paragraph (b)(1) of this section.
(3) The number of non-specific events which may be broadcast on a subscription basis in any given season shall be determined as follows:
(i) If less than twenty-five (25) percent of the events in a category of non-specific events were broadcast live over conventional television in the market of the subscription television broadcast station during each of the five (5) seasons preceding the proposed subscription broadcast, the number of events in the category broadcast on a subscription basis shall not exceed the number of events in the category not conventionally broadcast in that season among the preceding five (5) seasons when the largest number of events in the category were broadcast over conventional television.
(ii) If twenty-five (25) percent or more of the events in a category of non-specific events were broadcast live over conventional television in the market of the subscription television broadcast station during any one of the five (5) seasons preceding the proposed subscription broadcast, the number of events in the category broadcast on a subscription basis shall not exceed fifty (50) percent of the number of events in the category not broadcast in that season among the preceding five (5) seasons when the largest number of events in the category were broadcast over conventional television. However, if the number of events in the category to be broadcast over conventional television in the current season is a reduction from the number of events broadcast in that season among the preceding five (5) seasons when the largest number of events in the category were broadcast, the number of events in the category which may be broadcast on a subscription basis pursuant to this subparagraph shall be reduced in proportion to the reduction in events broadcast over conventional television.
(c) No commercial advertising announcements shall be carried during subscription television operations except for promotion of subscription television broadcast programs before and after such programs.
(d) Not more than 90 percent of the total subscription programming hours shall consist of feature films and sports events combined. The percentage calculations may be made on a yearly basis, but, absent a showing of good cause, the percentage of such programming hours may not exceed 90 percent of the total subscription programming hours in any calendar month.
(e) Any television broadcast station licensee or permittee authorized to broadcast subscription programs shall broadcast in addition to its subscription broadcasts, at least the minimum hours of nonsubscription programming required by § 73.651.
(f) Except as they may be otherwise waived by the Commission in authorizations *21issued hereunder, the rules and policies applicable to regular television broadcast stations are applicable to subscription television operations.

47 C.F.R. § 73.643 (1975), as amended by Second Report and Order, supra note 5.

11

. See 20 Fed.Reg. 988 n.’l (1955).

12

. See generally NATO v. FCC, supra note 5, 136 U.S.App.D.C. at 354, 420 F.2d at 196.

13

. Third Report, 26 FCC 265 (1959), aff’d. Connecticut Committee Against Pay TV v. FCC, 112 U.S.App.D.C. 248, 301 F.2d 835, cert, denied, 371 U.S. 816, 83 S.Ct. 28, 9 L.Ed.2d 57 (1962).

14

. See 15 FCC 2d at 597-598.

15

. See generally Fourth Report and Order, supra note 5, 15 FCC 2d at 466-488.

16

. See First Report, 23 FCC 532, 536-540 (1957).

17

. See Fourth Report, supra note 5, 15 FCC 2d at 483-488.

18

. See id. at 474-488, 564-566. See also First Report and Order, supra note 2, 52 FCC 2d at 43, JA 67; Report and Order, 23 FCC 2d 382, 391-392 (1970) (Docket 12782).

19

. See Fourth Report, supra note 5, 15 FCC 2d at 554-573

20

. In these proceedings the Commission has changed its vocabulary from the pejorative “siphoning” to the more neutral term “migration.” See Transcript of Oral Argument at 56, 57, 59.

21

. See Cabinet Comm, on Cable Communications, Report to the President 10-11 (1974).

22

. See Transcript of Oral Argument at 43; br. for petitioner Home Box Office at 9.

23

. See Cabinet Comm, on Cable Communications, supra note 21, at 10.

24

. See generally United States v. Southwestern Cable Co., 392 U.S. 157, 161-168, 88 S.Ct. 1994, 20 L.Ed.2d 1001 (1968).

25

. Notice of Proposed Rulemaking and Notice of Inquiry, 15 FCC 2d 417 (1968).

26

. First Report and Order, 20 FCC 2d 201, 223-225 (1969). The Commission also extended the equal time, sponsorship identification, and fairness doctrines to cable television in this Order.

27

. Many parties to this proceeding, see e. g., br. for respondent United States; br. for petitioner Home Box Office, Inc., including the Commission itself, see br. for respondent FCC, have presented arguments predicated on an assumption that it is appropriate for this court to review the validity of the pay cablecasting rules de novo, although other parties, see, e. g., br. of petitioner American Broadcasting Companies, Inc., appear to take the position that only the rather limited question of the validity of the relaxation of prior Commission rules is before this court. No party has addressed this problem expressly, although the Commission, in In re Home Box Office, Inc., supra note 5, 51 FCC2d at 321, JA 145, takes the position that the rules promulgated in its Memorandum *23Opinion and Order in Docket 18397, 23 FCC2d 825 (1970), are final. Upon review of the record, we hold today that, as to pay cablecasting, the rules are before us for de novo consideration.

The critical question is the effect of the Commission’s Notice of Proposed Rule Making and Memorandum Opinion and Order, 35 FCC2d 893 (1972), JA 1. In that Order the Commission, after surveying points raised by the petitions for reconsideration before it (some of which were addressed to procedural infirmities and others to the substance of the Memorandum Opinion and Order in Docket 18397, supra), stated:

8. * * * [I]n view of the importance of the issue as against the paucity of prior comment and the indication that additional opportunity for comment will elicit useful new material, we have decided to issue a further Notice of Proposed Rule Making so that we may hear from all parties concerned and to reconsider the rules.
s(s # # sfí jfc Jfi
10. In light of our decision to allow for further comment on the pay-cablecasting rules, we think it unnecessary to comment at length on the [substantive] issues raised in the reconsideration pleadings. * * *

35 FCC2d at 896, 897-898, JA 4, 5-6 (emphasis added). Nonetheless, the Commission, “[i]n accordance with” the above quoted paragraphs, denied the petitions for reconsideration of its Memorandum Opinion and Order in Docket 18397. Id. at 899, JA 7.

We think such a disposition is fundamentally at odds with the purpose of reconsideration as envisioned by § 405 of the Communications Act, 47 U.S.C. § 405 (1970), and is also contrary to the Commission’s own rules, 47 C.F.R. § 1.106 (1975). Section 405 of the Communications Act provides in relevant part:

* * * The filing of a petition for rehearing shall not be a condition precedent to judicial review of any * * * order, decision, report, or action, except where the party seeking such review (1) was not a party to the proceedings resulting in such order, decision, report, or action, or (2) relies on questions of fact or law upon which the Commission * * * has been afforded no opportunity to pass. The Commission * * * shall enter an order, with a concise statement of the reasons therefor, denying a petition for rehearing or granting such petition, in whole or in part, and ordering such further proceedings as may be appropriate. * * *

The obvious purpose of § 405 is to afford the Commission an opportunity to consider and pass upon matters prior to their presentation to the court. Joseph v. FCC, 131 U.S.App.D.C. 207, 210, 404 F.2d 207, 210 (1968); Gerico Investment Co. v. FCC, 99 U.S.App.D.C. 379, 380, 240 F.2d 410, 411 (1957); see Saginaw Broadcasting Co. v. FCC, 68 App.D.C. 282, 286, 96 F.2d 554, 558, cert, denied, 305 U.S. 613, 59 S.Ct. 72, 83 L.Ed. 391 (1938). To hold, as the Commission has done here, that further consideration of its order is needed but that the order is nonetheless final for purposes of judicial review is to thwart this fundamental purpose of § 405. Moreover, had a party taken an immediate appeal from the Notice of Proposed Rule Making and Memorandum Opinion and Order, supra, this court would in all likelihood have deferred consideration of that appeal until the Commission had finished its reconsideration of the rules in order to have the benefit of the further proceedings. See Wrather-Alvarez Broadcasting, Inc. v. FCC, 101 U.S.App.D.C. 324, 327, 248 F.2d 646, 649 (1957). Finally, the “concise statement of reasons” given by the Commission here is tantamount to the statement: “We have denied your petitions for reconsideration because you have raised such serious issues that we think the rules need to be reconsidered.” Surely, denial on these grounds is arbitrary, capricious, and in clear contravention of the purposes of § 405.

We need not rely on § 405 alone, however, because the Commission’s own procedural rules disallow the disposition of the petitions for reconsideration made here. As we read § 1.106 of those rules, the Commission may dispose of petitions for reconsideration in only three ways. First, it may deny the petitions. 47 C.F.R. § 1.106(j) (1975). Second, it may grant a petition and make a ruling on its merits in the same order. Id. § 1.106(k)(l). Third, it may grant a petition but defer its ruling on the merits until after further proceedings. Id. § 1.106(k)(2). Here, however, the Commission has taken a fourth course — instituting further proceedings in order to rule on the merits of the petitions for reconsideration, but also denying the petitions. In contrast, in the same Notice of Proposed Rule Making and Memorandum Opinion and Order the Commission adopted the procedure set out in § 1.106(k)(2) with regard to its proceedings on subscription broadcast television. See 35 FCC2d at 899, JA 7. We think the proper procedure here too would have been that set out in § 1.106(k)(2), and we therefore hold that the Commission’s order with respect to pay cablecasting must be read to be consistent with that section. In accordance with § l,106(k)(2), therefore, we further hold that the orders entered in Docket 19554 are the rulings on the merits of the petitions for reconsideration.

Although we would normally be hesitant to decide the merits of an appeal where the briefs of the parties indicate a fundamental confusion over the issues open on appeal, we do not think that our disposition of the procedural posture *24of this case is prejudicial to any of the parties before us. Although we do not have the benefit of a record of the proceedings in Docket 18397, which would normally be part of the record on an appeal from the grant of a motion to reconsider, the Commission has itself commented on the “paucity” of information in that record. See 35 FCC2d at 896, JA 7. Moreover, many of the parties who took the position that the issue here was relaxation of prior rules in fact made arguments that were relevant only if the issue was de novo reconsideration. Furthermore, the Commission itself adequately represented those who would defend the rules on de novo review.

For all foregoing reasons, we hold that the effect of our ruling today is to remove in toto all regulations of the Commission — now codified at 47 C.F.R. § 76.225 (1975) — regulating program formats on pay cable television.

28

. Series programs are those “with interconnected plot or substantially the same cast of principal characters.” 47 C.F.R. § 76.225(c), deleted by Second Report and Order, supra note 5.

29

. See also note 5 supra.

30

. Staff of Subcomm. on Communications of House Comm, on Interstate and Foreign Commerce, Cable Television: Promise Versus Regulatory Performance 11 (1976) (Subcomm. Print) (hereinafter cited as Promise Versus Performance).

31

. Id. at 19.

32

. Id. at 17.

33

. Transcript of Oral Argument at 4, 27.

34

. Id. at 77.

35

. Id. at 26.

36

. Promise Versus Performance, supra note 30, at 17.

37

. First Report and Order, supra note 2, 52 FCC2d at 2, JA 26.

38

. The position of the Commission is not clear. The concern in the subscription television proceeding was that material shown on subscription television would simply become unavailable for conventional viewing. See Fourth Report and Order, supra note 5, 15 FCC2d at 494-509. Here, at least with regard to feature films, the Commission seems to have identified the evil to be avoided as delay in showing a film on conventional television. See First Report and Order, supra note 5, 52 FCC2d at 49-50 (¶ 162) JA 73-74.

39

. First Report and Order, supra note 5, 52 FCC2d at 77 (dissenting opinion), JA 101.

40

. E. g., 47 C.F.R. § 76.201 (1974) (origination requirements), removed, 39 Fed.Reg. 43310 (1974); 47 C.F.R. § 73.658 (prime time access regulations).

41

. Distant signals are those which a viewer would not ordinarily be able to receive without the assistance of a community antenna television system.

42

. See United States v. Southwestern Cable Co., supra note 24, 392 U.S. at 174-176 & n. 43, 88 S.Ct. 1994. See generally R. Noll, M. Peck & J. McGowan, Economic Aspects of Television Regulation 99-108 (1973).

43

. The Southwestern Court referred a number of times to instances of congressional approval of the Commission’s policy of local control of broadcasting. See 392 U.S. at 173 & n. 38, 88 S.Ct. 1994; id. at 174 & n. 39, 88 S.Ct. 1994; cf. id. at 175-176 n. 43, 88 S.Ct. 1994. The Court also referred to congressional support for the Commission’s policy of encouraging UHF development, and read legislation requiring television receivers shipped in interstate commerce to have UHF capability, Pub.L.No. 87-529, 76 Stat. 150 (1962), as support for the Commission’s restrictions on cable. See 392 U.S. at 175 & nn.41 & 42, 88 S.Ct. 1994.

44

. Were one to accept the Chief Justice’s theory of jurisdiction, the Commission’s rules would have to be set aside with respect to access cablecasters, see note 2 supra, who rent time from those who “interrupt the signal,” since there is no evidence in this record that these independent entrepreneurs are in any way subsidized by cable system owners who are the only legal entities offering retransmission services.

*

Judge MacKinnon is of the view that the FCC’s jurisdiction to regulate cablecasting in the interests of the broadcasting industry is restricted to instances where the cable stations substantially rely on broadcast signals or their activities amount to unfair competition.

45

. As promulgated in the First Report and Order, supra note 2, the rules also applied to series programming. Since the rules have subsequently been amended to delete series programming restrictions, see note 28 supra, we do not deal with this aspect of the rules here.

46

. See, e. g., First Report and Order, supra note 2, 52 FCC2d at 51-55, JA 75-79. This position is most clearly expressed in the Commission’s standard for waiving its film rules:

[Wjaivers will be granted upon a convincing showing to the Commission that a film desired for subscription exhibition is not desired for exhibition over conventional television in the market, or that the owner of the film, even absent the existence of subscription television, would not make the film available to conventional television.

Id. at 55, JA 79.

47

. The Communications Act does not expressly regulate television. Title III of the Act, which covers radio broadcasting, has been construed to cover television because § 3(b) of the Act, 47 U.S.C. § 153(b) (1970), defines “radio communication” to include transmission of pictures.

48

. These views were not those of the Commission as a whole, but of only six commissioners. Nonetheless, the Commission as a whole has cited approvingly the argument quoted in text. See Notice of Inquiry, 57 FCC2d 580, 580-581 (1976).

*

Judge MacKinnon is of the view that Citizens Committee to Save WEFM v. FCC, 165 U.S.App.D.C. 185, 506 F.2d 246 (1974), constitutes a binding decision of this court, but he continues to adhere to the views he expressed in dissent when that decision issued. 165 U.S.App.D.C. at 224, 506 F.2d at 285.

49

. While WEFM offers some support for the Commission’s authority to promulgate anti-siphoning rules, the application of WEFM to cable television requires thought and argument going beyond anything said in that case. The facts of WEFM made it a particularly appropriate case for Commission intervention. At stake was a classical music format provided by only one other station in WEFM’s service area. 165 Ü.S.App.D.C. at 193, 506 F.2d at 254. On the other hand, the “contemporary music” format proposed for WEFM was already supplied in whole or in part by 13 of the Chicago area’s 61 radio broadcast stations. Id. at 193 *31n.4, 506 F.2d at 254 n. 4. In these circumstances, retention of WEFM’s classical format raised no serious question of depriving other viewers of their favored formats and the proposed format change would only have added to an apparent surfeit of contemporary and rock music. Certainly a different case would have been presented were fewer stations involved (raising an issue of conflicts among the first prefer-enees of viewers) or had WEFM proposed to offer another format in scarce supply.

In addition, even if WEFM did provide statutory authority to the Commission to act as it has here, the constitutionality of the jurisdiction thus conferred is a wholly separate issue, to be analyzed under the principles set out in Part III infra.

50

. Non-specific sports events are essentially those that occur during regular season play. See First Report and Order, supra note 2, 52 FCC2d at 59, JA 33.

51

. As we have already indicated, see note 49 ' supra, WEFM only lends support to Commission jurisdiction and does not control it. Accordingly, there is no need for us to reconsider WEFM. Moreover, we decline to consider whether WEFM should be extended into the cable television context since the Commission itself has argued that WEFM should be confined rather than extended.

52

. In large part this argument appears to be a post hoc rationalization of counsel which, of course, could not provide a basis for sustaining the Commission. See Burlington Truck Lines, Inc. v. United States, 371 U.S. 156, 168-169, 83 S.Ct. 239, 9 L.Ed.2d 207 (1962).

53

. Section 1 provides in relevant part:

For the purpose of regulating interstate and foreign commerce in communication by wire and radio so as to make available, so far as possible, to all the people of the United States a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges, * * there is created a commission to be known as the “Federal Communications Commission” * * *

47 U.S.C. § 151 (1970).

54

. See note 53 supra.

55

. No commercial advertising announcements shall be carried on subscription channels during such operations except before and after such programs for promotion of other programs for which a per-program or per-channel charge is made.

47 C.F.R. § 76.225(e) (1975), as amended by Second Report and Order, —- FCC2d-, 35 P & F Radio Reg.2d 767 (1975).

56

. Not more than ninety (90) percent of the total cablecast programming hours shall consist of feature films and sports events combined. * * *

47 C.F.R. § 76.225(d) (1975), as amended by Second Report and Order,-FCC2d —, 35 P & F Radio Reg.2d 767 (1975).

57

. 47 C.F.R. §§ 76.251, 76.253 (1975).

58

. In determining what points are significant, the “arbitrary and capricious” standard of review must be kept in mind. Thus only comments which, if true, raise points relevant to the agency’s decision and which, if adopted, would require a change in an agency’s proposed rule cast doubt on the reasonableness of a position taken by the agency. Moreover, comments which themselves are purely speculative and do not disclose the factual or policy basis on which they rest require no response. There must be some basis for thinking a posi*36tion taken in opposition to the agency is true. See Portland Cement Ass’n v. Ruckelshaus, 158 U.S.App.D.C. 308, 326-327, 486 F.2d 375, 393-394 (1973).

59

. This deficiency was brought to the attention of the Commission by, among others, the Justice Department:

[B]efore the question posed [as to the existence of alternatives] can be answered, the Commission must define exactly what public interests it seeks to protect. Until such a *37determination is made, the Commission cannot conclude whether there exists a “less restrictive” means of serving the public interest. To date, the Commission has not demonstrated exactly what public interest it advances by retarding pay cablecasting.

Comments of the Department of Justice in Docket No. 19554, at 26, JA 251 (Nov. 1, 1972) (emphasis in original).

60

. The Commission’s lack of a clear picture is directly attributable to its own choice to regulate rather than allow a period of unregulated experimentation in which data could be generated that could form a predicate for informed agency action. This decision was taken over the objections of a number of parties to this proceeding. See, e.g., Reply Comments of the United States Department of Justice in Docket No. 19554, at 13, JA 280 (Oct. 4, 1974); Comments of Walter S. Baer, Henry Geller, and Leland L. Johnson in Docket No. 19554, at 11-14, JA 293-296 (Sept. 20, 1974). The sole basis for the Commission’s choice to go forward is the conclusory statement that action was needed at a “ ‘time when it involves no disruption of existing patterns.’ ” First Report and Order, supra note 2, 52 FCC 2d at 49, JA 73, quoting Memorandum Opinion and Order, 23 FCC 2d 825, 828 (1970) (Docket 18397). However, this position is precisely the opposite of that the Commission took in its First Report and Order in Docket 18397, 20 FCC 2d 201 (1969), see notes 5 & 27 supra. There the Commission expressly refused to impose regulations like those challenged here until it gained “some further experience in this area.” Id. at 204. In particular, the Commission noted that there was no “trend calling for action in the public interest,” id., and that the data developed in the subscription broadcast television proceeding was not apposite, id. The Commission has not called our attention to any data which would fill the gaps in its experience identified in 1969, and we can find none in the record.

In this state of affairs, where there is no evidence of any urgent need for preventive action and where approval of the Commission’s position would foreclose the possibility that data could be generated in the future that would allow fully informed decisionmaking, we are disinclined to give the Commission the “benefit of the doubt” which it argues it should have. See br. for respondent FCC at 52-53.

61

. Specific sports events are defined in the First Report and Order, supra note 2, 52 FCC 2d at 59-60, JA 83-84, and in 47 C.F.R. §§ 76.225(b)(l)-(b)(2) (1975). The record reveals that evidence relating to the siphoning of nonspecific sports events is scanty but that available data indicate “that there has been no interference with established over-the-air broadcasting patterns.” Comments of Professional Baseball in Docket 19554, at 28, JA 1069 (Sept. 20, 1974).

62

. The precise date of network expenditure data is not clear. American Broadcasting Companies’ presentation to the Commission used 1972 data. See Further Comments of American Broadcasting Companies, Inc. in Docket No. 19554, at 14, JA 698 (Sept. 20, 1974). In general, data contemporaneous with the date of comment submission seem to have been used.

63

. The deficiencies noted here were pointed out to the Commission in Comments of Optical Systems Corp. in Docket No. 19554, at 22, JA 1002 (Sept. 20, 1974).

64

. R. Noll, M. Peck & J. McGowan, supra note 42, at 16. The National Association of Broadcasters has'' estimated that 1975 profit margins will average 18.9 percent. See Broadcasting, July 26, 1976, at 19.

65

. R. Noll, M. Peck & J. McGowan, supra note 42, at 17.

66

. 47 U.S.C. § 303(r) (1970).

67

. We do not agree with the suggestion of some petitioners that the Commission must demonstrate that the means it has chosen have the least impact on competition consistent with achievement of the Commission’s purposes. To the extent that First Amendment and antitrust considerations coincide, it is necessary to make such a showing. See 185 U.S.App.D.C. at -, 567 F.2d at 48, infra. Otherwise, we think our recent decision in United States v. CAB, 167 U.S.App.D.C. 313, 318-320, 511 F.2d 1315, 1320-1322 (1975), is controlling and requires rejection of a least restrictive alternative approach. In that case the Justice Department, advocating a least restrictive alternative approach, challenged CAB action under § 102 of the Federal Aviation Act, 49 U.S.C. § 1302 (1970), which expressly incorporates anticom-petitive effect as one of six factors to be considered in assessing the “public convenience and necessity.” The Department’s argument was rebuffed in favor of a balancing approach on the basis of a number of precedents. Anti-competitive factors are also only one of a number of factors to be considered under the Communications Act, see, e. g., National Broadcasting Co. v. United States, 319 U.S. 190, 222-224, 63 S.Ct. 997, 87 L.Ed. 1344 (1943); FCC v. RCA Communications, Inc., 346 U.S. 86, 94, 73 S.Ct. 998, 97 L.Ed. 1470 (1953); United States v. Radio Corp. of America, 358 U.S. 334, 79 S.Ct. 457, 3 L.Ed.2d 354 (1959). Because of the similarity in statutory schemes, we think United States v. CAB, supra, controls our standard of review here.

68

. There can be no question that the Commission can properly consider antitrust issues. See, e. g., National Broadcasting Co. v. United States, supra note 67, 319 U.S. at 222-224, 63 S.Ct. 997; FCC v. RCA Communications, Inc., supra note 67, 346 U.S. at 94, 73 S.Ct. 998; United States v. Radio Corp. of America, supra note 67, 358 U.S. at 351, 79 S.Ct. 457; General Telephone Co. of Southwest v. United States, 449 F.2d 846 (5th Cir. 1971); Nat’l Ass’n of Independent Television Producers & Distributors v. FCC, 502 F.2d 249, 256 (2d Cir. 1974).

69

. The Commission’s own excellent summary of the antitrust and diversity issues presented can be found in the First Report and Order, supra note 2, 52 FCC 2d at 37-39, JA 61-63.

70

. Under the recently amended Copyright Act cable operators will have to pay royalties for use of broadcast signals. See Pub.L.No. 94-553, § 111, 90 Stat. 2550-2558 (1976).

71

. For this reason any Commission solicitude for the broadcast networks would be misplaced. See FCC v. Sanders Bros. Radio Station, 309 U.S. 470, 60 S.Ct. 693, 84 L.Ed. 869 (1940); Carroll Broadcasting Co. v. FCC, 103 U.S.App.D.C. 346, 258 F.2d 440 (1958). Moreover, the network petitioners have shown no economic injury to them arising from cable’s free use of broadcast signals, and we doubt that such a showing could be made. See Teleprompter Corp. v. Columbia Broadcasting System, Inc., 415 U.S. 394, 412, 94 S.Ct. 1129, 39 L.Ed.2d 415 (1974) (fee broadcasters can charge is increased by the number of viewers added through cable retransmission).

72

. In this respect the Department’s arguments fall short of the standard of significance required to mandate a Commission rebuttal. See 185 U.S.App.D.C. at-& note 58, 567 F.2d at 35 & note 58, supra.

73

. Serious questions would be raised if the Commission sought to justify its rules solely on the basis of such a presumption. The Supreme Court in FCC v. RCA Communications, Inc., supra note 67, while recognizing that enhancement of competition was a relevant factor, reversed the Commission because it had not shown that “competition would serve some beneficial purpose.” 346 U.S. at 97, 73 S.Ct. at 1005. Similarly, the Court has held that the Commission may not deny a license solely on the ground that a grant would facilitate or constitute an antitrust violation. See United States v. Radio Corp. of America, supra note 67. These cases would seem to stand for the proposition that the Commission may not assume that enhancement of competition is beneficial to the public interest unless it has examined the consequences of competition for the interest of listeners and viewers. See also Citizens Committee to Save WEFM v. FCC, 165 U.S.App.D.C. 185, 206, 506 F.2d 246, 267 (1974) (en banc).

74

. We do not adopt the suggestion of the Justice Department and other petitioners that the Commission must make specific findings concerning anticompetitive effects and regulatory benefits before it can properly assess the anti- ■ trust issue. Cases cited in support of this proposition all involved agency adjudication or formal rulemaking in which a record is created *43under the strictures of rules of evidence and the standard of review is substantial evidence. Findings and a record of the type mandated in such proceedings are not generally required in informal rulemaking, and we see no need to differentiate between antitrust issues and all other issues in reviewing agency action.

75

. See Report and Order, 23 FCC 2d 382, 384-395 (1970), modified, 25 FCC 2d 318 (1970), further modified, 44 FCC 2d 1081 (1974). Interestingly, the purpose of the Prime Time Access Rule was to help UHF television stations by increasing the supply of quality product. The series programming restriction, by working against this policy, therefore also worked against an outcome found vitally important by the Supreme Court in United States v. Southwestern Cable Co., supra note 24, a case the Commission has nonetheless invoked in support of its rulemaking authority here.

76

. See also Red Lion Broadcasting Co. v. FCC, 395 U.S. 367, 386-388, 89 S.Ct. 1794, 23 L.Ed.2d 371 (1969); T. Emerson, The System of Freedom of Expression 660-667 (1970); Robinson, The FCC and the First Amendment: Observations on 40 Years of Radio and Television Regulation, 52 Minn.L.Rev. 67, 85-86 (1967). But see Kalven, Broadcasting, Public Policy and the First Amendment, 10 J.Law & Econ. 15, 30-32 (1967).

77

. See, e. g., Kalven, supra note 76, 10 J.Law & Econ. at 30-32.

78

. See generally Fourth Report and Order, supra note 5.

79

. The NATO court did not itself rely on National Broadcasting Co., although the opinion as a whole is intended to be a response to the rather narrow question of the Commission’s authority to allocate television channels to subscription stations. Nonetheless, the First Amendment discussion in NATO does recognize the scarcity rationale and cite cases which in turn rely on National Broadcasting Co. See 136 U.S.App.D.C. at 365 & n.35, 420 F.2d at 407 & n.35. Ultimately, however, primary reliance was placed on tests developed in Ban-zhaf v. FCC, 132 U.S.App.D.C. 14, 33-35, 405 F.2d 1082, 1101-1103 (1968), cert, denied, 396 U.S. 842, 90 S.Ct. 50, 24 L.Ed.2d 93 (1969), a case which affirmed the Commission’s authority to order presentation of material rebutting cigarette commercials. See 136 U.S.App.D.C. at 366, 420 F.2d at 408. The First Amendment holding in Banzhaf, which relied on the commercial speech doctrine, has been limited by the subsequent cases of Bigelow v. Virginia, 421 U.S. 809, 95 S.Ct. 2222, 44 L.Ed.2d 600 (1975) , and Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, Inc., 425 U.S. 748, 96 S.Ct. 1817, 48 L.Ed.2d 346 (1976) , and would not in any case be directly applicable to suppression of film and sports programming. On the other hand, Banzhaf’s requirements that ideas not be affected and that on balance diversity of expression be increased by regulation, applied by the NATO court, see 136 U.S.App.D.C. at 366, 420 F.2d at 408, come directly from National Broadcasting Co., see 319 U.S. at 226 — 227, 63 S.Ct. 997, and Red Lion Broadcasting Co., see 395 U.S. at 393, 89 S.Ct. 1794. Thus, if NATO moves beyond National Broadcasting Co. at all, it is only to the extent that it imposes the additional requirement that regulation increase diversity. NATO’s conclusion that the subscription broadcast television rules would increase diversity is not, however, transferable to the pay cable rules since any assessment of First Amendment gains and losses must be made on the basis of the record in front of us today and not on the basis of legal precedent.

80

. The Commission in brief has argued that, regardless of the applicability of NATO, decisions affirming prior cable rules, including some applicable to cable systems that did not use broadcast signals, provide precedent for upholding the pay cable rules against a First Amendment attack. We think the Commission’s reliance is misplaced, as a review of the cited cases will show. In some cases the First Amendment issue was simply not mentioned and may not even have been raised on review. See, e. g., United States v. Midwest Video Corp., 406 U.S. 649, 92 S.Ct. 1860, 32 L.Ed.2d 390 (1972); United States v. Southwestern Cable Co., supra note 24. In others the rationale was the scarcity argument developed in National Broadcasting Co. The earliest of these cable cases, Carter Mountain Transmission Corp. v. FCC, 116 U.S.App.D.C. 93, 321 F.2d 359, cert, denied, 375 U.S. 951, 84 S.Ct. 442, 11 L.Ed.2d 312 (1963), did not in fact deal with regulation of cable television. It held simply that the Commission could deny a microwave license to a cable system operator for use in retransmitting broadcast signals in conjunction with cable television unless he agreed to use the licensed facility in a manner not endangering the economic health of broadcasters serving the same area. This principle is uncontroversial, see FCC v. Sanders Bros. Radio Station, supra note 71, 309 U.S. at 476, 60 S.Ct. 693, and was justified entirely on Justice Frankfurter’s logic in National Broadcasting Co. See 116 U.S.App.D.C. at 98, 321 F.2d at 364. A similar fact situation was presented in Idaho Microwave, Inc. v. FCC, 122 U.S.App.D.C. 253, 352 F.2d 729 (1965). The subsequent case of Buckeye Cablevision, Inc. v. FCC, 128 U.S.App.D.C. 262, 387 F.2d 220 (1967), did involve application of Commission rules to a cable system that did not use microwave broadcast facilities. The issue presented was whether Commission rules prohibiting cable transmission of signals imported from distant broadcast stations (now codified at 47 C.F.R. §§ 76.51-76.161 (1975)) violated cable operators’ First Amendment rights. In holding that the rules were constitutional the court, without discussion, cited National Broadcasting Co. and Carter Mountain, thus apparently incorrectly treating the case as one involving the scarcity and allocation rationale. See 128 U.S.App.D.C. at 267 n.23, 387 F.2d at 225 n.23. The Eighth Circuit, in passing on the same rules, cited National Broadcasting Co. and Buckeye Cablevision and similarly treated the issue as one indistinguishable from broadcasting:

The Commission’s [rules] regulating CATVs hafve] the same constitutional status under the First Amendment as regulation of the transmission of signals by the originating television stations. * * * The crucial consideration is that they do use radio signals * * *

Black Hills Video Corp. v. FCC, 399 F.2d 65, 69 (8th Cir. 1968). Other cases cited by the Commission rely on various combinations of National Broadcasting Co., Carter Mountain, Buckeye Cabievision, or Black Hills Video. In these circumstances, the cited cases provide no independent support for the constitutionality of the pay cable rules.

To the extent that Black Hills Video stands for the proposition that the Commission in some sense “owns” the broadcast spectrum and can condition use of broadcast signals accordingly, it must be rejected. The public owns parks, sidewalks, and other “public forums,” and yet it is beyond argument that use of such property by the public cannot be conditioned on whether the government agrees with or desires to allow or disallow the ideas which a speaker seeks to convey. See, e. g., Police Department of Chicago v. Mosley, 408 U.S. 92, 97-98, 92 S.Ct. 2286, 33 L.Ed.2d 212 (1972); T. Emerson, supra note 76, at 660. Moreover, on the record before us there is no evidence that cablecasting and signal retransmission are not completely separate and distinct activities, cf. Teleprompter Corp. v. Columbia Broadcasting System, Inc., supra note 71, 415 U.S. at 405, 94 S.Ct. 1129 (no “nexus” between broadcast and retransmission functions); consequently any constitutionally permissible public control over broadcast signals is beside the point as justification for control of the cablecast function. Further, as we have already indicated, see note 44 supra, Commission power over recipients of broadcast signals would not extend to access cablecasters.

We express no opinion here on the question whether Commission control of microwave radio links used by cablecast networks would extend the Commission’s constitutionally permitted authority over cable.

81

. See Cabinet Comm, on Cable Communications, supra note 21, at 10; First Report and Order, 20 FCC 2d 201, 222 n.27 (1969) (Docket No. 18397):

cable television’s operations have developed on a noncompetitive, monopolistic basis in the particular areas served with no instance, to our knowledge, where a member of the public subscribes to more than one cable television service.

82

. The Supreme Court in Miami Herald further found that the statute at issue would have had a. chilling effect on presentation of controversial material about public figures. See 418 U.S. at 256-258, 94 S.Ct. 2831. This suggests that the Court was concerned about an overall diminution of diversity. Whether rules seeking to reduce private control of scarce communications resources which did not have this effect would be valid thus appears to be an open question. A requirement that cable system operators dedicate certain channels to common carrier use might avoid such an infirmity and two courts, without reaching the First Amendment issue, have already indicated that the Commission could compel such sharing of cable channels. See United States v. Midwest Video Corp., supra note 80; American Civil Liberties Union v. FCC, 523 F.2d 1344, 1351 (9th Cir. 1975). Thus, on a proper record, Miami Herald might present no impediment to some types of Commission regulations.

Alternatively, local government involvement in the franchise and regulation of cable television, see Promise Versus Performance, supra note 30, at 20-23, might make cable owners “the state” for constitutional purposes, thus subjecting them to First Amendment scrutiny. Cf. Public Utilities Comm’n v. Pollak, 343 U.S. 451, 462, 72 S.Ct. 813, 96 L.Ed. 1068 (1952); Lehman v. City of Shaker Heights, 418 U.S. 298, 303, 94 S.Ct. 2714, 41 L.Ed.2d 770 (1974); T. Emerson, supra note 76, at 663. Again, this question cannot be resolved on the record before us.

83

. The existence of an alternative First Amendment theory justifying cable regulation is denied by many petitioners. Their argument, in summary, is that movies (and apparently sports events) are a form of speech protected by the First Amendment. Joseph Burstyn, Inc. v. Wilson, 343 U.S. 495, 72 S.Ct. 777, 96 L.Ed. 1098 (1952). Consequently the rules constitute a prior restraint .on protected speech which, if not always impermissible, Times Film Corp. v. City of Chicago, 365 U.S. 43, 81 S.Ct. 391, 5 L.Ed.2d 403 (1961), is presumptively invalid, Bantam Books, Inc. v. Sullivan, 372 U.S. 58, 70, 83 S.Ct. 631, 9 L.Ed.2d 584 (1963), and is here rebutted by no substantial purpose that could not be equally well served by less restrictive rules or is, in any event, invalid because the rules do not afford the procedural safeguards required by Freedman v. Maryland, 380 U.S. 51, 85 S.Ct. 734, 13 L.Ed.2d 649 (1965). This argument is not unpersuasive, but on reflection we do not think it fits the facts of this case.

84

. Kalven, The Concept of the Public Forum: Cox v. Louisiana, 1965 Sup.Ct.Rev. 1, 23.

85

. Brennan, The Supreme Court and the Meik-lejohn Interpretation of the First Amendment, 79 Harv.L.Rev. 1, 5 (1965).

86

. See, e. g., Police Department of Chicago v. Mosley, supra note 80; Grayned v. City of Rockford, 408 U.S. 104, 92 S.Ct. 2294, 33 L.Ed.2d 222 (1972). See generally Kalven, supra note 84.

87

. See, e. g., Cox v. New Hampshire, 312 U.S. 569, 61 S.Ct. 762, 85 L.Ed. 1049 (1941).

88

. See Grayned v. City of Rockford, supra note 86, 408 U.S. at 114-121, 92 S.Ct. 2294; Kovacs v. Cooper, 336 U.S. 77, 69 S.Ct. 448, 93 L.Ed. 513 (1949).

89

. See, e. g., Lehman v. City of Shaker Heights, supra note 82.

90

. See, e. g., Spence v. Washington, 418 U.S. 405, 94 S.Ct. 2727, 41 L.Ed.2d 842 (1974); Cohen v. California, 403 U.S. 15, 91 S.Ct. 1780, 29 L.Ed.2d 284 (1971); United States v. O’Brien, 391 U.S. 367, 88 S.Ct. 1673, 20 L.Ed.2d 672 (1968). See also, Procunier v. Martinez, 416 U.S. 396, 94 S.Ct. 1800, 40 L.Ed.2d 224 (1974) (applying collateral consequences analysis to prisoner mail censorship).

91

. See Ely, Flag Desecration: A Case Study in the Roles of Categorization and Balancing in First Amendment Analysis, 88 Harv.L.Rev. 1482, 1493-1496 (1975). Compare, e. g., Buckley v. Valeo, 424 U.S. 1, 16, 96 S.Ct. 612, 46 L.Ed.2d 659 (1976), with Buckley v. Valeo, 171 U.S.App.D.C. 172, 191-195, 519 F.2d 821, 840-844 (1975) (en banc), and Wright, Politics and the Constitution: Is Money Speech?, 85 Yale L.J. 1001 (1976).

92

. Although O’Brien was a case involving draft card burning, it has not been limited to that sort of symbolic speech situation. See, e. g., Procunier v. Martinez, supra note 90 (prisoners’ mail); A Quacker Action Group v. Morton, 170 U.S.App.D.C. 124, 516 F.2d 717 (1975) (public gatherings at the White House). See also Young v. American Mini Theatres, Inc., 427 U.S. 50, 78-82, 96 S.Ct. 2440, 49 L.Ed.2d 310 (1976) (Powell, J., concurring) (obscenity zoning).

93

. See Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, Inc., supra note 79, 425 U.S. at 756-757, 96 S.Ct. 1817; Procunier v. Martinez, supra note 90, 416 U.S. at 408-409, 94 S.Ct. 1800; Kleindienst v. Mandel, 408 U.S. 753, 762-763, 92 S.Ct. 2576, 33 L.Ed.2d 683 (1972); Red Lion Broadcasting Co. v. FCC, supra note 76, 395 U.S. at 390, 89 S.Ct. 1794.

94

. Consequently, the pay cable rules, while equalizing access to the media for rich and poor, are not intended to have the effect proscribed in Buckley v. Valeo. See 424 U.S. at 17, 96 S.Ct. 612. For this reason we need not consider how to reconcile the Court’s position in Buckley with the following flatly contradictory language in Columbia Broadcasting System, Inc. v. Democratic National Committee, 412 U.S. 94, 123, 93 S.Ct. 2080, 2096, 36 L.Ed.2d 772 (1974):

The * * * public interest in providing access to the marketplace of “ideas and experiences” would scarcely be served by a system * * * heavily weighted in favor of the financially affluent, or those with access to wealth. * * *

See also NATO v. FCC, supra note 5, 136 U.S. App.D.C. at 365, 420 F.2d at 207.

95

. The provision relating to movies is set out at note 46 supra. The waiver provisions for sports programming are less clear. The Commission makes no mention of any waiver policy with respect to specific sports events. On the other hand, cablecasters may seek a waiver of the non-specific sports rules if they can demonstrate that a reduction in broadcast presentation of such events has been caused by “reasons completely unrelated to program siphoning.” First Report and Order, supra note 2, 52 FCC 2d at 62, JA 86.

96

. A number of petitioners take the position that the rules reduce the overall profitability of feature films by restricting their commercial exploitation on both cable and broadcast television, with the result that fewer films are produced than would be the case in the absence of the rules. We do not think the record demonstrates such a causal connection between the rules and the overall health of the movie industry. But even if the rules did reduce the number of films produced, that effect would not rise to the level of a First Amendment violation. Such a result would prove too much. It would require invalidation of any general law which affected the profitability of the movie industry; this, however, is clearly not the law. See, e. g., Associated Press v. United States, 326 U.S. 1, 65 S.Ct. 1416, 89 L.Ed. 2013 (1945).

97

. That cablecasters might lose some profits by adopting these alternative modes of speaking is doubtless true. But in the absence of a showing of economic harm bordering on censorship, a diminution of profits does not itself present a First Amendment problem. See note 96 supra. See also the statement of the Supreme Court in rejecting the claim that motion picture “clearances” constituted violations of some theater owners’ First Amendment rights:

The main contest is over the cream of the exhibition business — that of the first-run the-atres. * * * [This] shows * * * that the question here is not what the public will see or if the public will be permitted to see certain features. It is clear that under the existing system the public will be denied access to none. * * * The central problem presented by these cases is which exhibitors get the highly profitable first-run business. That problem has important aspects under the' Sherman Act. But it bears only remotely, if at ail, on any question of freedom of the press, save only as timeliness of release may be a factor of importance in specific situations.

United States v. Paramount Pictures, Inc., 334 U.S. 131, 166-167, 68 S.Ct. 915, 933, 92 L.Ed. 1260 (1948) (last emphasis added).

98

. See note 55 supra.

99

. See note 56 supra.

100

. See 185 U.S.App.D.C. at-, 567 F.2d at 34 supra.

101

. See 185 U.S.App.D.C. at---, 567 F.2d 36-40 supra.

102

. The only evidence in the record before us relating to the effect of delay on the public interest is uncontradicted evidence showing that delay has no effect on the popularity of feature film material. See Comments of Program Suppliers in Docket No. 19554, at 21, JA 386 (Nov. 1, 1972).

103

. This seems especially the case since the Commission tells us that delay is detrimental to the public interest. We are unaware of any evidence to support this proposition, however. See note 102 supra.

104

. See First Report and Order, supra note 2, 52 FCC 2d at 62, JA 86.

105

. Amicus urged the Commission to set out the essence of any oral ex parte communications and place written presentations in the public file. In addition amicus urged that interested parties be allowed an opportunity to comment on the material disclosed on an expedited basis, i. e., within a three-week period.

106

. See Notice of Proposed Rule Making and Memorandum Opinion and Order, supra note 5, 35 FCC 2d at 899, JA 7; Further Notice of Proposed Rule Making and Order for Oral Argument, 48 FCC 2d 453, 463 (1974), JA 19.

107

. The Commission has devoted only one footnote to this issue in its brief. Br. for respondent FCC at 50 n.55. This footnote does not challenge the accuracy of amicus Geller’s statements and, indeed, offers us no facts at all that would tend to rebut the clear import of amicus’ statements that ex parte contacts shaped the ultimate form of the pay cable rules. See text accompanying notes 110 to 116 infra.

The reasons urged by the Commission against reaching the ex parte contact issue are frivolous. There can be no waiver or estoppel raised here against our consideration of an issue vital to the public as a whole. Therefore, Mr. Geller’s “dirty hands,” if such they be, present no bar. Second, Mr. Geller sought a delay of only three weeks in which the public could comment on the information he urged be disclosed. Since he brought this matter to the attention of the Commission three months before issuance of the Commission’s First Report and Order, and at a time when the Commission was still entertaining private communications, we find it incredible that the Commission would even suggest “the difficulty, if not the impossibility, of complying with this ‘after the fact’ request.” Br. for respondent FCC at 50 n. 55. Finally, we hold that Sangamon, properly construed, does apply to this proceeding. See text at note 124 infra.

108

. Because many Commission officials kept no accurate records on contacts, the list is incomplete and the dates of various contacts often uncertain or estimated.

109

. Ex parte communications were also originated by many persons not party here, including members of Congress, members of the trade press, and representatives of various performing arts groups.

[110]

110. See Television Digest, March 4, 1974, at 1-2; Broadcasting, March 4, 1974, at 6; Television Digest, Feb. 18, 1974, at 1-2; Broadcasting, March 11, 1974, at 5.

[111]

111. Television Digest, March 4, 1974, at 2.

[112]

112. Id. (Senators’ “action * * * was prompted by Hill visit by ABC Chairman Leonard Goldenson and President Elton Rule, whose only goal was to put halter on relaxation of pay-cable rules”); Broadcasting, March 4, 1974, at 6; see remarks by Everett H. Erlich, Senior Vice President and General Counsel, ABC, before the ABC Television Network Affiliates, Los Angeles, May 10, 1974, at. 1:

As most of you know, the- FCC just prior to Chairman Burch’s sudden departure was on the verge of modifying Pay-TV rules applicable to movies by loosening the 2 and 10-years limitations. They were also considering a so-called “wild card” exception for 12 to 18 pictures a year which would have exempted entirely the most popular features from the application of any rule. We took the leadership in opposing these proposals with the result that key members of Congress made it *53known in no uncertain terms that they did not expect the Commission to act on such a far-reaching policy matter without guidance. The Commission got the message and has postponed for several months reconsideration of this particular issue * * *.

[113]

113. Television Digest, March 10, 1975, at 2; see Broadcasting, March 10, 1975, at 6.

[114]

114. See id.

[115]

115. Television Digest, March 17, 1975, at 3.

[116]

116. Broadcasting, March 17, 1975, at 10.

117

. A similar note was struck by Chairman Wiley in a speech to the Federal Communications Bar Association:

There is one other lobbying technique which disturbs me although I would acknowledge that it is largely due to a somewhat unfortunate practice on the part of the FCC. . I mention it today because I want to put you on notice of my intention to change this practice wherever possible. When the Commission holds an oral argument on some rulemaking matter, we carefully divvy up the advocacy time available among various parties. When the argument is completed, the Commissioners should then be in the best position possible to make a tentative decision on the merits. Typically, however, such a decision is not made until long after the conclusion of the formal argument. During the delay until decision, oral argument often continues informally in the privacy of individual Commissioner and staff offices. I simply do not think that this is a good practice and, accordingly, and to the extent practicable, I hope to have the Commission making tentative judgments very quickly following oral argument, thus obviating the possibility of any further seriatim presentations.
* * * Compromises, fail-back positions, and the so-called “real facts” are often reserved for supplemental filings and, perhaps, subsequent visits to Commission offices.

FCC Mimeo. 21343 at 4 (April 30, 1970).

118

. The legislative history of the Administrative Procedure Act has been read to imply that there is no such thing as an administrative record in informal rulemaking. See, e. g., U.S. Dept, of Justice, Attorney General’s Manual on the Administrative Procedure Act 31 (1947) (“section 4(b) does not require the formulation of rules upon the exclusive basis of any ‘record’ made in informal rulemaking proceedings”). Professor Nathanson has similarly concluded;

Section 553’s notice-and-comment provisions were [originally] conceived of as instruments for the education of the administrator, especially on questions of policy; there is not the slightest indication that the purpose of the notice-and-comment proceeding was to develop a record by which a reviewing court could test the validity of the rule which the Administrator finally adopted.
Apparently, an underlying assumption of the APA draftsmen was that any factual issues which became pertinent in a challenge to the validity of a section 553 rule would be resolved in the first instance in judicial proceedings — either in enforcement proceedings or in suits to enjoin enforcement. * * * Nathanson, Probing the Mind of the Administrator: Hearing Variations and Standards of Judicial Review Under the Administrative Procedure Act and Other Federal Statutes, 75 Colum.L.Rev. 721, 754-755 (1975). The Department of Justice, in apparent accord with these views, relied on the Commission’s own rules, which defined the administrative record to be comments and reply comments, and not the Administrative Procedure Act, in arguing that the ex parte contacts in Sangamon were invalid. See br. of the United States on remand from the Supreme Court at 5-10, Sangamon Valley Television Corp. v. United States, 106 U.S.App.D.C. 30, 269 F.2d 221 (1959). See also Verkuil, Judicial Review of Informal Rulemak-ing, 60 Va.L.Rev. 185, 202-205 (1974).

119

. The precise content of this record is still a matter of some dispute. Compare Recommendation 74-4 of the Administrative Conference of the United States, printed in 3 Recommendations and Reports of the Administrative Conference of the United States 48-52 (1974), with Pederson, Formal Records and Informal Rule-making, 85 Yale L.J. 38, 64-65 (1975).

120

. See 185 U.S.App.D.C. at---, 567 F.2d at 34-36 supra.

121

. For an example of agency disclosure of expertise in a notice of proposed rulemaking, see Environmental Defense Fund, Inc. v. EPA, 179 U.S.App.D.C. 43, 52, 548 F.2d 998, 1007 (1976).

122

. The Commission’s rules provide in relevant part:

§ 1.415 Comments and replies.
(a) After notice of proposed rule making is issued, the Commission will afford interested persons an opportunity to participate in the rule making proceeding through submission of written data, views, or arguments, with or without opportunity to present the same orally in any manner.
(b) A reasonable time will be’ provided for submission of comments in súpport of or in opposition to proposed rules, and the time provided will be specified in the notice of proposed rule making.
(c) A reasonable time will be provided for filing comments in reply to the original comments, and the time provided will be specified in the notice of proposed rule making.
(d) No additional comments may be filed unless specifically requested or authorized by the Commission.
(e) For time limits for filing motions for extension of time for filing comments or reply comments, see § 146(b).

47 C.F.R. § 1.415 (1975). Substantially similar rules were construed in Sangamon Valley Television Corp. v. United States, supra note 118, 106 U.S.App.D.C. at 33-34, 269 F.2d at 224-225, to prohibit ex parte communications since such communications, as a practical matter, constituted additional comments for which no specific authority had been granted. See 47 C.F.R. § 1.415(d) (1975). At the time of Sanga-mon, however, the Commission’s rules and practice required “a showing of good cause,” 106 U.S.App.D.C. at 34, 269 F.2d at 225, for approval of a request to submit additional comments. In the absence of this language, and given the apparent long-standing Commission interpretation of its own rules to allow ex parte contacts, see Geller br. at 7, the inference that the Commission has violated its own rules is less easy to draw from the rather obvious inconsistency between the published rules’ strict timetable for comment and the actual practice of allowing comment at any time. Nonetheless, the Commission’s practice of announcing a relaxation in its comment and reply-comment rules through the cryptic phrase, “[i]n reaching a decision in this matter, the Commission may take into account any other relevant information before it,” 35 FCC 2d at 899, JA 7, is certainly inconsistent with the spirit of the poli*56cy disclosure requirements of the Freedom of Information Act, 5 U.S.C. § 552(a)(2)(B) (1970), which seek to give the public an understanding of how an agency actually works. One not familiar with Commission practices would be hard put to understand that the foregoing phrase effectively repealed 47 C.F.R. § 1.415(d), a fact corroborated by the complete absence of reported ex parte contacts from public interest intervenors other than amicus Geller, himself a former General Counsel of the Commission. In these circumstances, we do not think the Commission can be said to have specifically authorized additional comments as required by 47 C.F.R. § 1.415(d), cf. 5 U.S.C. § 552(a)(2) (prohibiting agency reliance on undisclosed policy statements), and we therefore hold that the Commission violated its own rules.

123

. I[t] seems to me that [a procedure prohibiting ex parte contacts] will also have a salutary effect on the level of advocacy during arguments before the Commission. I have often felt that we don’t learn as much during oral proceedings as we would [sic]. Many oral presentations are not only repetitious * * * but also, if I may say so, fairly “hard-line”. Compromises, fall-back positions, and the so-called “real facts” are often reserved for supplemental filings and, perhaps, subsequent visits to Commission offices.

Under my proposed procedures, if you decide to hard-line it, you had better be convincing — otherwise, you might just find that we decided to adopt your opponent’s equally hard-line position. Hopefully, however, you can better utilize the opportunity of oral argument to avoid needless repetition, to perhaps zero in on a particularly important aspect of the case and, finally, to provide the Commission with some alternative solutions assuming, just assuming, that your proposed recommendation is not fully adopted.

Remarks of Richard E. Wiley, Chairman, FCC, FCC Mimeo. 21343 (April 30, 1974).

124

. For this reason, we do not think our opinion in Courtaulds (Alabama) Inc. v. Dixon, 111 U.S.App.D.C. 115, 294 F.2d 899 (1961), should be interpreted to narrow Sangamon. In Cour-taulds it was stipulated that the Federal Trade Commission had considered ex parte communications in formulating its final rules defining rayon. 111 U.S.App.D.C. at 120, 294 F.2d at 904. Nonetheless, in upholding the procedures used this court said, “We find no evidence that the Commission improperly did anything in secret or gave to any interested party advantages not shared by all.” 111 U.S.App.D.C. at 120-121, 294 F.2d at 904-905. This finding alone distinguishes Courtaulds from both Sangamon and the instant case, in both of which the substance of the contacts was kept secret. Indeed, the Courtaulds court specifically noted that ex parte submissions were “canvassed with the appellant, Government spokesmen and others * * 111 U.S.App.D.C. at 120, 294 F.2d at 904. Courtaulds also contained a footnote distinguishing Sangamon on the ground that the rulemaking in Courtaulds did not decide competing private claims to a valuable privilege. Ill U.S.App.D.C. at 120-121 n.16, 294 F.2d at 904-905 n.16.

To the extent this same footnote also suggests that Sangamon did not involve rulemak-ing, it is plainly in error. See Sangamon Valley Television Corp. v. United States, supra note 118, 106 U.S.App.D.C. at 33, 269 F.2d at 224. Nor, as the Commission suggests here, was Sangamon limited to “quasi-judicial” proceedings.

125

. Of course, the Sunshine Act by its terms does not apply here. Its ex parte contact provisions are couched as an amendment to 5 U.S.C. § 557, and as such the rules do not apply to rulemaking under § 4 of the Administrative Procedure Act, 5 U.S.C. § 553. Moreover, the Act was not in effect at the time of the events in question here.

126

. Sec.. 4. Individuals within the Executive Office of the President shall follow a policy of (a) refusing to discuss matters relating to the disposition of a case subject to the approval of the President under section 801 with any interested private party, or an attorney or agent for any such party, prior to the President’s decision, and (b) referring any written communication from an interested private party, or an attorney or agent for any such party, to the appropriate department or agency outside of the Executive Office of the President. * * *

Sec. 5. Departments and agencies outside of the Executive Office of the President which regularly make recommendations to the President in connection with the Presidential review pursuant to section 801 shall * * if!.
(a) establish public dockets for all written communications (other than those requiring confidential treatment for defense or foreign policy reasons) between their officers and employees and private parties in connection with the preparation of such recommendations!.]

Executive Order 11920, 12 Weekly Comp, of Presidential Documents 1040, 1041 (1976).

127

. 49 U.S.C. § 1461 (Supp. V 1974).

128

. For additional views favoring extension of the ex parte prohibition of the Sunshine Act to informal rulemaking, see Ass’n of the City of New York, Government in the Sunshine Act, reprinted in Hearings on H.R. 10315 & H.R. 9868 before the House Committee on Government Operations, 94th Cong., 1st Sess. 254-257 (1975), and Hearings on the Open Communications Act of 1975, S. 1289, before the Sub-comm. on Administrative Prac. & Proc. of the Senate Comm, on the Judiciary, 94th Cong., 1st Sess. (1976).

129

. See 185 U.S.App.D.C. at-, 567 F.2d 35-36, supra.

130

. We do not think these reporting requirements will be unduly burdensome. The overall *58effect of our opinion will be to require procedures similar to those already in effect in the Consumer Product Safety Commission which the head of that Commission has stated are not burdensome. See Hearings, supra note 128, at 10-39 (statement of Richard O. Simpson, Chairman, Consumer Product Safety Commission). Nor do we think disclosure will have the effect of cutting off information vital to the rulemaking process. See id. at 58 (testimony of Dr. Alexander Schmidt, Commissioner of Food and Drugs); id. at 170, 172 (statement of Bruce Brennan, Vice President, Pharmaceutical Manufacturers Ass’n). The scheme we require here is also no more burdensome than that required by the Sunshine Act for formal rule-making, see 5 U.S.C. § 557(d)(1)(C) as amended, or by Executive Order 11920, see note 126 supra. In addition, agency compliance with this opinion would be in accordance with Recommendations 74-4 of the Administrative Conference of the United States which provides:

1. In the absence of a specific statutory requirement to the contrary, the following are the administrative materials that should be before a court for its use in evaluating, on preenforcement judicial review, the factual basis for rules adopted pursuant to informal procedures prescribed in 5 U.S.C. § 553: (1) the notice of proposed rulemaking and any documents referred to therein; (2) comments and other documents submitted by interested persons; (3) any transcripts of oral presentations made in the course of the rulemaking; (4) factual information not included in the foregoing that was considered by the authority responsible for promulgation of the rule or that is proffered by the agency as pertinent to the rule; (5) reports of any advisory committees; and (6) the agency’s concise general statement or final order and any documents referred to therein. References to the “record” or “whole record” in statutes pertaining to judicial review of rules adopted under Section 553 should be construed as references to the foregoing in the absence of a legislative intent to the contrary. The Conference does not assume that the reviewing court should invariably be confined to the foregoing materials in evaluating the factual basis for the rule.

3 Recommendations & Reports of the Administrative Conference of the United States 49 (1974) (emphasis added; footnote omitted).

Despite what has been said above, it is conceivable that trade secrets or information affecting national defense, if proffered as the basis for rulemaking, should be kept secret. Cf. 5 U.S.C. § 552. We do not think any such issue is before us today, and it will be time enough to determine the bounds of any exemption from disclosure when a proper case is presented.

131

. 15 FCC 2d 466 (1968); see 185 U.S.App.D.C. at-, 567 F.2d at 20-21, supra.

132

. Originally films could be freely shown only until two years after general release. Id. at 597. Films over ten years old could be shown once per month without consulting the Commission. Id. Other films could be shown if the Commission was convinced either that they had been offered to broadcast television and refused or that they were unsuitable for broadcast use. Id. Since the effect of the present rules is only to delineate certain classes of films as presumptively unsuitable for or unwanted by broadcast television, it is not clear how much practical difference there would be between the operational impacts of the two rules.

133

. “No series type of program with interconnected plot or substantially the same cast of principal characters shall be broadcast.” Id. at 598.

134

. See JA 383, 555-562.

135

. See First Report and Order, supra note 2, 52 FCC 2d at 12, JA 36.

136

. See, e. g., Joint Comments of Columbia Pictures Industries, Inc., et al., in Docket 19554, at 3-6 (May 23, 1975), JA 890-893; Transcript of Oral Argument before the Commission in Docket 19554, JA 1184-1187.

137

. See also note 5 supra.

138

. See note 27 supra.

139

. See note 4 supra.

WEIGEL, District Judge,

concurring:

In joining the court’s opinion, I wish to emphasize the view that the Federal Communications Commission lacks the power to control the content of programs originating in the studios of cablecasters. Such programs involve neither retransmission of signals received over the air from conventional television broadcasting nor transmission over television broadcasting frequencies. They are offered to users of television sets on terms the users are free to accept or reject.

It seems to me that if there could be any governmental interest justifying this species of censorship, it is an interest which Congress has not empowered the Commission to assert. In relation to cablecasting, the power is so fraught with the potential for impingement upon First Amendment rights that it should not be sanctioned by implication.

The holdings in United States v. Southwestern Cable Co., 392 U.S. 157, 88 S.Ct. 1994, 20 L.Ed.2d 1001 (1968), United States v. Midwest Video Corp., 406 U.S. 649, 92 S.Ct. 1860, 32 L.Ed.2d 390 (1972), and other cases in their line, when read and measured on the particular facts in each, seem to me to be consistent with the views here expressed.

Mr. Chief Justice Burger, concurring in the result in Midwest, upheld Commission action regulating CATV systems which made extensive use of television broadcasting signals. In his opinion, after noting that that “case presented] questions of extraordinary difficulty and sensitivity in the communications field” (406 U.S. at 675, 92 S.Ct. at 1874), the Chief Justice declared his view that the Commission’s position strained “the outer limits of even the open-ended and pervasive jurisdiction that has evolved by decisions of the Commission and the courts.” (Id. at 676, 92 S.Ct. at 1874.) In my view, Commission control of program content of cablecasting goes well beyond those outer limits.

Opinion Concurring Specially filed by Circuit Judge MacKINNON.

MacKINNON, Circuit Judge,

concurring specially:

Belatedly, I file the following special concurrence.

This particular rulemaking proceeding began with a number of petitions by broadcast interests for reconsideration of earlier Docket orders and requested that certain existing rules of a highly restrictive nature be applied to all cablecasting programming. The Commission responded with:

Notice of Proposed Rule Making in Docket 19554 is hereby announced. All interested persons are invited to file written comments on the rule making proposals on or before September 15, 1972 and reply comment on or befpre September 29,1972. ... In reaching a decision in this matter, the Commission may take into account any other relevant information before it, in addition to the comments invited by this Notice.

35 FCC 2d 899, J.A. 7. This notice, including the provision that “the Commission may take into account any other relevant information ... in addition to the written comments,” constituted the initiation of what has come to be known as informal rulemaking, under 5 U.S.C. § 553(b).1 Un*62der informal rulemaking, the Commission would not be required to comply with the procedural requirements of sections 556 and 557, which, according to the provisions of section 553(b) and (c), apply to situations where rules are required by statute to be made on the record, after opportunity for an agency hearing. The latter category of agency action refers to formal rulemaking, and also pertains to adjudication required by statute to be determined on the record after opportunity for an agency hearing (see section 554(b)).

Recently, in Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971), a case dealing with informal rulemaking, the Supreme Court held that where there was a statutory requirement that certain findings precede administrative action and the specific findings had not been made, “the full administrative record that was before the Secretary at the time he made his decision,” 401 U.S. at 420, 91 S.Ct. at 824, had to be made available to the reviewing court.

To the extent that our Per Curiam opinion relies upon Overton Park to support its decision as to ex parte communications in this case, it is my view that it is exceeding the authority it cites because here there is no statutory requirement for specific findings nor are the regulations limited to the full administrative record. And our opinion follows up this excessive reliance on Over-ton Park by an overly broad statement of the rule. I refer particularly to the following:

Once a notice of proposed rulemaking has been issued, however, any agency official or employee who is or may reasonably be expected to be involved in the decisional process of the rulemaking proceeding, should “refus[e] to discuss matters relating to the disposition of a [rulemaking proceeding] with any interested private party, or an attorney or agent for any such party, prior to. the [agency’s] decision * * Executive Order 11920, § 4, supra, at 1041. If ex parte contacts nonetheless occur, we think that any written document or a summary of any oral communication must be placed in the public file established for each rulemak-ing docket immediately after the communication is received so that interested parties may comment thereon.

185 U.S.App.D.C. at -, 567 F.2d at 57. I agree that this is the proper rule to apply in this case because the rulemaking undeniably involved competitive interests of great monetary value and conferred preferential advantages on vast segments of the broadcast industry to the detriment of other competing business interests. The rule as issued was in effect an adjudication of the respective rights of the parties vis-a-vis each other. And since that is the nature of the case and controversy that we are deciding and to which our opinion is limited, I would make it clear that that is all we are deciding. I would not make an excessively broad statement to include dictum that could be interpreted to cover the entire universe of informal rulemaking. There are so many situations where the application of such a broad rule would be inappropriate that we should not paint with such a broad brush.2 In addition section 555(b), which applies to the entire act, authorizes *63interested parties to confer with all responsible employees of any agency:

. So far as the orderly conduct of public business permits, an interested person may appear before an agency or its responsible employees for the presentation, adjustment, or determination of an issue, request, or controversy in a proceeding, whether interlocutory, summary, or otherwise, or in connection with any agency function. .

5 U.S.C. ■ § 555(b). Specifically, I would restate the opening clauses of the above quoted provision of our opinion to restrict it to the facts of the case before us, i. e., to read substantially as follows:

*64Once a notice of proposed rulemaking has been issued that will involve competing private claims to a valuable privilege3 or selective treatment of competing business interests of great monetary value . etc.

There are several other statements in this section of our opinion which are too broad and should be similarly limited to the precise type of case currently before us.

1

. 5 U.S.C. § 553(b) (1970) provides:

General notice of proposed rule making shall be published in the Federal Register, unless persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law. The notice shall include—
(1) a statement of the time, place, and nature of public rule making 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.
Except when notice or hearing is required by statute, this subsection does not apply—
*62(A) to interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice; or
(B) when the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.

2

. Professor Kenneth Culp Davis in his Administrative Law Treatise (1958) points out some of the advantages of informal rulemaking and its wide scope:

§ 6.02. Written Presentations, Consultations, and Conferences
Informal written or oral consultation with affected parties or with advisory committees is the mainstay of rule-making procedure. The principal requirement of the APA is “opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity to present the same orally in any manner.” The Model State Act calls for “opportunity to submit data or views orally or in writing.”
The consultative process may take many forms. The administrator or staff member may talk over possible rules with selected *63parties, by telephone or in person, singly or in groups, by systematically and formally arranged conferences or interviews or in connection with fortuitous contacts occasioned by other business. To frame one set of rules the ICC once conducted 89 informal conferences attended by 1,740 individuals representing 1,286 carriers; to frame another set the Commission sent an interviewer through fifteen states to talk with representatives of motor carriers, members of state commissions, executives of insurance companies, and insurance agents and brokers, and then later conferences were held with committees representing the bus industry, the truck industry, and insurance associations. Sometimes consultation involves collaboration in planning and drafting, as when technical representatives of shipping companies cooperate with technicians of the Customs Bureau in preparing rules concerning construction of vessels. The Emergency Price Control Act provided that “before issuing any regulation or order . . . the Administrator shall, so far as practicable, advise and consult with the representative members of the industry.
When parties are too numerous and individuals may not be representative, some organization often supplies what is needed. For instance, in the FCC “regular contacts are maintained with well-established trade associations and some licensees and carriers. If a matter involving an aviation radio problem is under consideration, for example, the Commission employee invariably communicates with a representative of Aeronautical Radio, Inc., a non-profit cooperative association whose members are the leading air transportation lines. Whenever the Commission is considering the promulgation of regulations dealing with common carriers, it always attempts to obtain the cooperation of State regulatory bodies and the National Association of Railroad and Utilities Commissioners . in most circumstances the Amateur Radio Relay League and the National Association of Broadcasters can effectively represent their membership.” The Attorney General’s Committee admiringly described the rule-making methods of the Board of Governors of the Federal Reserve System: “The practice of the Board ... is especially noteworthy because of the Board’s virtually complete reliance upon conferences rather than hearings as a means of enabling affected parties to participate in the rule-making process. Over a period of time the Federal Reserve System has developed a procedure of consultation and conference. . Outside views come from replies to letters which the Board sends out, and orally at conferences. Usually statements are put in writing and a stenographic report of conferences is made. Frequently, the interchange of data and views is facilitated by mimeographing them, both within and without the staff. The procedure is flexible, thorough, adapted to bringing the knowledge of an expert agency to bear upon its rule-making problems, and fair. . . . ”
The Attorney General’s Committee generalized concerning conferences: “The practice of holding conferences of interested parties in connection with rule-making introduces an element of give-and-take on the part of those present and affords an assurance to those in attendance that their evidence and points of view are known and will be considered. As a procedure for permitting private interests to participate in the rule-making process it is as definite and may be as adequate as a formal hearing. If the interested parties are sufficiently known and are not too numerous or too hostile to discuss the problems presented conferences have evident advantages over hearings in the development of knowledge and understanding.”
The superiority of the conference over the hearing has been convincingly described by a commentator: “Let it not be assumed too easily that hearings are a significant protection against bureaucratic absolutism. To a slothful administrator a hearing precedent to regulation may be a God-given opportunity to avoid work and thought. He need only listen with impassively judicial countenance and then forget all he has heard. It is the conference with its give and take ideas and information, with its possibilities of detailed exploration of minor points and hidden corners which stirs the mind to action. Moreover, there are demonstrably situations where hearings produce little if anything of value.”

1 K. Davis, Administrative Law Treatise § 6.02, pp. 363-365 (1958) (footnotes omitted).

3

. See Sangamon Valley Television Corp. v. United States, 106 U.S.App.D.C. 30, 43, 269 F.2d 211, 224 (1959).

2.2.3.2.2.2 Sierra Club v. Costle, 657 F.2d 298 (D.C. Cir. 1981) 2.2.3.2.2.2 Sierra Club v. Costle, 657 F.2d 298 (D.C. Cir. 1981)

United States Court of Appeals for the District of Columbia Circuit

211 U.S. App. D.C. 336, 657 F.2d 298

Nos. 79-1565, 79-1719, 79-1867, 79-1874, 80-1187, 80-1201, 80-1213 and 80-1338

1981-04-29

 

Before ROBB, WALD and GINSBURG, Circuit Judges.

Opinion for the Court filed by Circuit Judge WALD.

Circuit Judge ROBB concurs in the result.

WALD, Circuit Judge:

This case concerns the extent to which new coal-fired steam generators that produce electricity must control their emissions of sulfur dioxide and particulate matter into the air. In June of 1979 EPA revised the regulations called “new source performance standards” (“NSPS” or “standards”) governing emission control by coal burning power plants. On this appeal we consider challenges to the revised NSPS brought by environmental groups which contend that the standards are too lax and by electric utilities which contend that the standards are too rigorous. Together these petitioners present an array of statutory, substantive, and procedural grounds for overturning the challenged standards. For the reasons stated below, we hold that EPA did not exceed its statutory authority under the Clean Air Act1 in promulgating the NSPS, and we decline to set aside the standards.

  1. INTRODUCTION
  2. The Challenged Standards

The Clean Air Act provides for direct federal regulation of emissions from new stationary sources of air pollution by authorizing EPA to set performance standards for significant sources of air pollution which may be reasonably anticipated to endanger public health or welfare.2 In June 1979 EPA promulgated the NSPS involved in this case.3 The new standards increase pollution controls for new coal-fired electric power plants 4 by tightening restrictions on emissions of sulfur dioxide and particulate matter.5 Sulfur dioxide emissions are limited to a maximum of 1.2 lbs./MBtu6 (or 520 ng/j)7 and a 90 percent reduction of potential uncontrolled sulfur dioxide emissions is required except when emissions to the atmosphere are less than 0.60 lbs./MBtu (or 260 ng/j). When sulfur dioxide emissions are less than 0.60 lbs./MBtu potential emissions must be reduced by no less than 70 percent. In addition, emissions of particulate matter are limited to 0.03 lbs./MBtu (or 13 ng/j).

EPA proposed and ultimately adopted a 1.2 lbs./MBtu ceiling for total sulfur dioxide emissions which is applicable regardless of the percentage of sulfur dioxide reduction attained.396 The 1.2 lbs./MBtu standard is identical to the emission ceiling required by the former standard.397 The achievability of the standard is undisputed.

EDF 398 challenges this part of the final NSPS on procedural grounds, contending that although there may be evidence supporting the 1.2 lbs./MBtu standard, EPA should have and would have adopted a stricter standard if it had not engaged in post-comment period irregularities and succumbed to political pressures.399 EDF raises its procedural objections in the context of its view that a more stringent emission ceiling would have been better than the 1.2 lbs./MBtu limit because it would decrease total emissions significantly without impeding the production or use of coal.400 

  1. EDF’s Procedural Attack

EDF alleges that as a result of an “ex parte blitz” by coal industry advocates conducted after the close of the comment period, EPA backed away from adopting the .55 lbs./MBtu limit, and instead adopted the higher 1.2 lbs./MBtu restriction. EDF asserts that even before the comment period had ended EPA had already narrowed its focus to include only options which provided for the .55 lbs./MBtu ceiling.420 EDF also claims that as of March 9, 1979, the three proposals which EPA had under active consideration all included the more stringent .55 lbs./MBtu ceiling, and the earlier 1.2 lbs./MBtu ceiling had been discarded.421 Whether or not EDF’s scenario is credible, it is true that EPA did circulate a draft NSPS with an emissions ceiling below the 1.2 lbs./MBtu level for interagency comment during February, 1978.422 Following a “leak” of this proposal, EDF says, the so-called “ex parte blitz” began. “Scores” of pro-industry “ex parte” comments were received by EPA in the post-comment period, states EDF, and various meetings with coal industry advocates — including Senator Robert Byrd of West Virginia — took place during that period. These communications, EDF asserts, were unlawful and prejudicial to its position.

In order for this court to assess these claims, we must identify the particular actions and incidents which gave rise to EDF’s complaints.423 Aside from a passing reference to a telephone call from an EPA official to the Chief Executive Officer of NCA,424 EDF’s procedural objections stem from either (1) comments filed after the close of the official comment period, or (2) meetings between EPA officials and various government and private parties interested in the outcome of the final rule, all of which took place after the close of the comment period.

  1. Late Comments

The comment period for the NSPS began on September 19, 1978, and closed on January 15, 1979.425 After January 15, EPA received almost 300 written submissions on the proposed rule from a broad range of interests. EPA accepted these comments and entered them all on its administrative docket. EPA did not, however, officially reopen the comment period, nor did it notify the public through the Federal Register or by other means that it had received and was entering the “late” comments. According to EDF, most of the approximately 300 late comments were received after the “leak” of the new .55 lbs./MBtu proposal. EDF claims that of the 138 late comments from non-government sources, at least 30 were from “representatives of the coal or utility industries,”426 and of the 53 comments from members of Congress, 22 were either forwarded by the Congressmen from industry interests, or else were prepared and submitted by Congressmen as advocates of those interests.427

  1. Meetings

EDF objects to nine different meetings.428 A chronological list and synopsis of the challenged meetings follows:

  1. March 14, 1979 — This was a one and a half hour briefing at the White House for high-level officials from the Department of Energy (DOE), the Council of Economic Advisers (CEA), the White House staff, the Department of Interior, the Council on Environmental Quality (CEQ), the Office of Management and Budget (OMB), and the National Park Service.429The meeting was reported in a May 9, 1979 memorandum from EPA to Senator Muskie’s staff, responding to the Senator’s request for a monthly report of contacts between EPA staff and other federal officials concerning the NSPS.430 A summary of the meeting and the materials distributed were docketed on May 30, 1979. EDF also obtained, after promulgation of the final rule, a copy of the memorandum to Senator Muskie in response to its Freedom of Information Act (“FOIA”) request.431
  2. April 5, 1979 — This is the meeting discussed at length above.432The meeting was attended by representatives of EPA, DOE, NCA, EDF, Congressman Paul Simon’s office, ICF, Inc. (who performed the microanalysis), and Hunton & Williams (who represented the Electric Utilities). The participants were notified in advance of the agenda for the meeting.433 Materials relating to EPA’s and NCA’s presentations during the meeting were distributed and copies were later put into the docket along with detailed minutes of the meeting.434 Followup calls and letters between NCA and EPA came on April 20, 23, and 29, commenting or elaborating upon the April 5 data. All of these followup contacts were recorded in the docket.435

3.April 23, 1979 — This was a 30 — 45 minute meeting held at then Senate Majority Leader Robert Byrd’s request, in his office, attended by EPA Administrator Douglas Costle, Chief Presidential Assistant Stuart Eizenstat, and NCA officials.436 A summary of this meeting was put in the docket on May 1, 1979, and copies of the summary were sent to EDF and to other parties.437 In its denial of the petition for reconsideration, EPA was adamant that no new information was transmitted to EPA at this meeting.438

  1. April 27, 1979 — This was a briefing on dry scrubbing technology conducted by EPA for representatives of the Office of Science and Technology Policy, the Council on Wage and Price Stability, DOE, the President’s domestic policy staff, OMB, and various offices within EPA.439A description of this briefing and copies of the material distributed were docketed on May 1, 1979.440
  2. April 30, 1979 — At 10:00 a. m., a one hour White House briefing was held for the President, the White House staff, and high ranking members of the Executive Branch “concerning the issues and options presented by the rulemaking.”441This meeting was noted on an EPA official’s personal calendar which EDF obtained after promulgation in response to its FOIA request,442 but was never noted in the rulemaking docket.
  3. April 30, 1979 — At 2:30 p. m., a technical briefing on dry scrubbing technology at the White House was conducted by EPA for the White House staff. A short memorandum describing this briefing was docketed on May 30, 1979.443
  4. May 1, 1979 — Another White House briefing was held on the subject of FGD technology.444A description of the meeting and materials distributed were docketed on May 30, 1979.445
  5. May 1, 1979 — EPA conducted a one hour briefing of staff members of the Senate Committee on Environmental and Public Works concerning EPA’s analysis of the effect of alternative emission ceilings on coal reserves. The briefing was “substantially the same as the briefing given to Senator Byrd on May 2, 1980.” 446No persons other than Committee staff members and EPA officials attended the briefing. This meeting, like the one at 10:00 a. m. bn April 30, was never entered on the rulemaking docket but was listed on an EPA official’s calendar obtained by EDF in response to its FOIA request. This EPA official has since stated that it was an oversight not to have a memorandum of this briefing prepared for the docket.447

9.May 2, 1979 — This was a brief meeting between Senator Byrd, EPA, DOE and NCA officials held ostensibly for Senator Byrd to hear EPA’s comments on the NCA data.448 A 49 word, not very informative, memorandum describing the meeting was entered on the docket on June 1, 1979.449

On June 16, 1980, responding to motions filed by EDF,450 this court ordered EPA to file affidavits providing additional information regarding five of these nine meetings (March 14, April 23, April 27, April 30, and May 2, 1979).451 After EPA complied with the order, EDF argued that the other meetings held on April 30 and May 1 were still undocumented,452 whereupon EPA voluntarily filed an affidavit describing them.453

EDF believes that the communications just outlined, when taken as a whole, were so extensive and had such a serious impact on the NSPS rulemaking, that they violated EDF’s rights to due process in the proceeding, and that these “ex parte” contacts were procedural errors of such magnitude that this court must reverse. EDF does not specify which particular features in each of the above-enumerated communications violated due process or constituted errors under the statute; indeed, EDF nowhere lists the communications in a form designed to clarify why any particular communication was unlawful. Instead, EDF labels all post-comment communications with EPA— from whatever source and in whatever form — as “ex parte,” and claims that “this court has repeatedly stated that ex parte contacts of substance violate due process.” 454

At the outset, we decline to begin our task of reviewing EPA’s procedures by labeling all post-comment communications with the agency as “ex parte.” Such an approach essentially begs the question whether these particular communications in an informal rulemaking proceeding were unlawful.455 Instead of beginning with a conclusion that these communications were “ex parte,” we must evaluate the various communications in terms of their timing, source, mode, content, and the extent of their disclosure on the docket, in order to discover whether any of them violated the procedural requirements of the Clean Air Act, or of due process.

  1. Standard for Judicial Review of EPA Procedures

This court’s scope of review is delimited by the special procedural provisions of the Clean Air Act,456 which declare that we may reverse the Administrator’s decision for procedural error only if (i) his failure to observe procedural requirements was arbitrary and capricious, (ii) an objection was raised during the comment period, or the grounds for such objection arose only after the comment period and the objection is “of central relevance to the outcome of the rule,” and (iii) “the errors were so serious and related to matters of such central relevance to the rule that there is a substantial likelihood that the rule would have been significantly changed if such errors had not been made.” 457 The essential message of so rigorous a standard is that Congress was concerned that EPA’s rulemaking not be casually overturned for procedural reasons, and we of course must respect that judgment.

Our authority to reverse informal administrative rulemaking for procedural reasons is also informed by Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council, Inc. 458 In its unanimous opinion, the Supreme Court unambiguously cautioned this court against imposing its own notions of proper procedures upon an administrative agency entrusted with substantive functions by Congress. The Court declared that so long as an agency abided by the minimum procedural requirements laid down by statute, this court was not free to impose additional procedural rights if the agency did not choose to grant them.459 Except in “extremely rare” circumstances, the Court stated, there is no justification for a reviewing court to overturn agency action because of the failure to employ procedures beyond those required by Congress.460

[W]hen there is a contemporaneous explanation of the agency decision, the validity of that action must “stand or fall on the propriety of that finding, judged, of course, by the appropriate standard of review. If that finding is not sustainable on the administrative record made, then the . .. decision must be vacated and the matter remanded ... for further consideration.” .... The [reviewing] court should engage in this kind of review and not stray beyond the judicial province to explore the procedural format or to impose upon the agency its own notion of which procedures are “best” and most likely to further some vague, undefined public good.461

Bearing this caveat in mind, we now set out the procedural requirements which Congress mandated for this rulemaking. Since EDF does not question — nor do we doubt— the constitutional sufficiency of the procedures mandated by the Clean Air Act, we shall reverse only (1) if the statutory requirements, or the procedures reasonably inferable from them or from basic notions of constitutional due process,462 were breached by EPA, and (2) where such breaches under the statute were “so serious and related to matters of such central relevance to the rule that there is a substantial likelihood that the rule would have been significantly changed if such errors had not been made.”463

  1. Statutory Provisions Concerning Procedure

The procedural provisions of the Clean Air Act specifying the creation and content of the administrative rulemaking record are contained in section 307.464 Responding in part to criticism that there was no formalized record which courts could rely upon when reviewing EPA rules,465 Congress enacted new procedures which represented “[b]y and large ... a legislative adoption of the suggestions for a rulemaking record set forth in a law review article dealing with EPA. (Pedersen, ‘Formal Records and Informal Rulemaking,’ 85 Yale L.J. 38 (1975)).” 466 The Pedersen article argued for rules which would provide a reviewing court with a “procedural record” which it could rely upon when passing on agency rules. A “procedural record” is, according to Pedersen, a record defined by formal norms explicitly governing the inclusion and exclusion of data and which becomes a record “without further action.” “No inquiry [is] necessary [as] to whether the ‘agency’ actually had ‘considered’ the documents in the record, or whether they passed some test of relevance, anymore than is generally done in the course of appellate review of trial court' decisions.” 467 In this sense the Pedersen proposal for a “procedural record” in informal rulemaking resembles the records assembled in trial courts and agency formal adjudications, where record material is defined simply and exclusively as “material which has been aecepted under a given obligatory set of procedures,”468 without regard to whether it was actually considered by the decisionmaker.

 

Following Pedersen’s recommendations, the 1977 Amendments required the agency to establish a “rulemaking docket” for each proposed rule which would form the basis of the record for judicial review.473 The docket must contain, inter alia,474 (1) “notice of the proposed rulemaking . . . accompanied by a statement of its basis and purpose,” and a specification of the public comment period; (2) “all written comments and documentary information on the proposed rule received from any person . . . during the comment period[;] [t]he transcript of public hearings, if any[;] and [a]ll documents . . . which become available after the proposed rule has been published and which the Administrator determines are of central relevance to the rulemaking. . . .”; (3) drafts of proposed rules submitted for interagency review, and all documents accompanying them and responding to them; and (4) the promulgated rule and the various accompanying agency documents which explain and justify it.

In contrast to other recent statutes,475 there is no mention of any restrictions upon “ex parte” contacts. However, the statute apparently did envision that participants would normally submit comments, documentary material, and oral presentations during a prescribed comment period. Only two provisions in the statute touch upon the post-comment period, one of which, as noted immediately supra, states that “[a]ll documents which become available after the proposed rule has been published and which the Administrator determines are of central relevance to the rulemaking shall be placed in the docket as soon as possible after their availability.” 476 But since all the post-comment period written submissions which EDF complains of were in fact entered upon the docket,477 EDF cannot complain that this provision has been violated.478

The only other provision treating post-comment period procedures states that

Only an objection to a rule or procedure which was raised with reasonable specificity during the period for public comment (including any public hearing) may be raised during judicial review. If the person raising an objection can demonstrate to the Administrator that it was impracticable to raise such objection within such time or if the grounds for such objection arose after the period for public comment (but within the time specified for judicial review) and if such objection is of central relevance to the outcome of the rule, the Administrator shall convene a proceeding for reconsideration of the rule and provide the same procedural rights as would have been afforded had the information been available at the time the rule was proposed. If the Administrator refuses to convene such a proceeding, such person may seek review of such refusal in the United States court of appeals for the appropriate circuit. . . .479

In this case EPA refused to convene a reconsideration proceeding, stating

The Administrator does not believe that the procedures cited by EDF were improper. Moreover, as discussed below, any arguable errors were not of central relevance to the outcome of the rule, and therefore do not constitute grounds for granting EDF’s petition to reconsider.480

Of course, if this assessment by EPA of EDF’s petition for reconsideration were wrong, it would constitute reversible error. But since this court can reverse an agency on procedural grounds only if it finds a failure to observe procedures “required by law,”481 we must first decide whether the procedures followed by EPA between January 15 and June 1, 1979 were unlawful. Only if we so find would we then face the second issue whether the unlawful errors were “of such central relevance to the rule that there is a substantial likelihood that the rule would have been significantly changed if such errors had not been made.” 482 We now hold that EPA’s procedures during the post-comment period were lawful, and therefore do not face the issue whether any alleged errors were of “central relevance” to the outcome.

  1. Validity of EPA’s Procedures During the Post-Comment Period

The post-comment period communications about which EDF complains vary widely in their content and mode; some are written documents or letters, others are oral conversations and briefings, while still others are meetings where alleged political arm-twisting took place. For analytical purposes we have grouped the communications into categories and shall discuss each of them separately. As a general matter, however, we note at the outset that nothing in the statute prohibits EPA from admitting all post-comment communications into the record; nothing expressly requires it, either.483 Most likely the drafters envisioned promulgation of a rule soon after the close of the public comment period, and did not envision a months-long hiatus where continued outside communications with the agency would continue unabated. We must therefore attempt to glean the law for this case by inference from the procedural framework provided in the statute.

  1. Written Comments Submitted During Post-Comment Period

Although no express authority to admit post-comment documents exists, the statute does provide that:

All documents which become available after the proposed rule has been published and which the Administrator determines are of central relevance to the rulemaking shall be placed in the docket as soon as possible after their availability.484

This provision, in contrast to others in the same subparagraph, is not limited to the comment period. Apparently it allows EPA not only to put documents into the record after the comment period is over,485 but also to define which documents are “of central relevance” so as to require that they be placed in the docket. The principal purpose of the drafters was to define in advance, for the benefit of reviewing courts, the record upon which EPA would rely in defending the rule it finally adopted; it was not their purpose to guarantee that every piece of paper or phone call related to the rule which was received by EPA during the post-comment period be included in the docket. EPA thus has authority to place post-comment documents into the docket, but it need not do so in all instances.

Such a reading of the statute accords well with the realities of Washington administrative policymaking, where rumors, leaks, and overreactions by concerned groups abound, particularly as the time for promulgation draws near. In a proceeding such as this, one of vital concern to so many interests — industry, environmental groups, as well as Congress and the Administration — it would be unrealistic to think there would not naturally be attempts on all sides to stay in contact with EPA right up to the moment the final rule is promulgated.486 The drafters of the 1977 Amendments were practical people, well versed in such activity, and we decline now to infer from their silence that they intended to prohibit the lodging of documents with the agency at any time prior to promulgation. Common sense, after all, must play a part in our interpretation of these statutory procedures.

EPA of course could have extended, or reopened, the comment period after January 15 in order formally to accommodate the flood of new documents; it has done so in other cases.487 But under the circumstances of this case, we do not find that it was necessary for EPA to reopen the formal comment period. In the first place, the comment period lasted over four months, and although the length of the comment period was not specified in the 1977 Amendments, the statute did put a premium on speedy decisionmaking by setting a one year deadline from the Amendments’ enactment to the rules’ promulgation.488 EPA failed to meet that deadline, and subsequently entered into a consent decree 489 where it promised to adopt the final rules by March 19, 1979, over seven months late. EPA also failed to meet that deadline, and it was once more extended until June 1, 1979 upon agreement of the parties pursuant to court order.490 Reopening the formal comment period in the late spring of 1979 would have confronted the agency with a possible violation of the court order, and would further have frustrated the Congressional intent that these rules be promulgated expeditiously.

We therefore conclude that it was not improper in this case for EPA to docket and consider the post-comment documents submitted to it. Nor was it improper for EPA to decline to reopen the formal comment period and delay promulgation, since there was no proof that evidence crucial to the rule’s validity was entered too late for any effective public comment.

  1. Meetings Held With Individuals Outside EPA

The statute does not explicitly treat the issue of post-comment period meetings with individuals outside EPA. Oral face-to-face discussions are not prohibited anywhere, anytime, in the Act. The absence of such prohibition may have arisen from the nature of the informal rulemaking procedures Congress had in mind. Where agency action resembles judicial action, where it involves formal rulemaking, adjudication, or quasi-adjudication among “conflicting private claims to a valuable privilege,” 499 the insulation of the decisionmaker from ex parte contacts is justified by basic notions of due process to the parties involved.500 But where agency action involves informal rulemaking of a policymaking sort, the concept of ex parte contacts is of more questionable utility.501

Under our system of government,502 the very legitimacy of general policymaking performed by unelected administrators depends in no small part upon the openness, accessibility, and amenability of these officials to the needs and ideas of the public from whom their ultimate authority derives, and upon whom their commands must fall. As judges we are insulated from these pressures because of the nature of the judicial process in which we participate; but we must refrain from the easy temptation to look askance at all face-to-face lobbying efforts, regardless of the forum in which they occur, merely because we see them as inappropriate in the judicial context.503 Furthermore, the importance to effective regulation of continuing contact with a regulated industry, other affected groups, and the public cannot be underestimated. Informal contacts may enable the agency to win needed support for its program, reduce future enforcement requirements by helping those regulated to anticipate and shape their plans for the future, and spur the provision of information which the agency needs.504 The possibility of course exists that in permitting ex parte communications with rulemakers we create the danger of “one administrative record for the public and this court and another for the Commission.” 505 Under the Clean Air Act procedures, however, “[t]he promulgated rule may not be based (in part or whole) on any information or data which has not been placed in the docket. ...”506 Thus EPA must justify its rulemaking solely on the basis of the record it compiles and makes public.

Regardless of this court’s views on the need to restrict all post-comment contacts in the informal rulemaking context, however, it is clear to us that Congress has decided not to do so in the statute which controls this case. As we have previously noted:

Where Congress wanted to prohibit ex parte contacts it clearly did so. Thus APA § 5(c) forbids ex parte contacts when an “adjudication” is underway, but even that prohibition does not apply to “the agency or a member or members of the body comprising the agency.” 5 U.S.C. § 554(d)(0) (1970). ... If Congress wanted to forbid or limit ex parte contact in every case of informal rule-making, it certainly had a perfect opportunity of doing so when it enacted the Government in the Sunshine Act, Pub.L. No. 94-409, 90 Stat. 1241 (Sept. 13, 1976).... That it did not extend the ex parte contact provisions of the amended section 557 to section 553 — even though such an extension was urged upon it during the hearing — is a sound indication that Congress still does riot favor a per se prohibition or even a “logging” requirement in all such proceedings. 507

Lacking a statutory basis for its position, EDF would have us extend our decision in Home Box Office, Inc. v. FCC508 to cover all meetings with individuals outside EPA during the post-comment period. Later decisions of this court, however, have declined to apply Home Box Office to informal rule-making of the general policymaking sort involved here,509 and there is no precedent for applying it to the procedures found in the Clean Air Act Amendments of 1977.

It still can be argued, however, that if oral communications510 are to be freely permitted after the close of the comment period, then at least some adequate summary of them must be made in order to preserve the integrity of the rulemaking docket, which under the statute must be the sole repository of material upon which EPA intends to rely.511 The statute does not require the docketing of all post-comment period conversations and meetings,512 but we believe that a fair inference can be drawn that in some instances such docketing may be needed in order to give practical effect to section 307(d)(4)(B)(i), which provides that all documents “of central relevance to the rulemaking” shall be placed in the docket as soon as possible after their availability. This is so because unless oral communications of central relevance to the rulemaking are also docketed in some fashion or other, information central to the justification of the rule could be obtained without ever appearing on the docket, simply by communicating it by voice rather than by pen, thereby frustrating the command of section 307 that the final rule not be “based (in part or whole) on any information or data which has not been placed in the docket. ...” 513

EDF is understandably wary of a rule which permits the agency to decide for itself when oral communications are of such central relevance that a docket entry for them is required. Yet the statute itself vests EPA with discretion to decide whether “documents” are of central relevance and therefore must be placed in the docket; surely EPA can be given no less discretion in docketing oral communications, concerning which the statute has no explicit requirements whatsoever. Furthermore, this court has already recognized that the relative significance of various communications to the outcome of the rule is a factor in determining whether their disclosure is required.514 A judicially imposed blanket requirement that all post-comment period oral communications be docketed would, on the other hand, contravene our limited powers of review,515 would stifle desirable experimentation in the area by Congress and the agencies,516 and is unnecessary for achieving the goal of an established, procedure-defined docket, viz., to enable reviewing courts to fully evaluate the stated justification given by the agency for its final rule.517

[100] Turning to the particular oral communications in this case, we find that only two of the nine contested meetings were undocketed by EPA.518 The agency has maintained that, as to the May 1 meeting where Senate staff people were briefed on EPA’s analysis concerning the impact of alternative emissions ceilings upon coal reserves,.its failure to place a summary of the briefing in the docket was an oversight. We find no evidence that this oversight was anything but an honest inadvertence; furthermore, a briefing of this sort by EPA which simply provides background information about an upcoming rule is not the type of oral communication which would require a docket entry under the statute.

The other undocketed meeting occurred at the White House and involved the President and his White House staff. Because this meeting involves considerations unique to intra-executive meetings, it is discussed in the section immediately infra.

(a) Intra-Executive Branch Meetings

We have already held that a blanket prohibition against meetings during the posicomment period with individuals outside EPA is unwarranted, and this perforce applies to meetings with White House officials. We have not yet addressed, however, the issue whether such oral communications with White House staff, or the President himself, must be docketed on the rulemaking record, and we now turn to that issue. The facts, as noted earlier, present us with a single undocketed meeting held on April 30, 1979, at 10:00 a. m., attended by the President, White House staff, other high ranking members of the Executive Branch, as well as EPA officials, and which concerned the issues and options presented by the rulemaking.

We note initially that section 307 makes specific provision for including in the rulemaking docket the “written comments” of other executive agencies along with accompanying documents on any proposed draft rules circulated in advance of the rulemaking proceeding. Drafts of the final rule submitted to an executive review process prior to promulgation, as well as all “written comments,” “documents,” and “written responses” resulting from such interagency review process, are also to be put in the docket prior to promulgation.519 This specific requirement does not mention informal meetings or conversations concerning the rule which are not part of the initial or final review processes, nor does it refer to oral comments of any sort. Yet it is hard to believe Congress was unaware that intra-executive meetings and oral comments would occur throughout the rulemaking process. We assume, therefore, that unless expressly forbidden by Congress, such intra-executive contacts 520 may take place, both during and after the public comment period; the only real issue is whether they must be noted and summarized in the docket.

The court recognizes the basic need of the President and his White House staff to monitor the consistency of executive agency regulations with Administration policy. He and his White House advisers surely must be briefed fully and frequently about rules in the making, and their contributions to policymaking considered. The executive power under our Constitution, after all, is not shared — it rests exclusively with the President. The idea of a “plural executive,” or a President with a council of state, was considered and rejected by the Constitutional Convention.521 Instead the Founders chose to risk the potential for tyranny inherent in placing power in one person, in order to gain the advantages of accountability fixed on a single source. To ensure the President’s control and supervision over the Executive Branch, the Constitution — and its judicial gloss — vests him with the powers of appointment and removal, the power to demand written opinions from executive officers, and the right to invoke executive privilege to protect consultative privacy.522 In the particular case of EPA, Presidential authority is clear since it has never been considered an “independent agency,” but always part of the Executive Branch.523

The authority of the President to control and supervise executive policymaking is derived from the Constitution; 524 the desirability of such control is demonstrable from the practical realities of administrative rulemaking.525 Regulations such as those involved here demand a careful weighing of cost, environmental, and energy considerations.526 They also have broad implications for national economic policy. Our form of government simply could not function effectively or rationally if key executive policymakers were isolated from each other and from the Chief Executive. Single mission agencies do not always have the answers to complex regulatory problems. An overworked administrator exposed on a 24-hour basis to a dedicated but zealous staff needs to know the arguments and ideas of policymakers in other agencies as well as in the White House.

We recognize, however, that there may be instances where the docketing of conversations between the President or his staff and other Executive Branch officers or rulemakers may be necessary to ensure due process. This may be true, for example, where such conversations directly concern the outcome of adjudications or quasi-adjudicatory proceedings; there is no inherent executive power to control the rights of individuals in such settings.527 Docketing may also be necessary in some circumstances where a statute like this one specifically requires that essential “information or data” upon which a rule is based be docketed.528 But in the absence of any further Congressional requirements, we hold that it was not unlawful in this case for EPA not to docket a face-to-face policy session involving the President and EPA officials during the post-comment period, since EPA makes no effort to base the rule on any “information or data” arising from that meeting.529 Where the President himself is directly involved in oral communications with Executive Branch officials, Artiele II considerations — combined with the strictures of Vermont Yankee — require that courts tread with extraordinary caution in mandating disclosure beyond that already required by statute.

The purposes of full-record review which underlie the need for disclosing ex parte conversations in some settings do not require that courts know the details of every White House contact, including a Presidential one, in this informal rulemaking setting. After all, any rule issued here with or without White House assistance must have the requisite factual support in the rulemaking record, and under this particular statute the Administrator may not base the rule in whole or in part on any “information or data” 530 which is not in the record, no matter what the source. The courts will monitor all this, but they need not be omniscient to perform their role effectively. Of course, it is always possible that undisclosed Presidential prodding may direct an outcome that is factually based on the record, but different from the outcome that would have obtained in the absence of Presidential involvement. In such a case, it would be true that the political process did affect the outcome in a way the courts could not police. But we do not believe that Congress intended that the courts convert informal rulemaking into a rarified technocratic process, unaffected by political considerations or the presence of Presidential power.531 In sum, we find that the existence of intra-Executive Branch meetings during the post-comment period, and the failure to docket one such meeting involving the President, violated neither the procedures mandated by the Clean Air Act nor due process.

(b) Meetings Involving Alleged Congressional Pressure

Finally, EDF challenges the rulemaking on the basis of alleged Congressional pressure, citing principally two meetings with Senator Byrd.532 EDF asserts that under the controlling case law the political interference demonstrated in this case represents a separate and independent ground for invalidating this rulemaking. But among the cases EDF cites in support of its position,533 only D. C. Federation of Civil Associations v. Volpe534 seems relevant to the facts here.

In D. C. Federation the Secretary of Transportation, pursuant to applicable federal statutes, made certain safety and environmental findings in designating a proposed bridge as part of the interstate highway system. Civic associations sought to have these determinations set aside for their failure to meet certain statutory standards, and because of possible tainting by reason of improper Congressional influence. Such influence chiefly included public statements by the Chairman of the House Subcommittee on the District of Columbia, Representative Natcher, indicating in no uncertain terms that money earmarked for the construction of the District of Columbia’s subway system would be withheld unless the Secretary approved the bridge. While a majority of this court could not decide whether Representative Natcher’s extraneous pressure had in fact influenced the Secretary’s decision, a majority did agree on the controlling principle of law: “that the decision [of the Secretary] would be invalid if based in whole or in part on the pressures emanating from Representative Natcher.” 535 In remanding to the Secretary for new determinations concerning the bridge, however, the court went out of its way to “emphasize that we have not found — nor, for that matter, have we sought — any suggestion of impropriety or illegality in the actions of Representative Natcher and others who strongly advocate the bridge.” 536 The court remanded simply so that the Secretary could make this decision strictly and solely on the basis of considerations made relevant by Congress in the applicable statute.537

  1. C. Federation thus requires that two conditions be met before an administrative rulemaking may be overturned simply on the grounds of Congressional pressure. First, the content of the pressure upon the Secretary is designed to force him to decide upon factors not made relevant by Congress in the applicable statute. Representative Natcher’s threats were of precisely that character, since deciding to approve the bridge in order to free the “hostage” mass transit appropriation was not among the decisionmaking factors Congress had in mind when it enacted the highway approval provisions of Title 23 of the United States Code. Second, the Secretary’s determination must be affected by those extraneous considerations.538

In the case before us, there is no persuasive evidence that either criterion is satisfied. Senator Byrd requested a meeting in order to express “strongly” his already well-known views that the SO2 standards’ impact on coal reserves was a matter of concern to him. EPA initiated a second responsive meeting to report its reaction to the reserve data submitted by the NCA. In neither meeting is there any allegation that EPA made any commitments to Senator Byrd. The meetings did underscore Senator Byrd’s deep concerns for EPA, but there is no evidence he attempted actively to use “extraneous” pressures to further his position. Americans rightly expect their elected representatives to voice their grievances and preferences concerning the administration of our laws. We believe it entirely proper for Congressional representatives vigorously to represent the interests of their constituents before administrative agencies engaged in informal, general policy rulemaking, so long as individual Congressmen do not frustrate the intent of Congress as a whole as expressed in statute, nor undermine applicable rules of procedure. Where Congressmen keep their comments focused on the substance of the proposed rule — and we have no substantial evidence to cause us to believe Senator Byrd did not do so here 539 — administrative agencíes are expected to balance Congressional pressure with the pressures emanating from all other sources. To hold otherwise would deprive the agencies of legitimate sources of information and call into question the validity of nearly every controversial rule-making.

* * * * * *

In sum, we conclude that EPA’s adoption of the 1.2 lbs./MBtu emissions ceiling was free from procedural error. The post-comment period contacts here violated neither the statute nor the integrity of the proceeding. We also hold that it was not improper for the agency to docket and consider documents submitted to it during the post-comment period, since no document vital to EPA’s support for the rule was submitted so late as to preclude any effective public comment. Hence we find no reason under section 307 to overturn the 1.2 lbs./MBtu standard. The field of course is open for Congress or the agency to formulate further procedural rules in this area.

 

Affirmed.

 

2.2.3.2.2.3 Association of National Advertisers, Inc. v. Federal Trade Commission 2.2.3.2.2.3 Association of National Advertisers, Inc. v. Federal Trade Commission

ASSOCIATION OF NATIONAL ADVERTISERS, INC., et al. v. FEDERAL TRADE COMMISSION, et al., Appellants.

No. 79-1117.

United States Court of Appeals, District of Columbia Circuit.

Argued May 1, 1979.

Decided Dec. 27, 1979.

Certiorari Denied June 16, 1980.

See 100 S.Ct. 3011.

*1153Neil H. Koslowe, Sp. Litigation Counsel, Dept, of Justice, Washington, D. C., with whom Barbara Allen Babcock, Asst. Atty. Gen., Earl J. Silbert, U. S. Atty., Robert E. Kopp, Atty., Dept, of Justice, Michael N. Sohn, Gen. Counsel. Gerald P. Norton, Deputy Gen. Counsel, and David M. Fitzgerald, Atty., Federal Trade Commission, Washington, D.C., were on the brief, for appellants.

Frederick P. Furth, San Francisco, Cal., with whom Samuel H. Seymour, Washington, D.C., was on the brief, for appellee Kellogg Co.

Gilbert H. Weil, New York City, counsel for appellee Association of Nat. Advertisers, Inc., with whom William W. Rogal, Washington, D.C., counsel for appellee American Advertising Federation, and Walter L. Stratton, New York City, counsel for appellee American Association of Advertising Agencies, Inc., were on the brief, argued on behalf of appellees Association of National Advertisers, Inc., et al.

Mark L. Evans, Gen. Counsel, I.C.C., Jerome Nelson, Associate Gen. Counsel, I.C.C., Andrew Krulwich, Gen. Counsel, Consumer Product Safety Commission, and Robert R. Bruce, Gen. Counsel, Federal Communications Commission, Washington, D.C., were on the brief for amici curiae Independent Regulatory Agencies, urging that the judgment of the District Court on appeal herein be reversed in light of the alleged chilling effect that decision can have upon agency rulemaking proceedings.

*1154Daniel J. Popeo and Joel D. Joseph, Washington, D.C., were on the brief for amicus curiae Washington Legal Foundation, urging affirmance.

David B. Lytle, Washington, D.C., was on the brief for amicus curiae Air Transport Association of America, urging that this court reject the recommendations proffered by the several Independent Regulatory Agencies as amici curiae herein.

Hope B. Eastman, Charles Morgan, Jr., and Paul F. Colarulli, Washington, D.C.,were on the brief for amicus curiae Grocery Manufacturers of America, Inc., urging affirmance.

Christopher S. Bond, Kansas City, Mo., and Charles A. Blackmar, Jefferson City, Mo., were on the brief for amicus curiae Great Plains Legal Foundation, urging affirmance.

Morton Hollander, Atty., Dept, of Justice, and Ann S. DuRoss, Asst. U. S. Atty., Washington, D. C., also entered appearances for appellants.

Earl C. Dudley, Jr., Washington, D. C., also entered an appearance for appellee Kellogg Co.

Joel J. McGrath, Jr., Washington, D. C., also entered an appearance for appellee American Ass’n of Advertising Agencies.

Before TAMM, LEVENTHAL,* and MacKINNON, Circuit Judges.

Opinion for the court filed by Circuit Judge TAMM.

Concurring opinion filed by Circuit Judge LEVENTHAL.

Opinion dissenting in part and concurring in part filed by Circuit Judge MaeKINNON.

*

Judge Leventhal died after completing his opinion in this case but before it was sent to the court’s printer for publication.

TAMM, Circuit Judge:

Plaintiffs, appellees here, brought an action in the United States District Court for the District of Columbia to prohibit Michael Pertschuk, Chairman of the Federal Trade Commission (Commission), from participating in a pending rulemaking proceeding concerning children’s advertising. The district court, citing this court’s decision in Cinderella Career & Finishing Schools, Inc. v. FTC, 138 U.S.App.D.C. 152, 425 F.2d 583 (D.C.Cir.1970), found that Chairman Pertschuk had prejudged issues involved in the rulemaking and ordered him disqualified. We hold that the Cinderella standard is not applicable to the Commission’s rulemaking proceeding. An agency member may be disqualified from such a proceeding only when there is a clear and convincing showing that he has an unalterably closed mind on matters critical to the disposition of the rulemaking. Because we find that the appellees have failed to demonstrate the requisite prejudgment, the order of the district court is reversed.

I

On April 27, 1978, the Commission issued a Notice of Proposed Rulemaking that suggested restrictions regarding television advertising directed toward children.1 The decision to commence rulemaking under section 18 of the Federal Trade Commission (FTC) Act2 was accompanied by a state*1155ment setting forth “with particularity the reason for the proposed rule.” 3 The Commission explained that it had decided to propose a rule limiting children’s advertising after consideration of a staff report that discussed

facts which suggest that the televised advertising of any product directed to young children who are too young to understand the selling purpose of, or otherwise comprehend or evaluate, commercials may be unfair and deceptive within the meaning of Section 5 of the Federal Trade Commission Act, requiring appropriate remedy. The Report also discloses facts which suggest that the current televised advertising of sugared products directed to older children may be unfair and deceptive, again requiring appropriate remedy.

43 Fed.Reg. 17,967, 17,969 (1978) (footnotes omitted).4 The Commission invited interested persons to comment upon any issue raised by the staff proposal.5

On May 8, 1978, the Association of National Advertisers, Inc. (ANA), the American Association of Advertising Agencies (AAAA), the American Advertising Federation (AAF), and the Toy Manufacturers of America, Inc. (TMA) petitioned Chairman Pertschuk to recuse himself from participation in the children’s advertising inquiry. The petition charged that Pertschuk had made public statements concerning regulation of children’s advertising that demonstrated prejudgment of specific factual issues sufficient to preclude his ability to serve as an impartial arbiter. See Appendix (A.) at 11, 15. The charges were based on a speech Pertschuk delivered to the Action for Children’s Television (ACT) Research Conference in November 1977, on several newspaper and magazine articles quoting Chairman Pertschuk’s views on children’s television, on the transcript of a televised interview, and on a press release issued by the Commission during the summer of 1977.6

On July 13, 1978, Chairman Pertschuk declined to recuse himself from the proceeding. Pertschuk stated his belief that the disqualification standard appropriate for administrative adjudications did not apply to administrative rulemaking, id. at 57-58, and that, even if adjudicative criteria were relevant, his remarks did not warrant disqualification because they did not concern the petitioners in particular; rather, they addressed the “issue of advertising to children and the policy questions raised by it,” id. at 64 (emphasis in original). Five days later, the Commission, without Pertschuk participating, also determined that Pertschuk need not be disqualified. Id. at 65.

In August 1978, ANA, AAAA, AAF, and TMA petitioned the district court to declare that Chairman Pertschuk should be disqualified from participating in the children’s television proceeding. ANA, AAAA, AAF, and TMA also sought preliminary and permanent injunctions barring Pertschuk’s participation and an order requiring the remaining Commissioners to reconsider all matters previously decided in the inquiry. The plaintiffs introduced copies of three letters, sent by Chairman Pertschuk on the day after he delivered the ACT speech, as additional evidence of his alleged prejudgment. The letters accompanied a copy of the speech.

On September 8, 1978, the Kellogg Company (Kellogg), a food manufacturer that *1156advertises on television programs regularly viewed by children, moved to intervene as a plaintiff. The district court granted the motion on October 4,1978. Two days later, Kellogg introduced as evidence in support of the motion for a preliminary injunction a copy of a letter sent by Chairman Pertschuk on November 17, 1977, to Donald Kennedy, Commissioner of the Food and Drug Administration.

On November 3, 1978, the district court ruled on cross-motions for summary judgment. The court, relying on Cinderella, found that Chairman Pertschuk “has prejudged and has given the appearance of having prejudged issues of fact involved in a fair determination of the Children’s Advertising rulemaking proceeding.” Accordingly, the .court granted the plaintiffs’ motion for summary judgment and ordered Pertschuk enjoined from further participation. Id. at 110. This appeal followed.7

II

Before we consider the merits of the district court’s decision, we pause at a procedural way station. The Commission asserts that the district court erred in considering the disqualification issue before the rulemaking proceeding had ended. As a general matter, of course, the exhaustion doctrine provides that challenges to agency action should not be heard until relevant administrative proceedings have been concluded. McKart v. United States, 395 U.S. 185, 194-95, 89 S.Ct. 1657, 23 L.Ed.2d 194 (1969). This permits an administrative agency to develop a factual record, to apply its expertise to that record, and to avoid piecemeal appeals. Id. at 193-94, 89 S.Ct. 1657.

Application of the exhaustion doctrine, however, is not inflexible. In rare circumstances, this court has considered extraordinary prejudgment claims prior to final agency action. See Amos Treat & Co. v. SEC, 113 U.S.App.D.C. 100, 306 F.2d 260 (D.C.Cir.1962). See also Fitzgerald v. Hampton, 152 U.S.App.D.C. 1, 14, 467 F.2d 755, 768 (D.C.Cir.1972); Sterling Drug, Inc. v. FTC, 146 U.S.App.D.C. 237, 249-250, 450 F.2d 698, 710-11 (D.C.Cir.1971). The district court agreed to consider the present case prior to exhaustion of the administrative process on the basis of these decisions.

The exception to the exhaustion doctrine upon which the district court relied is extremely narrow. In SEC v. R. A. Holman & Co., 116 U.S.App.D.C. 279, 281-282, 323 F.2d 284, 286-87 (D.C.Cir.1963), for example, this court refused to review a disqualification contention when a commissioner whose impartiality was challenged denied that he had participated in earlier administrative proceedings. This court noted that resolution of the disqualification issue would necessitate prolonged evidentiary hearings and, therefore, we concluded that review of the due process claim should follow final agency action. Similarly, in Associated Press v. FCC, 145 U.S.App.D.C. 172, 183-184, 448 F.2d 1095, 1106-07 (D.C.Cir.1971), this court refused to review, prior to final administrative action, an insubstantial disqualification claim that involved conflicting factual contentions.

Although the doctrine that permits review of a disqualification claim prior to final agency action is restrictive, the present case falls within its bounds. As the Supreme Court has emphasized, application of the exhaustion doctrine “requires an understanding of its purposes and of the particular administrative scheme involved.” McKart v. United States, 395 U.S. at 193, 89 S.Ct. at 1662. For the following reasons, we find that immediate review of the prejudgment claim will not thwart the purposes of exhaustion.

First, the challenge to Chairman Pertschuk’s further participation involves no disputed factual issues that demand the creation of a better administrative record. The agency has had an adequate opportunity to explain why Chairman Pertschuk need *1157not be recused.8 Second, the issue involved in this case — the prejudgment standard required by due process for section 18 rule-making — is a pure question of law. The Commission can bring no particular expertise to bear on its determination. Consideration of this question of first impression will not necessarily permit future piecemeal attacks on administrative processes.9 Under the particular circumstances of this case, we therefore conclude that the appellees’ claim may be heard.

Judge Leventhal, in his concurring opinion, voices some concern over the jurisdiction of the district court to entertain this action. In their complaints, however, the plaintiffs alleged a violation of their procedural rights under the Constitution and the Administrative Procedure Act (APA), 5 U.S.C. §§ 551-706 (1976). Thus, the district court clearly had jurisdiction — i. e., power— to resolve the controversy under 28 U.S.C. § 1331(a) (1976) (cases arising under the Constitution and the laws of the United States) and 28 U.S.C. § 1337 (1976) (cases arising under statutes regulating commerce). See generally Califano v. Sanders, 430 U.S. 99, 105, 97 S.Ct. 980, 51 L.Ed.2d 192 (1977). Once a plaintiff has alleged a nonfrivolous constitutional claim, the district court has jurisdiction under section 1331, and dismissal for want of jurisdiction is improper even if dismissal for failure to state a claim upon which relief could be granted would be proper. Bell v. Hood, 327 U.S. 678, 682-83, 66 S.Ct. 773, 90 L.Ed. 939 (1946). See 1 Moore’s Federal Practice ¶ 0.62[2.-2], at 664-65 (1977). Similarly, jurisprudential concerns, such as those embodied in the exhaustion doctrine, do not bear on whether a court has jurisdiction but only on whether it should exercise that jurisdiction.

This conclusion finds support in this court’s opinion in Wolf Corp. v. SEC, 115 U.S.App.D.C. 75, 317 F.2d 139 (D.C.Cir.1963) (Burger, J.). The plaintiff in that case had asked the district court to enjoin the Securities and Exchange Commission from holding a stop-order hearing. The district court dismissed the case not for want of jurisdiction but for failure to state a claim upon which relief could be granted. Id., at 77, 317 F.2d at 141. On appeal, this court affirmed because it believed the plaintiff should have exhausted its remedies before the agency first. In the process, the court stated expressly that the plaintiff’s allegation of a due process violation was sufficient to invoke the district court’s jurisdiction under 28 U.S.C. § 1337. It then agreed that dismissal for failure to state a valid claim, rather than for want of jurisdiction, was appropriate. Id. Moreover, like the case before us, Wolf arose under a proce*1158dural regime that provided for review of final agency decisions in the courts of appeals, not the district courts. Compare 15 U.S.C. § 77i (1976) (review of SEC orders), cited in Wolf Corp. v. SEC, 115 U.S.App.D.C. at 77 n.6, 317 F.2d at 141 n.6, with 15 U.S.C. § 57a(e)(1)(A) (1976) (review of FTC rules). Thus, where the final agency decision may be reviewed does not by itself determine the court in which a plaintiff seeking interlocutory relief may pursue his cause of action.

Ill

The Commission attacks the substance of the district court’s decision on two grounds. First, it insists that the standard for disqualification of an administrative decision-maker in rulemaking differs from the standard in adjudication. The Commission’s view rests on the different purposes of rule-making and adjudication and on the longstanding rule that due process requirements are not the same in the two contexts. Second, the Commission asserts that under any disqualification standard, Chairman Pertschuk cannot be found to have prejudged issues in contravention of due process.

The appellees respond with two contentions. First, they support the district court’s conclusion that Cinderella Career & Finishing Schools, Inc. v. FTC, 138 U.S.App.D.C. 152, 425 F.2d 583 (D.C.Cir.1970), applies to Commission rulemaking under section 18 of the FTC Act. Although Cinderella involved an adjudication, the appellees claim that the existence of procedures in section 18 rulemaking proceedings that are not required in informal notice-and-comment rulemaking under section 553 of the Administrative Procedure Act, 5 U.S.C. § 553 (1976),10 mandates application of the standard set out in that case. Second, they argue that Chairman Pertschuk’s statements indicate prejudgment sufficient to bar him from further participation in the children’s advertising proceeding.

We are, therefore, called upon to resolve two questions: (1) What is the appropriate standard by which to decide prejudgment in the context of a section 18 proceeding? (2) Has Chairman Pertschuk made statements that demonstrate prejudgment under that standard?

A

Before we examine either the structure of section 18 or the content of Pertschuk’s statements, we review our decision in Cinderella Career & Finishing Schools, Inc. v. FTC. In Cinderella, we held that the standard for disqualifying an administrator in an adjudicatory proceeding because of prejudgment is whether “ ‘a disinterested observer may conclude that [the decisionmaker] has in some measure adjudged the facts as well as the law of a particular case in advance of hearing it.’ ” 138 U.S.App.D.C. at 160, 425 F.2d at 591 (quoting Gilligan, Will & Co. v. SEC, 267 F.2d 461, 469 (2d Cir.), cert. denied, 361 U.S. 896, 80 S.Ct. 200, 4 L.Ed.2d 152 (1959)). See Texaco, Inc. v. FTC, 118 U.S.App.D.C. 366, 372, 336 F.2d 754, 760 (D.C.Cir.1964), vacated and remanded per curiam on other grounds, 381 U.S. 739, 85 S.Ct. 1798, 14 L.Ed.2d 714 (1965). See also Kennecott Copper Corp. v. FTC, 467 F.2d 67, 80 (10th Cir. 1972), cert. denied, 416 U.S. 909, 94 S.Ct. 1617, 40 L.Ed.2d 114 (1974). This standard guarantees that the adjudicative hearing of a person facing administrative prosecution for past behavior is before a decisionmaker who has not prejudged facts concerning the events under review.

The facts of the Cinderella case illustrate application of the standard. The Commission charged that Cinderella Career College and Finishing Schools, Inc. (Cinderella) made false representations in its advertising and engaged in deceptive practices in contravention of section 5 of the FTC Act, 15 U.S.C. § 45 (1976).11 For example, the *1159Commission alleged that Cinderella advertised “courses of instruction which qualify students to become airline stewardesses” and that its graduates were “qualified to assume executive positions.” 138 U.S.App.D.C. at 153 n.1, 425 F.2d at 584 n.1. An administrative law judge ruled that the Commission had failed to prove that the acts and practices violated the FTC Act, and he dismissed the complaint. Id. at 153 n.2, 425 F.2d at 584 n.2. Complaint counsel appealed the administrative law judge’s decision to the full Commission.

While the appeal was pending before the Commission, Chairman Paul Rand Dixon spoke at the Government Relations Workshop of the National Newspaper Association and stated:

What kind of vigor can a reputable newspaper exhibit? . . . What standards are maintained on advertising acceptance? . . . What about carrying ads that offer college educations in five weeks, ... or becoming an airline’s hostess by attending a charm school? . . . Granted that newspapers are not in the advertising policing business, their advertising managers are savvy enough to smell deception when the odor is strong enough.

Id., at 158-159, 425 F.2d at 589-90. Six months later, the Commission, with Chairman Dixon participating, found that Cinderella neither awarded nor was capable of awarding academic degrees, and that it offered no course of instruction that would qualify students as airline stewardesses. School Services, Inc., 74 F.T.C. 920, 1022, 1031, 1035 (1968). The Commission concluded that these and other representations were false and misleading in violation of section 5 of the FTC Act and ordered Cinderella to cease and desist from such practices. Id. at 1040-42.

On review, we found that Chairman Dixon’s remarks gave “the appearance that he ha[d] already prejudged the case and that the ultimate determination of the merits [would] move in predestined grooves.” 138 U.S.App.D.C. at 159, 425 F.2d at 590. Accordingly, we held that Chairman Dixon’s participation in the proceeding required reversal and remand of the Commission’s order.

B

The district court in the case now before us held that “the standard of conduct delineated in Cinderella" governs agency decisionmakers participating in a section 18 proceeding. A. at 107. Section 18 authorizes the Commission to promulgate rules designed to “define with specificity acts or practices which are unfair or deceptive.”12 Basically, it allows the Commission to enforce the broad command of section 5 of the FTC Act, which declares “unfair or deceptive acts or practices in or affecting commerce . . unlawful.”13 The district court ruled that a section 18 proceeding, notwithstanding the appellation rulemaking, “is neither wholly legislative nor wholly adjudicative.” According to the district court, the “adjudicative aspects” of the proceeding render Cinderella applicable. Id. at 106.

The appellees urge us to uphold the district court’s analysis of section 18. They emphasize two allegedly “adjudicatory aspects” of a section 18 proceeding: (1) interested persons are entitled to limited cross-examination of those who testify to disputed issues of material fact, see 15 U.S.C. § 57a(c)(1)(B) (1976), and (2) a reviewing court must set aside any rule not supported by substantial evidence in the rulemaking record taken as a whole, see 15 U.S.C. § 57a(e)(3)(A) (1976).14

*1160The district court’s characterization of section 18 rulemaking as a “hybrid” or quasi-adjudicative proceeding, A. at 106, ignores the clear scheme of the APA. Administrative action pursuant to the APA is either adjudication or rulemaking. The two processes differ fundamentally in purpose and focus:

The object of the rule making proceeding is the implementation or prescription of law or policy for the future, rather than the evaluation of a respondent’s past conduct. Typically, the issues relate not to the evidentiary facts, as to which the veracity and demeanor of witnesses would often be important, but rather to the policy-making conclusions to be drawn from the facts. . . . Conversely, adjudication is concerned with the determination of past and present rights and liabilities. Normally, there is involved a decision as to whether past conduct was unlawful, so that the proceeding is characterized by an accusatory flavor and may result in disciplinary action.

Attorney General’s Manual on the Administrative Procedure Act 14 (1947).15 See United States v. Florida East Coast Railway, 410 U.S. 224, 244-46, 93 S.Ct. 810, 35 L.Ed.2d 223 (1973).

Adjudication and rulemaking may be conducted pursuant to either informal or formal procedures.16 Informal rulemaking requires the administrative agency to provide “interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments.” 5 U.S.C. § 553(c). Under section 706(2)(A), reviewing courts are required to uphold informal rulemaking decisions unless those decisions are “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A) (1976).

Formal rulemaking is invoked when “rules are required by statute to be made on the record after opportunity for an agency hearing.” 5 U.S.C. § 553(c). Under sections 556 and 557 of the APA, 5 U.S.C. §§ 556-557 (1976), formal rulemaking must include a trial-type hearing at which a “party is entitled to present his case or defense or oral or documentary evidence, to submit rebuttal evidence, and to conduct such cross-examination as may be required for a full and true disclosure of the facts.” 5 U.S.C. § 556(d). Section 706(2)(E) governs judicial review of formal rulemaking and requires a court to set aside a rule that is “unsupported by substantial evidence.” 5 U.S.C. § 706(2)(E).

Formal adjudication is governed by section 554 of the APA and arises in “every case of adjudication required by statute to be determined on the record after opportunity for an agency hearing.” 5 U.S.C. § 554(a) (1976). Section 554 incorporates the procedural requirements of sections 556 and 557 and affords parties to a formal adjudication the right to present evidence and to conduct cross-examination. 5 U.S.C. § 554(c)-(d). Judicial review of formal adjudication, like that of formal rulemaking, *1161is governed by the substantial evidence standard.17

The foregoing descriptions merely outline the basic parameters of administrative action. Congress has, in the Magnuson-Moss Warranty — Federal Trade Commission Improvement (Magnuson-Moss) Act § 202(a), 15 U.S.C. § 57a (1976), and elsewhere,18 enacted specific statutory rulemaking provisions that require more procedures than those of section 553 but less than the full procedures required under sections 556 and 557.19 The presence of procedures not mandated by section 553, however, does not, as the appellees urge, convert rulemaking into quasi-adjudication. The appellees err by focusing on the details of administrative process rather than the nature of administrative action.

Our decision in Hercules, Inc. v. EPA, 194 U.SApp.D.C. 172, 598 F.2d 91 (D.C.Cir.1978), illustrates that the difference between rulemaking and adjudication is not affected by varying procedural practices. In that case, although we reviewed decisions of the Environmental Protection Agency under the substantial evidence standard, id., at 187, 598 F.2d at 106; see Environmental Defense Fund v. EPA (PCBs), 194 U.S.App.D.C. 143, 163-164, 598 F.2d 62, 82-83 (D.C.Cir.1978), we refused to find that the agency proceeding was adjudicatory. The Environmental Protection Agency was promulgating policy-based standards of general import and, thus, was engaged in rulemaking. Similarly, the Commission’s children’s advertising inquiry is designed to determine whether certain acts or practices will, in the future, be considered to contravene the FTC Act. The proceeding is not adjudication or quasi-adjudication. It is a clear exercise of the Commission’s rulemaking authority.

C

The appellees also argue that we must apply Cinderella because it involves a factual prejudgment similar to the one now before us. In Cinderella, Chairman Dixon made statements that reflected prejudgment that Cinderella Career & Finishing Schools, Inc. had engaged in certain acts. In this case, the appellees accuse Chairman Pertschuk of prejudging issues of material fact in the children’s television proceeding. We find that the appellees’ argument belies a misunderstanding of the factual basis of rules.

The factual predicate of a rulemaking decision substantially differs in nature and in use from the factual predicate of an adjudicatory decision. The factual predicate of adjudication depends on ascertainment of “facts concerning the immediate parties — who did what, where, when, how, and with what motive or intent.” 2 K. Davis, Administrative Law Treatise, § 15.-03, at 353 (1958). By contrast, the nature of legislative fact is ordinarily general, without reference to specific parties. Adjudicative and legislative facts are also used differently:

[AJdjudicative facts are those to which the law is applied in the process of adjudication. They are the facts that normally go to the jury in a jury case. . Legislative facts are the facts which help the tribunal determine the content of law *1162and of policy and help the tribunal to exercise its judgment or discretion in determining what course of action to take.

Id.20 Thus, legislative facts are crucial to the prediction of future events and to the evaluation of certain risks, both of which are inherent in administrative policymaking.

The case law demonstrates that the factual component of generalized rulemaking cannot be severed from the pure policy aspects of the rule.21 FCC v. National Citizens Committee for Broadcasting, 436 U.S. 775, 98 S.Ct. 2096, 56 L.Ed.2d 697 (1978), is illustrative. There, the Supreme Court reviewed the Federal Communication Commission’s decision to order prospective divestiture in cases of newspaper-television cross-ownership. The agency had based its decision on an assessment of the relevant market conditions. The Court, upholding the administrative action, stated that “complete factual support in the record for the [Federal Communication] Commission’s judgment or prediction is not possible or required; ‘a forecast of the direction in which future public interest lies necessarily involves deductions based on the expert knowledge of the agency.’ ” Id. at 814, 98 S.Ct. at 2122 (quoting FPC v. Transcontinental Gas Pipe Line Corp., 365 U.S. 1, 29, 81 S.Ct. 435, 5 L.Ed.2d 377 (1961)). See American Airlines, Inc. v. CAB, 123 U.S. App.D.C. 310, 359 F.2d 624 (D.C.Cir.1966) (en banc).22

Because legislative facts combine empirical observation with application of administrative expertise to reach generalized conclusions, they need not be developed through evidentiary hearings. See id., at 318-319, 359 F.2d at 632-33.23 To the contrary, however, “[w]here adjudicative, rather than legislative, facts are involved, the parties must be afforded a hearing to allow them an opportunity to meet and to present evidence.” Alaska Airlines, Inc. v. CAB, 178 U.S.App.D.C. 116, 122, 545 F.2d 194, 200 (D.C.Cir.1976) (footnote omitted). This dis*1163tinction has been established in judicial, as well as administrative, processes.24

Evidentiary hearings, although not necessary to determine legislative facts, nevertheless may be helpful in certain circumstances. For example, Congress, when it enacted the Magnuson-Moss Act, recognized that special circumstances might warrant the use of evidentiary proceedings in determining legislative facts. Under section 18(c)(1)(B)25 and section 18(c)(2)(B),26 the Commission must conduct a hearing, with a limited right of cross-examination, when it resolves disputed issues of material fact. The legislative history of the MagnusonMoss Act states that “[t]he only disputed issues of material fact to be determined for resolution by the Commission are those issues characterized as issues of specific fact in contrast to legislative fact.” H.R. Rep.No. 93-1606, 93d Cong., 2d Sess. 33 (1974) (Conference Report).

Although neither the Conference Report nor subsequent congressional debate amplify the term “specific fact,” its genesis can be traced to a recommendation of the Administrative Conference of the United States (ACUS).27 Prior to congressional action on the Magnuson-Moss Act, ACUS promulgated Recommendation No. 72-5, which suggested that Congress should not require *1164trial-type procedures “for making rules of general applicability, except that it may sometimes appropriately require such procedures for resolving issues of specific fact.” 1 C.F.R. § 305.72-5 (1974). In a letter dated July 27, 1973, then-ACUS Chairman Antonin Scalia answered Congressman Moss’s request for a definition of the term “specific fact”:

Conference Recommendation 72-5 is addressed exclusively to agency rulemaking of general applicability. In such a proceeding, almost by definition, adjudicative facts are not at issue, and the agency should ordinarily be free to, and ordinarily would, proceed by the route of written comments, supplemented, perhaps, by a legislative-type hearing. Yet there may arise occasionally in such rule-making proceedings factual issues which, though not adjudicative, nevertheless justify exploration in a trial-type format— because they are sufficiently narrow in focus and sufficiently material to the outcome of the proceeding to make it reasonable and useful for the agency to resort to trial-type procedure to resolve them. These are what the Recommendation refers to as issues of specific fact.28

A review of this and subsequent ACUS correspondence demonstrates that the term “specific fact” refers to a category of legislative fact, the resolution of which may be aided by the type of adversarial procedures inherent in an evidentiary proceeding with limited cross-examination. See Citizens for Allegan County v. FPC, 134 U.S.App.D.C. 229, 233, 414 F.2d 1125, 1129 (D.C.Cir.1969).29 Nothing in the legislative history or background of section 18 suggests, however, that Congress believed that the use of evidentiary hearings transformed the nature of the proceedings from rulemaking to adjudication or altered the factual predicate of rulemaking from legislative to adjudicative fact. Accordingly, the appellees’ contention that the Cinderella standard must be applied to section 18 rulemaking because it invokes the same type of factual judgments as Commission adjudication is simply incorrect.

D

Our conclusion that neither the procedures nor the factual predicate of section 18 rulemaking converts it into adjudication is supported by United States v. Florida East Coast Railway, 410 U.S. 224, 93 S.Ct. 810, 35 L.Ed.2d 223 (1973). In that case, the Su*1165preme Court held, over the protests of two dissenting Justices, that an Interstate Commerce Commission ratemaking proceeding was rulemaking. The dissent maintained that the rate order was “adjudicatory in the sense that [it] determine[d] the measure of the financial responsibility of one road for its use of the rolling stock of another road.” Id. at 252, 93 S.Ct. at 824 (Douglas, J., joined by Stewart, J., dissenting). The dissent emphasized that the agency decision was based on “evidential facts,” id. at 254, 93 S.Ct. at, and that it could “have devastating effects on a particular [railroad] line,” id. at 256, 93 S.Ct. at 826. Nevertheless, the Court found that the proceeding was rulemaking because the agency final order was applicable to all common carriers rather than any particular railroad. The Court explained that the agency had predicated its decision on “factual inferences . . . used in the formulation of a basically legislative-type judgment, for prospec-. tive application only, rather than in adjudicating a particular set óf disputed facts.” Id. at 246, 93 S.Ct. at 821.

The same analysis applies to section 18 rulemaking. A section 18 proceeding is directed to all members of an affected industry and is based on legislative fact. Even when evidentiary procedures are employed in the formulation of specific fact, the product of those procedures is “used in the formulation of a basically legislative-type judgment.” Id. Although we recognize that the line between rulemaking and adjudication “may not always be a bright one,” id. at 245, 93 S.Ct. at 821, we have no doubt that section 18 proceedings fall clearly on the rulemaking side of the “recognized distinction in administrative law between proceedings for the purpose of promulgating policy-type rules ... on the one hand, and proceedings designed to adjudicate disputed facts in particular cases on the other.” Id. Accordingly, we now decide the standard of disqualification applicable in a section 18 rulemaking proceeding.

IV

A

Had Congress amended section 5 of the FTC Act to declare certain types of children’s advertising unfair or deceptive, we would barely pause to consider a due process challenge. No court to our knowledge has imposed procedural requirements upon a legislature before it may act. Indeed, any suggestion that congressmen may not prejudge factual and policy issues is fanciful. A legislator must have the ability to exchange views with constituents and to suggest public policy that is dependent upon factual assumptions. Individual interests impinged upon by the legislative process are protected, as Justice Holmes wrote, “in the only way that they can be in a complex society, by [the individual’s] power, immediate or remote, over those who make the rule.” Bi-Metallic Investment Co. v. State Board of Equalization, 239 U.S. 441, 445, 36 S.Ct. 141, 142, 60 L.Ed. 372 (1915).

Congress chose, however, to delegate its power to proscribe unfair or deceptive acts or practices to the Commission because “there were too many unfair practices for it to define.” S.Rep.No. 597, 63d Cong., 2d Sess. 13 (1914).30 In determining the due process standards applicable in a section 18 proceeding, we are guided by its nature as rulemaking.31 When a proceeding is classified as rulemaking, due process *1166ordinarily does not demand procedures more rigorous than those provided by Congress. See Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519, 524 & n. 1, 542 & n. 16, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978). Congress is under no requirement to hold an evidentiary hearing prior to its adoption of legislation, and “Congress need not make that requirement when it delegates the task to an administrative agency.” Bowles v. Willingham, 321 U.S. 503, 519, 64 S.Ct. 641, 649, 88 L.Ed. 892 (1944) (citing Bi-Metallic Investment Co. v. State Board of Equalization, 239 U.S. 441, 36 S.Ct. 141, 60 L.Ed. 372 (1915)). Accordingly, we must apply a disqualification standard that is consistent with the structure and purposes of section 18.

Congress regarded the authority to promulgate rules pursuant to section 18 as an “important power by which the Commission can fairly and efficiently pursue its important statutory mission.” H.R.Rep.No. 93-1606, supra at 31.32 Through rulemaking, the Commission may allocate resources more efficiently, act with greater speed, and give specific notice to industries of the scope of section 5. See National Petroleum Refiners Association v. FTC, 157 U.S.App.D.C. 83, 101-102, 482 F.2d 672, 690-91 (D.C.Cir.1973), cert. denied, 415 U.S. 951, 94 S.Ct. 1475, 39 L.Ed.2d 567 (1974).33 More important, rulemaking allows an agency to gather information and views that might be irrelevant to the narrowly focused concerns of adjudication:

[Utilizing rule-making procedures opens up the process of agency policy innovation to a broad range of criticisms, advice *1167and data that is ordinarily less likely to be forthcoming in adjudication. Moreover, the availability of notice before promulgation and wide public participation in rule-making avoids the problem of singling out a single defendant among a group of competitors for initial imposition of a new and inevitably costly legal obligation.

Id. at 683.

In determining the type of rulemaking procedures to be employed by the Commission, Congress sought “to avoid rigid or cumbersome procedures that could involve undue costs and delay.” H.R.Rep.No.93-1606, supra at 33. To this end, Congress gave the Commission authority to limit rebuttal and cross-examination. In so acting, Congress heeded the advice of ACUS, which, when asked to comment upon the House proposal, warned that requiring “trial-type procedures . . . [in] rulemaking of general applicability [may] produce a virtual paralysis of the administrative process.” 34

Although Congress refused to subject section 18 proceedings to formal rulemaking requirements, it did order use of procedures not required in informal rulemaking under the APA.35 Congress intended these addi*1168tional procedures “to improve the quality of information available to the Commission,” H.R.Rep.No. 93-1606, supra at 33, and to compel reexamination of the proposed rule in light of the arguments adduced during the comment period. Incorporation of this information into a rulemaking record also allows a reviewing court to exercise meaningful supervision over the Commission’s decision.

B

We never intended the Cinderella rule to apply to a rulemaking procedure such as the one under review. The Cinderella rule disqualifies a decisionmaker if “ ‘a disinterested observer may conclude that [he] has in some measure adjudged the facts as well as the law of a particular case in advance of hearing it.’ ” 138 U.S.App.D.C. at 160, 425 F.2d at 591 (quoting Gilligan, Will & Co. v. SEC, 267 F.2d at 469). As we already have noted,36 legislative facts adduced in rule-making partake of agency expertise, prediction, and risk assessment. In Cinderella, the court was able-to cleave fact from law in deciding whether Chairman Dixon had prejudged particular factual issues. In the rulemaking context, however, the factual component of the policy decision is not easily assessed in terms of an empirically verifiable condition. Rulemaking involves the kind of issues “where a month of experience will be worth a year of hearings.”37 Application of Cinderella’s strict law-fact dichotomy would necessarily limit the ability of administrators to discuss policy questions.

The legitimate functions of a policymaker, unlike an adjudicator, demand interchange and discussion about important issues. We must not impose judicial roles upon administrators when they perform functions very different from those of judges. As Professor Glen O. Robinson, a former member of the Federal Communications Commission, has commented:

Although members of agencies such as the FCC certainly do perform significant judicial functions in deciding individual cases, they perform even more tasks of a legislative or an executive character. When the FCC, for example, promulgated regulations barring common ownership of local newspapers and broadcast stations, it performed a legislative task, pure and simple. In reaching the decision, the Commission was neither bound by, nor expected to conform to, the confining procedures or standards of a court. Why then should the decisionmakers be stamped from a judicial cast? Insofar as the agency is delegated broad legislative powers and responsibilities, would it not be at least as appropriate to measure agency members against standards used to evaluate legislators? Such standards would place agency members on a better standing with respect to judges and would create an entirely new frame of reference for assessing agency performance. The supremacy of carefully reasoned principle — the supposed ideal of judicial decision — necessarily would yield to the dictates of political compromise and expediency, which are the accepted hallmarks of legislative action. Correspondingly, the standard for evaluating the composition of the agencies would shift from an emphasis on professional training to an emphasis on representativeness.

Robinson, The Federal Communications Commission: An Essay on Regulatory Watchdogs, 64 Va.L.Rev. 169, 185-86 (1978) (footnotes omitted).38

The Cinderella view of a neutral and detached adjudicator is simply an inapposite *1169role model for an administrator who must translate broad statutory commands into concrete social policies.39 If an agency official is to be effective he must engage in debate and discussion about the policy matters before him. As this court has recognized before, “informal contacts between agencies and the public are the ‘bread and butter’ of the process of administration.” Home Box Office, Inc. v. FCC, 185 U.S.App.D.C. 142, 190, 567 F.2d 9, 57 (D.C.Cir.) (per curiam), cert. denied, 434 U.S. 829, 98 S.Ct. 111, 54 L.Ed.2d 89 (1977).40

Our view is consistent with two Supreme Court opinions that detail prejudgment standards for administrators who speak out on public policy matters. In Hortonville Joint School District No. 1 v. Hortonville Education Association, 426 U.S. 482, 96 S.Ct. 2308, 49 L.Ed.2d 1 (1976), the Court held that the due process clause did not bar a local school board, which was negotiating renewal of a collective-bargaining agreement with teachers, from dismissing teachers who were engaged in an illegal strike following failure of the contract negotia*1170tions.41 The Court stated that a decision-maker need not be disqualified “simply because he has taken a position, even in public, on a policy issue related to the dispute, in the absence of a showing that he is not ‘capable of judging a particular controversy fairly on the basis of its own circumstances.’ ” Id. at 493, 96 S.Ct. at 2314 (quoting United States v. Morgan, 313 U.S. 409, 421, 61 S.Ct. 999, 85 L.Ed. 1429 (1941)).

The Court’s decision in FTC v. Cement Institute, 333 U.S. 683, 68 S.Ct. 793, 92 L.Ed. 1010 (1948), is likewise instructive. There, a trade association urged that the Commission be disqualified from deciding whether a trade practice violated the antitrust laws because its members previously had endorsed the view before both the Congress and the President that the practice was the equivalent of illegal price-fixing. The Court rejected the trade association’s claim because, inter alia, the earlier statements “did not necessarily mean that the minds of [Commission] members were irrevocably closed.” Id. at 701, 68 S.Ct. at 803.42

A similar standard is applicable to section 18 rule-making. Section 18 outlines a process by which the Commission must form a preliminary view on a proposed rule, must hear comment from concerned parties, and in some cases, must hold trial-type proceedings before deciding whether to promulgate a rule. There is no doubt that the purpose of section 18 would be frustrated if a Commission member had reached an irrevocable decision on whether a rule should be issued prior to the Commission’s final action. At the same time, the Commission could not exercise its broad policymaking power under section 18 if administrators were unable to discuss the wisdom of various regulatory positions. That discussion necessarily involves the broad, general characterizations of reality that we label legislative fact.

Accordingly, a Commissioner should be disqualified only when there has been a clear and convincing showing that the agency member has an unalterably closed mind on matters critical to the disposition of the proceeding. The “clear and convincing” test is necessary to rebut the presumption of administrative regularity. See, e. g., Withrow v. Larkin, 421 U.S. 35, 55, 95 S.Ct. 1456, 43 L.Ed.2d 712 (1975); Hercules, Inc. v. EPA, 194 U.S.App.D.C. 172, 204, 598 F.2d 91, 123 (D.C.Cir.1978). The “unalterably closed mind” test is necessary to permit rulemakers to carry out their proper policy-based functions while disqualifying those unable to consider meaningfully a section 18 hearing.43

V

We view the statements offered as grounds for disqualification as a whole to discern whether they evidence a clear and convincing showing that Chairman Pertschuk has an unalterably closed mind on *1171matters critical to the children’s television proceeding. The most important evidence submitted by the appellees is a speech Chairman Pertschuk delivered in November 1977 to the ACT Research Conference. The other materials generally derive from this speech.44

The speech focused on whether section 5 of the FTC Act, which prohibits “unfair or deceptive acts or practices,” may be applicable to children’s advertising. Pertschuk first asserted that children have only a minimal understanding of the nature of television commercials and are unable to distinguish between advertising and other forms of information. He quoted a finding by the Federal Communications Commission that “many children do not have the sophistication or experience needed to understand that advertising is not just another form of informational programming.” 45

Pertschuk then set out relevant legal principles. He quoted a Supreme Court opinion that gave the Commission wide-ranging discretion to declare a trade practice unfair.46 He noted the legal recognition of children’s lack of evaluative capacity and the concomitant protection for children built into commercial and tort law. Among the doctrines he mentioned were the unenforeeability of a contract signed by a child, the prohibition against selling children otherwise legal goods, such as liquor and cigarettes, the bar against children leaving school or driving a car, and the “attractive nuisance” rule of liability, which holds persons who maintain conditions on their property that are likely to entice small children responsible for harm to those children.

Pertschuk continued by discussing the effects of advertising on children. He explained that “children are not adults in miniature. Instead, they bring to advertising a special perspective and sensibility — a credulousness that comes from inexperience — which advertisers exploit.”47 He stated that sugared foods may be harmful to children and that children may not understand the health problems, like tooth decay, that can result from excessive consumption of sugared products: “Children lack the judgment and experience to see that something that looks good to them in the short run can hurt them in the long run.”48 He suggested that children’s advertising might be deceptive because it highlights the general desirability of sugared foods without providing material information on the health risks.

Finally, Pertschuk noted that any action taken against children’s advertising would bring opposition from affected economic interests. He said that “[i]f the Commission is to reach sound and reasoned judgments, it must also hear from the parents, the teachers, the pediatricians, the dentists, those health and education specialists on whom we rely for the advocacy of our children’s best interest.” 49 Pertschuk concluded by stating: “[W]e must be rigorous and open-minded in our analysis of both law and fact.”50

Chairman Pertsehuk’s remarks, considered as a whole, represent discussion, and perhaps advocacy, of the legal theory that might support exercise of the Commission’s jurisdiction over children’s advertising. The mere discussion of policy or advocacy on a legal question, however, is not sufficient to disqualify an administrator.51 *1172To present legal and policy arguments, Pertschuk not unnaturally employed the factual assumptions that underlie the rationale for Commission action. The simple fact that the Chairman explored issues based on legal and factual assumptions, however, did not necessarily bind him to them forever. Rather, he remained free, both in theory and in reality, to change his mind upon consideration of the presentations made by those who would be affected.

In outlining his legal theory of “unfairness,” Pertschuk suggested that children might be harmed by overconsumption of sugared products and that they might not be able to comprehend the purpose of advertising. Insofar as these conclusions are ones of fact, they are certainly of legislative fact. Neither conclusion bears on the particular activities of any specific advertiser or food manufacturer or makes reference to the health or comprehension of any particular child. These conclusions are broad and general, far removed from the narrow, detailed facts that were at the heart of the Cinderella case.52

Together, the two conclusions tend to show that children may be “injured” by the advertising of highly sugared products. The Commission has stated that it will consider three factors in deciding whether a trade practice is unfair: whether the action is (1) offensive to public policy as established by some legal doctrine, (2) immoral, and (3) substantially injurious to consumers.53 Chairman Pertschuk scarcely could *1173have discussed the “unfairness” doctrine without assuming for the purpose of discussion that some injury might result from the trade practice in question.

We also note that Chairman Pertschuk made the challenged comments before the Commission adopted its notice of proposed rulemaking. This court has never suggested that the interchange between rulemaker and the public should be limited prior to the initiation of agency action.54 The period before the Commission first decides to take action on a perceived problem is, in fact, the best time for a rulemaker to engage in dialogue with concerned citizens. Discussion would be futile, of course, if the administrator could not test his own views on different audiences. Moreover, as we stated earlier,55 an expression of opinion prior to the issuance of a proposed rulemaking does not, without more, show that an agency member cannot maintain an open mind during the hearing stage of the proceeding.

Indeed, section 18 in effect requires the Commission to formulate tentative judgments on suggested rules. Before the Commission initiates rulemaking proceedings, it must “publish a notice of proposed rulemaking stating with particularity the reason for the proposed rule prior to the comment stage of the' proceeding.” 15 U.S.C. § 57a(b). The Conference Committee on the Magnuson-Moss Act referred to the period following this notice as one during which affected parties could “challenge the factual assumptions on which the Commission is proceeding and to show in what respect these assumptions are erroneous.” H.R.Rep.No. 93-1606, supra at 33. Congress intended for the Commission to develop proposals that subsequently would be published and discussed openly. To perform this task intelligently necessarily involves making tentative conclusions of fact, even if they later are open to public challenge.

In sum, we hold that the materials adduced by the appellees are insufficient to rebut the strong presumption of administrative regularity.56 The materials, as a *1174whole, merely demonstrate that Pertschuk discussed a legal theory by which the Commission could adopt a rule, if circumstances warranted. The statements do not demonstrate that Chairman Pertschuk is unwilling or unable to consider rationally argument that a final rule is unnecessary because children are either unharmed by sugared products or are able to understand advertising. The appellees have failed to make a clear and convincing showing that Chairman Pertschuk has an unalterably closed mind on matters critical to the children’s television proceeding.

VI

The appellees have a right to a fair and open proceeding; that right includes access to an impartial decisionmaker. Impartial, however, does not mean uninformed, unthinking, or inarticulate. The requirements of due process clearly recognize the necessity for rulemakers to formulate policy in a manner similar to legislative action. The standard enunicated today will protect the purposes of a section 18 proceeding, and, in so doing, will guarantee the appellees a fair hearing.

We would eviscerate the proper evolution of policymaking were we to disqualify every administrator who has opinions on the correct course of his agency’s future action. Administrators, and even judges, may hold policy views on questions of law prior to participating in a proceeding. The factual basis for a rulemaking is so closely intertwined with policy judgments that we would obliterate rulemaking were we to equate a statement on an issue of legislative fact with unconstitutional prejudgment. The importance and legitimacy of rulemaking procedures are too well established to deny administrators such a fundamental tool.

Finally, we eschew formulation of a disqualification standard that impinges upon the political process. An administrator’s presence within an agency .reflects the political judgment of the President and Senate. As Judge Prettyman of this court aptly noted, a “Commission’s view of what is best in the public interest may change from time to time. Commissions themselves change, underlying philosophies differ, and experience often dictates changes.” Pinellas Broadcasting Co. v. FCC, 97 U.S.App.D.C. 236, 238, 230 F.2d 204, 206 (D.C.Cir.), cert. denied, 350 U.S. 1007, 76 S.Ct. 650, 100 L.Ed. 869 (1956). We are concerned that implementation of the Cinderella standard in the rulemaking context would plunge courts into the midst of political battles concerning the proper formulation of administrative policy. We serve as guarantors of statutory and constitutional *1175rights, but not as arbiters of the political process. Accordingly, we will not order the disqualification of a rulemaker absent the most compelling proof that he is unable to carry out his duties in a constitutionally permissible manner.

Reversed.

1

. The proposed rule would

(a) Ban all televised advertising for any product which is directed to, or seen by, audiences composed of a significant proportion of children who are too young to understand the selling purpose of or otherwise comprehend or evaluate the advertising;
(b) Ban televised advertising for sugared food products directed to, or seen by, audiences composed of a significant proportion of older children, the consumption of which products poses the most serious dental health risks;
(c) Require televised advertising for sugared food products not included in Paragraph (b), which is directed to, or seen by, audiences composed of a significant proportion of older children, to be balanced by nutritional and/or health disclosures funded by advertisers.

43 Fed.Reg. 17,967, 17,969 (1978).

2

. 15 U.S.C. § 57a (1976). Congress enacted § 18 in 1975 as part of the Magnuson-Moss Warranty — Federal Trade Commission Im*1155provement (Magnuson-Moss) Act, Pub.L.No. 93-637, § 202(a), 88 Stat. 2193 (1975).

3

. 15 U.S.C. § 57a(b) (1976).

4

. Petitions received from Action for Children’s Television (ACT) and the Center for Science in the Public Interest prompted the Commission’s decision to begin rulemaking. Each petition asked the Commission to promulgate rules limiting the advertising on children’s television of certain highly sugared products. In support of the relief requested, each petition presented evidence on the amount of televised advertising for sugared products directed toward children, the limited ability of young children to recognize the commercial intent of such messages, and the health risks attendant to consumption by children of excess amounts of sugar. 43 Fed.Reg. at 17,968-69.

5

. Id. at 17,969.

6

. See note 56 infra.

7

. The Washington Legal Foundation and seven independent regulatory agencies appeared as amici curiae before this court.

8

. When the Commission rejected the disqualification claim, the appellees had not yet presented as evidence of prejudgment four letters later introduced before the district court. See pp. --- of 201 U.S.App.D.C., pp. 1155-1156 of 627 F.2d supra. The Commission did, however, have the opportunity to analyze the appellees’ legal theory and to examine the bulk of their evidence. We do not view the presence of the letters, which merely repeat the views expressed in the ACT speech, as having decisional significance. See note 56 infra.

9

. In this sense, review of the Commission’s decision not to recuse Chairman Pertschuk is analogous to the interlocutory review of a district court order permitted under 28 U.S.C. § 1292(b) (1976) when the “order involves a controlling question of law as to which there is substantial ground for difference of opinion and an immediate appeal from the order may materially advance the ultimate termination of the litigation.” See also Kennedy, The Federal Courts Improvement Act: a first step for Congress to take, 63 Judicature 8, 12 (1979) (proposed S. 678 balances need for finality against desirability of hearing interlocutory appeals by allowing “immediate appeals in cases of ‘extraordinary importance,’ with the Court of Appeals deciding — even in the absence of district court certification — whether or not to entertain an appeal”).

Similarly, appellate courts reviewing claims that a district court judge improperly refused to recuse himself, see 28 U.S.C. §§ 144, 455 (1976), have demonstrated sensitivity to the expeditious hearing of prejudgment cases. Although a refusal to recuse is not appealable as a final order, commentators have detected a liberal trend toward use of mandamus to consider disqualification claims. See 13 C. Wright & A. Miller, Federal Practice and Procedure: Jurisdiction § 3553, at 387 (1975); 9 Moore’s Federal Practice 1] 110.13[10], at 187-88 (2d ed. 1975).

10

. See note 35 infra.

11

. Section 5(a)(1) provides that “[u]nfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are declared unlawful.” 15 U.S.C. § 45(a)(1) (1976). The MagnusonMoss Act amended § 5 by adding the words “or *1159affecting.” Pub.L.No. 93-637, § 201(a), 88 Stat. 2193 (1975).

12

. 15 U.S.C. § 57a(a)(1) (1976).

13

. 15 U.S.C. § 45(a)(1) (1976).

14

. The appellees also argue that the principal characteristic of adjudicative proceedings which necessitates the Cinderella prejudgment standard is the requirement (which traditionally has applied to judges but not to legislators) that the ultimate decision be based upon record evidence. This, of course, is one of the most significant characteristics which the Commission’s adjudica*1160tive proceedings and its Section 18 trade regulation rulemaking proceedings have in common.

Brief of Intervening Plaintiff-Appellee Kellogg Company at 38. The appellees’ attempt to equate rulemaking with adjudication on the basis of a record requirement would have more force, however, if § 18 demanded rulemaking decisions to be based on a closed record, as are adjudicatory determinations. See 5 U.S.C. § 556(e) (1976). Section 18, in fact, provides that for purposes of judicial review the “rule-making record” includes “any . information which the Commission considers relevant to such rule.” 15 U.S.C. § 57a(e)(1)(B) (1976). Section 18 thus does not prohibit reliance on material not adduced during the rule-making proceedings; it simply requires the Commission to acknowledge that reliance.

15

. The Attorney General’s Manual on the Administrative Procedure Act is a contemporaneous interpretation of the Administrative Procedure Act. Because of “the role played by the Department of Justice in drafting the legislation,” it deserves some deference. Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519, 546, 98 S.Ct. 1197, 1213, 55 L.Ed.2d 460 (1978) (footnote omitted).

16

. See Pedersen, Formal Records and Informal Rulemaking, 85 Yale L.J. 38, 40 n.14 (1975).

17

. To complete the symmetry, informal adjudication occurs when an agency determines the rights or liabilities of a party in a proceeding to which § 554 does not apply. See, e. g., Camp v. Pitts, 411 U.S. 138, 93 S.Ct. 1241, 36 L.Ed.2d 106 (1973) (per curiam); Aircraft Owners & Pilots Ass’n v. FAA, 195 U.S.App.D.C. 151, 155-56, 600 F.2d 965, 969-70 (D.C.Cir.1979).

18

. See, e. g., Consumer Product Safety Act § 9, 15 U.S.C. § 2058 (1976); Toxic Substances Control Act § 6, 15 U.S.C. § 2605 (1976); Occupational Safety and Health Act of 1970, § 6, 29 U.S.C. § 655 (1976); Department of Energy Organization Act § 501, 42 U.S.C. § 7191 (Supp. I 1977); Clean Air Act Amendments of 1977, § 305, 42 U.S.C. § 7607 (Supp. I 1977). See also 1 K. Davis, Administrative Law Treatise § 6:9 (2d ed. 1978).

19

. Section 18, for example, affords a more limited right of cross-examination than § 556. Compare 15 U.S.C. § 57a(c) with 5 U.S.C. § 556(d). See H.R.Rep.No. 93-1606, 93d Cong., 2d Sess. 33 (1974) (Conference Report).

20

. See Davis, Judicial Notice, 55 Colum.L.Rev. 945, 952-59 (1955); Davis, An Approach to Problems of Evidence in the Administrative Process, 55 Harv.L.Rev. 364, 404-07 (1942).

The distinction between legislative and adjudicative facts has been widely accepted both within and without this circuit. See, e. g., Drummond v. Fulton County Dep’t of Family & Children’s Servs., 563 F.2d 1200, 1210 (5th Cir. 1977) (en banc); Alaska Airlines, Inc. v. CAB, 178 U.S.App.D.C. 116, 122, 545 F.2d 194, 200 (D.C.Cir.1976); Zamora v. Immigration & Naturalization Serv., 534 F.2d 1055, 1062 & n.4 (2d Cir. 1976); Independent Bankers Ass’n v. Federal Reserve Sys., 170 U.S.App.D.C. 278, 291-294, 516 F.2d 1206, 1219-22 (D.C.Cir.1975); Washington Util. & Transp. Comm’n v. FCC, 513 F.2d 1142, 1165 (9th Cir.), cert. denied, 423 U.S. 836, 96 S.Ct. 62, 46 L.Ed.2d 54 (1975); American Bancorporation v. Federal Reserve Sys., 509 F.2d 29, 36-37 (8th Cir. 1974); Thompson v. Washington, 162 U.S.App.D.C. 39, 51 n.4, 497 F.2d 626, 638 n.4 (D.C.Cir.1973); SEC v. Frank, 388 F.2d 486, 491-92 (2d Cir. 1968); Marshall v. Sawyer, 365 F.2d 105, 111 (9th Cir. 1966); Dayco Corp. v. FTC, 362 F.2d 180, 186 (6th Cir. 1966); American Airlines, Inc. v. CAB, 123 U.S.App.D.C. 310, 319, 359 F.2d 624, 633 (D.C.Cir.1966) (en banc).

21

. See also Ethyl Corp. v. EPA, 176 U.S.App.D.C. 373, 409-10, 423 n.112, 541 F.2d 1, 37-38, 51 n.112 (D.C.Cir.) (en banc), cert. denied, 426 U.S. 941, 96 S.Ct. 2663, 49 L.Ed.2d 394 (1976); Industrial Union Dep’t, AFL-CIO v. Hodgson, 162 U.S.App.D.C. 331, 339, 499 F.2d 467, 475 (D.C.Cir.1974).

22

. In American Airlines, we reviewed a Civil Aeronautics Board (Board) decision that allowed all-cargo airlines — but not passenger airlines — to offer reserved cargo space at reduced rates. The Board had designed the reserved space service in an effort to increase the commercial use of airlines. The Board feared that the success of the program would be threatened, and the financial strength of all-cargo airlines weakened, if passenger airlines were to offer the service as well. Further, the Board assumed that the financial effect of the new program on all-passenger airlines would not be significant. 123 U.S.App.D.C. at 312-313, 359 F.2d at 626-627. The court deemed this last finding a “ ‘legislative’ ” fact and rejected an attack on the Board’s position explaining: “It is the kind of issue involving expert opinions and forecasts, which cannot be decisively resolved by testimony. It is the kind of issue where a month of experience will be worth a year of hearings.” Id. at 319, 359 F.2d at 633.

23

. See also Independent Bankers Ass'n v. Federal Reserve Sys., 170 U.S.App.D.C. 278, 291-294, 516 F.2d 1206, 1219-22 (D.C.Cir.1975). See generally Zamora v. Immigration & Naturalization Serv., 534 F.2d 1055, 1062 (2d Cir. 1976).

24

. The Advisory Committee for the Federal Rules of Evidence embraced the general rule that legislative facts need not be developed through evidentiary hearings. Rule 201 of the Federal Rules of Evidence governs judicial notice of adjudicative facts. No evidentiary rule refers to judicial notice of legislative facts because, as the Advisory Committee noted, “any limitation in the form of indisputability, any formal requirements of notice other than those already inherent in affording opportunity to hear and be heard and exchanging briefs, and any requirement of formal findings at any level” are inappropriate to judicial access to legislative facts. Fed.R.Evid. 201 note.

Courts consistently have considered legislative facts that were not the product of trial-type proceedings. In Muller v. Oregon, 208 U.S. 412, 421-22, 28 S.Ct. 324, 326, 52 L.Ed. 551 (1908), for example, the Supreme Court took “judicial cognizance of all matters of general knowledge” in upholding a state law that prohibited women from working more than ten hours a day in a laundry. The Court principally relied upon a brief, filed by Louis Brandéis, that set forth support for the proposition that long working hours were physically dangerous to women. For other examples of judicial notice of legislative fact, see Paris Adult Theatre I v. Slaton, 413 U.S. 49, 63, 93 S.Ct. 2628, 2638, 37 L.Ed.2d 446 (1973) (“a sensitive, key relationship of human existence, central to family life, community welfare, and the development of human personality, can be debased and distorted by crass commercial exploitation of sex”); Frontiero v. Richardson, 411 U.S. 677, 686, 93 S.Ct. 1764, 1770, 36 L.Ed.2d 583 (1973) (“women still face pervasive, although at times more subtle, discrimination in our educational institutions, in the job market and, perhaps most conspicuously, in the political arena”); Javins v. First Nat’l Realty Corp., 138 U.S.App.D.C. 369, 375-77, 428 F.2d 1071, 1078-80 (D.C.Cir.) (“Tenants have very little leverage to enforce demands for better housing. The increasingly severe shortage of adequate housing further increases the landlord’s bargaining power and escalates the need for maintaining and improving the existing stock.”) (footnote omitted), cert. denied, 400 U.S. 925, 91 S.Ct. 186, 27 L.Ed.2d 185 (1970).

25

. Section 18(c)(1)(B) provides that

an interested person is entitled ... if the Commission determines that there are disputed issues of material fact it is necessary to resolve, to present such rebuttal submissions and to conduct (or have conducted under paragraph (2)(B)) such cross-examination of persons as the Commission determines (i) to be appropriate, and (ii) to be required for a full and true disclosure with respect to such issues.

15 U.S.C. § 57a(c)(l)(B).

26

. Section 18(c)(2)(B) provides that the Commission may prescribe rules that include

requirements that any cross-examination to which a person may be entitled under paragraph (1) be conducted by the Commission on behalf of that person in such manner as the Commission determines (i) to be appropriate, and (ii) to be required for a full and true disclosure with respect to disputed issues of material fact.

15 U.S.C. § 57a(c)(2)(B).

27

. The Administrative Conference of the United States (ACUS) is empowered to study administrative procedure and to make recommendations about administrative procedure to the President, the Congress, or the Judicial Conference of the United States. 5 U.S.C. § 574(1) (1976). Congress specifically asked ACUS to study and to evaluate the procedures of § 18. See Magnuson-Moss Act, Pub.L.No. 93-637, § 202(d), 88 Stat. 2198 (1975), as amended by Act of Nov. 1, 1978, Pub.L.No. 95-558, 92 Stat. 2130, reprinted in 15 U.S.C.A. § 57a note (West Supp. 1979).

28

. Appellants’ Supplemental Memorandum, Attachment 8, at 2.

29

. While the House version of the MagnusonMoss Act was pending, Chairman Scalia commented upon the bill, which at that time allowed cross-examination “as may be required for a full and true disclosure of all disputed issues of material fact.” See H.R.Rep.No. 93-1107, 93d Cong., 2d Sess. 13 (1974), U.S.Code Cong. & Admin.News 1974, p. 7702, Scalia suggested that the proposed House provision would be unworkable because it would routinely require use of “a procedural technique designed for the resolution of particularized factual disputes” in the formulation of generally applicable rulemaking. Appellants’ Supplemental Memorandum, Attachment 9, at 1. Scalia noted, however, that evidentiary proceedings might be appropriate for the resolution of “specific facts.” Id. at 2. Chairman Scalia’s successor, Robert Anthony, repeated these views in a subsequent letter to Congressman Staggers, a member of the Conference Committee. Appellants’ Supplemental Memorandum, Attachment 10.

The Conference Committee changed § 18 to allow cross-examination if there “are disputed issues' of material fact, and . . . it is necessary to resolve such issues.” See H.R.Rep. No.93-1606, supra note 19, at 33. As we previously noted, the Conference Report defined material issues of disputed fact as specific fact. See pp.---- of 201 U.S.App.D.C., pp. 1163-1164 of 627 F.2d supra. After the final version of the Magnuson-Moss Act passed both houses of Congress, but prior to presidential action, the Office of Management and Budget requested ACUS’s comments on the bill. ACUS Executive Secretary Richard K. Berg stated:

If the courts look to the Conference report as an authoritative interpretation of the statutory phrase “disputed issues of fact,” the problem of the Commission bogging down in excessive trial-type procedures is greatly reduced. Since consideration of many, if not most proposed rules of general applicability involve exclusively questions of legislative fact, the Commission would often be able to dispense with cross-examination entirely.

Appellants’ Supplemental Memorandum, Attachment 11, at 2.

30

. Rulemaking under the APA similarly embodies the delegation of .legislative authority to administrative agencies. During debate preceding passage of the APA, Representative Walters, chairman of the subcommittee that reported the APA to the House, see 92 Cong. Rec. 5655 (1946), explained that rulemaking encompasses

the legislative functions of administrative agencies, where they issue general or particular regulations which in form or effect are like the statutes of the Congress. . Congress — if it had the time, the staff, and the organization — might itself prescribe these things. Because Congress does not do so itself and yet desires that these things be done, the legislative power to do them has been conferred upon administrative officers or agencies.

Id. at 5648.

31

. See Cafeteria & Restaurant Workers Local 473 v. McElroy, 367 U.S. 886, 895, 81 S.Ct. *11661743, 1748, 6 L.Ed.2d 1230 (1961) (“[t]he very nature of due process negates any concept of inflexible procedures universally applicable to every imaginable situation”).

32

. The Conference Report explained that “[b]ecause the prohibition of section 5 of the Act is so broad, trade regulation rules are needed to define with specificity conduct that violates the statute and to establish requirements to prevent unlawful conduct.” H.R.Rep.No. 93-1606, supra note 19, at 31.

33

. Two commentators have explained the practical significance of the Commission’s power to adopt legislative rules:

Ordinarily, when the FTC encounters a business practice it considers deceptive, it issues a complaint against the responsible company. If the recipient is not prepared to change its practices, the matter is set for a trial-type hearing at which the Commission bears the burden of showing that the respondent’s practices have deceived, or are likely to deceive, a substantial number of purchasers. Counsel for the Commission customarily must introduce evidence sufficient to support the complaint’s theory of deception. In the Petroleum Refiners context, this would mean that Commission counsel would attempt to show the wide range of octane levels among marketed gasolines, general consumer ignorance of the ratings of specific brands, the waste of purchasing more octane than one’s car engine requires, and, probably, the tendency of consumers, in the absence of information, to purchase more octane than their cars require. On each of these issues the respondent would be entitled to present evidence and cross-examine witnesses. Following the evidentiary hearing the Commission would make findings of fact and decide whether the facts found demonstrated a violation. If the Commission concluded that they did, its decision would be subject to limited court review. Probably the most important feature of this process, from the respondent’s viewpoint, is the assurance of an opportunity to present his own evidence and cross-examine adverse witnesses on the central factual issues in the case.
What procedure may the Commission follow now that its authority to adopt the octane-posting rule has been upheld? The basic procedural steps remain essentially unchanged, but the issues to be litigated are narrowed significantly. If any gasoline distributors fail to comply with the rule, the Commission must initiate the complaint, hearing, decision, and court review process previously outlined against each one. However, assuming the Commission’s rule is valid, it need only show that the respondent has failed to comply with the rule — not that his omission of octane ratings is deceptive under § 5. The Commission will have established the necessary factual predicate for its judgment — that such omission is deceptive — in the original rulemaking proceeding. The respondent may of course present evidence and cross-examine on the issue of whether the required postings were made, but he will not be allowed to relitigate the factual premises underlying the Commission’s rule.

J. Mashaw & R. Merrill, The American Public Law System 247-48 (1975). See United States v. Storer Broadcasting Co., 351 U.S. 192, 201-03, 76 S.Ct. 763, 100 L.Ed. 1081 (1956).

34

. Appellants’ Supplemental Memorandum, Attachment 11, at 2. Then-Chairman Robert Anthony, in a letter to Congressman Staggers, explained:

The Food and Drug Administration is required to use trial-type techniques for much of its general rulemaking pertaining to standards for food products. No proceeding subject to this requirement has been completed in less than two years; two have taken more than ten years; a hearing transcript of over 7,700 pages has been devoted exclusively to the question whether peanut butter should consist of 87‘/2 percent or 90 percent peanuts.

Id.

Many recent commentators have echoed ACUS’s view that full use of formal rulemaking provisions unnecessarily hampers the administrative process. See, e. g., 1 K. Davis, supra note 18, § 6:8; G. Robinson & E. Gellhom, The Administrative Process 542 n. 47 (1974); Hamilton, Rulemaking on a Record by the Food and Drug Administration, 50 Tex.L.Rev. 1132, 1153-56 (1972).

35

. The requirements imposed by § 18 that are not mandated by § 553 of the APA include the following:

(1) The Commission must publish a “notice of proposed rulemaking stating with particularity the reason for the proposed rule.” 15 U.S.C. § 57a(b)(l). Section 553(b) requires issuance of a “[gjeneral notice of proposed rule making” with certain exceptions. 5 U.S.C. § 553(b).
(2) The Commission must allow public comment and must “make all such submissions publicly available.” 15 U.S.C. § 57a(b)(2). Section 553 does not have an analogous publication requirement. 5 U.S.C. § 553(b).
(3) The Commission must conduct an informal hearing at which an interested person is entitled “to present his position orally or by documentary submissions (or both).” 15 U.S.C. § 57a(c)(l)(A). If the Commission determines disputed issues of material fact exist, then such persons have such a right to rebuttal and cross-examination as is (i) appropriate and (ii) “required for a full and true disclosure with respect to such issues.” 15 U.S.C. § 57a(c)(l)(B). The Commission is given the explicit, additional authority to “prescribe such rules and make such rulings ... as may tend to avoid unnecessary costs or delay,” including “reasonable time limits on each interested person’s oral presentations.” 15 U.S.C. § 57a(c)(2). Under appropriate conditions, the Commission may also limit the representation of a group of persons who “have the same or similar interests . . . .” 15 U.S.C. § 57a(c)(3)(A).
Section 553(c) merely requires that “the agency shall give interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity for oral presentation.” 5 U.S.C. § 553(c).
(4) The Commission must include in its statement of basis and purpose that accompanies a rule:
(A) a statement as to the prevalence of the acts or practices treated by the rule; (B) a statement as to the manner and context in which such acts or practices are unfair or deceptive; and (C) a statement as to the economic effect of the rule, taking into account the effect on small business and consumers.
15 U.S.C. § 57a(d)(l). Section 553(c) requires an agency only to issue a statement of basis and purpose. 5 U.S.C. § 553(c).
(5) A reviewing court must set aside a Commission decision “not supported by substantial evidence in the rulemaking record taken as a whole.” 15 U.S.C. § 57a(e)(3)(A). The rulemaking record consists of the rule, the statement of basis and purpose, the transcript of the hearing, any written submissions, and “any other information which the Commission considers relevant to [the] rule.” 15 U.S.C. § 57a(e)(l)(B). A reviewing court must also *1168set aside a rule when the Commission’s rulings on rebuttal and cross-examination have “precluded disclosure of disputed material facts . . necessary for fair determination by the Commission of the rulemaking proceeding taken as a whole.” 15 U.S.C. § 57a(e)(3). A court reviewing rulemaking conducted pursuant to § 553 will set aside an agency decision that is arbitrary or capricious or “without observance of procedure required by law.” 5 U.S.C. § 706(2)(A), (D).

36

. See pp. --- of 201 U.S.App.D.C., pp. 1161-1163 of 627 F.2d supra.

37

. American Airlines, Inc. v. CAB, 123 U.S.App.D.C. 310, 319, 359 F.2d 624, 633 (D.C.Cir.1966) (en banc).

38

. See 1 Senate Comm, on Gov’t Operations, 95th Cong., 1st Sess., Study on Federal Regulations 156-61 (1978) (recommending that regulatory philosophy be a principal factor in selec*1169tion of administrators). As one commentator has observed in a slightly different context:

Agencies are created to maintain or to restructure certain areas of private activity in light of expressed statutory policies. Thus, unlike courts, agencies should be positive actors, not passive adjudicators. . [A]n agency should not apologize for being predisposed to implementing the goals that Congress has set for it. To call such an attitude “bias” misses this central point.

Pedersen, The Decline of Separation of Functions in Regulatory Agencies, 64 Va.L.Rev. 991, 994 (1978).

39

. The APA provisions governing adjudication accordingly impose limitations on administrators not placed on rulemakers. Section 554(d) prohibits ex parte contacts between prosecutors and administrators within the same agency. 5 U.S.C. § 554(d). This separation-of-functions provision does not apply in either informal or formal rulemaking. See Hercules, Inc. v. EPA, 194 U.S.App.D.C. 172, 205-206, 598 F.2d 91, 124-25 (D.C.Cir.1978). The Attorney General’s Manual on the Administrative Procedure Act 15 (1947) attributes this distinction to the difference between the roles of rulemakers and adjudicators:

Even in formal rule making proceedings subject to sections [556 and 557], the Act leaves the hearing officer entirely free to consult with any other member of the agency’s staff. In fact, the intermediate decision may be made by the agency itself or by a responsible officer other than the hearing officer. This reflects the fact that the purpose of the rule making proceeding is to determine policy. Policy is not made in Federal agencies by individual hearing examiners; rather it is formulated by the agency heads relying heavily upon the expert staffs which have been hired for that purpose. And so the Act recognizes that in rule making the intermediate decisions will be more useful to the parties in advising them of the real issues in the case if such decisions reflect the views of the agency heads or of their responsible officers who assist them in determining policy. In sharp contrast is the procedure required in cases of adjudication subject to section [554(d)]. There the hearing officer who presides at the hearing and observes the witnesses must personally prepare the initial or recommended decision required by section [557]., Also, in such adjudicatory cases, the agency officers who performed investigative or prosecuting functions in that or a factually related case may not participate in the making of decisions. These requirements reflect the characteristics of adjudication ....

See generally Pedersen, supra note 38, at 996-1001.

40

. In Home Box Office, a panel of this court ruled that “communications which are received [by an agency] prior to issuance of a formal notice of rulemaking do not, in general, have to be put in a public file,” although discussions following publication of a notice of rulemaking must be so filed. 185 U.S.App.D.C. at 190, 567 F.2d at 57. Later, another panel questioned the wisdom of even this restriction on ex parte contacts in rulemaking. See Action for Children’s Television v. FCC, 183 U.S.App.D.C. 437, 564 F.2d 458 (D.C.Cir. 1977). Two other cases have faced similar situations and reached differing conclusions. Compare United States Lines, Inc. v. FMC, 189 U.S.App.D.C. 361, 378-385, 584 F.2d 519, 536-43 (D.C.Cir.1978), with Hercules, Inc. v. EPA, 194 U.S.App.D.C. 172, 204-209, 598 F.2d 91, 123-28 (D.C.Cir.1978). We need not reach the question of whether Home Box Office is indeed the law of this circuit, for in this case, Chairman Pertschuk’s remarks preceded the Commission’s notice of proposed rulemaking, see pp.--- of 201 U.S.App.D.C., p. 1155 of 627 F.2d supra, p. - of 201 U.S.App.D.C., p. 1173 of 627 F.2d infra, and, as just noted, Home Box Office by its own terms does not apply to this situation.

41

. The Court gave three reasons why the school board could not be disqualified from deciding whether teachers participating in a strike prohibited by law should be discharged: (1) the school board did not have a financial or personal stake in the decision, see, e. g., Ward v. Village of Monroeville, 409 U.S. 57, 93 S.Ct. 80, 34 L.Ed.2d 267 (1972); Mayberry v. Pennsylvania, 400 U.S. 455, 91 S.Ct. 499, 27 L.Ed.2d 532 (1971); (2) in the absence of a showing that a decisionmaker is incapable of judging a particular controversy fairly, he will not be disqualified because of “[m]ere familiarity with the facts of a case” or his having taken a position on a policy issue; and (3) the legitimate government interest in preserving the school board as the creator of local policy would be thwarted if familiarity with the factual circumstances of the contract negotiations forced disqualification. 426 U.S. at 491-96, 96 S.Ct. at 2314.

42

. As a separate ground, the Court noted that disqualification of the entire Commission would “immunize” the trade association from regulation under the Federal Trade Commission Act. 333 U.S. at 701-02, 68 S.Ct. 793.

43

. See generally Carolina Environmental Study Group v. United States, 166 U.S.App.D.C. 416, 421, 510 F.2d 796, 801 (D.C.Cir.1975) (due process challenge to Atomic Energy Commission’s order allowing construction of nuclear power plants on basis of agency’s “promotional bias” favoring use of atomic energy rejected because “[ajgencies are required to consider in good faith, and to objectively evaluate, arguments presented to them; agency officials, however, need not be subjectively impartial”).

44

. See note 56 infra.

45

. A. at 39.

46

. FTC v. Sperry & Hutchinson Co., 405 U.S. 233, 244, 92 S.Ct. 898, 31 L.Ed.2d 170 (1972).

47

. A. at 44.

48

. Id. at 42.

49

. Id. at 46.

50

. Id.

51

. Even judges are free to decide cases involving policy questions on which they previously have expressed a view. Laird v. Tatum, 408 U.S. 1, 92 S.Ct. 2318, 33 L.Ed.2d 154 (1972), is particularly illustrative. In that case, the petitioners attacked on first amendment grounds the constitutionality of the Army’s collection of information about public activities thought to have some potential for civil disorder. The Supreme Court held, by a 5-4 vote, that the jurisdiction of a federal court could not be invoked by "a complainant who alleges that the exercise of his First Amendment rights is being *1172chilled by the mere existence, without more, of a governmental investigative and data-gathering activity that is alleged to be broader in scope than is reasonably necessary for the accomplishment of a valid governmental purpose.” Id. at 10, 92 S.Ct. at 2324.

Following the Court’s decision, the petitioners asked Justice Rehnquist, who was a member of the majority, to recuse himself, nunc pro tunc, on the basis of earlier statements he had made on the constitutionality of governmental surveillance. Justice Rehnquist, before his nomination and confirmation as an Associate Justice of the Supreme Court, had testified before a Senate subcommittee as a representative of the Justice Department. The hearings were called to consider, inter alia, the authority of the Executive Branch to gather information. In the course of his testimony, Justice Rehnquist concluded that domestic surveillance was constitutional.

In a separate memorandum, Justice Rehnquist dismissed the contention that he should disqualify himself because he had expressed views contrary to the legal position of the petitioner in Laird v. Tatum. He surveyed the actions of Justices in this century and concluded that “none of the former Justices of this Court since [enactment of the judicial disqualification statute] have followed a practice of disqualifying themselves in cases involving points of law with respect to which they had expressed an opinion or formulated policy prior to ascending to the bench.” Laird v. Tatum, 409 U.S. 824, 831, 93 S.Ct. 7, 11, 34 L.Ed.2d 50 (1972) (memorandum of Rehnquist, J.). Indeed, Justice Rehnquist suggested that

[i]t would not be merely unusual, but extraordinary, if [Justices] had not at least given opinions as to constitutional issues in their previous legal careers. Proof that a Justice’s mind at the time he joined the Court was a complete tabula rasa in the area of constitutional adjudication would be evidence of lack of qualification, not lack of bias.

Id. at 835, 93 S.Ct. at 13-14.

Justice Rehnquist’s opinion is in full accord with the general principle that a federal judge will not be disqualified pursuant to 28 U.S.C. § 144 or § 455 (1976) because of prior expression of views on a legal question. See, e. g., Antonello v. Wunsch, 500 F.2d 1260, 1262 (10th Cir. 1974); Goodpasture v. TVA, 434 F.2d 760, 765 (6th Cir. 1970); Knoll v. Socony Mobil Oil Co., 369 F.2d 425, 430 (10th Cir. 1966); Knapp v. Kinsey, 232 F.2d 458, 466 (6th Cir.), cert. denied, 352 U.S. 892, 77 S.Ct. 131, 1 L.Ed.2d 86 (1956); Loew’s, Inc. v. Cole, 185 F.2d 641, 646 (9th Cir. 1950).

A contrary result in this case would create an anomaly between administrative policymakers, who would be barred from discussion of legislative fact prior to promulgation of a notice of proposed rulemaking, and judges, who are free to discuss policy questions and to take judicial notice of legislative fact. See note 24 supra. Due process, which recognizes a distinction between judges and rulemakers, allows rule-makers greater freedom. See pp.---, --- of 201 U.S.App.D.C., pp. 1162-1163, 1165-1166 of 627 F.2d supra.

52

. In Cinderella, Chairman Dixon had referred specifically to the adjudication pending before the Commission and had prejudged precise factual issues. See pp.---of 201 U.S.App.D.C., pp. 1158-1159 of 627 F.2d supra.

53

. Statement of Basis and Purpose of Trade 1 Regulation Rule 408, Unfair or Deceptive Advertising and Labeling of Cigarettes in Relation to the Health Hazards of Smoking, 29 Fed.Reg. 8355 (1964), quoted in FTC v. Sperry & Hutch*1173inson Co., 405 U.S. 233, 245 n. 5, 92 S.Ct. 898, 31 L.Ed.2d 170 (1972). See Pitofsky, Beyond Nader: Consumer Protection and the Regulation of Advertising, 90 Harv.L.Rev. 661, 681-87 (1977).

54

. See note 40 supra.

55

. See pp.---of 201 U.S.App.D.C., pp. 1171-1172 of 627 F.2d supra.

56

. A review of other materials relied upon by the appellees supports our conclusion. As a group, they demonstrate only that Chairman Pertschuk articulated the legal theory put forth in the ACT speech:

(1) A Commission press release, dated July 20, 1977, stated that Chairman Pertschuk had met with ACT representatives and had suggested that children’s advertising might be unfair without being deceptive because children “are a vulnerable population that may require special protection from advertisers.” A. at 33.

(2) Chairman Pertschuk was quoted, in a newspaper column, as stating that “a 4 to 5-year-old child . . may not understand what advertising is about.” Id. at 47.

(3) In an article published in Newsweek magazine, Chairman Pertschuk was quoted as saying that he was committed to taking action on the problem of commercialization of children and that “ [advertisers seize on the child’s trust and exploit it as a weakness for their gain.” Id. at 48.

(4) In an interview published in TV Guide, Chairman Pertschuk stated that children are not sophisticated consumers, noted that the Commission might have the power to limit certain children’s advertising, and predicted that “[a]s soon as the Commission proposes action” it will be involved in a long fight with advertisers. Id. at 50.

(5) In an article in the Wail Street Journal, two passages from Chairman Pertschuk’s ACT speech were quoted. Id. at 49.

(6) During an interview televised on the “Today Show,” Chairman Pertschuk engaged in the following colloquy with a viewer and interviewer Bob Abernathy:

SUSAN LOVETT: Mr. Pertschuk, I’d like to know what’s being done about advertising on TV for children and all the garbage that’s advertised for the kiddies.
PERTSCHUK: Well, I’m glad you asked the question. It’s an area of prime concern to me and to the Commission itself. There’s a very basic question in our society, and that is the question to which — the extent to which children are to be treated as commercial objects. One advertiser in New York described advertising directed to children as guided missiles, turning the children into guided missiles through the heart of the parent into its pocketbook.
*1174ABERNATHY: Is it your personal opinion that no television advertising, for instance, should be directed at children?
PERTSCHUK: I have some serious doubt as to whether any television advertising should be directed at a three or four or five year old, a preschooler. They’re not competent to understand the nature of the message. We’ve never treated children as commercial objects in our society. And of course, print advertising only reaches those who can read. But television advertising in the home, directed to children, is a new phenomenon in our society, and I think a troublesome one.
ABERNATHY: Would you like to see the FTC ban it altogether?
PERTSCHUK: Not necessarily. But we’ve not excluded the possibility of bans on certain advertising of certain products to children.
The Trade Commission has not, as a body — you know, there are four other commissioners who must address this issue for the Commission to act — has not, as a body, yet approached the question of the remedy for the evils we see in children’s advertising. We’ll do that next month.

Id. at 31.

(7) In three letters dated the day after delivery of the ACT speech, Chairman Pertschuk said that the speech set forth the legal underpinnings for Commission action against children’s advertising. Id. at 71-73.

(8) In a letter to Food and Drug Commissioner Donald Kennedy, Chairman Pertschuk outlined the logical steps underlying the legal theory that children’s advertising is unfair. In particular, he noted that the Commission would have to be able to demonstrate “that there is a substantial health controversy regarding the health consequences of sugar.”

Id. at 95.

None of these materials significantly adds to the legal theory presented in the ACT speech, nor do they raise issues of legislative fact not addressed therein.

1

. FTC v. Cement Institute, 333 U.S. 683, 701, 68 S.Ct. 793, 92 L.Ed. 1010 (1948) (Commission’s expression of views).

LEVENTHAL, Circuit Judge, concurring:

I concur in Judge Tamm’s opinion for the court. It makes important contributions to our understanding of the issues. My comments on the merits are to add the perspective that a concurring opinion sometimes permits. On the jurisdictional issues, I have additional views which in the end I do not present for this ease but set forth to govern future proceedings.

A.

The ultimate test announced by Judge Tamm as to the merits is that disqualification from a rulemaking proceeding results “only when there has been a clear and convincing showing that [the agency member] has an unalterably closed mind on matters critical to the disposition of the [proceeding].” The test reflects a Supreme Court ruling as to administrative agencies.1

It is not far removed from the test used in considering challenges to those considered for the duty as jurors quintessentially engaged in specific fact-finding.2 It is similar to a standard articulated as to recusal of judges.3

The application of this test to agencies must take into account important differences in function and functioning between the agencies and court systems. In fulfilling the functions of applying or considering the validity of a statute, or a government program, the judge endeavors to put aside personal views as to the desirability of the law or program, and he is not disqualified because he personally deems the program laudable4 or objectionable.5 In the case of agency rulemaking, however, the decisionmakingofficials are appointed precisely to implement statutory programs, and with the expectation that they have a personal disposition to enforce them vigilantly and effectively. They work with a combination rather than a separation of functions, in legislative modes, and take action on the basis of information coming from many sources, even though that provides a mindset before a proceeding is begun, subject to reconsideration in the light of the proceeding.

Judge Tamm’s opinion for the court ventilates important distinctions between rule-making and adjudication and their consequences in terms of standards of disqualification, and the differences between adjudicative facts pertinent to specific parties and generalized legislative facts, including predictions and underlying views on policy. As Judge Tamm notes, the differences generally identify differences in procedure required for their determination.6 The difference in nature of issues persists, ' .as Judge Tamm points out, even though some of the tasks of rulemaking are carried out with adaptations of adjudicative forms, *1176whether this additional procedure is adopted voluntarily by the agency, as has sometimes been the case, or is required by court or legislation.

The provisions of the Moss-Magnuson Act have been widely recognized as in effect incorporating into statutory law the approach identified in a number of decisions, primarily decisions of this court. Those decisions set forth the proposition that although rulemaking generally proceeds merely upon the basis of written comment on a proposal, some specific issues are of such a nature that meaningful opportunity for comment requires additional scope for presentation, perhaps by oral submission in the form of a legislative hearing, perhaps by cross-examination in matters involving a specific factual issue where meaningful comment requires a predicate of probing the basis for the contrary views. The train of opinions in this circuit runs from American Airlines, through Holm v. Hardin, to International Harvester, which had the highest visibility and became the focal point of discussion.7

It is fair to say that in all of our opinions the assumption was that particular issues might require additional procedures, if they were contested, but that the basic framework of the rulemaking proceeding as one primarily dependent on general policy formulation was unaffected by the particular procedures. Of course, there remains a requirement of fairness for those with authority to act by rulemaking but the standards are not identical with those pertinent for judicial-type decisionmaking in adjudicatory actions.

Consider, for example, the assertions of an agency head that he discerns abuses that may require corrective regulation. One can hypothesize beginning an adjudicatory proceeding with an open mind, indeed a blank mind, a tabula rasa devoid of any previous knowledge of the matter. In sharp contrast, one cannot even conceive of an agency conducting a rulemaking proceeding unless it had delved into the subject sufficiently to become concerned that there was an evil or abuse that required regulatory response. It would be the height of absurdity, even a kind of abuse of administrative process, for an agency to embroil interested parties in a rulemaking proceeding, without some initial concern that there was an abuse that needed remedying, a concern that would be set forth in the accompanying statement of the purpose of the proposed rule.

In its administrative setting an agency’s effort is not limited to one type of activity. Investigation and policy-making are integral to the total function just as much as decisionmaking. It is appropriate and indeed mandatory for agency heads and staff to maintain contacts with industry and consumer groups, trade associations and press, congressmen of various persuasions, and to present views in interviews, speeches, meetings, conventions, and testimony. The agency gathers information and perceptions in a myriad of ways and must use it for a myriad of purposes.8 With capacity and *1177willingness to reconsider there is no basis for disqualification.

The tests of disqualification cannot be applied identically for judges and agency heads, for reasons already identified. Yet even judges are not disqualified merely because they have previously announced their positions on legal issues,9 even as to announcements outside the course of written decisions.10 Judicial disqualification cannot be based on general frame of reference, attitudes or assumptions as to the processes of society.11 And even a judge’s public comment giving a general impression of a state of facts does not present a rigidity against refinement and reflection that disqualifies him from sitting in judgment on a particular fact issue.12

B.

I now turn to what I consider a jurisdictional problem. In part it is addressed in part II of Judge Tamm’s opinion, dealing with the doctrine of exhaustion of administrative remedies. I concur in many of Judge Tamm’s observations, and the court’s result. But my analysis is somewhat different.

The jurisdictional problems that concern me are first, whether, and under what circumstances, a Federal court has jurisdiction of an action to halt ongoing proceedings before an “agency” of the United States on the ground that they reflect impermissible bias or prejudice, and second, whether this can ever be done by a district court that has no jurisdiction to review the agency’s final actions.

The doctrine of exhaustion of administrative remedies, which Judge Tamm discusses, is a judge-made prudential doctrine — a “rule of judicial administration that no one is entitled to judicial relief for a supposed or threatened injury until the prescribed administrative remedy has been exhausted.” Myers v. Bethlehem Shipbuilding Corp., 303 U.S. 41, 50-51, 58 S.Ct. 459, 463, 82 L.Ed. 638 (1938). The Court gave little weight to the claim “that the mere holding of the prescribed administrative hearing would result in irreparable damage.” 303 U.S. at 51, 58 S.Ct. at 464.

The jurisdictional difficulty arises out of the requirement of finality, a related doctrine which also comes into play in this case, and which overlaps the requirement of exhaustion of administrative remedies but is analytically distinct. One requirement may be applicable even when the other is not.

*1178The Administrative Procedure Act provides, § 10(c), now 5 U.S.C. § 704: “Agency action made reviewable by statute and final agency action for which there is no other adequate remedy in a court are subject to judicial review. A preliminary, procedural, or intermediate agency action or ruling not directly reviewable is subject to review on the review of the final agency action.” Statutes with special provisions for judicial review reflect the the same basic approach, of limiting review to final actions, and that is the case for the Moss-Magnuson Act’s provision for judicial review (in the court of appeals) of FTC rulemaking.13

Section 10(c) of the APA is a generalized provision for judicial review by the district court where no other form of judicial review is prescribed by Congress. But it requires more than exhaustion of administrative remedies, it also requires a final agency action. Association of National Advertisers, Inc. v. FTC, 565 F.2d 237 (2nd Cir.1977). It is elementary that the mere conduct of proceedings on a proposal of a rule, which may never be adopted or enforced, is not final action, and a court will not enjoin a rulemaking proceeding on a claim that the agency had no statutory or constitutional authority to promulgate the proposed rule. Bristol-Myers Co. v. FTC, 138 U.S.App.D.C. 22, 27, 424 F.2d 935, 940, cert. denied, 400 U.S. 824, 91 S.Ct. 46, 27 L.Ed.2d 52 (1970).

If a proceeding should eventuate in a rule that a party opposes, the party may challenge the final action adopting the rule on the ground that the rule is defective for reasons of disqualification of a member. Accordingly, this is not a case of agency action (other than final action) “for which there is no other adequate remedy in a court.” Only in rare instances is a non-final agency action reviewed in the teeth of a general denial of jurisdiction. In Leedom v. Kyne, 358 U.S. 184, 79 S.Ct. 180, 3 L.Ed.2d 210 (1958) the Court was willing to bypass a general jurisdictional barrier when an agency clearly violated an express statutory prohibition. But the Leedom exception “is a narrow one.”14 It is reserved for the kind of clear case that identified the original doctrine of mandamus.

A court must disclaim jurisdiction notwithstanding the claim that action already taken realistically means that the ongoing proceeding will be waste motion and will have to be done over again. This is “part of the price we pay for the advantages of an administrative process” and preferable to having the process “clogged if there were interlocutory appeals to the courts.” Thermal Ecology Must Be Preserved v. Atomic Energy Comm., 139 U.S.App.D.C. 366, 368, 433 F.2d 524, 526 (1970). That opinion noted the possibility of an exception “in extreme instances where the action is held to constitute an effective deprivation of appellant’s rights.” Id. See also Sterling Drug, Inc. v. FTC, 146 U.S.App.D.C. 237, 250, 450 F.2d 698, 711 (1971).

Given these strong walls of jurisdictional barriers, and narrow gates of entrance, it is time to turn to the situation of a claim of prejudice or bias alleged to infect an agency proceeding at its core.

When a claim of bias is filed against a trial judge, his refusal to recuse himself is not appealable, there being no final order. However, there has been some tendency of the appellate courts to accept jurisdiction of the claim, notwithstanding their general *1179confinement to review of final orders, of district courts, by reference to consider the matter on application for a writ of mandamus, at least in unusual cases, with jurisdiction predicated on the All-Writs Act, 28 U.S.C. § 1651.15 That jurisdiction is not routinely invoked, and rulings are generally phrased in terms of “exceptional circumstances.” 16 Mandamus was denied in Mitchell v. Sirica, 163 U.S.App.D.C. 373, 502 F.2d 375, cert. denied, 418 U.S. 955, 94 S.Ct. 3232, 41 L.Ed.2d 1177 (1974), notwithstanding the view of the dissent that the case was one of the “really- extraordinary cases” that warrant mandamus, and that mandamus was appropriate under the All-Writs Act in cases “which are subject to our eventual appellate jurisdiction.” (163 U.S.App. D.C. at 385, 502 F.2d at 387).

Even assuming arguendo that the case is one which this court would consider at an interlocutory stage as to a request for disqualification of a judge, it by no means follows that a court has jurisdiction to intervene in an ongoing administrative process. The courts have a limited supervisory province as to agencies,17 but it is not as direct as the supervision of appellate courts over trial courts, and there are distinct limitations on available judicial remedies. Vermont Yankee Nuclear Power Corp. v. National Resources Defense Fund, 435 U.S. 519, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978); FCC v. Pottsville Broadcasting & Co., 309 U.S. 134, 60 S.Ct. 437, 84 L.Ed.2d 656 (1940); Greater Boston TV Corp. v. FCC (II), 149 U.S.App.D.C. 322, 335, 463 F.2d 268, 281 (1971).

If there is to be an analogy to an expansion of mandamus of district judges, based on the existence of the appellate court’s prospective jurisdiction, the jurisdiction would not lie in the district court, but in the court of appeals, which is where Congress had lodged general jurisdiction to review FTC orders and rules, 15 U.S.C. § 57a. To the extent that the All Writs Act has been used in connection with FTC matters, it is the court of appeals that has been found to have the power to grant relief. FTC v. Dean Foods Co., 384 U.S. 597, 86 S.Ct. 1738, 16 L.Ed.2d 802 (1966). On this thesis I posit a total lack of jurisdiction in the district court to consider the merits of plaintiff’s case in any way or to any extent. Thus, even if this case fell within an exception to the finality requirement, jurisdiction to consider the interlocutory action would lie in this court and not the district court. But I recognize that this thesis has not previously been identified by the court and was not perceived in the 1962 Amos Treat decision, to be discussed below. Amos Treat issued prior to the Supreme Court’s Dean Foods decision and is subject to reconsideration on this point.18 But since this point is novel, and was not argued, I agree that it should not be given effect retrospectively.

Reverting to issues of bias or prejudice, this court has basically exercised its supervision in the context of review of final orders, Cinderella Career & Finishing Schools, Inc. v. FTC, 138 U.S.App.D.C. 152, 425 F.2d 583 (1970); Texaco, Inc. v. FTC, 118 U.S.App.D.C. 366, 336 F.2d 754 (1964), vacated and remanded on other grounds, 381 U.S. 739, 85 S.Ct. 1798, 14 L.Ed.2d 714 (1965).

To the extent that there is any judicial jurisdiction to halt an ongoing agency proceeding — or what is the equivalent, to enter a declaratory judgment that it cannot result in a valid final action — that jurisdiction, whether exercised by this court or (let it be assumed) by a district court, is available only in a limited class of cases, not including the case at bar. There is always *1180some problem of analysis when a court’s determination of whether it has jurisdiction requires it to take a “peek at the merits.” 19 But I think the doctrine can be etched fairly clearly.

The precedent primarily relied on by plaintiffs is Amos Treat & Co. v. SEC, 113 U.S.App.D.C. 100, 306 F.2d 260 (1962). The court enjoined an adjudicatory proceeding because one of the commissioners who-had participated in certain rulings had previously, as a member of the staff, participated in the investigation. That decision was a ruling of a structural incapacity, which was necessary for a “fair trial” (113 U.S.App.D.C. at 103, 306 F.2d at 263). The next year another panel, Judges Bazelon, Bastían and Burger, described it as an “exceptional” case, SEC v. R. A. Holman & Co., 116 U.S.App.D.C. 279, 323 F.2d 284, cert. denied, 375 U.S. 943, 84 S.Ct. 350, 11 L.Ed.2d 274 (1963). In Holman the court refused to halt an SEC adjudicatory proceeding on the ground that one of the commissioners had headed a division with responsibility over the registration statement involved. In Associated Press v. FCC, 145 U.S.App.D.C. 172, 448 F.2d 1095 (1971), the court followed Holman, not Amos Treat. And in Sterling Drug, Inc. v. FTC, 146 U.S.App.D.C. 237, 450 F.2d 698 (1971), the court followed Holman and referred to Amos Treat as a ease “where the agency has very clearly violated an important constitutional or statutory right.” (146 U.S.App.D.C. at 249, 450 F.2d at 710) (emphasis added).

The only instance where Amos Treat was followed, in terms of judicial intercession at a non-final stage, was Fitzgerald v. Hampton, 152 U.S.App.D.C. 1, 467 F.2d 755 (1972), and that, too, was a structural violation— the denial of a public hearing.

If a federal court, district or appellate, is to take jurisdiction before final agency action, it can only be in a case of “clear right” such as outright violation of a clear statutory provision (Leedom) or violation of basic rights established by a structural flaw, and not requiring in any way a consideration of interrelated aspects of the merits — which can only be done appropriately on review of a final order. This statement of the doctrine of the exceptions to finality is etched more sharply here than in some of our previous opinions, though it is offered as an accurate statement of what the opinions as a whole were driving at. However, this sharpening of doctrine has aspects of novelty, since earlier expressions referred to denial of basic rights and did not articulate the qualifications of structural flaw, or defiance of an outright prohibition. On that basis, as will be indicated below, I am prepared to agree that the district court’s acceptance of jurisdiction not be rescinded retroactively,, and to acquiesce in its taking jurisdiction. That still leaves us, however, with the necessity to determine whether the judicial ruling (of disqualification) was proper on the merits. And it was not proper, in my view, for reasons developed in Judge Tamm’s opinion for the court.

A strict logician might have ground to attack this concept of a jurisdictional ruling announced for the future. In the same way, a strict logician could assail the doctrine whereby courts deliberately decide, on prudential grounds, to pass over jurisdictional questions and to dispose of a case on the merits. But that doctrine is alive, and fortified by pragmatic considerations involved in sound judicial administration.20

The case at bar is one where the very inquiry posed by plaintiff obviously requires some analysis of the views expressed by Chairman Pertschuk, and comparison with the issues as they will actually be focused in the ongoing proceeding. The Government *1181puts forward substantial considerations in justification of Chairman Pertschuk’s remarks — the proper purpose of calling the public’s attention to possible abuses and to factors enhancing public understanding, the propriety of a hortatory role on a wide range of issues, the breadth of the underlying policy issues, as contrasted with the quality of rulings on specific, adjudicative effects (with the' corollary likelihood of specific condemnation and stigma). But even if one pretermits all such considerations, the actual conduct of the proceeding may bear significantly on the relationship of the remarks to ultimate issues, let alone dispositions, which are necessary aspects of any claim of prejudicial bias.

These factors make it clear to me that any residue of the Amos Treat doctrine is inapplicable to this case.

C.

If this matter were to arise subsequent to the instant decision, it would in my view have been obligatory of the district court to deny jurisdiction, even assuming prefinality intervention as to the FTC is not confined to a circuit court of appeals, because this was not a case involving a defiance of an explicit statute, or a structural flaw denying basic rights. And in the future any exercise of jurisdiction by a district court should be reversed by a judgment vacating the district court’s order, with instructions to dismiss for lack of jurisdiction. However, in this case I join in the order of reversal. This is partly due to the area of doubt left in the wake of our previous rulings, including Amos Treat and Fitzgerald, making it proper to consider that a more firm rule of prohibiting consideration of the merits should be announced for prospective application, under the Sunburst21 approach — so as to avoid undoing a ruling of district court jurisdiction to consider the merits, that was not unreasonable when made. Reinforcing our decision to consider the merits in this case is the fact that under its not unreasonable assertion of jurisdiction the district court issued a ruling on the merits that for more than a year22 has constituted a stain on the FTC proceeding. That stain would persist if the appellate court confined itself to a jurisdictional ruling, to the detriment of sound governmental process.

2

. The test is whether “the juror can lay aside his impression or opinion and render a verdict based on the evidence presented in court.” Dobbert v. Florida, 432 U.S. 282, 302, 97 S.Ct. 2290, 2303, 53 L.Ed.2d 344 (1977); Murphy v. Florida, 421 U.S. 794, 800, 95 S.Ct. 2031, 44 L.Ed.2d 589 (1975); Irvin v. Dowd, 366 U.S. 717, 722-23, 81 S.Ct. 1639, 6 L.Ed.2d 751 (1961); United States v. Haldeman, 181 U.S.App.D.C. 254, 283, 559 F.2d 31, 60 (1977) (en banc).

3

. United States v. Grinnell Corp., 384 U.S. 563, 583, 86 S.Ct. 1698, 1710, 16 L.Ed.2d 778 (1966) (“manifesting a closed mind on the merits,” as applied to views expressed after hearing some evidence).

4

. Eisler v. United States, 83 U.S.App.D.C. 315, 320, 170 F.2d 273, 278 (D.C.Cir.1948).

5

. Idaho v. Freeman, 478 F.Supp. 33 (D. Idaho, 1979).

6

. American Airlines, Inc. v. CAB, 123 U.S.App.D.C. 310, 359 F.2d 624 (D.C.Cir.1966) (en banc).

7

. American Airlines, Inc. v. CAB, 123 U.S.App.D.C. 310, 359 F.2d 624 (D.C.Cir.1966) (en banc); Walter Holm & Co. v. Hardin, 145 U.S.App.D.C. 347, 449 F.2d 1009 (D.C.Cir.1971) (Judges McGowan, Leventhal and Van Pelt); International Harvester Co. v. Ruckelshaus, 155 U.S.App.D.C. 411, 478 F.2d 615 (D.C.Cir.1973) (Judges Bazelon, Tamm and Leventhal).

8

. Ash Grove Cement Co. v. FTC, 577 F.2d 1368, 1375-1376 (9th Cir. 1978):

Information gathered by the Commission under its broad investigatory powers can be used for a variety of purposes, including promulgation of new rules, reporting to Congress, disseminating economic knowledge to the public, or, as here, to prepare an economic survey or report to enable the Commission to better administer the statutes over which it has jurisdiction. In addition, factual material compiled by the agency may call its attention to situations which warrant an adjudicative enforcement proceeding. Indeed, one of the purposes of industry investigations is to provide the agency with increased expertise in administering the law by exposing it to the factual background of relevant industries against which to judge individual mergers and acquisitions.
Likewise, the fact that some of the Commissioners’ conclusions expressed in the Enforcement Policy were mirrored in the complaint does not prove prejudgment. The Enforcement Policy was openly cautious to phrase its conclusions tentatively.

9

. FTC v. Cement Institute, 333 U.S. 683, 701, 68 S.Ct. 793, 92 L.Ed. 1010 (1948) (Court used judicial analogy in the course of holding that Commission’s expression of opinion on legality of a particular trade practice did not disqualify it from passing upon the lawfulness of the practice in an adjudicatory proceeding).

10

. Laird v. Tatum, 409 U.S. 824, 93 S.Ct. 7, 34 L.Ed.2d 50 (1972).

11

. “The great tides and currents which engulf the rest of men do not turn aside in their course, and pass the judges by.” B. N. Cardozo, The Nature of the Judicial Process 167-68 (1921). “[A] judge is not prevented from sitting because he comes into every case with a background of general personal experiences and beliefs.” In re Union Leader Corp., 292 F.2d 381, 388 (1st Cir. 1961). See In re J. P. Linahan, Inc., 138 F.2d 650 (2d Cir. 1943), for Judge Frank’s wide-ranging discussion, distinguishing between the need for disinterestedness in courts, as essential to democracy, and the presence of preconceptions and attitudes which are inevitable. The opinion urges self-scouting as to uniquely personal prejudices. It concludes that a referee is not disqualified from conducting a trial because he earlier came to a judgment that was reversed.

See also Price v. Johnston, 125 F.2d 806, 811 (9th Cir.), cert. denied, 316 U.S. 677, 62 S.Ct. 1106, 86 L.Ed. 1750 (1942), rejecting disqualification under 28 U.S.C. § 25, when the allegations “do not indicate a ‘personal’ prejudice or bias against the accused, but charge an impersonal prejudice, and go to the judge’s background and associations rather than his appraisal of the defendant personally.”

12

. United States v. Haldeman, 181 U.S.App.D.C. 254, 358, 559 F.2d 31, 135ff. (D.C.Cir.1976) (Judge Sirica’s statement in a television interview, at the time of the 1974 Judicial Conference, that defendants “can get just as fair a trial in the District of Columbia as any federal court,” did not reflect “inability or indisposition on the judge’s part to objectively weigh and act upon a request to relocate the place of trial should it develop that an unbiased jury could not be assembled in the District of Columbia.”

13

. See 15 U.S.C. § 57a(e) providing that an interested person may file a petition “for judicial review” of a rule, not later than 60 days after a rule is promulgated by the Federal Trade Commission. Section 57a(e)(5)(B) provides:

The United States Court of Appeals shall have exclusive jurisdiction of any action to obtain judicial review (other than in an enforcement proceeding) of a rule prescribed under subsection (a)(1)(B) of this section, if any district court of the United States would have jurisdiction of such action but for this subparagraph.

14

. Boire v. Greyhound Corp., 376 U.S. 473, 481, 84 S.Ct. 894, 11 L.Ed.2d 849 (1964) (no jurisdiction to enjoin a representation election; In Switchmen’s Union v. National Mediation Board, 320 U.S. 297, 64 S.Ct. 95, 88 L.Ed. 61 (1943), the Court held Congress precluded review of a representation decision of the National Mediation Board.

15

. C. Wright & A. Miller, Federal Practice and Procedure: Jurisdiction § 3553 at 387 (1975); 9 Moore’s Federal Practice ¶ 110.13(10] at 187-188 (2d ed. 1975), cited in Judge Tamm’s opinion at note 10.

16

. Action Realty Co. v. Will, 427 F.2d 843 (7th Cir. 1970); Green v. Murphy, 259 F.2d 591 (3d Cir. 1958).

17

. Greater Boston TV Corp. v. FCC (I), 143 U.S.App.D.C. 383, 444 F.2d 841 (1970).

18

. The 1972 decision in Fitzgerald is not pertinent because the “final” agency order in that case.would have been reviewable in the district court.

19

. Internat’l Bro. of Teamsters v. Bro. of Railway, Airline and Steamship Clerks, 131 U.S.App.D.C. 55, 64, 402 F.2d 196, 205, cert. denied, 393 U.S. 848, 89 S.Ct. 135, 21 L.Ed.2d 119 (1968).

20

. The doctrine is established by a number of precedents. See Secretary of Navy v Avrech, 418 U.S. 676, 677-78, 94 S.Ct. 3039, 41 L.Ed.2d 1033 (1974); United States v. Augenblick, 393 U.S. 348, 351-52, 89 S.Ct. 528, 21 L.Ed.2d 537 (1969); Ripon Society v. National Republican Party, 173 U.S.App.D.C. 350, 361 n.28, 525 F.2d 567, 578 n.28 (1975) (en banc), cert. denied, 424 U.S. 933, 96 S.Ct. 1147, 1148, 47 L.Ed.2d 341 (1976).

21

. Great Northern Ry. Co. v. Sunburst Oil & Refining Co., 287 U.S. 358, 53 S.Ct. 145, 77 L.Ed. 360 (1932).

22

. The district court ruling issued November 3, 1978. Association of Nat’l Advertisers v. FTC, 460 F.Supp. 996 (D.D.C.1978).

MacKINNON, Circuit Judge

(dissenting in part and concurring in part).

I concur in the Court’s decision insofar as it holds that (1) the Appellee, Association of National Advertisers (hereafter Association) is not required "to exhaust the rule-making process before filing a court challenge to disqualify one of the Commissioners for bias in such rulemaking proceeding; and (2) that affected parties are entitled to have substantive rules of the Federal Trade Commission proscribing specific unfair or deceptive acts or practices promulgated by fair decisionmakers. However, I cannot agree with the holding of the majority that a member of the Commission engaged in the rulemaking proceeding can be disqualified only upon a showing by clear and convincing evidence that he has an unalterably closed mind on matters critical to the disposition of the rulemaking. Also, based on the analysis hereinafter detailed, I would hold that the Chairman has disqualified himself in this rulemaking proceeding even if the majority’s “unalterably closed mind” standard is applied.

In my opinion the “unalterably closed mind”, where it exists, in many cases is practically impossible to prove, imposes too high a barrier to the public’s obtaining fair decisionmakers and is a higher standard than the Supreme Court has applied in its recent decisions. I would require any Federal Trade Commissioner to recuse himself, or failing that to be disqualified, upon a showing by a preponderance of the evidence that he could not participate fairly in the formulation of the rule because of substan*1182tial bias or prejudgment with respect to any critical fact that must be resolved in such formulation.

Also, in my view the majority opinion places too much reliance on the strict rule-making/adjudication dichotomy, applied in earlier cases under the Administrative Procedure Act. The Magnuson-Moss Act creates a rulemaking procedure that combines elements of both rulemaking and adjudication, as those functions are exercised under the Administrative Procedure Act, and this blending of the two procedures makes it impossible to look at Magnuson-Moss rule-making as anything but a combination of the two.

I. RULEMAKING BEFORE AND AFTER THE MAGNUSON-MOSS ACT.

Congress enacted the Magnuson-Moss Act on January 4, 1975. These amendments were part of the Federal Trade Commission Improvements Act (also known as the Magnuson-Moss Act, hereafter the Act) in which Congress limited the prior wide open authority of the Federal Trade Commission to make “rules which define with specificity acts or practices which are unfair or deceptive acts or practices in or affecting commerce . .” Section 18(1)(B). (Emphasis added). The Act blends some of the administrative procedures — rulemaking and adjudication — that had theretofore been rigidly separated in the Administrative Procedure Act. 88 Stat. 2193, 15 U.S.C. § 57a.

Prior to the Magnuson-Moss Act the Federal Trade Commission possessed great latitude in exercising its informal rulemaking authority. As was pointed out in the Senate debates, the amendment of its rulemaking powers by the Federal Trade Commission Improvement Act, as embodied in S. 356 of the 93rd Congress, 2nd Session (1974), was considered necessary because the Supreme Court “in a recent ruling had given the Federal Trade Commission very broad rulemaking power that was subject only to the due process requirement [and thereafter the House side in its consideration of S. 356 worked out] . . . considerable procedural safeguards relating to the rulemaking power of the Federal Trade Commission.” (Remarks of Senator Taft, 120 Cong.Rec. 40723, December 18, 1974).

The House Committee Report on the bill also complained of the “inadequate” proceedings that the Federal Trade Commission followed in its rulemaking.

The only procedural requirements that the FTC is required to observe are to afford notice of the proposed rulemaking, including a statement of its legal basis and the substance of the proposed rule or a description of the subjects and issues involved, and opportunity for comment in accordance with Section 553 of Title 5, United States Code. On judicial review such rules may only be set aside if they are found to be arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law; contrary to Constitutional right, power, privilege, or immunity; in excess of statutory jurisdiction, authority, or limitations, or short of statutory right; or without observance of procedures required by law.
Your committee believes these rule-making procedures and the scope of judicial review are inadequate for proceedings in which the integrity of the proposed rule may rest on the resolution of issues of material fact. We believe that the rulemaking procedures and judicial review provisions of section 202 (described below) afford the safeguards which are needed.

H.Rep.No. 93-1107, June 13, 1974, 93rd Cong., 2nd Sess., 33 U.S.Code Cong. & Admin.News 1974, pp. 7702, 7715. To provide the “needed . . . safeguards” the House passed its bill that with some modifications made by the Senate, resulted in the Federal Trade Commission Improvements Act of 1974, supra. It is obvious from the foregoing that one of the principle purposes of the amendments was to improve the “integrity [of Commission rulemaking that rested] ... on the resolution of issues of material fact.” This is an obvious reference to the adjudicative function involved in the promulgation of rules on un*1183fair and deceptive practices by the Commission.

In adopting the Magnuson-Moss (M-M) Amendments Congress authorized the Commission to promulgate rules that defined specific “unfair or deceptive acts or practices in or affecting Commerce” and tightened up the procedures that the Commission was required to follow in exercising this very considerable authority. See section 18(a)(1)(B). The M-M Amendments provided for (1) advance notice of the proposed rule and the reason therefor, (2) an informal hearing with oral or written submissions, (3) cross-examination on disputed issues, (4) right to rebuttal, (5) verbatim transcripts of all oral presentation to be made available to the public; and that (6) the rule be supported by the whole of the rulemaking record, and (7) the basis and purpose of the rule- be set forth in a statement. The Commission was also required to take into account (8) the economic effect of any such rule and (9) the effect on small business and consumers. (10) The promulgation of the rule was made subject to judicial review by the Courts under 5 U.S.C. § 706(2) and (11) could be declared unlawful if the Court found it was not “supported by substantial evidence in the rulemaking record . . . taken as a whole.”1 (12) The subsequent amendment or repeal of rules was also made subject to judicial review in the same manner as the original adoption of such rules. In addition (13) the court was required to find the rule to be unlawful if the Commission, by the denial of cross examination or rebuttal submissions, had precluded disclosure of material facts which was necessary for fair determination by the Commission of the Rulemaking proceeding taken as a whole.2

Senator Taft commented on the effect of these provisions of the Bill as follows:

I would particularly like to point out that the provisions relating to rulemaking, power are very broad. When we are dealing with the FTC, its authorizations, and areas of procedure we are not dealing with what we usually consider to be a rulemaking power of a Government agency-
We are dealing with an agency where, under the antitrust laws, rules are often made that relate to very specific cases, particularly specific industries, and prescribe certain requirements relating to those industries. They perhaps even limit the type of material that can be produced, the type of material that can be sold and how it can be sold.
In other words, the actual rights of individuals and business concerns are involved here.
*1184So we are really dealing not merely with the rulemaking proceedings, but in many cases, for all practical purposes, with an adversary proceeding.

120 Cong.Rec. 40723-40724, December 18, 1974. (Emphasis added).

It is thus apparent that the promulgation of unfair or deceptive practices under the Magnuson-Moss Act differs greatly from mere informal rulemaking under the tight compartments first established by the Administrative Procedure Act in 1946 (60 Stat. 238-239).

The majority’s opinion criticizes the characterization by the District Court of Federal Trade Commission rulemaking under the Magnuson-Moss Act as “hybrid” or quasi-adjudicative on grounds that it “ignores the clear scheme of the APA”. Of course such Magnuson-Moss Act rulemaking ignores the clear scheme of the APA. That was one of the stated and obvious purposes of the Act — to provide greater protection to the public that would be affected by the FTC rules, by providing some reasonable safeguards when the Commission promulgated rules prescribing specific “unfair or deceptive acts or practices.”3 Rulemaking under the Administrative Procedure Act prior to the Magnuson-Moss Act was ordinarily cast either in an adjudicatory or rulemaking context but the Magnuson-Moss Act changed all of this for rulemaking of unfair or deceptive acts or practices by the Federal Trade Commission.4 See Majority Opinion p. — of 201 U.S.App.D.C., p. 1159 of 627 F.2d.

The Court’s opinion is couched too much in a rulemaking/adjudication dichotomy and tries to pigeonhole Commission action into one or the other. For instance, it states that the “presence of procedures not mandated by Section 553 . . . does not . . . convert rulemaking into quasi-adjudication . . . .” That statement however blinks at the reality that exists in this instance of rulemaking. It should also be noted that Professor Davis, in setting forth his suggested “Official Notice” for rulemaking proceedings, defines “adjudicative facts [as] facts relating to the parties to the case . . . when a rule is formulated in an on-the-record proceeding.”5 The Commission’s action in promulgating the instant rules is required to be supported by substantial evidence in the rulemaking record as a whole. However, regardless of labels, the procedures required by M-M in this case certainly converts the Commission’s action into something that is not wholly covered, by Section 553 and that is not wholly quasi-adjudication. The Act creates a new form of Commission action that is outside the informal rulemaking category as previously covered solely by section 553, by the addition of elements that definitely involve adjudication.

II. ADJUDICATIVE CHARACTER OF MAGNUSON-MOSS ACT PROCEEDINGS.

Professor Davis has pointed out that some rulemaking may involve the determination of adjudicative facts:

The first step is probably to recognize that the reality [of rulemaking procedures] is a spectrum rather than a dichotomy; some facts are clearly adjudicative, some are clearly legislative, some are probably one or probably the other but not clearly, and some seem impossible to classify. So the adjudicative or legislative character of facts is a variable, and other variables must also be taken into account — the degree of doubt or certainty *1185about the facts, and the degree of their bearing upon the controversy. When facts are clearly adjudicative, disputed, and critical, a party should be entitled to all the procedural protections of a trial. When facts are legislative, reasonably clear, and peripheral to the controversy, the tribunal may assume them without even mentioning them. The problem cases are those in which the three variables pull against each other.6 (Emphasis added).

These observations clearly describe many of the aspects of the Magnuson-Moss Rule-making and in the last sentences reach the facts of this case.

The adjudicative character of some of the proceedings under the Magnuson-Moss Act is also reflected in the April, 1979 recommendation made by the Administrative Conference with respect to the trade regulation rulemaking project of the Federal Trade Commission. Therein the Conference stated:

As a general practice the Commission, after the close of the first period of submission of written comments, should conduct a legislative-type hearing, following which it should determine whether there are “disputed issues of material fact it is necessary to resolve”. If there are determined to be such issues, they should be designated with specificity, and a quasi-ad judicative hearing, in accordance with section 18(c) of the Federal Trade Commission Act, should be held on them.

April, 1979 Recommendations of the Administrative Conference, paragraph 12. (emphasis added)

One should not be blind to the fundamental changes made in Commission procedures for regulating unfair and deceptive acts and practices by the Magnuson-Moss Act. The Separate Views on Title II of the Act by 12 members of the House Commerce Committee that strongly supported the new rulemaking procedures of the MagnusonMoss Bill, also indicated that Congress knew that it was making substantial changes in the informal rulemaking proceedings provided for in section 553 of the Administrative Procedure Act. Cf., Commission’s pre-1975 Rules and Procedures, Section 1.16 to (c), (d). The statement of the 12 members included the following:

When a statute provides authority to a Federal administrative agency to issue rules of general applicability but is silent on the procedures which the agency is required to follow in issuing such rules, only the procedural requirements of Section 553 of Title 5, United States Code apply to any rulemaking proceeding undertaken pursuant to that authority. This means that the agency is required to do no more than to provide notice of the proposed rulemaking in the Federal Register and allow interested persons the opportunity to submit written comments on the proposal. There is no right to appear in person before the agency, to cross-examine, to submit rebuttal evidence or to insist that the agency decide solely on the basis of information available at the public hearing. Also, the scope of judicial review under such procedures is very narrow. On judicial review, such rules could be set aside if they were found to be arbitrary, capricious or an abuse of discretion, unconstitutional, in excess of statutory authority or without observance of procedures required by law. (H.R.Rep. No. 93-1107, 93rd Cong.2d Sess. (1974) at 85, U.S.Code Cong. & Admin.News 1974, pp. 7702, 7751.) (Emphasis supplied.)

These criticisms of informal rulemaking under Section 553 were what the 12 members considered they were changing for the making of unfair and deceptive acts and practices rules by the Federal Trade Commission under the Magnuson-Moss Act.

III. DOES THE SUBSTANTIAL EVIDENCE STANDARD OF THE MAGNUSON-MOSS ACT APPLY ONLY TO DISPUTED ISSUES OF MATERIAL FACT OR DOES IT ALSO APPLY TO FINDINGS AND DETERMINATIONS OF LEGISLATIVE FACT?

The substantial evidence scope of review of a Magnuson-Moss proceeding further il*1186lustrates its adjudicatory nature. However, the Commission contends that “the substantial evidence” standard for judicial review was intended only to apply to “the findings and conclusions of the Commission with regard to disputed issues of material fact on which the rule is based” and “would not apply to findings or determinations of legislative fact”.7 The Conference Report does make this statement but the plain language of Section 18(e)(3)(A) provides that the Court shall set aside the rule if:

(A) the court finds that the Commission’s action [promulgating the rule ] is not supported by substantial evidence in the rulemaking record . taken as a whole.

15 U.S.C. § 57(e)(3)(A).

The Commission’s contention in this respect, which seeks to answer attacks upon the “rule” that the Commission promulgated, in addition to being contrary to the language of the statute, is also contrary to the statements of Senator Moss and Representative Broyhill and others made on the floor of Congress during passage of the Magnuson-Moss Act. The reason for such amendments to the Commission Act was explained by Senator Moss as follows:

The concurrent resolution corrects a technical deficiency in the conference report whereby the words “with regard to disputed issues of material fact on which the rule was based” modified both the words “findings” and “conclusions” whereas they pertained only to findings. In order to clarify the situation, the word “action” was chosen to indicate the intention to have factual determinations reviewed on the basis of substantial evidence. Conclusions arising from these factual determinations would be reviewed as is normal: Do the facts supported by substantial evidence support the conclusions on the basis of logic. (120 Cong. Rec. 40725 (Dec. 18, 1974) (remarks of Sen. Moss) (emphasis added); accord, id. at 40724 (remarks of Sen. Taft).)

Similarly as Representative Broyhill observed:

[I]t is necessary to clarify the language in the conference report, not because of any disagreement among the conferees but because of some legal interpretation of the language which was included in the conference report. We want to make crystal clear that any rules issued by the commission must be based upon the substantial evidence that is developed in consideration of the rule. That is the purpose of the amendment — to clarify the provision in the Judicial Review section. (120 Cong.Rec. 41408 (Dec. 19, 1974) (remarks of Rep. Broyhill) (Emphasis added).)

Senator Taft remarked:

[A]s I understand it . [the resolution] will have the effect of amending that provision to read that the clerk [sic] [court] finds that the Commission action is not supported by substantial evidence in the rulemaking record taken as a whole. (120 Cong.Rec. 40724 (Dec. 18, 1974) (remarks of Sen. Taft).)

This legislative history indicates, and Representative Broyhill’s statement is the clearest, that “substantial evidence” in the rulemaking record as a whole is required to support any rule proscribing any specific unfair or deceptive act or practice promulgated by the Commission. To the extent that the statement by Senator Moss expressed a different formulation, it only varied slightly to require that any rule that the Commission adopted must follow logically from findings of fact supported by substantial evidence on the record as a whole. If there is any material difference in the actual application of these two analyses, it is relatively immaterial in determining the Chairman’s disqualification in this case, be*1187cause both point to the controlling effect that results from decisions of the Commission on factual findings and conclusions therefrom and these are the precise areas where the Chairman by his prior statements and conduct has indicated his bias and prejudgment.

To all of these comments with respect to Section 18 rulemaking should be added an extract from a recent article by Professor Antonin Scalia, the former Chairman of the Administrative Conference of the United States. In the article, Professor Scalia decries the “balkanization of administrative law” and blames (besides this court) Congress’ increasing interest in promulgating unique procedural requirements with each new statute. Scalia would opt instead for “standardizing mandatory administrative procedures within a manageable number of well-known and well-litigated forms,” and describes how Congress’ disinclination to do so in the Magnuson-Moss Act necessarily produced the result reached by Judge Gesell in the court below.

That such a consummation is devoutly to be desired is exemplified — indeed, almost caricatured — by the recent case of Association of Nat’l Advertisers, Inc. v. FTC [460 F.Supp. 996 (D.D.C.1978)], involving a petition to disqualify the Chairman of the FTC for prejudice in a rulemaking proceeding conducted pursuant to the peculiar procedures of the FTC Improvement Act of 1975 . . . Chairman Pertschuk had forcefully expressed his firm views concerning the subject of the proceeding — FTC regulation of children’s advertising. Such expression of prejudice would clearly have been disqualifying in formal adjudication and almost certainly in formal rulemaking. It has never been thought to be disqualifying in informal rulemaking, though it is admittedly difficult to recall so vigorous an expression of prejudgement in a pending proceeding. But the FTC Improvement Act had given what it called informal rulemaking so many of the characteristics of formal adjudication (or formal rule-making) that it was difficult to decide which standard of conduct should govern. As Judge Gesell noted, it was “in fact a hybrid proceeding, unique to the Federal Trade Commission.” [Id. at 997.] The court’s disqualification of Chairman Pertschuk was based on constitutional grounds — to which the foregoing considerations should be irrelevant. I think, however, that the issue should have turned upon statutory intent with respect to a procedural area (expression of bias or prejudice) not specifically addressed by the APA. On that point, the nature of the statutorily prescribed procedures would be crucial, and infinite variation would make predictability most difficult. (Scalia, Vermont Yankee: The APA, the D.C. Circuit and the Supreme Court, 1978 Sup.Ct.Rev. 345, 408-409 n. 255.) (Emphasis added).

Thus, Professor Scalia agrees that the result reached by Judge Gesell, with which I agree, is dictated by the unusual procedural model of the Magnuson-Moss Act. His. italicized characterization of the “[forceful and] vigorous . . . expression of prejudgment [and] . . . prejudice” is a sound evaluation of the prejudicial character of the Chairman’s remarks and conduct by an impartial and learned observer. It is also my view that Chairman Pertschuk’s disqualification can be supported on statutory grounds, i. e., the statute requires action to be determined by the Commission on the record evidence as a whole; such determination necessarily implies a fair determination, otherwise the presentation of evidence is a hollow formality.

IV. THE MAJORITY’S DESCRIPTION OF THE CHAIRMAN’S REMARKS & CONDUCT.

The majority opinion holds, and I agree with such holding, that “The appellees have a right to a fair and open proceeding; that right includes, access to an impartial decisionmaker.” Maj. op. p. - of 201 U.S.App.D.C., p. 1174 of 627 F.2d. However, the majority considers that one qualifies as an “impartial decisionmaker” unless he is shown by clear and convincing evidence to have an unalterably closed mind on matters *1188critical to the children’s television proceeding. This rule would establish a legal principle that evidence of bias and prejudice would not be disqualifying unless it could surmount a fence that is horse high, pig tight and bull strong. In my view that is too much protection for a biased decision-maker. In a great many instances it would deprive the public of decisionmakers that are actually “impartial”.

The current case is a good example and also illustrates how strong evidence of prejudgment can be played down to almost sanitize the attitudes expressed. Such softening of the Chairman’s remarks is illustrated by the following excerpts from the majority opinion:

Chairman Pertschuk’s remarks, considered as a whole represent discussion, and perhaps advocacy, of the legal theory that might support exercise of the Commission’s jurisdiction over children’s advertising. The mere discussion of policy or advocacy on a legal question, however, is not sufficient to disqualify an administrator. To present legal and policy arguments, Pertschuk not unnaturally employed the factual assumptions that underlie the rationale for Commission action. The simple fact that the Chairman explored issues based on legal and factual assumptions, however, did not necessarily bind him to them forever. Rather, he remained free, both in theory and in reality, to change his mind upon consideration of the presentations made by those who would be affected.

Maj. op. pp. --- of 201 U.S.App. D.C., pp. 1171-1172 of 627 F.2d. [Footnote omitted].

The opinion then indulges in a more particularized discussion of some of the specific comments that the Chairman made and that are not denied on this record, and further concludes:

The materials [Pertschuk’s comments], merely demonstrate that Pertschuk discussed a legal theory by which the Commission could adopt a rule, if circumstances warranted. The statements do not demonstrate that Chairman Pertschuk is unwilling or unable to consider rationally argument that a final rule is unnecessary because children are either unharmed by sugared products or are able to understand advertising. The appellees have failed to make a clear and convincing showing that Chairman Pertschuk has an unalterably closed mind on matters critical to the children’s television proceeding.

Maj. op. pp. --- of 201 U.S.App.D.C., pp. 1173-1174 of 627 F.2d.

This bland characterization of the opinions and attitudes expressed in public and private by Chairman Pertschuk completely fails to portray the “prejudgment” and bias that is indicated by his actual remarks and conduct. It nowhere expresses the predisposition that his remarks actually revealed and thus fails accurately to evaluate the Chairman’s state of mind on children’s TV advertising. And this is not all; the majority raises even further obstacles to disqualifying a Commissioner on the ground of actual bias by asserting:

We are concerned that implementation of the Cinderella standard in the rulemaking context would plunge courts into the midst of political battles concerning the proper formulation of administrative policy. We serve as guarantors of statutory and constitutional rights, but not as arbiters of the political process. Accordingly, we will not order the disqualification of a rulemaker absent the most compelling proof that he is unable to carry out his duties in a constitutionally permissible manner.

Maj. op. p. -- of 201 U.S.App.D.C., p. 1174 of 627 F.2d.

No mention is made of the necessity that the rulemaker be a fair decisionmaker as implicitly required by the statute. There is no support for this attempt to inject “political” fears as a factor to negate disqualification. Of course, some can find politics in most everything done by government, but there is no showing here that it would be an improper interference with the “political process” to apply the proper rule of disqualification, any more than it was when this *1189court found Chairman Dixon of the Federal Trade Commission to be disqualified to participate in a particular FTC adjudicative matter. Cinderella Career and Finishing Schools, Inc. v. FTC, 138 U.S.App.D.C. 152, 425 F.2d 583 (D.C. Cir. 1970). While it may have been Congress’ design to place Commissioners in the dual roles of policymaker and decisionmaker, it was also Congress’ intent that parties to Magnuson-Moss Act rulemaking have their evidence considered fairly and impartially. Hence, in disqualifying a decisionmaker who cannot decide with the requisite degree of fairness and impartiality, we would protect the political process, rather than interfere with it.

In addition to understating the Chairman’s remarks, the majority does not attempt to actually portray them, or to apply them in all their verbiage, against the standard for disqualification that the majority establishes. This needs to be done.

I begin such analysis with the definite opinions expressed by the Chairman. On TV’s Today Show on October 31, 1977 he admitted that “the implicit indication of [his] personal opinions in these replies are [sic] self-evident.” By this statement he recognized that it is the implicit indications of his personal opinions that should be evaluated. He next stated: “I have some serious doubt as to whether any television advertising should be directed at a 3 or 4 or 5 year old, a pre-schooler ... we have never treated children as commercial objects in our society.” This expresses a very firm opinion that, by its advertising, television was treating such children as “commercial objects” — presumably trigger words in his vocabulary.

Next, in response to the question whether he would like to see the Federal Trade Commission ban children’s advertising altogether he replied “not necessarily. But we’ve not excluded the possibility of bans on certain advertising of certain products to children.” In the next paragraph, in an apparent attempt to save the Commission from the taint of any bias that his personal statements indicate, he attempts to spread the responsibility by stating that there are 4 other Commissioners and consequently his views do not bind the others. However, a Commission is prohibited from acting with even one biased Commissioner. See American Cyanamid Company v. FTC, 363 F.2d 757, 767 (6th Cir. 1966); Berkshire Employees Association of Berkshire Knitting Mills v. NLRB, 121 F.2d 235, 239 (3rd Cir. 1941). Then the Chairman stated that the Commission has “not as a body yet approached the question of a remedy for the evils we see in children’s advertising.” So the Commission (we) had already determined that the advertising was “evil”. Apparently the only issue was what remedy to apply.

Next, in his speech to the Action for Children’s Television Research Conference at Boston on November 8,1977, he referred to the “moral myopia of children’s television advertising.” (Emphasis added). He also stated that “advertisers seize on the child’s trust and exploit it as a weakness for their gain.” (Emphasis added). These remarks evidence definite conclusions, definite opinions and a biased slant. Later he stated: “using sophistication techniques like fantasy and animation, they [TV advertisers] manipulate children’s attitudes”. (Emphasis added). This also indicates a prejudgment of the purpose and intent of TV advertisers.

He then argued:

Why isn’t [the] . . principle [that those responsible for children’s well being are entitled to the support of laws designed to aid discharge of that responsibility] applicable to television advertising directed at young children? Why shouldn’t established legal precedents embodying this public policy be applied to protect children from this form of exploitation? In short, why isn’t such advertising unfair within the meaning of the Federal Trade Commission Act and, hence, unlawful? (Emphasis added)

Can any reasonable person contend that such remarks do not indicate that he has prejudged TV Advertising and decided that it exploits children?

He, next delves into the millions of family relationships and indicates that he has decided that Commission action is required because he finds:

*1190[children] cannot protect themselves against adults [the advertisers] who exploit their present-mindedness . (and exploit their “credulousness”).

He has already concluded that children under five in the United States are not sufficiently under parental control to prevent them from begin victimized by TV advertising. The foregoing remarks indicate that Chairman Pertschuk has already decided that children are being subject to “exploitation” by children’s advertising. That may be so, and the evidence might prove it, but it is apparent that he so decided before any evidence was introduced.

Finally he asserts:

Shouldn’t society apply the law’s strictures against commercial exploitation of children, and the law’s solicitude for the health of children to ads that threaten to cause imminent harm — harm which ranges from increasing tooth decay and malnutrition to injecting unconscionable stress into the parent-child relationship?

This indicates the Chairman has already formed an opinion that television advertising is interfering with the relationship between parents and their children that only intervention by the Federal Trade Commission can correct.

Also, his recounting that he has talked about the “unfairness of advertising aimed at children” indicates he has concluded that such advertising is “unfair”. With such conclusion already reached the only problem is how to prove it and what to do about it. He thus indicated he is not seeking to find what the evidence proves but what evidence can be found to prove his prejudgment. Whether it is “unfair” or not is the precise issue that was supposed to be the subject of the hearings.

In addition, he stated that “only a ban on the advertising of these products on programs directed towards the young child can remedy their inherent defect, although we must explore all remedial approaches to the problem.” (Emphasis added). In other words, he has concluded that children’s advertising has “inherent defect[s]”, which he does not identify, “that only a ban” can correct the situation, and that he would explore other approaches.

■ In his final statement to the Conference he stated:

If the Commission is to reach sound and reasoned judgments, it must also hear from the parents, the teachers, the pediatricians, the dentists, those health and education specialists on whom we rely for the advocacy of our children’s best interest. We must be rigorous and open-minded in our analysis of both law and fact. At stake are fundamental questions'about the extent to which our society will permit the treatment of children as commercial objects rather than formative human beings entrusted to our care.

The majority opinion refers to the statement that “we must be rigorous and open-minded in our analysis of both law and fact” as an indication of the fairness of the speaker. However, in the context in which this speech was delivered, these remarks appear much more as an admonition that the Commissioners must steel themselves against those who would “permit the treatment of children as commercial objects [and stop the Commission (we) from] hearpng] . the parents, the teachers, the pediatricians, the dentists [etc. and those others who are advocating what he terms to be] the children’s best interest”.

Finally he postulates the problem as being to determine the “extent to which [the Commission is] to permit the treatment by television of children as commercial objects.”

In a 1978 Newsweek article the Chairman is quoted as follows:

‘Commercialization of children has crept up on us without scrutiny or action’, says Michael Pertschuk, the agency’s new chairman. ‘It is a major, serious problem. I am committed to taking action.’ (Emphasis added).

This statement is not denied. That he is “committed to taking action” cannot be construed as indicating that he is merely going to urge fellow Commissioners to hold *1191hearings but rather that he has already concluded that “a major, serious problem” exists and the only remaining problem is to decide what the Commission should do about it. This supports what he has said before, that practically his sole concern is what action the Commission should take.

Finally we come to several letters written by the Chairman. Their full contents should be noted:

November 9, 1977
MEMORANDUM
TO: Charlie Ferris
FROM: Mike Pertschuk
Now after shooting my mouth off for three months here’s our effort at putting some legal underpinnings under our initiatives on children’s advertising. I should probably come over in the next couple of days to make sure that we don’t cross each other inadvertently.
* * * * * *
November 9, 1977
MEMORANDUM
TO: Coleman [sic] McCarthy
FROM: Mike Pertschuk
Coleman, I know you share my concern in raising public consciousness to the part we play as a society for permitting children to be made commercial objects. I thought you’d want to see this statement in which I’ve tried to establish underpinings [sic] for a fundamental assault on television advertising directed toward young children.
(Emphasis added).
* * * * * *
November 9, 1977
MEMORANDUM
TO: Senator Stevens
FROM: Mike Pertschuk
Senator, I thought your floor statement on children’s advertising was just great and really appreciate your support once again.
I thought you might be interested in the speech I gave in Boston yesterday in which I tried to lay out the legal underpinings [sic] — which I’m convinced are strong — for decisive action by the Commission in areas of children’s advertising abuses. Thanks.

On November 17,1977 he wrote the Honorable Donald Kennedy as follows:

November 17, 1977
Honorable Donald Kennedy
Food and Drug Administration
Parklawn Building
5600 Fishers Lane
Rockville, Maryland 20852
Dear Don:
Setting legal theory aside, the truth is that we’ve been drawn into this issue because of the conviction, which I know you share, that one of the evils flowing from the unfairness of children’s advertising is the resulting distortion of children’s perceptions of nutritional values. I see, at this point, our logical process as follows: children’s advertising is inherently unfair. As a policy planning agency we have to make judgments as to our priorities. The first area in which we choose to act is an area in which a substantial controversy exists as to the health consequences of encouraging consumption of sugared products (not just cereals). With this formulation we do not have to prove the health consequences of sugared cereals. What we do have to prove is that there is a substantial health controversy regarding the health consequences of sugar — a much lower burden of proof.
I’m convinced that the convergence of public policies regarding the commercial exploitation of children with the health controversy over sugared products give us a stronger base and frankly deal directly with the underlying concerns which prompt our action.
Sincerely yours,
Michael Pertschuk
(Emphasis added).

These letters indicate that by November 17, 1977, the Chairman had a “conviction ” that there are “evils flowing from the unfairness of children’s advertising . . ” and he had been vigorously marshalling sentiment throughout the nation for a “fundamental assault on television advertising directed toward young children.” Letter of *1192November 9,1977 to Colman McCarthy. So by that date he was already convinced that children’s advertising was evil and unfair. He then advocates the legal theory for authorizing the Commission to take such action as he might advocate. His final paragraph is likewise strong evidence of the extent of his prejudgment.

I’m convinced that the convergence of public policies regarding the commercial exploitation of children with the health controversy over sugared products give us a stronger base and frankly deal directly with the underlying concerns which prompt our action. (Emphasis added).

In his letter of November 9,1977 to Charlie Ferris he said that “after shooting my mouth off for three months here’s our effort at putting some legal underpinings [sic] under our initiatives on children’s advertising”. He has already concluded, as his letter to Colman McCarthy indicates, that society in an “evil ” manner, possibly attributable to “moral myopia ”, has permitted children to be made commercial objects.

Thus, if the Notice of Rulemaking were truthful, so far as Chairman Pertschuk’s views were concerned, it would have stated in substance:

The Commission has decided to make a fundamental assault upon Children’s Advertising on TV because we are convinced that it is evil, unfair and allowed solely because of the moral myopia of the public and the industry. We solicit comments as to whether it should be prohibited entirely or to some lesser degree.

VI. AGENCY RULEMAKING AND CONGRESSIONAL LEGISLATION-COMMISSIONERS AND CONGRESSMEN.

Notwithstanding that the majority opinion holds that a “fair decisionmaker” is to be guaranteed for this rulemaking, the opinion seeks to obviate such guarantee, if I read the opinion correctly, by holding that Commissioners in their Magnuson-Moss rulemaking are to be considered the same as Congressmen, and the fairness with which they approach their rulemaking cannot be attacked because Congressmen are not subject to similar constraints in enacting legislation.

To reach such result the majority opinion compares Section 18 unfair and deceptive practice rulemaking by the Federal Trade Commission to the enactment of legislation by Congress and likens the appointed Commissioners of the Federal Trade Commission to the Senators and Representatives elected to Congress. It points out that courts have not imposed procedural requirements on legislatures and that there is nothing to restrict Congressmen from prejudging factual and policy issues.8 The opinion also notes that legislators must have the ability to exchange views with constituents and suggest public policy dependent upon factual assumptions..

The majority opinion quotes the unprecedented views of Professor Glen O. Robinson, a former member of the Federal Communications Commission, as follows:

Although members of agencies such as the FCC certainly do perform significant judicial functions in deciding individual cases, they perform even more tasks of a legislative or an executive character. When the FCC, for example, promulgated regulations barring common ownership of local newspapers and broadcast stations, it performed a legislative task, pure and simple. In reaching the decision, the Commission was neither bound by, nor *1193expected to conform to, the confining procedures or standards of a court. [The FCC, however, was not acting under the strictures of the Magnuson-Moss Act] Why then should the decisionmakers be stamped from a judicial case? Insofar as the agency is delegated broad legislative powers and responsibilities, would it not be at least as appropriate to measure agency members against standards used to evaluate legislators? Such standards would place agency members on a better standing with respect to judges and would create an entirely new frame of reference for assessing agency performance. The supremacy of carefully reasoned principle — the supposed ideal of judicial decision — necessarily would yield to the dictates of political compromise and expediency, which are the accepted hallmarks of legislative action. Correspondingly, the standard for evaluating the composition of the agencies would shift from an emphasis on professional training to an emphasis of representativeness. (Emphasis added) (Comment added)

This appears to be the source of the court’s opinion that converts what is only a suggestion of Professor Robinson into a decision holding that the Commissioners of the Federal Trade Commission have the same authority as members of Congress. What an extreme ruling. Professor Robinson was honest when he admitted that this proposal “would create an entirely new frame of reference for assessing agency performance” but his article can be searched throughout without finding any suggestion that a court in one of its decisions could convert Federal Trade Commissioners into the equivalent of Congressmen. Professor Robinson’s proposition could only be implemented by Congressional action, since agencies are purely creatures of congress.

It is true that legislators are not required to make findings of fact to support their legislation and that they cannot be disqualified by any court for bias, but there are other safeguards in the legislative process that compensate for the absence of such safeguards as are expressly imposed or implicit in the administrative process. First of all, legislators are elected by the voters of their district, and those in the House are elected for a relatively short term — only two years. They can be turned out very quickly if any bias they disclose offends their constituents. Secondly, there is a protection in the sheer size of Congress — 535 members of the House and Senate — that implicitly diffuses bias and guarantees that impermissible bias of individual members will not control. There is safety in numbers and a biased Congressman soon loses influence among the other members, if he ever acquired any. Also, the two house system and the Presidential veto are tremendous guarantees that legislation will not be the result of individual bias or even the impermissible bias of one house.9

*1194Because these legislative safeguards were not applicable to Federal Trade Commissioners, Congress saw fit to impose other safeguards, i. e., (1) confirmation by the Senate, (2) limited terms for FTC Commissioners, (3) public notice and mandatory public hearings when proposing legislative type rules, (4) cross-examination, rebuttal, a public written record, a statement of reasons and purpose, and (5) a requirement that whatever rule is promulgated be supported by substantial evidence on the record as a whole, and (6) be subject to judicial review and other safeguards previously noted.

Congress considered these safeguards to be necessary to provide the same degree of protection that exists in Congress with respect to its exercise of legislative power. So the answer to that portion of the court’s opinion that makes Congressmen out of FTC Commissioners, as I interpret it, is that the majority opinion elsewhere in citing Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council, Inc., 435 U.S. 519, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978), recognizes that such a fundamental change in agency procedure cannot be made by the courts. We cannot make Congressmen out of Commissioners any more than we could by our decision make errand boys for the court out of the members of the Nuclear Regulatory Commission. Courts cannot reduce or circumscribe statutory agency power and by the same token they cannot grant powers that only Congress can give. Courts have no power to supplant the Senate, House and President by creating a legislative body of five members whose acts would not be subject to judicial review except to the same extent as Congressional statutes. Such a body would actually be a five man Federal Trade Congress.

VII. FAIRNESS AND DISQUALIFICATION.

The majority refers to the act of Congress that authorizes the Commission to prosecute unfair and deceptive acts and practices by rulemaking and contends that due process does not require more procedures than Congress has provided. Vermont Yankee Nuclear Power Corp., supra, 435 U.S. at 524, n. 1, 98 S.Ct. 1197. However, a fair rulemaker is not a “procedure it is an implicit requirement that flows from any situation that calls for a result to be reached on evidence.

The opinion then jumps to assert that since

Congress is under no requirement to hold an evidentiary hearing prior to its adoption of legislation . . . Congress need not make that requirement when it delegates the task to an administrative agency. [But it did.] (Bowles v. Willingham, 321 U.S. 503, 519, 64 S.Ct. 641, 88 L.Ed. 892 (1944) (Citing Bi-Metallic Investment Co. v. State Board of Equalization, 239 U.S. 441, 36 S.Ct. 141, 60 L.Ed. 372 (1915)). Accordingly, we must apply a disqualification standard that is consistent with the structure and purposes of section 18. (Comment added). Maj. Op. p. - of 201 U.S.App.D.C., p. 1166 of 627 F.2d.

I have no disagreement with the statement in the last sentence. My disagreement extends only to the conclusion the majority eventually reaches, i. e., that their result “is consistent with the situation and purposes of section 18.” On this point I concur with Professor Scalia that the statutory intent evident in Section 18 requires MagnusonMoss rulemakers to be without disqualifying bias or prejudgment.

The next assertion, by the author of the Cinderella opinion, is that we never intended the Cinderella rule to apply to a rule-making procedure such as the one under review.” (Emphasis added). So far as the other judges of the division of the Court that decided the Cinderella case are concerned, I believe this is an overstatement. We never expressed any opinion as to the application of our ruling in Cinderella to a Magnuson-Moss rulemaking proceeding. That issue was not involved in the case. We never concluded that the same principle did, or did not, apply to such proceedings. We applied the rule to disqualify the Chairman in Cinderella,.a case involving an adju*1195dication, because the parties had a right to a fair decisionmaker. Since, as the majority admits, a fair decisionmaker also is required here in the promulgation of substantive rules establishing specific unfair and deceptive acts and practices, no reason exists why the same rule should not be applied to this case in order to assure fair decision-makers. How else could fair decisionmakers be obtained?

I would not restrict members of a regulatory commission in their public discussion of policy issues, and there is nothing in the requirement that rules should be promulgated after fair hearings by unbiased Commissioners that would prohibit administrators from discussing “the wisdom of various regulatory positions.” The office of the Commissioner contemplates some such activity but that does not justify their overstepping ordinary bounds of reasonableness to become loud advocates and spend three months haranguing the public with their prejudgment on basic factual issues that they must eventually decide. Reasonable public discussion should not be restricted and our history indicates that requiring fairness in our decisionmakers has not inhibited public discussion. Very few public officials serving as members of regulatory agencies have ever been charged with overstepping reasonable bounds. But when a decisionmaker, who must rise above partisanship, descends to vigorous and consistent advocacy over a substantial period of time and commits himself in the public mind, he jeopardizes his ability to make fair determinations and in extreme cases, such as we have here, he should be disqualified from subsequently posing as a fair decisionmaker on the subject of his advocacy.

At pages -, - of 201 U.S.App.D.C., pp. 1170-1171 of 627 F.2d the majority opinion concludes:

Accordingly, a Commissioner should be disqualified only when there has been a clear and convincing showing that the agency member has an unalterably closed mind on matters critical to the disposition of the proceeding. The ‘clear and convincing’ test is necessary to rebut the presumption of administrative regularity. See, e. g., Withrow v. Larkin, 421 U.S. 35, 55, 95 S.Ct. 1456, 43 L.Ed.2d 712 (1975); Hercules, Inc. v. EPA, 194 U.S.App.D.C. 172, 204, 598 F.2d 91, 123, (D.C. Cir. 1978). The ‘unalterably closed mind’ test is necessary to permit rulemakers to carry out their proper policy-based functions while disqualifying those unable to consider meaningfully a section 18 hearing.

421 U.S. 35, 95 S.Ct. 1456, 43 L.Ed.2d 712 (1975) (Emphasis added).

However, while the majority cites Withrow v. Larkin, 421 U.S. 35, 95 S.Ct. 1456, 43 L.Ed.2d 712 (1975), that case does not apply the “unalterably closed mind standard.” Withrow involved a Wisconsin statute prohibiting various acts of professional misconduct by physicians. The act empowers the State Examining Board to warn and reprimand physicians, and thereafter to temporarily suspend licenses and institute civil action to revoke a license or initiate criminal action. Following its investigation, the Board notified a licensed physician that a closed investigation would be held to determine whether he had engaged in certain proscribed acts. At that juncture the doctor brought an action against the Board seeking injunctive relief against the hearing on the ground that in deciding to proceed against him the Board had prejudged his case and would therefore be disabled from hearing and deciding his case on the basis of evidence to be presented at the subsequently scheduled contested hearing. In determining the standard to be applied to the Board in such circumstances the Court remarked:

No specific foundation has been presented for suspecting that the Board had been prejudiced by its investigation or would be disabled from hearing and deciding on the basis of the evidence to be presented at the contested hearing. The mere exposure to evidence presented in nonadversary investigative procedures is insufficient in itself to impugn the fairness of the Board members at a later adversary hearing. Without a showing to the contrary, state administrators ‘are assumed to be men of conscience and intellectual *1196discipline, capable of judging a particular controversy fairly on the basis of its own circumstances.” United States v. Morgan, 313 U.S. 409, 421, 61 S.Ct. 999, 1004, 85 L.Ed. 1429 (1941).

421 U.S. at 55, 95 S.Ct. at 1468 (Emphasis added). Withrow thus suggests a “fairness” standard; i. e., whether there is any ground for suspecting the Board of such unfairness that it could not hear and decide the case on the basis of the evidence to be presented at the contested hearing.10 If the 1948 decision in Federal Trade Commission v. Cement Institute, 333 U.S. 683, 68 S.Ct. 793, 92 L.Ed. 1010 (1948) is construed as establishing an irrevocably closed mind standard, the subsequent decision in With-row must be recognized as modifying that rule.

. The “unalterably closed mind” standard is also basically inconsistent with the holding that only fair decisionmakers may promulgate rules. Unfairness may exist in many instances where the Commissioner’s mind is short of being “unalterably closed”. The disqualification standard should be high, but not that high.

VIII. THE STANDARD FOR DISQUALIFICATION.

Because of the deficiencies pointed out above, I would reject the unalterably closed mind standard as imposing a practically impossible impediment in a great many cases to a showing of bias, even when the decisionmaker has in fact made up his mind in advance of the hearing.11 It is an unfair method of determining unfairness. Instead, I suggest that a superior standard can be gleaned from recent Supreme Court holdings, from a frank appraisal of the ex*1197tent to which the Magnuson-Moss proceedings in this case require adjudicative determinations, and from considerations of fairness that must be said to be implicit in the structure of any statutory tribunal that is held out to the public as acting in accordance with the substantial evidence presented at public hearings.

The Supreme Court’s decisions in Withrow v. Larkin, 421 U.S. 35, 95 S.Ct. 1456, 43 L.Ed.2d 712 (1975) and Hortonville Joint School District No. 1 v. Hortonville Ed. Ass’n, 426 U.S. 482, 96 S.Ct. 2308, 49 L.Ed.2d 1 (1976), each cited by the majority, hold that fairness is the ultimate measure of the qualification of an arbiter.

In Withrow, Justice White stated:

[I]f the initial view of the facts based on the evidence derived from nonadversarial processes as a practical or legal matter foreclosed fair and effective consideration at a subsequent adversary hearing leading to ultimate decision, a substantial due process question would be raised. [T]hat the combination of investigative and adjudicative functions does not, without more, constitute a due process violation, does not, of course, preclude a court from determining from the special facts and circumstances present in the case before it that the risk of unfairness is intolerably high. 421 U.S. at 58, 95 S.Ct. at 1470 (emphasis added).

In Hortonville, Chief Justice Burger quoted from United States v. Morgan, 313 U.S. 409, 421, 61 S.Ct. 999, 85 L.Ed. 1429 (1941) in pointing out certain circumstances in which disqualification would be justified:

Nor is a decisionmaker disqualified simply because he has taken a position, even in public, on a policy issue related to the dispute, in the absence of a showing that he is not “capable of judging a particular controversy fairly on the basis of its own circumstances.”

426 U.S. at 493, 96 S.Ct. at 2314 (Emphasis added).

That both of these cases involve consideration of disqualification of decisionmakers from adjudications does not deprive them of value in formulating a standard for disqualification from the Magnuson-Moss rulemaking that is involved here. As discussed supra, this Magnuson-Moss rulemaking contains many elements of adjudication — and in any event the majority admits that each of the decisionmakers must, be fair. The fairness required stems not solely from constitutional due process considerations, but from the Congressional design of the statutory proceedings.

This design dictates concern not only for the FTC Chairman’s duty to serve as policymaker as well as decisionmaker, a concern embraced by the majority, but also requires recognition of the rights of the public and those who appear before the Commission. It follows logically, then, that where the contestants of a proposed rule have the right to present evidence at a hearing on disputed issues of material fact, as in a Magnuson-Moss rulemaking proceeding, they necessarily have a correlative right to have their evidence heard by a decisionmaker who will give it fair and impartial consideration.

This is not to say that a Commissioner is necessarily to be disqualified if he (or she) has expressed opinions on policy matters that are later involved in Commission rule-making. Rather, the moving party must show by a preponderance of the evidence that the decisionmaker could not participate fairly in the formulation of the rule because of substantial bias or prejudgment on any critical fact that must be resolved in such formulation. Such proof will be greatly aided where, as here, the decisionmaker’s public statements repeatedly reveal fixed conclusions upon the primary issue that the agency proceeding contemplated would only be determined after the hearing. Such standard for disqualification accords with the underlying principles that were applied in Withrow and Hortonville, supra.

Chairman Pertschuk over a substantial period of time, on the very matter here presented, has made numerous appearances as a vigorous public advocate “committed” to curing the “evils” and “moral myopia” evident in the “exploitation” of children’s advertising on TV. Even applying the ma*1198jority’s stiff test for disqualification, such conduct and expressions from his own mouth and pen, as near as words and conduct can, indicate an “irrevocably closed mind” and prejudgment of the ultimate fact involved — the “evil” of such advertising — and he should recuse himself; failing this the court should order his disqualification from participation in the proceedings. He has proved that he is not an impartial decisionmaker on this matter.

For the foregoing reasons I respectfully dissent against the result reached by the majority.

1

. The statute provides:

“(3) Upon the filing of the petition under paragraph (1) of this subsection, the court shall have jurisdiction to review the rule in accordance with chapter 7 of title 5, [United States Code] and to grant appropriate relief, including interim relief, as provided in such chapter. The court shall hold unlawful and set aside the rule on any ground specified in subparagraphs (A), (B), (C), or (D) of section 706(2) of title 5. [United States Code] (taking due account of the rule of prejudicial error), or if—
“(A) the court finds that the Commission’s action is not supported by substantial evidence in the rulemaking record (as defined in paragraph (1)(B) of this subsection) taken as a whole, or
“(B) the court finds that—
“(i) a Commission determination under subsection (c) that the petitioner is not entitled to conduct cross-examination or make rebuttal submissions, or
“(ii) a Commission rule or ruling under subsection (c) limiting the petitioner’s cross-examination or rebuttal submissions, has precluded disclosure of disputed material facts which was necessary for fair determination by the Commission of the rulemaking proceeding taken as a whole.

88 Stat. 2195-2196, 15 U.S.C. § 57a(e)(3).

§ 18(e)(1)(B) provides:

“(B) For purposes of this section, the term ‘rulemaking record’ means the rule, its statement of basis and purpose, the transcript required by subsection (c)(4), any written submissions, and any other information which the Commission considers relevant to such rule. (Emphasis added).

§ 18(c)(4) provides:

“(4) A verbatim transcript shall be taken of any oral presentation, and cross-examination, in an informal hearing to which this subsection applies. Such transcript shall be available to the public.

2

. Id.

3

. Id.

4

. See this court’s opinion in Chocolate Manufacturers Association of United States, Inc. v. F. T. C., 199 U.S.App.D.C. 29, 617 F.2d 611 (D.C.Cir. 1979) in which we referred to the Magnuson-Moss Act as “a codification of the hybrid approach between adjudication and rulemaking”. 199 U.S.App.D.C. at p. 33, 617 F.2d at p. 615.

5

. Davis, Administrative Law of the Seventies, § 15.00-8, at 376 (1976). There is no indication that Professor Davis intended to refer to “rules . made on the record”, the phrase that triggers formal rulemaking under §§ 556, 557 of the Administrative Procedure Act.

6

. Davis, Administrative Law of the Seventies, § 15.00-8, at 375 (1976).

7

. Whether the “disputed issues of material fact” involve adjudicative or legislative facts is clearly not settled. The majority opinion finds that the Section 18 hearing on disputed issues of material fact does not involve legislative facts — and also cites authority that it does. Maj. op. at pp.--- of 201 U.S.App.D.C., pp. 1162-1165 of 627 F.2d.

I note only that whatever characterization be accorded such disputed issues of material fact, the Commission is not authorized to prejudge them prior to the Section 18 hearing.

8

. The Majority opinion states:

No court to our knowledge has imposed procedural requirements upon a legislature before it may act. Indeed, any suggestion that congressmen may not prejudge factual and policy issues is fanciful. A legislator must have the ability to exchange views with constituents and to suggest public policy that is dependent upon factual assumptions. Individual interests impinged upon by the legislative process are protected, as Justice Holmes wrote, ‘in the only way that they can be in a complex society, by [the individual’s] power, immediate or remote, over those who make the rule.’ Bi-Metallic Investment Co. v. State Board of Equalization, 239 U.S. 441, 445, 36 S.Ct. 141, 60 L.Ed. 372 (1915).

Maj. op. p. - of 201 U.S.App.D.C., p. 1165 of 627 F.2d.

9

. Moreover, the personal bias and prejudgment of an individual member of Congress is ordinarily a relatively immaterial matter because of the large number of members in each house. The House does provide that a member shall vote on each question unless he has a “direct personal or pecuniary interest in the event of such question.” Rule VIII, Rules of the House of Representatives (1979). Most of the cases that arise involve pecuniary interests of the members and it is the practice that the member himself determines the question. Dechler’s Procedures, Ch. 30, §§ 4.2-4.7; V Hind’s, §§ 5950, 5951; VIII, 3071. In III Hind’s § 2518 it is reported that Representative Boatner disqualified himself from voting in committee with respect to an investigation of a judge because he had preferred charges against the judge in the prior Congress. This decision by Representative Boatner to disqualify himself is particularly illustrative of the delicacy that should be applied in deciding on disqualification of officials who take a position that stands out in advocating a certain course of subsequent action.

Representative Boatner’s personal interpretation of the disqualification rules is all the more significant because the weight of authority is that, short of a man voting on his own case, there is no authority in the House to deprive a member of the right to vote. V Hind’s §§ 5937, 5952, 5959, 5966, 5967; VIII § 3072. Such situations raise extremely delicate questions of fairness, so public officials, like Congressman Boatner, and judges, should consider the appearance of fairness they present to the public, and most of all should recognize their own prejudgment and bias when it is apparent to the public.

10

. In a similar vein, in Home Box Office v. FCC, 185 U.S.App.D.C. 142, 567 F.2d 9 (D.C.Cir.1977), we concluded that the consideration by the FCC of off the record evidence in a rulemaking proceeding, through ex parte contacts, violated “fundamental notions of fairness”.

11

. The factual situation would have to be as extreme and as public as the Chairman’s conduct here to prove the required bias. The standard for juror disqualification referred to in the concurring opinion, (text accompanying note 2) is not stated fully by asserting that the test is merely whether the juror feels he can lay aside his impression or opinion and render a verdict based on the evidence presented in court. The true test is whether he can lay aside his opinion before the case starts. Irvin v. Dowd, 366 U.S. 717, 728, 81 S.Ct. 1639, 1645, 6 L.Ed.2d 751 (1961) found the jury improperly constituted where some jurors admitted “that it would take evidence to overcome their belief” in the defendant’s guilt. From this it appears that the court was applying a threshold standard. See also Beck v. Washington, 369 U.S. 541, 557, 82 S.Ct. 955, 8 L.Ed.2d 98 (1962), referred to in Murphy v. Florida, 421 U.S. 794, 802, 95 S.Ct. 2031, 44 L.Ed.2d 589 (1975). In Beck,

each [of the persons selected for the trial jury] indicated that he was not biased, that he had formed no opinion as to the petitioner’s guilt which would require evidence to remove, and that he would enter the trial with an open mind disregarding anything he had read in the case.”

369 U.S. at 557, 82 S.Ct. at 964. (Emphasis added). The last requirement is essential and should not be overlooked. The court in Beck clearly applied a threshold test that would have disqualified a juror if he “enterfed] the trial . . . [with an] opinion . . which would require evidence to remove.” Id. This is the only fair and workable standard because otherwise jurors who had opinions they thought they could set aside after the evidence was in would convict a defendant if he did not put in any evidence. An identical threshold test was applied throughout the Teapot Dome trial of Albert B. Fall, Secretary of the Interior in the Harding administration. See the record in that case. Fall v. U. S., 60 App.D.C. 124, 49 F.2d 506, cert. denied, 283 U.S. 867, 51 S.Ct. 657, 75 L.Ed. 1471 (1931).

The concurring opinion also incorrectly states (text accompanying note 3) that the “unalterably closed mind” standard is similar to that employed for the disqualification of judges. The applicable United States statute requires the disqualification of judges on much lesser grounds. It provides that:

“[a]ny justice, judge, magistrate ... of the United States shall disqualify himself in any proceeding in which his impartiality might reasonably be questioned” and “shall also disqualify himself . . . [w]here he has a personal bias or prejudice concerning a party, or personal knowledge of disputed evidentiary facts concerning the proceeding; . . . .” 28 U.S.C. § 455, 88 Stat. 1609, (emphasis added).

28 U.S.C. § 455, 88 Stat. 1609. (emphasis added).

If that standard were applicable, there are certainly reasonable grounds for questioning the Chairman’s impartiality.

2.2.3.2.3 Nonlegislative Rules and Guidance 2.2.3.2.3 Nonlegislative Rules and Guidance

2.2.3.2.3.1 What Are Nonlegislative Rules? 2.2.3.2.3.1 What Are Nonlegislative Rules?

2.2.3.2.3.1.1 Hoctor v. United States Department of Agriculture 2.2.3.2.3.1.1 Hoctor v. United States Department of Agriculture

Patrick D. HOCTOR, Petitioner, v. UNITED STATES DEPARTMENT OF AGRICULTURE, Respondent.

No. 95-2571.

United States Court of Appeals, Seventh Circuit.

Argued Feb. 9, 1996.

Decided April 25, 1996.

*167William J. Tabor (argued), Terre Haute, IN, for Patrick D. Hoctor.

Margaret M. Breinholt, M. Bradley Flynn (argued), Dept, of Agriculture, Office of Gen. Counsel, Washington, DC, for U.S. Dept, of Agriculture.

Before POSNER, Chief Judge, and DIANE P. WOOD and EVANS, Circuit Judges.

POSNER, Chief Judge.

A rule promulgated by an agency that is subject to the Administrative Procedure Act is invalid unless the agency first issues a public notice of proposed rulemaking, describing the substance of the proposed rule, and gives the public an opportunity to submit written comments; and if after receiving the comments it decides to promulgate the rule it must set forth the basis and purpose of the rule in a public statement. 5- U.S.C. §§ 553(b), (c). These procedural requirements do not apply, however, to “interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice.” 5 U.S.C. § 553(b)(A). Distinguishing between a “legislative” rule, to which the notice and comment provisions of the Act apply, and an interpretive rule, to which these provisions do not apply, is often very difficult — and often very important to regulated firms, the public, and the agency. Notice and comment rulemaking is time-consuming, facilitates the marshaling of opposition to a proposed rule, and may result in the creation of a very long record that may in turn provide a basis for a judicial challenge to the rule if the agency decides to promulgate it. There are no formalities attendant upon the promulgation of an interpretive rule, but this is tolerable because such a rule is “only” an interpretation. Every governmental agency that enforces a less than crystalline statute must interpret the statute, and it does the public a favor if it announces the interpretation in advance of enforcement, whether the announcement takes the form of a rule or of a policy statement, which the Administrative Procedure Act assimilates to an interpretive rule. It would be no favor to the public to discourage the announcement of agencies’ interpretations by burdening the interpretive process with cumbersome formalities.

The question presented by this appeal from an order of the Department of Agriculture is whether a rule for the secure containment of animals, a rule promulgated by the Department under the Animal Welfare Act, 7 U.S.C. §§ 2131 et seq., without compliance with the notice and comment requirements of the Administrative Procedure Act, is nevertheless valid because it is merely an interpretive rule. Enacted in 1966, the Animal Welfare Act, as its title implies, is primarily designed to assure the humane treatment of animals. The Act requires the licensing of dealers (with obvious exceptions, for example retail pet stores) and exhibitors, and authorizes the Department to impose sanctions on licensees who violate either the statute itself or the rules promulgated by the Department under the authority of 7 U.S.C. § 2151, which authorizes the Secretary of Agriculture “to promulgate such rules, regulations, and orders as he may deem necessary in order to effectuate the purposes of [the Act].” The Act provides guidance to the exercise of this rulemaking authority by requiring the Department to formulate standards “to govern the humane handling, care, treatment, and transportation of animals by dealers,” and these standards must include minimum requirements “for handling, housing, feeding, watering, sanitation,” etc. 7 U.S.C. § 2143(a).

The Department has employed the notice and comment procedure to promulgate a regulation, the validity of which is not questioned, that is entitled “structural strength” and that provides that “the facility [housing the animals] must be constructed of such *168material and of such strength as appropriate for the animals involved. The indoor and outdoor housing facilities shall be structurally sound and shall be maintained in good repair to protect the animals from injury and to contain the animals.” 9 C.F.R. § 3.125(a).

Enter the petitioner, Patrick Hoctor, who in 1982 began dealing in exotic animals on his farm outside of Terre Haute. In a 25-acre compound he raised a variety of animals including “Big Cats” — a typical inventory included three lions, two tigers, seven ligers (a liger is a cross between a male lion and a female tiger, and is thus to be distinguished from a tigon), six cougars, and two snow leopards. The animals were in pens (“primary enclosures” in the jargon of the administration of the Animal Welfare Act). The area in which the pens were located was surrounded by a fence (“containment fence”). In addition, Hoctor erected a fence around the entire compound (“perimeter fence”). At the suggestion of a veterinarian employed by the Agriculture Department who was assigned to inspect the facility when Hoctor started his animal dealership in 1982, Hoctor made the perimeter fence six feet high.

The following year the Department issued an internal memorandum addressed to its force of inspectors in which it said that all “dangerous animals,” defined as including, among members of the cat family, lions, tigers, and leopards, must be inside a perimeter fence at least eight feet high. This provision is the so-called interpretive rule, interpreting the housing regulation quoted above. An agency has, of course, the power, indeed the inescapable duty, to interpret its own legislative rules, such as the housing standard, just as it has the power and duty to interpret a statute that it enforces. Stinson v. United States, 508 U.S. 36, 42-46, 113 S.Ct. 1913, 1918-19, 123 L.Ed.2d 598 (1993).

On several occasions beginning in 1990, Hoctor was cited by a Department of Agriculture inspector for violating 9 C.F.R. § 3.125(a), the housing standard, by failing to have an eight-foot perimeter fence. Eventually the Department sanctioned Hoctor for this and other alleged violations, and he has sought judicial review limited, however, to the perimeter fence. He is a small dealer and it would cost him many thousands of dollars to replace his six-foot-high fence with an eight-foot-high fence. Indeed, we were told at argument that pending the resolution of his dispute over the fence he has discontinued dealing in Big Cats. The parties agree that unless the rule requiring a perimeter fence at least eight feet high is a valid interpretive rule, the sanction for violating it was improper.

We may assume, though we need not decide, that the Department of Agriculture has the statutory authority to require dealers in dangerous animals to enclose their compounds with eight-foot-high fences. The fence is a backup fail-safe device, since the animals are kept in pens, cages, or other enclosures within the compound, in an area that is itself fenced, rather than being free to roam throughout the compound. Since animals sometimes break out or are carelessly let out of their pens, a fail-safe device seems highly appropriate, to say the least. Two lions once got out of their pen on Hoctor’s property, and he had to shoot them. Yet, when he did so, they were still within the containment fence. The Department’s regulations do not require a containment fence, and it is unclear to us why, if that fence was adequate — and we are given no reason to suppose it was not — Hoctor should have had to put up an additional fence, let alone one eight-feet high. But we lay any doubts on this score to one side. And we may also assume that the containment of dangerous animals is a proper concern of the Department in the enforcement of the Animal Welfare Act, even though the purpose of the Act is to protect animals from people rather than people from animals. Even Big Cats are not safe outside their compounds, and with a lawyer’s ingenuity the Department’s able counsel reminded us at argument that if one of those Cats mauled or threatened a human being, the Cat might get into serious trouble and thus it is necessary to protect human beings from Big Cats in order to protect the Cats from human beings, which is the important thing under the Act. In fact Hoctor had shot the two lions because they were dangerously close to one of his employees. Since tort liability for injury caused by a wild *169animal is strict, Burns v. Gleason, 819 F.2d 555 (5th Cir.1987); Behrens v. Bertram Mills Circus Ltd., [1957] 2 Q.B. 1; W. Page Keeton et al., Prosser and Keeton on the Law of Torts § 76, p. 542 (5th ed. 1984), the common law, at least, is solicitous for the protection of the citizens of Terre Haute against escapees from Hoetor’s menagerie even if the Animal Welfare Act is not. The internal memorandum also justifies the eight-foot requirement as a means of protecting the animals from animal predators, though one might have supposed the Big Cats able to protect themselves against the native Indiana fauna.

Another issue that we need not resolve besides the issue of the statutory authority for the challenged rule is whether the Department might have cited Hoctor for having a perimeter fence that was in fact, considering the number and type of his animals, the topography of the compound, the design and structure of the protective enclosures and the containment fence, the proximity of highways or inhabited areas, and the design of the perimeter fence itself, too low to be safe, as distinct from merely being lower than eight feet. No regulation is targeted on the problem of containment other than 9 C.F.R. § 3.125, which seems to be concerned with the strength of enclosures rather than their height. But maybe there is some implicit statutory duty of containment that Hoctor might have been thought to have violated even if there were no rule requiring an eight-foot-high perimeter fence.

We need not decide. The only ground on which the Department defends sanctioning Hoctor for not having a high enough fence is that requiring an eight-foot-high perimeter fence for dangerous animals is an interpretation of the Department’s own structural-strength regulation, and “provided an agency’s interpretation of its own regulations does nOfNib'l^te the Constitution or a federal statute, it must be given ‘controlling weight unless it is plainly erroneous or inconsistent with the regulation.’ ” Stinson v. United States, supra, 508 U.S. at 44-46, 113 S.Ct. at 1919. The “provided” clause does not announce a demanding standard of judicial review, although the absence of any reference in the housing regulation to fences or height must give us pause. The regulation appears only to require that pens and other animal housing be sturdy enough in design and construction, and sufficiently well maintained, to prevent the animals from breaking through the enclosure — not that any enclosure, whether a pen or a perimeter fence, be high enough to prevent the animals from escaping by jumping over the enclosure. The Department’s counsel made the wonderful lawyer’s argument that the eight-foot rule is consistent with the regulation because a fence lower than eight feet has zero structural strength between its height (here six feet) and the eight-foot required minimum. The two feet by which Hoctor’s fence fell short could not have contained a groundhog, let alone a liger, since it was empty space.

Our doubts about the scope of the regulation that the eight-foot rule is said to be “interpreting” might seem irrelevant, since even if a rule requiring an eight-foot perimeter fence could not be based on the regulation, it could be based on the statute itself, which in requiring the Department to establish minimum standards for the housing of animals presumably authorizes it to promulgate standards for secure containment. But if the eight-foot rule were deemed one of those minimum standards that the Department is required by statute to create, it could not possibly be thought an interpretive rule. For what would it be interpreting? When Congress authorizes an agency to create standards, it is delegating legislative authority, rather than itself setting forth a standard which the agency might then particularize through interpretation. Put differently, when a statute does not impose a duty on the persons subject to it but instead authorizes (or requires — it makes no difference) an agency to impose a duty, the formulation of that duty becomes á legislative task entrusted to the agency. Provided that a rule promulgated pursuant to such a delegation is intended to bind, and not merely to be a tentative statement of the agency’s view, which would make it just a policy statement, and not a rule at all, the rule would be the clearest possible example of a legislative rule, as to which the notice and comment procedure not followed here is mandatory, as dis*170tinct from an interpretive rule; for there would be nothing to interpret. American Mining Congress v. Mine Safety & Health Administration, 995 F.2d 1106, 1109 (D.C.Cir.1993); Robert A. Anthony, “ ‘Interpretive’ Rules, ‘Legislative’ Rules and ‘Spurious’ Rules: Lifting the Smog,” 8 Admin. L.J. of Am. Univ. 1 (1994). That is why the Department must argue that its eight-foot rule is an interpretation of the structural-strength regulation-itself a standard, and therefore interpretable, in order to avoid reversal.

Even if, despite the doubts that we expressed earlier, the eight-foot rule is consistent with, even in some sense authorized by, the structural-strength regulation, it would not necessarily follow that it is an interpretive rule. It is that only if it can be derived from the regulation by a process reasonably described as interpretation. Metropolitan School District v. Davila, 969 F.2d 485, 490 (7th Cir.1992). Supposing that the regulation imposes a general duty of secure containment, the question is, then, Can a requirement that the duty be implemented by erecting an eight-foot-high perimeter fence be thought an interpretation of that general duty?

“Interpretation” in the narrow sense is the ascertainment of meaning. It is obvious that eight feet is not part of the meaning of secure containment. But “interpretation” is often used in a much broader sense. A process of “interpretation” has transformed the Constitution into a body of law undreamt of by the framers. To skeptics the Miranda rule is as remote from the text of the Fifth Amendment as the eight-foot rule is from the text of 9 C.F.R. § 3.125(a). But our task in this case is not to plumb the mysteries of legal theory; it is merely to give effect to a distinction that the Administrative Procedure Act makes, and we can do this by referring to the purpose of the distinction. The purpose is to separate the cases in which notice and comment rulemaking is required from the cases in which it is not required. As we noted at the outset, unless a statute or regulation is of crystalline transparency, the agency enforcing it cannot avoid interpreting it, and the agency would be stymied in its enforcement duties if every time it brought a case on a new theory it had to pause for a bout, possibly lasting several years, of notice and comment rulemaking. Besides being unavoidably continuous, statutory interpretation normally proceeds without the aid of elaborate factual inquiries. When it is an executive or administrative agency that is doing the interpreting it brings to the task a greater knowledge of the regulated activity than the judicial or legislative branches have, and this knowledge is to some extent a substitute for formal fact-gathering.

At the other extreme from what might be called normal or routine interpretation is the making of reasonable but arbitrary (not in the “arbitrary or capricious” sense) rules that are consistent with the statute or regulation under which the rules are promulgated but not derived from it, because they represent an arbitrary choice among methods of implementation. A rule that turns on a number is likely to be arbitrary in this sense. There is no way to reason to an eight-foot perimeter-fence rule as opposed to a seven- and-a-half foot fence or a nine-foot fence or a ten-foot fence. None of these candidates for a rule is uniquely appropriate to, and in that sense derivable from, the duty of secure containment. This point becomes even clearer if we note that the eight-foot rule actually has another component — the fence must be at least three feet from any animal's pen. "Why three feet? Why not four? Or two?

The reason courts refuse to create statutes of limitations is precisely the difficulty of reasoning to a number by the methods of reasoning used by courts. Hemmings v. Barian, 822 F.2d 688, 689 (7th Cir.1987). One cannot extract from the concept of a tort that a tort suit should be barred unless brought within one, or two, or three, or five years. The choice is arbitrary and courts are uncomfortable with making arbitrary choices. They see this as a legislative function. Legislators have the democratic legitimacy to make choices among value judgments, choices based on hunch or guesswork or even the toss of a coin, and other arbitrary choices. When agencies base rules on arbitrary choices they are legislating, and so these rules are legislative or substantive and *171require notice and comment rulemaking, a procedure that is analogous to the procedure employed by legislatures in making statutes. The notice of proposed rulemaking corresponds to the bill and the reception of written comments to the hearing on the bill.

The common sense of requiring notice and comment rulemaking for legislative rules is well illustrated by the facts of this case. There is no process of cloistered, appellate-court type reasoning by which the Department of Agriculture could have excogitated the eight-foot rule from the structural-strength regulation. The rule is arbitrary in the sense that it could well be different without significant impairment of any regulatory purpose. But this does not make the rule a matter of indifference to the people subject to it. There are thousands of animal dealers, and some unknown fraction of these face the prospect of having to tear down their existing fences and build new, higher ones at great cost. The concerns of these dealers are legitimate and since, as we are stressing, the rule could well be otherwise, the agency was obliged to listen to them before settling on a final rule and to provide some justification for that rule, though not so tight or logical a justification as a court would be expected to offer for a new judge-made rule. Notice and comment is the procedure by which the persons affected by legislative rules are enabled to communicate their concerns in a comprehensive and systematic fashion to the legislating agency. The Department’s lawyer speculated that if the notice and comment route had been followed in this case the Department would have received thousands of comments. The greater the public interest in a rule, the greater reason to allow the public to participate in its formation.

We are not saying that an interpretive rule can never have a numerical component. See, e.g., American Mining Congress v. Mine Safety & Health Administration, supra, 995 F.2d at 1108, 1113; St. Mary’s Hospital v. Blue Cross & Blue Shield Ass’n., 788 F.2d 888, 889-91 (2d Cir.1986). There is merely an empirical relation between interpretation and generality on the one hand, and legislation and specificity on the other. Especially in scientific and other technical areas, where quantitative criteria are common, a rule that translates a general norm into a number may be justifiable as interpretation. The mine safety agency in the American Mining case could refer to established medical criteria, expressed in terms of numerical evaluations of x-rays, for diagnosing black-lung disease. 995 F.2d at 1112-13. Even in a nontechnical area the use of a number as a rale of thumb to guide the application of a general norm will often be legitimately interpretive. Had the Department of Agriculture said in the internal memorandum that it could not imagine a case in which a perimeter fence for dangerous animals that was lower than eight feet would provide secure containment, and would therefore presume, subject to rebuttal, that a lower fence was insecure, it would have been on stronger ground. For it would have been tying the rule to the animating standard, that of secure containment, rather than making it stand free of the standard, self-contained, unbending, arbitrary. To switch metaphors, the “flatter” a rule is, the harder it is to conceive of it as merely spelling out what is in some sense latent in a statute or regulation, and the eight-foot rule in its present form is as flat as they come. At argument the Department’s lawyer tried to loosen up the rale, implying that the Department might have bent it if Hoetor proposed to dig a moat or to electrify his six-foot fence. But an agency’s lawyer is not authorized to amend its rales in order to make them more palatable to the reviewing court.

The Department’s position might seem further undermined by the fact that it has used the notice and comment procedure to promulgate rules prescribing perimeter fences for dogs and monkeys. 9 C.F.R. §§ 3.6(e)(2)(ii), 3.77(f). Why it proceeded differently for dangerous animals is unexplained. But we attach no weight to the Department’s inconsistency, not only because it would be unwise to penalize the Department for having at least partially complied with the requirements of the Administrative Procedure Act, but also because there is nothing in the Act to forbid an agency to use the notice and comment procedure in cases in *172which it is not required to do so. We are mindful that the court in United States v. Picciotto, 875 F.2d 345, 348 (D.C.Cir.1989), thought that the fact that an agency had used notice and comment rulemaking in a setting similar to the case before the court was evidence that the agency “intended” to promulgate a legislative rule in that case, only without bothering with notice and comment. The inference is strained, and in any event we think the agency’s “intent,” though a frequently cited factor, is rather a makeweight. What the agency intends is to promulgate a rule. It is for the courts to say whether it is the kind of rule that is valid only if promulgated after notice and comment. It is that kind of rule if, as in the present ease, it cannot be derived by'interpretation. The order under review, based as it was on a rule that is invalid because not promulgated in accordance with the required procedure, is therefore

VACATED.

2.2.3.2.3.1.2 American Mining Congress v. Mine Safety & Health Administration 2.2.3.2.3.1.2 American Mining Congress v. Mine Safety & Health Administration

995 F.2d 1106

AMERICAN MINING CONGRESS and National Industrial Sand Association, Petitioners, v. MINE SAFETY & HEALTH ADMINISTRATION and U.S. Department of Labor, AMERICAN MINING CONGRESS, and National Industrial Sand Association, Petitioners, v. U.S. DEPARTMENT OF LABOR and William J. Tattersall, Assistant Secretary of Labor for Mine Safety and Health, and Mine Safety and Health Administration, Respondents.

Nos. 91-1501, 92-1188, 92-1331.

United States Court of Appeals, District of Columbia Circuit.

Argued Nov. 10, 1992.

Decided June 15, 1993.

Rehearing and Suggestion for Rehearing En Banc Denied in No. 91-1501 Sept. 8, 1993.

*39Thomas C. Means, Washington, DC, argued the cause for petitioner. With him on the briefs were Edward M. Green, Mark G. Ellis, Timothy M. Biddle and Robert Timothy McCrum, Washington, DC.

Marshall J. Breger, Solicitor, Dept, of Labor, Washington, DC, argued the cause for respondent. With him on the brief were Allen H. Feldman, Nathaniel I. Spiller & Marks, Flynn, W. Christian Schumann and Jerald S. Feingold, Washington, DC.

Before: WILLIAMS, SENTELLE and RANDOLPH, Circuit Judges.

Opinion for the Court filed by Circuit Judge STEPHEN F. WILLIAMS.

STEPHEN F. WILLIAMS, Circuit Judge:

This case presents a single issue: whether Program Policy Letters of the Mine Safety and Health Administration, stating the agency’s position that certain x-ray readings qualify as “diagnose[s]” of lung disease within the meaning of agency reporting regulations, are interpretive rules under the Administrative Procedure Act. We hold that they are.

The Federal Mine Safety and Health Act, 30 U.S.C. § 801 et seq., extensively regulates health and safety conditions in the nation’s mines and empowers the Secretary of Labor to enforce the statute and relevant regulations. See id. at §§ 811, 813-14. In addition, the Act requires “every operator of a ... mine ... [to] establish and maintain such records, make such reports, and provide such information, as the Secretary ... may reasonably require from time to time to enable him to perform his functions.” Id. at § 813(h). The Act makes a general grant of authority to the Secretary to issue “such regulations as ... [he] deems appropriate to carry out” any of its provisions. Id. at § 957.

Pursuant to its statutory authority, the Mine Safety and Health Administration (acting on behalf of the Secretary of Labor) maintains regulations known as “Part 50” regulations, which cover the “Notification, Investigation, Reports and Records of Accidents, Injuries, Illnesses, Employment, and Coal Production in Mines.” See 30 CFR Part 50. These were adopted via notiee-andcomment rulemaking. See 42 Fed.Reg. 55568 (1977) (notice of proposed rulemaking); 42 Fed.Reg. 65534 (1977) (adopted rules).1 Subpart C deals with the “Reporting of Accidents, Injuries, and Illnesses” and requires mine operators to report to the MSHA within ten days “each accident, occupational injury, or occupational illness” that occurs at a mine. See 30 CFR § 50.20(a). Of central importance here, the regulation also says that whenever any of certain occupational illnesses are “diagnosed,” the operator must similarly report the diagnosis within ten days. Id. (emphasis added). Among the occupational illnesses covered are “[s]ilicosis, asbestosis, coal worker’s pneumoconiosis, and other pneumoconioses.” Id. at § 50.20-6(b)(7)(ii). An operator’s failure to report may lead to citation and penalty. See 30 U.S.C. §§ 814(a), 815(a) & (d), 816(a).

As the statute and formal regulations contain ambiguities, the MSHA from time to time issues Program Policy Letters (“PPLs”) intended to coordinate and convey agency policies, guidelines, and interpretations to agency employees and interested members of the public. See MSHA Administrative Policy and Procedures Manual, Volume II, paragraph 112 (July 17, 1990); MSHA Program Information Bulletin No. 88-OS (August 19, 1988). One subject on which it has done so— apparently in response to inquiries from mine operators about whether certain x-ray *40results needed to be reported as “diagnoses]” — has been the meaning of the term diagnosis for purposes of Part 50.

The first of the PPLs at issue here, PPL No. 91-III-2 (effective September 6, 1991), stated that any chest x-ray of a miner who had a history of exposure to pneumonoconiosis-causing dust that rated 1/0 or higher on the International Labor Office (ILO) classification system would be considered a “diagnosis that the x-rayed miner has silicosis or one of the other pneumonoconioses” for the purposes of the Part 50 reporting requirements. (The ILO classification system uses a 12-step scale to measure the concentration of opacities (i.e., areas of darkness or shading) on chest x-rays. A 1/0 rating is the fourth most severe of the ratings.) The 1991 PPL also set up a procedure whereby, if a mine operator had a chest x-ray initially evaluated by a relatively unskilled reader, the operator could seek a reading by a more skilled one; if the latter rated the x-ray below 1/0, the MSHA would delete the “diagnosis” from its files. We explain the multiple-reader rules further in the context of the third PPL, where they took their final form (so far).

The second letter, PPL No. P92-III-2 (effective May 6, 1992), superseded the 1991 PPL but largely repeated its view about a Part 50 diagnosis. In addition, the May 1992 PPL stated the MSHA’s position that mere diagnosis of an occupational disease or illness within the meaning of Part 50 did not automatically entitle a miner to benefits for disability or impairment under a workers’ compensation scheme. The PPL also said that the MSHA did not intend for an operator’s mandatory reporting of an x-ray reading to be equated with an admission of liability for the reported disease.

The final PPL under dispute, PPL No. P92-III-2 (effective August 1, 1992), replaced the May 1992 PPL and again restated the MSHA’s basic view that a chest x-ray rating above 1/0 on the ILO scale constituted a “diagnosis” of silicosis or some other pneumoconiosis. The August 1992 PPL also modified the MSHA’s position on additional readings. Specifically, when the first reader is not a “B” reader (i.e., one certified by the National Institute of Occupational Safety and Health to perform ILO ratings), and the operator seeks a reading from a “B” reader, the MSHA will stay enforcement for failure to report the first reading. If the “B” reader concurs with the initial determination that the x-ray should be scored a 1/0 or higher, the mine operator must report the “diagnosis”. If the “B” reader scores the x-ray below 1/0, the MSHA will continue to stay enforcement if the operator gets a third reading, again from a “B” reader; the MSHA then will accept the majority opinion of the three readers.

The MSHA did not follow the notice and comment requirements of 5 U.S.C. § 553 in issuing any of the three PPLs. In defending its omission of notice and comment, the agency relies solely on the interpretive rule exemption of § 553(b)(3)(A).

We note parenthetically that the agency also neglected to publish any of the PPLs in the Federal Register, but distributed them to all mine operators and independent contractors with MSHA identification numbers, as well as to interested operator associations and trade unions. Compare 5 U.S.C. § 552(a)(1)(D) (requiring publication in the Federal Register of all “interpretations of general applicability”) with id. at § 552(a)(2)(B) (requiring agencies to make available for public inspection and copying “those statements of policy and interpretations which have been adopted by the agency and are not published in the Federal Register”). Petitioners here make no issue of the failure to publish in the Federal Register.

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The distinction between those agency pronouncements subject to APA notice-and-comment requirements and those that are exempt has been aptly described as “enshrouded in considerable smog,” General Motors Corporation v. Ruckelshaus, 742 F.2d 1561, 1565 (D.C.Cir.1984) (en banc) (quoting Noel v. Chapman, 508 F.2d 1023, 1030 (2d Cir.1975)); see also American Hospital Association v. Bowen, 834 F.2d 1037, 1046 (D.C.Cir.1987) (calling the fine between interpretive and legislative rules “fuzzy”); Community Nutrition Institute v. Young, 818 F.2d 943, 946 (D.C.Cir.1987) (quoting authorities de*41scribing the present distinction between legislative rules and policy statements as “tenuous,” “blurred” and “baffling”).

Given the confusion, it makes some sense to go back to the origins of the distinction in the legislative history of the Administrative Procedure Act. Here the key document is the Attorney General’s Manual on the Administrative Procedure Act (1947), which offers “the following working definitions”:

Substantive rules — rules, other than organizational or procedural under section 3(a)(1) and (2), issued by an agency pursuant to statutory authority and which implement the statute, as, for example, the proxy rules issued by the Securities and Exchange Commission pursuant to section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 78n). Such rules have the force and effect of law.
Interpretative rules — rules or statements issued by an agency to advise the public of the agency’s construction of the statutes and rules which it administers____
General statements of policy — statements issued by an agency to advise the public prospectively of the manner in which the agency proposes to exercise a discretionary power.

Id. at 30 n. 3. See also Michael Asimow, Public Participation in the Adoption of Interpretive Rules and Policy Statements, 75 Mich.L.Rev. 520, 542 & n. 95 (1977) (reading legislative history of Administrative Procedure Act as “suggest[ing] an intent to adopt the legal effect test” as marking the line between substantive and interpretive rules).

Our own decisions have often used similar language, inquiring whether the disputed rule has “the force of law”. See, e.g., National Latino Media Coalition v. FCC, 816 F.2d 785, 787-88 (D.C.Cir.1987). We have said that a rule has such force only if Congress has delegated legislative power to the agency and if the agency intended to exercise that power in promulgating the rule. See, e.g., American Postal Workers Union v. U.S. Postal Service, 707 F.2d 548, 558 (D.C.Cir.1983).

On its face, the “intent to exercise” language may seem to lead only to more smog, but in fact there are a substantial number of instances where such “intent” can be found with some confidence. The first and clearest case is where, in the absence of a legislative rule by the agency, the legislative basis for agency enforcement would be inadequate. The example used by the Attorney General’s Manual fits exactly — the SEC’s proxy authority under § 14 of the Securities Exchange Act of 1934, 15 U.S.C. § 78n. Section 14(b), for example, forbids certain persons, “to give, or to refrain from giving a proxy” “in contravention of such rules and regulations as the Commission may prescribe”. 15 U.S.C. § 78n(b). The statute itself forbids nothing except-acts or omissions to be spelled out by the Commission in “rules or regulations”. The present case is similar, as to Part 50 itself, in that § 813(h) merely requires an operator to maintain “such records ... as the Secretary ... may reasonably require from time to time”. 30 U.S.C. § 813(h). Although the Secretary might conceivably create some “require[ments]” ad hoc, clearly some agency creation of a duty is a necessary predicate to any enforcement against an operator for failure to keep records. Analogous cases may exist in which an agency may offer a government benefit only after it formalizes the prerequisites.

Second, an agency seems likely to have intended a rule to be legislative if it has the rule published in the Code of Federal Regulations; 44 U.S.C. § 1510 limits publication in that code to rules “having general applicability and legal effect”. See Brock v. Cathedral Bluffs Shale Oil Co., 796 F.2d 533, 539 (D.C.Cir.1986) (Scalia, J.).

Third, “ ‘[i]f a second rule repudiates or is irreconcilable with [a prior legislative rule], the second rule must be an amendment of the first; and, of course, an amendment to a legislative rule must itself be legislative.’” National Family Planning & Reproductive Health Ass’n v. Sullivan, 979 F.2d 227, 235 (D.C.Cir.1992) (quoting Michael Asimow, Nonlegislative Rulemaking and Regulatory Reform, 1985 Duke L.J. 381, 396). See also State of Alaska v. DOT, 868 F.2d 441, 446-47 (D.C.Cir.1989); Homemakers North Shore, *42 Inc. v. Bowen, 832 F.2d 408, 412 (7th Cir.1987).

There are variations on these themes. For example, in Chamber of Commerce v. OSHA, 636 F.2d 464 (D.C.Cir.1980), the agency had on a prior occasion claimed that a certain statutory term, correctly understood, itself imposed a specific requirement on affected businesses. We found that interpretation substantively invalid, but noted the agency’s power to promulgate such a requirement on the basis of more general authority. Leone v. Mobil Oil Corp., 523 F.2d 1153 (D.C.Cir.1975). The agency then issued a purported interpretive rule to fill the gap (without notice and comment), and we struck it down as an invalid exercise of the agency’s legislative powers. Chamber of Commerce, 636 F.2d at 469.

We reviewed a similar juxtaposition of different agency modes in Fertilizer Institute v. EPA 935 F.2d 1303, 1308 (D.C.Cir.1991). There a statute created a duty to report any “release” of a “reportable quantity” or “RQ” of certain hazardous materials, specifying the RQs but authorizing the EPA to change them by regulation. See 42 U.S.C. § 9602(b). In the preamble to a legislative rule exercising its authority to amend the RQs, the EPA also expatiated on the meaning of the statutory term “release” — improperly broadening it, as petitioners claimed and as we ultimately found. 935 F.2d at 1309-10. But we rejected a claim that the agency’s attempted exposition of the term “release” was not an interpretation and therefore required notice and comment. Id. at 1307-09.

In United States v. Picciotto, 875 F.2d 345 (D.C.Cir.1989), the Park Service had issued an indisputably legislative rule containing an “open-ended” provision stating that a “permit may contain additional reasonable conditions”. Id. at 346. Then, in a rule issued without notice and comment, it established some such conditions. We struck down the disputed condition, as it was not an interpretation of the prior regulation but an exercise of the legislative authority reserved by the prior legislative rule. Id. at 348.

This focus on whether the agency needs to exercise legislative power (to provide a basis for enforcement actions or agency decisions conferring benefits) helps explain some distinctions that may, out of context, appear rather metaphysical. For example, in Fertilizer Institute we drew a distinction between instances where an agency merely “declare[s] its understanding of what a statute requires” (interpretive), and ones where an agency “go[es] beyond the text of a statute” (legislative). Id. at 1308. See also Chamber of Commerce, 636 F.2d at 469 (distinguishing between “constru[ing]” a statutory provision and “supplement[ing]” it). The difficulty with the distinction is that almost every rule may seem to do both. But if the dividing line is the necessity for agency legislative action, then a rule supplying that action will be legislative no matter how grounded in the agency’s “understanding of what the statute requires”, and an interpretation that spells out the scope of an agency’s or regulated entity’s pre-existing duty (such as EPA’s interpretation of “release” in Fertilizer Institute ), will be interpretive, even if, as in that ease itself, it widens that duty even beyond the scope allowed to the agency under Chevron U.S.A, Inc. v. NRDC, 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). See Fertilizer Institute, 935 F,2d at 1308.

Similarly, we have distinguished between cases where a rule is “based on specific statutory provisions” (interpretive), and where one is instead “based on an agency’s power to exercise its judgment as to how best to implement a general statutory mandate” (legislative). United Technologies Corp. v. EPA 821 F.2d 714, 719-20 (D.C.Cir.1987). A statute or legislative rule that actually establishes a duty or a right is likely to be relatively specific (and the agency’s refinement will be interpretive), whereas an agency’s authority to create rights and duties will typically be relatively broad (and the agency’s actual establishment of rights and duties will be legislative). But the legislative or interpretive status of the agency rules turns not in some general sense on the narrowness or breadth of the statutory (or regulatory) term in question, but on the prior existence or non-existence of legal duties and rights.

Of course an agency may for reasons of its own choose explicitly to invoke its general *43legislating authority — perhaps, for example, out of concern that its proposed action might be invalid as an interpretation of some existing mandate, as was true in Leone, the case that set the legal landscape for Chamber of Commerce. In that event, even if a court believed that the agency had been unduly cautious about the legislative background, it would presumably treat the rule as an attempted exercise of legislative power.

In an occasional case we have appeared to stress whether the disputed rule is one with “binding effect” — “binding” in the sense that the rule does not “ ‘genuinely leave[ ] the agency ... free to exercise discretion.’ ” State of Alaska v. DOT, 868 F.2d at 445 (quoting Community Nutrition Institute v. Young, 818 F.2d 943, 945-46 (D.C.Cir.1987)). That inquiry arose in a quite different context, that of distinguishing policy statements, rather than interpretive rules, from legislative norms. The classic application is Pacific Gas & Electric Co. v. FPC, 506 F.2d 33, 38 (D.C.Cir.1974); see also American Bus Ass’n v. United States, 627 F.2d 525, 529 (D.C.Cir.1980) (following PG & E, again in policy statement context). Indeed, the agency’s theory in Community Nutrition was that its pronouncement had been a policy statement. See 818 F.2d at 945-46.

But while a good rule of thumb is that a norm is less likely to be a general policy statement when it purports (or, even better, has proven) to restrict agency discretion, see, e.g., McLouth Steel Products Corp. v. Thomas, 838 F.2d 1317, 1320-21 (D.C.Cir.1988), restricting discretion tells one little about whether a rule is interpretive. See Attorney General’s Manual, supra, at 30 n. 3 (discussing exercise of discretion only in definition of policy statements). Nor is there much explanatory power in any distinction that looks to the use of mandatory as opposed to permissive language. While an agency’s decision to use “will” instead of “may” may be of use when drawing a line between policy statements and legislative rules, see Community Nutrition, 818 F.2d at 946-47, the endeavor miscarries in the interpretive/Legislative rule context. Interpretation is a chameleon that takes its color from its context; therefore, an interpretation will use imperafive language — or at least have imperative meaning — if the interpreted term is part of a command; it will use permissive language— or at least have a permissive meaning — if the interpreted term is in a permissive provision.

A non-legislative rule’s capacity to have a binding effect is limited in practice by the fact that agency personnel at every level act under the shadow of judicial review. If they believe that courts may fault them for brushing aside the arguments of persons who .contest the rule or statement, they are obviously far more likely to entertain those arguments. And, as failure to provide notice-and-comment rulemaking will usually mean that affected parties have had no prior formal opportunity to present their contentions, judicial review for want of reasoned decisionmaking is likely, in effect, to take place in review of specific agency actions implementing the rule. Similarly, where the agency must defend its view as an application of Chevron “prong two” (i.e., where Congress has not “clearly” decided for or against the agency interpretation), so that only reasonableness is at issue, agency disregard of significant policy arguments will clearly count against it. As Donald Elliott has said, agency attentiveness to parties’ arguments must come sooner or later. “As in the television commercial in which the automobile repairman intones ominously ‘pay me now, or pay me later,’ the agency has a choice____” E. Donald Elliott, Reinventing Rulemaking, 41 Duke L. J. 1490, 1491 (1992). Because the threat of judicial review, provides a spur to the agency to pay attention to facts and arguments submitted in derogation of any rule not supported by notice and comment, even as late as the enforcement stage, any agency statement not subjected to notice-and-comment rule-making will be more vulnerable to attack not only in court but also within the agency itself.

Not only does an agency have an incentive to entertain objections to an interpretive rule, but the ability to promulgate such rules, without notice and comment, does not appear more hazardous to affected parties than the likely alternative. Where a statute or legislative rule has created a legal basis for enforcement, an agency can simply let its inter*44pretation evolve ad hoc in the process of enforcement or other applications (e.g., grants). The protection that Congress sought to secure by requiring notice and comment for legislative rules is not advanced by reading the exemption for “interpretive rule” so narrowly as to drive agencies into pure ad hocery — an ad hocery, moreover, that affords less notice, or less convenient notice, to affected parties.

Accordingly, insofar as our cases can be reconciled at all, we think it almost exclusively on the basis of whether the purported interpretive rule has “legal effect”, which in turn is best ascertained by asking (1) whether in the absence of the rule there would not be an adequate legislative basis for enforcement action or other agency action to confer benefits or ensure the performance of duties, (2) whether the agency has published the rule in the Code of Federal Regulations, (3) whether the agency has explicitly invoked its general legislative authority, or (4) whether the rule effectively amends a prior legislative rule. If the answer to any of these questions is affirmative, we have a legislative, not an interpretive rule.

Here we conclude that the August 1992 PPL is an interpretive rule.2 The Part 50 regulations themselves require the reporting of diagnoses of the specified diseases, so there is no legislative gap that required the PPL as a predicate to enforcement action. Nor did the agency purport to act legislatively, either by including the letter in the Code of Federal Regulations, or by invoking its general legislative authority under 30 U.S.C. § 811(a). See MSHA Program Information Bulletin No. 88-03 (August 19,1988) (characterizing PPLs generally as “[/Interpretation”). The remaining possibility therefore is that the August 1992 PPL is a de facto amendment of prior legislative rules, namely the Part 50 regulations. See National Family Planning & Reproductive Health Ass’n v. Sullivan, 979 F.2d at 235; State of Alaska v. DOT, 868 F.2d at 446-47; Sentara-Hampton General Hospital v. Sullivan, 980 F.2d 749, 759 (D.C.Cir.1992).

A rule does not, in this inquiry, become an amendment merely because it supplies crisper and more detailed lines than the authority being interpreted. If that were so, no rule could pass as an interpretation of a legislative rule unless it were confined to parroting the rule or replacing the original vagueness with another. See American Postal Workers Union, 707 F.2d at 558-59 (interpretive rule establishes new formula for computation of retirement annuities for certain postal workers); see also Fertilizer Institute, 935 F.2d at 1309-10 (rule found to be interpretive notwithstanding its brightline character); General Motors Corporation, 742 F.2d at 1564 (same).

Although petitioners cite some definitions of “diagnosis” suggesting that with pneumoconiosis and silicosis, a diagnosis requires more than a chest x-ray — specifically, additional diagnostic tools as tissue examination or at least an occupational history, see Current Medical Methods in Diagnosing Coal Workers’ Pneumoconiosis, and a Review of the Medical and Legal Definitions of Related Impairment and Disability, submission to Congress by United States Department of Labor, Secretary of Labor William E. Brock (1986) at 4, 19 & 46 — MSHA points to some administrative rules that make x-rays at the level specified here the basis for a finding of pneumoconiosis. See, e.g., 42 CFR § 37.7(a); 20 CFR § 410.428(a)(1); Garcia v. Director, OWCP, 869 F.2d 1413, 1415-16 (10th Cir.1989) (applying § 410.428(a)(1) and other authority). See also ILO, ILO UIC International Classification of Radiographs of Pneumoconioses 16 (1972) (indicating that ILO score above 1/0 reflects evidence of pneumoconiosis); U.S. Department of Health and Human Services, Occupational Respira *45 tory Diseases 148-49 (James Merchant et al., eds., 1986) (ILO scores under 1/0 “are usually regarded as normal or as exhibiting essentially no evidence of pneumoconiosis,” whereas those 1/0 and above “are generally regarded as positive for pneumoconiosis”). A finding of a disease is surely equivalent, in normal terminology, to a diagnosis, and thus the PPLs certainly offer no interpretation that repudiates or is irreconcilable with an existing legislative rule.

We stress that deciding whether an interpretation is an amendment of a legislative rule is different from deciding the substantive validity of that interpretation. An interpretive rule may be sufficiently within the language of a legislative rule to be a genuine interpretation and not an amendment, while at the same time being an incorrect interpretation of the agency’s statutory authority. Cf. Fertilizer Institute, 935 F.2d at 1308 (petitioners’ argument “confuses the question whether the agency is interpreting a statute with the question whether the agency is thoroughly, or properly, interpreting the statute”). Here, petitioners have made no attack on the PPLs’ substantive validity. Nothing that we say upholding the agency’s decision to act without notice and comment bars any such substantive claims.

Accordingly, the petitions for review are

Dismissed.

2.2.3.2.3.2 Procedural Limits on Issuance of Guidance 2.2.3.2.3.2 Procedural Limits on Issuance of Guidance

2.2.3.2.3.2.1 Perez v. Mortg. Bankers Ass'n 2.2.3.2.3.2.1 Perez v. Mortg. Bankers Ass'n

Thomas E. PEREZ, Secretary of Labor, et al., Petitioners
v.
MORTGAGE BANKERS ASSOCIATION et al.
Jerome Nickols, et al., Petitioners
v.
Mortgage Bankers Association.

Nos. 13-1041
13-1052.

Supreme Court of the United States

Argued Dec. 1, 2014.
Decided March 9, 2015.

Edwin S. Kneedler, Washington, DC, for Petitioners.

Allyson N. Ho, Dallas, TX, for Respondents.

Donald B. Verrilli, Jr., Solicitor General, Counsel of Record, Department of Justice, Washington, DC, for Petitioners.

Sam S. Shaulson, Morgan, Lewis & Bockius LLP, New York, NY, Michael W. Steinberg, Morgan, Lewis & Bockius LLP, Washington, DC, Allyson N. Ho, Counsel of Record, John C. Sullivan, Morgan, Lewis & Bockius LLP, Dallas, TX, for Respondent Mortgage Bankers Association.

M. Patricia Smith, Solicitor of Labor, Jennifer S. Brand, Associate Solicitor, Paul L. Frieden, Counsel for Appellate Litigation, Rachel Goldberg, Senior Attorney, U.S. Department of Labor, Washington, *1203DC, Donald B. Verrilli, Jr., Solicitor General, Counsel of Record, Stuart F. Delery, Assistant Attorney General, Edwin S. Kneedler, Deputy Solicitor General, Anthony A. Yang, Assistant to the Solicitor General, Douglas N. Letter, Anthony J. Steinmeyer, Attorneys, Department of Justice, Washington, DC, for Federal Petitioners.

Adam W. Hansen, Counsel of Record, Nichols Kaster, LLP, San Francisco, CA, Paul J. Lukas, Rachhana T. Srey, Nichols Kaster, PLLP, Minneapolis, MN, Sundeep Hora, Alderman, Devorsetz & Hora PLLC, Washington, DC, for Petitioners.

Opinion

Justice SOTOMAYORdelivered the opinion of the Court.

When a federal administrative agency first issues a rule interpreting one of its regulations, it is generally not required to follow the notice-and-comment rulemaking procedures of the Administrative Procedure Act (APA or Act). See 5 U.S.C. § 553(b)(A). The United States Court of Appeals for the District of Columbia Circuit has nevertheless held, in a line of cases beginning with Paralyzed Veterans of Am. v. D.C. Arena L.P.,117 F.3d 579 (1997), that an agency must use the APA's notice-and-comment procedures when it wishes to issue a new interpretation of a regulation that deviates significantly from one the agency has previously adopted. The question in these cases is whether the rule announced in Paralyzed Veteransis consistent with the APA. We hold that it is not.

I

A

The APA establishes the procedures federal administrative agencies use for "rule making," defined as the process of "formulating, amending, or repealing a rule." § 551(5). "Rule," in turn, is defined broadly to include "statement [s] of general or particular applicability and future effect" that are designed to "implement, interpret, or prescribe law or policy." § 551(4).

Section 4 of the APA, 5 U.S.C. § 553, prescribes a three-step procedure for so-called "notice-and-comment rulemaking." First, the agency must issue a "[g]eneral notice of proposed rule making," ordinarily by publication in the Federal Register.§ 553(b). Second, if "notice [is] required," the agency must "give interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments." § 553(c). An agency must consider and respond to significant comments received during the period for public comment. See Citizens to Preserve Overton Park, Inc. v. Volpe,401 U.S. 402, 416, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971); Thompson v. Clark,741 F.2d 401, 408 (C.A.D.C.1984). Third, when the agency promulgates the final rule, it must include in the rule's text "a concise general statement of [its] basis and purpose." § 553(c). Rules issued through the notice-and-comment process are often referred to as "legislative rules" because they have the "force and effect of law." Chrysler Corp. v. Brown,441 U.S. 281, 302-303, 99 S.Ct. 1705, 60 L.Ed.2d 208 (1979)(internal quotation marks omitted).

Not all "rules" must be issued through the notice-and-comment process. Section 4(b)(A) of the APA provides that, *1204unless another statute states otherwise, the notice-and-comment requirement "does not apply" to "interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice." 5 U.S.C. § 553(b)(A). The term "interpretative rule," or "interpretive rule,"1is not further defined by the APA, and its precise meaning is the source of much scholarly and judicial debate. See generally Pierce, Distinguishing Legislative Rules From Interpretative Rules, 52 Admin. L.Rev. 547 (2000); Manning, Nonlegislative Rules, 72 Geo. Wash. L.Rev. 893 (2004). We need not, and do not, wade into that debate here. For our purposes, it suffices to say that the critical feature of interpretive rules is that they are "issued by an agency to advise the public of the agency's construction of the statutes and rules which it administers." Shalala v. Guernsey Memorial Hospital,514 U.S. 87, 99, 115 S.Ct. 1232, 131 L.Ed.2d 106 (1995)(internal quotation marks omitted). The absence of a notice-and-comment obligation makes the process of issuing interpretive rules comparatively easier for agencies than issuing legislative rules. But that convenience comes at a price: Interpretive rules "do not have the force and effect of law and are not accorded that weight in the adjudicatory process." Ibid.

B

These cases began as a dispute over efforts by the Department of Labor to determine whether mortgage-loan officers are covered by the Fair Labor Standards Act of 1938 (FLSA), 52 Stat. 1060, as amended, 29 U.S.C. § 201 et seq.The FLSA "establishe[s] a minimum wage and overtime compensation for each hour worked in excess of 40 hours in each workweek" for many employees. Integrity Staffing Solutions, Inc. v. Busk,574 U.S. ----, ----, 135 S.Ct. 513, 516, 190 L.Ed.2d 410 (2014). Certain classes of employees, however, are exempt from these provisions. Among these exempt individuals are those "employed in a bona fide executive, administrative, or professional capacity ... or in the capacity of outside salesman ...." § 213(a)(1). The exemption for such employees is known as the "administrative" exemption.

The FLSA grants the Secretary of Labor authority to "defin[e]" and "delimi[t]" the categories of exempt administrative employees. Ibid. The Secretary's current regulations regarding the administrative exemption were promulgated in 2004 through a notice-and-comment rulemaking. As relevant here, the 2004 regulations differed from the previous regulations in that they contained a new section providing several examples of exempt administrative employees. See 29 C.F.R. § 541.203. One of the examples is "[e]mployees in the financial services industry," who, depending on the nature of their day-to-day work, "generally meet the duties requirements for the administrative exception." § 541.203(b). The financial services example ends with a caveat, noting that "an employee whose primary duty is selling financial products does not qualify for the administrative exemption." Ibid.

In 1999 and again in 2001, the Department's Wage and Hour Division issued letters opining that mortgage-loan officers do not qualify for the administrative exemption. See Opinion Letter, Loan Officers/Exempt Status, 6A LRR, Wages and Hours Manual 99:8351 (Feb. 16, 2001); Opinion Letter, Mortgage Loan Officers/Exempt Status, id.,at 99:8249. (May *120517, 1999). In other words, the Department concluded that the FLSA's minimum wage and maximum hour requirements applied to mortgage-loan officers. When the Department promulgated its current FLSA regulations in 2004, respondent Mortgage Bankers Association (MBA), a national trade association representing real estate finance companies, requested a new opinion interpreting the revised regulations. In 2006, the Department issued an opinion letter finding that mortgage-loan officers fell within the administrative exemption under the 2004 regulations. See App. to Pet. for Cert. in No. 13-1041, pp. 70a-84a. Four years later, however, the Wage and Hour Division again altered its interpretation of the FLSA's administrative exemption as it applied to mortgage-loan officers. Id.,at 49a-69a. Reviewing the provisions of the 2004 regulations and judicial decisions addressing the administrative exemption, the Department's 2010 Administrator's Interpretation concluded that mortgage-loan officers "have a primary duty of making sales for their employers, and, therefore, do not qualify" for the administrative exemption. Id.,at 49a, 69a. The Department accordingly withdrew its 2006 opinion letter, which it now viewed as relying on "misleading assumption[s] and selective and narrow analysis" of the exemption example in § 541.203(b). Id.,at 68a. Like the 1999, 2001, and 2006 opinion letters, the 2010 Administrator's Interpretation was issued without notice or an opportunity for comment.

C

MBA filed a complaint in Federal District Court challenging the Administrator's Interpretation. MBA contended that the document was inconsistent with the 2004 regulation it purported to interpret, and thus arbitrary and capricious in violation of § 10 of the APA, 5 U.S.C. § 706. More pertinent to this case, MBA also argued that the Administrator's Interpretation was procedurally invalid in light of the D.C. Circuit's decision in Paralyzed Veterans,117 F.3d 579. Under the Paralyzed Veteransdoctrine, if "an agency has given its regulation a definitive interpretation, and later significantly revises that interpretation, the agency has in effect amended its rule, something it may not accomplish" under the APA "without notice and comment." Alaska Professional Hunters Assn., Inc. v. FAA,177 F.3d 1030, 1034 (C.A.D.C.1999). Three former mortgage-loan officers-Beverly Buck, Ryan Henry, and Jerome Nickols-subsequently intervened in the case to defend the Administrator's Interpretation.2

The District Court granted summary judgment to the Department. Mortgage Bankers Assn. v. Solis,864 F.Supp.2d 193 (D.D.C.2012). Though it accepted the parties' characterization of the Administrator's Interpretation as an interpretive rule, id.,at 203, n. 7, the District Court determined that the Paralyzed Veteransdoctrine was inapplicable because MBA had failed to establish its reliance on the contrary interpretation expressed in the Department's 2006 opinion letter. The Administrator's Interpretation, the District Court further determined, was fully supported by the text of the 2004 FLSA regulations. The court accordingly held that the 2010 interpretation was not arbitrary or capricious.3

The D.C. Circuit reversed. Mortgage Bankers Assn. v. Harris,720 F.3d 966 (2013). Bound to the rule of Paralyzed Veteransby precedent, the Court of Appeals *1206rejected the Government's call to abandon the doctrine. 720 F.3d, at 967, n. 1. In the court's view, "[t]he only question" properly before it was whether the District Court had erred in requiring MBA to prove that it relied on the Department's prior interpretation. Id.,at 967. Explaining that reliance was not a required element of the Paralyzed Veteransdoctrine, and noting the Department's concession that a prior, conflicting interpretation of the 2004 regulations existed, the D.C. Circuit concluded that the 2010 Administrator's Interpretation had to be vacated.

We granted certiorari, 573 U.S. ----, 134 S.Ct. 2820, 189 L.Ed.2d 784 (2014), and now reverse.

II

The Paralyzed Veteransdoctrine is contrary to the clear text of the APA's rulemaking provisions, and it improperly imposes on agencies an obligation beyond the "maximum procedural requirements" specified in the APA, Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council, Inc.,435 U.S. 519, 524, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978).

A

The text of the APA answers the question presented. Section 4 of the APA provides that "notice of proposed rule making shall be published in the Federal Register." 5 U.S.C. § 553(b). When such notice is required by the APA, "the agency shall give interested persons an opportunity to participate in the rule making." § 553(c). But § 4 further states that unless "notice or hearing is required by statute," the Act's notice-and-comment requirement "does not apply ... to interpretative rules." § 553(b)(A). This exemption of interpretive rules from the notice-and-comment process is categorical, and it is fatal to the rule announced in Paralyzed Veterans.

Rather than examining the exemption for interpretive rules contained in § 4(b)(A) of the APA, the D.C. Circuit in Paralyzed Veteransfocused its attention on § 1 of the Act. That section defines "rule making" to include not only the initial issuance of new rules, but also "repeal[s]" or "amend[ments]" of existing rules. See § 551(5). Because notice-and-comment requirements may apply even to these later agency actions, the court reasoned, "allow[ing] an agency to make a fundamental change in its interpretation of a substantive regulation without notice and comment" would undermine the APA's procedural framework. 117 F.3d, at 586.

This reading of the APA conflates the differing purposes of §§ 1 and 4 of the Act. Section 1 defines what a rulemaking is. It does not, however, say what procedures an agency must use when it engages in rulemaking. That is the purpose of § 4. And § 4 specifically exempts interpretive rules from the notice-and-comment requirements that apply to legislative rules. So, the D.C. Circuit correctly read § 1 of the APA to mandate that agencies use the same procedures when they amend or repeal a rule as they used to issue the rule in the first instance. See F.C.C. v. Fox Television Stations, Inc.,556 U.S. 502, 515, 129 S.Ct. 1800, 173 L.Ed.2d 738 (2009)(the APA "make[s] no distinction ... between initial agency action and subsequent agency action undoing or revising that action"). Where the court went wrong was in failing to apply that accurate understanding of § 1 to the exemption for interpretive rules contained in § 4: Because an agency is not required to use notice-and-comment procedures to issue an initial interpretive rule, it is also not required to use those procedures when it amends or repeals that interpretive rule.

*1207B

The straightforward reading of the APA we now adopt harmonizes with longstanding principles of our administrative law jurisprudence. Time and again, we have reiterated that the APA "sets forth the full extent of judicial authority to review executive agency action for procedural correctness." Fox Television Stations, Inc.,556 U.S., at 513, 129 S.Ct. 1800. Beyond the APA's minimum requirements, courts lack authority "to impose upon [an] agency its own notion of which procedures are 'best' or most likely to further some vague, undefined public good." Vermont Yankee,435 U.S., at 549, 98 S.Ct. 1197. To do otherwise would violate "the very basic tenet of administrative law that agencies should be free to fashion their own rules of procedure." Id.,at 544, 98 S.Ct. 1197.

These foundational principles apply with equal force to the APA's procedures for rulemaking. We explained in Vermont Yankeethat § 4 of the Act "established the maximum procedural requirements which Congress was willing to have the courts impose upon agencies in conducting rulemaking procedures."Id.,at 524, 98 S.Ct. 1197. "Agencies are free to grant additional procedural rights in the exercise of their discretion, but reviewing courts are generally not free to impose them if the agencies have not chosen to grant them." Ibid.

The Paralyzed Veteransdoctrine creates just such a judge-made procedural right: the right to notice and an opportunity to comment when an agency changes its interpretation of one of the regulations it enforces. That requirement may be wise policy. Or it may not. Regardless, imposing such an obligation is the responsibility of Congress or the administrative agencies, not the courts. We trust that Congress weighed the costs and benefits of placing more rigorous procedural restrictions on the issuance of interpretive rules. See id.,at 523, 98 S.Ct. 1197(when Congress enacted the APA, it "settled long-continued and hard-fought contentions, and enact[ed] a formula upon which opposing social and political forces have come to rest" (internal quotation marks omitted)). In the end, Congress decided to adopt standards that permit agencies to promulgate freely such rules-whether or not they are consistent with earlier interpretations. That the D.C. Circuit would have struck the balance differently does not permit that court or this one to overturn Congress' contrary judgment. Cf. Law v. Siegel,571 U.S. ----, ----, 134 S.Ct. 1188, 1197-1198, 188 L.Ed.2d 146 (2014).

III

MBA offers several reasons why the Paralyzed Veteransdoctrine should be upheld. They are not persuasive.

A

MBA begins its defense of the Paralyzed Veteransdoctrine by attempting to bolster the D.C. Circuit's reading of the APA. "Paralyzed Veterans," MBA contends, "simply acknowledges the reality that where an agency significantly alters a prior, definitive interpretation of a regulation, it has effectively amended the regulation itself," something that under the APA requires use of notice-and-comment procedures. Brief for Respondent 20-21.

The act of "amending," however, in both ordinary parlance and legal usage, has its own meaning separate and apart from the act of "interpreting." Compare Black's Law Dictionary 98 (10th ed. 2014) (defining "amend" as "[t]o change the wording of" or "formally alter ... by striking out, inserting, or substituting words"), with id.,at 943 (defining "interpret" as "[t]o ascertain the meaning and significance of *1208thoughts expressed in words"). One would not normally say that a court "amends" a statute when it interprets its text. So too can an agency "interpret" a regulation without "effectively amend[ing]" the underlying source of law. MBA does not explain how,precisely, an interpretive rule changes the regulation it interprets, and its assertion is impossible to reconcile with the longstanding recognition that interpretive rules do not have the force and effect of law. See Chrysler Corp.,441 U.S., at 302, n. 31, 99 S.Ct. 1705(citing Attorney General's Manual on the Administrative Procedure Act 30, n. 3 (1947)); Skidmore v. Swift & Co.,323 U.S. 134, 140, 65 S.Ct. 161, 89 L.Ed. 124 (1944).

MBA's "interpretation-as-amendment" theory is particularly odd in light of the limitations of the Paralyzed Veteransdoctrine. Recall that the rule of Paralyzed Veteransapplies only when an agency has previously adopted an interpretation of its regulation. Yet in that initial interpretation as much as all that come after, the agency is giving a definite meaning to an ambiguous text-the very act MBA insists requires notice and comment. MBA is unable to say why its arguments regarding revised interpretations should not also extend to the agency's first interpretation.4

Next, MBA argues that the Paralyzed Veteransdoctrine is more consistent with this Court's "functional" approach to interpreting the APA. Relying on Christensen v. Harris County,529 U.S. 576, 120 S.Ct. 1655, 146 L.Ed.2d 621 (2000), and Shalala v. Guernsey Memorial Hospital,514 U.S. 87, 115 S.Ct. 1232, 131 L.Ed.2d 106, MBA contends that we have already recognized that an agency may not "avoid notice-and-comment procedures by cloaking its actions in the mantle of mere 'interpretation.' " Brief for Respondent 23-24.

Neither of the cases MBA cites supports its argument. Our decision in Christensendid not address a change in agency interpretation. Instead, we there refused to give deference to an agency's interpretation of an unambiguous regulation, observing that to defer in such a case would allow the agency "to create de factoa new regulation." 529 U.S., at 588, 120 S.Ct. 1655. Put differently, Christensenheld that the agency interpretation at issue was substantively invalid because it conflicted with the text of the regulation the agency purported to interpret. That holding is irrelevant to this suit and to the Paralyzed Veteransrule, which assesses whether an agency interpretation is procedurally invalid.

As for Guernsey,that case is fully consistent with-indeed, confirms-what the text of the APA makes plain: "Interpretive rules do not require notice and comment."

*1209514 U.S., at 99, 115 S.Ct. 1232. Sidestepping this inconvenient language, MBA instead quotes a portion of the Court's opinion stating that "APA rulemaking would still be required if [an agency] adopted a new position inconsistent with ... existing regulations." Id.,at 100, 115 S.Ct. 1232. But the statement on which MBA relies is dictum. Worse, it is dictum taken out of context. The "regulations" to which the Court referred were two provisions of the Medicare reimbursement scheme. And it is apparent from the Court's description of these regulations in Part II of the opinion that they were legislative rules, issued through the notice-and-comment process. See id.,at 91-92, 115 S.Ct. 1232(noting that the disputed regulations were codified in the Code of Federal Regulations). Read properly, then, the cited passage from Guernseymerely means that "an agency may only change its interpretation if the revised interpretation is consistent with the underlying regulations." Brief for Petitioners in No. 13-1052, p. 44.

B

In the main, MBA attempts to justify the Paralyzed Veteransdoctrine on practical and policy grounds. MBA contends that the doctrine reinforces the APA's goal of "procedural fairness" by preventing agencies from unilaterally and unexpectedly altering their interpretation of important regulations. Brief for Respondent 16.

There may be times when an agency's decision to issue an interpretive rule, rather than a legislative rule, is driven primarily by a desire to skirt notice-and-comment provisions. But regulated entities are not without recourse in such situations. Quite the opposite. The APA contains a variety of constraints on agency decisionmaking-the arbitrary and capricious standard being among the most notable. As we held in Fox Television Stations,and underscore again today, the APA requires an agency to provide more substantial justification when "its new policy rests upon factual findings that contradict those which underlay its prior policy; or when its prior policy has engendered serious reliance interests that must be taken into account. It would be arbitrary and capricious to ignore such matters." 556 U.S., at 515, 129 S.Ct. 1800(citation omitted); see also id.,at 535, 129 S.Ct. 1800(KENNEDY, J., concurring in part and concurring in judgment).

In addition, Congress is aware that agencies sometimes alter their views in ways that upset settled reliance interests. For that reason, Congress sometimes includes in the statutes it drafts safe-harbor provisions that shelter regulated entities from liability when they act in conformance with previous agency interpretations. The FLSA includes one such provision: As amended by the Portal-to-Portal Act of 1947, 29 U.S.C. § 251 et seq.,the FLSA provides that "no employer shall be subject to any liability" for failing "to pay minimum wages or overtime compensation" if it demonstrates that the "act or omission complained of was in good faith in conformity with and in reliance on any written administrative regulation, order, ruling, approval, or interpretation" of the Administrator of the Department's Wage and Hour Division, even when the guidance is later "modified or rescinded." §§ 259(a), (b)(1). These safe harbors will often protect parties from liability when an agency adopts an interpretation that conflicts with its previous position.5

*1210C

MBA changes direction in the second half of its brief, contending that if the Court overturns the Paralyzed Veteransrule, the D.C. Circuit's judgment should nonetheless be affirmed. That is so, MBA says, because the agency interpretation at issue-the 2010 Administrator's Interpretation-should in fact be classified as a legislative rule.

We will not address this argument. From the beginning, the parties litigated this suit on the understanding that the Administrator's Interpretation was-as its name suggests-an interpretive rule. Indeed, if MBA did not think the Administrator's Interpretation was an interpretive rule, then its decision to invoke the Paralyzed Veteransdoctrine in attacking the rule is passing strange. After all, Paralyzed Veteransapplied only to interpretive rules. Consequently, neither the District Court nor the D.C. Circuit considered MBA's current claim that the Administrator's Interpretation is actually a legislative rule. Beyond that, and more important still, MBA's brief in opposition to certiorari did not dispute petitioners' assertions-in their framing of the question presented and in the substance of their petitions-that the Administrator's Interpretation is an interpretive rule. Thus, even assuming MBA did not waive the argument below, it has done so in this Court. See this Court's Rule 15.2; Carcieri v. Salazar,555 U.S. 379, 395-396, 129 S.Ct. 1058, 172 L.Ed.2d 791 (2009).

* * *

For the foregoing reasons, the judgment of the United States Court of Appeals for the District of Columbia Circuit is reversed.

It is so ordered.

Justice ALITO, concurring in part and concurring in the judgment.

I join the opinion of the Court except for Part III-B. I agree that the doctrine of Paralyzed Veterans of America v. D.C. Arena L.P.,117 F.3d 579 (C.A.D.C.1997), is incompatible with the Administrative Procedure Act. The creation of that doctrine may have been prompted by an understandable concern about the aggrandizement of the power of administrative agencies as a result of the combined effect of (1) the effective delegation to agencies by Congress of huge swaths of lawmaking authority, (2) the exploitation by agencies of the uncertain boundary between legislative and interpretive rules, and (3) this Court's cases holding that courts must ordinarily defer to an agency's interpretation of its own ambiguous regulations. See Bowles v. Seminole Rock & Sand Co.,325 U.S. 410, 65 S.Ct. 1215, 89 L.Ed. 1700 (1945). I do not dismiss these concerns, but the Paralyzed Veteransdoctrine is not a viable cure for these problems. At least one of the three factors noted above, however, concerns a matter that can be addressed by this Court. The opinions of Justice SCALIA and Justice THOMAS offer substantial reasons why the Seminole Rockdoctrine may be incorrect. See also Christopher v. SmithKline Beecham Corp.,567 U.S. ----, ---- - ----, 132 S.Ct. 2156, 2168-2169, 183 L.Ed.2d 153 (2012)(citing, inter alia,Manning, Constitutional Structure and Judicial Deference to Agency Interpretations of Agency Rules, 96 Colum. L.Rev. 612 (1996)). I await a case in which the validity of Seminole Rockmay *1211be explored through full briefing and argument.

Justice SCALIA, concurring in the judgment.

I agree with the Court's decision, and all of its reasoning demonstrating the incompatibility of the D.C. Circuit's Paralyzed Veteransholding with the Administrative Procedure Act. Paralyzed Veterans of Am. v. D.C. Arena L.P.,117 F.3d 579 (C.A.D.C.1997). I do not agree, however, with the Court's portrayal of the result it produces as a vindication of the balance Congress struck when it "weighed the costs and benefits of placing more rigorous ... restrictions on the issuance of interpretive rules." Ante,at 1207. That depiction is accurate enough if one looks at this case in isolation. Considered alongside our law of deference to administrative determinations, however, today's decision produces a balance between power and procedure quite different from the one Congress chose when it enacted the APA.

"The [APA] was framed against a background of rapid expansion of the administrative process as a check upon administrators whose zeal might otherwise have carried them to excesses not contemplated in legislation creating their offices." United States v. Morton Salt Co.,338 U.S. 632, 644, 70 S.Ct. 357, 94 L.Ed. 401 (1950). The Act guards against excesses in rulemaking by requiring notice and comment. Before an agency makes a rule, it normally must notify the public of the proposal, invite them to comment on its shortcomings, consider and respond to their arguments, and explain its final decision in a statement of the rule's basis and purpose. 5 U.S.C. § 553(b)-(c); ante,at 1203 - 1204.

The APA exempts interpretive rules from these requirements. § 553(b)(A). But this concession to agencies was meant to be more modest in its effects than it is today. For despite exempting interpretive rules from notice and comment, the Act provides that "the reviewing courtshall ... interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action." § 706(emphasis added). The Act thus contemplates that courts, not agencies, will authoritatively resolve ambiguities in statutes and regulations. In such a regime, the exemption for interpretive rules does not add much to agency power. An agency may use interpretive rules to advisethe public by explaining its interpretation of the law. But an agency may not use interpretive rules to bindthe public by making law, because it remains the responsibility of the court to decide whether the law means what the agency says it means.

Heedless of the original design of the APA, we have developed an elaborate law of deference to agencies' interpretations of statutes and regulations. Never mentioning § 706's directive that the "reviewing court ... interpret ... statutory provisions," we have held that agenciesmay authoritatively resolve ambiguities in statutes. Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,467 U.S. 837, 842-843, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). And never mentioning § 706's directive that the "reviewing court ... determine the meaning or applicability of the terms of an agency action," we have-relying on a case decided before the APA, Bowles v. Seminole Rock & Sand Co.,325 U.S. 410, 65 S.Ct. 1215, 89 L.Ed. 1700 (1945)-held that agenciesmay authoritatively resolve ambiguities in regulations. Auer v. Robbins,519 U.S. 452, 461, 117 S.Ct. 905, 137 L.Ed.2d 79 (1997).

By supplementing the APA with judge-made doctrines of deference, we have revolutionized the import of interpretive rules' exemption from notice-and-comment rulemaking.

*1212Agencies may now use these rules not just to advise the public, but also to bind them. After all, if an interpretive rule gets deference, the people are bound to obey it on pain of sanction, no less surely than they are bound to obey substantive rules, which are accorded similar deference. Interpretive rules that command deference dohave the force of law.

The Court's reasons for resisting this obvious point would not withstand a gentle breeze. Even when an agency's interpretation gets deference, the Court argues, "it is the court that ultimately decides whether [the text] means what the agency says." Ante, at 1208, n. 4. That is not quite so. So long as the agency does not stray beyond the ambiguity in the text being interpreted, deference compelsthe reviewing court to "decide" that the text means what the agency says. The Court continues that "deference is not an inexorable command in all cases," because (for example) it does not apply to plainly erroneous interpretations. Ibid.True, but beside the point. Saying allinterpretive rules lack force of law because plainly erroneous interpretations do not bind courts is like saying allsubstantive rules lack force of law because arbitrary and capricious rules do not bind courts. Of course an interpretive rule must meet certain conditions before it gets deference-the interpretation must, for instance, be reasonable-but once it does so it is every bit as binding as a substantive rule. So the point stands: By deferring to interpretive rules, we have allowed agencies to make binding rules unhampered by notice-and-comment procedures.

The problem is bad enough, and perhaps insoluble if Chevronis not to be uprooted, with respect to interpretive rules setting forth agency interpretation of statutes. But an agency's interpretation of its own regulations is another matter. By giving that category of interpretive rules Auerdeference, we do more than allow the agency to make binding regulations without notice and comment. Because the agency (not Congress) drafts the substantive rules that are the object of those interpretations, giving them deference allows the agency to control the extent of its notice-and-comment-free domain. To expand this domain, the agency need only write substantive rules more broadly and vaguely, leaving plenty of gaps to be filled in later, using interpretive rules unchecked by notice and comment. The APA does not remotely contemplate this regime.

Still and all, what are we to do about the problem? The Paralyzed Veteransdoctrine is a courageous (indeed, brazen) attempt to limit the mischief by requiring an interpretive rule to go through notice and comment if it revises an earlier definitive interpretation of a regulation. That solution is unlawful for the reasons set forth in the Court's opinion: It contradicts the APA's unqualified exemption of interpretive rules from notice-and-comment rulemaking.

But I think there is another solution-one unavailable to the D.C. Circuit since it involves the overruling of one this Court's decisions (that being even a greater fault than merely ignoring the APA). As I have described elsewhere, the rule of Chevron,if it did not comport with the APA, at least was in conformity with the long history of judicial review of executive action, where "[s]tatutory ambiguities ... were left to reasonable resolution by the Executive." United States v. Mead Corp.,533 U.S. 218, 243, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001)(SCALIA, J., dissenting). I am unaware of any such history justifying deference to agency interpretations of its own regulations. And there are weighty reasons to deny a lawgiver the power to write ambiguous laws and then be the judge of what *1213the ambiguity means. See Decker v. Northwest Environmental Defense Center,568 U.S. ----, ---- - ----, 133 S.Ct. 1326, 1339-1342, 185 L.Ed.2d 447 (2013)(SCALIA, J., concurring in part and dissenting in part). I would therefore restore the balance originally struck by the APA with respect to an agency's interpretation of its own regulations, not by rewriting the Act in order to make up for Auer,but by abandoning Auerand applying the Act as written. The agency is free to interpret its own regulations with or without notice and comment; but courts will decide-with no deference to the agency-whether that interpretation is correct.

Justice THOMAS, concurring in the judgment.

I concur in the Court's holding that the doctrine first announced in Paralyzed Veterans of America v. D.C. Arena L.P.,117 F.3d 579 (C.A.D.C.1997), is inconsistent with the Administrative Procedure Act (APA), 5 U.S.C. § 551 et seq.,and must be rejected. An agency's substantial revision of its interpretation of a regulation does not amount to an "amendment" of the regulation as that word is used in the statute.

I write separately because these cases call into question the legitimacy of our precedents requiring deference to administrative interpretations of regulations. That line of precedents, beginning with Bowles v. Seminole Rock & Sand Co.,325 U.S. 410, 65 S.Ct. 1215, 89 L.Ed. 1700 (1945), requires judges to defer to agency interpretations of regulations, thus, as happened in these cases, giving legal effect to the interpretations rather than the regulations themselves. Because this doctrine effects a transfer of the judicial power to an executive agency, it raises constitutional concerns. This line of precedents undermines our obligation to provide a judicial check on the other branches, and it subjects regulated parties to precisely the abuses that the Framers sought to prevent.

I

The doctrine of deference to an agency's interpretation of regulations is usually traced back to this Court's decision in Seminole Rock, supra,which involved the interpretation of a war-time price control regulation, id.,at 411, 65 S.Ct. 1215. Along with a general price freeze, the Administrator of the Office of Price Administration had promulgated specialized regulations governing the maximum price for different commodities. Id.,at 413, 65 S.Ct. 1215. When the Administrator brought an enforcement action against a manufacturer of crushed stone, the manufacturer challenged the Administrator's interpretation of his regulations.

The lower courts agreed with the manufacturer's interpretation, id.,at 412-413, 65 S.Ct. 1215but this Court reversed. In setting out the approach it would apply to the case, the Court announced-without citation or explanation-that an administrative interpretation of an ambiguous regulation was entitled to "controlling weight":

"Since this involves an interpretation of an administrative regulation a court must necessarily look to the administrative construction of the regulation if the meaning of the words used is in doubt. The intention of Congress or the principles of the Constitution in some situations may be relevant in the first instance in choosing between various constructions. But the ultimate criterion is the administrative interpretation, which becomes of controlling weight unless it is plainly erroneous or inconsistent with the regulation." Id.,at 413-414, 65 S.Ct. 1215.

*1214The Court then concluded that the rule "clearly" favored the Administrator's interpretation, rendering this discussion dictum. Id.,at 415-417, 65 S.Ct. 1215.

From this unsupported rule developed a doctrine of deference that has taken on a life of its own.1It has been broadly applied to regulations issued by agencies across a broad spectrum of subjects. See, e.g., Robertson v. Methow Valley Citizens Council,490 U.S. 332, 358-359, 109 S.Ct. 1835, 104 L.Ed.2d 351 (1989)(forests); Ehlert v. United States,402 U.S. 99, 104-105, 91 S.Ct. 1319, 28 L.Ed.2d 625 (1971)(Selective Service); INS v. Stanisic,395 U.S. 62, 72, 89 S.Ct. 1519, 23 L.Ed.2d 101 (1969)(deportation); Udall v. Tallman,380 U.S. 1, 16-17, 85 S.Ct. 792, 13 L.Ed.2d 616 (1965)(oil and gas leases). It has even been applied to an agency's interpretation of another agency's regulations. See Pauley v. BethEnergy Mines, Inc.,501 U.S. 680, 696-699, 111 S.Ct. 2524, 115 L.Ed.2d 604 (1991). And, it has been applied to an agency interpretation that was inconsistent with a previous interpretation of the same regulation. See Long Island Care at Home, Ltd. v. Coke,551 U.S. 158, 170-171, 127 S.Ct. 2339, 168 L.Ed.2d 54 (2007). It has been applied to formal and informal interpretations alike, including those taken during litigation. See Auer v. Robbins,519 U.S. 452, 462, 117 S.Ct. 905, 137 L.Ed.2d 79 (1997). Its reasoning has also been extended outside the context of traditional agency regulations into the realm of criminal sentencing. See Stinson v. United States,508 U.S. 36, 44-45, 113 S.Ct. 1913, 123 L.Ed.2d 598 (1993)(concluding that the Sentencing Commission's commentary on its Guidelines is analogous to an agency interpretation of its own regulations, entitled to Seminole Rockdeference).

The Court has even applied the doctrine to an agency interpretation of a regulation cast in such vague aspirational terms as to have no substantive content. See Thomas Jefferson Univ. v. Shalala,512 U.S. 504, 512-513, 114 S.Ct. 2381, 129 L.Ed.2d 405 (1994); see also id.,at 518, 114 S.Ct. 2381(THOMAS, J., dissenting).

On this steady march toward deference, the Court only once expressly declined to apply Seminole Rockdeference on the ground that the agency's interpretation was plainly erroneous.2In that case, we *1215were faced with the predictable consequence of this line of precedents: An agency sought deference to an opinion letter that interpreted a permissive regulation as mandatory. See Christensen v. Harris County,529 U.S. 576, 588, 120 S.Ct. 1655, 146 L.Ed.2d 621 (2000). We rejected that request for deference as an effort, "under the guise of interpreting a regulation, to create de factoa new regulation." Ibid.This narrow limit on the broad deference given the agency interpretations, though sound, could not save a doctrine that was constitutionally infirm from the start. Seminole Rockwas constitutionally suspect from the start, and this Court's repeated extensions of it have only magnified the effects and the attendant concerns.

II

We have not always been vigilant about protecting the structure of our Constitution. Although this Court has repeatedly invoked the "separation of powers" and "the constitutional system of checks and balances" as core principles of our constitutional design, essential to the protection of individual liberty, see, e.g.,Stern v. Marshall,564 U.S. ----, ---- - ----, 131 S.Ct. 2594, 2608-2609, 180 L.Ed.2d 475 (2011)(internal quotation marks omitted), it has also endorsed a "more pragmatic, flexible approach" to that design when it has seemed more convenient to permit the powers to be mixed, see, e.g.,Nixon v. Administrator of General Services,433 U.S. 425, 442, 97 S.Ct. 2777, 53 L.Ed.2d 867 (1977). As the history shows, that approach runs the risk of compromising our constitutional structure.

A

The Constitution's particular blend of separated powers and checks and balances was informed by centuries of political thought and experiences. See M. Vile, Constitutionalism and the Separation of Powers 38, 168-169 (2d ed. 1998) (Vile). Though the theories of the separation of powers and checks and balances have roots in the ancient world, events of the 17th and 18th centuries played a crucial role in their development and informed the men who crafted and ratified the Constitution.

Over a century before our War of Independence, the English Civil War catapulted the theory of the separation of powers to prominence. As political theorists of the day witnessed the conflict between the King and Parliament, and the dangers of tyrannical government posed by each, they began to call for a clear division of authority between the two. Id.,at 44-45, 48-49. A 1648 work titled The Royalist's Defence offered perhaps the first extended account of the theory of the separation of powers: "[W]hilst the Supreamacy,the Powerto Judge the Law, and Authorityto make new Lawes, are kept in severall hands,the known Law is preserved,but united,it is vanished,instantly thereupon, and Arbytraryand Tyrannicallpower is introduced." The Royalist's Defence 80 (1648) (italics in original).

John Locke and Baron de Montesquieu endorsed and expanded on this concept. See Vile 63-64. They agreed with the general theory set forth in The Royalist's Defence, emphasizing the need for a separation of powers to protect individual liberty. J. Locke, Second Treatise of Civil Government §§ 143-144, p. 72 (J. Gough ed. 1947); Montesquieu, Spirit of the Laws bk. XI, ch. 6, pp. 151-152 (O. Piest ed., T. Nugent transl. 1949). But they also advocated a system of checks and balances to *1216reinforce that separation. Vile 72-73, 102. For instance, they agreed that the executive should have the power to assemble and dismiss the legislature and to consent to laws passed by it. See Locke, supra,§§ 151, 156, at 75, 77-78; Montesquieu, Spirit of the Laws, at 157, 159. Montesquieu warned that "power should be a check to power" lest the legislature "arrogate to itself what authority it pleased ... [and] soon destroy all the other powers." Id.,at 150, 157.

The experience of the States during the period between the War of Independence and the ratification of the Constitution confirmed the wisdom of combining these theories. Although many State Constitutions of the time included language unequivocally endorsing the separation of powers, they did not secure that separation with checks and balances, Vile 147, and actively placed traditional executive and judicial functions in the legislature, G. Wood, The Creation of the American Republic 1776-1787, pp. 155-156 (1969). Under these arrangements, state legislatures arrogated power to themselves and began to confiscate property, approve the printing of paper money, and suspend the ordinary means for the recovery of debts. Id.,at 403-409.3

When the Framers met for the Constitutional Convention, they understood the need for greater checks and balances to reinforce the separation of powers. As Madison remarked, "experience has taught us a distrust" of the separation of powers alone as "a sufficient security to each [branch] [against] encroachments of the others." 2 Records of the Federal Convention of 1787, p. 77 (M. Farrand rev. 1966). "[I]t is necessary to introduce such a balance of powers and interests, as will guarantee the provisions on paper." Ibid.The Framers thus separated the three main powers of Government-legislative, executive, and judicial-into the three branches created by Articles I, II, and III. But they also created checks and balances to reinforce that separation. For example, they gave Congress specific enumerated powers to enact legislation, Art. I, § 8, but gave the President the power to veto that legislation, subject to congressional override by a supermajority vote, Art. I, § 7, cls. 2, 3. They gave the President the power to appoint principal officers of the United States, but gave the Senate the power to give advice and consent to those appointments. Art. II, § 2, cl. 2. They gave the House and Senate the power to agree to adjourn for more than three days, Art. I, § 5, cl. 4, but gave the President the power, "in Case of Disagreement between them," to adjourn the Congress "to such Time as he shall think proper." Art. II, § 3, cl. 3. During the ratification debates, Madison argued that this structure represented "the great security" for liberty in the Constitution. The Federalist No. 51, p. 321 (C. Rossiter ed. 1961) (J. Madison).

To the Framers, the separation of powers and checks and balances were more than just theories. They were practical and real protections for individual liberty in the new Constitution. See Mistretta v. United States,488 U.S. 361, 426, 109 S.Ct. 647, 102 L.Ed.2d 714 (1989)(SCALIA, J., dissenting) ("[The Constitution] is a prescribed structure, a framework, for the conduct of government. In designing that structure, the Framers themselves considered how much commingling [of governmental *1217powers] was, in the generality of things, acceptable, and set forth their conclusions in the document"). The Judiciary-no less than the other two branches-has an obligation to guard against deviations from those principles. The Seminole Rockline of precedent is one such deviation.

B

Seminole Rockraises two related constitutional concerns. It represents a transfer of judicial power to the Executive Branch, and it amounts to an erosion of the judicial obligation to serve as a "check" on the political branches.

1

When a party properly brings a case or controversy to an Article III court, that court is called upon to exercise the "judicial Power of the United States." Art. III, § 1. For the reasons I explain in this section, the judicial power, as originally understood, requires a court to exercise its independent judgment in interpreting and expounding upon the laws.

Those who ratified the Constitution knew that legal texts would often contain ambiguities. See generally Molot, The Judicial Perspective in the Administrative State: Reconciling Modern Doctrines of Deference with the Judiciary's Structural Role, 53 Stan. L.Rev. 1, 20-21, and n. 66 (2000); Nelson, Originalism and Interpretive Conventions, 70 U. Chi. L.Rev. 519, 525-526 (2003). As James Madison explained, "All new laws, though penned with the greatest technical skill and passed on the fullest and most mature deliberation, are considered as more or less obscure and equivocal...." The Federalist No. 37, at 229.

The judicial power was understood to include the power to resolve these ambiguities over time. See ibid.Alexander Hamilton lauded this power, arguing that "[t]he interpretation of the laws is the proper and peculiar province of the courts." Id., No. 78, at 467. It is undoubtedly true that the other branches of Government have the authority and obligation to interpret the law, but only the judicial interpretation would be considered authoritative in a judicial proceeding. Vile 360.

Although the Federalists and Anti-Federalists engaged in a public debate about this interpretive power, that debate centered on the dangers inherent in the power, not on its allocation under the Constitution. See, e.g.,Letters from The Federal Farmer XV (Jan. 18, 1788), in 2 The Complete Anti-Federalist 315-316 (H. Storing ed. 1981) (arguing that the interpretive power made the Judiciary the most dangerous branch). Writing as "Brutus," one leading anti-Federalist argued that judges "w[ould] not confine themselves to any fixed or established rules, but w[ould] determine, according to what appears to them, the reason and spirit of the constitution." Essays of Brutus (Jan. 31, 1788), in 2 id.,at 420. The Federalists rejected these arguments, assuring the public that judges would be guided "by strict rules and precedents which serve to define and point out their duty in every particular case that comes before them." The Federalist No. 78, at 471 (A. Hamilton). Those rules included principles of interpretation that had been set out by jurists for centuries. See, e.g.,2 S. von Pufendorf, De Officio Hominis Et Civis Juxta Legem Naturalem Libri Duo 83-86 (1682) (F. Moore transl. 1927); see also 1 W. Blackstone, Commentaries on the Laws of England 59-61 (1765).

One of the key elements of the Federalists' arguments in support of the allocation of power to make binding interpretations of the law was that Article III judges would exercise independent judgment. Although *1218"judicial independence" is often discussed in terms of independence from external threats, the Framers understood the concept to also require independence from the "internal threat" of "human will." P. Hamburger, Law and Judicial Duty 507, 508 (2008); see also The Federalist No. 78, at 465 (A. Hamilton) ("The judiciary ... may truly be said to have neither FORCE nor WILL but merely judgment ..."). Independent judgment required judges to decide cases in accordance with the law of the land, not in accordance with pressures placed upon them through either internal or external sources. Internal sources might include personal biases, while external sources might include pressure from the political branches, the public, or other interested parties. See Hamburger, supra,at 508-521.

The Framers made several key decisions at the Convention with these pressures in mind. For example, they rejected proposals to include a federal council of revision after several participants at the Convention expressed concern that judicial involvement in such a council would foster internal biases. Rufus King of Maryland, for example, asserted that "the Judges ought to be able to expound the law as it should come before them, free from the bias of having participated in its formation." 1 Records of the Federal Convention of 1787, at 98. Alexander Hamilton repeated these concerns in The Federalist, arguing that "the judges, who are to be interpreters of the law, might receive an improper bias from having given a previous opinion in their revisionary capacities" or "be induced to embark too far in the political views of [the Executive]" from too much association with him. The Federalist No. 73, at 446; see also Hamburger, supra,at 508-512.

The Framers also created structural protections in the Constitution to free judges from external influences. They provided, for example, that judges should "hold their Offices during good Behaviour" and receive "a Compensation, which shall not be diminished during their Continuance in Office." Art. III, § 1. Hamilton noted that such unequivocal language had been shown necessary by the experience of the States, where similar state constitutional protections for judges had not been "sufficiently definite to preclude legislative evasions" of the separation of the judicial power. The Federalist No. 79, at 472. Because "power over a man's subsistence amounts to a power over his will," he argued that Article III's structural protections would help ensure that judges fulfilled their constitutional role. Ibid.(emphasis deleted).

The Framers made the opposite choice for legislators and the Executive. Instead of insulating them from external pressures, the Constitution tied them to those pressures. It provided for election of Members of the House of Representatives every two years, Art. I, § 2, cl. 1; and selection of Members of the Senate every six years, Art. I, § 3, cl. 1. It also provided for the President to be subject to election every four years. Art. II, § 1, cl. 1. "The President is [thus] directly dependent on the people, and since there is only one President, he is responsible. The people know whom to blame...." See Morrison v. Olson,487 U.S. 654, 729, 108 S.Ct. 2597, 101 L.Ed.2d 569 (1988)(SCALIA, J., dissenting). To preserve that accountability, we have held that executive officers mustbe subject to removal by the President to ensure accountability within the Executive Branch. See Free Enterprise Fund v. Public Company Accounting Oversight Bd.,561 U.S. 477, 495, 130 S.Ct. 3138, 177 L.Ed.2d 706 (2010); see also Morrison, supra,at 709, 108 S.Ct. 2597(opinion of SCALIA, J.) ("It is not for us to determine, and we have never presumed to *1219determine, how much of the purely executive powers of government must be within the full control of the President. The Constitution prescribes that they all are").

Given these structural distinctions between the branches, it is no surprise that judicial interpretations are definitive in cases and controversies before the courts. Courts act as "an intermediate body between the people and the legislature, in order, among other things, to keep the latter within the limits assigned to their authority." Federalist No. 78, at 467 (A. Hamilton). The Legislature and Executive may be swayed by popular sentiment to abandon the strictures of the Constitution or other rules of law. But the Judiciary, insulated from both internal and external sources of bias, is duty bound to exercise independent judgment in applying the law.

Interpreting agency regulations calls for that exercise of independent judgment. Substantive regulations have the force and effect of law. See, e.g., United States v. Mead Corp.,533 U.S. 218, 231-232, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001).4Agencies and private parties alike can use these regulations in proceedings against regulated parties. See, e.g.,Christopher v. SmithKline Beecham Corp.,567 U.S. ----, ---- - ----, 132 S.Ct. 2156, 2164-2165, 183 L.Ed.2d 153 (2012)(private party relying on Department of Labor regulations); F.C.C. v. Fox Television Stations, Inc.,567 U.S. ----, ----, 132 S.Ct. 2307, 2314, 183 L.Ed.2d 234 (2012)(agency issuing notices of liability under regulations). Just as it is critical for judges to exercise independent judgment in applying statutes, it is critical for judges to exercise independent judgment in determining that a regulation properly covers the conduct of regulated parties. Defining the legal meaning of the regulation is one aspect of that determination.

Seminole Rockdeference, however, precludes judges from independently determining that meaning. Rather than judges' applying recognized tools of interpretation to determine the best meaning of a regulation, this doctrine demands that courts accord "controlling weight" to the agency interpretation of a regulation, subject only to the narrow exception for interpretations that are plainly erroneous or inconsistent with the regulation. That deference amounts to a transfer of the judge's exercise of interpretive judgment to the agency. See 1 S. Johnson, Dictionary of the *1220English Language 499 (4th ed. 1773) (defining "[d]efer" as "to leave to another's judgment"). But the agency, as part of the Executive Branch, lacks the structural protections for independent judgment adopted by the Framers, including the life tenure and salary protections of Article III. Because the agency is thus not properly constituted to exercise the judicial power under the Constitution, the transfer of interpretive judgment raises serious separation-of-powers concerns.

2

Seminole Rockis constitutionally questionable for an additional reason: It undermines the judicial "check" on the political branches. Unlike the Legislative and Executive Branches, each of which possesses several political checks on the other, the Judiciary has one primary check on the excesses of political branches. That check is the enforcement of the rule of law through the exercise of judicial power.

Judges have long recognized their responsibility to apply the law, even if they did not conceive of it as a "check" on political power. During the 17th century, for example, King James I sought to pressure Chief Justice Coke to affirm the lawfulness of his efforts to raise revenue without the participation of Parliament. Hamburger, Law and Judicial Duty, at 200-201. Coke sought time to confer with his fellow jurists to "make an advised answer according to law and reason." Case of Proclamations,12 Co. Rep. 74, 75, 77 Eng. Rep. 1352, 1353 (K.B. 1611). But the King's representative, Lord Chancellor Ellesmere, responded that "he would advise the Judges to maintain the power and prerogative of the King" and suggested that, "in cases in which there is no authority and precedent," the judiciary should "leave it to the King to order in it according to his wisdom." Ibid. Coke famously responded, "[T]he King cannot change any part of the common law, nor create any offence by his proclamation, which was not an offence before, without Parliament." Ibid.When James I later attempted to do just that, Coke declared the proclamations " 'utterly against Law and reason, and for that void.' " Hamburger, supra,at 202.

The Framers expected Article III judges to engage in similar efforts, by applying the law as a "check" on the excesses of both the Legislative and Executive Branches. See, e.g., 3 J. Elliot, Debates in the Several Conventions on the Adoption of the Federal Constitution 553 (1863) (J. Marshall) ("If [the Government of the United States] make a law not warranted by any of the powers enumerated, it would be considered by the judges as an infringement of the Constitution which they are to guard.... They would declare it void"); see also Vile 174. The Framers "contemplated [the Constitution], as a rule for the government of courts,as well as of the legislature." Marbury v. Madison,1 Cranch 137, 179-180, 2 L.Ed. 60 (1803). Thus, if a case involved a conflict between a law and the Constitution, judges would have a duty "to adhere to the latter and disregard the former." The Federalist No. 78, at 468 (A. Hamilton); see also Marbury,1 Cranch, at 178. Similarly, if a case involved an executive effort to extend a law beyond its meaning, judges would have a duty to adhere to the law that had been properly promulgated under the Constitution. Cf. id.,at 157-158(considering the scope of the President's constitutional power of appointment). As this Court said long ago, "[T]he particular phraseology of the constitution of the United States confirms and strengthens the principle, supposed to be essential to all written constitutions, that a law repugnant to the constitution is void; and that courts, *1221as well as other departments, are bound by that instrument." Id.,at 180.

Article III judges cannot opt out of exercising their check. As we have long recognized, "[t]he Judiciary has a responsibility to decide cases properly before it, even those it 'would gladly avoid.' " Zivotofsky v. Clinton,566 U.S. ----, ----, 132 S.Ct. 1421, 1427, 182 L.Ed.2d 423 (2012)(quoting Cohens v. Virginia,6 Wheat. 264, 404, 5 L.Ed. 257 (1821)). This responsibility applies not only to constitutional challenges to particular statutes, see, e.g., Shelby County v. Holder,570 U.S. ----, ----, 133 S.Ct. 2612, 2618-2619, 186 L.Ed.2d 651 (2013), including those based on the separation of powers, Free Enterprise Fund,561 U.S., at 501-502, 130 S.Ct. 3138but also to more routine questions about the best interpretation of statutes, see, e.g., Whitfield v. United States,574 U.S. ----, ---- - ----, 135 S.Ct. 785, 787-89, 190 L.Ed.2d 656 (2015), or the compatibility of agency actions with enabling statutes, Utility Air Regulatory Group v. EPA,573 U.S. ----, ----, 134 S.Ct. 2427, 2438-2439, 189 L.Ed.2d 372 (2014). In each case, the Judiciary is called upon to exercise its independent judgment and apply the law.

But we have not consistently exercised the judicial check with respect to administrative agencies. Even though regulated parties have repeatedly challenged agency interpretations as inconsistent with existing regulations, we have just as repeatedly declined to exercise independent judgment as to those claims. Instead, we have deferred to the executive agency that both promulgated the regulations and enforced them. Although an agency's interpretation of a regulation might be the best interpretation, it also might not. When courts refuse even to decide what the best interpretation is under the law, they abandon the judicial check. That abandonment permits precisely the accumulation of governmental powers that the Framers warned against. See The Federalist No. 47, at 302 (J. Madison).

C

This accumulation of governmental powers allows agencies to change the meaning of regulations at their discretion and without any advance notice to the parties. It is precisely this problem that the United States Court of Appeals for the D.C. Circuit attempted to address by requiring agencies to undertake notice and comment procedures before substantially revising definitive interpretations of regulations. Paralyzed Veterans, supra. Though legally erroneous, the Court of Appeals' reasoning was practically sound. When courts give "controlling weight" to an administrative interpretation of a regulation-instead of to the bestinterpretation of it-they effectively give the interpretation-and not the regulation-the force and effect of law. To regulated parties, the new interpretation might as well be a new regulation.

These cases provide a classic example of the problem. The Fair Labor Standards Act of 1938 establishes federal minimum wage and overtime requirements, but exempts from these requirements "any employee engaged in a bona fide executive, administrative, or professional capacity ..., or in the capacity of outside salesman (as such terms are defined and delimited from time to time by regulations of the Secretary)." 29 U.S.C. § 213(a)(1). The Department of Labor has accordingly promulgated regulations providing that "an employee whose primary duty is selling financial products does not qualify for the administrative exemption." 29 C.F.R. § 541.203(b) (2015).

Unsure whether certain mortgage-loan officers qualified as employees whose primary duty is selling financial products, the *1222Mortgage Bankers Association asked the Department of Labor for advice. In 2006, the Department concluded that the officers are not employees whose primary duty is selling financial products. But in 2010, the Department reversed course, concluding exactly the opposite. If courts accord "controlling weight" to both the 2006 and 2010 interpretations, the regulated entities are subject to two opposite legal rules imposed under the same regulation.

This practice turns on its head the principle that the United States is "a government of laws, and not of men." Marbury, supra,at 163. Regulations provide notice to regulated parties in only a limited sense because their meaning will ultimately be determined by agencies rather than by the "strict rules and precedents" to which Alexander Hamilton once referred.5

III

Although this Court offered no theoretical justification for Seminole Rockdeference when announcing it, several justifications have been proposed since. None is persuasive.

A

Probably the most oft-recited justification for Seminole Rockdeference is that of agency expertise in administering technical statutory schemes. Under this justification, deference to administrative agencies is necessary when a "regulation concerns 'a complex and highly technical regulatory program' in which the identification and classification of relevant 'criteria necessarily require significant expertise and entail the exercise of judgment grounded in policy concerns.' " Thomas Jefferson Univ., 512 U.S., at 512, 114 S.Ct. 2381.

This defense of Seminole Rockdeference misidentifies the relevant inquiry. The proper question faced by courts in interpreting a regulation is not what the best policy choice might be, but what the regulation means. Because this Court has concluded that "substantive agency regulations have the 'force and effect of law,' "Chrysler Corp. v. Brown,441 U.S. 281, 295, 99 S.Ct. 1705, 60 L.Ed.2d 208 (1979), such regulations should be interpreted like any other law. Thus, we should "assum[e] that the ordinary meaning of the regulation's language expresses" its purpose and enforce it "according to its terms." See Hardt v. Reliance Standard Life Ins. Co.,560 U.S. 242, 251, 130 S.Ct. 2149, 176 L.Ed.2d 998 (2010)(internal quotation marks omitted). Judges are at least as well suited as administrative agencies to engage in this task. Cf. Marbury,1 Cranch, at 177("It is emphatically the province and duty of the judicial department *1223to say what the law is"). Indeed, judges are frequently called upon to interpret the meaning of legal texts and are able to do so even when those texts involve technical language. See, e.g., Barber v. Gonzales,347 U.S. 637, 640-643, 74 S.Ct. 822, 98 L.Ed. 1009 (1954)(interpreting deportation statute according to technical meaning).

Fundamentally, the argument about agency expertise is less about the expertise of agencies in interpreting language than it is about the wisdom of according agencies broad flexibility to administer statutory schemes.6"But policy arguments supporting even useful 'political inventions' are subject to the demands of the Constitution which defines powers and ... sets out ... how those powers are to be exercised." INS v. Chadha,462 U.S. 919, 945, 103 S.Ct. 2764, 77 L.Ed.2d 317 (1983). Even in the face of a perceived necessity, the Constitution protects us from ourselves. New York v. United States,505 U.S. 144, 187-188, 112 S.Ct. 2408, 120 L.Ed.2d 120 (1992).

B

Another oft-recited justification for Seminole Rockdeference is that agencies are better situated to define the original intent behind their regulations. See Martin v. Occupational Safety and Health Review Comm'n,499 U.S. 144, 152-153, 111 S.Ct. 1171, 113 L.Ed.2d 117 (1991). Under this justification, "[b]ecause the Secretary [of Labor] promulgates th[e] standards, the Secretary is in a better position ... to reconstruct the purpose of the regulations in question." Id.,at 152, 111 S.Ct. 1171.

This justification rings hollow. This Court has afforded Seminole Rockdeference to agency interpretations even when the agency was not the original drafter. See Pauley,501 U.S., at 696-698, 111 S.Ct. 2524(applying Seminole Rockdeference to one agency's interpretation of another agency's regulations because Congress had delegated authority to both to administer the program). It has likewise granted Seminole Rockdeference to agency interpretations that are inconsistent with interpretations adopted closer in time to the promulgation of the regulations. See, e.g., Long Island Care at Home,551 U.S., at 170-171, 127 S.Ct. 2339.

Even if the scope of Seminole Rockdeference more closely matched the original-drafter justification, it would still fail. It is the text of the regulations that have the force and effect of law, not the agency's *1224intent. "Citizens arrange their affairs not on the basis of their legislators' unexpressed intent, but on the basis of the law as it is written and promulgated." Zuni Public School Dist. No. 89 v. Department of Education,550 U.S. 81, 119, 127 S.Ct. 1534, 167 L.Ed.2d 449 (2007)(SCALIA, J., dissenting). Cf. Wyeth v. Levine,555 U.S. 555, 586-587, 129 S.Ct. 1187, 173 L.Ed.2d 51 (2009)(THOMAS, J., concurring in judgment) (noting that only "federal standards ... that are set forth in, or necessarily follow from, the statutory text that was produced through the constitutionally required bicameral and presentment procedures"-not Congress' "purposes and objectives"-can become the "law of the land"). "To be governed by legislated text rather than legislators' intentions is what it means to be 'a Government of laws, not of men.' " Zuni Public School Dist. No. 89, supra,at 119, 127 S.Ct. 1534(SCALIA, J., dissenting). Only the text of a regulation goes through the procedures established by Congress for agency rulemaking. And it is that text on which the public is entitled to rely. For the same reasons that we should not accord controlling weight to postenactment expressions of intent by individual Members of Congress, see Sullivan v. Finkelstein,496 U.S. 617, 631-632, 110 S.Ct. 2658, 110 L.Ed.2d 563 (1990)(SCALIA, J., concurring in part), we should not accord controlling weight to expressions of intent by administrators of agencies.

C

A third asserted justification for Seminole Rockdeference is that Congress has delegated to agencies the authority to interpret their own regulations. See, e.g., Martin,499 U.S., at 151, 111 S.Ct. 1171. The theory is that, "[b]ecause applying an agency's regulation to complex or changing circumstances calls upon the agency's unique expertise and policymaking prerogatives, ... the power authoritatively to interpret its own regulations is a component of the agency's delegated lawmaking powers." Ibid.

This justification fails because Congress lacks authority to delegate the power. As we have explained in an analogous context, "[t]he structure of the Constitution does not permit Congress to execute the laws; it follows that Congress cannot grant to an officer under its control what it does not possess." Bowsher v. Synar,478 U.S. 714, 726, 106 S.Ct. 3181, 92 L.Ed.2d 583 (1986). Similarly, the Constitution does not empower Congress to issue a judicially binding interpretation of the Constitution or its laws. Lacking the power itself, it cannot delegate that power to an agency.

To hold otherwise would be to vitiate the separation of powers and ignore the "sense of a sharp necessity to separate the legislative from the judicial power ... [that] triumphed among the Framers of the new Federal Constitution." Plaut v. Spendthrift Farm, Inc.,514 U.S. 211, 221, 115 S.Ct. 1447, 131 L.Ed.2d 328 (1995). As this Court has explained, the "essential balance" of the Constitution is that the Legislature is "possessed of power to 'prescrib[e] the rules by which the duties and rights of every citizen are to be regulated,' but the power of '[t]he interpretation of the laws' [is] 'the proper and peculiar province of the courts.' " Id.,at 222, 115 S.Ct. 1447(citation omitted; third brackets added). Although the Constitution imposes a duty on all three branches to interpret the laws within their own spheres, the power to create legally binding interpretations rests with the Judiciary. See Marbury,1 Cranch, at 177, 179-180.

D

A final proposed justification for Seminole Rockdeference is that too much oversight of administrative matters would imperil the "independence and esteem" of *1225judges. See, e.g., Charles Evans Hughes, Speech before the Elmira Chamber of Commerce, May 3, 1907, in Addresses of Charles Evans Hughes, 1906-1916, p. 185 (2d ed. 1916). The argument goes that questions of administration are those which "lie close to the public impatience," id.,at 186, and thus the courts' resolution of such questions could "expose them to the fire of public criticism," id.,at 187.

But this argument, which boils down to a policy judgment of questionable validity, cannot vitiate the constitutional allocation of powers. The Judicial Branch is separate from the political branches for a reason: It has the obligation to apply the law to cases and controversies that come before it, and concerns about the popular esteem of individual judges-or even the Judiciary as a whole-have no place in that analysis. Our system of Government could not long survive absent adherence to the written Constitution that formed it.

* * *

Although on the surface these cases require only a straightforward application of the APA, closer scrutiny reveals serious constitutional questions lurking beneath. I have "acknowledge[d] the importance of stare decisisto the stability of our Nation's legal system." "But stare decisis is only an 'adjunct' of our duty as judges to decide by our best lights what the Constitution means." McDonald v. Chicago,561 U.S. 742, 812, 130 S.Ct. 3020, 177 L.Ed.2d 894 (2010)(THOMAS, J., concurring in part and concurring in judgment) (citation omitted). By my best lights, the entire line of precedent beginning with Seminole Rockraises serious constitutional questions and should be reconsidered in an appropriate case.

2.2.3.2.3.2.2 Executive Order 13,891 of October 9, 2019, 84 Fed. Reg. 55,235 (Oct. 15, 2019) (RESCINDED) 2.2.3.2.3.2.2 Executive Order 13,891 of October 9, 2019, 84 Fed. Reg. 55,235 (Oct. 15, 2019) (RESCINDED)

Promoting the Rule of Law Through Improved Agency Guidance Documents

By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to ensure that Americans are subject to only those binding rules imposed through duly enacted statutes or through regulations lawfully promulgated under them, and that Americans have fair notice of their obligations, it is hereby ordered as follows:

Section 1. Policy. Departments and agencies (agencies) in the executive branch adopt regulations that impose legally binding requirements on the public even though, in our constitutional democracy, only Congress is vested with the legislative power. The Administrative Procedure Act (APA) generally requires agencies, in exercising that solemn responsibility, to engage in notice-and-comment rulemaking to provide public notice of proposed regulations under section 553 of title 5, United States Code, allow interested parties an opportunity to comment, consider and respond to significant comments, and publish final regulations in the Federal Register.

Agencies may clarify existing obligations through non-binding guidance documents, which the APA exempts from notice-and-comment requirements. Yet agencies have sometimes used this authority inappropriately in attempts to regulate the public without following the rulemaking procedures of the APA. Even when accompanied by a disclaimer that it is non-binding, a guidance document issued by an agency may carry the implicit threat of enforcement action if the regulated public does not comply. Moreover, the public frequently has insufficient notice of guidance documents, which are not always published in the Federal Register or distributed to all regulated parties.

Americans deserve an open and fair regulatory process that imposes new obligations on the public only when consistent with applicable law and after an agency follows appropriate procedures. Therefore, it is the policy of the executive branch, to the extent consistent with applicable law, to require that agencies treat guidance documents as non-binding both in law and in practice, except as incorporated into a contract, take public input into account when appropriate in formulating guidance documents, and make guidance documents readily available to the public. Agencies may impose legally binding requirements on the public only through regulations and on parties on a case-by-case basis through adjudications, and only after appropriate process, except as authorized by law or as incorporated into a contract.

Sec. 2. Definitions. For the purposes of this order:

(a) “Agency” has the meaning given in section 3(b) of Executive Order 12866 (Regulatory Planning and Review), as amended.

(b) “Guidance document” means an agency statement of general applicability, intended to have future effect on the behavior of regulated parties, that sets forth a policy on a statutory, regulatory, or technical issue, or an interpretation of a statute or regulation, but does not include the following:

(i) rules promulgated pursuant to notice and comment under section 553 of title 5, United States Code, or similar statutory provisions;

(ii) rules exempt from rulemaking requirements under section 553(a) of title 5, United States Code;

(iii) rules of agency organization, procedure, or practice;

(iv) decisions of agency adjudications under section 554 of title 5, United States Code, or similar statutory provisions;

(v) internal guidance directed to the issuing agency or other agencies that is not intended to have substantial future effect on the behavior of regulated parties; or

(vi) internal executive branch legal advice or legal opinions addressed to executive branch officials.

(c) “Significant guidance document” means a guidance document that may reasonably be anticipated to:

(i) lead to an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities;

(ii) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency;

(iii) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or

(iv) raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles of Executive Order 12866.

(d) “Pre-enforcement ruling” means a formal written communication by an agency in response to an inquiry from a person concerning compliance with legal requirements that interprets the law or applies the law to a specific set of facts supplied by the person. The term includes informal guidance under section 213 of the Small Business Regulatory Enforcement Fairness Act of 1996, Public Law 104-121 (Title II), as amended, letter rulings, advisory opinions, and no-action letters.

Sec. 3. Ensuring Transparent Use of Guidance Documents. (a) Within 120 days of the date on which the Office of Management and Budget (OMB) issues an implementing memorandum under section 6 of this order, each agency or agency component, as appropriate, shall establish or maintain on its website a single, searchable, indexed database that contains or links to all guidance documents in effect from such agency or component. The website shall note that guidance documents lack the force and effect of law, except as authorized by law or as incorporated into a contract.

(b) Within 120 days of the date on which OMB issues an implementing memorandum under section 6 of this order, each agency shall review its guidance documents and, consistent with applicable law, rescind those guidance documents that it determines should no longer be in effect. No agency shall retain in effect any guidance document without including it in the relevant database referred to in subsection (a) of this section, nor shall any agency, in the future, issue a guidance document without including it in the relevant database. No agency may cite, use, or rely on guidance documents that are rescinded, except to establish historical facts. Within 240 days of the date on which OMB issues an implementing memorandum, an agency may reinstate a guidance document rescinded under this subsection without complying with any procedures adopted or imposed pursuant to section 4 of this order, to the extent consistent with applicable law, and shall include the guidance document in the relevant database.

(c) The Director of OMB (Director), or the Director's designee, may waive compliance with subsections (a) and (b) of this section for particular guidance documents or categories of guidance documents, or extend the deadlines set forth in those subsections.

(d) As requested by the Director, within 240 days of the date on which OMB issues an implementing memorandum under section 6 of this order, an agency head shall submit a report to the Director with the reasons for maintaining in effect any guidance documents identified by the Director. The Director shall provide such reports to the President. This subsection shall apply only to guidance documents existing as of the date of this order.

Sec. 4. Promulgation of Procedures for Issuing Guidance Documents. (a) Within 300 days of the date on which OMB issues an implementing memorandum under section 6 of this order, each agency shall, consistent with applicable law, finalize regulations, or amend existing regulations as necessary, to set forth processes and procedures for issuing guidance documents. The process set forth in each regulation shall be consistent with this order and shall include:

(i) a requirement that each guidance document clearly state that it does not bind the public, except as authorized by law or as incorporated into a contract;

(ii) procedures for the public to petition for withdrawal or modification of a particular guidance document, including a designation of the officials to which petitions should be directed; and

(iii) for a significant guidance document, as determined by the Administrator of OMB's Office of Information and Regulatory Affairs (Administrator), unless the agency and the Administrator agree that exigency, safety, health, or other compelling cause warrants an exemption from some or all requirements, provisions requiring:

(A) a period of public notice and comment of at least 30 days before issuance of a final guidance document, and a public response from the agency to major concerns raised in comments, except when the agency for good cause finds (and incorporates such finding and a brief statement of reasons therefor into the guidance document) that notice and public comment thereon are impracticable, unnecessary, or contrary to the public interest;

(B) approval on a non-delegable basis by the agency head or by an agency component head appointed by the President, before issuance;

(C) review by the Office of Information and Regulatory Affairs (OIRA) under Executive Order 12866, before issuance; and

(D) compliance with the applicable requirements for regulations or rules, including significant regulatory actions, set forth in Executive Orders 12866, 13563 (Improving Regulation and Regulatory Review), 13609 (Promoting International Regulatory Cooperation), 13771 (Reducing Regulation and Controlling Regulatory Costs), and 13777 (Enforcing the Regulatory Reform Agenda).

(b) The Administrator shall issue memoranda establishing exceptions from this order for categories of guidance documents, and categorical presumptions regarding whether guidance documents are significant, as appropriate, and may require submission of significant guidance documents to OIRA for review before the finalization of agency regulations under subsection (a) of this section. In light of the Memorandum of Agreement of April 11, 2018, this section and section 5 of this order shall not apply to the review relationship (including significance determinations) between OIRA and any component of the Department of the Treasury, or to compliance by the latter with Executive Orders 12866, 13563, 13609, 13771, and 13777. Section 4(a)(iii) and section 5 of this order shall not apply to pre-enforcement rulings.

Sec. 5. Executive Orders 12866, 13563, and 13609. The requirements and procedures of Executive Orders 12866, 13563, and 13609 shall apply to guidance documents, consistent with section 4 of this order.

Sec. 6. Implementation. The Director shall issue memoranda and, as appropriate, regulations pursuant to sections 3504(d)(1) and 3516 of title 44, United States Code, and other appropriate authority, to provide guidance regarding or otherwise implement this order.

Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

(d) Notwithstanding any other provision in this order, nothing in this order shall apply:

(i) to any action that pertains to foreign or military affairs, or to a national security or homeland security function of the United States (other than guidance documents involving procurement or the import or export of non-defense articles and services);

(ii) to any action related to a criminal investigation or prosecution, including undercover operations, or any civil enforcement action or related investigation by the Department of Justice, including any action related to a civil investigative demand under 18 U.S.C. 1968;

(iii) to any investigation of misconduct by an agency employee or any disciplinary, corrective, or employment action taken against an agency employee;

(iv) to any document or information that is exempt from disclosure under section 552(b) of title 5, United States Code (commonly known as the Freedom of Information Act); or

(v) in any other circumstance or proceeding to which application of this order, or any part of this order, would, in the judgment of the head of the agency, undermine the national security.

2.3 What Duties Do Agencies Owe the Public? 2.3 What Duties Do Agencies Owe the Public?

Most of the time, we care about administrative law because administrative agencies want to do something and administrative law tells us whether and how they can do it. In other words, much of administrative law involves constraints on agencies' affirmative initiatives. The last subsection covered these questions.

But sometimes agencies don't want to do something that the public wants them to do. Does administrative law impose any obligations on agencies in these scenarios? As we will see, the answer is yes, in specific situations at least.

This subsection introduces two situations in which the public can ask for something from agencies and the agencies owe a duty to the public to provide it. These are 1) petitions for rulemaking, and 2) transparency disclosures under the Freedom of Information Act. These are not meant to be exhaustive of all instances in which agencies owe a duty to the public. They are included in this casebook for two reasons: first, because a substantial amount of administrative law practice involves invoking these agency obligations by requesting things of agencies, and second because this category of questions raises difficult and important questions about how agencies allocate their often limited resources. See Eric Biber, The Importance of Resource Allocation in Administrative Law, 60 Admin. L. Rev. 1 (2008).

Note that the two obligations discussed in this subsection omit arguably the most fundamental duty that agencies have, which is to follow the law. We will take up that question when we turn to judicial review of agency action (and inaction) in Section 4. Many of the lessons that we will glean from the examination in this subsection will also be relevant then, especially when we talk about judicial review of claims that an agency has failed to take action when it is required to do so by law.

 

2.3.1 Responses to Petitions for Rulemaking 2.3.1 Responses to Petitions for Rulemaking

2.3.1.1 Rule making 2.3.1.1 Rule making

(a) This section applies, according to the provisions thereof, except to the extent that there is involved—

(1) a military or foreign affairs function of the United States; or

(2) a matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts.


(b) General notice of proposed rule making shall be published in the Federal Register, unless persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law. The notice shall include—

(1) a statement of the time, place, and nature of public rule making 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.


Except when notice or hearing is required by statute, this subsection does not apply—

(A) to interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice; or

(B) when the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.


(c) After notice required by this section, the agency shall give interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity for oral presentation. After consideration of the relevant matter presented, the agency shall incorporate in the rules adopted a concise general statement of their basis and purpose. When rules are required by statute to be made on the record after opportunity for an agency hearing, sections 556 and 557 of this title apply instead of this subsection.

(d) The required publication or service of a substantive rule shall be made not less than 30 days before its effective date, except—

(1) a substantive rule which grants or recognizes an exemption or relieves a restriction;

(2) interpretative rules and statements of policy; or

(3) as otherwise provided by the agency for good cause found and published with the rule.


(e) Each agency shall give an interested person the right to petition for the issuance, amendment, or repeal of a rule.

Notes

Historical and Revision Notes
DerivationU.S. CodeRevised Statutes and

Statutes at Large

5 U.S.C. 1003. June 11, 1946, ch. 324, §4, 60 Stat. 238.

In subsection (a)(1), the words "or naval" are omitted as included in "military".

In subsection (b), the word "when" is substituted for "in any situation in which".

In subsection (c), the words "for oral presentation" are substituted for "to present the same orally in any manner". The words "sections 556 and 557 of this title apply instead of this subsection" are substituted for "the requirements of sections 1006 and 1007 of this title shall apply in place of the provisions of this subsection".

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Codification

Section 553 of former Title 5, Executive Departments and Government Officers and Employees, was transferred to section 2245 of Title 7, Agriculture.

Executive Order No. 12044

Ex. Ord. No. 12044, Mar. 23, 1978, 43 F.R. 12661, as amended by Ex. Ord. No. 12221, June 27, 1980, 45 F.R. 44249, which related to the improvement of Federal regulations, was revoked by Ex. Ord. No. 12291, Feb. 17, 1981, 46 F.R. 13193, formerly set out as a note under section 601 of this title.

2.3.1.2 Massachusetts v. Environmental Protection Agency 2.3.1.2 Massachusetts v. Environmental Protection Agency

MASSACHUSETTS et al. v. ENVIRONMENTAL PROTECTION AGENCY et al.

No. 05-1120.

Argued November 29, 2006

Decided April 2, 2007

*501Stevens, J., delivered the opinion of the Court, in which Kennedy, Souter, Ginsburg, and Breyer, JJ., joined. Roberts, C. J., filed a dissenting opinion, in which Scalia, Thomas, and Alito, JJ., joined, post, p. 535. Scalia, J., filed a dissenting opinion, in which Roberts, C. J., and Thomas and Alito, JJ., joined, post, p. 549.

*502James R. Milkey, Assistant Attorney General of Massachusetts, argued the cause for petitioners. With him on the briefs were Thomas F. Reilly, Attorney General, Lisa Heinzerling, Special Assistant Attorney General, and William L. Pardee and Carol Iancu, Assistant Attorneys General, Zulima V. Farber, Attorney General of New Jersey, Michael Cardozo, Corporation Counsel of the City of New York, and Scott Pasternack, Assistant Corporation Counsel, Ralph S. Tyler, City Solicitor of Baltimore, and William Phelan, Jr., Joseph Mendelson III, John M. Stanton, David Doniger, David Bookbinder, and Howard Fox, and by the Attorneys General and other officials for their respective jurisdictions as follows: Bill Lockyer, Attorney General of California, Marc N. Melnick and Nicholas Stern, Deputy Attorneys General, Richard Blumenthal, Attorney General of Connecticut, Kimberly Massicotte and Matthew Levin, Assistant Attorneys General, Robert J. Spagnoletti, Attorney General of the District of Columbia, Todd S. Kim, Solicitor General, Donna Murasky, Senior Assistant Attorney General, Lisa Madigan, Attorney General of Illinois, Matthew J. Dunn and Gerald T. Karr, Assistant Attorneys General, G. Steven Rowe, Attorney General of Maine, Gerald D. Reid, Assistant Attorney General, Stuart Rabner, Attorney General of New Jersey, Stefanie A. Brand, Kevin P. Auerbacher, and Lisa Morelli, Deputy Attorneys General, Patricia A. Madrid, Attorney General of New Mexico, Stuart M. Bluestone, Deputy Attorney General, Stephen R. Ferris and Judith Ann Moore, Assistant Attorneys General, Eliot Spitzer, Attorney General of New York, Caitlin J. Halligan, Solicitor General, Peter Lehner and J. Jared Snyder, Assistant Attorneys General, Hardy Myers, Attorney General of Oregon, Philip Schradle, Special Counsel to the Attorney General, Richard Whitman, Assistant Attorney General, Patrick C. Lynch, Attorney General of Rhode Island, Trida K. Jedele, Special Assistant Attorney General, William H. Sorrell, Attorney General of Vermont, Kevin O. Leske, As*503sistant Attorney General, Rob McKenna, Attorney General of Washington, Leslie R. Seffern, Assistant Attorney General, Jay D. Geek, Deputy Solicitor General, and Mala,etasi M. Togafau, Attorney General of American Samoa.

Deputy Solicitor General Garre argued the cause for respondents. With him on the brief for the federal respondent were Solicitor General Clement, Assistant Attorney General Wooldridge, Deputy Solicitor General Hungar, Malcolm L. Stewart, Jon M. Lipshultz, and Carol S. Holmes. Michael A. Cox, Attorney General of Michigan, filed a brief for respondent State of Michigan. With him on the brief were Thomas L. Casey, Solicitor General, Alan F. Hoffman and Neil D. Gordon, Assistant Attorneys General, and the Attorneys General and other officials for their respective States as follows: David W. Márquez, Attorney General of Alaska, Phil Kline, Attorney General of Kansas, David W. Davies, Deputy Attorney General, Jon C. Bruning, Attorney General of Nebraska, David D. Cookson, Special Counsel to the Attorney General, Natalee J. Hart, Assistant Attorney General, Wayne Stenehjem, Attorney General of North Dakota, Lyle Witham, Assistant Attorney General, Jim Petro, Attorney General of Ohio, Dale T. Vitale, Senior Deputy Attorney General, Lawrence E. Long, Attorney General of South Dakota, Greg Abbott, Attorney General of Texas, Karen W. Kornell and Jane Atwood, Assistant Attorneys General, and Mark L. Shurtleff, Attorney General of Utah, and Fred G. Nelson, Assistant Attorney General. Theodore B. Olson, Miguel A. Estrada, David Debold, Matthew D. McGill, Kenneth W. Starr, Stuart A. C. Drake, Andrew B. Clubok, and Ashley C. Parrish filed a brief for respondent Alliance of Automobile Manufacturers et al. Russell S. Frye, Leslie A. Hulse, Richard Wasserstrom, Harry M. Ng, Ralph J. Colleli, Jr., Nick Goldstein, Jan S. Amundson, Quentin Riegel, Robin S. Conrad, and John L. Wittenborn filed a brief for respondent C02 Litigation Group. Norman W *504Fichthorn and Allison D. Wood filed a brief for respondent Utility Air Regulatory Group.*

*

Briefs of amici curiae urging reversal were filed for the State of Arizona et al. by Terry Goddard, Attorney General of Arizona, Paula S. Bickett, Chief Counsel, Joseph P. Mikitish, Assistant Attorney General, and Amy J. Wildermuth, and by Thomas J. Miller, Attorney General of Iowa, J. Joseph Curran, Jr., Attorney General of Maryland, Mike Hatch, Attorney General of Minnesota, and Peggy A Lautenschlager, Attorney General of Wisconsin, and Thomas J. Dawson, Assistant Attorney General; for the Alaska Inter-Tribal Council et al. by Frances M. Raskin; for Aspen Skiing Co. by Edward T, Ramey and Blain D. Myhre; for Calpine Corp. by Richard E. Ayres; for the National Council of the Churches of Christ in the U. S. A. et al. by Fran M. Layton; for Ocean and Coastal Conservation Interests by Patrick A Parenteau; for the U. S. Conference of Mayors et al. by Timothy J. Dowling; for Wildlife Conservation Interests by John F. Kostyack; for Madeleine K. Albright by Kathleen M. Sullivan; for Climate Scientist David Battisti et al. by Robert B. McKinstry, Jr., Stephanie Tai, and John C. Dernbach; and for Former EPA Administrator Carol M. Browner et al. by Deborah A Sivas, Michael C. Davis, and Barry S. Neuman.

Briefs of amici curiae urging affirmance were filed for the Washington Legal Foundation by Daniel J. Popeo, Paul D. Kamenar, and Peter S. Glaser; for Climatologist and Scientist Sallie Bahúnas et al. by Sam Kazman, Hans Bader, and Christopher C. Horner; for William J. Baumol et al. by Timothy S. Bishop, Russell R. Eggert, and Erika Z. Jones; for Ernest L. Daman et al. by Martin S. Kaufman; and for William H. Taft IV by Arnold W. Reitze, Jr.

Briefs of amici curiae were filed for the State of Delaware by Carl C. Danberg, Attorney General, Lawrence Lewis, State Solicitor, and Kevin Maloney, Robert Phillips, and Valerie Csizmadia, Deputy Attorneys General; for the Cato Institute et al. by Timothy Lynch; for Entergy Corp. by Elise N. Zoli, U. Gwyn Williams, Kevin P. Martin, and Chuck D. Barlow; for the North Coast Rivers Alliance et al. by Stephan C. Volker; for the Pacific Legal Foundation by M. Reed Hopper; for the Union for Jobs and the Environment by Scott H. Segal, Jason B. Hutt, and Shelby J. Kelley; for Robert H. Bork et al. by David B. Rivkin, Jr., Lee A Casey, and Darin R. Bartram; and for Jerome B. Carr by Albert Auburn.

Justice Stevens

delivered the opinion of the Court.

A well-documented rise in global temperatures has coincided with a significant increase in the concentration of car*505bon dioxide in the atmosphere. Respected scientists believe the two trends are related. For when carbon dioxide is released into the atmosphere, it acts like the ceiling of a greenhouse, trapping solar energy and retarding the escape of reflected heat. It is therefore a species — the most important species — of a “greenhouse gas.”

Calling global warming “the most pressing environmental challenge of our time,”1 a group of States,2 local governments,3 and private organizations4 alleged in a petition for certiorari that the Environmental Protection Agency (EPA) has abdicated its responsibility under the Clean Air Act to regulate the emissions of four greenhouse gases, including carbon dioxide. Specifically, petitioners asked us to answer two questions concerning the meaning of § 202(a)(1) of the Act: whether EPA has the statutory authority to regulate greenhouse gas emissions from new motor vehicles; and if so, whether its stated reasons for refusing to do so are consistent with the statute.

In response, EPA, supported by . 10 intervening States5 and six trade associations,6 correctly argued that we may not address those two questions unless at least one petitioner has standing to invoke our jurisdiction under Article III of the Constitution. Notwithstanding the serious character of *506that jurisdictional argument and the absence of any conflicting decisions construing § 202(a)(1), the unusual importance of the underlying issue persuaded us to grant the writ. 548 U. S. 903 (2006).

I

Section 202(a)(1) of the Clean Air Act, as added by Pub. L. 89-272, § 101(8), 79 Stat. 992, and as amended by, inter alia, 84 Stat. 1690 and 91 Stat. 791, 42 U.S.C. § 7521(a)(1), provides:

“The [EPA] Administrator shall by regulation prescribe (and from time to time revise) in accordance with the provisions of this section, standards applicable to the emission of any air pollutant from any class or classes of new motor vehicles or new motor vehicle engines, which in his judgment cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare .. . .”7

The Act defines “air pollutant” to include “any air pollution agent or combination of such agents, including any physical, chemical, biological, radioactive . . . substance or matter which is emitted into or otherwise enters the ambient air.” § 7602(g). “Welfare” is also defined broadly: among other things, it includes “effects on . . . weather . . . and climate.” § 7602(h).

*507When Congress enacted these provisions, the study of climate change was in its infancy.8 In 1959, shortly after the U. S. Weather Bureau began monitoring atmospheric carbon dioxide levels, an observatory in Mauna Loa, Hawaii, recorded a mean level of 316 parts per million. This was well above the highest carbon dioxide concentration — no more than 300 parts per million — revealed in the 420,000-year-old ice-core record.9 By the time Congress drafted § 202(a)(1) in 1970, carbon dioxide levels had reached 325 parts per million.10

In the late 1970’s, the Federal Government began devoting serious attention to the possibility that carbon dioxide emissions associated with human activity could provoke climate change. In 1978, Congress enacted the National Climate Program Act, 92 Stat. 601, which required the President to establish a program to “assist the Nation and the world to *508understand and respond to natural and man-induced climate processes and their implications,” id., § 3. . President Carter, in turn, asked the National Research Council, the working arm of the National Academy of Sciences, to investigate the subject. The Council’s response was unequivocal: “If carbon dioxide continues to increase, the study group finds no reason to doubt that climate changes will result and no reason to believe that these changes will be negligible. ... A wait- and-see policy may mean waiting until it is too late.”11

Congress next addressed the issue in 1987, when it enacted the Global Climate Protection Act, Title XI of Pub. L. 100-204, 101 Stat. 1407, note following 15 U. S. C. § 2901. Finding that “manmade pollution — the release of carbon dioxide, chlorofluoroearbons, methane, and other trace gases into the atmosphere — may be producing a long-term and substantial increase in the average temperature on Earth,” §1102(1), 101 Stat. 1408, Congress directed EPA to propose to Congress a “coordinated national policy on global climate change,” § 1103(b), and ordered the Secretary of State to work “through the channels of multilateral diplomacy” and coordinate diplomatic efforts to combat global warming, § 1103(c). Congress emphasized that “ongoing pollution and deforestation may be contributing now to an irreversible process” and that “[njecessary actions must be identified and implemented in time to protect the climate.” § 1102(4).

Meanwhile, the scientific understanding of climate change progressed. In 1990, the Intergovernmental Panel on Climate Change (IPCC), a multinational scientific body organized under the auspices of the United Nations, published its first comprehensive report on the topic. Drawing on expert opinions from across the globe, the IPCC concluded that “emissions resulting from human activities are substantially *509increasing the atmospheric concentrations of . . . greenhouse gases [which] will enhance the greenhouse effect, resulting on average in an additional warming of the Earth’s surface.”12

Responding to the IPCC report, the United Nations convened the “Earth Summit” in 1992 in Rio de Janeiro. The first President Bush attended and signed the United Nations Framework Convention on Climate Change (UNFCCC), a nonbinding agreement among 154 nations to reduce atmospheric concentrations of carbon dioxide and other greenhouse gases for the purpose of “preventing] dangerous anthropogenic [i. e., human-induced] interference with the [Earth’s] climate system.”13 S. Treaty Doc. No. 102-38, Art. 2, p. 5,1771 U. N. T. S. 107 (1992). The Senate unanimously ratified the treaty.

Some five years later — after the IPCC issued a second comprehensive report in 1995 concluding that “[t]he balance of evidence suggests there is a discernible human influence on global climate”14 — the UNFCCC signatories met in Kyoto, Japan, and adopted a protocol that assigned mandatory targets for industrialized nations to reduce greenhouse gas emissions. Because those targets did not apply to developing and heavily polluting nations such as China and India, the Senate unanimously passed a resolution expressing its sense that the United States should not enter into the Kyoto Protocol. See S. Res. 98, 105th Cong., 1st Sess. (July 25, 1997) (as passed). President Clinton did not submit the protocol to the Senate for ratification.

*510II

On October 20, 1999, a group of 19 private organizations15 filed a rulemaking petition asking EPA to regulate “greenhouse gas emissions from new motor vehicles under § 202 of the Clean Air Act.” App. 5. Petitioners maintained that 1998 was the “warmest year on record”; that carbon dioxide, methane, nitrous oxide, and hydrofluorocarbons are “heat trapping greenhouse gases”; that greenhouse gas emissions have significantly accelerated climate change; and that the IPCC’s 1995 report warned that “carbon dioxide remains the most important contributor to [manmade] forcing of climate change.” Id., at 13 (internal quotation marks omitted). The petition further alleged that climate change will have serious adverse effects on human health and the environment. Id., at 22-35. As to EPA’s statutory authority, the petition observed that the Agency itself had already confirmed that it had the power to regulate carbon dioxide. See id., at 18, n. 21. In 1998, Jonathan Z. Cannon, then EPA’s general counsel, prepared a legal opinion concluding that “C02 emissions are within the scope of EPA’s authority to regulate,” even as he recognized that EPA had so far declined to exercise that authority. Id., at 54 (memorandum to Carol M. Browner, Administrator (Apr. 10,1998) (hereinafter Cannon memorandum)). Cannon’s successor, Gary S. Guzy, reiterated that opinion before a congressional committee just *511two weeks before the rulemaking petition was filed. See id., at 61.

Fifteen months after the petition's submission, EPA requested public comment on “all the issues raised in [the] petition,” adding a “particular” request for comments on “any scientific, technical, legal, economic or other aspect of these issues that may be relevant to EPA’s consideration of this petition.” 66 Fed. Reg. 7486, 7487 (2001). EPA received more than 50,000 comments over the next five months. See 68 Fed. Reg. 52924 (2003).

Before the close of the comment period, the White House sought “assistance in identifying the areas in the science of climate change where there are the greatest certainties and uncertainties” from the National Research Council, asking for a response “as soon as possible.” App. 213. The result was a 2001 report titled Climate Change Science: An Analysis of Some Key Questions (NRC Report), which, drawing heavily on the 1995 IPCC report, concluded that “[greenhouse gases are accumulating in Earth’s atmosphere as a result of human activities, causing surface air temperatures and subsurface ocean temperatures to rise. Temperatures are, in fact, rising.” NRC Report 1.

On September 8, 2003, EPA entered an order denying the rulemaking petition. 68 Fed. Reg. 52922. The Agency gave two reasons for its decision: (1) that contrary to the opinions of its former general counsels, the Clean Air Act does not authorize EPA to issue mandatory regulations to address global climate change, see id., at 52925-52929; and (2) that even if the Agency had the authority to set greenhouse gas emission standards, it would be unwise to do so at this time, id., at 52929-52931.

In concluding that it lacked statutory authority over greenhouse gases, EPA observed that Congress “was well aware of the global climate change issue when it last comprehensively amended the [Clean Air Act] in 1990,” yet it declined to adopt a proposed amendment establishing binding *512emissions limitations. Id., at 52926. Congress instead chose to authorize further investigation into climate change. Ibid, (citing §§ 103(g) and 602(e) of the Clean Air Act Amendments of 1990, 104 Stat. 2652, 2703, 42 U. S. C. §§ 7403(g)(1) and 7671a(e)). EPA further reasoned that Congress’ “specially tailored solutions to global atmospheric issues,” 68 Fed. Reg. 52926 — in particular, its 1990 enactment of a comprehensive scheme to regulate pollutants that depleted the ozone layer, see Title VI, 104 Stat. 2649, 42 U. S. C. §§7671-7671q — counseled against reading the general authorization of § 202(a)(1) to confer regulatory authority over greenhouse gases.

EPA stated that it was “urged on in this view,” 68 Fed. Reg. 52928, by this Court’s decision in FDA v. Brown & Williamson Tobacco Corp., 529 U. S. 120 (2000). In that case, relying on “tobacco[’s] unique political history,” id., at 159, we invalidated the Food and Drug Administration’s reliance on its general authority to regulate drugs as a basis for asserting jurisdiction over an “industry constituting a significant portion of the American economy,” ibid.

EPA reasoned that climate change had its own “political history”: Congress designed the original Clean Air Act to address local air pollutants rather than a substance that “is fairly consistent in its concentration throughout the world’s atmosphere,” 68 Fed. Reg. 52927; declined in 1990 to enact proposed amendments to force EPA to set carbon dioxide emission standards for motor vehicles, ibid, (citing H. R. 5966, 101st Cong., 2d Sess. (1990)); and addressed global climate change in other legislation, 68 Fed. Reg. 52927. Because of this political history, and because imposing emission limitations on greenhouse gases would have even greater economic and political repercussions than regulating tobacco, EPA was persuaded that it lacked the power to do so. Id., at 52928. In essence, EPA concluded that climate change was so important that unless Congress spoke with exacting specificity, it could not have meant the Agency to address it.

*513Having reached that conclusion, EPA believed it followed that greenhouse gases cannot be “air pollutants” within the meaning of the Act. See ibid. (“It follows from this conclusion, that [greenhouse gases], as such, are not air pollutants under the [Clean Air Act’s] regulatory provisions . . . ”). The Agency bolstered this conclusion by explaining that if carbon dioxide were an air pollutant, the only feasible method of reducing tailpipe emissions would be to improve fuel economy. But because Congress has already created detailed mandatory fuel economy standards subject to Department of Transportation (DOT) administration, the Agency concluded that EPA regulation would either conflict with those standards or be superfluous. Id., at 52929.

Even assuming that it had authority over greenhouse gases, EPA explained in detail why it would refuse to exercise that authority. The Agency began by recognizing that the concentration of greenhouse gases has dramatically increased as a result of human activities, and acknowledged the attendant increase in global surface air temperatures. Id., at 52930. EPA nevertheless gave controlling importance to the NRC Report’s statement that a causal link between the two “‘cannot be unequivocally established.’” Ibid, (quoting NRC Report 17). Given that residual uncertainty, EPA concluded that regulating greenhouse gas emissions would be unwise. 68 Fed. Reg. 52930.

The Agency furthermore characterized any EPA regulation of motor-vehicle emissions as a “piecemeal approach” to climate change, id., at 52931, and stated that such regulation would conflict with the President’s “comprehensive approach” to the problem, ibid. That approach involves additional support for technological innovation, the creation of nonregulatory programs to encourage voluntary private-sector reductions in greenhouse gas emissions, and further research on climate change — not actual regulation. Id., at 52932-52933. According to EPA, unilateral EPA regulation of motor-vehicle greenhouse gas emissions might also *514hamper the President’s ability to persuade key developing countries to reduce greenhouse gas emissions. Id., at 52931.

III

Petitioners, now joined by intervenor States and local governments, sought review of EPA’s order in the United States Court of Appeals for the District of Columbia Circuit.16 Although each of the three judges on the panel wrote a separate opinion, two judges agreed “that the EPA Administrator properly exercised his discretion under § 202(a)(1) in denying the petition for rule making.” 415 F. 3d 50, 58 (2005). The court therefore denied the petition for review.

In his opinion announcing the court’s judgment, Judge Randolph avoided a definitive ruling as to petitioners’ standing, id., at 56, reasoning that it was permissible to proceed to the merits because the standing and the merits inquiries “overlapped],” ibid. Assuming without deciding that the statute authorized the EPA Administrator to regulate greenhouse gas emissions that “in his judgment” may “reasonably be anticipated to endanger public health or welfare,” 42 U. S. C. § 7521(a)(1), Judge Randolph concluded that the exercise of that judgment need not be based solely on scientific evidence, but may also be informed by the sort of policy judgments that motivate congressional action. 415 F. 3d, at 58. Given that framework, it was reasonable for EPA to base its decision on scientific uncertainty as well as on other factors, including the concern that unilateral regulation of U. S. motor-vehicle emissions could weaken efforts to reduce greenhouse gas emissions from other countries. Ibid.

Judge Sentelle wrote separately because he believed petitioners failed to “demonstrate] the element of injury neces*515sary to establish standing under Article III.” Id., at 59 (opinion dissenting in part and concurring in judgment). In his view, they had alleged that global warming is “harmful to humanity at large,” but could not allege “particularized injuries” to themselves. Id., at 60 (citing Lujan v. Defenders of Wildlife, 504 U. S. 555, 562 (1992)). While he dissented on standing, however, he accepted the contrary view as the law of the case and joined Judge Randolph’s judgment on the merits as the closest to that which he preferred. 415 F. 3d, at 60-61.

Judge Tatel dissented. Emphasizing that EPA nowhere challenged the factual basis of petitioners’ affidavits, id., at 66, he concluded that at least Massachusetts had “satisfied each element of Article III standing — injury, causation, and redressability,” id., at 64. In Judge Tatel’s view, the “‘substantial probability,’” id., at 66, that projected rises in sea level would lead to serious loss of coastal property was a “far cry” from the kind of generalized harm insufficient to ground Article III jurisdiction. Id., at 65. He found that petitioners’ affidavits more than adequately supported the conclusion that EPA’s failure to curb greenhouse gas emissions contributed to the sea level changes that threatened Massachusetts’ coastal property. Ibid. As to redressability, he observed that one of petitioners’ experts, a former EPA climatologist, stated that “ ‘[achievable reductions in emissions of C02 and other [greenhouse gases] from U. S. motor vehicles would... delay and moderate many of the adverse impacts of global warming.’” Ibid, (quoting declaration of Michael MacCracken, former Executive Director, U. S. Global Change Research Program ¶50 (hereinafter MacCracken Deck), available in 2 Petitioners’ Standing Appendix in No. 03-1361 etc. (CADC), p. 209 (Stdg. App.)). He further noted that the one-time director of EPA’s motor-vehicle pollution control efforts stated in an affidavit that enforceable emission standards would lead to the development of new technologies that “‘would gradually be mandated by other countries around *516the world.’ ” 415 F. 3d, at 66 (quoting declaration of Michael Walsh ¶¶ 7-8, 10, Stdg. App. 309-310, 311). On the merits, Judge Tatel explained at length why he believed the text of the statute provided EPA with authority to regulate greenhouse gas emissions, and why its policy concerns did not justify its refusal to exercise that authority. 415 F. 3d, at 67-82.

IV

Article III of the Constitution limits federal-court jurisdiction to “Cases” and “Controversies.” Those two words confine “the business of federal courts to questions presented in an adversary context and in a form historically viewed as capable of resolution through the judicial process.” Flast v. Cohen, 392 U. S. 83, 95 (1968). It is therefore familiar learning that no justiciable “controversy” exists when parties seek adjudication of a political question, Luther v. Borden, 7 How. 1 (1849), when they ask for an advisory opinion, Hayburn’s Case, 2 Dall. 409 (1792), see also Clinton v. Jones, 520 U. S. 681,700, n. 33 (1997), or when the question sought to be adjudicated has been mooted by subsequent developments, California v. San Pablo & Tulare R. Co., 149 U. S. 308 (1893). This case suffers from none of these defects.

The parties’ dispute turns on the proper construction of a congressional statute, a question eminently suitable to resolution in federal court. Congress has moreover authorized this type of challenge to EPA action. See 42 U. S. C. § 7607(b)(1). That authorization is of critical importance to the standing inquiry: “Congress has the power to define injuries and articulate chains of causation that will give rise to a case or controversy where none existed before.” Lujan, 504 U. S., at 580 (Kennedy, J., concurring in part and concurring in judgment). “In exercising this power, however, Congress must at the very least identify the injury it seeks to vindicate and relate the injury to the class of persons entitled to bring suit.” Ibid. We will not, therefore, “entertain citi*517zen suits to vindicate the public’s nonconcrete interest in the proper administration of the laws.” Id., at 581.

EPA maintains that because greenhouse gas emissions inflict widespread harm, the doctrine of standing presents an insuperable jurisdictional obstacle. We do not agree. At bottom, “the gist of the question of standing” is whether petitioners have “such a personal stake in the outcome of the controversy as to assure that concrete adverseness which sharpens the presentation of issues upon which the court so largely depends for illumination.” Baker v. Carr, 369 U. S. 186, 204 (1962). As Justice Kennedy explained in his Lujan concurrence:

“While it does not matter how many persons have been injured by the challenged action, the party bringing suit must show that the action injures him in a concrete and personal way. This requirement is not just an empty formality. It preserves the vitality of the adversarial process by assuring both that the parties before the court have an actual, as opposed to professed, stake in the outcome, and that the legal questions presented ... will be resolved, not in the rarified atmosphere of a debating society, but in a concrete factual context conducive to a realistic appreciation of the consequences of judicial action.” 504 U. S., at 581 (internal quotation marks omitted).

To ensure the proper adversarial presentation, Lujan holds that a litigant must demonstrate that it has suffered a concrete and particularized injury that is either actual or imminent, that the injury is fairly traceable to the defendant, and that it is likely that a favorable decision will redress that injury. See id., at 560-561. However, a litigant to whom Congress has “accorded a procedural right to protect his concrete interests,” id., at 572, n. 7 — here, the right to challenge agency action unlawfully withheld, § 7607(b)(1) — “can assert that right without meeting all the normal standards for re*518dressability and immediacy,” ibid. When a litigant is vested with a procedural right, that litigant has standing if there is some possibility that the requested relief will prompt the injury-causing party to reconsider the decision that allegedly harmed the litigant. Ibid.; see also Sugar Cane Growers Cooperative of Fla. v. Veneman, 289 F. 3d 89, 94-95 (CADC 2002) (“A [litigant] who alleges a deprivation of a procedural protection to which he is entitled never has to prove that if he had received the procedure the substantive result would have been altered. All that is necessary is to show that the procedural step was connected to the substantive result”).

Only one of the petitioners needs to have standing to permit us to consider the petition for review. See Rumsfeld v. Forum for Academic and Institutional Rights, Inc., 547 U. S. 47, 52, n. 2 (2006). We stress here, as did Judge Tatel below, the special position and interest of Massachusetts. It is of considerable relevance that the party seeking review here is a sovereign State and not, as it was in Lujan, a private individual.

Well before the creation of the modern administrative state, we recognized that States are not normal litigants for the purposes of invoking federal jurisdiction. As Justice Holmes explained in Georgia v. Tennessee Copper Co., 206 U. S. 230, 237 (1907), a case in which Georgia sought to protect its citizens from air pollution originating outside its borders:

“The case has been argued largely as if it were one between two private parties; but it is not. The very elements that would be relied upon in a suit between fellow-citizens as a ground for equitable relief are wanting here. The State owns very little of the territory alleged to be affected, and the damage to it capable of estimate in money, possibly, at least, is small. This is a suit by a State for an injury to it in its capacity of gwcm-sovereign. In that capacity the State has an interest independent of and behind the titles of its citizens, *519in all the earth and air within its domain. It has the last word as to whether its mountains shall be stripped of their forests and its inhabitants shall breathe pure air.”

Just as Georgia’s independent interest “in all the earth and air within its domain” supported federal jurisdiction a century ago, so too does Massachusetts’ well-founded desire to preserve its sovereign territory today. Cf. Alden v. Maine, 527 U. S. 706, 715 (1999) (observing that in the federal system, the States “are not relegated to the role of mere provinces or political corporations, but retain the dignity, though not the full authority, of sovereignty”). That Massachusetts does in fact own a great deal of the “territory alleged to be affected” only reinforces the conclusion that its stake in the outcome of this case is sufficiently concrete to warrant the exercise of federal judicial power.

When a State enters the Union, it surrenders certain sovereign prerogatives. Massachusetts cannot invade Rhode Island to force reductions in greenhouse gas emissions, it cannot negotiate an emissions treaty with China or India, and in some circumstances the exercise of its police powers to reduce in-state motor-vehicle emissions might well be pre-empted. See Alfred L. Snapp & Son, Inc. v. Puerto Rico ex rel. Barez, 458 U. S. 592, 607 (1982) (“One helpful indication in determining whether an alleged injury to the health and welfare of its citizens suffices to give the State standing to sue parens patriae is whether the injury is one that the State, if it could, would likely attempt to address through its sovereign lawmaking powers”).

These sovereign prerogatives are now lodged in the Federal Government, and Congress has ordered EPA to protect Massachusetts (among others) by prescribing standards applicable to the “emission of any air pollutant from any class or classes of new motor vehicle engines, which in [the Administrator’s] judgment cause, or contribute to, air pollution which may reasonably be anticipated to endanger public *520health or welfare.” 42 U. S. C. § 7521(a)(1). Congress has moreover recognized a concomitant procedural right to challenge the rejection of its rulemaking petition as arbitrary and capricious. § 7607(b)(1). Given that procedural right and Massachusetts’ stake in protecting its quasi-sovereign interests, the Commonwealth is entitled to special solicitude in our standing analysis.17

*521With that in mind, it is clear that petitioners’ submissions as they pertain to Massachusetts have satisfied the most demanding standards of the adversarial process. EPA’s steadfast refusal to regulate greenhouse gas emissions presents a risk of harm to Massachusetts that is both “actual” and “imminent.” Lujan, 504 U. S., at 560 (internal quotation marks omitted). There is, moreover, a “substantial likelihood that the judicial relief requested” will prompt EPA to take steps to reduce that risk. Duke Power Co. v. Carolina Environmental Study Group, Inc., 438 U. S. 59, 79 (1978).

The Injury

The harms associated with climate change are serious and well recognized. Indeed, the NRC Report itself — which EPA regards as an “objective and independent assessment of the relevant science,” 68 Fed. Reg. 52930 — identifies a number of environmental changes that have already inflicted significant harms, including “the global retreat of mountain glaciers, reduction in snow-cover extent, the earlier spring melting of ice on rivers and lakes, [and] the accelerated rate of rise of sea levels during the 20th century relative to the past few thousand years . . . .” NRC Report 16.

Petitioners allege that this only hints at the environmental damage yet to come. According to the climate scientist Michael MacCracken, “qualified scientific experts involved in climate change research” have reached a “strong consensus” that global warming threatens (among other things) a precipitate rise in sea levels by the end of the century, MacCraeken Decl. ¶ 5, Stdg. App. 207, “severe and irreversible changes to natural ecosystems,” id., ¶ 5(d), at 209, a “significant reduction in water storage in winter snowpack in mountainous regions with direct and important economic consequences,” ibid., and an increase in the spread of disease, id., ¶ 28, at 218-219. He also observes that rising ocean temper*522atures may contribute to the ferocity of hurricanes. Id., ¶¶ 23-25, at 216-217.18

That these climate-change risks are “widely shared” does not minimize Massachusetts’ interest in the outcome of this litigation. See Federal Election Comm’n v. Akins, 524 U. S. 11, 24 (1998) (“[W]here a harm is concrete, though widely shared, the Court has found ‘injury in fact’”). According to petitioners’ unchallenged affidavits, global sea levels rose somewhere between 10 and 20 centimeters over the 20th century as a result of global warming. MacCracken Decl. ¶ 5(c), Stdg. App. 208. These rising seas have already begun to swallow Massachusetts’ coastal land. Id., at 196 (declaration of Paul H. Kirshen ¶ 5), 216 (MacCracken Deck ¶23). Because the Commonwealth “owns a substantial portion of the state’s coastal property,” id., at 171 (declaration of Karst R. Hoogeboom ¶ 4),19 it has alleged a particularized injury in its capacity as a landowner. The severity of that injury will *523only increase over the course of the next century: If sea levels continue to rise as predicted, one Massachusetts official believes that a significant fraction of coastal property will be “either permanently lost through inundation or temporarily lost through periodic storm surge and flooding events.” Id., ¶6, at 172.20 Remediation costs alone, petitioners allege, could run well into the hundreds of millions of dollars. Id., ¶ 7, at 172; see also Kirshen Decl. ¶ 12, at 198.21

Causation

EPA does not dispute the existence of a causal connection between manmade greenhouse gas emissions and global warming. At a minimum, therefore, EPA’s refusal to regulate such emissions “contributes” to Massachusetts’ injuries.

EPA nevertheless maintains that its decision not to regulate greenhouse gas emissions from new motor vehicles contributes so insignificantly to petitioners’ injuries that the Agency cannot be haled into federal court to answer for them. For the same reason, EPA does not believe that any realistic possibility exists that the relief petitioners seek would mitigate global climate change and remedy their injuries. That is especially so because predicted increases in greenhouse *524gas emissions from developing nations, particularly China and India, are likely to offset any marginal domestic decrease.

But EPA overstates its case. Its argument rests on the erroneous assumption that a small incremental step, because it is incremental, can never be attacked in a federal judicial forum. Yet accepting that premise would doom most challenges to regulatory action. Agencies, like legislatures, do not generally resolve massive problems in one fell regulatory swoop. See Williamson v. Lee Optical of Okla., Inc., 348 U. S. 483, 489 (1955) (“[A] reform may take one step at a time, addressing itself to the phase of the problem which seems most acute to the legislative mind”)- They instead whittle away at them over time, refining their preferred approach as circumstances change and as they develop a more nuanced understanding of how best to proceed. Cf. SEC v. Chenery Corp., 332 U. S. 194, 202 (1947) (“Some principles must await their own development, while others must be adjusted to meet particular, unforeseeable situations”). That a first step might be tentative does not by itself support the notion that federal courts lack jurisdiction to determine whether that step conforms to law.

And reducing domestic automobile emissions is hardly a tentative step. Even leaving aside the other greenhouse gases, the United States transportation sector emits an enormous quantity of carbon dioxide into the atmosphere — according to the MacCracken affidavit, more than 1.7 billion metric tons in 1999 alone. ¶ 30, Stdg. App. 219. That accounts for more than 6% of worldwide carbon dioxide emissions. Id., at 232 (Oppenheimer Decl. ¶3); see also MacCracken Decl. ¶31, at 220. To put this in perspective: Considering just emissions from the transportation sector, which represent less than one-third of this country's total carbon dioxide emissions, the United States would still rank as the third-largest emitter of carbon dioxide in the world, *525outpaced only by the European Union and China.22 Judged by any standard, U. S. motor-vehicle emissions make a meaningful contribution to greenhouse gas concentrations and hence, according to petitioners, to global warming.

The Remedy

While it may be true that regulating motor-vehicle emissions will not by itself reverse global warming, it by no means follows that we lack jurisdiction to decide whether EPA has a duty to take steps to slow or reduce it. See also Larson v. Valente, 456 U. S. 228, 244, n. 15 (1982) ("[A] plaintiff satisfies the redressability requirement when he shows that a favorable decision will relieve a discrete injury to himself. He need not show that a favorable decision will relieve his every injury”). Because of the enormity of the potential consequences associated with manmade climate change, the fact that the effectiveness of a remedy might be delayed during the (relatively short) time it takes for a new motor-vehicle fleet to replace an older one is essentially irrelevant.23 Nor is it dispositive that developing countries such as China and India are poised to increase greenhouse gas emissions *526substantially over the next century: A reduction in domestic emissions would slow the pace of global emissions increases, no matter what happens elsewhere.

We moreover attach considerable significance to EPA’s “agree[ment] with the President that ‘we must address the issue of global climate change,’ ” 68 Fed. Reg. 52929 (quoting remarks announcing Clear Skies and Global Climate Initiatives, 2002 Public Papers of George W. Bush, Vol. 1, Feb. 14, p. 227 (2004)), and to EPA’s ardent support for various voluntary emission-reduction programs, 68 Fed. Reg. 52932. As Judge Tatel observed in dissent below, “EPA would presumably not bother with such efforts if it thought emissions reductions would have no discernable impact on future global warming.” 415 F. 3d, at 66.

In sum — at least according to petitioners’ uncontested affidavits — the rise in sea levels associated with global warming has already harmed and will continue to harm Massachusetts. The risk of catastrophic harm, though remote, is nevertheless real. That risk would be reduced to some extent if petitioners received the relief they seek. We therefore hold that petitioners have standing to challenge EPA’s denial of their rulemaking petition.24

*527V

The scope of our review of the merits of the statutory issues is narrow. As we have repeated time and again, an agency has broad discretion to choose how best to marshal its limited resources and personnel to carry out its delegated responsibilities. See Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837, 842-845 (1984). That discretion is at its height when the agency decides not to bring an enforcement action. Therefore, in Heckler v. Chaney, 470 U. S. 821 (1985), we held that an agency’s refusal to initiate enforcement proceedings is not ordinarily subject to judicial review. Some debate remains, however, as to the rigor with which we review an agency’s denial of a petition for rulemaking.

There are key differences between a denial of a petition for rulemaking and an agency’s decision not to initiate an enforcement action. See American Horse Protection Assn., Inc. v. Lyng, 812 F. 2d 1, 3-4 (CADC 1987). In contrast to nonenforeement decisions, agency refusals to initiate rule-making “are less frequent, more apt to involve legal as opposed to factual analysis, and subject to special formalities, including a public explanation.” Id., at 4; see also 5 U. S. C. § 555(e). They moreover arise out of denials of petitions for rulemaking which (at least in the circumstances here) the affected party had an undoubted procedural right to file in the first instance. Refusals to promulgate rules are thus susceptible to judicial review, though such review is “ex*528tremely limited” and “highly deferential.” National Customs Brokers & Forwarders Assn. of America, Inc. v. United States, 883 F. 2d 93, 96 (CADC 1989).

EPA concluded in its denial of the petition for rulemaking that it lacked authority under 42 U. S. C. § 7521(a)(1) to regulate new vehicle emissions because carbon dioxide is not an “air pollutant” as that term is defined in § 7602. In the alternative, it concluded that even if it possessed authority, it would decline to do so because regulation would conflict with other administration priorities. As discussed earlier, the Clean Air Act expressly permits review of such an action. § 7607(b)(1). We therefore “may reverse any such action found to be . .. arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” § 7607(d)(9).

VI

On the merits, the first question is whether § 202(a)(1) of the Clean Air Act authorizes EPA to regulate greenhouse gas emissions from new motor vehicles in the event that it forms a “judgment” that such emissions contribute to climate change. We have little trouble concluding that it does. In relevant part, § 202(a)(1) provides that EPA “shall by regulation prescribe ... standards applicable to the emission of any air pollutant from any class or classes of new motor vehicles or new motor vehicle engines, which in [the Administrator’s] judgment cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare.” 42 U. S. C. § 7521(a)(1). Because EPA believes that Congress did not intend it to regulate substances that contribute to climate change, the agency maintains that carbon dioxide is not an “air pollutant” within the meaning of the provision.

The statutory text forecloses EPA’s reading. The Clean Air Act’s sweeping definition of “air pollutant” includes “any air pollution agent or combination of such agents, including any physical, chemical... substance or matter which is emit*529ted into or otherwise enters the ambient air....” § 7602(g) (emphasis added). On its face, the definition embraces all airborne compounds of whatever stripe, and underscores that intent through the repeated use of the word “any.”25 Carbon dioxide, methane, nitrous oxide, and hydrofluorocarbons are without a doubt “physical [and] chemical... substance[s] which [are] emitted into . .. the ambient air.” The statute is unambiguous.26

Rather than relying on statutory text, EPA invokes post-enactment congressional actions and deliberations it views as tantamount to a congressional command to refrain from regulating greenhouse gas emissions. Even if such post-enactment legislative history could shed light on the meaning of an otherwise-unambiguous statute, EPA never identifies any action remotely suggesting that Congress meant to curtail its power to treat greenhouse gases as air pollutants. That subsequent Congresses have eschewed enacting bind*530ing emissions limitations to combat global warming tells us nothing about what Congress meant when it amended § 202(a)(1) in 1970 and 1977.27 And unlike EPA, we have no difficulty reconciling Congress’ various efforts to promote interagency collaboration and research to better understand climate change28 with the Agency’s pre-existing mandate to regulate “any air pollutant” that may endanger the public welfare. See 42 U. S. C. § 7601(a)(1). Collaboration and research do not conflict with any thoughtful regulatory effort; they complement it.29

EPA’s reliance on Brown & Williamson Tobacco Corp., 529 U. S. 120, is similarly misplaced. In holding that tobacco products are not “drugs” or “devices” subject to Food and Drug Administration (FDA) regulation pursuant to the Food, Drug and Cosmetic Act (FDCA), see 529 U. S., at 133, we *531found critical at least two considerations that have no counterpart in this case.

First, we thought it unlikely that Congress meant to ban tobacco products, which the FDCA would have required had such products been classified as “drugs” or “devices.” Id., at 135-137. Here, in contrast, EPA jurisdiction would lead to no such extreme measures. EPA would only regulate emissions, and even then, it would have to delay any action “to permit the development and application of the requisite technology, giving appropriate consideration to the cost of compliance,” § 7521(a)(2). However much a ban on tobacco products clashed with the “common sense” intuition that Congress never meant to remove those products from circulation, Brown & Williamson, 529 U. S., at 133, there is nothing counterintuitive to the notion that EPA can curtail the emission of substances that are putting the global climate out of kilter.

Second, in Brown & Williamson we pointed to an unbroken series of congressional enactments that made sense only if adopted “against the backdrop of the FDA’s consistent and repeated statements that it lacked authority under the FDCA to regulate tobacco.” Id., at 144. We can point to no such enactments here: EPA has not identified any congressional action that conflicts in any way with the regulation of greenhouse gases from new motor vehicles. Even if it had, Congress could not have acted against a regulatory “backdrop” of disclaimers of regulatory authority. Prior to the order that provoked this litigation, EPA had never disavowed the authority to regulate greenhouse gases, and in 1998 it in fact affirmed that it had such authority. See App. 54 (Cannon memorandum). There is no reason, much less a compelling reason, to accept EPA’s invitation to read ambiguity into a clear statute.

EPA finally argues that it cannot regulate carbon dioxide emissions from motor vehicles because doing so would require it to tighten mileage standards, a job (according to *532EPA) that Congress has assigned to DOT. See 68 Fed. Reg. 52929. But that DOT sets mileage standards in no way licenses EPA to shirk its environmental responsibilities. EPA has been charged with protecting the public's “health” and “welfare,” 42 U. S. C. § 7521(a)(1), a statutory obligation wholly independent of DOT’S mandate to promote energy efficiency. See Energy Policy and Conservation Act, § 2(5), 89 Stat. 874,42 U. S. C. § 6201(5). The two obligations may overlap, but there is no reason to think the two agencies cannot both administer their obligations and yet avoid inconsistency.

While the Congresses that drafted § 202(a)(1) might not have appreciated the possibility that burning fossil fuels could lead to global warming, they did understand that without regulatory flexibility, changing circumstances and scientific developments would soon render the Clean Air Act obsolete. The broad language of § 202(a)(1) reflects an intentional effort to confer the flexibility necessary to forestall such obsolescence. See Pennsylvania Dept. of Corrections v. Yeskey, 524 U. S. 206, 212 (1998) (“[T]he fact that a statute can be applied in situations not expressly anticipated by Congress does not demonstrate ambiguity. It demonstrates breadth” (internal quotation marks omitted)). Because greenhouse gases fit well within the Clean Air Act’s capacious definition of “air pollutant,” we hold that EPA has the statutory authority to regulate the emission of such gases from new motor vehicles.

VII

The alternative basis for EPA’s decision — that even if it does have statutory authority to regulate greenhouse gases, it would be unwise to do so at this time — rests on reasoning divorced from the statutory text. While the statute does condition the exercise of EPA’s authority on its formation of a “judgment,” 42 U. S. C. § 7521(a)(1), that judgment must relate to whether an air pollutant “eause[s], or contribute[s] to, air pollution which may reasonably be anticipated to en*533danger public health or welfare,” ibid. Put another way, the use of the word “judgment” is not a roving license to ignore the statutory text. It is but a direction to exercise discretion within defined statutory limits.

If EPA makes a finding of endangerment, the Clean Air Act requires the Agency to regulate emissions of the deleterious pollutant from new motor vehicles. Ibid, (stating that “[EPA] shall by regulation prescribe... standards applicable to the emission of any air pollutant from any class or classes of new motor vehicles”). EPA no doubt has significant latitude as to the manner, timing, content, and coordination of its regulations with those of other agencies. But once EPA has responded to a petition for rulemaking, its reasons for action or inaction must conform to the authorizing statute. Under the clear terms of the Clean Air Act, EPA can avoid taking further action only if it determines that greenhouse gases do not contribute to climate change or if it provides some reasonable explanation as to why it cannot or will not exercise its discretion to determine whether they do. Ibid. To the extent that this constrains agency discretion to pursue other priorities of the Administrator or the President, this is the congressional design.

EPA has refused to comply with this clear statutory command. Instead, it has offered a laundry list of reasons not to regulate. For example, EPA said that a number of voluntary Executive Branch programs already provide an effective response to the threat of global warming, 68 Fed. Reg. 52932, that regulating greenhouse gases might impair the President’s ability to negotiate with “key developing nations” to reduce emissions, id., at 52931, and that curtailing motor-vehicle emissions would reflect “an inefficient, piecemeal approach to address the climate change issue,” ibid.

Although we have neither the expertise nor the authority to evaluate these policy judgments, it is evident they have nothing to do with whether greenhouse gas emissions contribute to climate change. Still less do they amount to a *534reasoned justification for declining to form a scientific judgment. In particular, while the President has broad authority in foreign affairs, that authority does not extend to the refusal to execute domestic laws. In the Global Climate Protection Act of 1987, Congress authorized the State Department — not EPA — to formulate United States foreign policy with reference to environmental matters relating to climate. See § 1103(c), 101 Stat. 1409. EPA has made no showing that it issued the ruling in question here after consultation with the State Department. Congress did direct EPA to consult with other agencies in the formulation of its policies and rules, but the State Department is absent from that list. § 1103(b).

Nor can EPA avoid its statutory obligation by noting the uncertainty surrounding various features of climate change and concluding that it would therefore be better not to regulate at this time. See 68 Fed. Reg. 52930-52931. If the scientific uncertainty is so profound that it precludes EPA from making a reasoned judgment as to whether greenhouse gases contribute to global warming, EPA must say so. That EPA would prefer not to regulate greenhouse gases because of some residual uncertainty — which, contrary to Justice Scalia’s apparent belief, post, at 553-555, is in fact all that it said, see 68 Fed. Reg. 52929-52930 (“We do not believe ... that it would be either effective or appropriate for EPA to establish [greenhouse gas] standards for motor vehicles at this time” (emphasis added)) — is irrelevant. The statutory question is whether sufficient information exists to make an endangerment finding.

In short, EPA has offered no reasoned explanation for its refusal to decide whether greenhouse gases cause or contribute to climate change. Its action was therefore “arbitrary, capricious, ... or otherwise not in accordance with law.” 42 U. S. C. § 7607(d)(9)(A). We need not and do not reach the question whether on remand EPA must make an endangerment finding, or whether policy concerns can inform *535EPA's actions in the event that it makes such a finding. Cf. Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S., at 843-844. We hold only that EPA must ground its reasons for action or inaction in the statute.

VIII

The judgment of the Court of Appeals is reversed, and the case is remanded for further proceedings consistent with this opinion.

It is so ordered.

1

Pet. for Cert. 22.

2

California, Connecticut, Illinois, Maine, Massachusetts, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington.

3

District of Columbia, American Samoa, New York City, and Baltimore.

4

Center for Biological Diversity, Center for Food Safety, Conservation Law Foundation, Environmental Advocates, Environmental Defense, Friends of the Earth, Greenpeace, International Center for Technology Assessment, National Environmental Trust, Natural Resources Defense Council, Sierra Club, Union of Concerned Scientists, and U. S. Public Interest Research Group.

5

Alaska, Idaho, Kansas, Michigan, Nebraska, North Dakota, Ohio, South Dakota, Texas, and Utah.

6

Alliance of Automobile Manufacturers, National Automobile Dealers Association, Engine Manufacturers Association, Truck Manufacturers Association, C02 Litigation Group, and Utility Air Regulatory Group.

7

The 1970 version of § 202(a)(1) used the phrase “which endangers the public health or welfare” rather than the more protective “which may reasonably be anticipated to endanger public health or welfare.” See § 6(a) of the Clean Air Amendments of 1970, 84 Stat. 1690. Congress amended § 202(a)(1) in 1977 to give its approval to the decision in Ethyl Corp. v. EPA, 541 F. 2d 1, 25 (CADC 1976) (en banc), which held that the Clean Air Act “and common sense... demand regulatory action to prevent harm, even if the regulator is less than certain that harm is otherwise inevitable.” See § 401(d)(1) of the Clean Air Act Amendments of 1977, 91 Stat. 791; see also H. R. Rep. No. 95-294, p. 49 (1977).

8

The Council on Environmental Quality had issued a report in 1970 concluding that “[m]an may be changing his weather.” Environmental Quality: The First Annual Report 93. Considerable uncertainty remained in those early years, and the issue went largely unmentioned in the congressional debate over the enactment of the Clean Air Act. But see 116 Cong. Rec. 32914 (1970) (statement of Sen. Boggs referring to Council’s conclusion that “[a]ir pollution alters the climate and may produce global changes in temperature”).

9

See Intergovernmental Panel on Climate Change, Climate Change 2001: Synthesis Report, pp. 202-203 (2001). By drilling through thick Antarctic ice sheets and extracting “cores,” scientists can examine ice from long ago and extract small samples of ancient air. That air can then be analyzed, yielding estimates of carbon dioxide levels. Ibid.

10

A more dramatic rise was yet to come: In 2006, carbon dioxide levels reached 382 parts per million, see Dept, of Commerce, National Oceanic & Atmospheric Administration, Mauna Loa C02 Monthly Mean Data, http:// www.esrl.noaa.gov/gmd/ccgg/trends/co2_mm_mlo.dat (all Internet materials as visited Mar. 29, 2007, and available in Clerk of Court’s case file), a level thought to exceed the concentration of carbon dioxide in the atmosphere at any point over the past 20 million years. See Intergovernmental Panel on Climate Change, Technical Summary of Working Group I Report 39 (2001).

11

Climate Research Board, Carbon Dioxide and Climate: A Scientific Assessment, p. viii (1979).

12

IPCC, Climate Change: The IPCC Scientific Assessment, p. xi (J. Houghton, G. Jenkins, & J. Ephraums eds. 1991).

13

The industrialized countries listed in Annex I to the UNFCCC undertook to reduce their emissions of greenhouse gases to 1990 levels by the year 2000. No immediate restrictions were imposed on developing countries, including China and India. They could choose to become Annex I countries when sufficiently developed.

14

IPCC, Climate Change 1995, The Science of Climate Change, p. 4.

15

Alliance for Sustainable Communities; Applied Power Technologies, Inc.; Bio Fuels America; The California Solar Energy Industries Assn.; Clements Environmental Corp.; Environmental Advocates; Environmental and Energy Study Institute; Friends of the Earth; Full Circle Energy Project, Inc.; The Green Party of Rhode Island; Greenpeace USA; International Center for Technology Assessment; Network for Environmental and Economic Responsibility of the United Church of Christ; New Jersey Environmental Watch; New Mexico Solar Energy Assn.; Oregon Environmental Council; Public Citizen; Solar Energy Industries Assn.; The SUN DAY Campaign. See App. 7-11.

16

See 42 U. S. C. § 7607(b)(1) (“A petition for review of action of the Administrator in promulgating any... standard under section 7521 of this title ... or final action taken, by the Administrator under this chapter may be filed only in the United States Court of Appeals for the District of Columbia”).

17

The Chief Justice accuses the Court of misreading Georgia v. Tennessee Copper Co., 206 U. S. 230 (1907), see post, at 537-538 (dissenting opinion), and “devis[ing] a new doctrine of state standing,” post, at 548. But no less an authority than Hart & Wechsler’s The Federal Courts and the Federal System understands Tennessee Copper as a standing decision. R. Fallon, D. Meltzer, & D. Shapiro, Hart & Wechsler’s The Federal Courts and the Federal System 290 (5th ed. 2003). Indeed, it devotes an entire section to chronicling the long development of cases permitting States “to litigate as parens patriae to .protect quasi-sovereign interests — i. e., public or governmental interests that concern the state as a whole.” Id., at 289; see, e. g., Missouri v. Illinois, 180 U. S. 208,240-241 (1901) (finding federal jurisdiction appropriate not only “in cases involving boundaries and jurisdiction over lands and their inhabitants, and in cases directly affecting the property rights and interests of a State,” but also when the “substantial impairment of the health and prosperity of the towns and cities of the state” are at stake).

Drawing on Massachusetts v. Mellon, 262 U. S. 447 (1923), and Alfred L. Snapp & Son, Inc. v. Puerto Rico ex rel. Barez, 458 U. S. 592 (1982) (citing Missouri v. Illinois, 180 U. S. 208 (1901)), The Chief Justice claims that we “overloo[k] the fact that our cases cast significant doubt on a State’s standing to assert a quasi-sovereign interest . . . against the Federal Government.” Post, at 539. Not so. Mellon itself disavowed any such broad reading when it noted that the Court had been “called upon to adjudicate, not rights of person or property, not rights of dominion over physical domain, [and] not quasi-sovereign rights actually invaded or threatened." 262 U. S., at 484-485 (emphasis added). In any event, we held in Georgia v. Pennsylvania R. Co., 324 U. S. 439, 447 (1945), that there is a critical difference between allowing a State “to protect her citizens from the operation of federal statutes” (which is what Mellon prohibits) and allowing a State to assert its rights under federal law (which it has standing to do). Massachusetts does not here dispute that the Clean Air Act applies to its citizens; it rather seeks to assert its rights under the Act. See also Nebraska v. Wyoming, 515 U. S. 1, 20 (1995) (holding that Wyoming had standing to bring a cross-claim against the United States to vindicate its “ ‘quasi-sovereign’ interests which are ‘independent *521of and behind the titles of its citizens, in all the earth and air within its domain’ ” (quoting Tennessee Copper, 206 U. S., at 237)).

18

In this regard, MacCracken’s 2004 affidavit — drafted more than a year in advance of Hurricane Katrina — was eerily prescient. Immediately after discussing the “particular concern” that climate change might cause an “increase in the wind speed and peak rate of precipitation of major tropical cyclones (i. e., hurricanes and typhoons),” MacCracken noted that “Hail compaction, sea level rise and recurrent storms are destroying approximately 20-30 square miles of Louisiana wetlands each year. These wetlands serve as a ‘shock absorber’ for storm surges that could inundate New Orleans, significantly enhancing the risk to a major urban population.” ¶¶ 24-25, Stdg. App. 217.

19

“For example, the [Massachusetts Department of Conservation and Recreation] owns, operates and maintains approximately 53 coastal state parks, beaches, reservations, and wildlife sanctuaries. [It] also owns, operates and maintains sporting and recreational facilities in coastal areas, including numerous pools, skating rinks, playgrounds, playing fields, former coastal fortifications, public stages, museums, bike trails, tennis courts, boathouses and boat ramps and landings. Associated with these coastal properties and facilities is a significant amount of infrastructure, which the Commonwealth also owns, operates and maintains, including roads, parkways, stormwater pump stations, pier[s], sea wal[l] revetments and dams.” Hoogeboom Deck ¶ 4, at 171.

20

See also id., at 179 (declaration of Christian Jacqz) (discussing possible loss of roughly 14 acres of land per miles of coastline by 2100); Kirshen Decl. ¶ 10, at 198 (alleging that “[w]hen such a rise in sea level occurs, a 10-year flood will have the magnitude of the present 100-year flood and a 100-year flood will have the magnitude of the present 500-year flood”).

21

In dissent, The Chief Justice dismisses petitioners’ submissions as “conelusory,” presumably because they do not quantify Massachusetts’ land loss with the exactitude he would prefer. Post, at 542. He therefore asserts that the Commonwealth’s injury is “conjectur[al].” See ibid. Yet the likelihood that Massachusetts’ coastline will recede has nothing to do with whether petitioners have determined the precise metes and bounds of their soon-to-be-flooded land. Petitioners maintain that the seas are rising and will continue to rise, and have alleged that such a rise will lead to the loss of Massachusetts’ sovereign territory. No one, save perhaps the dissenters, disputes those allegations. Our cases require nothing more.

22

See UNFCCC, National Greenhouse Gas Inventory Data for the Period 1990-2004 and Status of Reporting 14 (2006) (reflecting emissions from Annex I countries); UNFCCC, Sixth Compilation and Synthesis of Initial National Communications from Parties not Included in Annex I to the Convention 7-8 (2005) (reflecting emissions from non-Annex I countries); see also Dept, of Energy, Energy Information Admin., International Energy Annual 2004, H.lco2 World Carbon Dioxide Emissions from the Consumption and Flaring of Fossil Fuels, 1980-2004 (Table), http:// www.eia.doe.gov/pub/international/iealf/tablehlco2.xls.

23

See also Mountain States Legal Foundation v. Gliekman, 92 F. 3d 1228, 1234 (CADC 1996) (“The more drastic the injury that government action makes more likely, the lesser the increment in probability to establish standing”); Village of Elk Grove Village v. Evans, 997 F. 2d 328, 329 (CA7 1993) (“[E]ven a small probability of injury is sufficient to create a case or controversy — to take a suit out of the category of the hypothetical — provided of course that the relief sought would, if granted, reduce the probability”).

24

In his dissent, The Chief Justice expresses disagreement with the Court’s holding in United States v. Students Challenging Regulatory Agency Procedures (SCRAP), 412 U. S. 669,687-688 (1973). He does not, however, disavow this portion of Justice Stewart’s opinion for the Court: “Unlike the specific and geographically limited federal action of which the petitioner complained in Sierra Club [v. Morton, 405 U. S. 727 (1972)], the challenged agency action in this case is applicable to substantially all of the Nation’s railroads, and thus allegedly has an adverse environmental impact on all the natural resources of the country. Rather than a limited group of persons who used a picturesque valley in California, all persons who utilize the scenic resources of the country, and indeed all who breathe its air, could claim harm similar to that alleged by the environmental groups here. But we have already made it clear that standing is not to be denied simply because many people suffer the same injury. Indeed some of the cases on which we relied in Sierra Club demonstrated the patent fact that persons across the Nation could be adversely affected by *527major governmental actions. To deny standing to persons who are in fact injured simply because many others are also injured, would mean that the most injurious and widespread Government actions could be questioned by nobody. We cannot accept that conclusion.” Ibid, (citations omitted and emphasis added).

It is moreover quite wrong to analogize the legal claim advanced by Massachusetts and the other public and private entities who challenge EPA’s parsimonious construction of the Clean Air Act to a mere “lawyer’s game.” See post, at 548.

25

See Department of Housing and Urban Development v. Rucker, 535 U. S. 125, 131 (2002) (observing that “‘any’... has an expansive meaning, that is, one or some indiscriminately of whatever kind” (some internal quotation marks omitted)).

26

In dissent,. Justice Scalia maintains that because greenhouse gases permeate the world’s atmosphere rather than a limited area near the earth’s surface, EPA’s exclusion of greenhouse gases from the category of air pollution “agentfe]” is entitled to deference under Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837 (1984). See post, at 558-560. EPA’s distinction, however, finds no support in the text of the statute, which uses the phrase “the ambient air” without distinguishing between atmospheric layers. Moreover, it is a plainly unreasonable reading of a sweeping statutory provision designed to capture “any physical, chemical... substance or matter which is emitted into or otherwise enters the ambient air.” 42 U. S. C. § 7602(g). Justice Scalia does not (and cannot) explain why Congress would define “air pollutant” so carefully and so broadly, yet confer on EPA the authority to narrow that definition whenever expedient by asserting that a particular substance is not an “agent.” At any rate, no party to this dispute contests that greenhouse gases both “ente[r] the ambient air” and tend to warm the atmosphere. They are therefore unquestionably “agent[s]” of air pollution.

27

See United States v. Price, 361 U. S. 304, 313 (1960) (holding that “the views of a subsequent Congress form a hazardous basis for inferring the intent of an earlier one”); see also Cobell v. Norton, 428 F. 3d 1070, 1075 (CADC 2005) (“[P]ost-enactment legislative history is not only oxymoronic but inherently entitled to little weight”).

28

See, e. g., National Climate Program Act, §5, 92 Stat. 601, 15 U. S. C. §2901 et seq. (calling for the establishment of a National Climate Program and for additional climate-change research); Global Climate Protection Act of 1987, § 1103, 101 Stat. 1408-1409, note following 15 U. S. C. §2901 (directing EPA and the Secretary of State to “jointly” develop a “coordinated national policy on global climate change” and report to Congress); Global Change Research Act of 1990, Tit. I, 104 Stat. 3097, 15 U. S. C. §§2921-2938 (establishing for the “development and coordination of a comprehensive and integrated United States research program” to aid in “understand[ing] . . . human-induced and natural processes of climate change”); Global Climate Change Prevention Act of 1990, 104 Stat. 4058, 7 U. S. C. §6701 et seq. (directing the Dept, of Agriculture to study the effects of climate change on forestry and agriculture); Energy Policy Act of 1992, §§ 1601-1609, 106 Stat. 2999,42 U. S. C. §§ 13381-13388 (requiring the Secretary of Energy to report on information pertaining to climate change).

29

We are moreover puzzled by EPA’s roundabout argument that because later Congresses chose to address stratospheric ozone pollution in a specific legislative provision, it somehow follows that greenhouse gases cannot be air pollutants within the meaning of the Clean Air Act.

Chief Justice Roberts,

with whom Justice Scalia, Justice Thomas, and Justice Alito join, dissenting.

Global warming may be a “crisis,” even “the most pressing environmental problem of our time.” Pet. for Cert. 26, 22. Indeed, it may ultimately affect nearly everyone on the planet in some potentially adverse way, and it may be that governments have done too little to address it. It is not a problem, however, that has escaped the attention of policymakers in the Executive and Legislative Branches of our Government, who continue to consider regulatory, legislative, and treaty-based means of addressing global climate change.

Apparently dissatisfied with the pace of progress on this issue in the elected branches, petitioners have come to the courts claiming broad-ranging injury, and attempting to tie that injury to the Government’s alleged failure to comply with a rather narrow statutory provision. I would reject these challenges as nonjusticiable. Such a conclusion involves no judgment on whether global warming exists, what causes it, or the extent of the problem. Nor does it render petitioners without recourse. This Court’s standing jurisprudence simply recognizes that redress of grievances of the sort at issue here “is the function of Congress and the Chief Executive,” not the federal courts. Lujan v. Defenders of Wildlife, 504 U. S. 555, 576 (1992). I would vacate the judg*536ment below and remand for dismissal of the petitions for review.

I

Article III, § 2, of the Constitution limits the federal judicial power to the adjudication of “Cases” and “Controversies.” “If a dispute is not a proper case or controversy, the courts have no business deciding it, or expounding the law in the course of doing so.” DaimlerChrysler Corp. v. Cuno, 547 U. S. 332, 341 (2006). “Standing to sue is part of the common understanding of what it takes to make a justiciable ease,” Steel Co. v. Citizens for Better Environment, 523 U. S. 83, 102 (1998), and has been described as “an essential and unchanging part of the case-or-controversy requirement of Article III,” Defenders of Wildlife, supra, at 560.

Our modern framework for addressing standing is familiar: “A plaintiff must allege personal injury fairly traceable to the defendant’s allegedly unlawful conduct and likely to be redressed by the requested relief.” DaimlerChrysler, supra, at 342 (quoting Allen v. Wright, 468 U. S. 737, 751 (1984); internal quotation marks omitted). Applying that standard here, petitioners bear the burden of alleging an injury that is fairly traceable to the Environmental Protection Agency’s failure to promulgate new motor vehicle greenhouse gas emission standards, and that is likely to be redressed by the prospective issuance of such standards.

Before determining whether petitioners can meet this familiar test, however, the Court changes the rules. It asserts that “States are not normal litigants for the purposes of invoking federal jurisdiction,” and that given “Massachusetts’ stake in protecting its quasi-sovereign interests, the Commonwealth is entitled to special solicitude in our standing analysis.” Ante, at 518, 520 (emphasis added).

Relaxing Article III standing requirements because asserted injuries are pressed by a State, however, has no basis in our jurisprudence, and support for any such “special solicitude” is conspicuously absent from the Court’s opinion. The general judicial review provision cited by the Court, 42 *537U. S. C. § 7607(b)(1), affords States no special rights or status. The Court states that “Congress has ordered EPA to protect Massachusetts (among others)” through the statutory provision at issue, § 7521(a)(1), and that “Congress has ... recognized a concomitant procedural right to challenge the rejection of its rulemaking petition as arbitrary and capricious.” Ante, at 519, 520. The reader might think from this unfortunate phrasing that Congress said something about the rights of States in this particular provision of the statute. Congress knows how to do that when it wants to, see, e. g., § 7426(b) (affording States the right to petition EPA to directly regulate certain sources of pollution), but it has done nothing of the sort here. Under the law on which petitioners rely, Congress treated public and private litigants exactly the same.

Nor does the case law cited by the Court provide any support for the notion that Article III somehow implicitly treats public and private litigants differently. The Court has to go back a full century in an attempt to justify its novel standing rule, but even there it comes up short. The Court’s analysis hinges on Georgia v. Tennessee Copper Co., 206 U. S. 230 (1907) — a case that did indeed draw a distinction between a State and private litigants, but solely with respect to available remedies. The case had nothing to do with Article III standing.

In Tennessee Copper, the State of Georgia sought to enjoin copper companies in neighboring Tennessee from discharging pollutants that were inflicting “a wholesale destruction of forests, orchards and crops” in bordering Georgia counties. Id., at 236. Although the State owned very little of the territory allegedly affected, the Court reasoned that Georgia— in its capacity as a “quasi-sovereign” — “has an interest independent of and behind the titles of its citizens, in all the earth and air within its domain.” Id., at 237. The Court explained that while “[t]he very elements that would be relied upon in a suit between fellow-citizens as a ground for equitable relief [were] wanting,” a State “is not lightly to be re*538quired to give up quasi-sovereign rights for pay.” Ibid. Thus while a complaining private litigant would have to make do with a legal remedy — one “for pay” — the State was entitled to equitable relief. See id., at 237-238.

In contrast to the present case, there was no question in Tennessee Copper about Article III injury. See id., at 238-239. There was certainly no suggestion that the State could show standing where the private parties could not; there was no dispute, after all, that the private landowners had “an action at law.” Id., at 238. Tennessee Copper has since stood for nothing more than a State’s right, in an original jurisdiction action, to sue in a representative capacity as parens patriae. See, e. g., Maryland v. Louisiana, 451 U. S. 725, 737 (1981). Nothing about a State’s ability to sue in that capacity dilutes the bedrock requirement of showing injury, causation, and redressability to satisfy Article III.

A claim of parens patriae standing is distinct from an allegation of direct injury. See Wyoming v. Oklahoma, 502 U. S. 437, 448-449, 451 (1992). Far from being a substitute for Article III injury, parens patriae actions raise an additional hurdle for a state litigant: the articulation of a “quasi-sovereign interest” “apart from the interests of particular private parties.” Alfred L. Snapp & Son, Inc. v. Puerto Rico ex rel. Barez, 458 U. S. 592, 607 (1982) (emphasis added) (cited ante, at 519). Just as an association suing on behalf of its members must show not only that it represents the members but that at least one satisfies Article III requirements, so too a State asserting quasi-sovereign interests as parens patriae must still show that its citizens satisfy Article III Focusing on Massachusetts’s interests as quasi-sovereign makes the required showing here harder, not easier. The Court, in effect, takes what has always been regarded as a necessary condition for parens patriae standing — a quasi-sovereign interest — and converts it into a sufficient showing for purposes of Article III.

*539What is more, the Court’s reasoning falters on its own terms. The Court asserts that Massachusetts is entitled to “special solicitude” due to its “quasi-sovereign interests,” ante, at 520, but then applies our Article III standing test to the asserted injury of the Commonwealth’s loss of coastal property. See ante, at 522 (concluding that Massachusetts “has alleged a particularized injury in its capacity as a landowner” (emphasis added)). In the context of parens patriae standing, however, we have characterized state ownership of land as a “nonsovereign interes[tj” because a State “is likely to have the same interests as other similarly situated proprietors.” Alfred L. Snapp & Son, supra, at 601.

On top of everything else, the Court overlooks the fact that our cases cast significant doubt on a State’s standing to assert a quasi-sovereign interest — as opposed to a direct injury — against the Federal Government. As a general rule, we have held that while a State might assert a quasi-sovereign right as parens patriae “for the protection of its citizens, it is no part of its duty or power to enforce their rights in respect of their relations with the Federal Government. In that field it is the United States, and not the State, which represents them.” Massachusetts v. Mellon, 262 U. S. 447, 485-486 (1923) (citation omitted); see also Alfred L. Snapp & Son, supra, at 610, n. 16.

All of this presumably explains why petitioners never cited Tennessee Copper in their briefs before this Court or the D. C. Circuit. It presumably explains why not one of the legion of amici supporting petitioners ever cited the case. And it presumably explains why not one of the three judges writing below ever cited the case either. Given that one purpose of the standing requirement is “ ‘to assure that concrete adverseness which sharpens the presentation of issues upon which the court so largely depends for illumination,’ ” ante, at 517 (quoting Baker v. Carr, 369 U. S. 186, 204 (1962)), it is ironic that the Court today adopts a new theory *540of Article III standing for States without the benefit of briefing or argument on the point.1

II

It is not at all clear how the Court’s “special solicitude” for Massachusetts plays out in the standing analysis, except as an implicit concession that petitioners cannot establish standing on traditional terms. But the status of Massachusetts as a State cannot compensate for petitioners’ failure to demonstrate injury in fact, causation, and redressability.

When the Court actually applies the three-part test, it focuses, as did the dissent below, see 415 F. 3d 50, 64 (CADC 2005) (opinion of Tatel, J.), on the Commonwealth’s asserted loss of coastal land as the injury in fact. If petitioners rely on loss of land as the Article III injury, however, they must ground the rest of the standing analysis in that specific injury. That alleged injury must be “concrete and particularized,” Defenders of Wildlife, 504 U. S., at 560, and “distinct and palpable,” Alien, 468 U. S., at 751 (internal quotation marks omitted). Central to this concept of “particularized” injury is the requirement that a plaintiff be affected in a “personal and individual way,” Defenders of Wildlife, 504 *541U. S., at 560, n. 1, and seek relief that “directly and tangibly benefits him” in a manner distinct from its impact on “the public at large,” id., at 573-574. Without “particularized injury, there can be no confidence of ‘a real need to exercise the power of judicial review’ or that relief can be framed ‘no broader than required by the precise facts to which the court’s ruling would be applied.’ ” Warth v. Seldin, 422 U. S. 490, 508 (1975) (quoting Schlesinger v. Reservists Comm. to Stop the War, 418 U. S. 208, 221-222 (1974)).

The very concept of global warming seems inconsistent with this particularization requirement. Global warming is a phenomenon “harmful to humanity at large,” 415 F. 3d, at 60 (Sentelle, J., dissenting in part and concurring in judgment), and the redress petitioners seek is focused no more on them than on the public generally — it is literally to change the atmosphere around the world.

If petitioners’ particularized injury is loss of coastal land, it is also that injury that must be “actual or imminent, not conjectural or hypothetical,” Defenders of Wildlife, supra, at 560 (internal quotation marks omitted), “real and immediate,” Los Angeles v. Lyons, 461 U. S. 95, 102 (1983) (internal quotation marks omitted), and “certainly impending,” Whitmore v. Arkansas, 495 U. S. 149, 158 (1990) (internal quotation marks omitted).

As to “actual” injury, the Court observes that “global sea levels rose somewhere between 10 and 20 centimeters over the 20th century as a result of global warming” and that “[t]hese rising seas have already begun to swallow Massachusetts’ coastal land.” Ante, at 522. But none of petitioners’ declarations supports that connection. One declaration states that “a rise in sea level due to climate change is occurring on the coast of Massachusetts, in the metropolitan Boston area,” but there is no elaboration. 2 Petitioners’ Standing Appendix in No. 03-1361, etc. (CADC), p. 196 (Stdg. App.). And the declarant goes on to identify a “significan[t]” wow-global-warming cause of Boston’s rising sea level: land *542subsidence. Id., at 197; see also id., at 216. Thus, aside from a single conclusory statement, there is nothing in petitioners’ 43 standing declarations and accompanying exhibits to support an inference of actual loss of Massachusetts coastal land from 20th-century global sea level increases. It is pure conjecture.

The Court’s attempts to identify “imminent” or “certainly impending” loss of Massachusetts coastal land fares no better. See ante, at 522-523. One of petitioners’ declarants predicts global warming will cause sea level to rise by 20 to 70 centimeters by the year 2100. Stdg. App. 216. Another uses a computer modeling program to map the Commonwealth’s coastal land and its current elevation, and calculates that the high-end estimate of sea level rise would result in the loss of significant state-owned coastal land. Id., at 179. But the computer modeling program has a conceded average error of about 30 centimeters and a maximum observed error of 70 centimeters. Id., at 177-178. As an initial matter, if it is possible that the model underrepresents the elevation of coastal land to an extent equal to or in excess of the projected sea level rise, it is difficult to put much stock in the predicted loss of land. But even placing that problem to the side, accepting a century-long time horizon and a series of compounded estimates renders requirements of imminence and immediacy utterly toothless. See Defenders of Wildlife, supra, at 565, n. 2 (while the concept of “ ‘imminence’ ” in standing doctrine is “somewhat elastic,” it can be “stretched beyond the breaking point”). “Allegations of possible future injury do not satisfy the requirements of Art. III. A threatened injury must be certainly impending to constitute injury in fact.” Whitmore, supra, at 158 (internal quotation marks omitted; emphasis added).

III

Petitioners’ reliance on Massachusetts’s loss of coastal land as their injury in fact for standing purposes creates insur*543mountable problems for them with respect to causation and redressability. To establish standing, petitioners must show a causal connection between that specific injury and the lack of new motor vehicle greenhouse gas emission standards, and that the promulgation of such standards would likely redress that injury. As is often the case, the questions of causation and redressability overlap. See Allen, 468 U. S., at 758, n. 19 (observing that the two requirements were “initially articulated by this Court as two facets of a single causation requirement” (internal quotation marks omitted)). And importantly, when a party is challenging the Government’s allegedly unlawful regulation, or lack of regulation, of a third party, satisfying the causation and redressability requirements becomes “substantially more difficult.” Defenders of Wildlife, 504 U. S., at 562 (internal quotation marks omitted); see also Warth, swpra, at 504-505.

Petitioners view the relationship between their injuries and EPA’s failure to promulgate new motor vehicle greenhouse gas emission standards as simple and direct: Domestic motor vehicles emit carbon dioxide and other greenhouse gases. Worldwide emissions of greenhouse gases contribute to global warming and therefore also to petitioners’ alleged injuries. Without the new vehicle standards, greenhouse gas emissions — and therefore global warming and its attendant harms — have been higher than they otherwise would have been; once EPA changes course, the trend will be reversed.

The Court ignores the complexities of global warming, and does so by now disregarding the “particularized” injury it relied on in step one, and using the dire nature of global warming itself as a bootstrap for finding causation and redressability. First, it is important to recognize the extent of the emissions at issue here. Because local greenhouse gas emissions disperse throughout the atmosphere and remain there for anywhere from 50 to 200 years, it is global emissions data that are relevant. See App. to Pet. for Cert. *544A-73. According to one of petitioners’ declarations, domestic motor vehicles contribute about 6 percent of global carbon dioxide emissions and 4 percent of global greenhouse gas emissions. Stdg. App. 232. The amount of global emissions at issue here is smaller still; § 202(a)(1) of the Clean Air Act covers only new motor vehicles and new motor vehicle engines, so petitioners’ desired emission standards might reduce only a fraction of 4 percent of global emissions.

This gets us only to the relevant greenhouse gas emissions; linking them to global warming and ultimately to petitioners’ alleged injuries next requires consideration of further complexities. As EPA explained in its denial of petitioners’ request for rulemaking,

“predicting future climate change necessarily involves a complex web of economic and physical factors including: our ability to predict future global anthropogenic emissions of [greenhouse gases] and aerosols; the fate of these emissions once they enter the atmosphere (e. g., what percentage are absorbed by vegetation or are taken up by the oceans); the impact of those emissions that remain in the atmosphere on the radiative properties of the atmosphere; changes in critically important climate feedbacks (e. g., changes in cloud cover and ocean circulation); changes in temperature characteristics (e. g., average temperatures, shifts in daytime and evening temperatures); changes in other climatic parameters (e. g., shifts in precipitation, storms); and ultimately the impact of such changes on human health and welfare (e. g., increases or decreases in agricultural productivity, human health impacts).” App. to Pet. for Cert. A-83 through A-84.

Petitioners are never able to trace their alleged injuries back through this complex web to the fractional amount of global emissions that might have been limited with EPA standards. In light of the bit-part domestic new motor vehi*545cle greenhouse gas emissions have played in what petitioners describe as a 150-year global phenomenon, and the myriad additional factors bearing on petitioners’ alleged injury — the loss of Massachusetts coastal land — the connection is far too speculative to establish causation.

IV

Redressability is even more problematic. To the tenuous link between petitioners’ alleged injury and the indeterminate fractional domestic emissions at issue here, add the fact that petitioners cannot meaningfully predict what will come of the 80 percent of global greenhouse gas emissions that originate outside the United States. As the Court acknowledges, “developing countries such as China and India are poised to increase greenhouse gas emissions substantially over the next century,” ante, at 525-526, so the domestic emissions at issue here may become an increasingly marginal portion of global emissions, and any decreases produced by petitioners’ desired standards are likely to be overwhelmed many times over by emissions increases elsewhere in the world.

Petitioners offer declarations attempting to address this uncertainty, contending that “[i]f the U. S. takes steps to reduce motor vehicle emissions, other countries are very likely to take similar actions regarding their own motor vehicles using technology developed in response.to the U. S. program.” Stdg. App. 220; see also id., at 311-312. In other words, do not worry that other countries will contribute far more to global warming than will U. S. automobile emissions; someone is bound to invent something, and places like the People’s Republic of China or India will surely require use of the new technology, regardless of cost. The Court previously has explained that when the existence of an element of standing “depends on the unfettered choices made by independent actors not before the courts and whose exercise of broad and legitimate discretion the courts cannot presume *546either to control or to predict,” a party must present facts supporting an assertion that the actor will proceed in such a manner. Defenders of Wildlife, 504 U. S., at 562 (quoting ASARCO Inc. v. Kadish, 490 U. S. 605, 615 (1989) (opinion of Kennedy, J.); internal quotation marks omitted). The declarations’ conclusory (not to say fanciful) statements do not even come close.

No matter, the Court reasons, because any decrease in domestic emissions will “slow the pace of global emissions increases, no matter what happens elsewhere.” Ante, at 526. Every little bit helps, so Massachusetts can sue over any little bit.

The Court’s sleight of hand is in failing to link up the different elements of the three-part standing test. What must be likely to be redressed is the particular injury in fact. The injury the Court looks to is the asserted loss of land. The Court contends that regulating domestic motor vehicle emissions will reduce carbon dioxide in the atmosphere, and therefore redress Massachusetts’s injury. But even if regulation does reduce emissions — to some indeterminate degree, given events elsewhere in the world — the Court never explains why that makes it likely that the injury in fact — the loss of land — will be redressed. Schoolchildren know that a kingdom might be lost “all for the want of a horseshoe nail,” but “likely” redressability is a different matter. The realities make it pure conjecture to suppose that EPA regulation of new automobile emissions will likely prevent the loss of Massachusetts coastal land.

V

Petitioners’ difficulty in demonstrating causation and redressability is not surprising given the evident mismatch between the source of their alleged injury — catastrophic global warming — and the narrow subject matter of the Clean Air Act provision at issue in this suit. The mismatch suggests *547that petitioners’ true goal for this litigation may be more symbolic than anything else. The constitutional role of the courts, however, is to decide concrete cases — not to serve as a convenient forum for policy debates. See Valley Forge Christian College v. Americans United for Separation of Church and State, Inc., 454 U. S. 464, 472 (1982) (“[Standing] tends to assure that the legal questions presented to the court will be resolved, not in the rarified atmosphere of a debating society, but in a concrete factual context conducive to a realistic appreciation of the consequences of judicial action”).

When dealing with legal doctrine phrased in terms of what is “fairly” traceable or “likely” to be redressed, it is perhaps not surprising that the matter is subject to some debate. But in considering how loosely or rigorously to define those adverbs, it is vital to keep in mind the purpose of the inquiry. The limitation of the judicial power to cases and controversies “is crucial in maintaining the tripartite allocation of power set forth in the Constitution.” DaimlerChrysler, 547 U. S., at 341 (internal quotation marks omitted). In my view, the Court today — addressing Article Ill’s “core component of standing,” Defenders of Wildlife, supra, at 560 — fails to take this limitation seriously.

To be fair, it is not the first time the Court has done so. Today’s decision recalls the previous high-water mark of diluted standing requirements, United States v. Students Challenging Regulatory Agency Procedures (SCRAP), 412 U. S. 669 (1973). SCRAP involved “[p]robably the most attenuated injury conferring Art. Ill standing” and “surely went to the very outer limit of the law” — until today. Whitmore, 495 U. S., at 158-159; see also Lujan v. National Wildlife Federation, 497 U. S. 871, 889 (1990) (SCRAP “has never since been emulated by this Court”). In SCRAP, the Court based an environmental group’s standing to challenge a railroad freight rate surcharge on the group’s allegation that *548increases in railroad rates would cause an increase in the use of nonrecyclable goods, resulting in the increased need for natural resources to produce such goods. According to the group, some of these resources might be taken from the Washington area, resulting in increased refuse that might find its way into area parks, harming the group’s members. 412 U. S., at 688.

Over time, SCRAP became emblematic not of the looseness of Article III standing requirements, but of how utterly manipulable they are if not taken seriously as a matter of judicial self-restraint. SCRAP made standing seem a lawyer’s game, rather than a fundamental limitation ensuring that courts function as courts and not intrude on the politically accountable branches. Today’s decision is SCRAP for a new generation.2

Perhaps the Court recognizes as much. How else to explain its need to devise a new doctrine of state standing to support its result? The good news is that the Court's “special solicitude” for Massachusetts limits the future applicability of the diluted standing requirements applied in this case. The bad news is that the Court’s self-professed relaxation of those Article III requirements has caused us to transgress “the proper — and properly limited — role of the courts in a *549democratic society.” Allen, 468 U. S., at 750 (internal quotation marks omitted).

I respectfully dissent.

1

The Court seems to think we do not recognize that Tennessee Copper is a case about parens patriae standing, ante, at 520-521, n. 17, but we have no doubt about that. The point is that nothing in our cases (or Hart & Wechsler) suggests that the prudential requirements for parens patriae standing, see Republic of Venezuela v. Philip Morris Inc., 287 F. 3d 192,199, n. (CADC 2002) (observing that “parens patriae is merely a species of prudential standing” (internal quotation marks omitted)), can somehow substitute for, or alter the content of, the “irreducible constitutional minimum” requirements of injury in fact, causation, and redressability under Article III. Lujan v. Defenders of Wildlife, 504 U. S. 555, 560 (1992).

Georgia v. Pennsylvania R. Co., 324 U. S. 439 (1945), is not to the contrary. As the caption makes clear enough, the fact that a State may assert rights under a federal statute as parens patriae in no way refutes our clear ruling that “[a] State does not have standing as parens patriae to bring an action against the Federal Government.” Alfred L. Snapp & Son, Inc. v. Puerto Rico ex rel. Barez, 458 U. S. 592, 610, n. 16 (1982).

2

The difficulty with SCRAP, and the reason it has not been followed, is not the portion cited by the Court. See ante, at 526-527, n. 24. Rather, it is the attenuated nature of the injury there, and here, that is so troubling. Even in SCRAP, the Court noted that what was required was “something more than an ingenious academic exercise in the conceivable,” 412 U. S., at 688, and we have since understood the allegation there to have been “that the string of occurrences alleged would happen immediately,” Whitmore v. Arkansas, 495 U. S. 149, 159 (1990) (emphasis added). That is hardly the case here.

The Court says it is “quite wrong” to compare petitioners’ challenging “EPA’s parsimonious construction of the Clean Air Act to a mere ‘lawyer’s game.’” Ante, at 527, n. 24. Of course it is not the legal challenge that is merely “an ingenious academic exercise in the conceivable,” SCRAP, supra, at 688, but the assertions made in support of standing.

Justice Scalia,

with whom The Chief Justice, Justice Thomas, and Justice Alito join, dissenting.

I join The Chief Justice’s opinion in full, and would hold that this Court has no jurisdiction to decide this case because petitioners lack standing. The Court having decided otherwise, it is appropriate for me to note my dissent on the merits.

I

A

The provision of law at the heart of this case is § 202(a)(1) of the Clean Air Act (CAA or Act), which provides that the Administrator of the Environmental Protection Agency (EPA) “shall by regulation prescribe... standards applicable to the emission of any air pollutant from any class or classes of new motor vehicles or new motor vehicle engines, which in his judgment cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare.” 42 U. S. C. § 7521(a)(1) (emphasis added). As the Court recognizes, the statute “conditionfs] the exercise of EPA’s authority on its formation of a ‘judgment.’” Ante, at 532. There is no dispute that the Administrator has made no such judgment in this case. See ante, at 534 (“We need not and do not reach the question whether on remand EPA must make an endangerment finding”); 68 Fed. Reg. 52929 (2003) (“[N]o Administrator has made a finding under any of the CAA’s regulatory provisions that C02 meets the applicable statutory criteria for regulation”).

The question thus arises: Does anything require the Administrator to make a “judgment” whenever a petition for rulemaking is filed? Without citation of the statute or any other authority, the Court says yes. Why is that so? When *550Congress wishes to make private action force an agency’s hand, it knows how to do so. See, e. g., Brock v. Pierce County, 476 U. S. 253, 254-255 (1986) (discussing the Comprehensive Employment and Training Act (CETA), 92 Stat. 1926, 29 U.S.C. § 816(b) (1976 ed., Supp. V), which “provided] that the Secretary of Labor ‘shall’ issue a final determination as to the misuse of CETA funds by a grant recipient within 120 days after receiving a complaint alleging such misuse”). Where does the CAA say that the EPA Administrator is required to come to a decision on this question whenever a rulemaking petition is filed? The Court points to no such provision because none exists.

Instead, the Court invents a multiple-choice question that the EPA Administrator must answer when a petition for rulemaking is filed. The Administrator must exercise his judgment in one of three ways: (a) by concluding that the pollutant does cause, or contribute to, air pollution that endangers public welfare (in which case EPA is required to regulate); (b) by concluding that the pollutant does not cause, or contribute to, air pollution that endangers public welfare (in which case EPA is not required to regulate); or (c) by “provid[ing] some reasonable explanation as to why it cannot or will not exercise its discretion to determine whether” greenhouse gases endanger public welfare, ante, at 533 (in which case EPA is not required to regulate).

I am willing to assume, for the sake of argument, that the Administrator’s discretion in this regard is not entirely unbounded — that if he has no reasonable basis for deferring judgment he must grasp the nettle at once. The Court, however, with no basis in text or precedent, rejects all of EPA’s stated “policy judgments” as not “amount[ing] to a reasoned justification,” ante, at 533-534, effectively narrowing the universe of potential reasonable bases to a single one: Judgment can be delayed only if the Administrator concludes that “the scientific uncertainty is [too] profound.” Ante, at 534. The Administrator is precluded from concluding for other reasons “that it would ... be better not to regulate *551at this time.” Ibid.1 Such other reasons — perfectly valid reasons — were set forth in the Agency’s statement.

“We do not believe ... that it would be either effective or appropriate for EPA to establish [greenhouse gas] standards for motor vehicles at this time. As described in detail below, the President has laid out a comprehensive approach to climate ehange that calls for near-term voluntary actions and incentives along with programs aimed at reducing scientific uncertainties and encouraging technological development so that the government may effectively and efficiently address the climate change issue over the long term.
“[Establishing [greenhouse gas] emission standards for U. S. motor vehicles at this time would . . . result in an inefficient, piecemeal approach to addressing the climate change issue. The U. S. motor vehicle fleet is one of many sources of [greenhouse gas] emissions both here and abroad, and different [greenhouse gas] emission sources face different technological and financial challenges in reducing emissions. A sensible regulatory scheme would require that all significant sources and sinks of [greenhouse gas] emissions be considered in deciding how best to achieve any needed emission reductions.
“Unilateral EPA regulation of motor vehicle [greenhouse gas] emissions could also weaken U. S. efforts to persuade developing countries to reduce the [greenhouse gas] intensity of their economies. Considering the large populations and growing economies of some developing countries, increases in their [greenhouse gas] emissions could quickly overwhelm the effects of [green*552house gas] reduction measures in developed countries. Any potential benefit of EPA regulation could be lost to the extent other nations decided to let their emissions significantly increase in view of U. S. emissions reductions. Unavoidably, climate change raises important foreign policy issues, and it is the President’s prerogative to address them.” 68 Fed. Reg. 52929-52931 (footnote omitted).

The Court dismisses this analysis as “resting] on reasoning divorced from the statutory text.” Ante, at 532. “While the statute does condition the exercise of EPA’s authority on its formation of a ‘judgment,’. . . that judgment must relate to whether an air pollutant ‘cause[s], or contribute[s] to, air pollution which may reasonably be anticipated to endanger public health or welfare.’” Ante, at 532-533. True but irrelevant. When the Administrator makes a judgment whether to regulate greenhouse gases, that judgment must relate to whether they are air pollutants that “cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare.” 42 U. S. C. § 7521(a)(1). But the statute says nothing at all about the reasons for which the Administrator may defer making a judgment — the permissible reasons for deciding not to grapple with the issue at the present time. Thus, the various “policy” rationales, ante, at 533, that the Court criticizes are not “divorced from the statutory text,” ante, at 532, except in the sense that the statutory text is silent, as texts are often silent about permissible reasons for the exercise of agency discretion. The reasons EPA gave are surely considerations executive agencies regularly take into account (and ought to take into account) when deciding whether to consider entering a new field: the impact such entry would have on other Executive Branch programs and on foreign policy. There is no basis in law for the Court’s imposed limitation.

EPA’s interpretation of the discretion conferred by the statutory reference to “its judgment” is not only reasonable, *553it is the most natural reading of the text. The Court nowhere explains why this interpretation is incorrect, let alone why it is not entitled to deference under Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837 (1984). As the Administrator acted within the law in declining to make a “judgment” for the policy reasons above set forth, I would uphold the decision to deny the rulemaking petition on that ground alone.

B

Even on the Court’s own terms, however, the same conclusion follows. As mentioned above, the Court gives EPA the option of determining that the science is too uncertain to allow it to form a “judgment” as to whether greenhouse gases endanger public welfare. Attached to this option (on what basis is unclear) is an essay requirement: “If,” the Court says, “the scientific uncertainty is so profound that it precludes EPA from making a reasoned judgment as to whether greenhouse gases contribute to global warming, EPA must say so.” Ante, at 534. But EPA has said precisely that — and at great length, based on information contained in a 2001 report by the National Research Council (NRC) entitled Climate Change Science: An Analysis of Some Key Questions:

“As the NRC noted in its report, concentrations of [greenhouse gases (GHGs)] are increasing in the atmosphere as a result of human activities (pp. 9-12). It also noted that ‘[a] diverse array of evidence points to a warming of global surface air temperatures’ (p. 16). The report goes on to state, however, that ‘[b]ecause of the large and still uncertain level of natural variability inherent in the climate record and the uncertainties in the time histories of the various forcing agents (and particularly aerosols), a [causal] linkage between the buildup of [GHGs] in the atmosphere and the observed climate changes during the 20th century, cannot be unequivocally established. The fact that the *554magnitude of the observed warming is large in comparison to natural variability as simulated in climate models is suggestive of such a linkage, but it does not constitute proof of one because the model simulations could be deficient in natural variability on the decadal to century time scale’ (p. 17).
“The NRC also observed that ‘there is considerable uncertainty in current understanding of how the climate system varies naturally and reacts to emissions of [GHGs] and aerosols’ (p. 1). As a result of that uncertainty, the NRC cautioned that ‘current estimate of the magnitude of future warming should be regarded as tentative and subject to future adjustments (either upward or downward).’ Id. It further advised that ‘[Reducing the wide range of uncertainty inherent in current model predictions of global climate change will require major advances in understanding and modeling of both (1) the factors that determine atmospheric concentrations of [GHGs] and aerosols and (2) the so-called “feedbacks” that determine the sensitivity of the climate system to a prescribed increase in [GHGs].’ Id.
“The science of climate change is extraordinarily complex and still evolving. Although there have been substantial advances in climate change science, there continue to be important uncertainties in our understanding of the factors that may affect future climate change and how it should be addressed. As the NRC explained, predicting future climate change necessarily involves a complex web of economic and physical factors including: Our ability to predict future global anthropogenic emissions of GHGs and aerosols; the fate of these emissions once they enter the atmosphere (e. g., what percentage are absorbed by vegetation or are taken up by the oceans); the impact of those emissions that remain in the atmosphere on the radiative properties of the atmos*555phere; changes in critically important climate feedbacks (e. g., changes in cloud cover and ocean circulation); changes in temperature characteristics (e.g., average temperatures, shifts in daytime and evening temperatures); changes in other climatic parameters (e. g., shifts in precipitation, storms); and ultimately the impact of such changes on human health and welfare (e.g., increases or decreases in agricultural productivity, human health impacts). The NRC noted, in particular, that ‘[t]he understanding of the relationships between weather/climate and human health is in its infancy and therefore the health consequences of climate change are poorly understood’ (p. 20). Substantial scientific uncertainties limit our ability to assess each of these factors and to separate out those changes resulting from natural variability from those that are directly the result of increases in anthropogenic GHGs.
“Reducing the wide range of uncertainty inherent in current model predictions will require major advances in understanding and modeling of the factors that determine atmospheric concentrations of [GHGs] and aerosols, and the processes that determine the sensitivity of the climate system.” 68 Fed. Reg. 52930.

I simply cannot conceive of what else the Court would like EPA to say.

II

A

Even before reaching its discussion of the word “judgment,” the Court makes another significant error when it concludes that “§ 202(a)(1) of the Clean Air Act authorizes EPA to regulate greenhouse gas emissions from new motor vehicles in the event that it forms a ‘judgment’ that such emissions contribute to climate change.” Ante, at 528 (emphasis added). For such authorization, the Court relies on *556what it calls “the Clean Air Act’s capacious definition of ‘air pollutant.’” Ante, at 532.

“Air pollutant” is defined by the Act as “any air pollution agent or combination of such agents, including any physical, chemical, . . . substance or matter which is emitted into or otherwise enters the ambient air.” 42 U. S. C. § 7602(g). The Court is correct that “[c]arbon dioxide, methane, nitrous oxide, and hydrofluorocarbons,” ante, at 529, fit within the second half of that definition: They are “physical, chemical,... substance[s] or matter which [are] emitted into or otherwise ente[r] the ambient air.” But the Court mistakenly believes this to be the end of the analysis. In order to be an “air pollutant” under the Act’s definition, the “substance or matter [being] emitted into . . . the ambient air” must also meet the first half of the definition — namely, it must be an “air pollution agent or combination of such agents.” The Court simply pretends this half of the definition does not exist.

The Court’s analysis faithfully follows the argument advanced by petitioners, which focuses on the word “including” in the statutory definition of “air pollutant.” See Brief for Petitioners 13-14. As that argument goes, anything that follows the word “including” must necessarily be a subset of whatever precedes it. Thus, if greenhouse gases qualify under the phrase following the word “including,” they must qualify under the phrase preceding it. Since greenhouse gases come within the capacious phrase “any physical, chemical, . .. substance or matter which is emitted into or otherwise enters the ambient air,” they must also be “air pollution agent[s] or combination^] of such agents,” and therefore meet the definition of “air pollutant[s].”

That is certainly one possible interpretation of the statutory definition. The word “including” can indeed indicate that what follows will be an “illustrative” sampling of the general category that precedes the word. Federal Land Bank of St Paul v. Bismarck Lumber Co., 314 U. S. 95, 100 *557(1941). Often, however, the examples standing alone are broader than the general category, and must be viewed as limited in light of that category. The Government provides a helpful (and unanswered) example: “The phrase ‘any American automobile, including any truck or minivan,’ would not naturally be construed to encompass a foreign-manufactured [truck or] minivan.” Brief for Federal Respondent 34. The general principle enunciated — that the speaker is talking about American automobiles — carries forward to the illustrative examples (trucks and minivans), and limits them accordingly, even though in isolation they are broader. Congress often uses the word “including” in this manner. In 28 U. S. C. § 1782(a), for example, it refers to “a proceeding in a foreign or international tribunal, including criminal investigations conducted before formal accusation.” Certainly this provision would not encompass criminal investigations underway in a domestic tribunal. See also, e. g., 2 U. S. C. § 54(a) (“The Clerk of the House of Representatives shall, at the request of a Member of the House of Representatives, furnish to the Member, for official use only, one set of a privately published annotated version of the United States Code, including supplements and pocket parts”); 22 U. S. C. § 2304(b)(1) (“the relevant findings of appropriate international organizations, including nongovernmental organizations”).

In short, the word “including” does not require the Court’s (or the petitioners’) result. It is perfectly reasonable to view the definition of “air pollutant” in its entirety: An air pollutant can be “any physical, chemical, . . . substance or matter which is emitted into or otherwise enters the ambient air,” but only if it retains the general characteristic of being an “air pollution agent or combination of such agents.” This is precisely the conclusion EPA reached: “[A] substance does not meet the CAA definition of ‘air pollutant’ simply because it is a ‘physical, chemical, . . . substance or matter which is emitted into or otherwise enters the ambient air.’ It must *558also be an ‘air pollution agent.’ ” 68 Fed. Reg. 52929, n. 3. See also id., at 52928 (“The root of the definition indicates that for a substance to be an ‘air pollutant,’ it must be an ‘agent’ of ‘air pollution’ ”). Once again, in the face of textual ambiguity, the Court’s application of Chevron deference to EPA’s interpretation of the word “including” is nowhere to be found.2 Evidently, the Court defers only to those reasonable interpretations that it favors.

B

Using (as we ought to) EPA’s interpretation of the definition of “air pollutant,” we must next determine whether greenhouse gases are “agent[s]” of “air pollution.” If so, the statute would authorize regulation; if not, EPA would lack authority.

Unlike “air pollutants,” the term “air pollution” is not itself defined by the CAA; thus, once again we must accept EPA’s interpretation of that ambiguous term, provided its interpretation is a “permissible construction of the statute.” Chevron, 467 U. S., at 843. In this case, the petition for rule-making asked EPA for “regulation of [greenhouse gas] emissions from motor vehicles to reduce the risk of global climate change.” 68 Fed. Reg. 52925. Thus, in deciding whether it had authority to regulate, EPA had to determine whether the concentration of greenhouse gases assertedly responsible for “global climate change” qualifies as “air pollution.” EPA began with the commonsense observation that the “[problems associated with atmospheric concentrations *559of C02,” id., at 52927, bear little resemblance to what would naturally be termed “air pollution”:

“EPA’s prior use of the CAA’s general regulatory provisions provides an important context. Since the inception of the Act, EPA has used these provisions to address air pollution problems that occur primarily at ground level or near the surface of the earth. For example, national ambient air quality standards (NAAQS) established under CAA section 109 address concentrations of substances in the ambient air and the related public health and welfare problems. This has meant setting NAAQS for concentrations of ozone, carbon monoxide, particulate matter and other substances in the air near the surface of the earth, not higher in the atmosphere. . . . C02, by contrast, is fairly consistent in concentration throughout the world’s atmosphere up to approximately the lower stratosphere.” Id., at 52926-52927.

In other words, regulating the buildup of C02 and other greenhouse gases in the upper reaches of the atmosphere, which is alleged to be causing global climate change, is not akin to regulating the concentration of some substance that is polluting the air.

We need look no further than the dictionary for confirmation that this interpretation of “air pollution” is eminently reasonable. The definition of “pollute,” of course, is “[t]o make or render impure or unclean.” Webster’s New International Dictionary 1910 (2d ed. 1949). And the first three definitions of “air” are as follows: (1) “[t]he invisible, odorless, and tasteless mixture of gases which surrounds the earth”; (2) “[t]he body of the earth’s atmosphere; esp., the part of it near the earth, as distinguished from the upper rarefied part”; (3) “[a] portion of air or of the air considered with respect to physical characteristics or as affecting the *560senses.” Id., at 54. EPA’s conception of “air pollution”— focusing on impurities in the “ambient air” “at ground level or near the surface of the earth” — is perfectly consistent with the natural meaning of that term.

In the end, EPA concluded that since “CAA authorization to regulate is generally based on a finding that an air pollutant causes or contributes to air pollution,” 68 Fed. Reg. 52928, the concentrations of C02 and other greenhouse gases allegedly affecting the global climate are beyond the scope of CAA’s authorization to regulate. “[T]he term ‘air pollution’ as used in the regulatory provisions cannot be interpreted to encompass global climate change.” Ibid. Once again, the Court utterly fails to explain why this interpretation is incorrect, let alone so unreasonable as to be unworthy of Chevron deference.

* *

The Court’s alarm over global warming may or may not be justified, but it ought not distort the outcome of this litigation. This is a straightforward administrative-law case, in which Congress has passed a malleable statute giving broad discretion, not to us but to an executive agency. No matter how important the underlying policy issues at stake, this Court has no business substituting its own desired outcome for the reasoned judgment of the responsible agency.

1

The Court’s way of putting it is, of course, not quite accurate. The issue is whether it would be better to defer the decision about whether to exercise judgment. This has the effect of deferring regulation but is quite a different determination.

2

Not only is EPA’s interpretation reasonable, it is far more plausible than the Court’s alternative. As the Court correctly points out, “all airborne compounds of whatever stripe,” ante, at 529, would qualify as “physical, chemical,... substance[s] or matter which [are] emitted into or otherwise ente[r] the ambient air,” 42 U. S. C. § 7602(g). It follows that everything airborne, from Frisbees to flatulence, qualifies as an “air pollutant.” This reading of the statute defies common sense.

2.3.2 Transparency 2.3.2 Transparency

2.3.2.1 Public information; agency rules, opinions, orders, records, and proceedings 2.3.2.1 Public information; agency rules, opinions, orders, records, and proceedings

(a) Each agency shall make available to the public information as follows:

(1) Each agency shall separately state and currently publish in the Federal Register for the guidance of the public—

(A) descriptions of its central and field organization and the established places at which, the employees (and in the case of a uniformed service, the members) from whom, and the methods whereby, the public may obtain information, make submittals or requests, or obtain decisions;

(B) statements of the general course and method by which its functions are channeled and determined, including the nature and requirements of all formal and informal procedures available;

(C) rules of procedure, descriptions of forms available or the places at which forms may be obtained, and instructions as to the scope and contents of all papers, reports, or examinations;

(D) substantive rules of general applicability adopted as authorized by law, and statements of general policy or interpretations of general applicability formulated and adopted by the agency; and

(E) each amendment, revision, or repeal of the foregoing.


Except to the extent that a person has actual and timely notice of the terms thereof, a person may not in any manner be required to resort to, or be adversely affected by, a matter required to be published in the Federal Register and not so published. For the purpose of this paragraph, matter reasonably available to the class of persons affected thereby is deemed published in the Federal Register when incorporated by reference therein with the approval of the Director of the Federal Register.

(2) Each agency, in accordance with published rules, shall make available for public inspection in an electronic format—

(A) final opinions, including concurring and dissenting opinions, as well as orders, made in the adjudication of cases;

(B) those statements of policy and interpretations which have been adopted by the agency and are not published in the Federal Register;

(C) administrative staff manuals and instructions to staff that affect a member of the public;

(D) copies of all records, regardless of form or format—

(i) that have been released to any person under paragraph (3); and

(ii)(I) that because of the nature of their subject matter, the agency determines have become or are likely to become the subject of subsequent requests for substantially the same records; or

(II) that have been requested 3 or more times; and


(E) a general index of the records referred to under subparagraph (D);


unless the materials are promptly published and copies offered for sale. For records created on or after November 1, 1996, within one year after such date, each agency shall make such records available, including by computer telecommunications or, if computer telecommunications means have not been established by the agency, by other electronic means. To the extent required to prevent a clearly unwarranted invasion of personal privacy, an agency may delete identifying details when it makes available or publishes an opinion, statement of policy, interpretation, staff manual, instruction, or copies of records referred to in subparagraph (D). However, in each case the justification for the deletion shall be explained fully in writing, and the extent of such deletion shall be indicated on the portion of the record which is made available or published, unless including that indication would harm an interest protected by the exemption in subsection (b) under which the deletion is made. If technically feasible, the extent of the deletion shall be indicated at the place in the record where the deletion was made. Each agency shall also maintain and make available for public inspection in an electronic format current indexes providing identifying information for the public as to any matter issued, adopted, or promulgated after July 4, 1967, and required by this paragraph to be made available or published. Each agency shall promptly publish, quarterly or more frequently, and distribute (by sale or otherwise) copies of each index or supplements thereto unless it determines by order published in the Federal Register that the publication would be unnecessary and impracticable, in which case the agency shall nonetheless provide copies of such index on request at a cost not to exceed the direct cost of duplication. Each agency shall make the index referred to in subparagraph (E) available by computer telecommunications by December 31, 1999. A final order, opinion, statement of policy, interpretation, or staff manual or instruction that affects a member of the public may be relied on, used, or cited as precedent by an agency against a party other than an agency only if—

(i) it has been indexed and either made available or published as provided by this paragraph; or

(ii) the party has actual and timely notice of the terms thereof.


(3)(A) Except with respect to the records made available under paragraphs (1) and (2) of this subsection, and except as provided in subparagraph (E), each agency, upon any request for records which (i) reasonably describes such records and (ii) is made in accordance with published rules stating the time, place, fees (if any), and procedures to be followed, shall make the records promptly available to any person.

(B) In making any record available to a person under this paragraph, an agency shall provide the record in any form or format requested by the person if the record is readily reproducible by the agency in that form or format. Each agency shall make reasonable efforts to maintain its records in forms or formats that are reproducible for purposes of this section.

(C) In responding under this paragraph to a request for records, an agency shall make reasonable efforts to search for the records in electronic form or format, except when such efforts would significantly interfere with the operation of the agency's automated information system.

(D) For purposes of this paragraph, the term "search" means to review, manually or by automated means, agency records for the purpose of locating those records which are responsive to a request.

(E) An agency, or part of an agency, that is an element of the intelligence community (as that term is defined in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4))) 1 shall not make any record available under this paragraph to—

(i) any government entity, other than a State, territory, commonwealth, or district of the United States, or any subdivision thereof; or

(ii) a representative of a government entity described in clause (i).


(4)(A)(i) In order to carry out the provisions of this section, each agency shall promulgate regulations, pursuant to notice and receipt of public comment, specifying the schedule of fees applicable to the processing of requests under this section and establishing procedures and guidelines for determining when such fees should be waived or reduced. Such schedule shall conform to the guidelines which shall be promulgated, pursuant to notice and receipt of public comment, by the Director of the Office of Management and Budget and which shall provide for a uniform schedule of fees for all agencies.

(ii) Such agency regulations shall provide that—

(I) fees shall be limited to reasonable standard charges for document search, duplication, and review, when records are requested for commercial use;

(II) fees shall be limited to reasonable standard charges for document duplication when records are not sought for commercial use and the request is made by an educational or noncommercial scientific institution, whose purpose is scholarly or scientific research; or a representative of the news media; and

(III) for any request not described in (I) or (II), fees shall be limited to reasonable standard charges for document search and duplication.


In this clause, the term "a representative of the news media" means any person or entity that gathers information of potential interest to a segment of the public, uses its editorial skills to turn the raw materials into a distinct work, and distributes that work to an audience. In this clause, the term "news" means information that is about current events or that would be of current interest to the public. Examples of news-media entities are television or radio stations broadcasting to the public at large and publishers of periodicals (but only if such entities qualify as disseminators of "news") who make their products available for purchase by or subscription by or free distribution to the general public. These examples are not all-inclusive. Moreover, as methods of news delivery evolve (for example, the adoption of the electronic dissemination of newspapers through telecommunications services), such alternative media shall be considered to be news-media entities. A freelance journalist shall be regarded as working for a news-media entity if the journalist can demonstrate a solid basis for expecting publication through that entity, whether or not the journalist is actually employed by the entity. A publication contract would present a solid basis for such an expectation; the Government may also consider the past publication record of the requester in making such a determination.

(iii) Documents shall be furnished without any charge or at a charge reduced below the fees established under clause (ii) if disclosure of the information is in the public interest because it is likely to contribute significantly to public understanding of the operations or activities of the government and is not primarily in the commercial interest of the requester.

(iv) Fee schedules shall provide for the recovery of only the direct costs of search, duplication, or review. Review costs shall include only the direct costs incurred during the initial examination of a document for the purposes of determining whether the documents must be disclosed under this section and for the purposes of withholding any portions exempt from disclosure under this section. Review costs may not include any costs incurred in resolving issues of law or policy that may be raised in the course of processing a request under this section. No fee may be charged by any agency under this section—

(I) if the costs of routine collection and processing of the fee are likely to equal or exceed the amount of the fee; or

(II) for any request described in clause (ii) (II) or (III) of this subparagraph for the first two hours of search time or for the first one hundred pages of duplication.


(v) No agency may require advance payment of any fee unless the requester has previously failed to pay fees in a timely fashion, or the agency has determined that the fee will exceed $250.

(vi) Nothing in this subparagraph shall supersede fees chargeable under a statute specifically providing for setting the level of fees for particular types of records.

(vii) In any action by a requester regarding the waiver of fees under this section, the court shall determine the matter de novo: Provided, That the court's review of the matter shall be limited to the record before the agency.

(viii)(I) Except as provided in subclause (II), an agency shall not assess any search fees (or in the case of a requester described under clause (ii)(II) of this subparagraph, duplication fees) under this subparagraph if the agency has failed to comply with any time limit under paragraph (6).

(II)(aa) If an agency has determined that unusual circumstances apply (as the term is defined in paragraph (6)(B)) and the agency provided a timely written notice to the requester in accordance with paragraph (6)(B), a failure described in subclause (I) is excused for an additional 10 days. If the agency fails to comply with the extended time limit, the agency may not assess any search fees (or in the case of a requester described under clause (ii)(II) of this subparagraph, duplication fees).

(bb) If an agency has determined that unusual circumstances apply and more than 5,000 pages are necessary to respond to the request, an agency may charge search fees (or in the case of a requester described under clause (ii)(II) of this subparagraph, duplication fees) if the agency has provided a timely written notice to the requester in accordance with paragraph (6)(B) and the agency has discussed with the requester via written mail, electronic mail, or telephone (or made not less than 3 good-faith attempts to do so) how the requester could effectively limit the scope of the request in accordance with paragraph (6)(B)(ii).

(cc) If a court has determined that exceptional circumstances exist (as that term is defined in paragraph (6)(C)), a failure described in subclause (I) shall be excused for the length of time provided by the court order.

(B) On complaint, the district court of the United States in the district in which the complainant resides, or has his principal place of business, or in which the agency records are situated, or in the District of Columbia, has jurisdiction to enjoin the agency from withholding agency records and to order the production of any agency records improperly withheld from the complainant. In such a case the court shall determine the matter de novo, and may examine the contents of such agency records in camera to determine whether such records or any part thereof shall be withheld under any of the exemptions set forth in subsection (b) of this section, and the burden is on the agency to sustain its action. In addition to any other matters to which a court accords substantial weight, a court shall accord substantial weight to an affidavit of an agency concerning the agency's determination as to technical feasibility under paragraph (2)(C) and subsection (b) and reproducibility under paragraph (3)(B).

(C) Notwithstanding any other provision of law, the defendant shall serve an answer or otherwise plead to any complaint made under this subsection within thirty days after service upon the defendant of the pleading in which such complaint is made, unless the court otherwise directs for good cause shown.

[(D) Repealed. Pub. L. 98–620, title IV, §402(2), Nov. 8, 1984, 98 Stat. 3357.]

(E)(i) The court may assess against the United States reasonable attorney fees and other litigation costs reasonably incurred in any case under this section in which the complainant has substantially prevailed.

(ii) For purposes of this subparagraph, a complainant has substantially prevailed if the complainant has obtained relief through either—

(I) a judicial order, or an enforceable written agreement or consent decree; or

(II) a voluntary or unilateral change in position by the agency, if the complainant's claim is not insubstantial.


(F)(i) Whenever the court orders the production of any agency records improperly withheld from the complainant and assesses against the United States reasonable attorney fees and other litigation costs, and the court additionally issues a written finding that the circumstances surrounding the withholding raise questions whether agency personnel acted arbitrarily or capriciously with respect to the withholding, the Special Counsel shall promptly initiate a proceeding to determine whether disciplinary action is warranted against the officer or employee who was primarily responsible for the withholding. The Special Counsel, after investigation and consideration of the evidence submitted, shall submit his findings and recommendations to the administrative authority of the agency concerned and shall send copies of the findings and recommendations to the officer or employee or his representative. The administrative authority shall take the corrective action that the Special Counsel recommends.

(ii) The Attorney General shall—

(I) notify the Special Counsel of each civil action described under the first sentence of clause (i); and

(II) annually submit a report to Congress on the number of such civil actions in the preceding year.


(iii) The Special Counsel shall annually submit a report to Congress on the actions taken by the Special Counsel under clause (i).

(G) In the event of noncompliance with the order of the court, the district court may punish for contempt the responsible employee, and in the case of a uniformed service, the responsible member.

(5) Each agency having more than one member shall maintain and make available for public inspection a record of the final votes of each member in every agency proceeding.

(6)(A) Each agency, upon any request for records made under paragraph (1), (2), or (3) of this subsection, shall—

(i) determine within 20 days (excepting Saturdays, Sundays, and legal public holidays) after the receipt of any such request whether to comply with such request and shall immediately notify the person making such request of—

(I) such determination and the reasons therefor;

(II) the right of such person to seek assistance from the FOIA Public Liaison of the agency; and

(III) in the case of an adverse determination—

(aa) the right of such person to appeal to the head of the agency, within a period determined by the head of the agency that is not less than 90 days after the date of such adverse determination; and

(bb) the right of such person to seek dispute resolution services from the FOIA Public Liaison of the agency or the Office of Government Information Services; and


(ii) make a determination with respect to any appeal within twenty days (excepting Saturdays, Sundays, and legal public holidays) after the receipt of such appeal. If on appeal the denial of the request for records is in whole or in part upheld, the agency shall notify the person making such request of the provisions for judicial review of that determination under paragraph (4) of this subsection.


The 20-day period under clause (i) shall commence on the date on which the request is first received by the appropriate component of the agency, but in any event not later than ten days after the request is first received by any component of the agency that is designated in the agency's regulations under this section to receive requests under this section. The 20-day period shall not be tolled by the agency except—

(I) that the agency may make one request to the requester for information and toll the 20-day period while it is awaiting such information that it has reasonably requested from the requester under this section; or

(II) if necessary to clarify with the requester issues regarding fee assessment. In either case, the agency's receipt of the requester's response to the agency's request for information or clarification ends the tolling period.


(B)(i) In unusual circumstances as specified in this subparagraph, the time limits prescribed in either clause (i) or clause (ii) of subparagraph (A) may be extended by written notice to the person making such request setting forth the unusual circumstances for such extension and the date on which a determination is expected to be dispatched. No such notice shall specify a date that would result in an extension for more than ten working days, except as provided in clause (ii) of this subparagraph.

(ii) With respect to a request for which a written notice under clause (i) extends the time limits prescribed under clause (i) of subparagraph (A), the agency shall notify the person making the request if the request cannot be processed within the time limit specified in that clause and shall provide the person an opportunity to limit the scope of the request so that it may be processed within that time limit or an opportunity to arrange with the agency an alternative time frame for processing the request or a modified request. To aid the requester, each agency shall make available its FOIA Public Liaison, who shall assist in the resolution of any disputes between the requester and the agency, and notify the requester of the right of the requester to seek dispute resolution services from the Office of Government Information Services. Refusal by the person to reasonably modify the request or arrange such an alternative time frame shall be considered as a factor in determining whether exceptional circumstances exist for purposes of subparagraph (C).

(iii) As used in this subparagraph, "unusual circumstances" means, but only to the extent reasonably necessary to the proper processing of the particular requests—

(I) the need to search for and collect the requested records from field facilities or other establishments that are separate from the office processing the request;

(II) the need to search for, collect, and appropriately examine a voluminous amount of separate and distinct records which are demanded in a single request; or

(III) the need for consultation, which shall be conducted with all practicable speed, with another agency having a substantial interest in the determination of the request or among two or more components of the agency having substantial subject-matter interest therein.


(iv) Each agency may promulgate regulations, pursuant to notice and receipt of public comment, providing for the aggregation of certain requests by the same requestor, or by a group of requestors acting in concert, if the agency reasonably believes that such requests actually constitute a single request, which would otherwise satisfy the unusual circumstances specified in this subparagraph, and the requests involve clearly related matters. Multiple requests involving unrelated matters shall not be aggregated.

(C)(i) Any person making a request to any agency for records under paragraph (1), (2), or (3) of this subsection shall be deemed to have exhausted his administrative remedies with respect to such request if the agency fails to comply with the applicable time limit provisions of this paragraph. If the Government can show exceptional circumstances exist and that the agency is exercising due diligence in responding to the request, the court may retain jurisdiction and allow the agency additional time to complete its review of the records. Upon any determination by an agency to comply with a request for records, the records shall be made promptly available to such person making such request. Any notification of denial of any request for records under this subsection shall set forth the names and titles or positions of each person responsible for the denial of such request.

(ii) For purposes of this subparagraph, the term "exceptional circumstances" does not include a delay that results from a predictable agency workload of requests under this section, unless the agency demonstrates reasonable progress in reducing its backlog of pending requests.

(iii) Refusal by a person to reasonably modify the scope of a request or arrange an alternative time frame for processing a request (or a modified request) under clause (ii) after being given an opportunity to do so by the agency to whom the person made the request shall be considered as a factor in determining whether exceptional circumstances exist for purposes of this subparagraph.

(D)(i) Each agency may promulgate regulations, pursuant to notice and receipt of public comment, providing for multitrack processing of requests for records based on the amount of work or time (or both) involved in processing requests.

(ii) Regulations under this subparagraph may provide a person making a request that does not qualify for the fastest multitrack processing an opportunity to limit the scope of the request in order to qualify for faster processing.

(iii) This subparagraph shall not be considered to affect the requirement under subparagraph (C) to exercise due diligence.

(E)(i) Each agency shall promulgate regulations, pursuant to notice and receipt of public comment, providing for expedited processing of requests for records—

(I) in cases in which the person requesting the records demonstrates a compelling need; and

(II) in other cases determined by the agency.


(ii) Notwithstanding clause (i), regulations under this subparagraph must ensure—

(I) that a determination of whether to provide expedited processing shall be made, and notice of the determination shall be provided to the person making the request, within 10 days after the date of the request; and

(II) expeditious consideration of administrative appeals of such determinations of whether to provide expedited processing.


(iii) An agency shall process as soon as practicable any request for records to which the agency has granted expedited processing under this subparagraph. Agency action to deny or affirm denial of a request for expedited processing pursuant to this subparagraph, and failure by an agency to respond in a timely manner to such a request shall be subject to judicial review under paragraph (4), except that the judicial review shall be based on the record before the agency at the time of the determination.

(iv) A district court of the United States shall not have jurisdiction to review an agency denial of expedited processing of a request for records after the agency has provided a complete response to the request.

(v) For purposes of this subparagraph, the term "compelling need" means—

(I) that a failure to obtain requested records on an expedited basis under this paragraph could reasonably be expected to pose an imminent threat to the life or physical safety of an individual; or

(II) with respect to a request made by a person primarily engaged in disseminating information, urgency to inform the public concerning actual or alleged Federal Government activity.


(vi) A demonstration of a compelling need by a person making a request for expedited processing shall be made by a statement certified by such person to be true and correct to the best of such person's knowledge and belief.

(F) In denying a request for records, in whole or in part, an agency shall make a reasonable effort to estimate the volume of any requested matter the provision of which is denied, and shall provide any such estimate to the person making the request, unless providing such estimate would harm an interest protected by the exemption in subsection (b) pursuant to which the denial is made.

(7) Each agency shall—

(A) establish a system to assign an individualized tracking number for each request received that will take longer than ten days to process and provide to each person making a request the tracking number assigned to the request; and

(B) establish a telephone line or Internet service that provides information about the status of a request to the person making the request using the assigned tracking number, including—

(i) the date on which the agency originally received the request; and

(ii) an estimated date on which the agency will complete action on the request.


(8)(A) An agency shall—

(i) withhold information under this section only if—

(I) the agency reasonably foresees that disclosure would harm an interest protected by an exemption described in subsection (b); or

(II) disclosure is prohibited by law; and


(ii)(I) consider whether partial disclosure of information is possible whenever the agency determines that a full disclosure of a requested record is not possible; and

(II) take reasonable steps necessary to segregate and release nonexempt information; and


(B) Nothing in this paragraph requires disclosure of information that is otherwise prohibited from disclosure by law, or otherwise exempted from disclosure under subsection (b)(3).

(b) This section does not apply to matters that are—

(1)(A) specifically authorized under criteria established by an Executive order to be kept secret in the interest of national defense or foreign policy and (B) are in fact properly classified pursuant to such Executive order;

(2) related solely to the internal personnel rules and practices of an agency;

(3) specifically exempted from disclosure by statute (other than section 552b of this title), if that statute—

(A)(i) requires that the matters be withheld from the public in such a manner as to leave no discretion on the issue; or

(ii) establishes particular criteria for withholding or refers to particular types of matters to be withheld; and

(B) if enacted after the date of enactment of the OPEN FOIA Act of 2009, specifically cites to this paragraph.


(4) trade secrets and commercial or financial information obtained from a person and privileged or confidential;

(5) inter-agency or intra-agency memorandums or letters that would not be available by law to a party other than an agency in litigation with the agency, provided that the deliberative process privilege shall not apply to records created 25 years or more before the date on which the records were requested;

(6) personnel and medical files and similar files the disclosure of which would constitute a clearly unwarranted invasion of personal privacy;

(7) records or information compiled for law enforcement purposes, but only to the extent that the production of such law enforcement records or information (A) could reasonably be expected to interfere with enforcement proceedings, (B) would deprive a person of a right to a fair trial or an impartial adjudication, (C) could reasonably be expected to constitute an unwarranted invasion of personal privacy, (D) could reasonably be expected to disclose the identity of a confidential source, including a State, local, or foreign agency or authority or any private institution which furnished information on a confidential basis, and, in the case of a record or information compiled by criminal law enforcement authority in the course of a criminal investigation or by an agency conducting a lawful national security intelligence investigation, information furnished by a confidential source, (E) would disclose techniques and procedures for law enforcement investigations or prosecutions, or would disclose guidelines for law enforcement investigations or prosecutions if such disclosure could reasonably be expected to risk circumvention of the law, or (F) could reasonably be expected to endanger the life or physical safety of any individual;

(8) contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of an agency responsible for the regulation or supervision of financial institutions; or

(9) geological and geophysical information and data, including maps, concerning wells.


Any reasonably segregable portion of a record shall be provided to any person requesting such record after deletion of the portions which are exempt under this subsection. The amount of information deleted, and the exemption under which the deletion is made, shall be indicated on the released portion of the record, unless including that indication would harm an interest protected by the exemption in this subsection under which the deletion is made. If technically feasible, the amount of the information deleted, and the exemption under which the deletion is made, shall be indicated at the place in the record where such deletion is made.

(c)(1) Whenever a request is made which involves access to records described in subsection (b)(7)(A) and—

(A) the investigation or proceeding involves a possible violation of criminal law; and

(B) there is reason to believe that (i) the subject of the investigation or proceeding is not aware of its pendency, and (ii) disclosure of the existence of the records could reasonably be expected to interfere with enforcement proceedings,


the agency may, during only such time as that circumstance continues, treat the records as not subject to the requirements of this section.

(2) Whenever informant records maintained by a criminal law enforcement agency under an informant's name or personal identifier are requested by a third party according to the informant's name or personal identifier, the agency may treat the records as not subject to the requirements of this section unless the informant's status as an informant has been officially confirmed.

(3) Whenever a request is made which involves access to records maintained by the Federal Bureau of Investigation pertaining to foreign intelligence or counterintelligence, or international terrorism, and the existence of the records is classified information as provided in subsection (b)(1), the Bureau may, as long as the existence of the records remains classified information, treat the records as not subject to the requirements of this section.

(d) This section does not authorize withholding of information or limit the availability of records to the public, except as specifically stated in this section. This section is not authority to withhold information from Congress.

(e)(1) On or before February 1 of each year, each agency shall submit to the Attorney General of the United States and to the Director of the Office of Government Information Services a report which shall cover the preceding fiscal year and which shall include—

(A) the number of determinations made by the agency not to comply with requests for records made to such agency under subsection (a) and the reasons for each such determination;

(B)(i) the number of appeals made by persons under subsection (a)(6), the result of such appeals, and the reason for the action upon each appeal that results in a denial of information; and

(ii) a complete list of all statutes that the agency relies upon to authorize the agency to withhold information under subsection (b)(3), the number of occasions on which each statute was relied upon, a description of whether a court has upheld the decision of the agency to withhold information under each such statute, and a concise description of the scope of any information withheld;

(C) the number of requests for records pending before the agency as of September 30 of the preceding year, and the median and average number of days that such requests had been pending before the agency as of that date;

(D) the number of requests for records received by the agency and the number of requests which the agency processed;

(E) the median number of days taken by the agency to process different types of requests, based on the date on which the requests were received by the agency;

(F) the average number of days for the agency to respond to a request beginning on the date on which the request was received by the agency, the median number of days for the agency to respond to such requests, and the range in number of days for the agency to respond to such requests;

(G) based on the number of business days that have elapsed since each request was originally received by the agency—

(i) the number of requests for records to which the agency has responded with a determination within a period up to and including 20 days, and in 20-day increments up to and including 200 days;

(ii) the number of requests for records to which the agency has responded with a determination within a period greater than 200 days and less than 301 days;

(iii) the number of requests for records to which the agency has responded with a determination within a period greater than 300 days and less than 401 days; and

(iv) the number of requests for records to which the agency has responded with a determination within a period greater than 400 days;


(H) the average number of days for the agency to provide the granted information beginning on the date on which the request was originally filed, the median number of days for the agency to provide the granted information, and the range in number of days for the agency to provide the granted information;

(I) the median and average number of days for the agency to respond to administrative appeals based on the date on which the appeals originally were received by the agency, the highest number of business days taken by the agency to respond to an administrative appeal, and the lowest number of business days taken by the agency to respond to an administrative appeal;

(J) data on the 10 active requests with the earliest filing dates pending at each agency, including the amount of time that has elapsed since each request was originally received by the agency;

(K) data on the 10 active administrative appeals with the earliest filing dates pending before the agency as of September 30 of the preceding year, including the number of business days that have elapsed since the requests were originally received by the agency;

(L) the number of expedited review requests that are granted and denied, the average and median number of days for adjudicating expedited review requests, and the number adjudicated within the required 10 days;

(M) the number of fee waiver requests that are granted and denied, and the average and median number of days for adjudicating fee waiver determinations;

(N) the total amount of fees collected by the agency for processing requests;

(O) the number of full-time staff of the agency devoted to processing requests for records under this section, and the total amount expended by the agency for processing such requests;

(P) the number of times the agency denied a request for records under subsection (c); and

(Q) the number of records that were made available for public inspection in an electronic format under subsection (a)(2).


(2) Information in each report submitted under paragraph (1) shall be expressed in terms of each principal component of the agency and for the agency overall.

(3) Each agency shall make each such report available for public inspection in an electronic format. In addition, each agency shall make the raw statistical data used in each report available in a timely manner for public inspection in an electronic format, which shall be made available—

(A) without charge, license, or registration requirement;

(B) in an aggregated, searchable format; and

(C) in a format that may be downloaded in bulk.


(4) The Attorney General of the United States shall make each report which has been made available by electronic means available at a single electronic access point. The Attorney General of the United States shall notify the Chairman and ranking minority member of the Committee on Oversight and Government Reform of the House of Representatives and the Chairman and ranking minority member of the Committees on Homeland Security and Governmental Affairs and the Judiciary of the Senate, no later than March 1 of the year in which each such report is issued, that such reports are available by electronic means.

(5) The Attorney General of the United States, in consultation with the Director of the Office of Management and Budget, shall develop reporting and performance guidelines in connection with reports required by this subsection by October 1, 1997, and may establish additional requirements for such reports as the Attorney General determines may be useful.

(6)(A) The Attorney General of the United States shall submit to the Committee on Oversight and Government Reform of the House of Representatives, the Committee on the Judiciary of the Senate, and the President a report on or before March 1 of each calendar year, which shall include for the prior calendar year—

(i) a listing of the number of cases arising under this section;

(ii) a listing of—

(I) each subsection, and any exemption, if applicable, involved in each case arising under this section;

(II) the disposition of each case arising under this section; and

(III) the cost, fees, and penalties assessed under subparagraphs (E), (F), and (G) of subsection (a)(4); and


(iii) a description of the efforts undertaken by the Department of Justice to encourage agency compliance with this section.


(B) The Attorney General of the United States shall make—

(i) each report submitted under subparagraph (A) available for public inspection in an electronic format; and

(ii) the raw statistical data used in each report submitted under subparagraph (A) available for public inspection in an electronic format, which shall be made available—

(I) without charge, license, or registration requirement;

(II) in an aggregated, searchable format; and

(III) in a format that may be downloaded in bulk.


(f) For purposes of this section, the term—

(1) "agency" as defined in section 551(1) of this title includes any executive department, military department, Government corporation, Government controlled corporation, or other establishment in the executive branch of the Government (including the Executive Office of the President), or any independent regulatory agency; and

(2) "record" and any other term used in this section in reference to information includes—

(A) any information that would be an agency record subject to the requirements of this section when maintained by an agency in any format, including an electronic format; and

(B) any information described under subparagraph (A) that is maintained for an agency by an entity under Government contract, for the purposes of records management.


(g) The head of each agency shall prepare and make available for public inspection in an electronic format, reference material or a guide for requesting records or information from the agency, subject to the exemptions in subsection (b), including—

(1) an index of all major information systems of the agency;

(2) a description of major information and record locator systems maintained by the agency; and

(3) a handbook for obtaining various types and categories of public information from the agency pursuant to chapter 35 of title 44, and under this section.


(h)(1) There is established the Office of Government Information Services within the National Archives and Records Administration. The head of the Office shall be the Director of the Office of Government Information Services.

(2) The Office of Government Information Services shall—

(A) review policies and procedures of administrative agencies under this section;

(B) review compliance with this section by administrative agencies; and

(C) identify procedures and methods for improving compliance under this section.


(3) The Office of Government Information Services shall offer mediation services to resolve disputes between persons making requests under this section and administrative agencies as a nonexclusive alternative to litigation and may issue advisory opinions at the discretion of the Office or upon request of any party to a dispute.

(4)(A) Not less frequently than annually, the Director of the Office of Government Information Services shall submit to the Committee on Oversight and Government Reform of the House of Representatives, the Committee on the Judiciary of the Senate, and the President—

(i) a report on the findings of the information reviewed and identified under paragraph (2);

(ii) a summary of the activities of the Office of Government Information Services under paragraph (3), including—

(I) any advisory opinions issued; and

(II) the number of times each agency engaged in dispute resolution with the assistance of the Office of Government Information Services or the FOIA Public Liaison; and


(iii) legislative and regulatory recommendations, if any, to improve the administration of this section.


(B) The Director of the Office of Government Information Services shall make each report submitted under subparagraph (A) available for public inspection in an electronic format.

(C) The Director of the Office of Government Information Services shall not be required to obtain the prior approval, comment, or review of any officer or agency of the United States, including the Department of Justice, the Archivist of the United States, or the Office of Management and Budget before submitting to Congress, or any committee or subcommittee thereof, any reports, recommendations, testimony, or comments, if such submissions include a statement indicating that the views expressed therein are those of the Director and do not necessarily represent the views of the President.

(5) The Director of the Office of Government Information Services may directly submit additional information to Congress and the President as the Director determines to be appropriate.

(6) Not less frequently than annually, the Office of Government Information Services shall conduct a meeting that is open to the public on the review and reports by the Office and shall allow interested persons to appear and present oral or written statements at the meeting.

(i) The Government Accountability Office shall conduct audits of administrative agencies on the implementation of this section and issue reports detailing the results of such audits.

(j)(1) Each agency shall designate a Chief FOIA Officer who shall be a senior official of such agency (at the Assistant Secretary or equivalent level).

(2) The Chief FOIA Officer of each agency shall, subject to the authority of the head of the agency—

(A) have agency-wide responsibility for efficient and appropriate compliance with this section;

(B) monitor implementation of this section throughout the agency and keep the head of the agency, the chief legal officer of the agency, and the Attorney General appropriately informed of the agency's performance in implementing this section;

(C) recommend to the head of the agency such adjustments to agency practices, policies, personnel, and funding as may be necessary to improve its implementation of this section;

(D) review and report to the Attorney General, through the head of the agency, at such times and in such formats as the Attorney General may direct, on the agency's performance in implementing this section;

(E) facilitate public understanding of the purposes of the statutory exemptions of this section by including concise descriptions of the exemptions in both the agency's handbook issued under subsection (g), and the agency's annual report on this section, and by providing an overview, where appropriate, of certain general categories of agency records to which those exemptions apply;

(F) offer training to agency staff regarding their responsibilities under this section;

(G) serve as the primary agency liaison with the Office of Government Information Services and the Office of Information Policy; and

(H) designate 1 or more FOIA Public Liaisons.


(3) The Chief FOIA Officer of each agency shall review, not less frequently than annually, all aspects of the administration of this section by the agency to ensure compliance with the requirements of this section, including—

(A) agency regulations;

(B) disclosure of records required under paragraphs (2) and (8) of subsection (a);

(C) assessment of fees and determination of eligibility for fee waivers;

(D) the timely processing of requests for information under this section;

(E) the use of exemptions under subsection (b); and

(F) dispute resolution services with the assistance of the Office of Government Information Services or the FOIA Public Liaison.


(k)(1) There is established in the executive branch the Chief FOIA Officers Council (referred to in this subsection as the "Council").

(2) The Council shall be comprised of the following members:

(A) The Deputy Director for Management of the Office of Management and Budget.

(B) The Director of the Office of Information Policy at the Department of Justice.

(C) The Director of the Office of Government Information Services.

(D) The Chief FOIA Officer of each agency.

(E) Any other officer or employee of the United States as designated by the Co-Chairs.


(3) The Director of the Office of Information Policy at the Department of Justice and the Director of the Office of Government Information Services shall be the Co-Chairs of the Council.

(4) The Administrator of General Services shall provide administrative and other support for the Council.

(5)(A) The duties of the Council shall include the following:

(i) Develop recommendations for increasing compliance and efficiency under this section.

(ii) Disseminate information about agency experiences, ideas, best practices, and innovative approaches related to this section.

(iii) Identify, develop, and coordinate initiatives to increase transparency and compliance with this section.

(iv) Promote the development and use of common performance measures for agency compliance with this section.


(B) In performing the duties described in subparagraph (A), the Council shall consult on a regular basis with members of the public who make requests under this section.

(6)(A) The Council shall meet regularly and such meetings shall be open to the public unless the Council determines to close the meeting for reasons of national security or to discuss information exempt under subsection (b).

(B) Not less frequently than annually, the Council shall hold a meeting that shall be open to the public and permit interested persons to appear and present oral and written statements to the Council.

(C) Not later than 10 business days before a meeting of the Council, notice of such meeting shall be published in the Federal Register.

(D) Except as provided in subsection (b), the records, reports, transcripts, minutes, appendices, working papers, drafts, studies, agenda, or other documents that were made available to or prepared for or by the Council shall be made publicly available.

(E) Detailed minutes of each meeting of the Council shall be kept and shall contain a record of the persons present, a complete and accurate description of matters discussed and conclusions reached, and copies of all reports received, issued, or approved by the Council. The minutes shall be redacted as necessary and made publicly available.

(l) FOIA Public Liaisons shall report to the agency Chief FOIA Officer and shall serve as supervisory officials to whom a requester under this section can raise concerns about the service the requester has received from the FOIA Requester Center, following an initial response from the FOIA Requester Center Staff. FOIA Public Liaisons shall be responsible for assisting in reducing delays, increasing transparency and understanding of the status of requests, and assisting in the resolution of disputes.

(m)(1) The Director of the Office of Management and Budget, in consultation with the Attorney General, shall ensure the operation of a consolidated online request portal that allows a member of the public to submit a request for records under subsection (a) to any agency from a single website. The portal may include any additional tools the Director of the Office of Management and Budget finds will improve the implementation of this section.

(2) This subsection shall not be construed to alter the power of any other agency to create or maintain an independent online portal for the submission of a request for records under this section. The Director of the Office of Management and Budget shall establish standards for interoperability between the portal required under paragraph (1) and other request processing software used by agencies subject to this section.

Notes

Historical and Revision Notes1966 Act
DerivationU.S. CodeRevised Statutes and

Statutes at Large

5 U.S.C. 1002. June 11, 1946, ch. 324, §3, 60 Stat. 238.

In subsection (b)(3), the words "formulated and" are omitted as surplusage. In the last sentence of subsection (b), the words "in any manner" are omitted as surplusage since the prohibition is all inclusive.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

1967 Act

Section 1 [of Pub. L. 90–23] amends section 552 of title 5, United States Code, to reflect Public Law 89–487.

In subsection (a)(1)(A), the words "employees (and in the case of a uniformed service, the member)" are substituted for "officer" to retain the coverage of Public Law 89–487 and to conform to the definitions in 5 U.S.C. 2101, 2104, and 2105.

In the last sentence of subsection (a)(2), the words "A final order * * * may be relied on * * * only if" are substituted for "No final order * * * may be relied upon * * * unless"; and the words "a party other than an agency" and "the party" are substituted for "a private party" and "the private party", respectively, on authority of the definition of "private party" in 5 App. U.S.C. 1002(g).

In subsection (a)(3), the words "the responsible employee, and in the case of a uniformed service, the responsible member" are substituted for "the responsible officers" to retain the coverage of Public Law 89–487 and to conform to the definitions in 5 U.S.C. 2101, 2104, and 2105.

In subsection (a)(4), the words "shall maintain and make available for public inspection a record" are substituted for "shall keep a record * * * and that record shall be available for public inspection".

In subsection (b)(5) and (7), the words "a party other than an agency" are substituted for "a private party" on authority of the definition of "private party" in 5 App. U.S.C. 1002(g).

In subsection (c), the words "This section does not authorize" and "This section is not authority" are substituted for "Nothing in this section authorizes" and "nor shall this section be authority", respectively.

5 App. U.S.C. 1002(g), defining "private party" to mean a party other than an agency, is omitted since the words "party other than an agency" are substituted for the words "private party" wherever they appear in revised 5 U.S.C. 552.

5 App. U.S.C. 1002(h), prescribing the effective date, is omitted as unnecessary. That effective date is prescribed by section 4 of this bill.

References in Text

The National Security Act of 1947, referred to in subsec. (a)(3)(E), is act July 26, 1947, ch. 343, 61 Stat. 495, which was formerly classified principally to chapter 15 (§401 et seq.) of Title 50, War and National Defense, prior to editorial reclassification in chapter 44 (§3001 et seq.) of Title 50. Section 3 of the Act is now classified to section 3003 of Title 50. For complete classification of this Act to the Code, see Tables.

The date of enactment of the OPEN FOIA Act of 2009, referred to in subsec. (b)(3)(B), is the date of enactment of Pub. L. 111–83, which was approved Oct. 28, 2009.

Codification

Section 552 of former Title 5, Executive Departments and Government Officers and Employees, was transferred to section 2243 of Title 7, Agriculture.

Amendments

2016—Subsec. (a)(2). Pub. L. 114–185, §2(1)(A)(i), in introductory provisions, substituted "for public inspection in an electronic format" for "for public inspection and copying".

Pub. L. 114–185, §2(1)(A)(iii), in concluding provisions, substituted "public inspection in an electronic format current" for "public inspection and copying current".

Subsec. (a)(2)(D). Pub. L. 114–185, §2(1)(A)(ii), added subpar. (D) and struck out former subpar. (D) which read as follows: "copies of all records, regardless of form or format, which have been released to any person under paragraph (3) and which, because of the nature of their subject matter, the agency determines have become or are likely to become the subject of subsequent requests for substantially the same records; and".

Subsec. (a)(4)(A)(viii). Pub. L. 114–185, §2(1)(B), added cl. (viii) and struck out former cl. (viii) which read as follows: "An agency shall not assess search fees (or in the case of a requester described under clause (ii)(II), duplication fees) under this subparagraph if the agency fails to comply with any time limit under paragraph (6), if no unusual or exceptional circumstances (as those terms are defined for purposes of paragraphs (6)(B) and (C), respectively) apply to the processing of the request."

Subsec. (a)(6)(A)(i). Pub. L. 114–185, §2(1)(C)(i), substituted "making such request of—" for "making such request of such determination and the reasons therefor, and of the right of such person to appeal to the head of the agency any adverse determination; and" and added subcls. (I) to (III).

Subsec. (a)(6)(B)(ii). Pub. L. 114–185, §2(1)(C)(ii), substituted "the agency, and notify the requester of the right of the requester to seek dispute resolution services from the Office of Government Information Services." for "the agency."

Subsec. (a)(8). Pub. L. 114–185, §2(1)(D), added par. (8).

Subsec. (b)(5). Pub. L. 114–185, §2(2), amended par. (5) generally. Prior to amendment, par. (5) read as follows: "inter-agency or intra-agency memorandums or letters which would not be available by law to a party other than an agency in litigation with the agency;".

Subsec. (e)(1). Pub. L. 114–185, §2(3)(A)(i), in introductory provisions, inserted "and to the Director of the Office of Government Information Services" after "United States".

Subsec. (e)(1)(P), (Q). Pub. L. 114–185, §2(3)(A)(ii)–(iv), added subpars. (P) and (Q).

Subsec. (e)(3). Pub. L. 114–185, §2(3)(B), added par. (3) and struck out former par. (3) which read as follows: "Each agency shall make each such report available to the public including by computer telecommunications, or if computer telecommunications means have not been established by the agency, by other electronic means. In addition, each agency shall make the raw statistical data used in its reports available electronically to the public upon request."

Subsec. (e)(4). Pub. L. 114–185, §2(3)(C), substituted "Oversight and Government Reform" for "Government Reform and Oversight" and "March" for "April" and inserted "Homeland Security and" before "Governmental Affairs".

Subsec. (e)(6). Pub. L. 114–185, §2(3)(D), added par. (6) and struck out former par. (6) which read as follows: "The Attorney General of the United States shall submit an annual report on or before April 1 of each calendar year which shall include for the prior calendar year a listing of the number of cases arising under this section, the exemption involved in each case, the disposition of such case, and the cost, fees, and penalties assessed under subparagraphs (E), (F), and (G) of subsection (a)(4). Such report shall also include a description of the efforts undertaken by the Department of Justice to encourage agency compliance with this section."

Subsec. (g). Pub. L. 114–185, §2(4), in introductory provisions, substituted "available for public inspection in an electronic format" for "publicly available upon request".

Subsec. (h)(1). Pub. L. 114–185, §2(5)(A), inserted at end "The head of the Office shall be the Director of the Office of Government Information Services."

Subsec. (h)(2)(C). Pub. L. 114–185, §2(5)(B), added subpar. (C) and struck out former subpar. (C) which read as follows: "recommend policy changes to Congress and the President to improve the administration of this section."

Subsec. (h)(3). Pub. L. 114–185, §2(5)(C), added par. (3) and struck out former par. (3) which read as follows: "The Office of Government Information Services shall offer mediation services to resolve disputes between persons making requests under this section and administrative agencies as a non-exclusive alternative to litigation and, at the discretion of the Office, may issue advisory opinions if mediation has not resolved the dispute."

Subsec. (h)(4) to (6). Pub. L. 114–185, §2(5)(D), added pars. (4) to (6).

Subsec. (j). Pub. L. 114–185, §2(6), added subsec. (j) and struck out former subsec. (j) which read as follows: "Each agency shall designate a Chief FOIA Officer who shall be a senior official of such agency (at the Assistant Secretary or equivalent level)."

Subsec. (k). Pub. L. 114–185, §2(6), added subsec. (k) and struck out former subsec. (k) which related to authority and responsibilities of the Chief FOIA Officer.

Subsec. (m). Pub. L. 114–185, §2(7), added subsec. (m).

2009—Subsec. (b)(3). Pub. L. 111–83 added par. (3) and struck out former par. (3) which read as follows: "specifically exempted from disclosure by statute (other than section 552b of this title), provided that such statute (A) requires that the matters be withheld from the public in such a manner as to leave no discretion on the issue, or (B) establishes particular criteria for withholding or refers to particular types of matters to be withheld;".

2007—Subsec. (a)(4)(A)(ii). Pub. L. 110–175, §3, inserted concluding provisions.

Subsec. (a)(4)(A)(viii). Pub. L. 110–175, §6(b)(1)(A), added cl. (viii).

Subsec. (a)(4)(E). Pub. L. 110–175, §4(a), designated existing provisions as cl. (i) and added cl. (ii).

Subsec. (a)(4)(F). Pub. L. 110–175, §5, designated existing provisions as cl. (i) and added cls. (ii) and (iii).

Subsec. (a)(6)(A). Pub. L. 110–175, §6(a)(1), inserted concluding provisions.

Subsec. (a)(6)(B)(ii). Pub. L. 110–175, §6(b)(1)(B), inserted after the first sentence "To aid the requester, each agency shall make available its FOIA Public Liaison, who shall assist in the resolution of any disputes between the requester and the agency."

Subsec. (a)(7). Pub. L. 110–175, §7(a), added par. (7).

Subsec. (b). Pub. L. 110–175, §12, in concluding provisions, inserted ", and the exemption under which the deletion is made," after "The amount of information deleted" in second sentence and after "the amount of the information deleted" in third sentence.

Subsec. (e)(1)(B)(ii). Pub. L. 110–175, §8(a)(1), inserted "the number of occasions on which each statute was relied upon," after "subsection (b)(3),".

Subsec. (e)(1)(C). Pub. L. 110–175, §8(a)(2), inserted "and average" after "median".

Subsec. (e)(1)(E). Pub. L. 110–175, §8(a)(3), inserted before semicolon ", based on the date on which the requests were received by the agency".

Subsec. (e)(1)(F) to (O). Pub. L. 110–175, §8(a)(4), (5), added subpars. (F) to (M) and redesignated former subpars. (F) and (G) as (N) and (O), respectively.

Subsec. (e)(2). Pub. L. 110–175, §8(b)(2), added par. (2). Former par. (2) redesignated (3).

Subsec. (e)(3). Pub. L. 110–175, §8(b)(1), (c), redesignated par. (2) as (3) and inserted at end "In addition, each agency shall make the raw statistical data used in its reports available electronically to the public upon request." Former par. (3) redesignated (4).

Subsec. (e)(4) to (6). Pub. L. 110–175, §8(b)(1), redesignated pars. (3) to (5) as (4) to (6), respectively.

Subsec. (f)(2). Pub. L. 110–175, §9, added par. (2) and struck out former par. (2) which read as follows: " 'record' and any other term used in this section in reference to information includes any information that would be an agency record subject to the requirements of this section when maintained by an agency in any format, including an electronic format."

Subsecs. (h) to (l). Pub. L. 110–175, §10(a), added subsecs. (h) to (l).

2002—Subsec. (a)(3)(A). Pub. L. 107–306, §312(1), inserted "and except as provided in subparagraph (E)," after "of this subsection,".

Subsec. (a)(3)(E). Pub. L. 107–306, §312(2), added subpar. (E).

1996—Subsec. (a)(2). Pub. L. 104–231, §4(4), (5), in first sentence struck out "and" at end of subpar. (B) and inserted subpars. (D) and (E).

Pub. L. 104–231, §4(7), inserted after first sentence "For records created on or after November 1, 1996, within one year after such date, each agency shall make such records available, including by computer telecommunications or, if computer telecommunications means have not been established by the agency, by other electronic means."

Pub. L. 104–231, §4(1), in second sentence substituted "staff manual, instruction, or copies of records referred to in subparagraph (D)" for "or staff manual or instruction".

Pub. L. 104–231, §4(2), inserted before period at end of third sentence ", and the extent of such deletion shall be indicated on the portion of the record which is made available or published, unless including that indication would harm an interest protected by the exemption in subsection (b) under which the deletion is made".

Pub. L. 104–231, §4(3), inserted after third sentence "If technically feasible, the extent of the deletion shall be indicated at the place in the record where the deletion was made."

Pub. L. 104–231, §4(6), which directed the insertion of the following new sentence after the fifth sentence "Each agency shall make the index referred to in subparagraph (E) available by computer telecommunications by December 31, 1999.", was executed by making the insertion after the sixth sentence, to reflect the probable intent of Congress and the addition of a new sentence by section 4(3) of Pub. L. 104–231.

Subsec. (a)(3). Pub. L. 104–231, §5, inserted subpar. (A) designation after "(3)", redesignated subpars. (A) and (B) as cls. (i) and (ii), respectively, and added subpars. (B) to (D).

Subsec. (a)(4)(B). Pub. L. 104–231, §6, inserted at end "In addition to any other matters to which a court accords substantial weight, a court shall accord substantial weight to an affidavit of an agency concerning the agency's determination as to technical feasibility under paragraph (2)(C) and subsection (b) and reproducibility under paragraph (3)(B)."

Subsec. (a)(6)(A)(i). Pub. L. 104–231, §8(b), substituted "20 days" for "ten days".

Subsec. (a)(6)(B). Pub. L. 104–231, §7(b), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "In unusual circumstances as specified in this subparagraph, the time limits prescribed in either clause (i) or clause (ii) of subparagraph (A) may be extended by written notice to the person making such request setting forth the reasons for such extension and the date on which a determination is expected to be dispatched. No such notice shall specify a date that would result in an extension for more than ten working days. As used in this subparagraph, 'unusual circumstances' means, but only to the extent reasonably necessary to the proper processing of the particular request—

"(i) the need to search for and collect the requested records from field facilities or other establishments that are separate from the office processing the request;

"(ii) the need to search for, collect, and appropriately examine a voluminous amount of separate and distinct records which are demanded in a single request; or

"(iii) the need for consultation, which shall be conducted with all practicable speed, with another agency having a substantial interest in the determination of the request or among two or more components of the agency having substantial subject-matter interest therein."

Subsec. (a)(6)(C). Pub. L. 104–231, §7(c), designated existing provisions as cl. (i) and added cls. (ii) and (iii).

Subsec. (a)(6)(D). Pub. L. 104–231, §7(a), added subpar. (D).

Subsec. (a)(6)(E), (F). Pub. L. 104–231, §8(a), (c), added subpars. (E) and (F).

Subsec. (b). Pub. L. 104–231, §9, inserted at end of closing provisions "The amount of information deleted shall be indicated on the released portion of the record, unless including that indication would harm an interest protected by the exemption in this subsection under which the deletion is made. If technically feasible, the amount of the information deleted shall be indicated at the place in the record where such deletion is made."

Subsec. (e). Pub. L. 104–231, §10, amended subsec. (e) generally, revising and restating provisions relating to reports to Congress.

Subsec. (f). Pub. L. 104–231, §3, amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: "For purposes of this section, the term 'agency' as defined in section 551(1) of this title includes any executive department, military department, Government corporation, Government controlled corporation, or other establishment in the executive branch of the Government (including the Executive Office of the President), or any independent regulatory agency."

Subsec. (g). Pub. L. 104–231, §11, added subsec. (g).

1986—Subsec. (a)(4)(A). Pub. L. 99–570, §1803, amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "In order to carry out the provisions of this section, each agency shall promulgate regulations, pursuant to notice and receipt of public comment, specifying a uniform schedule of fees applicable to all constituent units of such agency. Such fees shall be limited to reasonable standard charges for document search and duplication and provide for recovery of only the direct costs of such search and duplication. Documents shall be furnished without charge or at a reduced charge where the agency determines that waiver or reduction of the fee is in the public interest because furnishing the information can be considered as primarily benefiting the general public."

Subsec. (b)(7). Pub. L. 99–570, §1802(a), amended par. (7) generally. Prior to amendment, par. (7) read as follows: "investigatory records compiled for law enforcement purposes, but only to the extent that the production of such records would (A) interfere with enforcement proceedings, (B) deprive a person of a right to a fair trial or an impartial adjudication, (C) constitute an unwarranted invasion of personal privacy, (D) disclose the identity of a confidential source and, in the case of a record compiled by a criminal law enforcement authority in the course of a criminal investigation, or by an agency conducting a lawful national security intelligence investigation, confidential information furnished only by the confidential source, (E) disclose investigative techniques and procedures, or (F) endanger the life or physical safety of law enforcement personnel;".

Subsecs. (c) to (f). Pub. L. 99–570, §1802(b), added subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to (f), respectively.

1984—Subsec. (a)(4)(D). Pub. L. 98–620 repealed subpar. (D) which provided for precedence on the docket and expeditious disposition of district court proceedings authorized by subsec. (a).

1978—Subsec. (a)(4)(F). Pub. L. 95–454 substituted references to the Special Counsel for references to the Civil Service Commission wherever appearing and reference to his findings for reference to its findings.

1976—Subsec. (b)(3). Pub. L. 94–409 inserted provision excluding section 552b of this title from applicability of exemption from disclosure and provision setting forth conditions for statute specifically exempting disclosure.

1974—Subsec. (a)(2). Pub. L. 93–502, §1(a), substituted provisions relating to maintenance and availability of current indexes, for provisions relating to maintenance and availability of a current index, and inserted provisions relating to publication and distribution of copies of indexes or supplements thereto.

Subsec. (a)(3). Pub. L. 93–502, §1(b)(1), substituted provisions requiring requests to reasonably describe records for provisions requiring requests, for identifiable records, and struck out provisions setting forth procedures to enjoin agencies from withholding the requested records and ordering their production.

Subsec. (a)(4), (5). Pub. L. 93–502, §1(b)(2), added par. (4) and redesignated former par. (4) as (5).

Subsec. (a)(6). Pub. L. 93–502, §1(c), added par. (6).

Subsec. (b)(1). Pub. L. 93–502, §2(a), designated existing provisions as cl. (A), substituted "authorized under criteria established by an" for "required by", and added cl. (B).

Subsec. (b)(7). Pub. L. 93–502, §2(b), substituted provisions relating to exemption for investigatory records compiled for law enforcement purposes, for provisions relating to exemption for investigatory files compiled for law enforcement purposes.

Subsec. (b), foll. par. (9). Pub. L. 93–502, §2(c), inserted provision relating to availability of segregable portion of records.

Subsecs. (d), (e). Pub. L. 93–502, §3, added subsecs. (d) and (e).

1967—Subsec. (a). Pub. L. 90–23 substituted introductory statement requiring every agency to make available to the public certain information for former introductory provision excepting from disclosure (1) any function of the United States requiring secrecy in the public interest or (2) any matter relating to internal management of an agency, covered in subsec. (b)(1) and (2) of this section.

Subsec. (a)(1). Pub. L. 90–23 incorporated provisions of: former subsec. (b)(1) in (A), inserting requirement of publication of names of officers as sources of information and provision for public to obtain decisions, and striking out publication requirement for delegations by the agency of final authority; former subsec. (b)(2), introductory part, in (B); former subsec. (b)(2), concluding part, in (C), inserting publication requirement for rules of procedure and descriptions of forms available or the places at which forms may be obtained; former subsec. (b)(3), introductory part, in (D), inserting requirement of general applicability of substantive rules and interpretations, added clause (E), substituted exemption of any person from failure to resort to any matter or from being adversely affected by any matter required to be published in the Federal Register but not so published for former subsec. (b)(3), concluding part, excepting from publication rules addressed to and served upon named persons in accordance with laws and final sentence reading "A person may not be required to resort to organization or procedure not so published" and inserted provision deeming matter, which is reasonably available, as published in the Federal Register when such matter is incorporated by reference in the Federal Register with the approval of its Director.

Subsec. (a)(2). Pub. L. 90–23 incorporated provisions of former subsec. (c), provided for public copying of records, struck out requirement of agency publication of final opinions or orders and authority for secrecy and withholding of opinions and orders required for good cause to be held confidential and not cited as precedents, latter provision now superseded by subsec. (b) of this section, designated existing subsec. (c) as clause (A), including provision for availability of concurring and dissenting opinions, inserted provisions for availability of policy statements and interpretations in clause (B) and staff manuals and instructions in clause (C), deletion of personal identifications from records to protect personal privacy with written justification therefor, and provision for indexing and prohibition of use of records not indexed against any private party without actual and timely notice of the terms thereof.

Subsec. (a)(3). Pub. L. 90–23 incorporated provisions of former subsec. (d) and substituted provisions requiring identifiable agency records to be made available to any person upon request and compliance with rules as to time, place, and procedure for inspection, and payment of fees and provisions for Federal district court proceedings de novo for enforcement by contempt of noncompliance with court's orders with the burden on the agency and docket precedence for such proceedings for former provisions requiring matters of official record to be made available to persons properly and directly concerned except information held confidential for good cause shown, the latter provision superseded by subsec. (b) of this section.

Subsec. (a)(4). Pub. L. 90–23 added par. (4).

Subsec. (b). Pub. L. 90–23 added subsec. (b) which superseded provisions excepting from disclosure any function of the United States requiring secrecy in the public interest or any matter relating to internal management of an agency, formerly contained in former subsec. (a), final opinions or orders required for good cause to be held confidential and not cited as precedents, formerly contained in subsec. (c), and information held confidential for good cause found, contained in former subsec. (d) of this section.

Subsec. (c). Pub. L. 90–23 added subsec. (c).

Effective Date of 2016 Amendment

Pub. L. 114–185, §6, June 30, 2016, 130 Stat. 544, provided that: "This Act [amending this section and section 3102 of Title 44, Public Printing and Documents, and enacting provisions set out as notes under this section and section 101 of this title], and the amendments made by this Act, shall take effect on the date of enactment of this Act [June 30, 2016] and shall apply to any request for records under section 552 of title 5, United States Code, made after the date of enactment of this Act."

Effective Date of 2007 Amendment

Pub. L. 110–175, §6(a)(2), Dec. 31, 2007, 121 Stat. 2526, provided that: "The amendment made by this subsection [amending this section] shall take effect 1 year after the date of enactment of this Act [Dec. 31, 2007]."

Pub. L. 110–175, §6(b)(2), Dec. 31, 2007, 121 Stat. 2526, provided that: "The amendment made by this subsection [amending this section] shall take effect 1 year after the date of enactment of this Act [Dec. 31, 2007] and apply to requests for information under section 552 of title 5, United States Code, filed on or after that effective date."

Pub. L. 110–175, §7(b), Dec. 31, 2007, 121 Stat. 2527, provided that: "The amendment made by this section [amending this section] shall take effect 1 year after the date of enactment of this Act [Dec. 31, 2007] and apply to requests for information under section 552 of title 5, United States Code, filed on or after that effective date."

Pub. L. 110–175, §10(b), Dec. 31, 2007, 121 Stat. 2530, provided that: "The amendments made by this section [amending this section] shall take effect on the date of enactment of this Act [Dec. 31, 2007]."

Effective Date of 1996 Amendment

Pub. L. 104–231, §12, Oct. 2, 1996, 110 Stat. 3054, provided that:

"(a) In General.—Except as provided in subsection (b), this Act [amending this section and enacting provisions set out as notes below] shall take effect 180 days after the date of the enactment of this Act [Oct. 2, 1996].

"(b) Provisions Effective on Enactment [sic].—Sections 7 and 8 [amending this section] shall take effect one year after the date of the enactment of this Act [Oct. 2, 1996]."

Effective Date of 1986 Amendment

Pub. L. 99–570, title I, §1804, Oct. 27, 1986, 100 Stat. 3207–50, provided that:

"(a) The amendments made by section 1802 [amending this section] shall be effective on the date of enactment of this Act [Oct. 27, 1986], and shall apply with respect to any requests for records, whether or not the request was made prior to such date, and shall apply to any civil action pending on such date.

"(b)(1) The amendments made by section 1803 [amending this section] shall be effective 180 days after the date of enactment of this Act [Oct. 27, 1986], except that regulations to implement such amendments shall be promulgated by such 180th day.

"(2) The amendments made by section 1803 [amending this section] shall apply with respect to any requests for records, whether or not the request was made prior to such date, and shall apply to any civil action pending on such date, except that review charges applicable to records requested for commercial use shall not be applied by an agency to requests made before the effective date specified in paragraph (1) of this subsection or before the agency has finally issued its regulations."

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–620 not applicable to cases pending on Nov. 8, 1984, see section 403 of Pub. L. 98–620, set out as an Effective Date note under section 1657 of Title 28, Judiciary and Judicial Procedure.

Effective Date of 1978 Amendment

Amendment by Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of this title.

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–409 effective 180 days after Sept. 13, 1976, see section 6 of Pub. L. 94–409, set out as an Effective Date note under section 552b of this title.

Effective Date of 1974 Amendment

Pub. L. 93–502, §4, Nov. 21, 1974, 88 Stat. 1564, provided that: "The amendments made by this Act [amending this section] shall take effect on the ninetieth day beginning after the date of enactment of this Act [Nov. 21, 1974]."

Effective Date of 1967 Amendment

Pub. L. 90–23, §4, June 5, 1967, 81 Stat. 56, provided that: "This Act [amending this section] shall be effective July 4, 1967, or on the date of enactment [June 5, 1967], whichever is later."

Short Title of 1996 Amendment

Pub. L. 104–231, §1, Oct. 2, 1996, 110 Stat. 3048, provided that: "This Act [amending this section and enacting provisions set out as notes under this section] may be cited as the 'Electronic Freedom of Information Act Amendments of 1996'."

Short Title of 1986 Amendment

Pub. L. 99–570, title I, §1801, Oct. 27, 1986, 100 Stat. 3207–48, provided that: "This subtitle [subtitle N (§§1801–1804) of title I of Pub. L. 99–570, amending this section and enacting provisions set out as a note under this section] may be cited as the 'Freedom of Information Reform Act of 1986'."

Short Title

This section is popularly known as the "Freedom of Information Act".

Review and Issuance of Regulations

Pub. L. 114–185, §3, June 30, 2016, 130 Stat. 544, provided that:

"(a) In General.—Not later than 180 days after the date of enactment of this Act [June 30, 2016], the head of each agency (as defined in section 551 of title 5, United States Code) shall review the regulations of such agency and shall issue regulations on procedures for the disclosure of records under section 552 of title 5, United States Code, in accordance with the amendments made by section 2 [amending this section].

"(b) Requirements.—The regulations of each agency shall include procedures for engaging in dispute resolution through the FOIA Public Liaison and the Office of Government Information Services."

Protected National Security Documents

Pub. L. 111–83, title V, §565, Oct. 28, 2009, 123 Stat. 2184, provided that:

"(a) Short Title.—This section may be cited as the 'Protected National Security Documents Act of 2009'.

"(b) Notwithstanding any other provision of the law to the contrary, no protected document, as defined in subsection (c), shall be subject to disclosure under section 552 of title 5, United States Code[,] or any proceeding under that section.

"(c) Definitions.—In this section:

"(1) Protected document.—The term 'protected document' means any record—

"(A) for which the Secretary of Defense has issued a certification, as described in subsection (d), stating that disclosure of that record would endanger citizens of the United States, members of the United States Armed Forces, or employees of the United States Government deployed outside the United States; and

"(B) that is a photograph that—

"(i) was taken during the period beginning on September 11, 2001, through January 22, 2009; and

"(ii) relates to the treatment of individuals engaged, captured, or detained after September 11, 2001, by the Armed Forces of the United States in operations outside of the United States.

"(2) Photograph.—The term 'photograph' encompasses all photographic images, whether originals or copies, including still photographs, negatives, digital images, films, video tapes, and motion pictures.

"(d) Certification.—

"(1) In general.—For any photograph described under subsection (c)(1), the Secretary of Defense shall issue a certification if the Secretary of Defense determines that disclosure of that photograph would endanger citizens of the United States, members of the United States Armed Forces, or employees of the United States Government deployed outside the United States.

"(2) Certification expiration.—A certification and a renewal of a certification issued pursuant to subsection (d)(3) shall expire 3 years after the date on which the certification or renewal, [sic] is issued by the Secretary of Defense.

"(3) Certification renewal.—The Secretary of Defense may issue—

"(A) a renewal of a certification at any time; and

"(B) more than 1 renewal of a certification.

"(4) Notice to congress.—The Secretary of Defense shall provide Congress a timely notice of the Secretary's issuance of a certification and of a renewal of a certification.

"(e) Rule of Construction.—Nothing in this section shall be construed to preclude the voluntary disclosure of a protected document.

"(f) Effective Date.—This section shall take effect on the date of enactment of this Act [Oct. 28, 2009] and apply to any protected document."

Findings

Pub. L. 110–175, §2, Dec. 31, 2007, 121 Stat. 2524, provided that: "Congress finds that—

"(1) the Freedom of Information Act [probably means Pub. L. 89–487 which amended section 1002 of former Title 5, Executive Departments and Government Officers and Employees, see Historical and Revision notes above] was signed into law on July 4, 1966, because the American people believe that—

"(A) our constitutional democracy, our system of self-government, and our commitment to popular sovereignty depends upon the consent of the governed;

"(B) such consent is not meaningful unless it is informed consent; and

"(C) as Justice Black noted in his concurring opinion in Barr v. Matteo (360 U.S. 564 (1959)), 'The effective functioning of a free government like ours depends largely on the force of an informed public opinion. This calls for the widest possible understanding of the quality of government service rendered by all elective or appointed public officials or employees.';

"(2) the American people firmly believe that our system of government must itself be governed by a presumption of openness;

"(3) the Freedom of Information Act establishes a 'strong presumption in favor of disclosure' as noted by the United States Supreme Court in United States Department of State v. Ray (502 U.S. 164 (1991)), a presumption that applies to all agencies governed by that Act;

"(4) 'disclosure, not secrecy, is the dominant objective of the Act,' as noted by the United States Supreme Court in Department of Air Force v. Rose (425 U.S. 352 (1976));

"(5) in practice, the Freedom of Information Act has not always lived up to the ideals of that Act; and

"(6) Congress should regularly review section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act), in order to determine whether further changes and improvements are necessary to ensure that the Government remains open and accessible to the American people and is always based not upon the 'need to know' but upon the fundamental 'right to know'."

Limitation on Amounts Obligated or Expended From Claims and Judgment Fund

Pub. L. 110–175, §4(b), Dec. 31, 2007, 121 Stat. 2525, provided that: "Notwithstanding section 1304 of title 31, United States Code, no amounts may be obligated or expended from the Claims and Judgment Fund of the United States Treasury to pay the costs resulting from fees assessed under section 552(a)(4)(E) of title 5, United States Code. Any such amounts shall be paid only from funds annually appropriated for any authorized purpose for the Federal agency against which a claim or judgment has been rendered."

Nondisclosure of Certain Products of Commercial Satellite Operations

Pub. L. 108–375, div. A, title IX, §914, Oct. 28, 2004, 118 Stat. 2029, provided that:

"(a) Mandatory Disclosure Requirements Inapplicable.—The requirements to make information available under section 552 of title 5, United States Code, shall not apply to land remote sensing information.

"(b) Land Remote Sensing Information Defined.—In this section, the term 'land remote sensing information'—

"(1) means any data that—

"(A) are collected by land remote sensing; and

"(B) are prohibited from sale to customers other than the United States Government and United States Government-approved customers for reasons of national security pursuant to the terms of an operating license issued pursuant to the Land Remote Sensing Policy Act of 1992 ([former] 15 U.S.C. 5601 et seq.) [now 51 U.S.C. 60101 et seq.]; and

"(2) includes any imagery and other product that is derived from such data and which is prohibited from sale to customers other than the United States Government and United States Government-approved customers for reasons of national security pursuant to the terms of an operating license described in paragraph (1)(B).

"(c) State or Local Government Disclosures.—Land remote sensing information provided by the head of a department or agency of the United States to a State, local, or tribal government may not be made available to the general public under any State, local, or tribal law relating to the disclosure of information or records.

"(d) Safeguarding Information.—The head of each department or agency of the United States having land remote sensing information within that department or agency or providing such information to a State, local, or tribal government shall take such actions, commensurate with the sensitivity of that information, as are necessary to protect that information from disclosure other than in accordance with this section and other applicable law.

"(e) Additional Definition.—In this section, the term 'land remote sensing' has the meaning given such term in section 3 of the Land Remote Sensing Policy Act of 1992 ([former] 15 U.S.C. 5602) [now 51 U.S.C. 60101].

"(f) Disclosure to Congress.—Nothing in this section shall be construed to authorize the withholding of information from the appropriate committees of Congress."

Disclosure of Arson, Explosive, or Firearm Records

Pub. L. 108–7, div. J, title VI, §644, Feb. 20, 2003, 117 Stat. 473, provided that: "No funds appropriated under this Act or any other Act with respect to any fiscal year shall be available to take any action based upon any provision of 5 U.S.C. 552 with respect to records collected or maintained pursuant to 18 U.S.C. 846(b), 923(g)(3) or 923(g)(7), or provided by Federal, State, local, or foreign law enforcement agencies in connection with arson or explosives incidents or the tracing of a firearm, except that such records may continue to be disclosed to the extent and in the manner that records so collected, maintained, or obtained have been disclosed under 5 U.S.C. 552 prior to the date of the enactment of this Act [Feb. 20, 2003]."

Disclosure of Information on Japanese Imperial Government

Pub. L. 106–567, title VIII, Dec. 27, 2000, 114 Stat. 2864, as amended by Pub. L. 108–199, div. H, §163, Jan. 23, 2004, 118 Stat. 452; Pub. L. 109–5, §1, Mar. 25, 2005, 119 Stat. 19, provided that:

"SEC. 801. SHORT TITLE.

"This title may be cited as the 'Japanese Imperial Government Disclosure Act of 2000'.

"SEC. 802. DESIGNATION.

"(a) Definitions.—In this section:

"(1) Agency.—The term 'agency' has the meaning given such term under section 551 of title 5, United States Code.

"(2) Interagency group.—The term 'Interagency Group' means the Nazi War Crimes and Japanese Imperial Government Records Interagency Working Group established under subsection (b).

"(3) Japanese imperial government records.—The term 'Japanese Imperial Government records' means classified records or portions of records that pertain to any person with respect to whom the United States Government, in its sole discretion, has grounds to believe ordered, incited, assisted, or otherwise participated in the experimentation on, and persecution of, any person because of race, religion, national origin, or political opinion, during the period beginning September 18, 1931, and ending on December 31, 1948, under the direction of, or in association with—

"(A) the Japanese Imperial Government;

"(B) any government in any area occupied by the military forces of the Japanese Imperial Government;

"(C) any government established with the assistance or cooperation of the Japanese Imperial Government; or

"(D) any government which was an ally of the Japanese Imperial Government.

"(4) Record.—The term 'record' means a Japanese Imperial Government record.

"(b) Establishment of Interagency Group.—

"(1) In general.—Not later than 60 days after the date of the enactment of this Act [Dec. 27, 2000], the President shall designate the Working Group established under the Nazi War Crimes Disclosure Act (Public Law 105–246; 5 U.S.C. 552 note) to also carry out the purposes of this title with respect to Japanese Imperial Government records, and that Working Group shall remain in existence for 6 years after the date on which this title takes effect. Such Working Group is redesignated as the 'Nazi War Crimes and Japanese Imperial Government Records Interagency Working Group'.

"(2) Membership.—[Amended Pub. L. 105–246, set out as a note below.]

"(c) Functions.—Not later than 1 year after the date of the enactment of this Act [Dec. 27, 2000], the Interagency Group shall, to the greatest extent possible consistent with section 803—

"(1) locate, identify, inventory, recommend for declassification, and make available to the public at the National Archives and Records Administration, all classified Japanese Imperial Government records of the United States;

"(2) coordinate with agencies and take such actions as necessary to expedite the release of such records to the public; and

"(3) submit a report to Congress, including the Committee on Government Reform [now Committee on Oversight and Government Reform] and the Permanent Select Committee on Intelligence of the House of Representatives, and the Committee on the Judiciary and the Select Committee on Intelligence of the Senate, describing all such records, the disposition of such records, and the activities of the Interagency Group and agencies under this section.

"(d) Funding.—There is authorized to be appropriated such sums as may be necessary to carry out the provisions of this title.

"SEC. 803. REQUIREMENT OF DISCLOSURE OF RECORDS.

"(a) Release of Records.—Subject to subsections (b), (c), and (d), the Japanese Imperial Government Records Interagency Working Group shall release in their entirety Japanese Imperial Government records.

"(b) Exemptions.—An agency head may exempt from release under subsection (a) specific information, that would—

"(1) constitute an unwarranted invasion of personal privacy;

"(2) reveal the identity of a confidential human source, or reveal information about an intelligence source or method when the unauthorized disclosure of that source or method would damage the national security interests of the United States;

"(3) reveal information that would assist in the development or use of weapons of mass destruction;

"(4) reveal information that would impair United States cryptologic systems or activities;

"(5) reveal information that would impair the application of state-of-the-art technology within a United States weapon system;

"(6) reveal United States military war plans that remain in effect;

"(7) reveal information that would impair relations between the United States and a foreign government, or undermine ongoing diplomatic activities of the United States;

"(8) reveal information that would impair the current ability of United States Government officials to protect the President, Vice President, and other officials for whom protection services are authorized in the interest of national security;

"(9) reveal information that would impair current national security emergency preparedness plans; or

"(10) violate a treaty or other international agreement.

"(c) Applications of Exemptions.—

"(1) In general.—In applying the exemptions provided in paragraphs (2) through (10) of subsection (b), there shall be a presumption that the public interest will be served by disclosure and release of the records of the Japanese Imperial Government. The exemption may be asserted only when the head of the agency that maintains the records determines that disclosure and release would be harmful to a specific interest identified in the exemption. An agency head who makes such a determination shall promptly report it to the committees of Congress with appropriate jurisdiction, including the Committee on the Judiciary and the Select Committee on Intelligence of the Senate and the Committee on Government Reform [now Committee on Oversight and Government Reform] and the Permanent Select Committee on Intelligence of the House of Representatives.

"(2) Application of title 5.—A determination by an agency head to apply an exemption provided in paragraphs (2) through (9) of subsection (b) shall be subject to the same standard of review that applies in the case of records withheld under section 552(b)(1) of title 5, United States Code.

"(d) Records Related to Investigations or Prosecutions.—This section shall not apply to records—

"(1) related to or supporting any active or inactive investigation, inquiry, or prosecution by the Office of Special Investigations of the Department of Justice; or

"(2) solely in the possession, custody, or control of the Office of Special Investigations.

"SEC. 804. EXPEDITED PROCESSING OF REQUESTS FOR JAPANESE IMPERIAL GOVERNMENT RECORDS.

"For purposes of expedited processing under section 552(a)(6)(E) of title 5, United States Code, any person who was persecuted in the manner described in section 802(a)(3) and who requests a Japanese Imperial Government record shall be deemed to have a compelling need for such record.

"SEC. 805. EFFECTIVE DATE.

"The provisions of this title shall take effect on the date that is 90 days after the date of the enactment of this Act [Dec. 27, 2000]."

Nazi War Crimes Disclosure

Pub. L. 105–246, Oct. 8, 1998, 112 Stat. 1859, as amended by Pub. L. 106–567, §802(b)(2), Dec. 27, 2000, 114 Stat. 2865, provided that:

"SECTION 1. SHORT TITLE.

"This Act may be cited as the 'Nazi War Crimes Disclosure Act'.

"SEC. 2. ESTABLISHMENT OF NAZI WAR CRIMINAL RECORDS INTERAGENCY WORKING GROUP.

"(a) Definitions.—In this section the term—

"(1) 'agency' has the meaning given such term under section 551 of title 5, United States Code;

"(2) 'Interagency Group' means the Nazi War Criminal Records Interagency Working Group [redesignated Nazi War Crimes and Japanese Imperial Government Records Interagency Working Group, see section 802(b)(1) of Pub. L. 106–567, set out above] established under subsection (b);

"(3) 'Nazi war criminal records' has the meaning given such term under section 3 of this Act; and

"(4) 'record' means a Nazi war criminal record.

"(b) Establishment of Interagency Group.—

"(1) In general.—Not later than 60 days after the date of enactment of this Act [Oct. 8, 1998], the President shall establish the Nazi War Criminal Records Interagency Working Group, which shall remain in existence for 3 years after the date the Interagency Group is established.

"(2) Membership.—The President shall appoint to the Interagency Group individuals whom the President determines will most completely and effectively carry out the functions of the Interagency Group within the time limitations provided in this section, including the Director of the Holocaust Museum, the Historian of the Department of State, the Archivist of the United States, the head of any other agency the President considers appropriate, and no more than 4 other persons who shall be members of the public, of whom 3 shall be persons appointed under the provisions of this Act in effect on October 8, 1998..[sic] The head of an agency appointed by the President may designate an appropriate officer to serve on the Interagency Group in lieu of the head of such agency.

"(3) Initial meeting.—Not later than 90 days after the date of enactment of this Act, the Interagency Group shall hold an initial meeting and begin the functions required under this section.

"(c) Functions.—Not later than 1 year after the date of enactment of this Act [Oct. 8, 1998], the Interagency Group shall, to the greatest extent possible consistent with section 3 of this Act—

"(1) locate, identify, inventory, recommend for declassification, and make available to the public at the National Archives and Records Administration, all classified Nazi war criminal records of the United States;

"(2) coordinate with agencies and take such actions as necessary to expedite the release of such records to the public; and

"(3) submit a report to Congress, including the Committee on the Judiciary of the Senate and the Committee on Government Reform and Oversight [now Committee on Oversight and Government Reform] of the House of Representatives, describing all such records, the disposition of such records, and the activities of the Interagency Group and agencies under this section.

"(d) Funding.—There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act.

"SEC. 3. REQUIREMENT OF DISCLOSURE OF RECORDS REGARDING PERSONS WHO COMMITTED NAZI WAR CRIMES.

"(a) Nazi War Criminal Records.—For purposes of this Act, the term 'Nazi war criminal records' means classified records or portions of records that—

"(1) pertain to any person with respect to whom the United States Government, in its sole discretion, has grounds to believe ordered, incited, assisted, or otherwise participated in the persecution of any person because of race, religion, national origin, or political opinion, during the period beginning on March 23, 1933, and ending on May 8, 1945, under the direction of, or in association with—

"(A) the Nazi government of Germany;

"(B) any government in any area occupied by the military forces of the Nazi government of Germany;

"(C) any government established with the assistance or cooperation of the Nazi government of Germany; or

"(D) any government which was an ally of the Nazi government of Germany; or

"(2) pertain to any transaction as to which the United States Government, in its sole discretion, has grounds to believe—

"(A) involved assets taken from persecuted persons during the period beginning on March 23, 1933, and ending on May 8, 1945, by, under the direction of, on behalf of, or under authority granted by the Nazi government of Germany or any nation then allied with that government; and

"(B) such transaction was completed without the assent of the owners of those assets or their heirs or assigns or other legitimate representatives.

"(b) Release of Records.—

"(1) In general.—Subject to paragraphs (2), (3), and (4), the Nazi War Criminal Records Interagency Working Group shall release in their entirety Nazi war criminal records that are described in subsection (a).

"(2) Exception for privacy, etc.—An agency head may exempt from release under paragraph (1) specific information, that would—

"(A) constitute a clearly unwarranted invasion of personal privacy;

"(B) reveal the identity of a confidential human source, or reveal information about the application of an intelligence source or method, or reveal the identity of a human intelligence source when the unauthorized disclosure of that source would clearly and demonstrably damage the national security interests of the United States;

"(C) reveal information that would assist in the development or use of weapons of mass destruction;

"(D) reveal information that would impair United States cryptologic systems or activities;

"(E) reveal information that would impair the application of state-of-the-art technology within a United States weapon system;

"(F) reveal actual United States military war plans that remain in effect;

"(G) reveal information that would seriously and demonstrably impair relations between the United States and a foreign government, or seriously and demonstrably undermine ongoing diplomatic activities of the United States;

"(H) reveal information that would clearly and demonstrably impair the current ability of United States Government officials to protect the President, Vice President, and other officials for whom protection services, in the interest of national security, are authorized;

"(I) reveal information that would seriously and demonstrably impair current national security emergency preparedness plans; or

"(J) violate a treaty or international agreement.

"(3) Application of exemptions.—

"(A) In general.—In applying the exemptions listed in subparagraphs (B) through (J) of paragraph (2), there shall be a presumption that the public interest in the release of Nazi war criminal records will be served by disclosure and release of the records. Assertion of such exemption may only be made when the agency head determines that disclosure and release would be harmful to a specific interest identified in the exemption. An agency head who makes such a determination shall promptly report it to the committees of Congress with appropriate jurisdiction, including the Committee on the Judiciary of the Senate and the Committee on Government Reform and Oversight [now Committee on Oversight and Government Reform] of the House of Representatives. The exemptions set forth in paragraph (2) shall constitute the only authority pursuant to which an agency head may exempt records otherwise subject to release under paragraph (1).

"(B) Application of title 5.—A determination by an agency head to apply an exemption listed in subparagraphs (B) through (I) of paragraph (2) shall be subject to the same standard of review that applies in the case of records withheld under section 552(b)(1) of title 5, United States Code.

"(4) Limitation on application.—This subsection shall not apply to records—

"(A) related to or supporting any active or inactive investigation, inquiry, or prosecution by the Office of Special Investigations of the Department of Justice; or

"(B) solely in the possession, custody, or control of that office.

"(c) Inapplicability of National Security Act of 1947 Exemption.—Section 701(a) of the National Security Act of 1947 (50 U.S.C. 431[(a)]) [now 50 U.S.C. 3141(a)] shall not apply to any operational file, or any portion of any operational file, that constitutes a Nazi war criminal record under section 3 of this Act.

"SEC. 4. EXPEDITED PROCESSING OF FOIA REQUESTS FOR NAZI WAR CRIMINAL RECORDS.

"(a) Expedited Processing.—For purposes of expedited processing under section 552(a)(6)(E) of title 5, United States Code, any requester of a Nazi war criminal record shall be deemed to have a compelling need for such record.

"(b) Requester.—For purposes of this section, the term 'requester' means any person who was persecuted in the manner described under section 3(a)(1) of this Act who requests a Nazi war criminal record.

"SEC. 5. EFFECTIVE DATE.

"This Act and the amendments made by this Act shall take effect on the date that is 90 days after the date of enactment of this Act [Oct. 8, 1998]."

Congressional Statement of Findings and Purpose; Public Access to Information in Electronic Format

Section 2 of Pub. L. 104–231 provided that:

"(a) Findings.—The Congress finds that—

"(1) the purpose of section 552 of title 5, United States Code, popularly known as the Freedom of Information Act, is to require agencies of the Federal Government to make certain agency information available for public inspection and copying and to establish and enable enforcement of the right of any person to obtain access to the records of such agencies, subject to statutory exemptions, for any public or private purpose;

"(2) since the enactment of the Freedom of Information Act in 1966, and the amendments enacted in 1974 and 1986, the Freedom of Information Act has been a valuable means through which any person can learn how the Federal Government operates;

"(3) the Freedom of Information Act has led to the disclosure of waste, fraud, abuse, and wrongdoing in the Federal Government;

"(4) the Freedom of Information Act has led to the identification of unsafe consumer products, harmful drugs, and serious health hazards;

"(5) Government agencies increasingly use computers to conduct agency business and to store publicly valuable agency records and information; and

"(6) Government agencies should use new technology to enhance public access to agency records and information.

"(b) Purposes.—The purposes of this Act [see Short Title of 1996 Amendment note above] are to—

"(1) foster democracy by ensuring public access to agency records and information;

"(2) improve public access to agency records and information;

"(3) ensure agency compliance with statutory time limits; and

"(4) maximize the usefulness of agency records and information collected, maintained, used, retained, and disseminated by the Federal Government."

Freedom of Information Act Exemption for Certain Open Skies Treaty Data

Pub. L. 103–236, title V, §533, Apr. 30, 1994, 108 Stat. 480, provided that:

"(a) In General.—Data with respect to a foreign country collected by sensors during observation flights conducted in connection with the Treaty on Open Skies, including flights conducted prior to entry into force of the treaty, shall be exempt from disclosure under the Freedom of Information Act—

"(1) if the country has not disclosed the data to the public; and

"(2) if the country has not, acting through the Open Skies Consultative Commission or any other diplomatic channel, authorized the United States to disclose the data to the public.

"(b) Statutory Construction.—This section constitutes a specific exemption within the meaning of section 552(b)(3) of title 5, United States Code.

"(c) Definitions.—For the purposes of this section—

"(1) the term 'Freedom of Information Act' means the provisions of section 552 of title 5, United States Code;

"(2) the term 'Open Skies Consultative Commission' means the commission established pursuant to Article X of the Treaty on Open Skies; and

"(3) the term 'Treaty on Open Skies' means the Treaty on Open Skies, signed at Helsinki on March 24, 1992."

Classified National Security Information

For provisions relating to a response to a request for information under this section when the fact of its existence or nonexistence is itself classified or when it was originally classified by another agency, see Ex. Ord. No. 13526, §3.6, Dec. 29, 2009, 75 F.R. 718, set out as a note under section 3161 of Title 50, War and National Defense.

Executive Order No. 12174

Ex. Ord. No. 12174, Nov. 30, 1979, 44 F.R. 69609, which related to minimizing Federal paperwork, was revoked by Ex. Ord. No. 12291, Feb. 17, 1981, 46 F.R. 13193, formerly set out as a note under section 601 of this title.

Ex. Ord. No. 12600. Predisclosure Notification Procedures for Confidential Commercial Information

Ex. Ord. No. 12600, June 23, 1987, 52 F.R. 23781, provided:

By the authority vested in me as President by the Constitution and statutes of the United States of America, and in order to provide predisclosure notification procedures under the Freedom of Information Act [5 U.S.C. 552] concerning confidential commercial information, and to make existing agency notification provisions more uniform, it is hereby ordered as follows:

Section 1. The head of each Executive department and agency subject to the Freedom of Information Act [5 U.S.C. 552] shall, to the extent permitted by law, establish procedures to notify submitters of records containing confidential commercial information as described in section 3 of this Order, when those records are requested under the Freedom of Information Act [FOIA], 5 U.S.C. 552, as amended, if after reviewing the request, the responsive records, and any appeal by the requester, the department or agency determines that it may be required to disclose the records. Such notice requires that an agency use good-faith efforts to advise submitters of confidential commercial information of the procedures established under this Order. Further, where notification of a voluminous number of submitters is required, such notification may be accomplished by posting or publishing the notice in a place reasonably calculated to accomplish notification.

Sec. 2. For purposes of this Order, the following definitions apply:

(a) "Confidential commercial information" means records provided to the government by a submitter that arguably contain material exempt from release under Exemption 4 of the Freedom of Information Act, 5 U.S.C. 552(b)(4), because disclosure could reasonably be expected to cause substantial competitive harm.

(b) "Submitter" means any person or entity who provides confidential commercial information to the government. The term "submitter" includes, but is not limited to, corporations, state governments, and foreign governments.

Sec. 3. (a) For confidential commercial information submitted prior to January 1, 1988, the head of each Executive department or agency shall, to the extent permitted by law, provide a submitter with notice pursuant to section 1 whenever:

(i) the records are less than 10 years old and the information has been designated by the submitter as confidential commercial information; or

(ii) the department or agency has reason to believe that disclosure of the information could reasonably be expected to cause substantial competitive harm.

(b) For confidential commercial information submitted on or after January 1, 1988, the head of each Executive department or agency shall, to the extent permitted by law, establish procedures to permit submitters of confidential commercial information to designate, at the time the information is submitted to the Federal government or a reasonable time thereafter, any information the disclosure of which the submitter claims could reasonably be expected to cause substantial competitive harm. Such agency procedures may provide for the expiration, after a specified period of time or changes in circumstances, of designations of competitive harm made by submitters. Additionally, such procedures may permit the agency to designate specific classes of information that will be treated by the agency as if the information had been so designated by the submitter. The head of each Executive department or agency shall, to the extent permitted by law, provide the submitter notice in accordance with section 1 of this Order whenever the department or agency determines that it may be required to disclose records:

(i) designated pursuant to this subsection; or

(ii) the disclosure of which the department or agency has reason to believe could reasonably be expected to cause substantial competitive harm.

Sec. 4. When notification is made pursuant to section 1, each agency's procedures shall, to the extent permitted by law, afford the submitter a reasonable period of time in which the submitter or its designee may object to the disclosure of any specified portion of the information and to state all grounds upon which disclosure is opposed.

Sec. 5. Each agency shall give careful consideration to all such specified grounds for nondisclosure prior to making an administrative determination of the issue. In all instances when the agency determines to disclose the requested records, its procedures shall provide that the agency give the submitter a written statement briefly explaining why the submitter's objections are not sustained. Such statement shall, to the extent permitted by law, be provided a reasonable number of days prior to a specified disclosure date.

Sec. 6. Whenever a FOIA requester brings suit seeking to compel disclosure of confidential commercial information, each agency's procedures shall require that the submitter be promptly notified.

Sec. 7. The designation and notification procedures required by this Order shall be established by regulations, after notice and public comment. If similar procedures or regulations already exist, they should be reviewed for conformity and revised where necessary. Existing procedures or regulations need not be modified if they are in compliance with this Order.

Sec. 8. The notice requirements of this Order need not be followed if:

(a) The agency determines that the information should not be disclosed;

(b) The information has been published or has been officially made available to the public;

(c) Disclosure of the information is required by law (other than 5 U.S.C. 552);

(d) The disclosure is required by an agency rule that (1) was adopted pursuant to notice and public comment, (2) specifies narrow classes of records submitted to the agency that are to be released under the Freedom of Information Act [5 U.S.C. 552], and (3) provides in exceptional circumstances for notice when the submitter provides written justification, at the time the information is submitted or a reasonable time thereafter, that disclosure of the information could reasonably be expected to cause substantial competitive harm;

(e) The information requested is not designated by the submitter as exempt from disclosure in accordance with agency regulations promulgated pursuant to section 7, when the submitter had an opportunity to do so at the time of submission of the information or a reasonable time thereafter, unless the agency has substantial reason to believe that disclosure of the information would result in competitive harm; or

(f) The designation made by the submitter in accordance with agency regulations promulgated pursuant to section 7 appears obviously frivolous; except that, in such case, the agency must provide the submitter with written notice of any final administrative disclosure determination within a reasonable number of days prior to the specified disclosure date.

Sec. 9. Whenever an agency notifies a submitter that it may be required to disclose information pursuant to section 1 of this Order, the agency shall also notify the requester that notice and an opportunity to comment are being provided the submitter. Whenever an agency notifies a submitter of a final decision pursuant to section 5 of this Order, the agency shall also notify the requester.

Sec. 10. This Order is intended only to improve the internal management of the Federal government, and is not intended to create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers, or any person.

Ronald Reagan.      

Ex. Ord. No. 13110. Nazi War Crimes and Japanese Imperial Government Records Interagency Working Group

Ex. Ord. No. 13110, Jan. 11, 1999, 64 F.R. 2419, provided:

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Nazi War Crimes Disclosure Act (Public Law 105–246) (the "Act") [5 U.S.C. 552 note], it is hereby ordered as follows:

Section 1. Establishment of Working Group. There is hereby established the Nazi War Criminal Records Interagency Working Group [now Nazi War Crimes and Japanese Imperial Government Records Interagency Working Group] (Working Group). The function of the Group shall be to locate, inventory, recommend for declassification, and make available to the public at the National Archives and Records Administration all classified Nazi war criminal records of the United States, subject to certain designated exceptions as provided in the Act. The Working Group shall coordinate with agencies and take such actions as necessary to expedite the release of such records to the public.

Sec. 2. Schedule. The Working Group should complete its work to the greatest extent possible and report to the Congress within 1 year.

Sec. 3. Membership. (a) The Working Group shall be composed of the following members:

(1) Archivist of the United States (who shall serve as Chair of the Working Group);

(2) Secretary of Defense;

(3) Attorney General;

(4) Director of Central Intelligence;

(5) Director of the Federal Bureau of Investigation;

(6) Director of the United States Holocaust Memorial Museum;

(7) Historian of the Department of State; and

(8) Three other persons appointed by the President.

(b) The Senior Director for Records and Access Management of the National Security Council will serve as the liaison to and attend the meetings of the Working Group. Members of the Working Group who are full-time Federal officials may serve on the Working Group through designees.

Sec. 4. Administration. (a) To the extent permitted by law and subject to the availability of appropriations, the National Archives and Records Administration shall provide the Working Group with funding, administrative services, facilities, staff, and other support services necessary for the performance of the functions of the Working Group.

(b) The Working Group shall terminate 3 years from the date of this Executive order.

William J. Clinton.      

Ex. Ord. No. 13392. Improving Agency Disclosure of Information

Ex. Ord. No. 13392, Dec. 14, 2005, 70 F.R. 75373, provided:

By the authority vested in me as President by the Constitution and the laws of the United States of America, and to ensure appropriate agency disclosure of information, and consistent with the goals of section 552 of title 5, United States Code, it is hereby ordered as follows:

Section 1. Policy.

(a) The effective functioning of our constitutional democracy depends upon the participation in public life of a citizenry that is well informed. For nearly four decades, the Freedom of Information Act (FOIA) [5 U.S.C. 552] has provided an important means through which the public can obtain information regarding the activities of Federal agencies. Under the FOIA, the public can obtain records from any Federal agency, subject to the exemptions enacted by the Congress to protect information that must be held in confidence for the Government to function effectively or for other purposes.

(b) FOIA requesters are seeking a service from the Federal Government and should be treated as such. Accordingly, in responding to a FOIA request, agencies shall respond courteously and appropriately. Moreover, agencies shall provide FOIA requesters, and the public in general, with citizen-centered ways to learn about the FOIA process, about agency records that are publicly available (e.g., on the agency's website), and about the status of a person's FOIA request and appropriate information about the agency's response.

(c) Agency FOIA operations shall be both results-oriented and produce results. Accordingly, agencies shall process requests under the FOIA in an efficient and appropriate manner and achieve tangible, measurable improvements in FOIA processing. When an agency's FOIA program does not produce such results, it should be reformed, consistent with available resources appropriated by the Congress and applicable law, to increase efficiency and better reflect the policy goals and objectives of this order.

(d) A citizen-centered and results-oriented approach will improve service and performance, thereby strengthening compliance with the FOIA, and will help avoid disputes and related litigation.

Sec. 2. Agency Chief FOIA Officers.

(a) Designation. The head of each agency shall designate within 30 days of the date of this order a senior official of such agency (at the Assistant Secretary or equivalent level), to serve as the Chief FOIA Officer of that agency. The head of the agency shall promptly notify the Director of the Office of Management and Budget (OMB Director) and the Attorney General of such designation and of any changes thereafter in such designation.

(b) General Duties. The Chief FOIA Officer of each agency shall, subject to the authority of the head of the agency:

(i) have agency-wide responsibility for efficient and appropriate compliance with the FOIA;

(ii) monitor FOIA implementation throughout the agency, including through the use of meetings with the public to the extent deemed appropriate by the agency's Chief FOIA Officer, and keep the head of the agency, the chief legal officer of the agency, and the Attorney General appropriately informed of the agency's performance in implementing the FOIA, including the extent to which the agency meets the milestones in the agency's plan under section 3(b) of this order and training and reporting standards established consistent with applicable law and this order;

(iii) recommend to the head of the agency such adjustments to agency practices, policies, personnel, and funding as may be necessary to carry out the policy set forth in section 1 of this order;

(iv) review and report, through the head of the agency, at such times and in such formats as the Attorney General may direct, on the agency's performance in implementing the FOIA; and

(v) facilitate public understanding of the purposes of the FOIA's statutory exemptions by including concise descriptions of the exemptions in both the agency's FOIA handbook issued under section 552(g) of title 5, United States Code, and the agency's annual FOIA report, and by providing an overview, where appropriate, of certain general categories of agency records to which those exemptions apply.

(c) FOIA Requester Service Center and FOIA Public Liaisons. In order to ensure appropriate communication with FOIA requesters:

(i) Each agency shall establish one or more FOIA Requester Service Centers (Center), as appropriate, which shall serve as the first place that a FOIA requester can contact to seek information concerning the status of the person's FOIA request and appropriate information about the agency's FOIA response. The Center shall include appropriate staff to receive and respond to inquiries from FOIA requesters;

(ii) The agency Chief FOIA Officer shall designate one or more agency officials, as appropriate, as FOIA Public Liaisons, who may serve in the Center or who may serve in a separate office. FOIA Public Liaisons shall serve as supervisory officials to whom a FOIA requester can raise concerns about the service the FOIA requester has received from the Center, following an initial response from the Center staff. FOIA Public Liaisons shall seek to ensure a service-oriented response to FOIA requests and FOIA-related inquiries. For example, the FOIA Public Liaison shall assist, as appropriate, in reducing delays, increasing transparency and understanding of the status of requests, and resolving disputes. FOIA Public Liaisons shall report to the agency Chief FOIA Officer on their activities and shall perform their duties consistent with applicable law and agency regulations;

(iii) In addition to the services to FOIA requesters provided by the Center and FOIA Public Liaisons, the agency Chief FOIA Officer shall also consider what other FOIA-related assistance to the public should appropriately be provided by the agency;

(iv) In establishing the Centers and designating FOIA Public Liaisons, the agency shall use, as appropriate, existing agency staff and resources. A Center shall have appropriate staff to receive and respond to inquiries from FOIA requesters;

(v) As determined by the agency Chief FOIA Officer, in consultation with the FOIA Public Liaisons, each agency shall post appropriate information about its Center or Centers on the agency's website, including contact information for its FOIA Public Liaisons. In the case of an agency without a website, the agency shall publish the information on the Firstgov.gov website or, in the case of any agency with neither a website nor the capability to post on the Firstgov.gov website, in the Federal Register; and

(vi) The agency Chief FOIA Officer shall ensure that the agency has in place a method (or methods), including through the use of the Center, to receive and respond promptly and appropriately to inquiries from FOIA requesters about the status of their requests. The Chief FOIA Officer shall also consider, in consultation with the FOIA Public Liaisons, as appropriate, whether the agency's implementation of other means (such as tracking numbers for requests, or an agency telephone or Internet hotline) would be appropriate for responding to status inquiries.

Sec. 3. Review, Plan, and Report.

(a) Review. Each agency's Chief FOIA Officer shall conduct a review of the agency's FOIA operations to determine whether agency practices are consistent with the policies set forth in section 1 of this order. In conducting this review, the Chief FOIA Officer shall:

(i) evaluate, with reference to numerical and statistical benchmarks where appropriate, the agency's administration of the FOIA, including the agency's expenditure of resources on FOIA compliance and the extent to which, if any, requests for records have not been responded to within the statutory time limit (backlog);

(ii) review the processes and practices by which the agency assists and informs the public regarding the FOIA process;

(iii) examine the agency's:

(A) use of information technology in responding to FOIA requests, including without limitation the tracking of FOIA requests and communication with requesters;

(B) practices with respect to requests for expedited processing; and

(C) implementation of multi-track processing if used by such agency;

(iv) review the agency's policies and practices relating to the availability of public information through websites and other means, including the use of websites to make available the records described in section 552(a)(2) of title 5, United States Code; and

(v) identify ways to eliminate or reduce its FOIA backlog, consistent with available resources and taking into consideration the volume and complexity of the FOIA requests pending with the agency.

(b) Plan.

(i) Each agency's Chief FOIA Officer shall develop, in consultation as appropriate with the staff of the agency (including the FOIA Public Liaisons), the Attorney General, and the OMB Director, an agency-specific plan to ensure that the agency's administration of the FOIA is in accordance with applicable law and the policies set forth in section 1 of this order. The plan, which shall be submitted to the head of the agency for approval, shall address the agency's implementation of the FOIA during fiscal years 2006 and 2007.

(ii) The plan shall include specific activities that the agency will implement to eliminate or reduce the agency's FOIA backlog, including (as applicable) changes that will make the processing of FOIA requests more streamlined and effective, as well as increased reliance on the dissemination of records that can be made available to the public through a website or other means that do not require the public to make a request for the records under the FOIA.

(iii) The plan shall also include activities to increase public awareness of FOIA processing, including as appropriate, expanded use of the agency's Center and its FOIA Public Liaisons.

(iv) The plan shall also include, taking appropriate account of the resources available to the agency and the mission of the agency, concrete milestones, with specific timetables and outcomes to be achieved, by which the head of the agency, after consultation with the OMB Director, shall measure and evaluate the agency's success in the implementation of the plan.

(c) Agency Reports to the Attorney General and OMB Director.

(i) The head of each agency shall submit a report, no later than 6 months from the date of this order, to the Attorney General and the OMB Director that summarizes the results of the review under section 3(a) of this order and encloses a copy of the agency's plan under section 3(b) of this order. The agency shall publish a copy of the agency's report on the agency's website or, in the case of an agency without a website, on the Firstgov.gov website, or, in the case of any agency with neither a website nor the capability to publish on the Firstgov.gov website, in the Federal Register.

(ii) The head of each agency shall include in the agency's annual FOIA reports for fiscal years 2006 and 2007 a report on the agency's development and implementation of its plan under section 3(b) of this order and on the agency's performance in meeting the milestones set forth in that plan, consistent with any related guidelines the Attorney General may issue under section 552(e) of title 5, United States Code.

(iii) If the agency does not meet a milestone in its plan, the head of the agency shall:

(A) identify this deficiency in the annual FOIA report to the Attorney General;

(B) explain in the annual report the reasons for the agency's failure to meet the milestone;

(C) outline in the annual report the steps that the agency has already taken, and will be taking, to address the deficiency; and

(D) report this deficiency to the President's Management Council.

Sec. 4. Attorney General.

(a) Report. The Attorney General, using the reports submitted by the agencies under subsection 3(c)(i) of this order and the information submitted by agencies in their annual FOIA reports for fiscal year 2005, shall submit to the President, no later than 10 months from the date of this order, a report on agency FOIA implementation. The Attorney General shall consult the OMB Director in the preparation of the report and shall include in the report appropriate recommendations on administrative or other agency actions for continued agency dissemination and release of public information. The Attorney General shall thereafter submit two further annual reports, by June 1, 2007, and June 1, 2008, that provide the President with an update on the agencies' implementation of the FOIA and of their plans under section 3(b) of this order.

(b) Guidance. The Attorney General shall issue such instructions and guidance to the heads of departments and agencies as may be appropriate to implement sections 3(b) and 3(c) of this order.

Sec. 5. OMB Director. The OMB Director may issue such instructions to the heads of agencies as are necessary to implement this order, other than sections 3(b) and 3(c) of this order.

Sec. 6. Definitions. As used in this order:

(a) the term "agency" has the same meaning as the term "agency" under section 552(f)(1) of title 5, United States Code; and

(b) the term "record" has the same meaning as the term "record" under section 552(f)(2) of title 5, United States Code.

Sec. 7. General Provisions.

(a) The agency reviews under section 3(a) of this order and agency plans under section 3(b) of this order shall be conducted and developed in accordance with applicable law and applicable guidance issued by the President, the Attorney General, and the OMB Director, including the laws and guidance regarding information technology and the dissemination of information.

(b) This order:

(i) shall be implemented in a manner consistent with applicable law and subject to the availability of appropriations;

(ii) shall not be construed to impair or otherwise affect the functions of the OMB Director relating to budget, legislative, or administrative proposals; and

(iii) is intended only to improve the internal management of the executive branch and is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by a party against the United States, its departments, agencies, instrumentalities, or entities, its officers or employees, or any other person.

George W. Bush.      

Ex. Ord. No. 13642. Making Open and Machine Readable the New Default for Government Information

Ex. Ord. No. 13642, May 9, 2013, 78 F.R. 28111, provided:

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1. General Principles. Openness in government strengthens our democracy, promotes the delivery of efficient and effective services to the public, and contributes to economic growth. As one vital benefit of open government, making information resources easy to find, accessible, and usable can fuel entrepreneurship, innovation, and scientific discovery that improves Americans' lives and contributes significantly to job creation.

Decades ago, the U.S. Government made both weather data and the Global Positioning System freely available. Since that time, American entrepreneurs and innovators have utilized these resources to create navigation systems, weather newscasts and warning systems, location-based applications, precision farming tools, and much more, improving Americans' lives in countless ways and leading to economic growth and job creation. In recent years, thousands of Government data resources across fields such as health and medicine, education, energy, public safety, global development, and finance have been posted in machine-readable form for free public use on Data.gov. Entrepreneurs and innovators have continued to develop a vast range of useful new products and businesses using these public information resources, creating good jobs in the process.

To promote continued job growth, Government efficiency, and the social good that can be gained from opening Government data to the public, the default state of new and modernized Government information resources shall be open and machine readable. Government information shall be managed as an asset throughout its life cycle to promote interoperability and openness, and, wherever possible and legally permissible, to ensure that data are released to the public in ways that make the data easy to find, accessible, and usable. In making this the new default state, executive departments and agencies (agencies) shall ensure that they safeguard individual privacy, confidentiality, and national security.

Sec. 2. Open Data Policy. (a) The Director of the Office of Management and Budget (OMB), in consultation with the Chief Information Officer (CIO), Chief Technology Officer (CTO), and Administrator of the Office of Information and Regulatory Affairs (OIRA), shall issue an Open Data Policy to advance the management of Government information as an asset, consistent with my memorandum of January 21, 2009 (Transparency and Open Government), OMB Memorandum M–10–06 (Open Government Directive), OMB and National Archives and Records Administration Memorandum M–12–18 (Managing Government Records Directive), the Office of Science and Technology Policy Memorandum of February 22, 2013 (Increasing Access to the Results of Federally Funded Scientific Research), and the CIO's strategy entitled "Digital Government: Building a 21st Century Platform to Better Serve the American People." The Open Data Policy shall be updated as needed.

(b) Agencies shall implement the requirements of the Open Data Policy and shall adhere to the deadlines for specific actions specified therein. When implementing the Open Data Policy, agencies shall incorporate a full analysis of privacy, confidentiality, and security risks into each stage of the information lifecycle to identify information that should not be released. These review processes should be overseen by the senior agency official for privacy. It is vital that agencies not release information if doing so would violate any law or policy, or jeopardize privacy, confidentiality, or national security.

Sec. 3. Implementation of the Open Data Policy. To facilitate effective Government-wide implementation of the Open Data Policy, I direct the following:

(a) Within 30 days of the issuance of the Open Data Policy, the CIO and CTO shall publish an open online repository of tools and best practices to assist agencies in integrating the Open Data Policy into their operations in furtherance of their missions. The CIO and CTO shall regularly update this online repository as needed to ensure it remains a resource to facilitate the adoption of open data practices.

(b) Within 90 days of the issuance of the Open Data Policy, the Administrator for Federal Procurement Policy, Controller of the Office of Federal Financial Management, CIO, and Administrator of OIRA shall work with the Chief Acquisition Officers Council, Chief Financial Officers Council, Chief Information Officers Council, and Federal Records Council to identify and initiate implementation of measures to support the integration of the Open Data Policy requirements into Federal acquisition and grant-making processes. Such efforts may include developing sample requirements language, grant and contract language, and workforce tools for agency acquisition, grant, and information management and technology professionals.

(c) Within 90 days of the date of this order, the Chief Performance Officer (CPO) shall work with the President's Management Council to establish a Cross-Agency Priority (CAP) Goal to track implementation of the Open Data Policy. The CPO shall work with agencies to set incremental performance goals, ensuring they have metrics and milestones in place to monitor advancement toward the CAP Goal. Progress on these goals shall be analyzed and reviewed by agency leadership, pursuant to the GPRA Modernization Act of 2010 (Public Law 111–352).

(d) Within 180 days of the date of this order, agencies shall report progress on the implementation of the CAP Goal to the CPO. Thereafter, agencies shall report progress quarterly, and as appropriate.

Sec. 4. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department, agency, or the head thereof; or

(ii) the functions of the Director of OMB relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

(d) Nothing in this order shall compel or authorize the disclosure of privileged information, law enforcement information, national security information, personal information, or information the disclosure of which is prohibited by law.

(e) Independent agencies are requested to adhere to this order.

Barack Obama.      

Freedom of Information Act

Memorandum of President of the United States, Jan. 21, 2009, 74 F.R. 4683, provided:

Memorandum for the Heads of Executive Departments and Agencies

A democracy requires accountability, and accountability requires transparency. As Justice Louis Brandeis wrote, "sunlight is said to be the best of disinfectants." In our democracy, the Freedom of Information Act (FOIA), which encourages accountability through transparency, is the most prominent expression of a profound national commitment to ensuring an open Government. At the heart of that commitment is the idea that accountability is in the interest of the Government and the citizenry alike.

The Freedom of Information Act should be administered with a clear presumption: In the face of doubt, openness prevails. The Government should not keep information confidential merely because public officials might be embarrassed by disclosure, because errors and failures might be revealed, or because of speculative or abstract fears. Nondisclosure should never be based on an effort to protect the personal interests of Government officials at the expense of those they are supposed to serve. In responding to requests under the FOIA, executive branch agencies (agencies) should act promptly and in a spirit of cooperation, recognizing that such agencies are servants of the public.

All agencies should adopt a presumption in favor of disclosure, in order to renew their commitment to the principles embodied in FOIA, and to usher in a new era of open Government. The presumption of disclosure should be applied to all decisions involving FOIA.

The presumption of disclosure also means that agencies should take affirmative steps to make information public. They should not wait for specific requests from the public. All agencies should use modern technology to inform citizens about what is known and done by their Government. Disclosure should be timely.

I direct the Attorney General to issue new guidelines governing the FOIA to the heads of executive departments and agencies, reaffirming the commitment to accountability and transparency, and to publish such guidelines in the Federal Register. In doing so, the Attorney General should review FOIA reports produced by the agencies under Executive Order 13392 of December 14, 2005. I also direct the Director of the Office of Management and Budget to update guidance to the agencies to increase and improve information dissemination to the public, including through the use of new technologies, and to publish such guidance in the Federal Register.

This memorandum does not create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

The Director of the Office of Management and Budget is hereby authorized and directed to publish this memorandum in the Federal Register.

Barack Obama.      

2.3.2.2 Milner v. Department of the Navy 2.3.2.2 Milner v. Department of the Navy

MILNER v. DEPARTMENT OF THE NAVY

No. 09-1163.

Argued December 1, 2010

Decided March 7, 2011

*564David S. Mann argued the cause for petitioner. With him on the briefs were Michael W. Gendler and Brendan W. Donckers.

Anthony A. Yang argued the cause for respondent. With him on the brief were Acting Solicitor General Katyal, Assistant Attorney General West, Deputy Solicitor General Kneedler, Leonard Schaitman, Howard S. Scher, Peter A. Winn, J. Page Turney, and Judy A. Conlow.*

*

Briefs of amici curiae urging reversal were filed for Allied Daily Newspapers of Washington et al. by Katherine A. George; for Public Citizen et al. by Adina H. Rosenbaum and Allison M. Zieve; and for the Reporters Committee for Freedom of the Press et al. by Lucy A. Dalglish, Kevin M. Goldberg, David Ardia, David M. Giles, Peter Scheer, Charles D. Tobin, Mickey H. Osterreicher, René P. Milam, Barbara L. Camens, Bruce W. Sanford, Bruce D. Brown, Laurie A. Babinski, David S. Bra-low, and Eric N. Lieberman.

Justice Kagan

delivered the opinion of the Court.

The Freedom of Information Act (FOIA), 5 U. S. C. § 552, requires federal agencies to make Government records available to the public, subject to nine exemptions for specific categories of material. This case concerns the scope of Exemption 2, which protects from disclosure material that is “related solely to the internal personnel rules and practices of an agency.” § 552(b)(2). Respondent Department of the Navy (Navy or Government) invoked Exemption 2 to deny *565a FOIA request for data and maps used to help store explosives at a naval base in Washington State. We hold that Exemption 2 does not stretch so far.

I

Congress enacted FOIA to overhaul the public-disclosure section of the Administrative Procedure Act (APA), 5 U. S. C. §1002 (1964 ed.). That section of the APA “was plagued with vague phrases” and gradually became more “a withholding statute than a disclosure statute.” EPA v. Mink, 410 U. S. 73, 79 (1973). Congress intended FOIA to “permit access to official information long shielded unnecessarily from public view.” Id., at 80. FOIA thus mandates that an agency disclose records on request, unless they fall within one of nine exemptions. These exemptions are “explicitly made exclusive,” id., at 79, and must be “narrowly construed,” FBI v. Abramson, 456 U. S. 615, 630 (1982).

At issue here is Exemption 2, which shields from compelled disclosure documents “related solely to the internal personnel rules and practices of an agency.” § 552(b)(2). Congress enacted Exemption 2 to replace the APA’s exemption for “any matter relating solely to the internal management of an agency,” 5 U. S. C. § 1002 (1964 ed.). Believing that the “sweep” of the phrase “internal management” had led to excessive withholding, Congress drafted Exemption 2 “to have a narrower reach.” Department of Air Force v. Rose, 425 U. S. 352, 362-363 (1976).

We considered the extent of that reach in Department of Air Force v. Rose. There, we rejected the Government’s invocation of Exemption 2 to withhold case summaries of honor and ethics hearings at the United States Air Force Academy. The exemption, we suggested, primarily targets material concerning employee relations or human resources: “‘use of parking facilities or regulations of lunch hours, statements of policy as to sick leave, and the like.’” Id., at 363 (quoting S. Rep. No. 813, 89th Cong., 1st Sess., 8 (1965) *566(hereinafter S. Rep.)); see Rose, 425 U. S., at 367. “[T]he general thrust” of Exemption 2, we explained, “is simply to relieve agencies of the burden of assembling and maintaining [such information] for public inspection.” Id., at 369. We concluded that the case summaries did not fall within the exemption because they “d[id] not concern only routine matters” of “merely internal significance.” Id., at 370. But we stated a possible caveat to our interpretation of Exemption 2: That understanding of the provision’s coverage governed, we wrote, “at least where the situation is not one where disclosure may risk circumvention of agency regulation.” Id., at 369.

In Crooker v. Bureau of Alcohol, Tobacco & Firearms, 670 F. 2d 1051 (1981) (en banc), the D. C. Circuit converted this caveat into a new definition of Exemption 2’s scope. Crooker approved the use of Exemption 2 to shield a manual designed to train Government agents in law enforcement surveillance techniques. The D. C. Circuit noted that it previously had understood Exemption 2 to “refe[r] only to ‘pay, pensions, vacations, hours of work, lunch hours, parking[,] etc.’” Id., at 1056 (quoting Jordan v. Department of Justice, 591 F. 2d 753, 763 (1978)). But the court now thought Exemption 2 should also cover any “predominantly internal” materials,1 Crooker, 670 F. 2d, at 1056-1057, whose disclosure would “significantly ris[k] circumvention of agency regulations or statutes,” id., at 1074. This construction of Exemption 2, the court reasoned, flowed from FOIA’s “overall design,” its legislative history, “and even common sense,” because Congress could not have meant to “enac[t] a statute *567whose provisions undermined . . . the effectiveness of law enforcement agencies.” Ibid.

In the ensuing years, three Courts of Appeals adopted the D. C. Circuit’s interpretation of Exemption 2. See 575 F. 3d 959, 965 (CA9 2009) (case below); Massey v. FBI, 3 F. 3d 620, 622 (CA2 1993); Kaganove v. EPA, 856 F. 2d 884, 889 (CA7 1988).2 And that interpretation spawned a new terminology: Courts applying the Crooker approach now refer to the “Low 2” exemption when discussing materials concerning human resources and employee relations, and to the “High 2” exemption when assessing records whose disclosure would risk circumvention of the law. See, e. g., 575 F. 3d, at 963; Schiller v. NLRB, 964 F. 2d 1205, 1208 (CADC 1992). Congress, as well, took notice of the D. C. Circuit’s decision, borrowing language from Crooker to amend Exemption 7(E) when next enacting revisions to FOIA. The amended version of Exemption 7(E) shields certain “records or information compiled for law enforcement purposes” if their disclosure “could reasonably be expected to risk circumvention of the law.” § 552(b)(7)(E); see Freedom of Information Reform Act of 1986, § 1802(a), 100 Stat. 3207-49.

II

The FOIA request at issue here arises from the Navy’s operations at Naval Magazine Indian Island, a base in Puget *568Sound, Washington. The Navy keeps weapons, ammunition, and explosives on the island. To aid in the storage and transport of these munitions, the Navy uses data known as Explosive Safety Quantity Distance (ESQD) information. 575 F. 3d, at 962. ESQD information prescribes “minimum separation distances” for explosives and helps the Navy design and construct storage facilities to prevent chain reactions in case of detonation. Ibid. The ESQD calculations are often incorporated into specialized maps depicting the effects of hypothetical explosions. See, e. g., App. 52.

In 2003 and 2004, petitioner Glen Milner, a Puget Sound resident, submitted FOIA requests for all ESQD information relating to Indian Island. 575 F. 3d, at 962. The Navy refused to release the data, stating that disclosure would threaten the security of the base and surrounding community. In support of its decision to withhold the records, the Navy invoked Exemption 2. Ibid.3

The District Court granted summary judgment to the Navy, and the Court of Appeals affirmed, relying on the High 2 interpretation developed in Crooker. 575 F. 3d, at 963. The Court of Appeals explained that the ESQD information “is predominantly used for the internal purpose of instructing agency personnel on how to do their jobs.” Id., at 968. And disclosure of the material, the court determined, “would risk circumvention of the law” by “pointing] out the best targets for those bent on wreaking havoc” — for example, “[a] terrorist who wished to hit the most damaging target.” Id., *569at 971. The ESQD information, the court concluded, therefore qualified for a High 2 exemption. Ibid.

We granted certiorari in light of the Circuit split respecting Exemption 2’s meaning, 561 U. S. 1024 (2010), and we now reverse.

Ill

Our consideration of Exemption 2’s scope starts with its text. See, e. g., Park ’N Fly, Inc. v. Dollar Park & Fly, Inc., 469 U. S. 189, 194 (1985) (“Statutory construction must begin with the language employed by Congress and the assumption that the ordinary meaning of that language accurately expresses the legislative purpose”). Judicial decisions since FOIA’s enactment have analyzed and reanalyzed the meaning of the exemption. But comparatively little attention has focused on the provision’s 12 simple words: “related solely to the internal personnel rules and practices of an agency.”

The key word in that dozen — the one that most clearly marks the provision’s boundaries — is “personnel.” When used as an adjective, as it is here to modify “rules and practices,” that term refers to human resources matters. “Personnel,” in this common parlance, means “the selection, placement, and training of employees and ... the formulation of policies, procedures, and relations with [or involving] employees or their representatives.” Webster’s Third New International Dictionary 1687 (1966) (hereinafter Webster’s). So, for example, a “personnel department” is “the department of a business firm that deals with problems affecting the employees of the firm and that usually interviews applicants for jobs.” Random House Dictionary 1075 (1966) (hereinafter Random House). “Personnel management” is similarly “the phase of management concerned with the engagement and effective utilization of manpower to obtain optimum efficiency of human resources.” Webster’s 1687. And a “personnel agency” is “an agency for placing employable persons in jobs; employment agency.” Random House 1075.

*570FOIA itself provides an additional example in Exemption 6. See Ratzlaf v. United States, 510 U. S. 135, 143 (1994) (“A term appearing in several places in a statutory text is generally read the same way each time it appears”). That exemption, just a few short paragraphs down from Exemption 2, protects from disclosure “personnel and medical files and similar files the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.” § 552(b)(6). Here too, the statute uses the term “personnel” as a modifier meaning “human resources.” See Tr. of Oral Arg. 32 (“[The Court:] It’s [an] H. R. file, right? [The Government:] That’s generally true”). As we recognized in Rose, “the common and congressional meaning of... 'personnel file’ ” is the file “showing, for example, where [an employee] was born, the names of his parents, where he has lived from time to time, his . . . school records, results of examinations, [and] evaluations of his work performance.” 425 U. S., at 377. It is the file typically maintained in the human resources office — otherwise known (to recall an example offered above) as the “personnel department.” Ibid.

Exemption 2 uses “personnel” in the exact same way. An agency’s “personnel rules and practices” are its rules and practices dealing with employee relations or human resources. The D. C. Circuit, in a pre-Crooker decision, gave as examples “matters relating to pay, pensions, vacations, hours of work, lunch hours, parking, etc.” Jordan, 591 F. 2d, at 763; see supra, at 566. That “etc.” is important; we doubt any court could know enough about the Federal Government’s operations to formulate a comprehensive list. But all the rules and practices referenced in Exemption 2 share a critical feature: They concern the conditions of employment in federal agencies — such matters as hiring and firing, work rules and discipline, compensation and benefits.4 Courts in *571practice have had little difficulty identifying the records that qualify for withholding under this reading: They are what now commonly fall within the Low 2 exemption. Our construction of the statutory language simply makes clear that Low 2 is all of 2 (and that High 2 is not 2 at all, see infra, at 573-577).

The statute’s purpose reinforces this understanding of the exemption. We have often noted “the Act’s goal of broad disclosure” and insisted that the exemptions be “given a narrow compass.” Department of Justice v. Tax Analysts, 492 U. S. 136, 151 (1989); see Department of Interior v. Klamath Water Users Protective Assn., 532 U. S. 1, 7-8 (2001).5 This practice of “constru[ing] FOIA exemptions narrowly,” Department of Justice v. Landano, 508 U. S. 165, 181 (1993), stands on especially firm footing with respect to Exemption 2. As described earlier, Congress worded that provision to hem in the prior APA exemption for “any matter relating solely to the internal management of an agency,” which agencies had used to prevent access to masses of documents. See Rose, 425 U. S., at 362. We would ill-serve *572Congress’s purpose by construing Exemption 2 to reauthorize the expansive withholding that Congress wanted to halt. Our reading instead gives the exemption the “narrower reach” Congress intended, id., at 363, through the simple device of confining the provision’s meaning to its words.

The Government resists giving “personnel” its plain meaning on the ground that Congress, when drafting Exemption 2, considered but chose not to enact language exempting “internal employment rules and practices.” Brief for Respondent 30-34, and n. 11 (internal quotation marks omitted). This drafting history, the Navy maintains, proves that Congress did not wish “to limit the Exemption to employment-related matters,” id., at 31, even if the adjective “personnel” conveys that meaning in other contexts, id., at 41. But we think the Navy’s evidence insufficient: The scant history concerning this word change as easily supports the inference that Congress merely swapped one synonym for another. Cf. Mead Corp. v. Tilley, 490 U. S. 714, 723 (1989) (noting with respect to the “unexplained disappearance of one word from an unenacted bill” that “mute intermediate legislative maneuvers are not reliable” aids to statutory interpretation (internal quotation marks omitted)). Those of us who make use of legislative history believe that clear evidence of congressional intent may illuminate ambiguous text. We will not take the opposite tack of allowing ambiguous legislative history to muddy clear statutory language.

Exemption 2, as we have construed it, does not reach the ESQD information at issue here. These data and maps calculate and visually portray the magnitude of hypothetical detonations. By no stretch of imagination do they relate to “personnel rules and practices,” as that term is most naturally understood. They concern the physical rules governing explosives, not the workplace rules governing sailors; they address the handling of dangerous materials, not the treatment of employees. The Navy therefore may not use Exemption 2, interpreted in accord with its plain meaning to *573cover human resources matters, to prevent disclosure of the requested maps and data.

IV

The .Government offers two alternative readings of Exemption 2 to support withholding the ESQD information. We cannot square either with the statute.

A

The Navy first encourages us to adopt the construction of Exemption 2 pioneered by Crooker, which shields material not only if it meets the criteria set out above (Low 2), but also if it is “predominant[ly] interna[l]” and its “disclosure would significantly risk[ ] circumvention of federal agency functions” (High 2). Brief for Respondent 41 (internal quotation marks omitted). The dissent, too, favors this reading of the statute. Post, at 585. But the Crooker interpretation, as already suggested, suffers from a patent flaw: It is disconnected from Exemption 2’s text. The High 2 test (in addition to substituting the word “predominantly” for “solely,” see n. 1, supra) ignores the plain meaning of the adjective “personnel,” see supra, at 569-572 and this page, and adopts a circumvention requirement with no basis or referent in Exemption 2’s language. Indeed, the only way to arrive at High 2 is by taking a red pen to the statute — “cutting out some” words and “pasting in others” until little of the actual provision remains. Elliott v. Department of Agriculture, 596 F. 3d 842, 845 (CADC 2010). Because this is so, High 2 is better labeled “Non 2” (and Low 2 ... just 2).

In support of its text-light approach to the statute, the Government relies primarily on legislative history, placing particular emphasis on the House Report concerning FOIA. See Brief for Respondent 33-38. A statement in that Report buttresses the High 2 understanding of the exemption and, indeed, specifically rejects the Low 2 construction. According to the Report: “Operating rules, guidelines, and manuals of procedure for Government investigators or exam*574iners would be exempt from disclosure [under Exemption 2], but this exemption would not cover . . . employee relations and working conditions and routine administrative procedures.” H. R. Rep. No. 1497, 89th Cong., 2d Sess., 10 (1966). But the Senate Report says exactly the opposite, explaining in support of a Low 2 interpretation that the phrase “internal personnel rules and practices of an agency” means “rules as to personnel's use of parking facilities or regulation of lunch hours, statements of policy as to sick leave, and the like.” S. Rep., at 8.6 In Rose, we gave reasons for thinking the Senate Report the more reliable of the two. See 425 U. S., at 366. But the more fundamental point is what we said before: Legislative history, for those who take it into account, is meant to clear up ambiguity, not create it. See supra, at 572; Wong Yang Sung v. McGrath, 339 U. S. 33, 49 (1950) (declining to consult legislative history when that “history is more conflicting than the text is ambiguous”). When presented, on the one hand, with clear statutory language and, on the other, with dueling committee reports, we must choose the language.

The Government also advances, in support of Crooker’s High 2 approach, an argument based on subsequent legislative action. Congress, the Government notes, amended Exemption 7(E) in 1986 to cover law enforcement records whose production “would disclose techniques and procedures for law enforcement investigations or prosecutions, or would disclose guidelines for law enforcement investigations or prosecutions if such disclosure could reasonably be expected to risk circumvention of the law.” § 552(b)(7)(E). That amendment, the Government contends, codified Crooker’s “circumvention of the law” standard and, in so doing, ratified *575Crooker’s holding. Brief for Respondent 42-43. The dissent likewise counts as significant that Congress “t[ook] note” of Crooker in revising FOIA. Post, at 592; see post, at 586.

But the Government and the dissent neglect the key feature of the 1986 amendment: Congress modified not Exemption 2 (the subject of Crooker), but instead Exemption 7(E). And the Crooker construction of Exemption 2 renders Exemption 7(E) superfluous and so deprives that amendment of any effect. See, e. g., TRW Inc. v. Andrews, 534 U. S. 19, 31 (2001) (noting canon that statutes should be read to avoid making any provision “superfluous, void, or insignificant” (internal quotation marks omitted)). We cannot think of any document eligible for withholding under Exemption 7(E) that the High 2 reading does not capture: The circumvention standard is the same, and the law enforcement records listed in Exemption 7(E) are “predominantly internal.” So if Congress had agreed with Crooker’s reading of Exemption 2, it would have had no reason to alter Exemption 7(E). In that event, Congress would either have left the statute alone (on the theory that Crooker would do the necessary work) or would have amended Exemption 2 specifically to ratify Crooker. The decision instead to amend Exemption 7(E) suggests that Congress approved the circumvention standard only as to law enforcement materials, and not as to the wider set of records High 2 covers. Perhaps this legislative action does not show that Congress affirmatively disagreed with Crooker; maybe Congress was agnostic about whether the circumvention standard should apply to other records. But one thing is clear: The 1986 amendment does not ratify, approve, or otherwise signal agreement with Crooker’s interpretation of Exemption 2. This argument therefore cannot save the High 2 construction.

The dissent offers one last reason to embrace High 2, and indeed stakes most of its wager on this argument. Crooker, the dissent asserts, “has been consistently relied upon and followed for 30 years” by other lower courts. Post, at 592; *576see post, at 585-586. But this claim, too, trips at the starting gate. It would be immaterial even if true, because we have no warrant to ignore clear statutory language on the ground that other courts have done so. And in any event, it is not true. Prior to Crooker, three Circuits adopted the reading of Exemption 2 we think right, and they have not changed their minds. See n. 2, supra.7 Since Crooker, three other Circuits have accepted the High 2 reading. See supra, at 567. One Circuit has reserved judgment on the High 2-Low 2 debate. See Audubon Soc. v. United States Forest Serv., 104 F. 3d 1201, 1203-1204 (CA10 1997). And the rest have not considered the matter. (No one should think Crooker has been extensively discussed or debated in *577the Courts of Appeals. In the past three decades, Crooker’s analysis of Exemption 2 has been cited a sum total of five times in federal appellate decisions outside the D. C. Circuit — on average, once every six years.) The result is a 4-to-3 split among the Circuits.8 We will not flout all usual rules of statutory interpretation to take the side of the bare majority.

B

Presumably because Crooker so departs from Exemption 2’s language, the Government also offers another construction, which it says we might adopt “on a clean slate,” “based on the plain text.. . alone.” Brief for Respondent 15. On this reading, the exemption “encompasses records concerning an agency’s internal rules and practices for its personnel to follow in the discharge of their governmental functions.” Id., at 20; see also id., at 13-14 (Exemption 2 “applies generally to matters concerning internal rules and practices to guide agency personnel in performing their duties”). According to the Government, this interpretation makes sense because “the phrase 'personnel rules and practices of an agency’ is logically understood to mean an agency’s rules and practices for its personnel.” Id., at 20 (emphasis added).

But the purported logic in the Government’s definition eludes us. We would not say, in ordinary parlance, that a “personnel file” is any file an employee uses, or that a “personnel department” is any department in which an employee *578serves. No more would we say that a “personnel rule or practice” is any rule or practice that assists an employee in doing her job. The use of the term “personnel” in each of these phrases connotes not that the file or department or practice/rule is for personnel, but rather that the file or department or practice/rule is about personnel — i. e., that it relates to employee relations or human resources. This case well illustrates the point. The records requested, as earlier noted, are explosives data and maps showing the distances that potential blasts travel. This information no doubt assists Navy personnel in storing munitions. But that is not to say that the data and maps relate to “personnel rules and practices.” No one staring at these charts of explosions and using ordinary language would describe them in this manner.

Indeed, the Government’s “clean slate” construction reaches such documents only by stripping the word “personnel” of any real meaning. Under this interpretation, an agency’s “internal personnel rules and practices” appears to mean all its internal rules and practices. That is because agencies necessarily operate through personnel, and so all their internal rules and practices are for personnel. The modifier “personnel,” then, does no modifying work; it does not limit the class of internal rules and practices that Exemption 2 covers. What is most naturally viewed as the provision’s key word — the term that ought to define its scope — does nothing more than state the truism that in an agency it is “personnel” who follow internal rules and practices.

And this odd reading would produce a sweeping exemption, posing the risk that FOIA would become less a disclosure than “a withholding statute.” Mink, 410 U. S., at 79. Many documents an agency generates in some way aid employees in carrying out their responsibilities. If Exemption 2 were to reach all these records, it would tend to engulf other FOIA exemptions, rendering ineffective the limitations Congress placed on their application. Exemption 7, *579for example, shields records compiled for law enforcement purposes, but only if one of six specified criteria is met. § 552(b)(7). Yet on the Government’s view, an agency could bypass these restrictions by invoking Exemption 2 whenever law enforcement records guide personnel in performing their duties. Indeed, an agency could use Exemption 2 as an all-purpose back-up provision to withhold sensitive records that do not fall within any of FOIA’s more targeted exemptions.9

Interpreted in this way, Exemption 2 — call it “Super 2” now — would extend, rather than narrow, the APA’s former exemption for records relating to the “internal management of an agency.” 5 U. S. C. § 1002 (1964 ed.). We doubt that even the “internal management” provision, which Congress thought allowed too much withholding, see supra, at 565, would have protected all information that guides employees in the discharge of their duties, including the explosives data and maps in this case. And perhaps needless to say, this reading of Exemption 2 violates the rule favoring narrow *580construction of FOIA exemptions. See, e. g., Abramson, 456 U. S., at 630; Rose, 425 U. S., at 361. Super 2 in fact has no basis in the text, context, or purpose of FOIA, and we accordingly reject it.

V

Although we cannot interpret Exemption 2 as the Government proposes, we recognize the strength of the Navy’s interest in protecting the ESQD data and maps and other similar information. The Government has informed us that “[pjublicly disclosing the [ESQD] information would significantly risk undermining the Navy’s ability to safely and securely store military ordnance,” Brief for Respondent 47, and we have no reason to doubt that representation. The Ninth Circuit similarly cautioned that disclosure of this information could be used to “wrea[k] havoc” and “make catastrophe more likely.” 575 F. 3d, at 971. Concerns of this kind — a sense that certain sensitive information should be exempt from disclosure — in part led the Crooker court to formulate the High 2 standard. See 670 F. 2d, at 1074 (contending that “common sense” supported the High 2 interpretation because Congress would not have wanted FOIA to “under-min[e] . . . the effectiveness of law enforcement agencies”). And we acknowledge that our decision today upsets three decades of agency practice relying on Crooker, and therefore may force considerable adjustments.

We also note, however, that the Government has other tools at hand to shield national security information and other sensitive materials. Most notably, Exemption 1 of FOIA prevents access to classified documents. § 552(b)(1); see 575 F. 3d, at 980 (W. Fletcher, J., dissenting) (Exemption 1 is “specifically designed to allow government agencies to withhold information that might jeopardize our national security”). The Government generally may classify material even after receiving a FOIA request, see Exec. Order No. 13526, § 1.7(d), 75 Fed. Reg. 711 (2009); an agency therefore may wait until that time to decide whether the dangers *581of disclosure outweigh the costs of classification. See Tr. of Oral Arg. 29-30. Exemption 3 also may mitigate the Government’s security concerns. That provision applies to records that any other statute exempts from disclosure, § 552(b)(3) (2006 ed., Supp. IV), thus offering Congress an established, streamlined method to authorize the withholding of specific records that FOIA would not otherwise protect. And Exemption 7, as already noted, protects “information compiled for law enforcement purposes” that meets one of six criteria, including if its release “could reasonably be expected to endanger the life or physical safety of any individual.” §552(b)(7)(F) (2006 ed.). The Navy argued below that the ESQD data and maps fall within Exemption 7(F), see n. 3, supra, and that claim remains open for the Ninth Circuit to address on remand.

If these or other exemptions do not cover records whose release would threaten the Nation’s vital interests, the Government may of course seek relief from Congress. See Tr. of Oral Arg. 48. All we hold today is that Congress has not enacted the FOIA exemption the Government desires. We leave to Congress, as is appropriate, the question whether it should do so.

VI

Exemption 2, consistent with the plain meaning of the term “personnel rules and practices,” encompasses only records relating to issues of employee relations and human resources. The explosives maps and data requested here do not qualify for withholding under that exemption. We therefore reverse the judgment of the Court of Appeals and remand the case for further proceedings consistent with this opinion.

It is so ordered.

1

The court adopted the “predominantly internal” standard as a way of implementing the exemption’s requirement that materials “relat[ej solely to” an agency’s internal personnel rules and practices. The word “solely,” the court reasoned, “has to be given the construction, consonant with reasonableness, of ‘predominantly’ ” because otherwise “solely” would conflict with the expansive term “related.” 670 F. 2d, at 1056 (some internal quotation marks omitted).

2

Three other Courts of Appeals had previously taken a narrower view of Exemption 2’s scope, consistent with the interpretation adopted in Department of Air Force v. Rose, 425 U. S. 352 (1976). See Cox v. Department of Justice, 576 F. 2d 1302, 1309-1310 (CA8 1978) (concluding that Exemption 2 covers only an agency’s internal "housekeeping matters” (internal quotation marks omitted)); Stokes v. Brennan, 476 F. 2d 699, 703 (CA5 1973) (holding that Exemption 2 “must not be read so broadly as to exempt” an Occupational Safety and Health Administration manual for training compliance officers); Hawkes v. IRS, 467 F. 2d 787, 797 (CA6 1972) (“[T]he internal practices and policies referred to in [Exemption 2] relate only to . . . employee-employer type concerns”). These Circuits have never revised their understandings of the exemption. See n. 7, infra.

3

The Navy also invoked Exemption 7(F), which applies to “records or information compiled for law enforcement purposes, but only to the extent that the production of such . . . records . . . could reasonably be expected to endanger the life or physical safety of any individual.” 5 U. S. C. § 552(b)(7)(F). The courts below did not decide whether the Navy could withhold the ESQD data under that exemption. 575 F. 3d 959, 971, n. 8 (CA9 2009); No. CV-06-01301 (WD Wash., Oct. 30, 2007), App. to Pet. for Cert. 4, 25, 2007 WL 3228049, *8.

4

Government records also must satisfy the other requirements of Exemption 2 to be exempt from disclosure. Information must “relat[e] solely” — meaning, as usual, “exclusively or only,” Random House 1354 — to *571the agency’s “personnel rules and practices.” And the information must be “internal”; that is, the agency must typically keep the records to itself for its own use. See Webster’s 1180 (“internal” means “existing or situated within the limits ... of something”). An agency’s human resources documents will often meet these conditions.

5

The dissent would reject this longstanding rule of construction in favor of an approach asking courts “to turn Congress’ public information objectives into workable agency practice.” Post, at 592 (opinion of Breyer, J.). But nothing in FOIA either explicitly or implicitly grants courts discretion to expand (or contract) an exemption on this basis. In enacting FOIA, Congress struck the balance it thought right — generally favoring disclosure, subject only to a handful of specified exemptions — and did so across the length and breadth of the Federal Government. See, e. g., John Doe Agency v. John Doe Corp., 493 U. S. 146, 152-153 (1989). The judicial role is to enforce that congressionally determined balance rather than, as the dissent suggests, post, at 588-589, to assess case by case, department by department, and task by task whether disclosure interferes with good government.

6

We are perplexed that the dissent takes seriously Crooker’s notion that the Reports are “ ‘reconcilable.’ ” Post, at 588. To strip the matter to its essentials, the House Report says: “Exemption 2 means A, but not B.” The Senate Report says: “Exemption 2 means B.” That is the very definition of “irreconcilable.”

7

The dissent’s view that “two of th[ese] Circuits [have] not adher[ed] to their early positions” is incorrect. Post, at 586. In Abraham & Rose, P. L. C. v. United States, 138 F. 3d 1075, 1082 (1998), cited by the dissent, the Sixth Circuit rejected the Government’s claim that Exemption 2 shielded records of federal tax lien filings. The court nowhere discussed the High 2 versus Low 2 question at issue here. Its only reference to Crooker concerned the part of that decision interpreting “solely” to mean “predominantly.” See 138 F. 3d, at 1080; see also n. 1, supra. Subsequently, the Sixth Circuit once again held, in Rugiero v. Department of Justice, 257 F. 3d 534, 549 (2001), that Exemption 2 applies to “routine matters of merely internal significance.” In Sladek v. Bensinger, 605 F. 2d 899, 902 (1979), which the dissent also cites, the Fifth Circuit insisted that the Government disclose a Drug Enforcement Administration agent’s manual because it “is not the type of trivial rule, such as allocation of parking facilities, that is covered by Exemption 2.” In confirming this Low 2 interpretation of the statute, the court acknowledged that another Circuit had embraced the High 2 standard. The court, however, declined to consider this alternative interpretation because it would not have changed the case’s outcome. See ibid. Finally, the Eighth Circuit’s last word on Exemption 2 is clear, and the dissent does not say otherwise. The exemption, according to that most recent Eighth Circuit decision, applies “only [to an agency’s] housekeeping matters.” Cox, 576 F. 2d, at 1309-1310 (internal quotation marks omitted). The dissent is surely right to say, post at 586, that Crooker “has guided nearly every [FOIA] case decided over the last 30 years” in Circuits applying Crooker; but that statement does not hold in the Circuits using the Low 2 approach.

8

Notably, even those courts approving Crooker have disagreed about how to apply High 2. Fault lines include whether the risk of circumvention must be significant, see, e. g., Hidalgo v. FBI, 541 F. Supp. 2d 250, 253 (DC 2008); Pet. for Cert. 15-16; whether courts should consider the public interest in disclosure when calculating that risk, see, e. g., Dept. of Justice, Guide to the Freedom of Information Act, p. 185 (2009); and whether an agency must regulate the person or entity threatening circumvention; compare, e. g., 575 F. 3d, at 971, with, e. g., id., at 978 (W. Fletcher, J., dissenting). The disagreement is not surprising. Because High 2 is nowhere evident in the statute, courts laek the normal guideposts for ascertaining its coverage.

9

The dissent asserts that “30 years of experience” with a more expansive interpretation of the exemption suggests no “seriou[s] interfere[nee] with ... FOIA’s informational objectives.” Post, at 589-590. But those objectives suffer any time an agency denies a FOIA request based on an improper interpretation of the statute. To give just one example, the U. S. Forest Service has wrongly invoked Exemption 2 on multiple occasions to withhold information about (of all things) bird nesting sites. See Audubon Soc. v. United States Forest Serv., 104 F. 3d 1201, 1203 (CA10 1997); Maricopa Audubon Soc. v. United States Forest Serv., 108 F. 3d 1082, 1084 (CA9 1997). And recent statistics raise a concern that federal agencies may too readily use Exemption 2 to refuse disclosure. According to amicus Public Citizen, “while reliance on exemptions overall rose 83% from 1998 to 2006, reliance on Exemption 2 rose 344% during that same time period.” Brief for Public Citizen et al. 24. In 2009 alone, federal departments cited Exemption 2 more than 72,000 times to prevent access to records. See Brief for Allied Daily Newspapers of Washington et al. as Amici Curiae 3. We do not doubt that many of these FOIA denials were appropriate. But we are unable to accept the dissent’s unsupported declaration that a sweeping construction of Exemption 2 has not interfered with Congress’s goal of broad disclosure.

Justice Alito,

concurring.

I agree with the Court that the text of Exemption 2 of the Freedom of Information Act of 1966 cannot support the *582“High 2” interpretation that courts have adopted and applied over the years. As the Court explains, however, the Government may avail itself of numerous other exemptions, see ante, at 580-581 — exemptions that may have been overshadowed in recent years by the broad reach of High 2. I write separately to underscore the alternative argument that the Navy raised below, which rested on Exemption 7(F) and which will remain open on remand. See ante, at 568, n. 3, 581.

Exemption 7 applies to specific categories of information “compiled for law enforcement purposes.” 5 U. S. C. § 552(b)(7). In particular, Exemption 7(F) permits withholding of “records or information compiled for law enforcement purposes” that, if disclosed, “could reasonably be expected to endanger the life or physical safety of any individual.” § 552(b)(7)(F). In most cases involving security information, it is not difficult to show that disclosure may “endanger the life or physical safety of any individual.” A more difficult question, however, is whether the information is “compiled for law enforcement purposes.” See John Doe Agency v. John Doe Corp., 493 U. S. 146, 153 (1989) (“Before it may invoke [Exemption 7], the Government has the burden of proving the existence of ... a compilation for such a purpose”). In my view, this phrase reasonably encompasses information used to fulfill official security and crime prevention duties.

“Law enforcement pur foses.” The ordinary understanding of law enforcement includes not just the investigation and prosecution of offenses that have already been committed, but also proactive steps designed to prevent criminal activity and to maintain security. A “law enforcement officer” is defined as one “whose duty it is to preserve the peace,” Black’s Law Dictionary 796 (5th ed. 1979), and fulfilling that duty involves a range of activities. Police on the beat aim to prevent crime from occurring, and they no less carry out “law enforcement purposes” than officers investigating a crime scene. Similarly, a “law-enforcement *583agency” is charged with “the apprehension of alleged offenders as well as crime detection and prevention.” R. De Sola, Crime Dictionary 82 (1982) (emphasis added).

Crime prevention and security measures are critical to effective law enforcement as we know it. There can be no doubt, for example, that the Secret Service acts with a law enforcement purpose when it protects federal officials from attack, even though no investigation may be ongoing. Likewise, steps by law enforcement officers to prevent terrorism surely fulfill “law enforcement purposes.” Particularly in recent years, terrorism prevention and national security measures have been recognized as vital to effective law enforcement efforts in our Nation. Indeed, “[a]fter the September 11th attacks on America,” the priorities of the Federal Bureau of Investigation “shifted dramatically,” and the FBI’s “top priority became the prevention of another terrorist attack.” Hearings before the Subcommittee on Science, the Departments of State, Justice, and Commerce, and Related Agencies of the House Committee on Appropriations, 109th Cong., 2d Sess., pt. 10, p. 232 (2006) (testimony of FBI Director Robert S. Mueller III). Today, “[t]he FBI’s number one priority continues to be the prevention of terrorist attacks against the United States.” Hearing before the Senate Committee on Homeland Security and Governmental Affairs, 111th Cong., 2d Sess., 67 (2010) (statement of Mueller). If crime prevention and security measures do not serve “law enforcement purposes,” then those charged with law enforcement responsibilities have little chance of fulfilling their duty to preserve the peace.

The context of Exemption 7 confirms that, read naturally, “law enforcement purposes” involve more than just investigation and prosecution. As Exemption 7’s subparagraphs demonstrate, Congress knew how to refer to these narrower activities. See, e.g., § 552(b)(7)(A) (information that “could reasonably be expected to interfere with enforcement proceedings”); § 552(b)(7)(E) (information that “would disclose *584techniques and procedures for law enforcement investigations or prosecutions”). Congress’ decision to use different language to trigger Exemption 7 confirms that the concept of “law enforcement purposes” sweeps in activities beyond investigation and prosecution. See Sosa v. Alvarez-Machain, 542 U. S. 692, 711, n. 9 (2004) (applying the “usual rule” that “when the legislature uses certain language in one part of the statute and different language in another, the court assumes different meanings were intended” (internal quotation marks omitted)).

“Compiled for law enforcement purposes.” This Court has given a fairly broad meaning to “compiled” under § 552(b)(7). In John Doe Agency, we held that information need not have been originally “compiled for law enforcement purposes” to satisfy Exemption 7’s threshold requirement. Rather, “even though ... documents were put together at an earlier time for a different purpose,” they may fall within Exemption 7 if they are later assembled for law enforcement purposes. 493 U. S., at 154-155. For example, documents originally gathered for routine business purposes may fall within Exemption 7 if they are later compiled for use in a criminal investigation. Similarly, federal building plans and related information — which may have been compiled originally for architectural planning or internal purposes — may fall within Exemption 7 if that information is later compiled and given to law enforcement officers for security purposes.

Documents compiled for multiple purposes are not necessarily deprived of Exemption 7’s protection. The text of Exemption 7 does not require that the information be compiled solely for law enforcement purposes. Cf. § 552(b)(2) (“related solely to the internal personnel rules and practices of an agency”). Therefore, it may be enough that law enforcement purposes are a significant reason for the compilation.

In this case, the Navy has a fair argument that the Explosive Safety Quantity Distance (ESQD) information falls *585within Exemption 7(F). The ESQD information, the Navy argues, is used “for the purpose of identifying and addressing security issues” and for the “protection of people and property , on the base, as well as in [the] nearby community, from the damage, loss, death, or injury that could occur from an accident or breach of security.” Brief for Appellee in No. 07-36056 (CA9), pp. 39-40. If, indeed, the ESQD information was compiled as part of an effort to prevent crimes of terrorism and to maintain security, there is a reasonable argument that the information has been “compiled for law enforcement purposes.” § 552(b)(7). Assuming that this threshold requirement is satisfied, the ESQD information may fall comfortably within Exemption 7(F).

Justice Breyer,

dissenting.

Justice Stevens has explained that once “a statute has been construed, either by this Court or by a consistent course of decision by other federal judges and agencies,” it can acquire a clear meaning that this Court should hesitate to change. See Shearson/American Express Inc. v. McMahon, 482 U. S. 220, 268 (1987) (opinion concurring in part and dissenting in part) (emphasis added). See also Commissioner v. Fink, 483 U. S. 89, 104 (1987) (Stevens, J., dissenting); B. Cardozo, The Nature of the Judicial Process 149 (1921). I would apply that principle to this case and accept the 30-year-old decision by the D. C. Circuit in Crooker v. Bureau of Alcohol, Tobacco & Firearms, 670 F. 2d 1051 (1981) (en banc), as properly stating the law.

For one thing, the Crooker decision, joined by 9 of the 10 sitting Circuit Judges, has been consistently followed, or favorably cited, by every Court of Appeals to have considered the matter during the past 30 years. See ibid. (written by Judge Edwards, and joined by Chief Judge Robinson and Judges Wright, MacKinnon, Robb, Wald, Mikva, and then-judge Ginsburg, with Judge Tamm concurring in the result and Judge Wilkey dissenting); Massey v. FBI, 3 F. 3d 620, *586622 (CA2 1993); Kaganove v. EPA, 856 F. 2d 884, 889 (CA7 1988), cert. denied, 488 U. S. 1011 (1989); Dirksen v. Department of Health and Human Servs., 803 F. 2d 1456, 1458 (CA9 1986). Three Circuits adopted a different approach in the 1970’s before Crooker was decided, see ante, at 567, n. 2, but I read subsequent decisions in two of those Circuits as not adhering to their early positions. See Abraham & Rose, P. L. C. v. United States, 138 F. 3d 1075, 1080-1081 (CA6 1998) (finding Crooker’s textual analysis “sound and persuasive,” and noting that Federal Bureau of Investigation symbols “used internally to identify confidential sources” may be withheld); Sladek v. Bensinger, 605 F. 2d 899, 902 (CA5 1979) (expressly reserving judgment on the Crooker issue). As for the remaining Circuit, its district courts understand Crooker now to apply. See, e. g., Gavin v. SEC, No. 04-4522, 2007 WL 2454156, *5-*6 (D Minn., Aug. 23, 2007); see also McQueen v. United States, 264 F. Supp. 2d 502, 528 (SD Tex. 2003), aff’d, 100 Fed. Appx. 964 (CA5 2004) (per curiam); Ticket v. IRS, No. Civ-1-85-709, 1986 WL 14436, *2-*3 (ED Tenn., Aug. 22, 1986). I recognize that there is reasonable ground for disagreement over the precise status of certain pte-Crooker precedents, but the Crooker interpretation of Exemption 2 has guided nearly every Freedom of Information Act (FOIA) case decided over the last 30 years. See generally Dept, of Justice, Guide to Freedom of Information Act, pp. 184-206 (2009) (hereinafter FOIA Guide) (identifying over 100 district court decisions applying the Crooker approach, and one appearing to reject it).

Congress, moreover, well aware of Crooker, left Exemption 2, 5 U. S. C. § 552(b)(2), untouched when it amended the FOIA five years later. See S. Rep. No. 98-221, p. 25 (1983) (discussing Crooker); Freedom of Information Reform Act of 1986, 100 Stat. 3207-48 (amending Exemption 7, 5 U. S. C. § 552(b)(7)).

This Court has found that circumstances of this kind offer significant support for retaining an interpretation of a stat*587ute that has been settled by the lower courts. See General Dynamics Land Systems, Inc. v. Cline, 540 U. S. 581, 593-594 (2004); Evans v. United States, 504 U. S. 255, 268-269 (1992); Newman-Green, Inc. v. Alfonzo-Larrain, 490 U. S. 826, 833 (1989); Monessen Southwestern R. Co. v. Morgan, 486 U. S. 330, 338-339 (1988); Lindahl v. Office of Personnel Management, 470 U. S. 768, 781-783 (1985); Herman & MacLean v. Huddleston, 459 U. S. 375, 385-386 (1983); Cannon v. University of Chicago, 441 U. S. 677, 702-703 (1979); Blue Chip Stamps v. Manor Drug Stores, 421 U. S. 723, 731-732 (1975); Gulf Oil Corp. v. Copp Paving Co., 419 U. S. 186, 200-201 (1974); Blau v. Lehman, 368 U. S. 403, 412-413 (1962). See generally W. Eskridge, P. Frickey, & E. Garrett, Cases and Materials on Legislation 1048 (4th ed. 2007) (“[T]he acquiescence rule can also support implicit congressional ratification of a uniform fine of federal appellate interpretations .. . ”).

For another thing, even if the majority’s analysis would have persuaded me if written on a blank slate, Crooker’s analysis was careful and its holding reasonable. The Court of Appeals examined the statute’s language, the legislative history, and the precedent. It recognized that the exemption’s words (“ 'related solely to the internal personnel rules and practices of an agency’”) could easily be read, as the Court reads them today, to refer only to human resources rules and practices. See 670 F. 2d, at 1056-1057. But it also thought that those words could be read more broadly as referring to internal rules or practices that set forth criteria or guidelines for agency personnel to follow in respect to purely internal matters (as long as the information at issue was “not of legitimate public interest”). Id., at 1056, 1057.

The D. C. Circuit agreed with today’s Court that the Senate Report described the exemption as referring to 'internal personnel’” matters, giving as examples “'personnel’s use of parking facilities . . . sick leave, and the like.’” Id., at 1058-1059 (quoting S. Rep. No. 813, 89th Cong., 1st *588Sess., 8 (1965)). But it also noted that the House Report described the exemption as protecting from disclosure “ ‘ Operating rules, guidelines, and manuals of procedure for Government investigators or examiners.’” 670 F. 2d, at 1060 (quoting H. R. Rep. No. 1497, 89th Cong., 2d Sess., 10 (1966)). “[Ujpon reflection,” it thought the views of the two Houses “reconcilable” if one understood both sets of examples as referring to internal staff information (both minor personnel matters and staff instruction matters) that the public had no legitimate interest in learning about. 670 F. 2d, at 1065. And it accepted this view in light of its hesitation to “apply individual provisions of the statute woodenly, oblivious to Congress’ intention that FOIA not frustrate law enforcement efforts.” Id., at 1066. At the same time it found no other exemption that would protect internal documents in which there is no legitimate public interest in disclosure— a category that includes, say, building plans, safe combinations, computer passwords, evacuation plans, and the like.

After examining in depth the legislative history and relevant precedent, the court adopted an approach based on a prior opinion by Circuit Judge Leventhal, as well as language used by this Court in Department of Air Force v. Rose, 425 U. S. 352, 369 (1976). The D. C. Circuit held that a document fits within the literal language of Exemption 2 and is exempt from disclosure if (1) it “meets the test of ‘predominant internality,’ ” i. e., the document is “not of legitimate public interest,” and (2) “disclosure significantly risks circumvention of agency regulations or statutes.” Crooker, supra, at 1056, 1074; see also Rose, supra, at 369 (suggesting that Exemption 2 might apply where “disclosure may risk circumvention of agency regulation”). This test, based upon Congress’ broader FOIA objectives and a “common sense” view of what information Congress did and did not want to make available, Crooker, supra, at 1074, takes the “practical approach” that this Court has “consistently ... taken” when *589interpreting the FOIA, John Doe Agency v. John Doe Corp., 493 U. S. 146, 157 (1989).

I would not underestimate the importance of this “practical approach.” It reflects this Court’s longstanding recognition that it cannot interpret the FOIA (and the Administrative Procedure Act (APA) of which it is a part) with the linguistic literalism fit for interpretations of the Tax Code. See generally 1 R. Pierce, Administrative Law Treatise §7.1, p. 413 (4th ed. 2002) (“Judicial interpretation of the malleable language of the APA has produced changes in rulemaking procedure that could be characterized as revolutionary if they had been affected in a day or a year rather than gradually over a period of decades”); ef. Sunstein & Yermeule, Interpretation and Institutions, 101 Mich. L. Rev. 885, 917-918, and n. 111 (2003) (observing that Congress “appears to rely on courts for long periods of time” to give meaning to the APA, which justifies interpreting it less formalistieally than statutes like “the Internal Revenue Code”). That in large part is because the FOIA (like the APA but unlike the Tax Code) must govern the affairs of a vast Executive Branch with numerous different agencies, bureaus, and departments, performing numerous tasks of many different kinds. Too narrow an interpretation, while working well in the case of one agency, may seriously interfere with congressional objectives when applied to another. The D. C. Circuit’s answer to this legal problem here was to interpret Exemption 2 in light of Congress’ basic effort to achieve a “workable balance between the interests of the public in greater access to information and the needs of the Government to protect certain kinds of information from disclosure.” John Doe Agency, supra, at 157. See also S. Rep. No. 1219, 88th Cong., 2d Sess., 8, 11 (1964) (emphasizing this “workable” balance); S. Rep. No. 813, at 3, 5 (same); H. R. Rep. No. 1497, at 2, 6 (same).

Further, 30 years of experience with Crooker’s holding suggests that it has not seriously interfered with the FOIA’s *590informational objectives, while at the same time it has permitted agencies to withhold much information which, in my view, Congress would not have wanted to force into the public realm. To focus only on the case law, courts have held that that information protected by Exemption 2 includes blueprints for Department of Agriculture buildings that store biological agents, Elliott v. Department of Agriculture, 518 F. Supp. 2d 217 (DC 2007); documents that would help hackers access National Aeronautics and Space Administration computers, Knight v. NASA, No. 2:04-cv-2054-MCE-GGH, 2006 WL 3780901, *6 (ED Cal., Dec. 21, 2006); agency credit card numbers, Judicial Watch, Inc. v. Department of Commerce, 83 F. Supp. 2d 105, 110 (DC 1999); Commodity Futures Trading Commission guidelines for settling cases, Shumaker, Loop & Kendrick, L. L. P. v. Commodity Futures Trading Comm’n, No. 3:97 CV 7139, 1997 U. S. Dist. LEXIS 23993, *10-*15 (ND Ohio, May 27, 1997); “trigger figures” that alert the Department of Education to possible mismanagement of federal funds, Wiesenfelder v. Riley, 959 F. Supp. 532, 536 (DC 1997); security plans for the Supreme Court Building and Supreme Court Justices, Voinche v. FBI, 940 F. Supp. 323, 328-329 (DC 1996); vulnerability assessments of Commerce Department computer security plans, Schreibman v. Department of Commerce, 785 F. Supp. 164, 165-166 (DC 1991); Bureau of Prisons guidelines for controlling riots and for storing hazardous chemicals, Miller v. Department of Justice, No. 87-0533, 1989 WL 10598 (DC, Jan. 31, 1989); guidelines for assessing the sensitivity of military programs, Institute for Policy Studies v. Department of Air Force, 676 F. Supp. 3, 4-5 (DC 1987); and guidelines for processing Medicare reimbursement claims, Dirksen, 803 F. 2d, at 1458-1459.

In other Exemption 2 cases, where withholding may seem less reasonable, the courts have ordered disclosure. Cf. ante, at 579, n. 9 (citing Audubon Soc. v. United States Forest Serv., 104 F. 3d 1201, 1203 (CA10 1997), and Maricopa Audu*591bon Soc. v. United States Forest Serv., 108 F. 3d 1082, 1084 (CA9 1997)). See generally FOIA Guide 201, and n. 106 (citing nine decisions applying the Crooker approach but nonetheless requiring disclosure).

The majority acknowledges that “our decision today upsets three decades of agency practice relying on Crooker, and therefore may force considerable adjustments.” Ante, at 580. But how are these adjustments to be made? Should the Government rely upon other exemptions to provide the protection it believes necessary? As Justice Alito notes, Exemption 7 applies where the documents consist of “records or information compiled for law enforcement purposes” and release would, e. g., “disclose techniques and procedures for law enforcement investigations,” or “could reasonably be expected to endanger the life or physical safety of any individual.” 5 U. S. C. § 552(b)(7). But what about information that is not compiled for law enforcement purposes, such as building plans, computer passwords, credit card numbers, or safe deposit combinations? The Government, which has much experience litigating FOIA cases, warns us that Exemption 7 “targets only a subset of the important agency functions that may be circumvented.” Brief for Respondent 52-53. Today’s decision only confirms this point, as the Court’s insistence on narrow construction might persuade judges to avoid reading Exemption 7 broadly enough to provide Crooker-type protection.

The majority suggests that the Government can classify documents that should remain private. Ante, at 580-581. See 5 U. S. C. § 552(b)(1) (permitting withholding of material “properly classified” as authorized to be “kept secret in the interest of national defense or foreign policy”). But classification is at best a partial solution. It takes time. It is subject to its own rules. As the Government points out, it would hinder the sharing of information about Government buildings with “first responders,” such as local fire and police departments. Brief for Respondent 53-54. And both Con*592gress and the President believe the Nation currently faces a problem of too much, not too little, classified material. See Reducing Over-Classification Act, 124 Stat. 2648; Exec. Order No. 13526, §§ 1.3(d), 2.1(d), 5.4(d)(10), 3 CFR 298, 299-300, 304, 321 (2009 Comp.). Indeed, Congress recently found:

“The 9/11 Commission and others have observed that the over-classification of information interferes with accurate, actionable, and timely information sharing, increases the cost of information security, and needlessly limits stakeholder and public access to information.
“Over-classification of information causes considerable confusion regarding what information may be shared with whom, and negatively affects the dissemination of information within the Federal Government and with State, local, and tribal entities, and with the private sector.” Reducing Over-Classification Act, §§2(2), (3), 124 Stat. 2648, note following 6 U. S. C. § 124m (2006 ed., Supp. IV).

These legislative findings suggest that it is “over-classification,” not Crooker, that poses the more serious threat to the FQIA’s public information objectives.

That leaves congressional action. As the Court points out, Congress remains free to correct whatever problems it finds in today’s narrowing of Exemption 2. But legislative action takes time; Congress has much to do; and other matters, when compared with a FOIA revision, may warrant higher legislative priority. In my view, it is for the courts, through appropriate interpretation, to turn Congress’ public information objectives into workable agency practice, and to adhere to such interpretations once they are settled.

That is why: Where the courts have already interpreted Exemption 2, where that interpretation has been consistently relied upon and followed for 30 years, where Congress has taken note of that interpretation in amending other parts *593of the statute, where that interpretation is reasonable, where it has proved practically helpful and achieved commonsense results, where it is consistent with the FOIA’s overall statutory goals, where a new and different interpretation raises serious problems of its own, and where that new interpretation would require Congress to act just to preserve a decades-long status quo, I would let sleeping legal dogs lie.

For these reasons, with respect, I dissent.

2.3.2.3 Food Mktg. Inst. v. Argus Leader Media 2.3.2.3 Food Mktg. Inst. v. Argus Leader Media

FOOD MARKETING INSTITUTE, Petitioner
v.
ARGUS LEADER MEDIA, dba Argus Leader

No. 18-481

Supreme Court of the United States.

Argued April 22, 2019
Decided June 24, 2019

Evan A. Young, Austin, TX, for the petitioner.

Anthony A. Yang for the United States as amicus curiae, by special leave of the Court, in support of the petitioner.

Robert M. Loeb, Washington, DC, for the respondent.

Jon E. Arneson, Sioux Falls, SD, Robert M. Loeb, Thomas M. Bondy, Samuel Harbourt, Randall C. Smith, Easha Anand, Melanie Hallums, Orrick, Herrington &, Sutcliffe LLP, Washington, DC, for respondent.

Thomas R. Phillips, Gavin R. Villareal, Evan A. Young, Scott A. Keller, Stephanie F. Cagniart, Ellen Springer, Baker Botts L.L.P., Austin, TX, for petitioner.

Justice GORSUCH delivered the opinion of the Court.

*2360Congress has instructed that the disclosure requirements of the Freedom of Information Act do "not apply" to "confidential" private-sector "commercial or financial information" in the government's possession. But when does information provided to a federal agency qualify as "confidential"? The Food Marketing Institute says it's enough if the owner keeps the information private rather than releasing it publicly. The government suggests that an agency's promise to keep information from disclosure may also suffice to render it confidential. But the courts below imposed a different requirement yet, holding that information can never be deemed confidential unless disclosing *2361it is likely to result in "substantial competitive harm" to the business that provided it. Finding at least this "competitive harm" requirement inconsistent with the terms of the statute, we reverse.

I

This case began when Argus Leader, a South Dakota newspaper, filed a FOIA request for data collected by the United States Department of Agriculture. The USDA administers the national food-stamp program, known as the Supplemental Nutrition Assistance Program. Argus Leader asked the USDA for the names and addresses of all retail stores that participate in SNAP and each store's annual SNAP redemption data from fiscal years 2005 to 2010, which we refer to as "store-level SNAP data." The USDA tried to meet the paper halfway. It released the names and addresses of the participating stores but declined to disclose the requested store-level SNAP data. As relevant here, the USDA invoked FOIA's Exemption 4, which shields from disclosure "trade secrets and commercial or financial information obtained from a person and privileged or confidential." 5 U.S.C. § 552(b)(4).

Unsatisfied by the agency's disclosure, Argus sued the USDA in federal court to compel release of the store-level SNAP data. Like several other courts of appeals, the Eighth Circuit has engrafted onto Exemption 4 a so-called "competitive harm" test, under which commercial information cannot be deemed "confidential" unless disclosure is "likely ... to cause substantial harm to the competitive position of the person from whom the information was obtained." Argus Leader Media v. United States Dept. of Agriculture , 889 F.3d 914, 915 (2018) (internal quotation marks omitted). So the district court held a two-day bench trial to determine whether disclosure of the store-level SNAP data would cause substantial competitive harm to participating retailers.

At trial, witnesses for the USDA testified that retailers closely guard store-level SNAP data and that disclosure would threaten stores' competitive positions. They explained that retailers use models of consumer behavior to help choose new store locations and to plan sales strategies. Competitors' estimated sales volumes represent an important component of these models and can be time consuming and expensive to generate. And a model's accuracy and utility increase significantly if it includes a rival's actual sales data rather than mere estimates. So disclosure of store-level SNAP data could create a windfall for competitors: Stores with high SNAP redemptions could see increased competition for SNAP customers from existing competitors, new market entrants could use SNAP data to determine where to build their stores, and SNAP-redemption data could be used to discern a rival retailer's overall sales and develop strategies to win some of that business too. For its part, Argus Leader offered no fact witnesses and did not dispute that retailers customarily keep this data private or that it bears competitive significance. Instead, the company contended that any competitive harm associated with disclosure would not be substantial. In the end, the district court agreed; while "[c]ompetition in the grocery business is fierce," and while the record supported the conclusion that revealing store-level SNAP data could work some competitive harm, the court could not say that disclosure would rise to the level of causing "substantial competitive harm," and thus ordered disclosure. Argus Leader Media v. United States Dept. of Agriculture , 224 F.Supp.3d 827, 833-835 (S.D. 2016) (emphasis added).

*2362The USDA declined to appeal, but it alerted the retailers who had provided the data so that they could consider intervening to pursue the case further. The Food Marketing Institute, a trade association representing grocery retailers, answered the call. It successfully moved to intervene under Federal Rule of Civil Procedure 24(a) and then filed its own appeal. Meanwhile, the USDA assured the district court that it would not disclose the retailers' data pending appeal. Before the Eighth Circuit, the Institute argued that the court should discard the "substantial competitive harm" test and apply instead the ordinary public meaning of the statutory term "confidential." The court rejected that argument and affirmed. We granted the Institute a stay of the Eighth Circuit's mandate and, later, its petition for certiorari. 585 U. S. ----, 139 S.Ct. 5, 201 L.Ed.2d 1127 (2018) ; 586 U. S. ----, 139 S.Ct. 915, 202 L.Ed.2d 641 (2019).

II

Before turning to the merits, we confront a threshold challenge to our jurisdiction: Argus Leader questions whether the Institute has standing to pursue this appeal. To show standing under Article III, an appealing litigant must demonstrate that it has suffered an actual or imminent injury that is "fairly traceable" to the judgment below and that could be "redress[ed] by a favorable ruling." Monsanto Co. v. Geertson Seed Farms , 561 U.S. 139, 149-150, 130 S.Ct. 2743, 177 L.Ed.2d 461 (2010).

The Institute satisfies each of these criteria. Whether or not disclosure of the contested data would cause its member retailers "substantial competitive harm," the record before us reveals (and Argus Leader does not meaningfully dispute) that disclosure likely would cause them some financial injury. As the Eighth Circuit observed, the grocery industry is "highly competitive," and disclosure of store-level SNAP data likely would help competitors win business from the Institute's members. 889 F.3d at 916. This concrete injury is, as well, directly traceable to the judgment ordering disclosure. And a favorable ruling from this Court would redress the retailers' injury by reversing that judgment.

Argus Leader insists that the Institute's injury is not redressable because a favorable ruling would merely restore the government's discretion to withhold the requested data under Exemption 4, and it might just as easily choose to provide the data anyway. But the government has represented unequivocally that, consistent with its longstanding policy and past assurances of confidentiality to retailers, it "will not disclose" the contested data unless compelled to do so by the district court's order. Brief for United States as Amicus Curiae 35; accord, Tr. of Oral Arg. 18-22. A reversal here thus would ensure exactly the relief the Institute requests. That is enough to satisfy Article III. Monsanto , 561 U.S. at 152-153, 130 S.Ct. 2743.

III

A

As we've seen, Exemption 4 shields from mandatory disclosure "commercial or financial information obtained from a person and privileged or confidential." 5 U.S.C. § 552(b)(4). But FOIA nowhere defines the term "confidential." So, as usual, we ask what that term's "ordinary, contemporary, common meaning" was when Congress enacted FOIA in 1966. Perrin v. United States , 444 U.S. 37, 42, 100 S.Ct. 311, 62 L.Ed.2d 199 (1979). We've done the same with other undefined terms in FOIA. See, e.g. , *2363Milner v. Department of Navy , 562 U.S. 562, 569, 131 S.Ct. 1259, 179 L.Ed.2d 268 (2011) ; United States v. Weber Aircraft Corp. , 465 U.S. 792, 804, 104 S.Ct. 1488, 79 L.Ed.2d 814 (1984).

The term "confidential" meant then, as it does now, "private" or "secret." Webster's Seventh New Collegiate Dictionary 174 (1963). Contemporary dictionaries suggest two conditions that might be required for information communicated to another to be considered confidential. In one sense, information communicated to another remains confidential whenever it is customarily kept private, or at least closely held, by the person imparting it. See, e.g. , Webster's Third New International Dictionary 476 (1961) ("known only to a limited few" or "not publicly disseminated"); Black's Law Dictionary 370 (rev. 4th ed. 1968) ("intended to be held in confidence or kept secret"). In another sense, information might be considered confidential only if the party receiving it provides some assurance that it will remain secret. See, e.g. , 1 Oxford Universal Dictionary Illustrated 367 (3d ed. 1961) ("spoken or written in confidence"); Webster's New World Dictionary 158 (1960) ("told in confidence").

Must both of these conditions be met for information to be considered confidential under Exemption 4? At least the first condition has to be; it is hard to see how information could be deemed confidential if its owner shares it freely. And there's no question that the Institute's members satisfy this condition; uncontested testimony established that the Institute's retailers customarily do not disclose store-level SNAP data or make it publicly available "in any way." See, e.g., App. 93-94. Even within a company, witnesses testified, only small groups of employees usually have access to it. But what about the second condition: Can privately held information lose its confidential character for purposes of Exemption 4 if it's communicated to the government without assurances that the government will keep it private? As it turns out, there's no need to resolve that question in this case because the retailers before us clearly satisfy this condition too. Presumably to induce retailers to participate in SNAP and provide store-level information it finds useful to its adminstration of the program, the government has long promised them that it will keep their information private. See, e.g. , 43 Fed. Reg. 43275 (1978) ; see also Brief for United States as Amicus Curiae 27-30.

Early courts of appeals confronting Exemption 4 interpreted its terms in ways consistent with these understandings. In GSA v. Benson , 415 F.2d 878, 881 (1969), for example, the Ninth Circuit concluded that Exemption 4 would " 'protect information that a private individual wishes to keep confidential for his own purposes, but reveals to the government under the express or implied promise' " of confidentiality. The D. C. Circuit similarly held that Exemption 4 covered sales documents " 'which would customarily not be released to the public' " and which the government "agreed to treat ... as confidential." Sterling Drug Inc. v. FTC , 450 F.2d 698, 709 (1971) ; see also Grumman Aircraft Eng. Corp. v. Renegotiation Bd. , 425 F.2d 578, 580, 582 (1970) (information a private party "submitted 'in confidence' " or "would not reveal to the public [is] exempt from disclosure").

B

Notably lacking from dictionary definitions, early case law, or any other usual source that might shed light on the statute's ordinary meaning is any mention of the "substantial competive harm" requirement that the courts below found unsatisfied and on which Argus Leader pins its hopes. Indeed, when called on some years ago to interpret the similar phrase "information furnished by a confidential source"

*2364in FOIA Exemption 7(D), § 552(b)(7)(D), this Court looked, as we do now, to "common usage" and never suggested that the government must prove that the disclosure of a source's information would result in substantial harm. Department of Justice v. Landano , 508 U.S. 165, 173-174, 113 S.Ct. 2014, 124 L.Ed.2d 84 (1993).

So where did the "substantial competitive harm" requirement come from? In 1974, the D. C. Circuit declared that, in addition to the requirements actually set forth in Exemption 4, a "court must also be satisfied that non-disclosure is justified by the legislative purpose which underlies the exemption." National Parks & Conservation Assn. v. Morton , 498 F.2d 765, 767. Then, after a selective tour through the legislative history, the court concluded that "commercial or financial matter is 'confidential' [only] if disclosure of the information is likely ... (1) to impair the Government's ability to obtain necessary information in the future; or (2) to cause substantial harm to the competitive position of the person from whom the information was obtained." Id. , at 770. Without much independent analysis, a number of courts of appeals eventually fell in line and adopted variants of the National Parks test. See Contract Freighters, Inc. v. Secretary of U. S. Dept. of Transp. , 260 F.3d 858, 861 (CA8 2001) (collecting cases).

We cannot approve such a casual disregard of the rules of statutory interpretation. In statutory interpretation disputes, a court's proper starting point lies in a careful examination of the ordinary meaning and structure of the law itself. Schindler Elevator Corp. v. United States ex rel. Kirk , 563 U.S. 401, 407, 131 S.Ct. 1885, 179 L.Ed.2d 825 (2011). Where, as here, that examination yields a clear answer, judges must stop. Hughes Aircraft Co. v. Jacobson , 525 U.S. 432, 438, 119 S.Ct. 755, 142 L.Ed.2d 881 (1999). Even those of us who sometimes consult legislative history will never allow it to be used to "muddy" the meaning of "clear statutory language." Milner , 562 U.S. at 572, 131 S.Ct. 1259. Indeed, this Court has repeatedly refused to alter FOIA's plain terms on the strength only of arguments from legislative history. See, e.g., Landano , 508 U.S. at 178, 113 S.Ct. 2014 (refusing to expand the plain meaning of Exemption 7(D) based on legislative history); Weber Aircraft , 465 U.S. at 800-803, 104 S.Ct. 1488 (refusing to restrict Exemption 5 based on legislative history).

National Parks ' contrary approach is a relic from a "bygone era of statutory construction." Brief for United States as Amicus Curiae 19. Not only did National Parks inappropriately resort to legislative history before consulting the statute's text and structure, once it did so it went even further astray. The court relied heavily on statements from witnesses in congressional hearings years earlier on a different bill that was never enacted into law. 498 F.2d at 767-769. Yet we can all agree that "excerpts from committee hearings" are " 'among the least illuminating forms of legislative history.' " Advocate Health Care Network v. Stapleton , 581 U. S. ----, ----, 137 S.Ct. 1652, 1661, 198 L.Ed.2d 96 (2017) ; see also Kelly v. Robinson , 479 U.S. 36, 51, n. 13, 107 S.Ct. 353, 93 L.Ed.2d 216 (1986) (declining to "accord any significance" to "comments in [legislative] hearings"). Perhaps especially so in cases like this one, where the witness statements do not comport with official committee reports that are consistent with the plain and ordinary meaning of the statute's terms. See S. Rep. No. 813, 89th Cong., 1st Sess., 9 (1965) (Exemption 4 protects information "which would customarily not be released to the public by the person from whom it was obtained" such as "business sales statistics" and "customer *2365lists"); H. R. Rep. No. 1497, 89th Cong., 2d Sess., 10 (1966) (Exemption 4 exempts material "if it would not customarily be made public by the person from whom it was obtained by the Government" and "information which is given to an agency in confidence" such as "business sales statistics").

Unsurprisingly, National Parks has drawn considerable criticism over the years. See, e.g., Critical Mass Energy Project v. NRC , 931 F.2d 939, 947 (CADC 1991) (Randolph, J., concurring) ( National Parks was " 'fabricated ... out of whole cloth' "); New Hampshire Right to Life v. Department of Health and Human Servs ., 577 U. S. ----, 136 S.Ct. 383, 193 L.Ed.2d 412 (2015) (Thomas, J., joined by Scalia, J., dissenting from denial of certiorari). Even the D. C. Circuit has distanced itself from the decision. While retaining National Parks principally as a matter of stare decisis in the context of information a private entity is required to provide to the government, the court has pointedly declined to extend the National Parks test to information provided voluntarily to the government under Exemption 4. There, the court has adhered to a much more traditional understanding of the statutory term "confidential," holding that information qualifies as confidential "if it is of a kind that would customarily not be released to the public by the person from whom it was obtained." Critical Mass Energy Project v. NRC , 975 F.2d 871, 879-880 (CADC 1992) (en banc); see also id., at 880-882 (Randolph, J., concurring). Nor, unbound by D. C. Circuit precedent, can we discern a persuasive reason to afford the same statutory term two such radically different constructions. Ratzlaf v. United States , 510 U.S. 135, 143, 114 S.Ct. 655, 126 L.Ed.2d 615 (1994).

C

That leaves Argus Leader to try to salvage the result, if not the reasoning, of National Parks . But here its arguments prove no more persuasive. The company begins by rearranging the text of Exemption 4 to create a phrase that does not appear in the statute: "confidential commercial information." Then, it suggests this synthetic term mirrors a preexisting common law term of art. And finally it asserts that the common law term covers only information whose release would lead to substantial competitive harm. But Argus Leader points to no treatise or case decided before Exemption 4's adoption that assigned any such meaning to the terms actually before us: "commercial or financial information [that is] privileged or confidential." So even accepting (without granting) that other phrases may carry the specialized common law meaning Argus Leader supposes, the parties have mustered no evidence that the terms of Exemption 4 did at the time of their adoption. Nor will this Court ordinarily imbue statutory terms with a specialized common law meaning when Congress hasn't itself invoked the common law terms of art associated with that meaning. See, e.g., Bruesewitz v. Wyeth LLC , 562 U.S. 223, 233-235, 131 S.Ct. 1068, 179 L.Ed.2d 1 (2011).

Alternatively, the company suggests that, whatever the merits of National Parks as an initial matter, Congress effectively ratified its understanding of the term "confidential" by enacting similar phrases in other statutes in the years since that case was decided. To be sure, the ratification canon can sometimes prove a useful interpretive tool. But it derives from the notion that Congress is aware of a definitive judicial interpretation of a statute when it reenacts the same statute using the same language.

*2366Helsinn Healthcare S. A. v. Teva Pharmaceuticals USA, Inc. , 586 U. S. ----, ----, 139 S.Ct. 628, 633-634, 202 L.Ed.2d 551 (2019). And Congress has never reenacted Exemption 4. So whether Congress's use of similar language in other statutes after National Parks might (or might not) tell us what later Congresses understood those other statutes to mean, it tells us nothing about Congress's understanding of the language it enacted in Exemption 4 in 1966.

Finally, Argus urges us to adopt a "substantial competitive harm" requirement as a matter of policy because it believes FOIA exemptions should be narrowly construed. But as we have explained in connection with another federal statute, we normally "have no license to give [statutory] exemption[s] anything but a fair reading." Encino Motorcars, LLC v. Navarro , 584 U. S. ----, ----, 138 S.Ct. 1134, 1142, 200 L.Ed.2d 433 (2018). Nor do we discern a reason to depart from that rule here: FOIA expressly recognizes that "important interests [are] served by [its] exemptions," FBI v. Abramson , 456 U.S. 615, 630-631, 102 S.Ct. 2054, 72 L.Ed.2d 376 (1982), and "[t]hose exemptions are as much a part of [FOIA's] purpose[s and policies] as the [statute's disclosure] requirement," Encino Motorcars , 584 U. S., at ----, 138 S.Ct., at 1142. So, just as we cannot properly expand Exemption 4 beyond what its terms permit, see, e.g., Milner , 562 U.S. at 570-571, 131 S.Ct. 1259, we cannot arbitrarily constrict it either by adding limitations found nowhere in its terms.

Our dissenting colleagues appear to endorse something like this final argument. They seem to agree that the law doesn't demand proof of "substantial" or "competitive" harm, but they think it would be a good idea to require a showing of some harm. Neither side, however, has advocated for such an understanding of the statute's terms. And our colleagues' brief brush with the statutory text doesn't help; they cite exclusively from specialized dictionary definitions lifted from the national security classification context that have no bearing on Exemption 4. Really, our colleagues' submission boils down to a policy argument about the benefits of broad disclosure. But as Justice BREYER has noted, when Congress enacted FOIA it sought a "workable balance" between disclosure and other governmental interests-interests that may include providing private parties with sufficient assurances about the treatment of their proprietary information so they will cooperate in federal programs and supply the government with information vital to its work. See Milner , 562 U.S. at 589, 131 S.Ct. 1259 (dissenting opinion) (arguing for a broad exemption from FOIA disclosure obligations to honor a "workable balance" between disclosure and privacy).

*

At least where commercial or financial information is both customarily and actually treated as private by its owner and provided to the government under an assurance of privacy, the information is "confidential" within the meaning of Exemption 4. Because the store-level SNAP data at issue here is confidential under that construction, the judgment of the court of appeals is reversed and the case is remanded for further proceedings consistent with this opinion.

It is so ordered .

Justice BREYER, with whom Justice GINSBURG and Justice SOTOMAYOR join, concurring in part and dissenting in part.

The Freedom of Information Act (FOIA) requires the government to make information available to the public upon request. 5 U.S.C. § 552(a)(3)(A). It also contains a list of exemptions. § 552(b). Exemption *23674 says that the Act does "not apply" to "commercial or financial information obtained from a person and ... confidential." § 552(b)(4). The majority holds that "commercial or financial information" is "confidential" and consequently falls within the scope of this exemption "[a]t least" where it is "[1] both customarily and actually treated as private by its owner and [2] provided to the government under an assurance of privacy." Ante, at ----. The majority spells out two conditions, but in my view there is a third: Release of such information must also cause genuine harm to the owner's economic or business interests.

Since 1974, when the District of Columbia Circuit decided National Parks and Conservation Assn. v. Morton , 498 F.2d 765, nearly every lower court has imposed some kind of harm requirement. See New Hampshire Right to Life v. Department of Health and Human Servs. , 577 U. S. ----, ----, 136 S.Ct. 383, 384, 193 L.Ed.2d 412 (2015) (THOMAS, J., dissenting from denial of certiorari) (noting that "every Court of Appeals to consider Exemption 4 has interpreted it [using] National Park[s] "); Critical Mass Energy Project v. NRC , 975 F.2d 871, 876 (CADC 1992) (en banc) (collecting cases). One way to satisfy that requirement is by showing that disclosure is "likely" to "cause substantial harm to the competitive position of the person from whom the information was obtained." National Parks , 498 F.2d at 770, and n. 17. The Eighth Circuit, in this case, applied the same standard. Argus Leader Media v. United States Dept. of Agriculture , 889 F.3d 914, 915 (2018). And, like the majority, I believe that National Parks ' harm requirement goes too far.

For one thing, National Parks held that the only form of private harm that can warrant nondisclosure is "competitive " harm. 498 F.2d at 770-771 (emphasis added). Later courts took this to mean that harm from "future or potential competition" does not suffice, Niagara Mohawk Power Corp. v. Department of Energy , 169 F.3d 16, 19 (CADC 1999), and even that harm must "flo[w] from the affirmative use of proprietary information by competitors ," Public Citizen Health Research Group v. FDA , 704 F.2d 1280, 1291, n. 30 (CADC 1983) (some emphasis added). But disclosure of confidential information can cause a business serious harm in ways not so directly linked to competition. Disclosure, for example, might discourage customers from using a firm's products, but without substantial effect on its rivals. It could mean increased potential competition, which may, or may not, materialize. It could, by revealing buying habits, undermine a regulated firm that has no competitors. The list goes on. I can discern no basis in the statute for categorically excluding these other types of harm from the scope of Exemption 4.

Similarly, the need to prove "substantial" competitive harm can sometimes produce complex debates about the nature of competition and the degree of injury. National Parks , 498 F.2d at 770. And those debates can mean long, onerous court proceedings concerning issues far removed from the genuine fear of harm that leads firms to keep information secret in the first place. The National Parks decision itself led to a remand for days of hearings, a second appeal, and yet another remand, so that more evidence about the competitive conditions facing two particular park concessionaires could be heard. National Parks and Conservation Assn. v. Kleppe , 547 F.2d 673, 675 (CADC 1976). Like the majority, I can find nothing in FOIA's language, purposes, or history that imposes so stringent a requirement. Accordingly, I would clarify that a private harm need not be "substantial" so long as it is genuine.

*2368On the other hand, I cannot agree with the majority's decision to jump to the opposite conclusion, namely, that Exemption 4 imposes no "harm" requirement whatsoever. After all, the word "confidential" sometimes refers, at least in the national security context, to information the disclosure of which would cause harm. See, e.g. , Webster's Third New International Dictionary 476 (1966) (defining "confidential" to mean "characterized by or relating to information considered prejudicial to a country's interests"); Webster's New Collegiate Dictionary 237 (1974) (defining "confidential" to mean "containing information whose unauthorized disclosure could be prejudicial to the national interest"). And a speaker can more sensibly refer to his Social Security number as "confidential" than his favorite color, in part because release of the former is more likely to cause harm. "Confidential," in this sense, conveys something about the nature of the information itself, not just (as the majority suggests) how it is kept by those who possess it.

Reading "confidential" in this more restrictive sense is more faithful to FOIA's purpose and how we have interpreted the Act in the past. This Court has made clear that the "mandate of the FOIA" is "broad disclosure of Government records." CIA v. Sims , 471 U.S. 159, 166, 105 S.Ct. 1881, 85 L.Ed.2d 173 (1985). Its purpose is to "permit access to official information long shielded unnecessarily from public view" and "to create a judicially enforceable public right to secure such information from possibly unwilling official hands." EPA v. Mink , 410 U.S. 73, 80, 93 S.Ct. 827, 35 L.Ed.2d 119 (1973). To that end, we have continuously held that FOIA's enumerated exemptions "must be narrowly construed." Department of Air Force v. Rose , 425 U.S. 352, 361, 96 S.Ct. 1592, 48 L.Ed.2d 11 (1976) ; see, e.g., Milner v. Department of Navy , 562 U.S. 562, 565, 131 S.Ct. 1259, 179 L.Ed.2d 268 (2011) (same); FBI v. Abramson , 456 U.S. 615, 630, 102 S.Ct. 2054, 72 L.Ed.2d 376 (1982) (noting our "oft-repeated caveat that FOIA exemptions are to be narrowly construed").

The majority's reading of Exemption 4 is at odds with these principles. The whole point of FOIA is to give the public access to information it cannot otherwise obtain. So the fact that private actors have "customarily and actually treated" commercial information as secret, ante, at 2366, cannot be enough to justify nondisclosure. After all, where information is already publicly available, people do not submit FOIA requests-they use Google. Nor would a statute designed to take from the government the power to unilaterally decide what information the public can view, see Mink , 410 U.S. at 80, 93 S.Ct. 827, put such determinative weight on the government's preference for secrecy (what the majority calls the government's "assurance of privacy"), ante , at 2366.

For the majority, a business holding information as private and submitting it under an assurance of privacy is enough to deprive the public of access. But a tool used to probe the relationship between government and business should not be unavailable whenever government and business wish it so. And given the temptation, common across the private and public sectors, to regard as secret all information that need not be disclosed, I fear the majority's reading will deprive the public of information for reasons no better than convenience, skittishness, or bureaucratic inertia. The Exemption's focus on "commercial" or "financial" information, for instance, implies that the harm caused by disclosure must do more than, say, simply embarrass the information's owner. It must cause some genuine harm to an owner's economic or business interests.

*2369In sum, the language permits, and the purpose, precedent, and context all suggest, an interpretation that insists upon some showing of harm. And I believe we should say just that. Exemption 4 can be satisfied where, in addition to the conditions set out by the majority, release of commercial or financial information will cause genuine harm to an owner's economic or business interests. (Because it is not at issue, I express no opinion as to whether genuine harm to a government interest would suffice.) I would remand the case for a determination as to whether, in this instance, release of the information at issue will cause that genuine harm. To that extent, I dissent from the majority's decision.

2.3.2.4 FWS v. Sierra Club 2.3.2.4 FWS v. Sierra Club

141 S. Ct. 777 (2021)

Argued November 2, 2020.

Decided March 4, 2021.

Justice BARRETT delivered the opinion of the Court.

. . .

I

A

In April 2011, the Environmental Protection Agency (EPA) proposed a rule on the design and operation of "cooling water intake structures," which withdraw large volumes of water from various sources to cool industrial equipment. EPA's stated goal was to require industrial facilities to use "the best technology available" for "minimizing adverse environmental impact." 76 Fed. Reg. 22174 (2011). But it was unclear whether the proposed rule would achieve that goal, at least when it came to aquatic wildlife. The water withdrawn by these structures typically contains fish and other organisms that can become trapped in the intake system and die. If the EPA's rule did not adequately guard against this risk, it would jeopardize species protected under the Endangered Species Act of 1973, 87 Stat. 884, 16 U.S.C. § 1531 et seq.

When an agency plans to undertake action that might "adversely affect" a protected species, the agency must consult with the U.S. Fish and Wildlife Service (FWS) and National Marine Fisheries Service (NMFS) (together, "Services") before proceeding. See 16 U.S.C. § 1536(a)(2); 50 CFR §§ 402.01-402.17 (2019).[1] The goal of the consultation is to assist the Services in preparing an official "biological opinion" on whether the agency's proposal will jeopardize the continued existence of threatened or endangered species. § 402.14(g)(4). These opinions are known as "`jeopardy'" or "`no jeopardy'" biological opinions. § 402.14(h)(1)(iv), as amended, 84 Fed. Reg. 45017 (2019). If the Services conclude that the action will cause "jeopardy," they must propose "reasonable and prudent alternatives" to the action that would avoid harming the threatened species. 16 U.S.C. § 1536(b)(3)(A); 50 CFR § 402.14(h)(2). And if a "jeopardy" biological opinion is issued, the agency must either implement the reasonable and prudent alternatives, terminate the action altogether, or seek an exemption from the Endangered Species Committee. 16 U.S.C. §§ 1536(b)(4), (g), 1538(a).

The EPA began informally consulting with the Services about its proposed regulations on cooling water intake structures in 2012, see 50 CFR § 402.13, and it requested a formal consultation in 2013, see § 402.14. Throughout this period, the Services and the EPA conducted meetings, held conference calls, and exchanged emails and draft documents on the proposed rule and its potential effect on endangered species.

As a result of the consultation, the EPA made changes to its proposed rule, and the Services received the revised version in November 2013. Soon after, the Services tentatively agreed to provide the EPA with draft biological opinions by December 6, 2013, and final opinions by December 20, 2013. See § 402.14(g)(5) (requiring the Services to provide a "draft biological opinion" to action agency upon request).

Staff members at NMFS completed a draft biological opinion on December 6, and staff members at FWS completed a draft on December 9. Both drafts concluded that the proposed rule was likely to jeopardize certain species and identified possible reasonable and prudent alternatives that the EPA could pursue. Staff members sent the drafts to the relevant decisionmakers within each Service and prepared to circulate them to the EPA.

But decisionmakers at the Services neither approved the drafts nor sent them to the EPA. Instead, concluding that "more work needed to be done," the decisionmakers decided to continue discussions with the EPA. App. 37, 58-59. The EPA was still engaged in an internal debate about key elements of the rule, and the Services wanted a better grasp of what the EPA proposed to do. So the Services shelved the draft opinions and agreed with the EPA to extend the period of consultation.

Over the next several months, the Services and the EPA continued to discuss the rule, and in March 2014, the EPA sent the Services a proposed rule that differed significantly from the 2013 version. Satisfied that the revised rule was unlikely to harm any protected species, the Services issued a joint final "no jeopardy" biological opinion, thereby terminating the formal consultation. See 50 CFR § 402.14(m)(1), as amended, 84 Fed. Reg. 45016. The EPA issued its final rule that same day.

B

Sierra Club, an environmental organization, later submitted FOIA requests for records related to the Services' consultations with the EPA. The Services turned over thousands of documents, but they invoked the deliberative process privilege for others—including the draft biological opinions analyzing the EPA's 2013 proposed rule. The deliberative process privilege shields documents that reflect an agency's preliminary thinking about a problem, as opposed to its final decision about it. The Services asserted that as drafts, the withheld documents were necessarily nonfinal and therefore protected.

. . .

II

A

FOIA mandates the disclosure of documents held by a federal agency unless the documents fall within one of nine enumerated exemptions. See 5 U.S.C. § 552(b). The fifth of those exemptions protects "inter-agency or intra-agency memorandums or letters that would not be available by law to a party other than an agency in litigation with the agency." § 552(b)(5). As the text indicates—albeit in a less-than-straightforward way—this exemption incorporates the privileges available to Government agencies in civil litigation. That list includes the deliberative process privilege, attorney-client privilege, and attorney work-product privilege. See Department of Interior v. Klamath Water Users Protective Assn., 532 U.S. 1, 8, 121 S.Ct. 1060, 149 L.Ed.2d 87 (2001).

This case concerns the deliberative process privilege, which is a form of executive privilege. To protect agencies from being "forced to operate in a fishbowl," EPA v. Mink, 410 U.S. 73, 87, 93 S.Ct. 827, 35 L.Ed.2d 119 (1973) (internal quotation marks omitted), the deliberative process privilege shields from disclosure "documents reflecting advisory opinions, recommendations and deliberations comprising part of a process by which governmental decisions and policies are formulated," NLRB v. Sears, Roebuck & Co., 421 U.S. 132, 150, 95 S.Ct. 1504, 44 L.Ed.2d 29 (1975) (internal quotation marks omitted). The privilege is rooted in "the obvious realization that officials will not communicate candidly among themselves if each remark is a potential item of discovery and front page news." Klamath, 532 U.S. at 8-9, 121 S.Ct. 1060. To encourage candor, which improves agency decisionmaking, the privilege blunts the chilling effect that accompanies the prospect of disclosure.

This rationale does not apply, of course, to documents that embody a final decision, because once a decision has been made, the deliberations are done. The privilege therefore distinguishes between predecisional, deliberative documents, which are exempt from disclosure, and documents reflecting a final agency decision and the reasons supporting it, which are not. See Renegotiation Bd. v. Grumman Aircraft Engineering Corp., 421 U.S. 168, 186, 95 S.Ct. 1491, 44 L.Ed.2d 57 (1975). Documents are "predecisional" if they were generated before the agency's final decision on the matter, and they are "deliberative" if they were prepared to help the agency formulate its position. See Sears, 421 U.S. at 150-152, 95 S.Ct. 1504Grumman, 421 U.S. at 184-186, 190, 95 S.Ct. 1491. There is considerable overlap between these two prongs because a document cannot be deliberative unless it is predecisional.

It is not always self-evident whether a document represents an agency's final decision, but one thing is clear: A document is not final solely because nothing else follows it. Sometimes a proposal dies on the vine. National Security Archive v. CIA, 752 F.3d 460, 463 (CADC 2014) (KAVANAUGH, J.). That happens in deliberations—some ideas are discarded or simply languish. Yet documents discussing such dead-end ideas can hardly be described as reflecting the agency's chosen course. See Sears, 421 U.S. at 150-151, 95 S.Ct. 1504. What matters, then, is not whether a document is last in line, but whether it communicates a policy on which the agency has settled.

To decide whether a document communicates the agency's settled position, courts must consider whether the agency treats the document as its final view on the matter. See id., at 161, 95 S.Ct. 1504. When it does so, the deliberative "process by which governmental decisions and policies are formulated" will have concluded, and the document will have "real operative effect." Id., at 150, 160, 95 S.Ct. 1504 (internal quotation marks omitted). In other words, once cited as the agency's final view, the document reflects "the `consummation' of the agency's decisionmaking process" and not a "merely tentative" position. See Bennett v. Spear, 520 U.S. 154, 177-178, 117 S.Ct. 1154, 137 L.Ed.2d 281 (1997) (discussing finality in context of obtaining judicial review of agency action). By contrast, a document that leaves agency decisionmakers "free to change their minds" does not reflect the agency's final decision. Grumman, 421 U.S. at 189-190, and n. 26, 95 S.Ct. 1491.

B

The deliberative process privilege protects the draft biological opinions at issue here because they reflect a preliminary view—not a final decision—about the likely effect of the EPA's proposed rule on endangered species.[3]

We start with the obvious point that the Services identified these documents as "drafts." A draft is, by definition, a preliminary version of a piece of writing subject to feedback and change. That is not to say that the label "draft" is determinative. As we have explained before, a court must evaluate the documents "in the context of the administrative process which generated them." Sears, 421 U.S. at 138, 95 S.Ct. 1504. Here, though, the administrative context confirms that the drafts are what they sound like: opinions that were subject to change.

Consider the regulatory process that generates a draft biological opinion. The governing regulation distinguishes between draft and final biological opinions by separating the steps at which each is produced. If the Services prepare a biological opinion, they must "make available" to the action agency—in this case, the EPA—a "draft" of that opinion and generally may not issue the final opinion "while the draft is under review" by the action agency. 50 CFR § 402.14(g)(5). This provision thus specifically contemplates further review by the agency after receipt of the draft, and with it, the possibility of changes to the biological opinion after the Services send the agency the draft.[4]

Consistent with this understanding, the agreement between the Services and the EPA allowed for the possibility of postcirculation changes. The Services were scheduled to provide the EPA with draft copies of the biological opinions on December 6 and final versions by December 20. If the drafts were to be final and immune from change, there would have been little reason to include a two-week period between the Services' circulation of the drafts and their submission of the final product. The logical inference is that the Services expected the EPA to provide comments that they might incorporate into the final opinion.

Sierra Club contends, though, that while these documents may have been called "drafts," they were actually intended to give the EPA a sneak peek at a conclusion that the Services had already reached and were unwilling to change. And Sierra Club says that the EPA responded accordingly: Once the EPA knew that a jeopardy opinion was coming, it revised its proposed rule. Sierra Club insists that the draft opinions thus had an "operative effect" on the EPA and must be treated as final under our precedent. See Sears, 421 U.S. at 160, 95 S.Ct. 1504.

Sierra Club misunderstands our precedent. While we have identified a decision's "real operative effect" as an indication of its finality, that reference is to the legal, not practical, consequences that flow from an agency's action. Ibid. (noting that the relevant memorandum has "real operative effect" because it "permits litigation before the Board"); id., at 159, n. 25, 95 S.Ct. 1504 (comparing the "operative effect" of the memorandum to that of a district court order). In this regulatory scheme, a final biological opinion leads to "direct and appreciable legal consequences" because it alters "the legal regime to which the action agency is subject, authorizing it" to take action affecting an endangered species "if (but only if) it complies with the prescribed conditions." Bennett, 520 U.S. at 178, 117 S.Ct. 1154. That is not true of a draft biological opinion.

To be sure, a draft biological opinion might carry a practical consequence if it prompts the action agency to change its proposed rule. For example, the agency might adopt an alternative approach that avoids jeopardizing an endangered species. But many documents short of a draft biological opinion could prompt an agency to alter its rule. An agency might make changes in response to the Services' views—or, for that matter, the views of the agency's own officials—at any stage of the consultation process. And even Sierra Club does not contend that any email or memorandum that has the effect of changing an agency's course constitutes a final administrative decision. That approach would gut the deliberative process privilege.

Sierra Club's proposed effects-based test is therefore not the right one. To determine whether the privilege applies, we must evaluate not whether the drafts provoked a response from the EPA but whether the Services treated them as final.

They did not. The drafts were prepared by lower-level staff and sent to the Services' decisionmakers for approval. Sierra Club characterizes the drafts as polished documents lacking only an autopen signature. But the determinative fact is not their level of polish—it is that the decisionmakers at the Services neither approved the drafts nor sent them to the EPA. Instead, the decisionmakers concluded that "more work needed to be done" and extended the time for consultation with the EPA. These documents, then, are best described not as draft biological opinions but as drafts of draft biological opinions. Sierra Club's argument thus fails on its own terms: Even assuming that a draft biological opinion would have expressed the Services' settled conclusion, a draft of a draft is a far cry from an "agency decision already made." Grumman, 421 U.S. at 184, 95 S.Ct. 1491.

It is true, as Sierra Club emphasizes, that the staff recommendations proved to be the last word within the Services about the 2013 version of the EPA's proposed rule. But that does not change our analysis. The recommendations were not last because they were final; they were last because they died on the vine. See Sears, 421 U.S. at 151, n. 18, 95 S.Ct. 1504 ("[C]ourts should be wary of interfering" with drafts that "do not ripen into agency decisions"). Further consultation with the Services prompted the EPA to alter key features of its 2013 proposal, so there was never a need for the Services to render a definitive judgment about it. The opinion that came to fruition was the Services' joint "no jeopardy" opinion about the 2014 version of the EPA's proposed rule. The staff recommendations were thus part of a deliberative process that worked as it should have: The Services and the EPA consulted about how the rule would affect aquatic wildlife until the EPA settled on an approach that would not jeopardize any protected species.

Sierra Club warns that ruling against it here would permit the Services to stamp every document "draft," thereby protecting even final agency decisions and creating "`secret [agency] law.'" Id., at 153, 95 S.Ct. 1504. It is true that a draft document will typically be predecisional because, as we said earlier, calling something a draft communicates that it is not yet final. But determining whether an agency's position is final for purposes of the deliberative process privilege is a functional rather than formal inquiry. If the evidence establishes that an agency has hidden a functionally final decision in draft form, the deliberative process privilege will not apply. The Services, however, did not engage in such a charade here.

. . .

Justice BREYER, with whom Justice SOTOMAYOR joins, dissenting.

. . .  I agree with the Court that whether a document is "final" or "deliberative" primarily depends upon its "function[]" within an agency's decision-making process. Ante, at 788; see also NLRB v. Sears, Roebuck & Co., 421 U.S. 132, 138, 95 S.Ct. 1504, 44 L.Ed.2d 29 (1975) ("[T]he function of the documents" and "the context of the administrative process which generated them" is "[c]rucial" to understanding whether the deliberative process privilege applies). I believe that, in the context before us, the Services' Draft Biological Opinions reflect "final" decisions regarding the "jeopardy" the EPA's then-proposed actions would have caused. Hence, they would normally fall outside, not within, Exemption 5.

Five features of the Draft Biological Opinion lead me to this conclusion. First, literally speaking, a Draft Biological Opinion is a "final" document with respect to its content. That is in fact the key difference between a Draft Biological Opinion and a Draft of a Draft Biological Opinion. If further deliberation about the draft's content is likely, the document is not a Draft Biological Opinion. It is a Draft of a Draft. I recognize that in principle a Service might change its mind about the content of even the most final of Draft Biological Opinions. It might then prepare a new Draft Biological Opinion. But, in principle, a Service could also change its mind about a Final Biological Opinion, withdrawing a Final Biological Opinion already issued and substituting a new one in its place. See, e.g., Oregon Natural Resources Council v. Allen, 476 F.3d 1031, 1032 (CA9 2007) (Fish and Wildlife Service "voluntarily reinitiated consultation ... [and] withdrew its favorable Biological Opinion"); see also 50 CFR § 402.16 (2019) (requiring the Services to reinitiate consultation in specified circumstances, including when "new information reveals effects of the action that may affect listed species or critical habitat in a manner or to an extent not previously considered"). The mere possibility of a future change does not alter the finality, or the final effect, of the original document.

Second, a Final Biological Opinion and a Draft Biological Opinion finding jeopardy serve the same functions within the formal administrative process. Both explain the Services' findings. Both set forth "reasonable and prudent" modifications or alternatives. 16 U.S.C. § 1536(b)(3)(A). And both have substantially the same effect on the EPA (the action agency in this case). . . .

A Draft Biological Opinion differs from a Final Biological Opinion in only one way that matters. The Services must make the Draft Biological Opinion available to the EPA before it issues a Final Biological Opinion. 50 CFR § 402.14(g)(5). It then continues its consultation with the EPA but not with an eye toward changing the Services' environmental analysis or conclusions. Rather, the negotiations are designed to find less damaging alternatives to the original EPA-proposed action. See ibid. (allowing the action agency to request the Draft Biological Opinion "for the purpose of analyzing the reasonable and prudent alternatives"). If the agencies find suitable alternatives, the EPA will then publicly adopt those alternatives, and the process will culminate in a Final Biological Opinion finding no jeopardy.

The function of a Draft Biological Opinion finding jeopardy then is much the same as that of a Final Biological Opinion finding jeopardy. Transmitting the Draft Biological Opinion to the EPA simply allows the EPA to make its choice before a Final Biological Opinion issues. See ibid.

Third, agency practice shows that the Draft Biological Opinion, not the Final Biological Opinion, is the document that informs the EPA of the Services' conclusions about jeopardy and alternatives and triggers within the EPA the process of deciding what to do about those conclusions. Amici tell us without contradiction that "out of 6,829 formal consultations" between 2008 and 2015, the Fish and Wildlife Service "issued a [Final Biological Opinion finding] jeopardy" "only twice." Brief for Center for Biological Diversity et al. as Amici Curiae 22-23. If a Final Biological Opinion is discoverable under FOIA, as all seem to agree it is, why would a Draft Biological Opinion, embodying the same Service conclusions (and leaving the EPA with the same four choices), not be?

Fourth, permitting discovery of Draft Biological Opinions under FOIA is unlikely to chill frank discussion within a Service because the Services' staff are already aware that these Drafts may well be made public. And for good reason. When a private party prompts the agency action under review, say, by seeking an EPA permit, regulations require the Service to make the Draft Biological Opinion available to the private applicant, removing the Draft Biological Opinion from Exemption 5's protection. See 50 CFR § 402.14(g)(5) (requiring disclosure of Draft Biological Opinions to private applicants if requested); see also Department of Interior v. Klamath Water Users Protective Assn., 532 U.S. 1, 4-5, 121 S.Ct. 1060, 149 L.Ed.2d 87 (2001) (documents exchanged between agency and third party not covered by Exemption 5 because they are no longer inter-agency or intra-agency communications). To hold that Draft Biological Opinions are discoverable when a private party seeks an EPA permit but not when, as here, the EPA seeks to write a generally applicable rule that governs private party conduct seems highly anomalous.

Even where there is no private applicant, the evaluating agencies have a long history of disclosing Draft Biological Opinions to the public. See, e.g., App. 93-98, 102-104 (discussing timing of Draft Biological Opinion disclosure); see also id., at 93-98 (discussing roll-out plan and public talking points for Draft Biological Opinion); Supp. Record in No. 17-16560 (CA9), pp. 164-199 (citing additional examples of public disclosure of Draft Biological Opinions); L. Schiffer, National Oceanic and Atmospheric Admin., Guidelines for Compiling an Agency Administrative Record 10 (Dec. 21, 2012), https://www.gc.noaa.gov/documents/2012/AR_Guidelines_122112-Final.pdf ("Final draft documents with independent legal significance, such as final draft environmental impact statements,... will not be flagged for potential listing on the agency's Privilege Log" (emphasis in original)). The EPA too may well release a Service's Draft Biological Opinion. See App. 96 ("EPA [Office of Water] has a track record of putting these drafts on their docket which then show up on regulations.gov"); see also id., at 95 ("I agree that it is likely that EPA will put this draft on their docket").

Fifth, legal consequences flow from the Services' completion of a Draft Biological Opinion. The Services' regulations state that "[i]f requested, the Service shall make available to the Federal agency [i.e., the EPA] the draft biological opinion for the purpose of analyzing the reasonable and prudent alternatives." 50 CFR § 402.14(g)(5). Once the Draft Biological Opinion is under review at the EPA, the Services may not issue a Final Biological Opinion prior to the specified deadline. Ibid. Moreover, as explained, Draft Biological Opinions, like Final Biological Opinions, limit the EPA's set of available options. Cf. Bennett v. Spear, 520 U.S. 154, 178, 117 S.Ct. 1154, 137 L.Ed.2d 281 (1997) (holding that a Final Biological Opinion has "legal consequences," even though the action agency is not legally obligated to accept the opinion's recommendations or conclusions, because the opinion "alter[s] the legal regime to which the action agency is subject"). Why, then, would these same consequences (together with the other factors mentioned above) not also place Draft Biological Opinions outside Exemption 5's protection?

In sum, the likely finality of a Draft Biological Opinion, its similarity to a Final Biological Opinion, the similar purposes it serves, the agency's actual practice, the anomaly that would otherwise exist depending upon the presence or absence of a private party, and the presence of at least some regulation-based legal constraints— convince me that a Draft Biological Opinion would not normally enjoy a deliberative privilege from FOIA disclosure.

. . .

For these reasons, I dissent.

 

2.4 Who Controls Agency Discretion? 2.4 Who Controls Agency Discretion?

At this point in the semester it should be clear to you that agencies have lots of discretion. There's nothing necessarily nefarious about this: after all, if agencies have discretion, it is because Congress and the President passed legislation to give them that discretion. The very name--"agency"--nods to "principal-agent theory," which involves delegation from a principal (the one ultimately in charge) to an agent (the one who is given responsibility for acting on behalf of the principal).

Still, a lot of people worry about this discretion. In any principal-agent relationship, the principal worries about "agency slack," which is just a fancy term for the agent going rogue. Principals wouldn't get much mileage from delegating to agencies if they had to confirm every detail of what agencies are doing, but too much of a hands-off approach to monitoring the agent allows the agent to take advantage of their discretion to pursue the agent's goals rather than the principal's. Ultimately, what the principal wants is to retain enough control to ensure that the agency is not systematically exploiting agency slack, but not so much that it obliterates the benefits of delegating discretion to the agent in the first place. In short, the principal wants "optimal political control of the bureaucracy." See Matthew C. Stephenson, Optimal Political Control of the Bureaucracy, 107 Mich. L. Rev. 53 (2008).

In some sense, everything in administrative law is part of this effort to optimally control the discretion of agencies. Procedures are a form of political control--they make certain outcomes more likely and some less likely, and they "stack the deck" in favor of constituencies that Congress means to benefit. See Mathew D. McCubbins, Roger G. Noll, & Barry R. Weingast, Structure and Process, Politics and Policy: Administrative Arrangements and the Political Control of Agencies, 75 Va. L. Rev. 431 (1989). Administrative procedures are a textbook example of ex ante political controls--ex ante because they operate even before agencies act.

This subsection focuses on another form of political control: ex post political control, meaning control after the agency has acted. It focuses on the ex post controls that Congress has used to monitor and reverse agency decisions, and also on the ex post political controls that the President, acting through the Office of Management and Budget's subagency, the Office of Information and Regulatory Affairs (OIRA), has deployed to review proposed agency regulations. Judicial review of agency action and inaction (covered in Section 4 of this casebook) for compliance with the law is also an ex post method of political control.

As you read the materials in this section, ask yourself whether you think that these controls seem to contribute to an "optimal" amount of control of administrative discretion, or whether they in fact seem to be miscalibrated: either the controls are not enough to rein in agency discretion or are gross overkill. Relatedly, notice that the perspectives of Congress and the President on whether agencies need to be corrected may not be aligned. Do the controls you are reviewing seem to respond to those concerns about multiple and competing principals? Does one principal seem more dominant than the other? Are agencies able to play principals off against each other to avoid any real oversight?

Ultimately, this subsection raises a perennial question in administrative law about where, exactly, agencies fall in the "organizational chart" of government--that is, who agencies ultimately need to answer to. The formal answer to the question is that agencies are part of the Executive Branch, even when they exercise powers that appear to be legislative and adjudicative as well. See City of Arlington v. FCC, 133 S. Ct. 1873 n.4 (2013). Yet, in practice, lots of putative principals across the three branches of government compete for control of the bureaucracy, with varying degrees of success. According to some, this makes the administrative state more like a "headless fourth branch" of government than anything else. See Jennifer L. Selin, The Headless Fourth Branch: Rethinking the Assumptions of Administrative Jurisprudence, 4 Persp. on Pub. Mgmt. & Governance 170 (2021). Are they right?

2.4.1 Congressional Controls 2.4.1 Congressional Controls

We start with Congress's ex post review of agency action. The first case, INS v. Chadha, deals with Congress's ability to use a so-called "legislative veto" to reverse agency decisions. The next reading focuses on the modern replacement for legislative vetoes--the Congressional Review Act. Next, we will look at proposed legislation (definitely not the law...yet!) that would go even further in this same direction.

Finally, we end the discussion of Congress's control of agencies with the most recent case involving perhaps Congress's most important form of ex post control: oversight, investigations, and hearings. If you've ever watched C-SPAN (who among us has not?), you've probably seen one of these hearings. Although empirical research suggests that congressional oversight of this kind can be surprisingly effective, see Brian D. Feinstein, Congress and the Administrative State, 95 Wash. U. L. Rev. 1189 (2018), sometimes Congrees's powers in this regard hit strong headwinds, particularly in times of deeply divided government (i.e., where one party controls one or both chambers of Congress and the other controls the Executive Branch. In Trump v. Mazars, the Supreme Court answered some questions about Congress's ability to back its oversight activities with the force of law through subpoenas. Although the specific subpoenas at issue in Mazars involved the personal papers of the President and therefore present a slightly different issue than a congressional subpoena involving oversight of the daily workings of the administrative state, the opinion drops numerous breadcrumbs that suggest how the Court might deal with disputes over the congressional oversight power of the administrative state.

2.4.1.1 Immigration & Naturalization Service v. Chadha 2.4.1.1 Immigration & Naturalization Service v. Chadha

462 U.S. 919 (1983)

IMMIGRATION AND NATURALIZATION SERVICE
v.
CHADHA ET AL.

No. 80-1832.

Supreme Court of United States.

Argued February 22, 1982.
Reargued December 7, 1982.
Decided June 23, 1983[1]

APPEAL FROM THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

[922] Eugene Gressman reargued the cause for petitioner in No. 80-2170. With him on the briefs was Stanley M. Brand.

Michael Davidson reargued the cause for petitioner in No. 80-2171. With him on the briefs were M. Elizabeth Culbreth and Charles Tiefer.

Solicitor General Lee reargued the cause for the Immigration and Naturalization Service in all cases. With him on the briefs were Assistant Attorney General Olson, Deputy Solicitor General Geller, Deputy Assistant Attorney General Simms, Edwin S. Kneedler, David A. Strauss, and Thomas O. Sargentich.

Alan B. Morrison reargued the cause for Jagdish Rai Chadha in all cases. With him on the brief was John Cary Sims.[2]

Briefs of amici curiae were filed by Robert C. Eckhardt for Certain Members of the United States House of Representatives; and by Paul C. Rosenthal for the Counsel on Administrative Law of the Federal Bar Association.

[923] CHIEF JUSTICE BURGER delivered the opinion of the Court.

We granted certiorari in Nos. 80-2170 and 80-2171, and postponed consideration of the question of jurisdiction in No. 80-1832. Each presents a challenge to the constitutionality of the provision in § 244(c)(2) of the Immigration and Nationality Act, 66 Stat. 216, as amended, 8 U. S. C. § 1254(c)(2), authorizing one House of Congress, by resolution, to invalidate the decision of the Executive Branch, pursuant to authority delegated by Congress to the Attorney General of the United States, to allow a particular deportable alien to remain in the United States.

I

Chadha is an East Indian who was born in Kenya and holds a British passport. He was lawfully admitted to the United States in 1966 on a nonimmigrant student visa. His visa expired on June 30, 1972. On October 11, 1973, the District Director of the Immigration and Naturalization Service ordered Chadha to show cause why he should not be deported for having "remained in the United States for a longer time than permitted." App. 6. Pursuant to § 242(b) of the Immigration and Nationality Act (Act), 8 U. S. C. § 1252(b), a deportation hearing was held before an Immigration Judge on January 11, 1974. Chadha conceded that he was deportable for overstaying his visa and the hearing was adjourned to enable him to file an application for suspension of deportation under § 244(a)(1) of the Act, 8 U. S. C. § 1254(a)(1). Section 244(a)(1), at the time in question, provided:

"As hereinafter prescribed in this section, the Attorney General may, in his discretion, suspend deportation and adjust the status to that of an alien lawfully admitted for permanent residence, in the case of an alien who applies to the Attorney General for suspension of deportation and —

"(1) is deportable under any law of the United States except the provisions specified in paragraph (2) of this subsection; has been physically present in the United [924] States for a continuous period of not less than seven years immediately preceding the date of such application, and proves that during all of such period he was and is a person of good moral character; and is a person whose deportation would, in the opinion of the Attorney General, result in extreme hardship to the alien or to his spouse, parent, or child, who is a citizen of the United States or an alien lawfully admitted for permanent residence."[3]

After Chadha submitted his application for suspension of deportation, the deportation hearing was resumed on February 7, 1974. On the basis of evidence adduced at the hearing, affidavits submitted with the application, and the results of a character investigation conducted by the INS, the Immigration Judge, on June 25, 1974, ordered that Chadha's deportation be suspended. The Immigration Judge found that Chadha met the requirements of § 244(a)(1): he had resided continuously in the United States for over seven years, was of good moral character, and would suffer "extreme hardship" if deported.

Pursuant to § 244(c)(1) of the Act, 8 U. S. C. § 1254(c)(1), the Immigration Judge suspended Chadha's deportation and a report of the suspension was transmitted to Congress. Section 244(c)(1) provides:

"Upon application by any alien who is found by the Attorney General to meet the requirements of subsection (a) of this section the Attorney General may in his discretion suspend deportation of such alien. If the deportation of any alien is suspended under the provisions of this subsection, a complete and detailed statement of the [925] facts and pertinent provisions of law in the case shall be reported to the Congress with the reasons for such suspension. Such reports shall be submitted on the first day of each calendar month in which Congress is in session."

Once the Attorney General's recommendation for suspension of Chadha's deportation was conveyed to Congress, Congress had the power under § 244(c)(2) of the Act, 8 U. S. C. § 1254(c)(2), to veto[4] the Attorney General's determination that Chadha should not be deported. Section 244(c)(2) provides:

"(2) In the case of an alien specified in paragraph (1) of subsection (a) of this subsection —

"if during the session of the Congress at which a case is reported, or prior to the close of the session of the Congress next following the session at which a case is reported, either the Senate or the House of Representatives passes a resolution stating in substance that it does not favor the suspension of such deportation, the Attorney General shall thereupon deport such alien or authorize the alien's voluntary departure at his own expense under the order of deportation in the manner provided by law. If, within the time above specified, neither the Senate nor the House of Representatives shall pass such a resolution, the Attorney General shall cancel deportation proceedings."

[926] The June 25, 1974, order of the Immigration Judge suspending Chadha's deportation remained outstanding as a valid order for a year and a half. For reasons not disclosed by the record, Congress did not exercise the veto authority reserved to it under § 244(c)(2) until the first session of the 94th Congress. This was the final session in which Congress, pursuant to § 244(c)(2), could act to veto the Attorney General's determination that Chadha should not be deported. The session ended on December 19, 1975. 121 Cong. Rec. 42014, 42277 (1975). Absent congressional action, Chadha's deportation proceedings would have been canceled after this date and his status adjusted to that of a permanent resident alien. See 8 U. S. C. § 1254(d).

On December 12, 1975, Representative Eilberg, Chairman of the Judiciary Subcommittee on Immigration, Citizenship, and International Law, introduced a resolution opposing "the granting of permanent residence in the United States to [six] aliens," including Chadha. H. Res. 926, 94th Cong., 1st Sess.; 121 Cong Rec. 40247 (1975). The resolution was referred to the House Committee on the Judiciary. On December 16, 1975, the resolution was discharged from further consideration by the House Committee on the Judiciary and submitted to the House of Representatives for a vote. 121 Cong. Rec. 40800. The resolution had not been printed and was not made available to other Members of the House prior to or at the time it was voted on. Ibid. So far as the record before us shows, the House consideration of the resolution was based on Representative Eilberg's statement from the floor that

"[i]t was the feeling of the committee, after reviewing 340 cases, that the aliens contained in the resolution [Chadha and five others] did not meet these statutory requirements, particularly as it relates to hardship; and it is the opinion of the committee that their deportation should not be suspended." Ibid.

[927] The resolution was passed without debate or recorded vote.[5] Since the House action was pursuant to § 244(c)(2), the resolution was not treated as an Art. I legislative act; it was not [928] submitted to the Senate or presented to the President for his action.

After the House veto of the Attorney General's decision to allow Chadha to remain in the United States, the Immigration Judge reopened the deportation proceedings to implement the House order deporting Chadha. Chadha moved to terminate the proceedings on the ground that § 244(c)(2) is unconstitutional. The Immigration Judge held that he had no authority to rule on the constitutional validity of § 244(c)(2). On November 8, 1976, Chadha was ordered deported pursuant to the House action.

Chadha appealed the deportation order to the Board of Immigration Appeals, again contending that § 244(c)(2) is unconstitutional. The Board held that it had "no power to declare unconstitutional an act of Congress" and Chadha's appeal was dismissed. App. 55-56.

Pursuant to § 106(a) of the Act, 8 U. S. C. § 1105a(a), Chadha filed a petition for review of the deportation order in the United States Court of Appeals for the Ninth Circuit. The Immigration and Naturalization Service agreed with Chadha's position before the Court of Appeals and joined him in arguing that § 244(c)(2) is unconstitutional. In light of the importance of the question, the Court of Appeals invited both the Senate and the House of Representatives to file briefs amici curiae.

After full briefing and oral argument, the Court of Appeals held that the House was without constitutional authority to order Chadha's deportation; accordingly it directed the Attorney General "to cease and desist from taking any steps to deport this alien based upon the resolution enacted by the House of Representatives." 634 F. 2d 408, 436 (1980). The essence of its holding was that § 244(c)(2) violates the constitutional doctrine of separation of powers.

We granted certiorari in Nos. 80-2170 and 80-2171, and postponed consideration of our jurisdiction over the appeal in No. 80-1832, 454 U. S. 812 (1981), and we now affirm.

[929] II

Before we address the important question of the constitutionality of the one-House veto provision of § 244(c)(2), we first consider several challenges to the authority of this Court to resolve the issue raised.

A

Appellate Jurisdiction

Both Houses of Congress[6] contend that we are without jurisdiction under 28 U. S. C. § 1252 to entertain the INS appeal in No. 80-1832. Section 1252 provides:

"Any party may appeal to the Supreme Court from an interlocutory or final judgment, decree or order of any court of the United States, the United States District Court for the District of the Canal Zone, the District Court of Guam and the District Court of the Virgin Islands and any court of record of Puerto Rico, holding an Act of Congress unconstitutional in any civil action, suit, or proceeding to which the United States or any of its agencies, or any officer or employee thereof, as such officer or employee, is a party."

Parker v. Levy, 417 U. S. 733, 742, n. 10 (1974), makes clear that a court of appeals is a "court of the United States" for purposes of § 1252. It is likewise clear that the proceeding below was a "civil action, suit, or proceeding," that the INS is an agency of the United States and was a party to the proceeding below, and that that proceeding held an Act of Congress — namely, the one-House veto provision in § 244(c)(2) — unconstitutional. The express requisites for an appeal under § 1252, therefore, have been met.

[930] In motions to dismiss the INS appeal, the congressional parties[7] direct attention, however, to our statement that "[a] party who receives all that he has sought generally is not aggrieved by the judgment affording the relief and cannot appeal from it." Deposit Guaranty National Bank v. Roper, 445 U. S. 326, 333 (1980). Here, the INS sought the invalidation of § 244(c)(2), and the Court of Appeals granted that relief. Both Houses contend that the INS has already received what it sought from the Court of Appeals, is not an aggrieved party, and therefore cannot appeal from the decision of the Court of Appeals. We cannot agree.

The INS was ordered by one House of Congress to deport Chadha. As we have set out more fully, supra, at 928, the INS concluded that it had no power to rule on the constitutionality of that order and accordingly proceeded to implement it. Chadha's appeal challenged that decision and the INS presented the Executive's views on the constitutionality of the House action to the Court of Appeals. But the INS brief to the Court of Appeals did not alter the agency's decision to comply with the House action ordering deportation of Chadha. The Court of Appeals set aside the deportation proceedings and ordered the Attorney General to cease and desist from taking any steps to deport Chadha; steps that the Attorney General would have taken were it not for that decision.

At least for purposes of deciding whether the INS is "any party" within the grant of appellate jurisdiction in § 1252, we hold that the INS was sufficiently aggrieved by the Court of Appeals decision prohibiting it from taking action it would otherwise take. It is apparent that Congress intended that [931] this Court take notice of cases that meet the technical prerequisites of § 1252; in other cases where an Act of Congress is held unconstitutional by a federal court, review in this Court is available only by writ of certiorari. When an agency of the United States is a party to a case in which the Act of Congress it administers is held unconstitutional, it is an aggrieved party for purposes of taking an appeal under § 1252. The agency's status as an aggrieved party under § 1252 is not altered by the fact that the Executive may agree with the holding that the statute in question is unconstitutional. The appeal in No. 80-1832 is therefore properly before us.[8]

B

Severability

Congress also contends that the provision for the one-House veto in § 244(c)(2) cannot be severed from § 244. Congress argues that if the provision for the one-House veto is held unconstitutional, all of § 244 must fall. If § 244 in its entirety is violative of the Constitution, it follows that the Attorney General has no authority to suspend Chadha's deportation under § 244(a)(1) and Chadha would be deported. From this, Congress argues that Chadha lacks standing to challenge the constitutionality of the one-House veto provision because he could receive no relief even if his constitutional challenge proves successful.[9]

Only recently this Court reaffirmed that the invalid portions of a statute are to be severed " `[u]nless it is evident that [932] the Legislature would not have enacted those provisions which are within its power, independently of that which is not.' " Buckley v. Valeo, 424 U. S. 1, 108 (1976), quoting Champlin Refining Co. v. Corporation Comm'n of Oklahoma, 286 U. S. 210, 234 (1932). Here, however, we need not embark on that elusive inquiry since Congress itself has provided the answer to the question of severability in § 406 of the Immigration and Nationality Act, note following 8 U. S. C. § 1101, which provides:

"If any particular provision of this Act, or the application thereof to any person or circumstance, is held invalid, the remainder of the Act and the application of such provision to other persons or circumstances shall not be affected thereby." (Emphasis added.)

This language is unambiguous and gives rise to a presumption that Congress did not intend the validity of the Act as a whole, or of any part of the Act, to depend upon whether the veto clause of § 244(c)(2) was invalid. The one-House veto provision in § 244(c)(2) is clearly a "particular provision" of the Act as that language is used in the severability clause. Congress clearly intended "the remainder of the Act" to stand if "any particular provision" were held invalid. Congress could not have more plainly authorized the presumption that the provision for a one-House veto in § 244(c)(2) is severable from the remainder of § 244 and the Act of which it is a part. See Electric Bond & Share Co. v. SEC, 303 U. S. 419, 434 (1938).

The presumption as to the severability of the one-House veto provision in § 244(c)(2) is supported by the legislative history of § 244. That section and its precursors supplanted the long-established pattern of dealing with deportations like Chadha's on a case-by-case basis through private bills. Although it may be that Congress was reluctant to delegate final authority over cancellation of deportations, such reluctance is not sufficient to overcome the presumption of severability raised by § 406.

[933] The Immigration Act of 1924, ch. 190, § 14, 43 Stat. 162, required the Secretary of Labor to deport any alien who entered or remained in the United States unlawfully. The only means by which a deportable alien could lawfully remain in the United States was to have his status altered by a private bill enacted by both Houses and presented to the President pursuant to the procedures set out in Art. I, § 7, of the Constitution. These private bills were found intolerable by Congress. In the debate on a 1937 bill introduced by Representative Dies to authorize the Secretary to grant permanent residence in "meritorious" cases, Dies stated:

"It was my original thought that the way to handle all these meritorious cases was through special bills. I am absolutely convinced as a result of what has occurred in this House that it is impossible to deal with this situation through special bills. We had a demonstration of that fact not long ago when 15 special bills were before this House. The House consumed 5 1/2 hours considering four bills and made no disposition of any of the bills." 81 Cong. Rec. 5542 (1937).

Representative Dies' bill passed the House, id., at 5574, but did not come to a vote in the Senate. 83 Cong. Rec. 8992-8996 (1938).

Congress first authorized the Attorney General to suspend the deportation of certain aliens in the Alien Registration Act of 1940, ch. 439, § 20, 54 Stat. 671. That Act provided that an alien was to be deported, despite the Attorney General's decision to the contrary, if both Houses, by concurrent resolution, disapproved the suspension.

In 1948, Congress amended the Act to broaden the category of aliens eligible for suspension of deportation. In addition, however, Congress limited the authority of the Attorney General to suspend deportations by providing that the Attorney General could not cancel a deportation unless both Houses affirmatively voted by concurrent resolution to approve the Attorney General's action. Act of July 1, 1948, [934] ch. 783, 62 Stat. 1206. The provision for approval by concurrent resolution in the 1948 Act proved almost as burdensome as private bills. Just one year later, the House Judiciary Committee, in support of the predecessor to § 244(c)(2), stated in a Report:

"In the light of experience of the last several months, the committee came to the conclusion that the requirement of affirmative action by both Houses of the Congress in many thousands of individual cases which are submitted by the Attorney General every year, is not workable and places upon the Congress and particularly on the Committee on the Judiciary responsibilities which it cannot assume. The new responsibilities placed upon the Committee on the Judiciary [by the concurrent resolution mechanism] are of purely administrative nature and they seriously interfere with the legislative work of the Committee on the Judiciary and would, in time, interfere with the legislative work of the House." H. R. Rep. No. 362, 81st Cong., 1st Sess., 2 (1949).

The proposal to permit one House of Congress to veto the Attorney General's suspension of an alien's deportation was incorporated in the Immigration and Nationality Act of 1952, Pub. L. 414, § 244(a), 66 Stat. 214. Plainly, Congress' desire to retain a veto in this area cannot be considered in isolation but must be viewed in the context of Congress' irritation with the burden of private immigration bills. This legislative history is not sufficient to rebut the presumption of severability raised by § 406 because there is insufficient evidence that Congress would have continued to subject itself to the onerous burdens of private bills had it known that § 244(c)(2) would be held unconstitutional.

A provision is further presumed severable if what remains after severance "is fully operative as a law." Champlin Refining Co. v. Corporation Comm'n, supra, at 234. There can be no doubt that § 244 is "fully operative" and workable administrative machinery without the veto provision in § 244(c)(2). Entirely independent of the one-House veto, the [935] administrative process enacted by Congress authorizes the Attorney General to suspend an alien's deportation under § 244(a). Congress' oversight of the exercise of this delegated authority is preserved since all such suspensions will continue to be reported to it under § 244(c)(1). Absent the passage of a bill to the contrary,[10] deportation proceedings will be canceled when the period specified in § 244(c)(2) has expired.[11] Clearly, § 244 survives as a workable administrative mechanism without the one-House veto.

C

Standing

We must also reject the contention that Chadha lacks standing because a consequence of his prevailing will advance [936] the interests of the Executive Branch in a separation-of-powers dispute with Congress, rather than simply Chadha's private interests. Chadha has demonstrated "injury in fact and a substantial likelihood that the judicial relief requested will prevent or redress the claimed injury . . . ." Duke Power Co. v. Carolina Environmental Study Group, Inc., 438 U. S. 59, 79 (1978). If the veto provision violates the Constitution, and is severable, the deportation order against Chadha will be canceled. Chadha therefore has standing to challenge the order of the Executive mandated by the House veto.

D

Alternative Relief

It is contended that the Court should decline to decide the constitutional question presented by these cases because Chadha may have other statutory relief available to him. It is argued that since Chadha married a United States citizen on August 10, 1980, it is possible that other avenues of relief may be open under §§ 201(b), 204, and 245 of the Act, 8 U. S. C. §§ 1151(b), 1154, and 1255. It is true that Chadha may be eligible for classification as an "immediate relative" and, as such, could lawfully be accorded permanent residence. Moreover, in March 1980, just prior to the decision of the Court of Appeals in these cases, Congress enacted the Refugee Act of 1980, Pub. L. 96-212, 94 Stat. 102, under which the Attorney General is authorized to grant asylum, and then permanent residence, to any alien who is unable to return to his country of nationality because of "a wellfounded fear of persecution on account of race."

It is urged that these two intervening factors constitute a prudential bar to our consideration of the constitutional question presented in these cases. See Ashwander v. TVA, 297 U. S. 288, 346 (1936) (Brandeis, J., concurring). If we could perceive merit in this contention we might well seek to avoid deciding the constitutional claim advanced. But at most [937] these other avenues of relief are speculative. It is by no means certain, for example, that Chadha's classification as an immediate relative would result in the adjustment of Chadha's status from nonimmigrant to permanent resident. See Menezes v. INS, 601 F. 2d 1028 (CA9 1979). If Chadha is successful in his present challenge he will not be deported and will automatically become eligible to apply for citizenship.[12] A person threatened with deportation cannot be denied the right to challenge the constitutional validity of the process which led to his status merely on the basis of speculation over the availability of other forms of relief.

E

Jurisdiction

It is contended that the Court of Appeals lacked jurisdiction under § 106(a) of the Act, 8 U. S. C. § 1105a(a). That section provides that a petition for review in the Court of Appeals "shall be the sole and exclusive procedure for the judicial review of all final orders of deportation . . . made against aliens within the United States pursuant to administrative proceedings under section 242(b) of this Act." Congress argues that the one-House veto authorized by § 244(c)(2) takes place outside the administrative proceedings conducted under § 242(b), and that the jurisdictional grant contained in § 106(a) does not encompass Chadha's constitutional challenge.

In Cheng Fan Kwok v. INS, 392 U. S. 206, 216 (1968), this Court held that "§ 106(a) embrace[s] only those determinations [938] made during a proceeding conducted under § 242(b), including those determinations made incident to a motion to reopen such proceedings." It is true that one court has read Cheng Fan Kwok to preclude appeals similar to Chadha's. See Dastmalchi v. INS, 660 F. 2d 880 (CA3 1981).[13] However, we agree with the Court of Appeals in these cases that the term "final orders" in § 106(a) "includes all matters on which the validity of the final order is contingent, rather than only those determinations actually made at the hearing." 634 F. 2d, at 412. Here, Chadha's deportation stands or falls on the validity of the challenged veto; the final order of deportation was entered against Chadha only to implement the action of the House of Representatives. Although the Attorney General was satisfied that the House action was invalid and that it should not have any effect on his decision to suspend deportation, he appropriately let the controversy take its course through the courts.

This Court's decision in Cheng Fan Kwok, supra, does not bar Chadha's appeal. There, after an order of deportation had been entered, the affected alien requested the INS to stay the execution of that order. When that request was denied, the alien sought review in the Court of Appeals under § 106(a). This Court's holding that the Court of Appeals lacked jurisdiction was based on the fact that the alien "did not `attack the deportation order itself but instead [sought] relief not inconsistent with it.' " 392 U. S., at 213, quoting [939] Mui v. Esperdy, 371 F. 2d 772, 777 (CA2 1966). Here, in contrast, Chadha directly attacks the deportation order itself, and the relief he seeks — cancellation of deportation — is plainly inconsistent with the deportation order. Accordingly, the Court of Appeals had jurisdiction under § 106(a) to decide these cases.

F

Case or Controversy

It is also contended that this is not a genuine controversy but "a friendly, non-adversary, proceeding," Ashwander v. TVA, 297 U. S., at 346 (Brandeis, J., concurring), upon which the Court should not pass. This argument rests on the fact that Chadha and the INS take the same position on the constitutionality of the one-House veto. But it would be a curious result if, in the administration of justice, a person could be denied access to the courts because the Attorney General of the United States agreed with the legal arguments asserted by the individual.

A case or controversy is presented by these cases. First, from the time of Congress' formal intervention, see n. 5, supra, the concrete adverseness is beyond doubt. Congress is both a proper party to defend the constitutionality of § 244(c)(2) and a proper petitioner under 28 U. S. C. § 1254(1). Second, prior to Congress' intervention, there was adequate Art. III adverseness even though the only parties were the INS and Chadha. We have already held that the INS's agreement with the Court of Appeals' decision that § 244(c)(2) is unconstitutional does not affect that agency's "aggrieved" status for purposes of appealing that decision under 28 U. S. C. § 1252, see supra, at 929-931. For similar reasons, the INS's agreement with Chadha's position does not alter the fact that the INS would have deported Chadha absent the Court of Appeals' judgment. We agree with the Court of Appeals that "Chadha has asserted a concrete controversy, and our decision will have real meaning: if we rule for Chadha, he will not be deported; if we uphold § 244(c)(2), [940] the INS will execute its order and deport him." 634 F. 2d, at 419.[14]

Of course, there may be prudential, as opposed to Art. III, concerns about sanctioning the adjudication of these cases in the absence of any participant supporting the validity of § 244(c)(2). The Court of Appeals properly dispelled any such concerns by inviting and accepting briefs from both Houses of Congress. We have long held that Congress is the proper party to defend the validity of a statute when an agency of government, as a defendant charged with enforcing the statute, agrees with plaintiffs that the statute is inapplicable or unconstitutional. See Cheng Fan Kwok v. INS, 392 U. S., at 210, n. 9; United States v. Lovett, 328 U. S. 303 (1946).

G

Political Question

It is also argued that these cases present a nonjusticiable political question because Chadha is merely challenging Congress' authority under the Naturalization Clause, U. S. Const., Art. I, § 8, cl. 4, and the Necessary and Proper Clause, U. S. Const., Art. I, § 8, cl. 18. It is argued that Congress' Art. I power "To establish an uniform Rule of Naturalization," combined with the Necessary and Proper Clause, grants it unreviewable authority over the regulation of aliens. The plenary authority of Congress over aliens under Art. I, § 8, cl. 4, is not open to question, but what is [941] challenged here is whether Congress has chosen a constitutionally permissible means of implementing that power. As we made clear in Buckley v. Valeo, 424 U. S. 1 (1976): "Congress has plenary authority in all cases in which it has substantive legislative jurisdiction, McCulloch v. Maryland, 4 Wheat. 316 (1819), so long as the exercise of that authority does not offend some other constitutional restriction." Id., at 132.

A brief review of those factors which may indicate the presence of a nonjusticiable political question satisfies us that our assertion of jurisdiction over these cases does no violence to the political question doctrine. As identified in Baker v. Carr, 369 U. S. 186, 217 (1962), a political question may arise when any one of the following circumstances is present:

"a textually demonstrable constitutional commitment of the issue to a coordinate political department; or a lack of judicially discoverable and manageable standards for resolving it; or the impossibility of deciding without an initial policy determination of a kind clearly for nonjudicial discretion; or the impossibility of a court's undertaking independent resolution without expressing lack of the respect due coordinate branches of government; or an unusual need for unquestioning adherence to a political decision already made; or the potentiality of embarrassment from multifarious pronouncements by various departments on one question."

Congress apparently directs its assertion of nonjusticiability to the first of the Baker factors by asserting that Chadha's claim is "an assault on the legislative authority to enact Section 244(c)(2)." Brief for Petitioner in No. 80-2170, p. 48. But if this turns the question into a political question virtually every challenge to the constitutionality of a statute would be a political question. Chadha indeed argues that one House of Congress cannot constitutionally veto the Attorney General's decision to allow him to remain in this country. No policy underlying the political question doctrine [942] suggests that Congress or the Executive, or both acting in concert and in compliance with Art. I, can decide the constitutionality of a statute; that is a decision for the courts.[15]

Other Baker factors are likewise inapplicable to this case. As we discuss more fully below, Art. I provides the "judicially discoverable and manageable standards" of Baker for resolving the question presented by these cases. Those standards forestall reliance by this Court on nonjudicial "policy determinations" or any showing of disrespect for a coordinate branch. Similarly, if Chadha's arguments are accepted, § 244(c)(2) cannot stand, and, since the constitutionality of that statute is for this Court to resolve, there is no possibility of "multifarious pronouncements" on this question.

It is correct that this controversy may, in a sense, be termed "political." But the presence of constitutional issues with significant political overtones does not automatically invoke [943] the political question doctrine. Resolution of litigation challenging the constitutional authority of one of the three branches cannot be evaded by courts because the issues have political implications in the sense urged by Congress. Marbury v. Madison, 1 Cranch 137 (1803), was also a "political" case, involving as it did claims under a judicial commission alleged to have been duly signed by the President but not delivered. But "courts cannot reject as `no law suit' a bona fide controversy as to whether some action denominated `political' exceeds constitutional authority." Baker v. Carr, supra, at 217.

In Field v. Clark, 143 U. S. 649 (1892), this Court addressed and resolved the question whether

"a bill signed by the Speaker of the House of Representatives and by the President of the Senate, presented to and approved by the President of the United States, and delivered by the latter to the Secretary of State, as an act passed by Congress, does not become a law of the United States if it had not in fact been passed by Congress. . . .

". . . We recognize, on one hand, the duty of this court, from the performance of which it may not shrink, to give full effect to the provisions of the Constitution relating to the enactment of laws that are to operate wherever the authority and jurisdiction of the United States extend. On the other hand, we cannot be unmindful of the consequences that must result if this court should feel obliged, in fidelity to the Constitution, to declare that an enrolled bill, on which depend public and private interests of vast magnitude, and which has been . . . deposited in the public archives, as an act of Congress, . . . did not become a law." Id., at 669-670 (emphasis in original).

H

The contentions on standing and justiciability have been fully examined, and we are satisfied the parties are properly before us. The important issues have been fully briefed and [944] twice argued, see 458 U. S. 1120 (1982). The Court's duty in these cases, as Chief Justice Marshall declared in Cohens v. Virginia, 6 Wheat. 264, 404 (1821), is clear:

"Questions may occur which we would gladly avoid; but we cannot avoid them. All we can do is, to exercise our best judgment, and conscientiously to perform our duty."

III

A

We turn now to the question whether action of one House of Congress under § 244(c)(2) violates strictures of the Constitution. We begin, of course, with the presumption that the challenged statute is valid. Its wisdom is not the concern of the courts; if a challenged action does not violate the Constitution, it must be sustained:

"Once the meaning of an enactment is discerned and its constitutionality determined, the judicial process comes to an end. We do not sit as a committee of review, nor are we vested with the power of veto." TVA v. Hill, 437 U. S. 153, 194-195 (1978).

By the same token, the fact that a given law or procedure is efficient, convenient, and useful in facilitating functions of government, standing alone, will not save it if it is contrary to the Constitution. Convenience and efficiency are not the primary objectives — or the hallmarks — of democratic government and our inquiry is sharpened rather than blunted by the fact that congressional veto provisions are appearing with increasing frequency in statutes which delegate authority to executive and independent agencies:

"Since 1932, when the first veto provision was enacted into law, 295 congressional veto-type procedures have been inserted in 196 different statutes as follows: from 1932 to 1939, five statutes were affected; from 1940-49, nineteen statutes; between 1950-59, thirty-four statutes; and from 1960-69, forty-nine. From the year 1970 through 1975, at least one hundred sixty-three such provisions [945] were included in eighty-nine laws." Abourezk, The Congressional Veto: A Contemporary Response to Executive Encroachment on Legislative Prerogatives, 52 Ind. L. Rev. 323, 324 (1977).

See also Appendix to JUSTICE WHITE's dissent, post, at 1003.

JUSTICE WHITE undertakes to make a case for the proposition that the one-House veto is a useful "political invention," post, at 972, and we need not challenge that assertion. We can even concede this utilitarian argument although the longrange political wisdom of this "invention" is arguable. It has been vigorously debated, and it is instructive to compare the views of the protagonists. See, e. g., Javits & Klein, Congressional Oversight and the Legislative Veto: A Constitutional Analysis, 52 N. Y. U. L. Rev. 455 (1977), and Martin, The Legislative Veto and the Responsible Exercise of Congressional Power, 68 Va. L. Rev. 253 (1982). But policy arguments supporting even useful "political inventions" are subject to the demands of the Constitution which defines powers and, with respect to this subject, sets out just how those powers are to be exercised.

Explicit and unambiguous provisions of the Constitution prescribe and define the respective functions of the Congress and of the Executive in the legislative process. Since the precise terms of those familiar provisions are critical to the resolution of these cases, we set them out verbatim. Article I provides:

"All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives." Art. I, § 1. (Emphasis added.)

"Every Bill which shall have passed the House of Representatives and the Senate, shall, before it becomes a law, be presented to the President of the United States . . . ." Art. I, § 7, cl. 2. (Emphasis added.)

"Every Order, Resolution, or Vote to which the Concurrence of the Senate and House of Representatives may be necessary (except on a question of Adjournment) [946] shall be presented to the President of the United States; and before the Same shall take Effect, shall be approved by him, or being disapproved by him, shall be repassed by two thirds of the Senate and House of Representatives, according to the Rules and Limitations prescribed in the Case of a Bill." Art. I, § 7, cl. 3. (Emphasis added.)

These provisions of Art. I are integral parts of the constitutional design for the separation of powers. We have recently noted that "[t]he principle of separation of powers was not simply an abstract generalization in the minds of the Framers: it was woven into the document that they drafted in Philadelphia in the summer of 1787." Buckley v. Valeo, 424 U. S., at 124. Just as we relied on the textual provision of Art. II, § 2, cl. 2, to vindicate the principle of separation of powers in Buckley, we see that the purposes underlying the Presentment Clauses, Art. I, § 7, cls. 2, 3, and the bicameral requirement of Art. I, § 1, and § 7, cl. 2, guide our resolution of the important question presented in these cases. The very structure of the Articles delegating and separating powers under Arts. I, II, and III exemplifies the concept of separation of powers, and we now turn to Art. I.

B

The Presentment Clauses

The records of the Constitutional Convention reveal that the requirement that all legislation be presented to the President before becoming law was uniformly accepted by the Framers.[16] Presentment to the President and the Presidential [947] veto were considered so imperative that the draftsmen took special pains to assure that these requirements could not be circumvented. During the final debate on Art. I, § 7, cl. 2, James Madison expressed concern that it might easily be evaded by the simple expedient of calling a proposed law a "resolution" or "vote" rather than a "bill." 2 Farrand 301-302. As a consequence, Art. I, § 7, cl. 3, supra, at 945-946, was added. 2 Farrand 304-305.

The decision to provide the President with a limited and qualified power to nullify proposed legislation by veto was based on the profound conviction of the Framers that the powers conferred on Congress were the powers to be most carefully circumscribed. It is beyond doubt that lawmaking was a power to be shared by both Houses and the President. In The Federalist No. 73 (H. Lodge ed. 1888), Hamilton focused on the President's role in making laws:

"If even no propensity had ever discovered itself in the legislative body to invade the rights of the Executive, the rules of just reasoning and theoretic propriety would of themselves teach us that the one ought not to be left to the mercy of the other, but ought to possess a constitutional and effectual power of self-defence." Id., at 458.

See also The Federalist No. 51. In his Commentaries on the Constitution, Joseph Story makes the same point. 1 J. Story, Commentaries on the Constitution of the United States 614-615 (3d ed. 1858).

The President's role in the lawmaking process also reflects the Framers' careful efforts to check whatever propensity a particular Congress might have to enact oppressive, improvident, [948] or ill-considered measures. The President's veto role in the legislative process was described later during public debate on ratification:

"It establishes a salutary check upon the legislative body, calculated to guard the community against the effects of faction, precipitancy, or of any impulse unfriendly to the public good, which may happen to influence a majority of that body.

". . . The primary inducement to conferring the power in question upon the Executive is, to enable him to defend himself; the secondary one is to increase the chances in favor of the community against the passing of bad laws, through haste, inadvertence, or design." The Federalist No. 73, supra, at 458 (A. Hamilton).

See also The Pocket Veto Case, 279 U. S. 655, 678 (1929); Myers v. United States, 272 U. S. 52, 123 (1926). The Court also has observed that the Presentment Clauses serve the important purpose of assuring that a "national" perspective is grafted on the legislative process:

"The President is a representative of the people just as the members of the Senate and of the House are, and it may be, at some times, on some subjects, that the President elected by all the people is rather more representative of them all than are the members of either body of the Legislature whose constituencies are local and not countrywide . . . ." Myers v. United States, supra, at 123.

C

Bicameralism

The bicameral requirement of Art. I, §§ 1, 7, was of scarcely less concern to the Framers than was the Presidential veto and indeed the two concepts are interdependent. By providing that no law could take effect without the concurrence of the prescribed majority of the Members of both Houses, the Framers reemphasized their belief, already remarked [949] upon in connection with the Presentment Clauses, that legislation should not be enacted unless it has been carefully and fully considered by the Nation's elected officials. In the Constitutional Convention debates on the need for a bicameral legislature, James Wilson, later to become a Justice of this Court, commented:

"Despotism comes on mankind in different shapes. sometimes in an Executive, sometimes in a military, one. Is there danger of a Legislative despotism? Theory & practice both proclaim it. If the Legislative authority be not restrained, there can be neither liberty nor stability; and it can only be restrained by dividing it within itself, into distinct and independent branches. In a single house there is no check, but the inadequate one, of the virtue & good sense of those who compose it." 1 Farrand 254.

Hamilton argued that a Congress comprised of a single House was antithetical to the very purposes of the Constitution. Were the Nation to adopt a Constitution providing for only one legislative organ, he warned:

"[W]e shall finally accumulate, in a single body, all the most important prerogatives of sovereignty, and thus entail upon our posterity one of the most execrable forms of government that human infatuation ever contrived. Thus we should create in reality that very tyranny which the adversaries of the new Constitution either are, or affect to be, solicitous to avert." The Federalist No. 22, p. 135 (H. Lodge ed. 1888).

This view was rooted in a general skepticism regarding the fallibility of human nature later commented on by Joseph Story:

"Public bodies, like private persons, are occasionally under the dominion of strong passions and excitements; impatient, irritable, and impetuous. . . . If [a legislature] [950] feels no check but its own will, it rarely has the firmness to insist upon holding a question long enough under its own view, to see and mark it in all its bearings and relations on society." 1 Story, supra, at 383-384.

These observations are consistent with what many of the Framers expressed, none more cogently than Madison in pointing up the need to divide and disperse power in order to protect liberty:

"In republican government, the legislative authority necessarily predominates. The remedy for this inconveniency is to divide the legislature into different branches; and to render them, by different modes of election and different principles of action, as little connected with each other as the nature of their common functions and their common dependence on the society will admit." The Federalist No. 51, p. 324 (H. Lodge ed. 1888) (sometimes attributed to "Hamilton or Madison" but now generally attributed to Madison).

See also The Federalist No. 62.

However familiar, it is useful to recall that apart from their fear that special interests could be favored at the expense of public needs, the Framers were also concerned, although not of one mind, over the apprehensions of the smaller states. Those states feared a commonality of interest among the larger states would work to their disadvantage; representatives of the larger states, on the other hand, were skeptical of a legislature that could pass laws favoring a minority of the people. See 1 Farrand 176-177, 484-491. It need hardly be repeated here that the Great Compromise, under which one House was viewed as representing the people and the other the states, allayed the fears of both the large and small states.[17]

[951] We see therefore that the Framers were acutely conscious that the bicameral requirement and the Presentment Clauses would serve essential constitutional functions. The President's participation in the legislative process was to protect the Executive Branch from Congress and to protect the whole people from improvident laws. The division of the Congress into two distinctive bodies assures that the legislative power would be exercised only after opportunity for full study and debate in separate settings. The President's unilateral veto power, in turn, was limited by the power of two-thirds of both Houses of Congress to overrule a veto thereby precluding final arbitrary action of one person. See id., at 99-104. It emerges clearly that the prescription for legislative action in Art. I, §§ 1, 7, represents the Framers' decision that the legislative power of the Federal Government be exercised in accord with a single, finely wrought and exhaustively considered, procedure.

IV

The Constitution sought to divide the delegated powers of the new Federal Government into three defined categories, Legislative, Executive, and Judicial, to assure, as nearly as possible, that each branch of government would confine itself to its assigned responsibility. The hydraulic pressure inherent within each of the separate Branches to exceed the outer limits of its power, even to accomplish desirable objectives, must be resisted.

Although not "hermetically" sealed from one another, Buckley v. Valeo, 424 U. S., at 121, the powers delegated to the three Branches are functionally identifiable. When any Branch acts, it is presumptively exercising the power the Constitution has delegated to it. See J. W. Hampton & Co. v. United States, 276 U. S. 394, 406 (1928). When the Executive acts, he presumptively acts in an executive or administrative capacity as defined in Art. II. And when, as here, [952] one House of Congress purports to act, it is presumptively acting within its assigned sphere.

Beginning with this presumption, we must nevertheless establish that the challenged action under § 244(c)(2) is of the kind to which the procedural requirements of Art. I, § 7, apply. Not every action taken by either House is subject to the bicameralism and presentment requirements of Art. I. See infra, at 955, and nn. 20, 21. Whether actions taken by either House are, in law and fact, an exercise of legislative power depends not on their form but upon "whether they contain matter which is properly to be regarded as legislative in its character and effect." S. Rep. No. 1335, 54th Cong., 2d Sess., 8 (1897).

Examination of the action taken here by one House pursuant to § 244(c)(2) reveals that it was essentially legislative in purpose and effect. In purporting to exercise power defined in Art. I, § 8, cl. 4, to "establish an uniform Rule of Naturalization," the House took action that had the purpose and effect of altering the legal rights, duties, and relations of persons, including the Attorney General, Executive Branch officials and Chadha, all outside the Legislative Branch. Section 244(c)(2) purports to authorize one House of Congress to require the Attorney General to deport an individual alien whose deportation otherwise would be canceled under § 244. The one-House veto operated in these cases to overrule the Attorney General and mandate Chadha's deportation; absent the House action, Chadha would remain in the United States. Congress has acted and its action has altered Chadha's status.

The legislative character of the one-House veto in these cases is confirmed by the character of the congressional action it supplants. Neither the House of Representatives nor the Senate contends that, absent the veto provision in § 244(c)(2), either of them, or both of them acting together, could effectively require the Attorney General to deport an alien once the Attorney General, in the exercise of legislatively [953] delegated authority,[18] had determined the alien should remain in the United States. Without the challenged provision in § 244(c)(2), this could have been achieved, if at all, only [954] by legislation requiring deportation.[19] Similarly, a veto by one House of Congress under § 244(c)(2) cannot be justified as an attempt at amending the standards set out in § 244(a)(1), or as a repeal of § 244 as applied to Chadha. Amendment and repeal of statutes, no less than enactment, must conform with Art. I.[20]

The nature of the decision implemented by the one-House veto in these cases further manifests its legislative character. After long experience with the clumsy, time-consuming private bill procedure, Congress made a deliberate choice to delegate to the Executive Branch, and specifically to the Attorney General, the authority to allow deportable aliens to remain in this country in certain specified circumstances. It is not disputed that this choice to delegate authority is precisely the kind of decision that can be implemented only in accordance with the procedures set out in Art. I. Disagreement with the Attorney General's decision on Chadha's deportation — that is, Congress' decision to deport Chadha — no less than Congress' original choice to delegate to the Attorney General the authority to make that decision, involves determinations of policy that Congress can implement in only one way; bicameral passage followed by presentment to the [955] President. Congress must abide by its delegation of authority until that delegation is legislatively altered or revoked.[21]

Finally, we see that when the Framers intended to authorize either House of Congress to act alone and outside of its prescribed bicameral legislative role, they narrowly and precisely defined the procedure for such action. There are four provisions in the Constitution,[22] explicit and unambiguous, by which one House may act alone with the unreviewable force of law, not subject to the President's veto:

(a) The House of Representatives alone was given the power to initiate impeachments. Art. I, § 2, cl. 5;

(b) The Senate alone was given the power to conduct trials following impeachment on charges initiated by the House and to convict following trial. Art. I, § 3, cl. 6;

(c) The Senate alone was given final unreviewable power to approve or to disapprove Presidential appointments. Art. II, § 2, cl. 2;

(d) The Senate alone was given unreviewable power to ratify treaties negotiated by the President. Art. II, § 2, cl. 2.

Clearly, when the Draftsmen sought to confer special powers on one House, independent of the other House, or of the President, they did so in explicit, unambiguous terms.[23] [956] These carefully defined exceptions from presentment and bicameralism underscore the difference between the legislative functions of Congress and other unilateral but important and binding one-House acts provided for in the Constitution. These exceptions are narrow, explicit, and separately justified; none of them authorize the action challenged here. On the contrary, they provide further support for the conclusion that congressional authority is not to be implied and for the conclusion that the veto provided for in § 244(c)(2) is not authorized by the constitutional design of the powers of the Legislative Branch.

Since it is clear that the action by the House under § 244(c)(2) was not within any of the express constitutional exceptions authorizing one House to act alone, and equally [957] clear that it was an exercise of legislative power, that action was subject to the standards prescribed in Art. I.[24] The bicameral requirement, the Presentment Clauses, the President's veto, and Congress' power to override a veto were intended to erect enduring checks on each Branch and to protect the people from the improvident exercise of power by mandating certain prescribed steps. To preserve those [958] checks, and maintain the separation of powers, the carefully defined limits on the power of each Branch must not be eroded. To accomplish what has been attempted by one House of Congress in this case requires action in conformity with the express procedures of the Constitution's prescription for legislative action: passage by a majority of both Houses and presentment to the President.[25]

The veto authorized by § 244(c)(2) doubtless has been in many respects a convenient shortcut; the "sharing" with the Executive by Congress of its authority over aliens in this manner is, on its face, an appealing compromise. In purely practical terms, it is obviously easier for action to be taken by one House without submission to the President; but it is crystal [959A] clear from the records of the Convention, contemporaneous writings and debates, that the Framers ranked other values higher than efficiency. The records of the Convention and debates in the states preceding ratification underscore the common desire to define and limit the exercise of the newly created federal powers affecting the states and the people. There is unmistakable expression of a determination that legislation by the national Congress be a step-by-step, deliberate and deliberative process.

The choices we discern as having been made in the Constitutional Convention impose burdens on governmental processes that often seem clumsy, inefficient, even unworkable, but those hard choices were consciously made by men who had lived under a form of government that permitted arbitrary governmental acts to go unchecked. There is no support in the Constitution or decisions of this Court for the proposition that the cumbersomeness and delays often encountered in complying with explicit constitutional standards may be avoided, either by the Congress or by the President. See Youngstown Sheet & Tube Co. v. Sawyer, 343 U. S. 579 (1952). With all the obvious flaws of delay, untidiness, and potential for abuse, we have not yet found a better way to preserve freedom than by making the exercise of power subject to the carefully crafted restraints spelled out in the Constitution.

V

We hold that the congressional veto provision in § 244(c)(2) is severable from the Act and that it is unconstitutional. Accordingly, the judgment of the Court of Appeals is

Affirmed.

[959B] JUSTICE POWELL, concurring in the judgment.

The Court's decision, based on the Presentment Clauses, Art. I, § 7, cls. 2 and 3, apparently will invalidate every use of the legislative veto. The breadth of this holding gives one pause. Congress has included the veto in literally hundreds [960] of statutes, dating back to the 1930's. Congress clearly views this procedure as essential to controlling the delegation of power to administrative agencies.[26] One reasonably may disagree with Congress' assessment of the veto's utility,[27] but the respect due its judgment as a coordinate branch of Government cautions that our holding should be no more extensive than necessary to decide these cases. In my view, the cases may be decided on a narrower ground. When Congress finds that a particular person does not satisfy the statutory criteria for permanent residence in this country it has assumed a judicial function in violation of the principle of separation of powers. Accordingly, I concur only in the judgment.

I

A

The Framers perceived that "[t]he 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." The Federalist No. 47, p. 324 (J. Cooke ed. 1961) (J. Madison). Theirs was not a baseless fear. Under British rule, the Colonies suffered the abuses of unchecked executive power that were attributed, at least popularly, to a hereditary monarchy. See Levi, Some Aspects of Separation of Powers, 76 Colum. L. Rev. 369, 374 (1976); The Federalist No. 48. During the Confederation, [961] the States reacted by removing power from the executive and placing it in the hands of elected legislators. But many legislators proved to be little better than the Crown. "The supremacy of legislatures came to be recognized as the supremacy of faction and the tyranny of shifting majorities. The legislatures confiscated property, erected paper money schemes, [and] suspended the ordinary means of collecting debts." Levi, supra, at 374-375.

One abuse that was prevalent during the Confederation was the exercise of judicial power by the state legislatures. The Framers were well acquainted with the danger of subjecting the determination of the rights of one person to the "tyranny of shifting majorities." Jefferson observed that members of the General Assembly in his native Virginia had not been prevented from assuming judicial power, and " `[t]hey have accordingly in many instances decided rights which should have been left to judiciary controversy.' "[28] The Federalist No. 48, supra, at 336 (emphasis in original) (quoting T. Jefferson, Notes on the State of Virginia 196 (London ed. 1787)). The same concern also was evident in the reports of the Council of the Censors, a body that was charged with determining whether the Pennsylvania Legislature had complied with the State Constitution. The Council found that during this period "[t]he constitutional trial by jury had been violated; and powers assumed, which had not been delegated by the Constitution. . . . [C]ases belonging [962] to the judiciary department, frequently [had been] drawn within legislative cognizance and determination." The Federalist No. 48, at 336-337.

It was to prevent the recurrence of such abuses that the Framers vested the executive, legislative, and judicial powers in separate branches. Their concern that a legislature should not be able unilaterally to impose a substantial deprivation on one person was expressed not only in this general allocation of power, but also in more specific provisions, such as the Bill of Attainder Clause, Art. I, § 9, cl. 3. As the Court recognized in United States v. Brown, 381 U. S. 437, 442 (1965), "the Bill of Attainder Clause was intended not as a narrow, technical . . . prohibition, but rather as an implementation of the separation of powers, a general safeguard against legislative exercise of the judicial function, or more simply — trial by legislature." This Clause, and the separation-of-powers doctrine generally, reflect the Framers' concern that trial by a legislature lacks the safeguards necessary to prevent the abuse of power.

B

The Constitution does not establish three branches with precisely defined boundaries. See Buckley v. Valeo, 424 U. S. 1, 121 (1976) (per curiam). Rather, as Justice Jackson wrote: "While the Constitution diffuses power the better to secure liberty, it also contemplates that practice will integrate the dispersed powers into a workable government. It enjoins upon its branches separateness but interdependence, autonomy but reciprocity." Youngstown Sheet & Tube Co. v. Sawyer, 343 U. S. 579, 635 (1952) (concurring in judgment). The Court thus has been mindful that the boundaries between each branch should be fixed "according to common sense and the inherent necessities of the governmental coordination." J. W. Hampton & Co. v. United States, 276 U. S. 394, 406 (1928). But where one branch has impaired or sought to assume a power central to another branch, the [963] Court has not hesitated to enforce the doctrine. See Buckley v. Valeo, supra, at 123.

Functionally, the doctrine may be violated in two ways. One branch may interfere impermissibly with the other's performance of its constitutionally assigned function. See Nixon v. Administrator of General Services, 433 U. S. 425, 433 (1977); United States v. Nixon, 418 U. S. 683 (1974). Alternatively, the doctrine may be violated when one branch assumes a function that more properly is entrusted to another. See Youngstown Sheet & Tube Co. v. Sawyer, supra, at 587; Springer v. Philippine Islands, 277 U. S. 189, 203 (1928). These cases present the latter situation.[29]

II

Before considering whether Congress impermissibly assumed a judicial function, it is helpful to recount briefly Congress' actions. Jagdish Rai Chadha, a citizen of Kenya, stayed in this country after his student visa expired. Although he was scheduled to be deported, he requested the Immigration and Naturalization Service to suspend his deportation because he met the statutory criteria for permanent residence in this country. After a hearing,[30] the Service granted Chadha's request and sent — as required by [964] the reservation of the veto right — a report of its action to Congress.

In addition to the report on Chadha, Congress had before it the names of 339 other persons whose deportations also had been suspended by the Service. The House Committee on the Judiciary decided that six of these persons, including Chadha, should not be allowed to remain in this country. Accordingly, it submitted a resolution to the House, which stated simply that "the House of Representatives does not approve the granting of permanent residence in the United States to the aliens hereinafter named." 121 Cong. Rec. 40800 (1975). The resolution was not distributed prior to the vote,[31] but the Chairman of the Judiciary Subcommittee on Immigration, Citizenship, and International Law explained to the House:

"It was the feeling of the committee, after reviewing 340 cases, that the aliens contained in the resolution did not meet [the] statutory requirements, particularly as it relates to hardship; and it is the opinion of the committee that their deportation should not be suspended." Ibid. (remarks of Rep. Eilberg).

Without further explanation and without a recorded vote, the House rejected the Service's determination that these six people met the statutory criteria.

On its face, the House's action appears clearly adjudicatory.[32] The House did not enact a general rule; rather it [965] made its own determination that six specific persons did not comply with certain statutory criteria. It thus undertook the type of decision that traditionally has been left to other branches. Even if the House did not make a de novo determination, but simply reviewed the Immigration and Naturalization Service's findings, it still assumed a function ordinarily entrusted to the federal courts.[33] See 5 U. S. C. § 704 (providing generally for judicial review of final agency action); cf. Foti v. INS, 375 U. S. 217 (1963) (holding that courts of appeals have jurisdiction to review INS decisions denying suspension of deportation). Where, as here, Congress has exercised a power "that cannot possibly be regarded as merely in aid of the legislative function of Congress," [966] Buckley v. Valeo, 424 U. S., at 138, the decisions of this Court have held that Congress impermissibly assumed a function that the Constitution entrusted to another branch, see id., at 138-141; cf. Springer v. Philippine Islands, 277 U. S., at 202.

The impropriety of the House's assumption of this function is confirmed by the fact that its action raises the very danger the Framers sought to avoid — the exercise of unchecked power. In deciding whether Chadha deserves to be deported, Congress is not subject to any internal constraints that prevent it from arbitrarily depriving him of the right to remain in this country.[34] Unlike the judiciary or an administrative agency, Congress is not bound by established substantive rules. Nor is it subject to the procedural safeguards, such as the right to counsel and a hearing before an impartial tribunal, that are present when a court or an agency[35] adjudicates individual rights. The only effective constraint on Congress' power is political, but Congress is most accountable politically when it prescribes rules of general applicability. When it decides rights of specific persons, those rights are subject to "the tyranny of a shifting majority."

[967A] Chief Justice Marshall observed: "It is the peculiar province of the legislature to prescribe general rules for the government of society; the application of those rules to individuals in society would seem to be the duty of other departments." Fletcher v. Peck, 6 Cranch 87, 136 (1810). In my view, when Congress undertook to apply its rules to Chadha, it exceeded the scope of its constitutionally prescribed authority. I would not reach the broader question whether legislative vetoes are invalid under the Presentment Clauses.

[967B] JUSTICE WHITE, dissenting.

Today the Court not only invalidates § 244(c)(2) of the Immigration and Nationality Act, but also sounds the death knell for nearly 200 other statutory provisions in which Congress has reserved a "legislative veto." For this reason, the Court's decision is of surpassing importance. And it is for this reason that the Court would have been well advised to decide the cases, if possible, on the narrower grounds of separation of powers, leaving for full consideration the constitutionality of other congressional review statutes operating on such varied matters as war powers and agency rulemaking, some of which concern the independent regulatory agencies.[36]

The prominence of the legislative veto mechanism in our contemporary political system and its importance to Congress can hardly be overstated. It has become a central [968] means by which Congress secures the accountability of executive and independent agencies. Without the legislative veto, Congress is faced with a Hobson's choice: either to refrain from delegating the necessary authority, leaving itself with a hopeless task of writing laws with the requisite specificity to cover endless special circumstances across the entire policy landscape, or in the alternative, to abdicate its law-making function to the Executive Branch and independent agencies. To choose the former leaves major national problems unresolved; to opt for the latter risks unaccountable policymaking by those not elected to fill that role. Accordingly, over the past five decades, the legislative veto has been placed in nearly 200 statutes.[37] The device is known in every field of governmental concern: reorganization, budgets, foreign affairs, war powers, and regulation of trade, safety, energy, the environment, and the economy.

I

The legislative veto developed initially in response to the problems of reorganizing the sprawling Government structure created in response to the Depression. The Reorganization Acts established the chief model for the legislative veto. When President Hoover requested authority to reorganize the Government in 1929, he coupled his request that the "Congress be willing to delegate its authority over the problem (subject to defined principles) to the Executive" with a proposal for legislative review. He proposed that the Executive "should act upon approval of a joint committee of Congress or with the reservation of power of revision by Congress within some limited period adequate for its consideration." Public Papers of the Presidents, Herbert Hoover, 1929, p. 432 (1974). Congress followed President Hoover's suggestion and authorized reorganization subject to legislative [969] review. Act of June 30, 1932, § 407, 47 Stat. 414. Although the reorganization authority reenacted in 1933 did not contain a legislative veto provision, the provision returned during the Roosevelt administration and has since been renewed numerous times. Over the years, the provision was used extensively. Presidents submitted 115 Reorganization Plans to Congress of which 23 were disapproved by Congress pursuant to legislative veto provisions. See App. A to Brief for United States Senate on Reargument.

Shortly after adoption of the Reorganization Act of 1939, 53 Stat. 561, Congress and the President applied the legislative veto procedure to resolve the delegation problem for national security and foreign affairs. World War II occasioned the need to transfer greater authority to the President in these areas. The legislative veto offered the means by which Congress could confer additional authority while preserving its own constitutional role. During World War II, Congress enacted over 30 statutes conferring powers on the Executive with legislative veto provisions.[38] President Roosevelt accepted the veto as the necessary price for obtaining exceptional authority.[39]

Over the quarter century following World War II, Presidents continued to accept legislative vetoes by one or both Houses as constitutional, while regularly denouncing provisions by which congressional Committees reviewed Executive activity.[40] The legislative veto balanced delegations of [970] statutory authority in new areas of governmental involvement: the space program, international agreements on nuclear energy, tariff arrangements, and adjustment of federal pay rates.[41]

During the 1970's the legislative veto was important in resolving a series of major constitutional disputes between the President and Congress over claims of the President to broad impoundment, war, and national emergency powers. The [971] key provision of the War Powers Resolution, 50 U. S. C. § 1544(c), authorizes the termination by concurrent resolution of the use of armed forces in hostilities. A similar measure resolved the problem posed by Presidential claims of inherent power to impound appropriations. Congressional Budget and Impoundment Control Act of 1974, 31 U. S. C. § 1403. In conference, a compromise was achieved under which permanent impoundments, termed "rescissions," would require approval through enactment of legislation. In contrast, temporary impoundments, or "deferrals," would become effective unless disapproved by one House. This compromise provided the President with flexibility, while preserving ultimate congressional control over the budget.[42] Although the War Powers Resolution was enacted over President Nixon's veto, the Impoundment Control Act was enacted with the President's approval. These statutes were followed by others resolving similar problems: the National Emergencies Act, § 202, 90 Stat. 1255, 50 U. S. C. § 1622, resolving the longstanding problems with unchecked Executive emergency power; the International Security Assistance and Arms Export Control Act, § 211, 90 Stat. 740, 22 U. S. C. § 2776(b), resolving the problem of foreign arms sales; and the Nuclear Non-Proliferation Act of 1978, §§ 303(a), 304(a), 306, 307, 401, 92 Stat. 130, 134, 137, 138, 144-145, 42 U. S. C. §§ 2160(f), 2155(b), 2157(b), 2158, 2153(d) (1976 ed., Supp. V), resolving the problem of exports of nuclear technology.

In the energy field, the legislative veto served to balance broad delegations in legislation emerging from the energy crisis of the 1970's.[43] In the educational field, it was found [972] that fragmented and narrow grant programs "inevitably lead to Executive-Legislative confrontations" because they inaptly limited the Commissioner of Education's authority. S. Rep. No. 93-763, p. 69 (1974). The response was to grant the Commissioner of Education rulemaking authority, subject to a legislative veto. In the trade regulation area, the veto preserved congressional authority over the Federal Trade Commission's broad mandate to make rules to prevent businesses from engaging in "unfair or deceptive acts or practices in commerce."[44]

Even this brief review suffices to demonstrate that the legislative veto is more than "efficient, convenient, and useful." Ante, at 944. It is an important if not indispensable political invention that allows the President and Congress to resolve major constitutional and policy differences, assures the accountability of independent regulatory agencies, and preserves [973] Congress' control over lawmaking. Perhaps there are other means of accommodation and accountability, but the increasing reliance of Congress upon the legislative veto suggests that the alternatives to which Congress must now turn are not entirely satisfactory.[45]

[974] The history of the legislative veto also makes clear that it has not been a sword with which Congress has struck out to aggrandize itself at the expense of the other branches — the concerns of Madison and Hamilton. Rather, the veto has been a means of defense, a reservation of ultimate authority necessary if Congress is to fulfill its designated role under Art. I as the Nation's lawmaker. While the President has often objected to particular legislative vetoes, generally those left in the hands of congressional Committees, the Executive has more often agreed to legislative review as the price for a broad delegation of authority. To be sure, the President may have preferred unrestricted power, but that could be precisely why Congress thought it essential to retain a check on the exercise of delegated authority.

II

For all these reasons, the apparent sweep of the Court's decision today is regretable. The Court's Art. I analysis appears to invalidate all legislative vetoes irrespective of form or subject. Because the legislative veto is commonly found as a check upon rulemaking by administrative agencies and upon broad-based policy decisions of the Executive Branch, it is particularly unfortunate that the Court reaches its decision in cases involving the exercise of a veto over deportation decisions regarding particular individuals. Courts should always be wary of striking statutes as unconstitutional; to strike an entire class of statutes based on consideration of a somewhat atypical and more readily indictable exemplar of the class is irresponsible. It was for cases such as these that Justice Brandeis wrote:

"The Court has frequently called attention to the `great gravity and delicacy' of its function in passing upon the validity of an act of Congress . . . .

.....

[975] "The Court will not `formulate a rule of constitutional law broader than is required by the precise facts to which it is to be applied.' Liverpool, N. Y. & P. S. S. Co. v. Emigration Commissioners, [113 U. S. 33, 39 (1885)]." Ashwander v. TVA, 297 U. S. 288, 345, 347 (1936) (concurring opinion).

Unfortunately, today's holding is not so limited.[46]

[976] If the legislative veto were as plainly unconstitutional as the Court strives to suggest, its broad ruling today would be more comprehensible. But, the constitutionality of the legislative veto is anything but clear-cut. The issue divides scholars,[47] courts,[48] Attorneys General,[49] and the two other [977] branches of the National Government. If the veto devices so flagrantly disregarded the requirements of Art. I as the Court today suggests, I find it incomprehensible that Congress, whose Members are bound by oath to uphold the Constitution, would have placed these mechanisms in nearly 200 separate laws over a period of 50 years.

The reality of the situation is that the constitutional question posed today is one of immense difficulty over which the Executive and Legislative Branches — as well as scholars and judges — have understandably disagreed. That disagreement stems from the silence of the Constitution on the precise question: The Constitution does not directly authorize or prohibit the legislative veto. Thus, our task should be to determine whether the legislative veto is consistent with the purposes of Art. I and the principles of separation of powers which are reflected in that Article and throughout the Constitution.[50] [978] We should not find the lack of a specific constitutional authorization for the legislative veto surprising, and I would not infer disapproval of the mechanism from its absence. From the summer of 1787 to the present the Government of the United States has become an endeavor far beyond the contemplation of the Framers. Only within the last half century has the complexity and size of the Federal Government's responsibilities grown so greatly that the Congress must rely on the legislative veto as the most effective if not the only means to insure its role as the Nation's lawmaker. But the wisdom of the Framers was to anticipate that the Nation would grow and new problems of governance would require different solutions. Accordingly, our Federal Government was intentionally chartered with the flexibility to respond to contemporary needs without losing sight of fundamental democratic principles. This was the spirit in which Justice Jackson penned his influential concurrence in the Steel Seizure Case:

"The actual art of governing under our Constitution does not and cannot conform to judicial definitions of the power of any of its branches based on isolated clauses or even single Articles torn from context. While the Constitution diffuses power the better to secure liberty, it also contemplates that practice will integrate the dispersed powers into a workable government." Youngstown Sheet & Tube Co. v. Sawyer, 343 U. S. 579, 635 (1952).

This is the perspective from which we should approach the novel constitutional questions presented by the legislative veto. In my view, neither Art. I of the Constitution nor the doctrine of separation of powers is violated by this mechanism [979] by which our elected Representatives preserve their voice in the governance of the Nation.

III

The Court holds that the disapproval of a suspension of deportation by the resolution of one House of Congress is an exercise of legislative power without compliance with the prerequisites for lawmaking set forth in Art. I of the Constitution. Specifically, the Court maintains that the provisions of § 244(c)(2) are inconsistent with the requirement of bicameral approval, implicit in Art. I, § 1, and the requirement that all bills and resolutions that require the concurrence of both Houses be presented to the President, Art. I, § 7, cls. 2 and 3.[51]

I do not dispute the Court's truismatic exposition of these Clauses. There is no question that a bill does not become a law until it is approved by both the House and the Senate, and presented to the President. Similarly, I would not hesitate to strike an action of Congress in the form of a concurrent resolution which constituted an exercise of original lawmaking authority. I agree with the Court that the President's [980] qualified veto power is a critical element in the distribution of powers under the Constitution, widely endorsed among the Framers, and intended to serve the President as a defense against legislative encroachment and to check the "passing of bad laws, through haste, inadvertence, or design." The Federalist No. 73, p. 458 (H. Lodge ed. 1888) (A. Hamilton). The records of the Convention reveal that it is the first purpose which figured most prominently but I acknowledge the vitality of the second. Id., at 443. I also agree that the bicameral approval required by Art. I, §§ 1, 7, "was of scarcely less concern to the Framers than was the Presidential veto," ante, at 948, and that the need to divide and disperse legislative power figures significantly in our scheme of Government. All of this, Part III of the Court's opinion, is entirely unexceptionable.

It does not, however, answer the constitutional question before us. The power to exercise a legislative veto is not the power to write new law without bicameral approval or Presidential consideration. The veto must be authorized by statute and may only negative what an Executive department or independent agency has proposed. On its face, the legislative veto no more allows one House of Congress to make law than does the Presidential veto confer such power upon the President. Accordingly, the Court properly recognizes that it "must nevertheless establish that the challenged action under § 244(c)(2) is of the kind to which the procedural requirements of Art. I, § 7, apply" and admits that "[n]to every action taken by either House is subject to the bicameralism and presentation requirements of Art. I." Ante, at 952.

A

The terms of the Presentment Clauses suggest only that bills and their equivalent are subject to the requirements of bicameral passage and presentment to the President. Article I, § 7, cl. 2, stipulates only that "Every Bill which shall have passed the House of Representatives and the Senate, [981] shall, before it becomes a law, be presented to the President" for approval or disapproval, his disapproval then subject to being overridden by a two-thirds vote of both Houses. Section 7, cl. 3, goes further:

"Every Order, Resolution, or Vote to which the Concurrence of the Senate and House of Representatives may be necessary (except on a question of Adjournment) shall be presented to the President of the United States; and before the Same shall take Effect, shall be approved by him, or being disapproved by him, shall be repassed by two-thirds of the Senate and House of Representatives, according to the Rules and Limitations prescribed in the Case of a Bill."

Although the Clause does not specify the actions for which the concurrence of both Houses is "necessary," the proceedings at the Philadelphia Convention suggest its purpose was to prevent Congress from circumventing the presentation requirement in the making of new legislation. James Madison observed that if the President's veto was confined to bills, it could be evaded by calling a proposed law a "resolution" or "vote" rather than a "bill." Accordingly, he proposed that "or resolve" should be added after "bill" in what is now Clause 2 of § 7. 2 M. Farrand, The Records of the Federal Convention of 1787, pp. 301-302 (1911). After a short discussion on the subject, the amendment was rejected. On the following day, however, Randolph renewed the proposal in the substantial form as it now appears, and the motion passed. Id., at 304-305; 5 J. Elliot, Debates on the Federal Constitution 431 (1845). The chosen language, Madison's comment, and the brevity of the Convention's consideration, all suggest a modest role was intended for the Clause and no broad restraint on congressional authority was contemplated. See Stewart, Constitutionality of the Legislative Veto, 13 Harv. J. Legis. 593, 609-611 (1976). This reading is consistent with the historical background of the Presentment Clause itself which reveals only that the Framers were concerned [982] with limiting the methods for enacting new legislation. The Framers were aware of the experience in Pennsylvania where the legislature had evaded the requirements attached to the passing of legislation by the use of "resolves," and the criticisms directed at this practice by the Council of Censors.[52] There is no record that the Convention contemplated, let alone intended, that these Art. I requirements would someday be invoked to restrain the scope of congressional authority pursuant to duly enacted law.[53]

[983] When the Convention did turn its attention to the scope of Congress' lawmaking power, the Framers were expansive. The Necessary and Proper Clause, Art. I, § 8, cl. 18, vests [984] Congress with the power "[t]o make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers [the enumerated powers of § 8] and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof." It is long settled that Congress may "exercise its best judgment in the selection of measures, to carry into execution the constitutional powers of the government," and "avail itself of experience, to exercise its reason, and to accommodate its legislation to circumstances." McCulloch v. Maryland, 4 Wheat. 316, 415-416, 420 (1819).

B

The Court heeded this counsel in approving the modern administrative state. The Court's holding today that all legislative-type action must be enacted through the lawmaking process ignores that legislative authority is routinely delegated to the Executive Branch, to the independent regulatory agencies, and to private individuals and groups.

"The rise of administrative bodies probably has been the most significant legal trend of the last century. . . . They have become a veritable fourth branch of the Government, which has deranged our three-branch legal theories. . . ." FTC v. Ruberoid Co., 343 U. S. 470, 487 (1952) (Jackson, J. dissenting).

[985] This Court's decisions sanctioning such delegations make clear that Art. I does not require all action with the effect of legislation to be passed as a law.

Theoretically, agencies and officials were asked only to "fill up the details," and the rule was that "Congress cannot delegate any part of its legislative power except under the limitation of a prescribed standard." United States v. Chicago, M., St. P. & P. R. Co., 282 U. S. 311, 324 (1931). Chief Justice Taft elaborated the standard in J. W. Hampton & Co. v. United States, 276 U. S. 394, 409 (1928): "If Congress shall lay down by legislative act an intelligible principle to which the person or body authorized to fix such rates is directed to conform, such legislative action is not a forbidden delegation of legislative power." In practice, however, restrictions on the scope of the power that could be delegated diminished and all but disappeared. In only two instances did the Court find an unconstitutional delegation. Panama Refining Co. v. Ryan, 293 U. S. 388 (1935); A. L. A. Schechter Poultry Corp. v. United States, 295 U. S. 495 (1935). In other cases, the "intelligible principle" through which agencies have attained enormous control over the economic affairs of the country was held to include such formulations as "just and reasonable," Tagg Bros. & Moorhead v. United States, 280 U. S. 420 (1930); "public interest," New York Central Securities Corp. v. United States, 287 U. S. 12 (1932); "public convenience, interest, or necessity," Federal Radio Comm'n v. Nelson Bros. Bond & Mortgage Co., 289 U. S. 266, 285 (1933); and "unfair methods of competition." FTC v. Gratz, 253 U. S. 421 (1920).

The wisdom and the constitutionality of these broad delegations are matters that still have not been put to rest. But for present purposes, these cases establish that by virtue of congressional delegation, legislative power can be exercised by independent agencies and Executive departments without the passage of new legislation. For some time, the sheer amount of law — the substantive rules that regulate private conduct and direct the operation of government — made by [986] the agencies has far outnumbered the lawmaking engaged in by Congress through the traditional process. There is no question but that agency rulemaking is lawmaking in any functional or realistic sense of the term. The Administrative Procedure Act, 5 U. S. C. § 551(4), provides that a "rule" is an agency statement "designed to implement, interpret, or prescribe law or policy." When agencies are authorized to prescribe law through substantive rulemaking, the administrator's regulation is not only due deference, but is accorded "legislative effect." See, e. g., Schweiker v. Gray Panthers, 453 U. S. 34, 43-44 (1981); Batterton v. Francis, 432 U. S. 416 (1977).[54] These regulations bind courts and officers of the Federal Government, may pre-empt state law, see, e. g., Fidelity Federal Savings & Loan Assn. v. De la Cuesta, 458 U. S. 141 (1982), and grant rights to and impose obligations on the public. In sum, they have the force of law.

If Congress may delegate lawmaking power to independent and Executive agencies, it is most difficult to understand Art. I as prohibiting Congress from also reserving a check on legislative power for itself. Absent the veto, the agencies receiving delegations of legislative or quasi-legislative power may issue regulations having the force of law without bicameral [987] approval and without the President's signature. It is thus not apparent why the reservation of a veto over the exercise of that legislative power must be subject to a more exacting test. In both cases, it is enough that the initial statutory authorizations comply with the Art. I requirements.

Nor are there strict limits on the agents that may receive such delegations of legislative authority so that it might be said that the Legislature can delegate authority to others but not to itself. While most authority to issue rules and regulations is given to the Executive Branch and the independent regulatory agencies, statutory delegations to private persons have also passed this Court's scrutiny. In Currin v. Wallace, 306 U. S. 1 (1939), the statute provided that restrictions upon the production or marketing of agricultural commodities was to become effective only upon the favorable vote by a prescribed majority of the affected farmers. United States v. Rock Royal Co-operative, Inc., 307 U. S. 533, 577 (1939), upheld an Act which gave producers of specified commodities the right to veto marketing orders issued by the Secretary of Agriculture. Assuming Currin and Rock Royal Co-operative remain sound law, the Court's decision today suggests that Congress may place a "veto" power over suspensions of deportation in private hands or in the hands of an independent agency, but is forbidden to reserve such authority for itself. Perhaps this odd result could be justified on other constitutional grounds, such as the separation of powers, but certainly it cannot be defended as consistent with the Court's view of the Art. I presentment and bicameralism commands.[55]

[988] The Court's opinion in the present cases comes closest to facing the reality of administrative lawmaking in considering the contention that the Attorney General's action in suspending deportation under § 244 is itself a legislative act. The Court posits that the Attorney General is acting in an Art. II enforcement capacity under § 244. This characterization is at odds with Mahler v. Eby, 264 U. S. 32, 40 (1924), where the power conferred on the Executive to deport aliens was considered a delegation of legislative power. The Court suggests, however, that the Attorney General acts in an Art. II capacity because "[t]he courts, when a case or controversy arises, can always `ascertain whether the will of Congress has been obeyed,' Yakus v. United States, 321 U. S. 414, 425 (1944), and can enforce adherence to statutory standards." Ante, at 953, n. 16. This assumption is simply wrong, as the Court itself points out: "We are aware of no decision . . . where a federal court has reviewed a decision of the Attorney General suspending deportation of an alien pursuant to the standards set out in § 244(a)(1). This is not surprising, given that no party to such action has either the motivation or the right to appeal from it." Ante, at 957, n. 22. It is perhaps on the erroneous premise that judicial review may check abuses of the § 244 power that the Court also submits that "[t]he bicameral process is not necessary as a check on the Executive's administration of the laws because his administrative activity cannot reach beyond the limits of the statute that created it — a statute duly enacted pursuant to Art. I, §§ 1, 7." Ante, at 953, n. 16. On the other hand, the Court's reasoning does persuasively explain why a resolution of disapproval [989] under § 244(c)(2) need not again be subject to the bicameral process. Because it serves only to check the Attorney General's exercise of the suspension authority granted by § 244, the disapproval resolution — unlike the Attorney General's action — "cannot reach beyond the limits of the statute that created it — a statute duly enacted pursuant to Art. I."

More fundamentally, even if the Court correctly characterizes the Attorney General's authority under § 244 as an Art. II Executive power, the Court concedes that certain administrative agency action, such as rulemaking, "may resemble lawmaking" and recognizes that "[t]his Court has referred to agency activity as being `quasi-legislative' in character. Humphrey's Executor v. United States, 295 U. S. 602, 628 (1935)." Ante, at 953, n. 16. Such rules and adjudications by the agencies meet the Court's own definition of legislative action for they "alte[r] the legal rights, duties, and relations of persons . . . outside the Legislative Branch," ante, at 952, and involve "determinations of policy," ante, at 954. Under the Court's analysis, the Executive Branch and the independent agencies may make rules with the effect of law while Congress, in whom the Framers confided the legislative power, Art. I, § 1, may not exercise a veto which precludes such rules from having operative force. If the effective functioning of a complex modern government requires the delegation of vast authority which, by virtue of its breadth, is legislative or "quasi-legislative" in character, I cannot accept that Art. I — which is, after all, the source of the nondelegation doctrine — should forbid Congress to qualify that grant with a legislative veto.[56]

[990] C

The Court also takes no account of perhaps the most relevant consideration: However resolutions of disapproval under § 244(c)(2) are formally characterized, in reality, a departure from the status quo occurs only upon the concurrence of opinion among the House, Senate, and President. Reservations of legislative authority to be exercised by Congress should be upheld if the exercise of such reserved authority is consistent with the distribution of and limits upon legislative power that Art. I provides.

1

As its history reveals, § 244(c)(2) withstands this analysis. Until 1917, Congress had not broadly provided for the deportation of aliens. Act of Feb. 5, 1917, § 19, 39 Stat. 889. The Immigration Act of 1924 enlarged the categories of [991] aliens subject to mandatory deportation, and substantially increased the likelihood of hardships to individuals by abolishing in most cases the previous time limitation of three years within which deportation proceedings had to be commenced. Immigration Act of 1924, ch. 190, 43 Stat. 153. Thousands of persons, who either had entered the country in more lenient times or had been smuggled in as children, or had overstayed their permits, faced the prospect of deportation. Enforcement of the Act grew more rigorous over the years with the deportation of thousands of aliens without regard to the mitigating circumstances of particular cases. See Mansfield, The Legislative Veto and the Deportation of Aliens, 1 Public Administration Review 281 (1941). Congress provided relief in certain cases through the passage of private bills.

In 1933, when deportations reached their zenith, the Secretary of Labor temporarily suspended numerous deportations on grounds of hardship, 78 Cong. Rec. 11783 (1934), and proposed legislation to allow certain deportable aliens to remain in the country. H. R. 9725, 73d Cong., 2d Sess. (1934). The Labor Department bill was opposed, however, as "grant[ing] too much discretionary authority," 78 Cong. Rec. 11790 (1934) (remarks of Rep. Dirksen), and it failed decisively. Id., at 11791.

The following year, the administration proposed bills to authorize an interdepartmental committee to grant permanent residence to deportable aliens who had lived in the United States for 10 years or who had close relatives here. S. 2969 and H. R. 8163, 74th Cong., 1st Sess. (1935). These bills were also attacked as an "abandonment of congressional control over the deportation of undesirable aliens," H. R. Rep. No. 1110, 74th Cong., 1st Sess., pt. 2, p. 2 (1935), and were not enacted. A similar fate awaited a bill introduced in the 75th Congress that would have authorized the Secretary to grant permanent residence to up to 8,000 deportable aliens. The measure passed the House, but did not come to a vote in the Senate. H. R. 6391, 75th Cong., 1st Sess., 83 Cong. Rec. 8992-8996 (1938).

[992] The succeeding Congress again attempted to find a legislative solution to the deportation problem. The initial House bill required congressional action to cancel individual deportations, 84 Cong. Rec. 10455 (1939), but the Senate amended the legislation to provide that deportable aliens should not be deported unless the Congress by Act or resolution rejected the recommendation of the Secretary. H. R. 5138, § 10, as reported with amendments by S. Rep. No. 1721, 76th Cong., 3d Sess., 2 (1940). The compromise solution, the immediate predecessor to § 244(c), allowed the Attorney General to suspend the deportation of qualified aliens. Their deportation would be canceled and permanent residence granted if the House and Senate did not adopt a concurrent resolution of disapproval. S. Rep. No. 1796, 76th Cong., 3d Sess., 5-6 (1940). The Executive Branch played a major role in fashioning this compromise, see 86 Cong. Rec. 8345 (1940), and President Roosevelt approved the legislation, which became the Alien Registration Act of 1940, ch. 439, 54 Stat. 670.

In 1947, the Department of Justice requested legislation authorizing the Attorney General to cancel deportations without congressional review. H. R. 2933, 80th Cong., 1st Sess. (1947). The purpose of the proposal was to "save time and energy of everyone concerned . . . ." Regulating Powers of the Attorney General to Suspend Deportation of Aliens: Hearings on H. R. 245, H. R. 674, H. R. 1115, and H. R. 2933 before the Subcommittee on Immigration of the House Committee on the Judiciary, 80th Cong., 1st Sess., 34 (1947). The Senate Judiciary Committee objected, stating that "affirmative action by the Congress in all suspension cases should be required before deportation proceedings may be canceled." S. Rep. No. 1204, 80th Cong., 2d Sess., 4 (1948). See also H. R. Rep. No. 647, 80th Cong., 1st Sess., 2 (1947). Congress not only rejected the Department's request for final authority but also amended the Immigration Act to require that cancellation of deportation be approved [993] by a concurrent resolution of the Congress. President Truman signed the bill without objection. Act of July 1, 1948, ch. 783, 62 Stat. 1206.

Practice over the ensuing several years convinced Congress that the requirement of affirmative approval was "not workable . . . and would, in time, interfere with the legislative work of the House." House Judiciary Committee, H. R. Rep. No. 362, 81st Cong., 1st Sess., 2 (1949). In preparing the comprehensive Immigration and Nationality Act of 1952, the Senate Judiciary Committee recommended that for certain classes of aliens the adjustment of status be subject to the disapproval of either House; but deportation of an alien "who is of the criminal, subversive, or immoral classes or who overstays his period of admission," would be canceled only upon a concurrent resolution disapproving the deportation. S. Rep. No. 1515, 81st Cong., 2d Sess., 610 (1950). Legislation reflecting this change was passed by both Houses, and enacted into law as part of the Immigration and Nationality Act of 1952 over President Truman's veto, which was not predicated on the presence of a legislative veto. Pub. L. 414, § 244(a), 66 Stat. 214. In subsequent years, the Congress refused further requests that the Attorney General be given final authority to grant discretionary relief for specified categories of aliens, and § 244 remained intact to the present.

Section 244(a)(1) authorizes the Attorney General, in his discretion, to suspend the deportation of certain aliens who are otherwise deportable and, upon Congress' approval, to adjust their status to that of aliens lawfully admitted for permanent residence. In order to be eligible for this relief, an alien must have been physically present in the United States for a continuous period of not less than seven years, must prove he is of good moral character, and must prove that he or his immediate family would suffer "extreme hardship" if he is deported. Judicial review of a denial of relief may be sought. Thus, the suspension proceeding "has two phases: a [994] determination whether the statutory conditions have been met, which generally involves a question of law, and a determination whether relief shall be granted, which [ultimately] is confided to the sound discretion of the Attorney General [and his delegates]." 2 C. Gordon & H. Rosenfield, Immigration Law and Procedure § 7.9a(5), p. 7-134 (rev. ed. 1983).

There is also a third phase to the process. Under § 244(c) (1) the Attorney General must report all such suspensions, with a detailed statement of facts and reasons, to the Congress. Either House may then act, in that session or the next, to block the suspension of deportation by passing a resolution of disapproval. § 244(c)(2). Upon congressional approval of the suspension — by its silence — the alien's permanent status is adjusted to that of a lawful resident alien.

The history of the Immigration and Nationality Act makes clear that § 244(c)(2) did not alter the division of actual authority between Congress and the Executive. At all times, whether through private bills, or through affirmative concurrent resolutions, or through the present one-House veto, a permanent change in a deportable alien's status could be accomplished only with the agreement of the Attorney General, the House, and the Senate.

2

The central concern of the presentment and bicameralism requirements of Art. I is that when a departure from the legal status quo is undertaken, it is done with the approval of the President and both Houses of Congress — or, in the event of a Presidential veto, a two-thirds majority in both Houses. This interest is fully satisfied by the operation of § 244(c)(2). The President's approval is found in the Attorney General's action in recommending to Congress that the deportation order for a given alien be suspended. The House and the Senate indicate their approval of the Executive's action by not passing a resolution of disapproval within the statutory period. Thus, a change in the legal status quo — the deportability of the alien — is consummated only with the approval [995] of each of the three relevant actors. The disagreement of any one of the three maintains the alien's pre-existing status: the Executive may choose not to recommend suspension; the House and Senate may each veto the recommendation. The effect on the rights and obligations of the affected individuals and upon the legislative system is precisely the same as if a private bill were introduced but failed to receive the necessary approval. "The President and the two Houses enjoy exactly the same say in what the law is to be as would have been true for each without the presence of the one-House veto, and nothing in the law is changed absent the concurrence of the President and a majority in each House." Atkins v. United States, 214 Ct. Cl. 186, 250, 556 F. 2d 1028, 1064 (1977), cert. denied, 434 U. S. 1009 (1978).

This very construction of the Presentment Clauses which the Executive Branch now rejects was the basis upon which the Executive Branch defended the constitutionality of the Reorganization Act, 5 U. S. C. § 906(a) (1982 ed.), which provides that the President's proposed reorganization plans take effect only if not vetoed by either House. When the Department of Justice advised the Senate on the constitutionality of congressional review in reorganization legislation in 1949, it stated: "In this procedure there is no question involved of the Congress taking legislative action beyond its initial passage of the Reorganization Act." S. Rep. No. 232, 81st Cong., 1st Sess., 20 (1949) (Dept. of Justice Memorandum). This also represents the position of the Attorney General more recently.[57]

[996] Thus understood, § 244(c)(2) fully effectuates the purposes of the bicameralism and presentment requirements. I now briefly consider possible objections to the analysis.

First, it may be asserted that Chadha's status before legislative disapproval is one of nondeportation and that the exercise of the veto, unlike the failure of a private bill, works a change in the status quo. This position plainly ignores the statutory language. At no place in § 244 has Congress delegated to the Attorney General any final power to determine which aliens shall be allowed to remain in the United States. Congress has retained the ultimate power to pass on such changes in deportable status. By its own terms, § 244(a) states that whatever power the Attorney General has been delegated to suspend deportation and adjust status is to be exercisable only "[a]s hereinafter prescribed in this section." Subsection (c) is part of that section. A grant of "suspension" does not cancel the alien's deportation or adjust the alien's status to that of a permanent resident alien. A suspension order is merely a "deferment of deportation," McGrath v. Kristensen, 340 U. S. 162, 168 (1950), which can mature into a cancellation of deportation and adjustment of status only upon the approval of Congress — by way of silence — under § 244(c)(2). Only then does the statute authorize the Attorney General to "cancel deportation proceedings," § 244(c)(2), and "record the alien's lawful admission for permanent residence . . . ." § 244(d). The Immigration and Naturalization Service's action, on behalf of the Attorney General, "cannot become effective without ratification by Congress." 2 C. Gordon & H. Rosenfield, Immigration Law [997] and Procedure § 8.14, p. 8-121 (rev. ed. 1983). Until that ratification occurs, the Executive's action is simply a recommendation that Congress finalize the suspension — in itself, it works no legal change.

Second, it may be said that this approach leads to the incongruity that the two-House veto is more suspect than its one-House brother. Although the idea may be initially counterintuitive, on close analysis, it is not at all unusual that the one-House veto is of more certain constitutionality than the two-House version. If the Attorney General's action is a proposal for legislation, then the disapproval of but a single House is all that is required to prevent its passage. Because approval is indicated by the failure to veto, the one-House veto satisfies the requirement of bicameral approval. The two-House version may present a different question. The concept that "neither branch of Congress, when acting separately, can lawfully exercise more power than is conferred by the Constitution on the whole body," Kilbourn v. Thompson, 103 U. S. 168, 182 (1881), is fully observed.[58]

Third, it may be objected that Congress cannot indicate its approval of legislative change by inaction. In the Court of Appeals' view, inaction by Congress "could equally imply endorsement, acquiescence, passivity, indecision, or indifference," 634 F. 2d 408, 435 (1980), and the Court appears to echo this concern, ante, at 958, n. 23. This objection appears more properly directed at the wisdom of the legislative veto than its constitutionality. The Constitution does not and cannot guarantee that legislators will carefully scrutinize legislation and deliberate before acting. In a democracy it is the electorate that holds the legislators accountable for the wisdom of their choices. It is hard to maintain that a private bill receives any greater individualized scrutiny than a resolution [998] of disapproval under § 244(c)(2). Certainly the legislative veto is no more susceptible to this attack than the Court's increasingly common practice of according weight to the failure of Congress to disturb an Executive or independent agency's action. See n. 11, supra. Earlier this Term, the Court found it important that Congress failed to act on bills proposed to overturn the Internal Revenue Service's interpretation of the requirements for tax-exempt status under § 501(c)(3) of the Internal Revenue Code. Bob Jones University v. United States, 461 U. S. 574, 600-601 (1983). If Congress may be said to have ratifed the Internal Revenue Service's interpretation without passing new legislation, Congress may also be said to approve a suspension of deportation by the Attorney General when it fails to exercise its veto authority.[59] The requirements of Art. I are not compromised by the congressional scheme.

IV

The Court of Appeals struck § 244(c)(2) as violative of the constitutional principle of separation of powers. It is true that the purpose of separating the authority of Government is to prevent unnecessary and dangerous concentration of power in one branch. For that reason, the Framers saw fit to divide and balance the powers of Government so that each branch would be checked by the others. Virtually every part of our constitutional system bears the mark of this judgment.

[999] But the history of the separation-of-powers doctrine is also a history of accommodation and practicality. Apprehensions of an overly powerful branch have not led to undue prophylactic measures that handicap the effective working of the National Government as a whole. The Constitution does not contemplate total separation of the three branches of Government. Buckley v. Valeo, 424 U. S. 1, 121 (1976). "[A] hermetic sealing off of the three branches of Government from one another would preclude the establishment of a Nation capable of governing itself effectively." Ibid.[60]

Our decisions reflect this judgment. As already noted, the Court, recognizing that modern government must address a formidable agenda of complex policy issues, countenanced the delegation of extensive legislative authority to Executive and independent agencies. J. W. Hampton & Co. v. United States, 276 U. S. 394, 406 (1928). The separation-of-powers doctrine has heretofore led to the invalidation of Government action only when the challenged action violated some express provision in the Constitution. In Buckley v. Valeo, supra, at 118-124 (per curiam), and Myers v. United States, 272 U. S. 52 (1926), congressional action compromised the appointment power of the President. See also Springer v. Philippine Islands, 277 U. S. 189, 200-201 (1928). In United States v. Klein, 13 Wall. 128 (1872), an Act of Congress was struck for encroaching upon judicial [1000] power, but the Court found that the Act also impinged upon the Executive's exclusive pardon power. Art. II, § 2. Because we must have a workable efficient Government, this is as it should be.

This is the teaching of Nixon v. Administrator of General Services, 433 U. S. 425 (1977), which, in rejecting a separation-of-powers objection to a law requiring that the Administrator take custody of certain Presidential papers, set forth a framework for evaluating such claims:

"[I]n determining whether the Act disrupts the proper balance between the coordinate branches, the proper inquiry focuses on the extent to which it prevents the Executive Branch from accomplishing its constitutionally assigned functions. United States v. Nixon, 418 U. S., at 711-712. Only where the potential for disruption is present must we then determine whether that impact is justified by an overriding need to promote objectives within the constitutional authority of Congress." Id., at 443.

Section 244(c)(2) survives this test. The legislative veto provision does not "preven[t] the Executive Branch from accomplishing its constitutionally assigned functions." First, it is clear that the Executive Branch has no "constitutionally assigned" function of suspending the deportation of aliens. " `[O]ver no conceivable subject is the legislative power of Congress more complete than it is over' the admission of aliens." Kleindienst v. Mandel, 408 U. S. 753, 766 (1972), quoting Oceanic Steam Navigation Co. v. Stranahan, 214 U. S. 320, 339 (1909). Nor can it be said that the inherent function of the Executive Branch in executing the law is involved. The Steel Seizure Case resolved that the Art. II mandate for the President to execute the law is a directive to enforce the law which Congress has written. Youngstown Sheet & Tube Co. v. Sawyer, 343 U. S. 579 (1952). "The duty of the President to see that the laws be executed is a [1001] duty that does not go beyond the laws or require him to achieve more than Congress sees fit to leave within his power." Myers v. United States, 272 U. S., at 177 (Holmes, J., dissenting); id., at 247 (Brandeis, J., dissenting). Here, § 244 grants the Executive only a qualified suspension authority, and it is only that authority which the President is constitutionally authorized to execute.

Moreover, the Court believes that the legislative veto we consider today is best characterized as an exercise of legislative or quasi-legislative authority. Under this characterization, the practice does not, even on the surface, constitute an infringement of executive or judicial prerogative. The Attorney General's suspension of deportation is equivalent to a proposal for legislation. The nature of the Attorney General's role as recommendatory is not altered because § 244 provides for congressional action through disapproval rather than by ratification. In comparison to private bills, which must be initiated in the Congress and which allow a Presidential veto to be overriden by a two-thirds majority in both Houses of Congress, § 244 augments rather than reduces the Executive Branch's authority. So understood, congressional review does not undermine, as the Court of Appeals thought, the "weight and dignity" that attends the decisions of the Executive Branch.

Nor does § 244 infringe on the judicial power, as JUSTICE POWELL would hold. Section 244 makes clear that Congress has reserved its own judgment as part of the statutory process. Congressional action does not substitute for judicial review of the Attorney General's decisions. The Act provides for judicial review of the refusal of the Attorney General to suspend a deportation and to transmit a recommendation to Congress. INS v. Jong Ha Wang, 450 U. S. 139 (1981) (per curiam). But the courts have not been given the authority to review whether an alien should be given permanent status; review is limited to whether the Attorney General has properly [1002] applied the statutory standards for essentially denying the alien a recommendation that his deportable status be changed by the Congress. Moreover, there is no constitutional obligation to provide any judicial review whatever for a failure to suspend deportation. "The power of Congress, therefore, to expel, like the power to exclude aliens, or any specified class of aliens, from the country, may be exercised entirely through executive officers; or Congress may call in the aid of the judiciary to ascertain any contested facts on which an alien's right to be in the country has been made by Congress to depend." Fong Yue Ting v. United States, 149 U. S. 698, 713-714 (1893). See also Tutun v. United States, 270 U. S. 568, 576 (1926); Ludecke v. Watkins, 335 U. S. 160, 171-172 (1948); Harisiades v. Shaughnessy, 342 U. S. 580, 590 (1952).

I do not suggest that all legislative vetoes are necessarily consistent with separation-of-powers principles. A legislative check on an inherently executive function, for example, that of initiating prosecutions, poses an entirely different question. But the legislative veto device here — and in many other settings — is far from an instance of legislative tyranny over the Executive. It is a necessary check on the unavoidably expanding power of the agencies, both Executive and independent, as they engage in exercising authority delegated by Congress.

V

I regret that I am in disagreement with my colleagues on the fundamental questions that these cases present. But even more I regret the destructive scope of the Court's holding. It reflects a profoundly different conception of the Constitution than that held by the courts which sanctioned the modern administrative state. Today's decision strikes down in one fell swoop provisions in more laws enacted by Congress than the Court has cumulatively invalidated in its history. I fear it will now be more difficult to "insur[e] that the fundamental policy decisions in our society will be made not [1003A] by an appointed official but by the body immediately responsible to the people," Arizona v. California, 373 U. S. 546, 626 (1963) (Harlan, J., dissenting in part). I must dissent.

[1003B] APPENDIX TO OPINION OF WHITE, J., DISSENTING

STATUTES WITH PROVISIONS AUTHORIZING CONGRESSIONAL REVIEW

This compilation, reprinted from the Brief for the United States Senate, identifies and describes briefly current statutory provisions for a legislative veto by one or both Houses of Congress. Statutory provisions for a veto by Committees of the Congress and provisions which require legislation (i. e., passage of a joint resolution) are not included. The 55 statutes in the compilation (some of which contain more than one provision for legislative review) are divided into six broad categories: foreign affairs and national security, budget, international trade, energy, rulemaking and miscellaneous.

"A.

"FOREIGN AFFAIRS AND NATIONAL SECURITY

"1. Act for International Development of 1961, Pub. L. No. 87-195, § 617, 75 Stat. 424, 444, [as amended,] 22 U. S. C. 2367 [(1976 ed., Supp. V)] (Funds made available for foreign assistance under the Act may be terminated by concurrent resolution).

"2. War Powers Resolution, Pub. L. No. 93-148, § 5, 87 Stat. 555, 556-557 (1973), [as amended,] 50 U. S. C. 1544 [(1976 ed. and Supp. V)] (Absent declaration of war, President may be directed by concurrent resolution to remove United States armed forces engaged in foreign hostilities.)

"3. Department of Defense Appropriation Authorization Act, 1974, Pub. L. No. 93-155, § 807, 87 Stat. 605, 615 (1973), 50 U. S. C. 1431 (National defense contracts obligating the United States for any amount in excess of $25,000,000 may be disapproved by resolution of either House).

[1004] "4. Department of Defense Appropriation Authorization Act, 1975, Pub. L. No. 93-365, § 709(c), 88 Stat. 399, 408 (1974), [as amended,] 50 U. S. C. app. 2403-1(c) [(1976 ed., Supp. V)] (Applications for export of defense goods, technology or techniques may be disapproved by concurrent resolution).

"5. H. R. J. Res. 683, Pub. L. No. 94-110, § 1, 89 Stat. 572 (1975), 22 U. S. C. 2441 note (Assignment of civilian personnel to Sinai may be disapproved by concurrent resolution).

"6. International Development and Food Assistance Act of 1975, Pub. L. No. 94-161, § 310, 89 Stat. 849, 860, [as amended,] 22 U. S. C. 2151n [(1976 ed., Supp. V)] (Foreign assistance to countries not meeting human rights standards may be terminated by concurrent resolution).

"7. International Security Assistance and Arms [Export] Control Act of 1976, Pub. L. No. 94-329, § [211(a)], 90 Stat. 729, 743, [as amended,] 22 U. S. C. 2776(b) [(1976 ed. and Supp. V)] (President's letter of offer to sell major defense equipment may be disapproved by concurrent resolution).

"8. National Emergencies Act, Pub. L. No. 94-412, § 202, 90 Stat. 1255 (1976), 50 U. S. C. 1622 (Presidentially declared national emergency may be terminated by concurrent resolution).

"9. International Navigational Rules Act of 1977, Pub. L. No. 95-75, § 3(d), 91 Stat. 308, 33 U. S. C. § 1602(d) [(1976 ed., Supp. V)] (Presidential proclamation of International Regulations for Preventing Collisions at Sea may be disapproved by concurrent resolution).

"10. International Security Assistance Act of 1977, Pub. L. No. 95-92, § 16, 91 Stat. 614, 622, 22 U. S. C. § 2753(d)(2) (President's proposed transfer of arms to a third country may be disapproved by concurrent resolution).

"11. Act of December [28], 1977, Pub. L. No. 95-223, § [207(b)], 91 Stat. 1625, 1628, 50 U. S. C. 1706(b) [(1976 ed., Supp. V)] (Presidentially declared national emergency and exercise of conditional powers may be terminated by concurrent resolution).

[1005] "12. Nuclear Non-Proliferation Act of 1978, Pub. L. No. 95-242, §§ [303(a), 304(a)], 306, 307, 401, 92 Stat. 120, 130, 134, 137-38, 139, 144, 42 U. S. C. §§ 2160(f), 2155(b), 2157(b), [2158] 2153(d) [(1976 ed., Supp. V)] (Cooperative agreements concerning storage and disposition of spent nuclear fuel, proposed export of nuclear facilities, materials or technology and proposed agreements for international cooperation in nuclear reactor development may be disapproved by concurrent resolution).

"B.

"BUDGET

"13. Congressional Budget and Impoundment Control Act of 1974, Pub. L. No. 93-344, § 1013, 88 Stat. 297, 334-35, 31 U. S. C. 1403 (The proposed deferral of budget authority provided for a specific project or purpose may be disapproved by an impoundment resolution by either House).

"C.

"INTERNATIONAL TRADE

"14. Trade Expansion Act of 1962, Pub. L. No. 87-794, § 351, 76 Stat. 872, 899, 19 U. S. C. 1981(a) (Tariff or duty recommended by Tariff Commission may be imposed by concurrent resolution of approval).

"15. Trade Act of 1974, Pub. L. No. 93-618, §§ 203(c), 302(b), 402(d), 407, 88 Stat. 1978, 2016, 2043, 2057-60, 2063-64, [as amended,] 19 U. S. C. 2253(c), 2412(b), 2432, [2437 (1976 ed. and Supp. V)] (Proposed Presidential actions on import relief and actions concerning certain countries may be disapproved by concurrent resolution; various Presidential proposals for waiver extensions and for extension of nondiscriminatory treatment to products of foreign countries may be disapproved by simple (either House) or concurrent resolutions).

"16. Export-Import Bank Amendments of 1974, Pub. L. No. 93-646, § 8, 88 Stat. 2333, 2336, 12 U. S. C. [635e(b)] (Presidentially proposed limitation for exports to USSR in [1006] excess of $300,000,000 must be approved by concurrent resolution).

"D.

"ENERGY

"17. Act of November 16, 1973, Pub. L. No. 93-153, § 101, 87 Stat. 576, 582, 30 U. S. C. 185(u) (Continuation of oil exports being made pursuant to President's finding that such exports are in the national interest may be disapproved by concurrent resolution).

"18. Federal Nonnuclear Energy Research and Development Act of 1974, Pub. L. No. 93-577, § 12, 88 Stat. 1878, 1892-1893, 42 U. S. C. 5911 (Rules or orders proposed by the President concerning allocation or acquisition of essential materials may be disapproved by resolution of either House).

"19. Energy Policy and Conservation Act, Pub. L. No. 94-163, § 551, 89 Stat. 871, 965 (1975), 42 U. S. C. 6421(c) (Certain Presidentially proposed `energy actions' involving fuel economy and pricing may be disapproved by resolution of either House).

"20. Naval Petroleum Reserves Production Act of 1976, Pub. L. No. 94-258, § [201(3)], 90 Stat. 303, 309, 10 U. S. C. 7422(c)(2)(C) (President's extension of production period for naval petroleum reserves may be disapproved by resolution of either House).

.....

"22. Department of Energy Act of 1978 — Civilian Applications, Pub. L. No. 95-238, §§ 107, 207(b), 92 Stat. 47, 55, 70, 22 U. S. C. 3224a, 42 U. S. C. 5919(m) [(1976 ed., Supp. V)] (International agreements and expenditures by Secretary of Energy of appropriations for foreign spent nuclear fuel storage must be approved by concurrent resolution, if not consented to by legislation;) (plans for such use of appropriated funds may be disapproved by either House;) (financing in excess of $50,000,000 for demonstration facilities must be approved by resolution in both Houses).

[1007] "23. Outer Continental Shelf Lands Act Amendments of 1978, Pub. L. No. 95-372, §§ 205(a), 208, 92 Stat. 629, 641, 668, 43 U. S. C. §§ 1337(a), 1354(c) [(1976 ed., Supp. V)] (Establishment by Secretary of Energy of oil and gas lease bidding system may be disapproved by resolution of either House;) (export of oil and gas may be disapproved by concurrent resolution).

"24. Natural Gas Policy Act of 1978, Pub. L. No. 95-621, §§ 122(c)(1) and (2), 202(c), 206(d)(2), 507, 92 Stat. 3350, 3370, 3371, 3372, 3380, 3406, 15 U. S. C. 3332, 3342(c), 3346(d)(2), 3417 [(1976 ed., Supp. V)] (Presidential reimposition of natural gas price controls may be disapproved by concurrent resolution;) (Congress may reimpose natural gas price controls by concurrent resolution;) (Federal Energy Regulatory Commission (FERC) amendment to pass through incremental costs of natural gas, and exemptions therefrom, may be disapproved by resolution of either House;) (procedure for congressional review established).

"25. Export Administration Act of 1979, Pub. L. No. 96-72, § [7(d)(2)(B)] 7(g)(3), 93 Stat. 503, 518, 520, 50 U. S. C. app. 2406(d)(2)(B), 2406(g)(3) [(1976 ed., Supp. V)] (President's proposal to [export] domestically produce[d] crude oil must be approved by concurrent resolution;) (action by Secretary of Commerce to prohibit or curtail export of agricultural commodities may be disapproved by concurrent resolution).

"26. Energy Security Act, Pub. L. No. 96-294, §§ 104 (b)(3), 104(e), 126(d)(2), 126(d)(3), 128, 129, 132(a)(3), 133 (a)(3), 137(b)(5), 141(d), 179(a), 803, 94 Stat. 611, 618, 619, 620, 623-26, 628-29, 649, 650-52, 659, 660, 664, 666, 679, 776 (1980) 50 U. S. C. app. 2091-93, 2095, 2096, 2097, 42 U. S. C. 8722, 8724, 8725, 8732, 8733, 8737, 8741, 8779, 6240 [(1976 ed., Supp. V)] (Loan guarantees by Departments of Defense, Energy and Commerce in excess of specified amounts may be disapproved by resolution of either House;) (President's proposal to provide loans or guarantees in excess [1008] of established amounts may be disapproved by resolution of either House;) (proposed award by President of individual contracts for purchase of more than 75,000 barrels per day of crude oil may be disapproved by resolution of either House;) (President's proposals to overcome energy shortage through synthetic fuels development, and individual contracts to purchase more than 75,000 barrels per day, including use of loans or guarantees, may be disapproved by resolution of either House;) (procedures for either House to disapprove proposals made under Act are established;) (request by Synthetic Fuels Corporation (SFC) for additional time to submit its comprehensive strategy may be disapproved by resolution of either House;) (proposed amendment to comprehensive strategy by SFC Board of Directors may be disapproved by concurrent resolution of either House or by failure of both Houses to pass concurrent resolution of approval;) (procedure for either House to disapprove certain proposed actions of SFC is established;) (procedure for both Houses to approve by concurrent resolution or either House to reject concurrent resolution for proposed amendments to comprehensive strategy of SFC is established;) (proposed loans and loan guarantees by SFC may be disapproved by resolution of either House;) (acquisition by SFC of a synthetic fuels project which is receiving financial assistance may be disapproved by resolution of either House;) (SFC contract renegotiations exceeding initial cost estimates by 175% may be disapproved by resolution of either House;) (proposed financial assistance to synthetic fuel projects in Western Hemisphere outside United States may be disapproved by resolution of either House;) (President's request to suspend provisions requiring build up of reserves and limiting sale or disposal of certain crude oil reserves must be approved by resolution of both Houses).

"E.

"RULEMAKING

"27. Education Amendments of 1974, Pub. L. No. 93-380, § [509(a)], 88 Stat. 484, 567, 20 U. S. C. 1232(d)(1) [(1976 ed., [1009] Supp. V)] (Department of Education regulations may be disapproved by concurrent resolution).

"28. Federal Education Campaign Act Amendments of 1979, Pub. L. No. 96-187, § 109, 93 Stat. 1339, 1364, 2 U. S. C. 438(d)(2) [(1976 ed., Supp. V)] (Proposed rules and regulations of the Federal Election Commission may be disapproved by resolution of either House).

"29. Act of January 2, 1975, Pub. L. No. 93-595, § [2(a)(1)], 88 Stat. 1926, 1948, 28 U. S. C. 2076 (Proposed amendments by Supreme Court of Federal Rules of Evidence may be disapproved by resolution of either House).

"30. Act of August 9, 1975, Pub. L. No. 94-88, § 208, 89 Stat. 433, 436-37, 42 U. S. C. 602 note (Social Security standards proposed by Secretary of Health and Human Services may be disapproved by either House).

"31. Airline Deregulation Act of 1978, Pub. L. No. 95-504, § 43(f)(3), 92 Stat. 1705, 1752, 49 U. S. C. 1552(f) [(1976 ed., Supp. V)] (Rules or regulations governing employee protection program may be disapproved by resolution of either House).

"32. Education Amendments of 1978, Pub. L. No. 95-561, §§ 1138, [212(b)], 1409, 92 Stat. 2143, 2327, 2341, 2369, 25 U. S. C. 2018, 20 U. S. C. [927], 1221-3(e) [(1976 ed., Supp. V)] (Rules and regulations proposed under the Act may be disapproved by concurrent resolution).

"33. Civil Rights of Institutionalized Persons Act, Pub. L. No. 96-247, § 7(b)(1), 94 Stat. 349, 352-353 (1980) 42 U. S. C. 1997e [(1976 ed., Supp. V)] (Attorney General's proposed standards for resolution of grievances of adults confined in correctional facilities may be disapproved by resolution of either House).

"34. Federal Trade Commission Improvements Act of 1980, Pub. L. No. 96-252, § 21(a), 94 Stat. 374, 393, 15 U. S. C. 57a-1 [(1976 ed., Supp. V)] (Federal Trade Commission rules may be disapproved by concurrent resolution).

"35. Department of Education Organization Act, Pub. L. No. 96-88, § 414(b), 93 Stat. 668, 685 (1979), 20 U. S. C. 3474 [1010] [(1976 ed., Supp. V)] (Rules and regulations promulgated with respect to the various functions, programs and responsibilities transferred by this Act, may be disapproved by concurrent resolution).

"36. Multiemployer Pension Plan Amendments Act of 1980, Pub. L. No. 96-364, § 102, 94 Stat. 1208, 1213, 29 U. S. C. 1322a [(1976 ed., Supp. V)] (Schedules proposed by Pension Benefit Guaranty Corporation (PBGC) which requires an increase in premiums must be approved by concurrent resolution;) (revised premium schedules for voluntary supplemental coverage proposed by PBGC may be disapproved by concurrent resolution).

"37. Farm Credit Act Amendments of 1980, Pub. L. No. 96-592, § 508, 94 Stat. 3437, 3450, 12 U. S. C. [2252 (1976 ed., Supp. V)] (Certain Farm Credit Administration regulations may be disapproved by concurrent resolution or delayed by resolution of either House.)

"38. Comprehensive Environmental Response, Compensation, and Liability Act of 1980, Pub. L. No. 96-510, § 305, 94 Stat. 2767, 2809, 42 U. S. C. 9655 [(1976 ed., Supp. V)] (Environmental Protection Agency regulations concerning hazardous substances releases, liability and compensation may be disapproved by concurrent resolution or by the adoption of either House of a concurrent resolution which is not disapproved by the other House).

"39. National Historic Preservation Act Amendments of 1980, Pub. L. No. 96-515, § 501, 94 Stat. 2987, 3004, 16 U. S. C. 470w-6 [(1976 ed., Supp. V)] (Regulation proposed by the Secretary of the Interior may be disapproved by concurrent resolution).

"40. Coastal Zone Management Improvement Act of 1980, Pub. L. No. 96-464, § 12, 94 Stat. 2060, 2067, 16 U. S. C. 1463a [(1976 ed., Supp. V)] (Rules proposed by the Secretary of Commerce may be disapproved by concurrent resolution).

"41. Act of December 17, 1980, Pub. L. No. 96-539, § 4, 94 Stat. 3194, 3195, 7 U. S. C. 136w [(1976 ed., Supp. V)] (Rules or regulations promulgated by the Administrator of the Environmental [1011] Protection Agency under the Federal Insecticide, Fungicide and Rodenticide Act may be disapproved by concurrent resolution).

"42. Omnibus Budget Reconciliation Act of 1981, Pub. L. No. 97-35, §§ 533(a)(2), 1107(d), 1142, 1183(a)(2), 1207, 95 Stat. 357, 453, 626, 654, 659, 695, 718-20, 20 U. S. C. 1089, 23 U. S. C. 402(j), 45 U. S. C. 761, 767, 564(c)(3), 15 U. S. C. 2083, 1276, 1204 [(1976 ed., Supp. V)] (Secretary of Education's schedule of expected family contributions for Pell Grant recipients may be disapproved by resolution of either House;) (rules promulgated by Secretary of Transportation for programs to reduce accidents, injuries and deaths may be disapproved by resolution of either House;) (Secretary of Transportation's plan for the sale of government's common stock in rail system may be disapproved by concurrent resolution;) (Secretary of Transportation's approval of freight transfer agreements may be disapproved by resolution of either House;) (amendments to Amtrak's Route and Service Criteria may be disapproved by resolution of either House;) (Consumer Product Safety Commission regulations may be disapproved by concurrent resolution of both Houses, or by concurrent resolution of disapproval by either House if such resolution is not disapproved by the other House).

"F.

"MISCELLANEOUS

"43. Federal Civil Defense Act of 1950, Pub. L. No. 81-920, § 201, 64 Stat. 1245, 1248, [as amended,] 50 app. U. S. C. 2281(g) [(1976 ed., Supp. V)] (Interstate civil defense compacts may be disapproved by concurrent resolution).

"44. National Aeronautics and Space Act of 1958, Pub. L. No. 85-568, § [302(c)], 72 Stat. 426, 433, 42 U. S. C. 2453 (President's transfer to National Air and Space Administration of functions of other departments and agencies may be disapproved by concurrent resolution).

[1012] "45. Federal Pay Comparability Act of 1970, Pub. L. No. 91-656, § 3, 84 Stat. 1946, 1949, 5 U. S. C. 5305 (President's alternative pay plan may be disapproved by resolution of either House).

"46. Act of October 19, 1973, Pub. L. No. 93-134, § 5, 87 Stat. 466, 468, 25 U. S. C. 1405 (Plan for use and distribution of funds paid in satisfaction of judgment of Indian Claims Commission or Court of Claims may be disapproved by resolution of either House).

"47. Menominee Restoration Act, Pub. L. No. 93-197, § 6, 87 Stat. 770, 773 (1973), 25 U. S. C. 903d(b) (Plan by Secretary of the Interior for assumption of the assets [of] the Menominee Indian corporation may be disapproved by resolution of either House).

"48. District of Columbia Self-Government and Governmental Reorganization Act, Pub. L. No. 93-198, §§ 303, 602(c)(1) and (2), 87 Stat. 774, 784, 814 (1973) (District of Columbia Charter amendments ratified by electors must be approved by concurrent resolution;) (acts of District of Columbia Council may be disapproved by concurrent resolution;) (acts of District of Columbia Council under certain titles of D. C. Code may be disapproved by resolution of either House).

"49. Act of December 31, 1975, Pub. L. No. 94-200, § 102, 89 Stat. 1124, 12 U. S. C. 461 note (Federal Reserve System Board of Governors may not eliminate or reduce interest rate differentials between banks insured by Federal Deposit Insurance Corporation and associations insured by Federal Savings and Loan Insurance Corporations without concurrent resolution of approval).

"50. Veterans' Education and Employment Assistance Act of 1976, Pub. L. No. 94-502, § 408, 90 Stat. 2383, 2397-98, 38 U. S. C. 1621 note (President's recommendation for continued enrollment period in Armed Forces educational assistance program may be disapproved by resolution of either House).

[1013] "51. Federal Land Policy and Management Act of 1976, Pub. L. No. 94-579, §§ 203(c), 204(c)(1), 90 Stat. 2743, 2750, 2752, 43 U. S. C. 1713(c), 1714 (Sale of public lands in excess of two thousand five hundred acres and withdrawal of public lands aggregating five thousand acres or more may be disapproved by concurrent resolution).

"52. Emergency Unemployment Compensation Extension Act of 1977, Pub. L. No. 95-19, § [401(a)] 91 Stat. 39, 45, 2 U. S. C. 359 [(1976 ed., Supp. V)] (President's recommendations regarding rates of salary payment may be disapproved by resolution of either House).

"53. Civil Service Reform Act of 1978, Pub. L. No. 95-454, § 415, 92 Stat. 1111, 1179, 5 U. S. C. 3131 note [(1976 ed., Supp. V)] (Continuation of Senior Executive Service may be disapproved by concurrent resolution).

"54. Full Employment and Balanced Growth Act of 1978, Pub. L. No. 95-523, § 304(b), 92 Stat. 1887, 1906, 31 U. S. C. 1322 [(1976 ed., Supp. V)] (Presidential timetable for reducing unemployment may be superseded by concurrent resolution).

"55. District of Columbia Retirement Reform Act, Pub. L. No. 96-122, § 164, 93 Stat. 866, 891-92 (1979) (Required reports to Congress on the District of Columbia retirement program may be rejected by resolution of either House).

"56. Act of August 29, 1980, Pub. L. No. 96-332, § 2, 94 Stat. 1057, 1058, 16 U. S. C. 1432 [(1976 ed., Supp. V)] (Designation of marine sanctuary by the Secretary of Commerce may be disapproved by concurrent resolution)."

JUSTICE REHNQUIST, with whom JUSTICE WHITE joins, dissenting.

A severability clause creates a presumption that Congress intended the valid portion of the statute to remain in force when one part is found to be invalid. Carter v. Carter Coal Co., 298 U. S. 238, 312 (1936); Champlin Refining Co. v. Corporation Comm'n of Oklahoma, 286 U. S. 210, 235 [1014] (1932). A severability clause does not, however, conclusively resolve the issue. "[T]he determination, in the end, is reached by" asking "[w]hat was the intent of the lawmakers," Carter, supra, at 312, and "will rarely turn on the presence or absence of such a clause." United States v. Jackson, 390 U. S. 570, 585, n. 27 (1968). Because I believe that Congress did not intend the one-House veto provision of § 244(c)(2) to be severable, I dissent.

Section 244(c)(2) is an exception to the general rule that an alien's deportation shall be suspended when the Attorney General finds that statutory criteria are met. It is severable only if Congress would have intended to permit the Attorney General to suspend deportations without it. This Court has held several times over the years that exceptions such as this are not severable because

"by rejecting the exceptions intended by the legislature. . . the statute is made to enact what confessedly the legislature never meant. It confers upon the statute a positive operation beyond the legislative intent, and beyond what anyone can say it would have enacted in view of the illegality of the exceptions." Spraigue v. Thompson, 118 U. S. 90, 95 (1886).

By severing § 244(c)(2), the Court permits suspension of deportation in a class of cases where Congress never stated that suspension was appropriate. I do not believe we should expand the statute in this way without some clear indication that Congress intended such an expansion. As the Court said in Davis v. Wallace, 257 U. S. 478, 484-485 (1922):

"Where an excepting provision in a statute is found unconstitutional, courts very generally hold that this does not work an enlargement of the scope or operation of other provisions with which that provision was enacted and which was intended to qualify or restrain. The reasoning on which the decisions proceed is illustrated in State ex rel. McNeal v. Dombaugh, 20 Ohio St. 167, 174. In dealing with a contention that a statute [1015] containing an unconstitutional provision should be construed as if the remainder stood alone, the court there said: `This would be to mutilate the section and garble its meaning. The legislative intention must not be confounded with their power to carry that intention into effect. To refuse to give force and vitality to a provision of law is one thing, and to refuse to read it is a very different thing. It is by a mere figure of speech that we say an unconstitutional provision of a statute is "stricken out." For all the purposes of construction it is to be regarded as part of the act. The meaning of the legislature must be gathered from all that they have said, as well from that which is ineffectual for want of power, as from that which is authorized by law.'

"Here the excepting provision was in the statute when it was enacted, and there can be no doubt that the legislature intended that the meaning of the other provisions should be taken as restricted accordingly. Only with that restricted meaning did they receive the legislative sanction which was essential to make them part of the statute law of the State; and no other authority is competent to give them a larger application."

See also Frost v. Corporation Comm'n of Oklahoma, 278 U. S. 515, 525 (1929).

The Court finds that the legislative history of § 244 shows that Congress intended § 244(c)(2) to be severable because Congress wanted to relieve itself of the burden of private bills. But the history elucidated by the Court shows that Congress was unwilling to give the Executive Branch permission to suspend deportation on its own. Over the years, Congress consistently rejected requests from the Executive for complete discretion in this area. Congress always insisted on retaining ultimate control, whether by concurrent resolution, as in the 1948 Act, or by one-House veto, as in the present Act. Congress has never indicated that it would be willing to permit suspensions of deportation unless it could retain some sort of veto.

[1016] It is doubtless true that Congress has the power to provide for suspensions of deportation without a one-House veto. But the Court has failed to identify any evidence that Congress intended to exercise that power. On the contrary, Congress' continued insistence on retaining control of the suspension process indicates that it has never been disposed to give the Executive Branch a free hand. By severing § 244(c)(2) the Court has " `confounded' " Congress' " `intention' " to permit suspensions of deportation " `with their power to carry that intention into effect.' " Davis, supra, at 484, quoting State ex rel. McNeal v. Dombaugh, 20 Ohio St. 167, 174 (1870).

Because I do not believe that § 244(c)(2) is severable, I would reverse the judgment of the Court of Appeals.

[1] Together with No. 80-2170, United States House of Representatives v. Immigration and Naturalization Service et al., and No. 80-2171, United States Senate v. Immigration and Naturalization Service et al., on certiorari to the same court.

[2] Antonin Scalia, Richard B. Smith, and David Ryrie Brink filed a brief for the American Bar Association as amicus curiae urging affirmance.

[3] Congress delegated the major responsibilities for enforcement of the Immigration and Nationality Act to the Attorney General. 8 U. S. C. § 1103(a). The Attorney General discharges his responsibilities through the Immigration and Naturalization Service, a division of the Department of Justice. Ibid.

[4] In constitutional terms, "veto" is used to describe the President's power under Art. I, § 7, of the Constitution. See Black's Law Dictionary 1403 (5th ed. 1979). It appears, however, that congressional devices of the type authorized by § 244(c)(2) have come to be commonly referred to as a "veto." See, e. g., Martin, The Legislative Veto and the Responsible Exercise of Congressional Power, 68 Va. L. Rev. 253 (1982); Miller & Knapp, The Congressional Veto: Preserving the Constitutional Framework, 52 Ind. L. J. 367 (1977). We refer to the congressional "resolution" authorized by § 244(c)(2) as a "one-House veto" of the Attorney General's decision to allow a particular deportable alien to remain in the United States.

[5] It is not at all clear whether the House generally, or Subcommittee Chairman Eilberg in particular, correctly understood the relationship between H. Res. 926 and the Attorney General's decision to suspend Chadha's deportation. Exactly one year previous to the House veto of the Attorney General's decision in this case, Representative Eilberg introduced a similar resolution disapproving the Attorney General's suspension of deportation in the case of six other aliens. H. Res. 1518, 93d Cong., 2d Sess. (1974). The following colloquy occurred on the floor of the House:

"Mr. WYLIE. Mr. Speaker, further reserving the right to object, is this procedure to expedite the ongoing operations of the Department of Justice, as far as these people are concerned. Is it in any way contrary to whatever action the Attorney General has taken on the question of deportation; does the gentleman know?

"Mr. EILBERG. Mr. Speaker, the answer is no to the gentleman's final question. These aliens have been found to be deportable and the Special Inquiry Officer's decision denying suspension of deportation has been reversed by the Board of Immigration Appeals. We are complying with the law since all of these decisions have been referred to us for approval or disapproval, and there are hundreds of cases in this category. In these six cases however, we believe it would be grossly improper to allow these people to acquire the status of permanent resident aliens.

"Mr. WYLIE. In other words, the gentleman has been working with the Attorney General's office?

"Mr. EILBERG. Yes.

"Mr. WYLIE. This bill then is in fact a confirmation of what the Attorney General intends to do?

"Mr. EILBERG. The gentleman is correct insofar as it relates to the determination of deportability which has been made by the Department of Justice in each of these cases.

"Mr. WYLIE. Mr. Speaker, I withdraw my reservation of objection." 120 Cong. Rec. 41412 (1974).

Clearly, this was an obfuscation of the effect of a veto under § 244(c)(2). Such a veto in no way constitutes "a confirmation of what the Attorney General intends to do." To the contrary, such a resolution was meant to overrule and set aside, or "veto," the Attorney General's determination that, in a particular case, cancellation of deportation would be appropriate under the standards set forth in § 244(a)(1).

[6] Nine Members of the House of Representatives disagree with the position taken in the briefs filed by the Senate and the House of Representatives and have filed a brief amici curiae urging that the decision of the Court of Appeals be affirmed in this case.

[7] The Senate and House authorized intervention in this case, S. Res. 40 and H. R. Res. 49, 97th Cong., 1st Sess. (1981), and, on February 3, 1981, filed motions to intervene and petitioned for rehearing. The Court of Appeals granted the motions to intervene. Both Houses are therefore proper "parties" within the meaning of that term in 28 U. S. C. § 1254(1). See Batterton v. Francis, 432 U. S. 416, 424, n. 7 (1977).

[8] In addition to meeting the statutory requisites of § 1252, of course, an appeal must present a justiciable case or controversy under Art. III. Such a controversy clearly exists in No. 80-1832, as in the other two cases, because of the presence of the two Houses of Congress as adverse parties. See infra, at 939; see also Director, OWCP v. Perini North River Associates, 459 U. S. 297, 302-305 (1982).

[9] In this case we deem it appropriate to address questions of severability first. But see Buckley v. Valeo, 424 U. S. 1, 108-109 (1976); United States v. Jackson, 390 U. S. 570, 585 (1968).

[10] Without the provision for one-House veto, Congress would presumably retain the power, during the time allotted in § 244(c)(2), to enact a law, in accordance with the requirements of Art. I of the Constitution, mandating a particular alien's deportation, unless, of course, other constitutional principles place substantive limitations on such action. Cf. Attorney General Jackson's attack on H. R. 9766, 76th Cong., 3d Sess. (1940), a bill to require the Attorney General to deport an individual alien. The Attorney General called the bill "an historical departure from an unbroken American practice and tradition. It would be the first time that an act of Congress singled out a named individual for deportation." S. Rep. No. 2031, 76th Cong., 3d Sess., pt. 1, p. 9 (1940) (reprinting Jackson's letter of June 18, 1940). See n. 17, infra.

[11] Without the one-House veto, § 244 resembles the "report and wait" provision approved by the Court in Sibbach v. Wilson & Co., 312 U. S. 1 (1941). The statute examined in Sibbach provided that the newly promulgated Federal Rules of Civil Procedure "shall not take effect until they shall have been reported to Congress by the Attorney General at the beginning of a regular session thereof and until after the close of such session." Act of June 19, 1934, ch. 651, § 2, 48 Stat. 1064. This statute did not provide that Congress could unilaterally veto the Federal Rules. Rather, it gave Congress the opportunity to review the Rules before they became effective and to pass legislation barring their effectiveness if the Rules were found objectionable. This technique was used by Congress when it acted in 1973 to stay, and ultimately to revise, the proposed Rules of Evidence. Compare Act of Mar. 30, 1973, Pub. L. 93-12, 87 Stat. 9, with Act of Jan. 2, 1975, Pub. L. 93-595, 88 Stat. 1926.

[12] Depending on how the INS interprets its statutory duty under § 244 apart from the challenged portion of § 244(c)(2), Chadha's status may be retroactively adjusted to that of a permanent resident as of December 19, 1975 — the last session in which Congress could have attempted to stop the suspension of Chadha's deportation from ripening into cancellation of deportation. See 8 U. S. C. § 1254(d). In that event, Chadha's 5-year waiting period to become a citizen under § 316(a) of the Act, 8 U. S. C. § 1427(a), would have elapsed.

[13] Under the Third Circuit's reasoning, judicial review under § 106(a) would not extend to the constitutionality of § 244(c)(2) because that issue could not have been tested during the administrative deportation proceedings conducted under § 242(b). The facts in Dastmalchi are distinguishable, however. In Dastmalchi, Iranian aliens who had entered the United States on nonimmigrant student visas challenged a regulation that required them to report to the District Director of the INS during the Iranian hostage crisis. The aliens reported and were ordered deported after a § 242(b) proceeding. The aliens in Dastmalchi could have been deported irrespective of the challenged regulation. Here, in contrast, Chadha's deportation would have been canceled but for § 244(c)(2).

[14] A relevant parallel can be found in our recent decision in Bob Jones University v. United States, 461 U. S. 574 (1983). There, the United States agreed with Bob Jones University and Goldsboro Christian Schools that certain Revenue Rulings denying tax-exempt status to schools that discriminated on the basis of race were invalid. Despite its agreement with the schools, however, the United States was complying with a court order enjoining it from granting tax-exempt status to any school that discriminated on the basis of race. Even though the Government largely agreed with the opposing party on the merits of the controversy, we found an adequate basis for jurisdiction in the fact that the Government intended to enforce the challenged law against that party. See id., at 585, n. 9.

[15] The suggestion is made that § 244(c)(2) is somehow immunized from constitutional scrutiny because the Act containing § 244(c)(2) was passed by Congress and approved by the President. Marbury v. Madison, 1 Cranch 137 (1803), resolved that question. The assent of the Executive to a bill which contains a provision contrary to the Constitution does not shield it from judicial review. See Smith v. Maryland, 442 U. S. 735, 740, n. 5 (1979); National League of Cities v. Usery, 426 U. S. 833, 841, n. 12 (1976); Buckley v. Valeo, 424 U. S. 1 (1976); Myers v. United States, 272 U. S. 52 (1926). See also n. 22, infra. In any event, 11 Presidents, from Mr. Wilson through Mr. Reagan, who have been presented with this issue have gone on record at some point to challenge congressional vetoes as unconstitutional. See Henry, The Legislative Veto: In Search of Constitutional Limits, 16 Harv. J. Legis. 735, 737-738, n. 7 (1979) (collecting citations to Presidential statements). Perhaps the earliest Executive expression on the constitutionality of the congressional veto is found in Attorney General William D. Mitchell's opinion of January 24, 1933, to President Hoover. 37 Op. Atty. Gen. 56. Furthermore, it is not uncommon for Presidents to approve legislation containing parts which are objectionable on constitutional grounds. For example, after President Roosevelt signed the Lend-Lease Act of 1941, Attorney General Jackson released a memorandum explaining the President's view that the provision allowing the Act's authorization to be terminated by concurrent resolution was unconstitutional. Jackson, A Presidential Legal Opinion, 66 Harv. L. Rev. 1353 (1953).

[16] The widespread approval of the delegates was commented on by Joseph Story:

"In the convention there does not seem to have been much diversity of opinion on the subject of the propriety of giving to the president a negative on the laws. The principal points of discussion seem to have been, whether the negative should be absolute, or qualified; and if the latter, by what number of each house the bill should subsequently be passed, in order to become a law; and whether the negative should in either case be exclusively vested in the president alone, or in him jointly with some other department of the government." 1 J. Story, Commentaries on the Constitution of the United States 611 (3d ed. 1858).

See 1 M. Farrand, The Records of the Federal Convention of 1787, pp. 21, 97-104, 138-140 (1911) (hereinafter Farrand); id., at 73-80, 181, 298, 301-305.

[17] The Great Compromise was considered so important by the Framers that they inserted a special provision to ensure that it could not be altered, even by constitutional amendment, except with the consent of the states affected. See U. S. Const., Art V.

[18] Congress protests that affirming the Court of Appeals in these cases will sanction "lawmaking by the Attorney General. . . . Why is the Attorney General exempt from submitting his proposed changes in the law to the full bicameral process?" Brief for Petitioner in No. 80-2170, p. 40. To be sure, some administrative agency action — rulemaking, for example — may resemble "lawmaking." See 5 U. S. C. § 551(4), which defines an agency's "rule" as "the whole or part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy . . . ." This Court has referred to agency activity as being "quasi-legislative" in character. Humphrey's Executor v. United States, 295 U. S. 602, 628 (1935). Clearly, however, "[i]n the framework of our Constitution, the President's power to see that the laws are faithfully executed refutes the idea that he is to be a lawmaker." Youngstown Sheet & Tube Co. v. Sawyer, 343 U. S. 579, 587 (1952). See Buckley v. Valeo, 424 U. S., at 123. When the Attorney General performs his duties pursuant to § 244, he does not exercise "legislative" power. See Ernst & Ernst v. Hochfelder, 425 U. S. 185, 213-214 (1976). The bicameral process is not necessary as a check on the Executive's administration of the laws because his administrative activity cannot reach beyond the limits of the statute that created it — a statute duly enacted pursuant to Art. I, §§ 1, 7. The constitutionality of the Attorney General's execution of the authority delegated to him by § 244 involves only a question of delegation doctrine. The courts, when a case or controversy arises, can always "ascertain whether the will of Congress has been obeyed," Yakus v. United States, 321 U. S. 414, 425 (1944), and can enforce adherence to statutory standards. See Youngstown Sheet & Tube Co. v. Sawyer, supra, at 585; Ethyl Corp. v. EPA, 176 U. S. App. D. C. 373, 440, 541 F. 2d 1, 68 (enbanc) (separate statement of Leventhal, J.), cert. denied, 426 U. S. 941 (1976); L. Jaffe, Judicial Control of Administrative Action 320 (1965). It is clear, therefore, that the Attorney General acts in his presumptively Art. II capacity when he administers the Immigration and Nationality Act. Executive action under legislatively delegated authority that might resemble "legislative" action in some respects is not subject to the approval of both Houses of Congress and the President for the reason that the Constitution does not so require. That kind of Executive action is always subject to check by the terms of the legislation that authorized it; and if that authority is exceeded it is open to judicial review as well as the power of Congress to modify or revoke the authority entirely. A one-House veto is clearly legislative in both character and effect and is not so checked; the need for the check provided by Art. I, §§ 1, 7, is therefore clear. Congress' authority to delegate portions of its power to administrative agencies provides no support for the argument that Congress can constitutionally control administration of the laws by way of a congressional veto.

[19] We express no opinion as to whether such legislation would violate any constitutional provision. See n. 8, supra.

[20] During the Convention of 1787, the application of the President's veto to repeals of statutes was addressed, and the Framers were apparently content with Madison's comment that "[a]s to the difficulty of repeals, it was probable that in doubtful cases the policy would soon take place of limiting the duration of laws as to require renewal instead of repeal." 2 Farrand 587. See Ginnane, The Control of Federal Administration by Congressional Resolutions and Committees, 66 Harv. L. Rev. 569, 587-599 (1953). There is no provision allowing Congress to repeal or amend laws by other than legislative means pursuant to Art. I.

[21] This does not mean that Congress is required to capitulate to "the accretion of policy control by forces outside its chambers." Javits & Klein, Congressional Oversight and the Legislative Veto: A Constitutional Analysis, 52 N. Y. U. L. Rev. 455, 462 (1977). The Constitution provides Congress with abundant means to oversee and control its administrative creatures. Beyond the obvious fact that Congress ultimately controls administrative agencies in the legislation that creates them, other means of control, such as durational limits on authorizations and formal reporting requirements, lie well within Congress' constitutional power. See id., at 460-461; Kaiser, Congressional Action to Overturn Agency Rules: Alternatives to the "Legislative Veto," 32 Ad. L. Rev. 667 (1980). See also n. 9, supra.

[22] See also U. S. Const., Art. II, § 1, and Amdt. 12.

[23] An exception from the Presentment Clauses was ratified in Hollingsworth v. Virginia, 3 Dall. 378 (1798). There the Court held Presidential approval was unnecessary for a proposed constitutional amendment which had passed both Houses of Congress by the requisite two-thirds majority. See U. S. Const., Art. V.

One might also include another "exception" to the rule that congressional action having the force of law be subject to the bicameral requirement and the Presentment Clauses. Each House has the power to act alone in determining specified internal matters. Art. I, § 7, cls. 2, 3, and § 5, cl. 2. However, this "exception" only empowers Congress to bind itself and is noteworthy only insofar as it further indicates the Framers' intent that Congress not act in any legally binding manner outside a closely circumscribed legislative arena, except in specific and enumerated instances.

Although the bicameral check was not provided for in any of these provisions for independent congressional action, precautionary alternative checks are evident. For example, Art. II, § 2, requires that two-thirds of the Senators present concur in the Senate's consent to a treaty, rather than the simple majority required for passage of legislation. See The Federalist No. 64 (J. Jay); The Federalist No. 66 (A. Hamilton); The Federalist No. 75 (A. Hamilton). Similarly, the Framers adopted an alternative protection, in the stead of Presidential veto and bicameralism, by requiring the concurrence of two-thirds of the Senators present for a conviction of impeachment. Art. I, § 3. We also note that the Court's holding in Hollingsworth, supra, that a resolution proposing an amendment to the Constitution need not be presented to the President, is subject to two alternative protections. First, a constitutional amendment must command the votes of two-thirds of each House. Second, three-fourths of the states must ratify any amendment.

[24] JUSTICE POWELL's position is that the one-House veto in this case is a judicial act and therefore unconstitutional as beyond the authority vested in Congress by the Constitution. We agree that there is a sense in which one-House action pursuant to § 244(c)(2) has a judicial cast, since it purports to "review" Executive action. In this case, for example, the sponsor of the resolution vetoing the suspension of Chadha's deportation argued that Chadha "did not meet [the] statutory requirements" for suspension of deportation. Supra, at 926. To be sure, it is normally up to the courts to decide whether an agency has complied with its statutory mandate. See n. 16, supra. But the attempted analogy between judicial action and the one-House veto is less than perfect. Federal courts do not enjoy a roving mandate to correct alleged excesses of administrative agencies; we are limited by Art. III to hearing cases and controversies and no justiciable case or controversy was presented by the Attorney General's decision to allow Chadha to remain in this country. We are aware of no decision, and JUSTICE POWELL has cited none, where a federal court has reviewed a decision of the Attorney General suspending deportation of an alien pursuant to the standards set out in § 244(a)(1). This is not surprising, given that no party to such action has either the motivation or the right to appeal from it. As JUSTICE WHITE correctly notes, post, at 1001-1002, "the courts have not been given the authority to review whether an alien should be given permanent status; review is limited to whether the Attorney General has properly applied the statutory standards for" denying a request for suspension of deportation. Foti v. INS, 375 U. S. 217 (1963), relied on by JUSTICE POWELL, addressed only "whether a refusal by the Attorney General to grant a suspension of deportation is one of those `final orders of deportation' of which direct review by Courts of Appeals is authorized under § 106(a) of the Act." Id., at 221. Thus, JUSTICE POWELL's statement that the one-House veto in this case is "clearly adjudicatory," post, at 964, simply is not supported by his accompanying assertion that the House has "assumed a function ordinarily entrusted to the federal courts." Post, at 965. We are satisfied that the one-House veto is legislative in purpose and effect and subject to the procedures set out in Art. I.

[25] Neither can we accept the suggestion that the one-House veto provision in § 244(c)(2) either removes or modifies the bicameralism and presentation requirements for the enactment of future legislation affecting aliens. See Atkins v. United States, 214 Ct. Cl. 186, 250-251, 556 F. 2d 1028, 1063-1064 (1977), cert. denied, 434 U. S. 1009 (1978); Brief for Petitioner in No. 80-2170, p. 40. The explicit prescription for legislative action contained in Art. I cannot be amended by legislation. See n. 13, supra.

JUSTICE WHITE suggests that the Attorney General's action under § 244(c)(1) suspending deportation is equivalent to a proposal for legislation and that because congressional approval is indicated "by the failure to veto, the one-House veto satisfies the requirement of bicameral approval." Post, at 997. However, as the Court of Appeals noted, that approach "would analogize the effect of the one house disapproval to the failure of one house to vote affirmatively on a private bill." 634 F. 2d 408, 435 (1980). Even if it were clear that Congress entertained such an arcane theory when it enacted § 244(c)(2), which JUSTICE WHITE does not suggest, this would amount to nothing less than an amending of Art. I. The legislative steps outlined in Art. I are not empty formalities; they were designed to assure that both Houses of Congress and the President participate in the exercise of lawmaking authority. This does not mean that legislation must always be preceded by debate; on the contrary, we have said that it is not necessary for a legislative body to "articulate its reasons for enacting a statute." United States Railroad Retirement Board v. Fritz, 449 U. S. 166, 179 (1980). But the steps required by Art. I, §§ 1, 7, make certain that there is an opportunity for deliberation and debate. To allow Congress to evade the strictures of the Constitution and in effect enact Executive proposals into law by mere silence cannot be squared with Art. I.

[26] As JUSTICE WHITE's dissenting opinion explains, the legislative veto has been included in a wide variety of statutes, ranging from bills for executive reorganization to the War Powers Resolution. See post, at 968-972. Whether the veto complies with the Presentment Clauses may well turn on the particular context in which it is exercised, and I would be hesitant to conclude that every veto is unconstitutional on the basis of the unusual example presented by this litigation.

[27] See Martin, The Legislative Veto and the Responsible Exercise of Congressional Power, 68 Va. L. Rev. 253 (1982); Consumer Energy Council of America v. FERC, 218 U. S. App. D. C. 34, 84, 673 F. 2d 425, 475 (1982).

[28] Jefferson later questioned the degree to which the Constitution insulates the judiciary. See D. Malone, Jefferson the President: Second Term, 1805-1809, pp. 304-305 (1974). In response to Chief Justice Marshall's rulings during Aaron Burr's trial, Jefferson stated that the judiciary had favored Burr — whom Jefferson viewed as clearly guilty of treason — at the expense of the country. He predicted that the people " `will see then and amend the error in our Constitution, which makes any branch independent of the nation.' " Id., at 305 (quoting Jefferson's letter to William Giles). The very controversy that attended Burr's trial, however, demonstrates the wisdom in providing a neutral forum, removed from political pressure, for the determination of one person's rights.

[29] The House and the Senate argue that the legislative veto does not prevent the executive from exercising its constitutionally assigned function. Even assuming this argument is correct, it does not address the concern that the Congress is exercising unchecked judicial power at the expense of individual liberties. It was precisely to prevent such arbitrary action that the Framers adopted the doctrine of separation of powers. See, e. g., Myers v. United States, 272 U. S. 52, 293 (1926) (Brandeis, J., dissenting).

[30] The Immigration and Naturalization Service, a division of the Department of Justice, administers the Immigration and Nationality Act on behalf of the Attorney General, who has primary responsiblity for the Act's enforcement. See 8 U. S. C. § 1103. The Act establishes a detailed administrative procedure for determining when a specific person is to be deported, see § 1252(b), and provides for judicial review of this decision, see § 1105a; Foti v. INS, 375 U. S. 217 (1963).

[31] Normally the House would have distributed the resolution before acting on it, see 121 Cong. Rec. 40800 (1975), but the statute providing for the legislative veto limits the time in which Congress may veto the Service's determination that deportation should be suspended. See 8 U. S. C. § 1254(c)(2). In this case Congress had Chadha's report before it for approximately a year and a half, but failed to act on it until three days before the end of the limitations period. Accordingly, it was required to abandon its normal procedures for considering resolutions, thereby increasing the danger of arbitrary and ill-considered action.

[32] The Court concludes that Congress' action was legislative in character because each branch "presumptively act[s] within its assigned sphere." Ante, at 952. The Court's presumption provides a useful starting point, but does not conclude the inquiry. Nor does the fact that the House's action alters an individual's legal status indicate, as the Court reasons, see ante, at 952-954, that the action is legislative rather than adjudicative in nature. In determining whether one branch unconstitutionally has assumed a power central to another branch, the traditional characterization of the assumed power as legislative, executive, or judicial may provide some guidance. See Springer v. Philippine Islands, 277 U. S. 189, 203 (1928). But reasonable minds may disagree over the character of an act, and the more helpful inquiry, in my view, is whether the act in question raises the dangers the Framers sought to avoid.

[33] The Court reasons in response to this argument that the one-House veto exercised in this case was not judicial in nature because the decision of the Immigration and Naturalization Service did not present a justiciable issue that could have been reviewed by a court on appeal. See ante, at 957, n. 22. The Court notes that since the administrative agency decided the case in favor of Chadha, there was no aggrieved party who could appeal. Reliance by the Court on this fact misses the point. Even if review of the particular decision to suspend deportation is not committed to the courts, the House of Representatives assumed a function that generally is entrusted to an impartial tribunual. In my view, the Legislative Branch in effect acted as an appellate court by overruling the Service's application of established law to Chadha. And unlike a court or an administrative agency, it did not provide Chadha with the right to counsel or a hearing before acting. Although the parallel is not entirely complete, the effect on Chadha's personal rights would not have been different in principle had he been acquitted of a federal crime and thereafter found by one House of Congress to have been guilty.

[34] When Congress grants particular individuals relief or benefits under its spending power, the danger of oppressive action that the separation of powers was designed to avoid is not implicated. Similarly, Congress may authorize the admission of individual aliens by special Acts, but it does not follow that Congress unilaterally may make a judgment that a particular alien has no legal right to remain in this country. See Memorandum Concerning H. R. 9766 Entitled "An Act to Direct the Deportation of Harry Renton Bridges," reprinted in S. Rep. No. 2031, 76th Cong., 3d Sess., pt. 1, p. 8 (1940). As Attorney General Robert Jackson remarked, such a practice "would be an historical departure from an unbroken American practice and tradition." Id., at 9.

[35] We have recognized that independent regulatory agencies and departments of the Executive Branch often exercise authority that is "judicial in nature." Buckley v. Valeo, 424 U. S. 1, 140-141 (1976). This function, however, forms part of the agencies' execution of public law and is subject to the procedural safeguards, including judicial review, provided by the Administrative Procedure Act, see 5 U. S. C. § 551 et seq. See also n. 5, supra.

[36] AS JUSTICE POWELL observes in his separate opinion, "the respect due [Congress'] judgment as a coordinate branch of Government cautions that our holding should be no more extensive than necessary to decide these cases." Ante, at 960. The Court of Appeals for the Ninth Circuit also recognized that "we are not here faced with a situation in which the unforeseeability of future circumstances or the broad scope and complexity of the subject matter of an agency's rulemaking authority preclude the articulation of specific criteria in the governing statute itself. Such factors might present considerations different from those we find here, both as to the question of separation of powers and the legitimacy of the unicameral device." 634 F. 2d 408, 433 (1980) (footnote omitted).

[37] A selected list and brief description of these provisions is appended to this opinion.

[38] Watson, Congress Steps Out: A Look at Congressional Control of the Executive, 63 Calif. L. Rev. 983, 1089-1090 (1975) (listing statutes).

[39] The Roosevelt administration submitted proposed legislation containing veto provisions and defended their constitutionality. See, e. g., General Counsel to the Office of Price Administration, Statement on Constitutionality of Concurrent Resolution Provision of Proposed Price Control Bill (H. R. 5479), reprinted in Price-Control Bill: Hearings on H. R. 5479 before the House Committee on Banking and Currency, 77th Cong., 1st Sess., pt. 1, p. 983 (1941).

[40] Presidential objections to the veto, until the veto by President Nixon of the War Powers Resolution, principally concerned bills authorizing Committee vetoes. As the Senate Subcommittee on Separation of Powers found in 1969, "an accommodation was reached years ago on legislative vetoes exercised by the entire Congress or by one House, [while] disputes have continued to arise over the committee form of the veto." S. Rep. No. 91-549, p. 14 (1969). Presidents Kennedy and Johnson proposed enactment of statutes with legislative veto provisions. See National Wilderness Preservation Act: Hearings on S. 4 before the Senate Committee on Interior and Insular Affairs, 88th Cong., 1st Sess., 4 (1963) (President Kennedy's proposals for withdrawal of wilderness areas); President's Message to the Congress Transmitting the Budget for Fiscal Year 1970, 5 Weekly Comp. Pres. Doc. 70, 73 (1969) (President Johnson's proposals allowing legislative veto of tax surcharge). The administration of President Kennedy submitted a memorandum supporting the constitutionality of the legislative veto. See General Counsel of the Department of Agriculture, Constitutionality of Title I of H. R. 6400, 87th Cong., 1st Session (1961), reprinted in Legislative Policy of the Bureau of the Budget: Hearing before the Subcommittee on Conservation and Credit of the House Committee on Agriculture, 89th Cong., 2d Sess., 27, 31-32 (1966). During the administration of President Johnson, the Department of Justice again defended the constitutionality of the legislative veto provision of the Reorganization Act, as contrasted with provisions for a Committee veto. See Separation of Powers: Hearings before the Subcommittee on Separation of Powers of the Senate Committee on the Judiciary, 90th Cong., 1st Sess., 206 (1967) (testimony of Frank M. Wozencraft, Assistant Attorney General for the Office of Legal Counsel).

[41] National Aeronautics and Space Act of 1958, Pub. L. 85-568, § 302, 72 Stat. 433 (space program); Atomic Energy Act Amendments of 1958, Pub. L. 85-479, § 4, 72 Stat. 277 (cooperative nuclear agreements); Trade Expansion Act of 1962, Pub. L. 87-794, § 351, 76 Stat. 899, 19 U. S. C. § 1981 (tariff recommended by International Trade Commission may be imposed by concurrent resolution of approval); Postal Revenue and Federal Salary Act of 1967, Pub. L. 90-206, § 255(i)(1), 81 Stat. 644.

[42] The Impoundment Control Act's provision for legislative review has been used extensively. Presidents have submitted hundreds of proposed budget deferrals, of which 65 have been disapproved by resolutions of the House or Senate with no protest by the Executive. See App. B to Brief for United States Senate on Reargument.

[43] The veto appears in a host of broad statutory delegations concerning energy rationing, contingency plans, strategic oil reserves, allocation of energy production materials, oil exports, and naval petroleum reserve production. Naval Petroleum Reserves Production Act of 1976, Pub. L. 94-258, § 201(3), 90 Stat. 309, 10 U. S. C. § 7422(c)(2)(C); Energy Policy and Conservation Act, Pub. L. 94-163, §§ 159, 201, 401(a), and 455, 89 Stat. 886, 890, 941, and 950, 42 U. S. C. §§ 6239 and 6261, 15 U. S. C. §§ 757 and 760a (strategic oil reserves, rationing and contingency plans, oil price controls and product allocation); Federal Nonnuclear Energy Research and Development Act of 1974, Pub. L. 93-577, § 12, 88 Stat. 1892-1893, 42 U. S. C. § 5911 (allocation of energy production materials); Act of Nov. 16, 1973, Pub. L. 93-153, § 101, 87 Stat. 582, 30 U. S. C. § 185(u) (oil exports).

[44] Congress found that under the agency's

"very broad authority to prohibit conduct which is `unfair or deceptive'. . . the FTC can regulate virtually every aspect of America's commercial life. . . . The FTC's rules are not merely narrow interpretations of a tightly drawn statute; instead, they are broad policy pronouncements which Congress has an obligation to study and review." 124 Cong. Rec. 5012 (1978) (statement by Rep. Broyhill).

A two-House legislative veto was added to constrain that broad delegation. Federal Trade Commission Improvements Act of 1980, § 21(a), 94 Stat. 393, 15 U. S. C. § 57a-1(a) (1976 ed., Supp. V). The constitutionality of that provision is presently pending before us. United States Senate v. Federal Trade Commission, No. 82-935; United States House of Representatives v. Federal Trade Commission, No. 82-1044.

[45] While Congress could write certain statutes with greater specificity, it is unlikely that this is a realistic or even desirable substitute for the legislative veto. The controversial nature of many issues would prevent Congress from reaching agreement on many major problems if specificity were required in their enactments. Fuchs, Administrative Agencies and the Energy Problem, 47 Ind. L. J. 606, 608 (1972); Stewart, Reformation of American Administrative Law, 88 Harv. L. Rev. 1667, 1695-1696 (1975). For example, in the deportation context, the solution is not for Congress to create more refined categorizations of the deportable aliens whose status should be subject to change. In 1979, the Immigration and Naturalization Service proposed regulations setting forth factors to be considered in the exercise of discretion under numerous provisions of the Act, but not including § 244, to ensure "fair and uniform" adjudication "under appropriate discretionary criteria." 44 Fed. Reg. 36187 (1979). The proposed rule was canceled in 1981, because "[t]here is an inherent failure in any attempt to list those factors which should be considered in the exercise of discretion. It is impossible to list or foresee all of the adverse or favorable factors which may be present in a given set of circumstances." 46 Fed. Reg. 9119 (1981).

Oversight hearings and congressional investigations have their purpose, but unless Congress is to be rendered a think tank or debating society, they are no substitute for the exercise of actual authority. The "delaying" procedure approved in Sibbach v. Wilson & Co., 312 U. S. 1, 15 (1941), while satisfactory for certain measures, has its own shortcomings. Because a new law must be passed to restrain administrative action, Congress must delegate authority without the certain ability of being able to check its exercise.

Finally, the passage of corrective legislation after agency regulations take effect or Executive Branch officials have acted entails the drawbacks endemic to a retroactive response. "Post hoc substantive revision of legislation, the only available corrective mechanism in the absence of postenactment review could have serious prejudicial consequences; if Congress retroactively tampered with a price control system after prices have been set, the economy could be damaged and private rights seriously impaired; if Congress rescinded the sale of arms to a foreign country, our relations with that country would be severely strained; and if Congress reshuffled the bureaucracy after a President's reorganization proposal had taken effect, the results could be chaotic." Javits & Klein, Congressional Oversight and the Legislative Veto: A Constitutional Analysis, 52 N. Y. U. L. Rev. 455, 464 (1977) (footnote omitted).

[46] Perhaps I am wrong and the Court remains open to consider whether certain forms of the legislative veto are reconcilable with the Art. I requirements. One possibility for the Court and Congress is to accept that a resolution of disapproval cannot be given legal effect in its own right, but may serve as a guide in the interpretation of a delegation of lawmaking authority. The exercise of the veto could be read as a manifestation of legislative intent, which, unless itself contrary to the authorizing statute, serves as the definitive construction of the statute. Therefore, an agency rule vetoed by Congress would not be enforced in the courts because the veto indicates that the agency action departs from the congressional intent.

This limited role for a redefined legislative veto follows in the steps of the longstanding practice of giving some weight to subsequent legislative reaction to administrative rulemaking. The silence of Congress after consideration of a practice by the Executive may be equivalent to acquiescence and consent that the practice be continued until the power exercised be revoked. United States v. Midwest Oil Co., 236 U. S. 459, 472-473 (1915). See also Zemel v. Rusk, 381 U. S. 1, 11-12 (1965) (relying on congressional failure to repeal administration interpretation); Haig v. Agee, 453 U. S. 280 (1981) (same); Bob Jones University v. United States, 461 U. S. 574 (1983) (same); Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Curran, 456 U. S. 353, 384 (1982) (relying on failure to disturb judicial decision in later revision of law).

Reliance on subsequent legislative reaction has been limited by the fear of overturning the intent of the original Congress and the unreliability of discerning the views of a subsequent Congress. Consumer Product Safety Comm'n v. GTE Sylvania, Inc., 447 U. S. 102, 117-118 (1980); United States v. Price, 361 U. S. 304, 313 (1960). These concerns are not forceful when the original statute authorizes subsequent legislative review. The presence of the review provision constitutes an express authorization for a subsequent Congress to participate in defining the meaning of the law. Second, the disapproval resolution allows for a reliable determination of congressional intent. Without the review mechanism, uncertainty over the inferences to draw from subsequent congressional action is understandable. The refusal to pass an amendment, for example, may indicate opposition to that position but could mean that Congress believes the amendment is redundant with the statute as written. By contrast, the exercise of a legislative veto is an unmistakable indication that the agency or Executive decision at issue is disfavored. This is not to suggest that the failure to pass a veto resolution should be given any weight whatever.

[47] For commentary generally favorable to the legislative veto, see Abourezk, Congressional Veto: A Contemporary Response to Executive Encroachment on Legislative Prerogatives, 52 Ind. L. J. 323 (1977); Cooper & Cooper, The Legislative Veto and the Constitution, 30 Geo. Wash. L. Rev. 467 (1962); Dry, The Congressional Veto and the Constitutional Separation of Powers, in The Presidency in the Constitutional Order 195 (J. Bessette & J. Tulis eds. 1981); Javits & Klein, supra n. 10, at 455; Miller & Knapp, The Congressional Veto: Preserving the Constitutional Framework, 52 Ind. L. J. 367 (1977); Nathanson, Separation of Powers and Administrative Law: Delegation, the Legislative Veto, and the "Independent" Agencies, 75 Nw. U. L. Rev. 1064 (1981); Newman & Keaton, Congress and the Faithful Execution of Laws — Should Legislators Supervise Administrators?, 41 Calif. L. Rev. 565 (1953); Pearson, Oversight: A Vital Yet Neglected Congressional Function, 23 Kan. L. Rev. 277 (1975); Rodino, Congressional Review of Executive Action, 5 Seton Hall L. Rev. 489 (1974); Schwartz, Legislative Veto and the Constitution — A Reexamination, 46 Geo. Wash. L. Rev. 351 (1978); Schwartz, Legislative Control of Administrative Rules and Regulations: I. The American Experience, 30 N. Y. U. L. Rev. 1031 (1955); Stewart, Constitutionality of the Legislative Veto, 13 Harv. J. Legis. 593 (1976).

For commentary generally unfavorable to the legislative veto, see J. Bolton, The Legislative Veto: Unseparating the Powers (1977); Bruff & Gellhorn, Congressional Control of Administrative Regulation: A Study of Legislative Vetoes, 90 Harv. L. Rev. 1369 (1977); Dixon, The Congressional Veto and Separation of Powers: The Executive On a Leash?, 56 N. C. L. Rev. 423 (1978); FitzGerald, Congressional Oversight or Congressional Foresight: Guidelines From the Founding Fathers, 28 Ad. L. Rev. 429 (1976); Ginnane, The Control of Federal Administration by Congressional Resolutions and Committees, 66 Harv. L. Rev. 569 (1953); Henry, The Legislative Veto: In Search of Constitutional Limits, 16 Harv. J. Legis. 735 (1979); Martin, The Legislative Veto and the Responsible Exercise of Congressional Power, 68 Va. L. Rev. 253 (1982); Scalia, The Legislative Veto: A False Remedy For System Overload, 3 Regulation 19 (Nov.-Dec. 1979); Watson, supra n. 3, at 983; Comment, Congressional Oversight of Administrative Discretion: Defining the Proper Role of the Legislative Veto, 26 Am. U. L. Rev. 1018 (1977); Note, Congressional Veto of Administrative Action: The Probable Response to a Constitutional Challenge, 1976 Duke L. J. 285; Recent Developments, The Legislative Veto in the Arms Export Control Act of 1976, 9 Law & Pol'y Int'l Bus. 1029 (1977).

[48] Compare Atkins v. United States, 214 Ct. Cl. 186, 556 F. 2d 1028 (1977) (upholding legislative veto provision in Federal Salary Act, 2 U. S. C. § 351 et seq.), cert. denied, 434 U. S. 1009 (1978), with Consumer Energy Council of America v. FERC, 218 U. S. App. D. C. 34, 673 F. 2d 425 (1982) (holding unconstitutional the legislative veto provision in the Natural Gas Policy Act of 1978, 15 U. S. C. §§ 3301-3342 (1976 ed., Supp. V)), appeals docketed, Nos. 81-2008, 81-2020, 81-2151, and 81-2171, and cert. pending, Nos. 82-177 and 82-209.

[49] See, e. g., 6 Op. Atty. Gen. 680, 683 (1854); Dept. of Justice, Memorandum re Constitutionality of Provisions in Proposed Reorganization Bills Now Pending in Congress, reprinted in S. Rep. No. 232, 81st Cong., 1st Sess., 19-20 (1949); Jackson, A Presidential Legal Opinion, 66 Harv. L. Rev. 1353 (1953); 43 Op. Atty. Gen. No. 10, p. 2 (1977).

[50] I limit my concern here to those legislative vetoes which require either one or both Houses of Congress to pass resolutions of approval or disapproval, and leave aside the questions arising from the exercise of such powers by Committees of Congress.

[51] I agree with JUSTICE REHNQUIST that Congress did not intend the one-House veto provision of § 244(c)(2) to be severable. Although the general rule is that the presence of a saving clause creates a presumption of divisibility, Champlin Refining Co. v. Corporation Comm'n of Oklahoma, 286 U. S. 210, 235 (1932), I read the saving clause contained in § 406 of the Immigration and Nationality Act as primarily pertaining to the severability of major parts of the Act from one another, not the divisibility of different provisions within a single section. Surely, Congress would want the naturalization provisions of the Act to be severable from the deportation sections. But this does not support preserving § 244 without the legislative veto any more than a saving provision would justify preserving immigration authority without quota limits.

More relevant is the fact that for 40 years Congress has insisted on retaining a voice on individual suspension cases — it has frequently rejected bills which would place final authority in the Executive Branch. It is clear that Congress believed its retention crucial. Given this history, the Court's rewriting of the Act flouts the will of Congress.

[52] The Pennsylvania Constitution required that all "bills of [a] public nature" had to be printed after being introduced and had to lie over until the following session of the legislature before adoption. Pa. Const., § 15 (1776). These printing and layover requirements applied only to "bills." At the time, measures could also be enacted as a resolve, which was allowed by the Constitution as "urgent temporary legislation" without such requirements. A. Nevins, The American States During and After the Revolution 152 (1969). Using this method, the Pennsylvania Legislature routinely evaded printing and layover requirements through adoption of resolves. Ibid.

A 1784 report of a committee of the Council of Censors, a state body responsible for periodically reviewing the state government's adherence to its Constitution, charged that the procedures for enacting legislation had been evaded though the adoption of resolves instead of bills. Report of the Committee of the Council of Censors 13 (1784). See Nevins, supra, at 190. When three years later the federal Constitutional Convention assembled in Philadelphia, the delegates were reminded, in the course of discussing the President's veto, of the dangers pointed out by the Council of Censors Report. 5 J. Elliot, Debates on the Federal Constitution 430 (1845). Furthermore, Madison, who made the motion that led to the Presentment Clause, knew of the Council of Censors Report, The Federalist No. 50, p. 319 (H. Lodge ed. 1888), and was aware of the Pennsylvania experience. See The Federalist No. 48, supra, at 311-312. We have previously recognized the relevance of the Council of Censors Report in interpreting the Constitution. See Powell v. McCormack, 395 U. S. 486, 529-530 (1969).

[53] Although the legislative veto was not a feature of congressional enactments until the 20th century, the practices of the first Congresses demonstrate that the constraints of Art. I were not envisioned as a constitutional straitjacket. The First Congress, for example, began the practice of arming its Committees with broad investigatory powers without the passage of legislation. See A. Josephy, On the Hill: A History of the American Congress 81-83 (1979). More directly pertinent is the First Congress' treatment of the Northwest Territories Ordinance of 1787. The Ordinance, initially drafted under the Articles of Confederation on July 13, 1787, was the document which governed the territory of the United States northwest of the Ohio River. The Ordinance authorized the Territories to adopt laws, subject to disapproval in Congress.

"The governor and judges, or a majority of them, shall adopt and publish in the district, such laws of the original states, criminal and civil, as may be necessary, and best suited to the circumstances of the district, and report them to Congress, from time to time; which laws shall be in force in the district until the organization of the general assembly therein, unless disapproved of by Congress; but afterwards the legislature shall have authority to alter them as they shall think fit" (emphasis added).

After the Constitution was ratified, the Ordinance was reenacted to conform to the requirements of the Constitution. Act of Aug. 7, 1789, ch. 8, 1 Stat. 50-51. Certain provisions, such as one relating to appointment of officials by Congress, were changed because of constitutional concerns, but the language allowing disapproval by Congress was retained. Subsequent provisions for territorial laws contained similar language. See, e. g., 48 U. S. C. § 1478.

Although at times Congress disapproved of territorial actions by passing legislation, see e. g., Act of Mar. 3, 1807, ch. 44, 2 Stat. 444, on at least two occasions one House of Congress passed resolutions to disapprove territorial laws, only to have the other House fail to pass the measure for reasons pertaining to the subject matter of the bills. First, on February 16, 1795, the House of Representatives passed a concurrent resolution disapproving in one sweep all but one of the laws that the Governors and judges of the Northwest Territory had passed at a legislative session on August 1, 1792. 4 Annals of Cong. 1227. The Senate, however, refused to concur. Id., at 830. See B. Bond, The Civilization of the Old Northwest 70-71 (1934). Second, on May 9, 1800, the House passed a resolution to disapprove of a Mississippi territorial law imposing a license fee on taverns. H. R. Jour., 6th Cong., 1st Sess., 706 (1826 ed.). The Senate unsuccessfully attempted to amend the resolution to strike down all laws of the Mississippi Territory enacted since June 30, 1799. 5 C. Carter, Territorial Papers of the United States — Mississippi 94-95 (1937). The histories of the Territories, the correspondence of the era, and the congressional Reports contain no indication that such resolutions disapproving of territorial laws were to be presented to the President or that the authorization for such a "congressional veto" in the Act of Aug. 7, 1789, was of doubtful constitutionality.

The practices of the First Congress are not so clear as to be dispositive of the constitutional question now before us. But it is surely significant that this body, largely composed of the same men who authored Art. I and secured ratification of the Constitution, did not view the Constitution as forbidding a precursor of the modern day legislative veto. See J. W. Hampton & Co. v. United States, 276 U. S. 394, 412 (1928) ("In this first Congress sat many members of the Constitutional Convention of 1787. This Court has repeatedly laid down the principle that a contemporaneous legislative exposition of the Constitution when the founders of our government and framers of our Constitution were actively participating in public affairs, long acquiesced in, fixes the construction to be given its provisions").

[54] "Legislative, or substantive, regulations are `issued by an agency pursuant to statutory authority and . . . implement the statute, as, for example, the proxy rules issued by the Securities and Exchange Commission. . . . Such rules have the force and effect of law.' U. S. Dept. of Justice, Attorney General's Manual on the Administrative Procedure Act 30, n. 3 (1947)." Batterton v. Francis, 432 U. S., at 425, n. 9.

Substantive agency regulations are clearly exercises of lawmaking authority; agency interpretations of their statutes are only arguably so. But as Henry Monaghan has observed: "Judicial deference to agency `interpretation' of law is simply one way of recognizing a delegation of lawmaking authority to an agency." Monaghan, Marbury and the Administrative State, 83 Colum. L. Rev. 1, 26 (1983) (emphasis deleted). See, e. g., NLRB v. Hearst Publications, Inc., 322 U. S. 111 (1944); NLRB v. Hendricks County Rural Electric Membership Corp., 454 U. S. 170 (1981).

[55] As the Court acknowledges, the "provisions of Art. I are integral parts of the constitutional design for the separation of powers." Ante, at 946. But these separation-of-powers concerns are that legislative power be exercised by Congress, executive power by the President, and judicial power by the Courts. A scheme which allows delegation of legislative power to the President and the departments under his control, but forbids a check on its exercise by Congress itself obviously denigrates the separation-of-powers concerns underlying Art. I. To be sure, the doctrine of separation of powers is also concerned with checking each branch's exercise of its characteristic authority. Section 244(c)(2) is fully consistent with the need for checks upon congressional authority, infra, at 994-996, and the legislative veto mechanism, more generally is an important check upon Executive authority, supra, at 967-974.

[56] The Court's other reasons for holding the legislative veto subject to the presentment and bicameral passage requirements require but brief discussion. First, the Court posits that the resolution of disapproval should be considered equivalent to new legislation because absent the veto authority of § 244(c)(2) neither House could, short of legislation, effectively require the Attorney General to deport an alien once the Attorney General has determined that the alien should remain in the United States. Ante, at 952-954. The statement is neither accurate nor meaningful. The Attorney General's power under the Act is only to "suspend" the order of deportation; the "suspension" does not cancel the deportation or adjust the alien's status to that of a permanent resident alien. Cancellation of deportation and adjustment of status must await favorable action by Congress. More important, the question is whether § 244(c)(2) as written is constitutional, and no law is amended or repealed by the resolution of disapproval which is, of course, expressly authorized by that section.

The Court also argues that the legislative character of the challenged action of one House is confirmed by the fact that "when the Framers intended to authorize either House of Congress to act alone and outside of its prescribed bicameral legislative role, they narrowly and precisely defined the procedure for such action." Ante, at 955. Leaving aside again the above-refuted premise that all action with a legislative character requires passage in a law, the short answer is that all of these carefully defined exceptions to the presentment and bicameralism strictures do not involve action of the Congress pursuant to a duly enacted statute. Indeed, for the most part these powers — those of impeachment, review of appointments, and treaty ratification — are not legislative powers at all. The fact that it was essential for the Constitution to stipulate that Congress has the power to impeach and try the President hardly demonstrates a limit upon Congress' authority to reserve itself a legislative veto, through statutes, over subjects within its lawmaking authority.

[57] In his opinion on the constitutionality of the legislative review provisions of the most recent reorganization statute, 5 U. S. C. § 906(a) (1982 ed.), Attorney General Bell stated that "the statement in Article I, § 7, of the procedural steps to be followed in the enactment of legislation does not exclude other forms of action by Congress. . . . The procedures prescribed in Article I § 7, for congressional action are not exclusive." 43 Op. Atty. Gen. No. 10, pp. 2-3 (1977). "[I]f the procedures provided in a given statute have no effect on the constitutional distribution of power between the legislature and the executive," then the statute is constitutional. Id., at 3. In the case of the reorganization statute, the power of the President to refuse to submit a plan, combined with the power of either House of Congress to reject a submitted plan, suffices under the standard to make the statute constitutional. Although the Attorney General sought to limit his opinion to the reorganization statute, and the Executive opposes the instant statute, I see no Art. I basis to distinguish between the two.

[58] Of course, when the authorizing legislation requires approval to be expressed by a positive vote, then the two-House veto would clearly comply with the bicameralism requirement under any analysis.

[59] The Court's doubts that Congress entertained this "arcane" theory when it enacted § 244(c)(2) disregards the fact that this is the historical basis upon which the legislative vetoes contained in the Reorganization Acts have been defended, n. 22, supra, and that the Reorganization Acts then provided the precedent articulated in support of other legislative veto provisions. See, e. g., 87 Cong. Rec. 735 (1941) (Rep. Dirksen) (citing Reorganization Act in support of proposal to include a legislative veto in Lend-Lease Act); H. R. Rep. No. 93-658, p. 42 (1973) (citing Reorganization Act as "sufficient precedent" for legislative veto provision for Impoundment Control Act).

[60] Madison emphasized that the principle of separation of powers is primarily violated "where the whole power of one department is exercised by the same hands which possess the whole power of another department." The Federalist No. 47, pp. 325-326 (J. Cooke ed. 1961). Madison noted that the oracle of the separation doctrine, Montesquieu, in writing that the legislative, executive, and judicial powers should not be united "in the same person or body of magistrates," did not mean "that these departments ought to have no partial agency in, or control over the acts of each other." Id., at 325 (emphasis in original). Indeed, according to Montesquieu, the legislature is uniquely fit to exercise an additional function: "to examine in what manner the laws that it has made have been executed." W. Gwyn, The Meaning of Separation of Powers 102 (1965).

2.4.1.2 Congressional Review Act 2.4.1.2 Congressional Review Act

5 U.S.C. § 801 – Congressional Review of Agency Rulemaking

 

(a)

(1)

(A) Before a rule can take effect, the Federal agency promulgating such rule shall submit to each House of the Congress and to the Comptroller General a report containing—

(i) a copy of the rule;

(ii) a concise general statement relating to the rule, including whether it is a major rule; and

(iii) the proposed effective date of the rule.

(B) On the date of the submission of the report under subparagraph (A), the Federal agency promulgating the rule shall submit to the Comptroller General and make available to each House of Congress—

(i) a complete copy of the cost-benefit analysis of the rule, if any;

(ii) the agency’s actions relevant to sections 603, 604, 605, 607, and 609;

(iii) the agency’s actions relevant to sections 202, 203, 204, and 205 of the Unfunded Mandates Reform Act of 1995; and

(iv) any other relevant information or requirements under any other Act and any relevant Executive orders.

(C) Upon receipt of a report submitted under subparagraph (A), each House shall provide copies of the report to the chairman and ranking member of each standing committee with jurisdiction under the rules of the House of Representatives or the Senate to report a bill to amend the provision of law under which the rule is issued.

(2)

(A) The Comptroller General shall provide a report on each major rule to the committees of jurisdiction in each House of the Congress by the end of 15 calendar days after the submission or publication date as provided in section 802(b)(2). The report of the Comptroller General shall include an assessment of the agency’s compliance with procedural steps required by paragraph (1)(B).

(B) Federal agencies shall cooperate with the Comptroller General by providing information relevant to the Comptroller General’s report under subparagraph (A).

(3) major rule relating to a report submitted under paragraph (1) shall take effect on the latest of—

(A) the later of the date occurring 60 days after the date on which—

(i) the Congress receives the report submitted under paragraph (1); or

(ii) the rule is published in the Federal Register, if so published;

(B) if the Congress passes a joint resolution of disapproval described in section 802 relating to the rule, and the President signs a veto of such resolution, the earlier date—

(i) on which either House of Congress votes and fails to override the veto of the President; or

(ii) occurring 30 session days after the date on which the Congress received the veto and objections of the President; or

(C) the date the rule would have otherwise taken effect, if not for this section (unless a joint resolution of disapproval under section 802 is enacted).

(4) Except for a major rule, a rule shall take effect as otherwise provided by law after submission to Congress under paragraph (1).

(5) Notwithstanding paragraph (3), the effective date of a rule shall not be delayed by operation of this chapter beyond the date on which either House of Congress votes to reject a joint resolution of disapproval under section 802.

 

(b)

(1)rule shall not take effect (or continue), if the Congress enacts a joint resolution of disapproval, described under section 802, of the rule.

(2)rule that does not take effect (or does not continue) under paragraph (1) may not be reissued in substantially the same form, and a new rule that is substantially the same as such a rule may not be issued, unless the reissued or new rule is specifically authorized by a law enacted after the date of the joint resolution disapproving the original rule.

 

(c)

(1) Notwithstanding any other provision of this section (except subject to paragraph (3)), a rule that would not take effect by reason of subsection (a)(3) may take effect, if the President makes a determination under paragraph (2) and submits written notice of such determination to the Congress.

(2) Paragraph (1) applies to a determination made by the President by Executive order that the rule should take effect because such rule is—

(A) necessary because of an imminent threat to health or safety or other emergency;

(B) necessary for the enforcement of criminal laws;

(C) necessary for national security; or

(D) issued pursuant to any statute implementing an international trade agreement.

(3) An exercise by the President of the authority under this subsection shall have no effect on the procedures under section 802 or the effect of a joint resolution of disapproval under this section.

(d)

(1) In addition to the opportunity for review otherwise provided under this chapter, in the case of any rule for which a report was submitted in accordance with subsection (a)(1)(A) during the period beginning on the date occurring—

(A) in the case of the Senate, 60 session days, or

(B) in the case of the House of Representatives, 60 legislative days,

before the date the Congress adjourns a session of Congress through the date on which the same or succeeding Congress first convenes its next session, section 802 shall apply to such rule in the succeeding session of Congress.

(2)

(A) In applying section 802 for purposes of such additional review, a rule described under paragraph (1) shall be treated as though—

(i) such rule were published in the Federal Register (as a rule that shall take effect) on—

(I) in the case of the Senate, the 15th session day, or

(II) in the case of the House of Representatives, the 15th legislative day, after the succeeding session of Congress first convenes; and

(ii) a report on such rule were submitted to Congress under subsection (a)(1) on such date.

(B) Nothing in this paragraph shall be construed to affect the requirement under subsection (a)(1) that a report shall be submitted to Congress before a rule can take effect.

(3)rule described under paragraph (1) shall take effect as otherwise provided by law (including other subsections of this section).

 

(e)

(1) For purposes of this subsection, section 802 shall also apply to any major rule promulgated between March 1, 1996, and the date of the enactment of this chapter.

(2) In applying section 802 for purposes of Congressional review, a rule described under paragraph (1) shall be treated as though—

(A) such rule were published in the Federal Register on the date of enactment of this chapter; and

(B) a report on such rule were submitted to Congress under subsection (a)(1) on such date.

(3) The effectiveness of a rule described under paragraph (1) shall be as otherwise provided by law, unless the rule is made of no force or effect under section 802.

 

(f) Any rule that takes effect and later is made of no force or effect by enactment of a joint resolution under section 802 shall be treated as though such rule had never taken effect.

 

(g) If the Congress does not enact a joint resolution of disapproval under section 802 respecting a rule, no court or agency may infer any intent of the Congress from any action or inaction of the Congress with regard to such rule, related statute, or joint resolution of disapproval.

 

(Added Pub. L. 104–121, title II, § 251, Mar. 29, 1996, 110 Stat. 868.)

 

5 U.S.C. § 802 – Congressional Procedure

 

(a) For purposes of this section, the term “joint resolution” means only a joint resolution introduced in the period beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress and ending 60 days thereafter (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), the matter after the resolving clause of which is as follows: “That Congress disapproves the rule submitted by the __ relating to __, and such rule shall have no force or effect.” (The blank spaces being appropriately filled in).

 

(b)

(1)joint resolution described in subsection (a) shall be referred to the committees in each House of Congress with jurisdiction.

(2)For purposes of this section, the term “submission or publication date” means the later of the date on which—

(A) the Congress receives the report submitted under section 801(a)(1); or

(B) the rule is published in the Federal Register, if so published.

 

(c) In the Senate, if the committee to which is referred a joint resolution described in subsection (a) has not reported such joint resolution (or an identical joint resolution) at the end of 20 calendar days after the submission or publication date defined under subsection (b)(2), such committee may be discharged from further consideration of such joint resolution upon a petition supported in writing by 30 Members of the Senate, and such joint resolution shall be placed on the calendar.

 

(d)

(1) In the Senate, when the committee to which a joint resolution is referred has reported, or when a committee is discharged (under subsection (c)) from further consideration of a joint resolution described in subsection (a), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of.

(2) In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion further to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order.

(3) In the Senate, immediately following the conclusion of the debate on a joint resolution described in subsection (a), and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur.

(4) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution described in subsection (a) shall be decided without debate.

 

(e) In the Senate the procedure specified in subsection (c) or (d) shall not apply to the consideration of a joint resolution respecting a rule—

(1) after the expiration of the 60 session days beginning with the applicable submission or publication date, or

(2) if the report under section 801(a)(1)(A) was submitted during the period referred to in section 801(d)(1), after the expiration of the 60 session days beginning on the 15th session day after the succeeding session of Congress first convenes.

 

(f) If, before the passage by one House of a joint resolution of that House described in subsection (a), that House receives from the other House a joint resolution described in subsection (a), then the following procedures shall apply:

(1) The joint resolution of the other House shall not be referred to a committee.

(2) With respect to a joint resolution described in subsection (a) of the House receiving the joint resolution

(A) the procedure in that House shall be the same as if no joint resolution had been received from the other House; but

(B) the vote on final passage shall be on the joint resolution of the other House.

 

(g) This section is enacted by Congress—

(1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution described in subsection (a), and it supersedes other rules only to the extent that it is inconsistent with such rules; and

(2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.

 

(Added Pub. L. 104–121, title II, § 251, Mar. 29, 1996, 110 Stat. 871.)

 

5 U.S.C. § 804 – Definitions

 

For purposes of this chapter—

(1) The term “Federal agency” means any agency as that term is defined in section 551(1).

(2) The term “major rule” means any rule that the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget finds has resulted in or is likely to result in—

(A) an annual effect on the economy of $100,000,000 or more;

(B) a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or

(C) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets.

The term does not include any rule promulgated under the Telecommunications Act of 1996 and the amendments made by that Act.

(3) The term “rule” has the meaning given such term in section 551, except that such term does not include—

(A) any rule of particular applicability, including a rule that approves or prescribes for the future rates, wages, prices, services, or allowances therefor, corporate or financial structures, reorganizations, mergers, or acquisitions thereof, or accounting practices or disclosures bearing on any of the foregoing;

(B) any rule relating to agency management or personnel; or

(C) any rule of agency organization, procedure, or practice that does not substantially affect the rights or obligations of non-agency parties.

 

(Added Pub. L. 104–121, title II, § 251, Mar. 29, 1996, 110 Stat. 873.)

 

5 U.S.C. § 805 – Judicial Review

 

No determination, finding, action, or omission under this chapter shall be subject to judicial review.

(Added Pub. L. 104–121, title II, § 251, Mar. 29, 1996, 110 Stat. 873.)

2.4.1.3 Regulations in Need of Scrutiny (REINS) Act 2.4.1.3 Regulations in Need of Scrutiny (REINS) Act



118th CONGRESS

  1st Session

  1. R. 277

 

                                 A BILL

 

 

  To amend chapter 8 of title 5, United States Code, to provide that

   major rules of the executive branch shall have no force or effect

       unless a joint resolution of approval is enacted into law.

 

    Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

 

SECTION 1. SHORT TITLE.

 

    This Act may be cited as the ``Regulations from the Executive in

Need of Scrutiny Act of 2023'' or the ``REINS Act of 2023''.

 

SEC. 2. PURPOSE.

 

    The purpose of this Act is to increase accountability for and

transparency in the Federal regulatory process. Section 1 of article I

of the United States Constitution grants all legislative powers to

Congress. Over time, Congress has excessively delegated its

constitutional charge while failing to conduct appropriate oversight

and retain accountability for the content of the laws it passes. By

requiring a vote in Congress, the REINS Act will result in more

carefully drafted and detailed legislation, an improved regulatory

process, and a legislative branch that is truly accountable to the

American people for the laws imposed upon them.

 

SEC. 3. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.

 

    Chapter 8 of title 5, United States Code, is amended to read as

follows:

 

         ``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

 

``Sec.

``801. Congressional review.

``802. Congressional approval procedure for major rules.

``803. Congressional disapproval procedure for nonmajor rules.

``804. Definitions.

``805. Judicial review.

``806. Exemption for monetary policy.

``807. Effective date of certain rules.

``Sec. 801. Congressional review

    ``(a)(1)(A) Before a rule may take effect, the Federal agency

promulgating such rule shall publish in the Federal Register a list of

information on which the rule is based, including data, scientific and

economic studies, and cost-benefit analyses, and identify how the

public can access such information online, and shall submit to each

House of the Congress and to the Comptroller General a report

containing--

            ``(i) a copy of the rule;

            ``(ii) a concise general statement relating to the rule;

            ``(iii) a classification of the rule as a major or nonmajor

        rule, including an explanation of the classification

        specifically addressing each criteria for a major rule

        contained within subparagraphs (A) through (C) of section

        804(2);

            ``(iv) a list of any other related regulatory actions

        intended to implement the same statutory provision or

        regulatory objective as well as the individual and aggregate

        economic effects of those actions; and

            ``(v) the proposed effective date of the rule.

    ``(B) On the date of the submission of the report under

subparagraph (A), the Federal agency promulgating the rule shall submit

to the Comptroller General and make available to each House of

Congress--

            ``(i) a complete copy of the cost-benefit analysis of the

        rule, if any, including an analysis of any jobs added or lost,

        differentiating between public and private sector jobs;

            ``(ii) the agency's actions pursuant to sections 603, 604,

        605, 607, and 609 of this title;

            ``(iii) the agency's actions pursuant to sections 202, 203,

        204, and 205 of the Unfunded Mandates Reform Act of 1995; and

            ``(iv) any other relevant information or requirements under

        any other Act and any relevant Executive orders.

    ``(C) Upon receipt of a report submitted under subparagraph (A),

each House shall provide copies of the report to the chairman and

ranking member of each standing committee with jurisdiction under the

rules of the House of Representatives or the Senate to report a bill to

amend the provision of law under which the rule is issued.

    ``(2)(A) The Comptroller General shall provide a report on each

major rule to the committees of jurisdiction by the end of 15 calendar

days after the submission or publication date. The report of the

Comptroller General shall include an assessment of the agency's

compliance with procedural steps required by paragraph (1)(B) and an

assessment of whether the major rule imposes any new limits or mandates

on private-sector activity.

    ``(B) Federal agencies shall cooperate with the Comptroller General

by providing information relevant to the Comptroller General's report

under subparagraph (A).

    ``(3) A major rule relating to a report submitted under paragraph

(1) shall take effect upon enactment of a joint resolution of approval

described in section 802 or as provided for in the rule following

enactment of a joint resolution of approval described in section 802,

whichever is later.

    ``(4) A nonmajor rule shall take effect as provided by section 803

after submission to Congress under paragraph (1).

    ``(5) If a joint resolution of approval relating to a major rule is

not enacted within the period provided in subsection (b)(2), then a

joint resolution of approval relating to the same rule may not be

considered under this chapter in the same Congress by either the House

of Representatives or the Senate.

    ``(b)(1) A major rule shall not take effect unless the Congress

enacts a joint resolution of approval described under section 802.

    ``(2) If a joint resolution described in subsection (a) is not

enacted into law by the end of 70 session days or legislative days, as

applicable, beginning on the date on which the report referred to in

subsection (a)(1)(A) is received by Congress (excluding days either

House of Congress is adjourned for more than 3 days during a session of

Congress), then the rule described in that resolution shall be deemed

not to be approved and such rule shall not take effect.

    ``(c)(1) Notwithstanding any other provision of this section

(except subject to paragraph (3)), a major rule may take effect for one

90-calendar-day period if the President makes a determination under

paragraph (2) and submits written notice of such determination to the

Congress.

    ``(2) Paragraph (1) applies to a determination made by the

President by Executive order that the major rule should take effect

because such rule is--

            ``(A) necessary because of an imminent threat to health or

        safety or other emergency;

            ``(B) necessary for the enforcement of criminal laws;

            ``(C) necessary for national security; or

            ``(D) issued pursuant to any statute implementing an

        international trade agreement.

    ``(3) An exercise by the President of the authority under this

subsection shall have no effect on the procedures under section 802.

    ``(d)(1) In addition to the opportunity for review otherwise

provided under this chapter, in the case of any rule for which a report

was submitted in accordance with subsection (a)(1)(A) during the period

beginning on the date occurring--

            ``(A) in the case of the Senate, 60 session days; or

            ``(B) in the case of the House of Representatives, 60

        legislative days,

before the date the Congress is scheduled to adjourn a session of

Congress through the date on which the same or succeeding Congress

first convenes its next session, sections 802 and 803 shall apply to

such rule in the succeeding session of Congress.

    ``(2)(A) In applying sections 802 and 803 for purposes of such

additional review, a rule described under paragraph (1) shall be

treated as though--

            ``(i) such rule were published in the Federal Register on--

                    ``(I) in the case of the Senate, the 15th session

                day; or

                    ``(II) in the case of the House of Representatives,

                the 15th legislative day,

        after the succeeding session of Congress first convenes; and

            ``(ii) a report on such rule were submitted to Congress

        under subsection (a)(1) on such date.

    ``(B) Nothing in this paragraph shall be construed to affect the

requirement under subsection (a)(1) that a report shall be submitted to

Congress before a rule can take effect.

    ``(3) A rule described under paragraph (1) shall take effect as

otherwise provided by law (including other subsections of this

section).

``Sec. 802. Congressional approval procedure for major rules

    ``(a)(1) For purposes of this section, the term `joint resolution'

means only a joint resolution addressing a report classifying a rule as

major pursuant to section 801(a)(1)(A)(iii) that--

            ``(A) bears no preamble;

            ``(B) bears the following title (with blanks filled as

        appropriate): `Approving the rule submitted by ___ relating to

        ___.';

            ``(C) includes after its resolving clause only the

        following (with blanks filled as appropriate): `That Congress

        approves the rule submitted by ___ relating to ___.'; and

            ``(D) is introduced pursuant to paragraph (2).

    ``(2) After a House of Congress receives a report classifying a

rule as major pursuant to section 801(a)(1)(A)(iii), the majority

leader of that House (or his or her respective designee) shall

introduce (by request, if appropriate) a joint resolution described in

paragraph (1)--

            ``(A) in the case of the House of Representatives, within 3

        legislative days; and

            ``(B) in the case of the Senate, within 3 session days.

    ``(3) A joint resolution described in paragraph (1) shall not be

subject to amendment at any stage of proceeding.

    ``(b) A joint resolution described in subsection (a) shall be

referred in each House of Congress to the committees having

jurisdiction over the provision of law under which the rule is issued.

    ``(c) In the Senate, if the committee or committees to which a

joint resolution described in subsection (a) has been referred have not

reported it at the end of 15 session days after its introduction, such

committee or committees shall be automatically discharged from further

consideration of the resolution and it shall be placed on the calendar.

A vote on final passage of the resolution shall be taken on or before

the close of the 15th session day after the resolution is reported by

the committee or committees to which it was referred, or after such

committee or committees have been discharged from further consideration

of the resolution.

    ``(d)(1) In the Senate, when the committee or committees to which a

joint resolution is referred have reported, or when a committee or

committees are discharged (under subsection (c)) from further

consideration of a joint resolution described in subsection (a), it is

at any time thereafter in order (even though a previous motion to the

same effect has been disagreed to) for a motion to proceed to the

consideration of the joint resolution, and all points of order against

the joint resolution (and against consideration of the joint

resolution) are waived. The motion is not subject to amendment, or to a

motion to postpone, or to a motion to proceed to the consideration of

other business. A motion to reconsider the vote by which the motion is

agreed to or disagreed to shall not be in order. If a motion to proceed

to the consideration of the joint resolution is agreed to, the joint

resolution shall remain the unfinished business of the Senate until

disposed of.

    ``(2) In the Senate, debate on the joint resolution, and on all

debatable motions and appeals in connection therewith, shall be limited

to not more than 2 hours, which shall be divided equally between those

favoring and those opposing the joint resolution. A motion to further

limit debate is in order and not debatable. An amendment to, or a

motion to postpone, or a motion to proceed to the consideration of

other business, or a motion to recommit the joint resolution is not in

order.

    ``(3) In the Senate, immediately following the conclusion of the

debate on a joint resolution described in subsection (a), and a single

quorum call at the conclusion of the debate if requested in accordance

with the rules of the Senate, the vote on final passage of the joint

resolution shall occur.

    ``(4) Appeals from the decisions of the Chair relating to the

application of the rules of the Senate to the procedure relating to a

joint resolution described in subsection (a) shall be decided without

debate.

    ``(e) In the House of Representatives, if any committee to which a

joint resolution described in subsection (a) has been referred has not

reported it to the House at the end of 15 legislative days after its

introduction, such committee shall be discharged from further

consideration of the joint resolution, and it shall be placed on the

appropriate calendar. On the second and fourth Thursdays of each month

it shall be in order at any time for the Speaker to recognize a Member

who favors passage of a joint resolution that has appeared on the

calendar for at least 5 legislative days to call up that joint

resolution for immediate consideration in the House without

intervention of any point of order. When so called up a joint

resolution shall be considered as read and shall be debatable for 1

hour equally divided and controlled by the proponent and an opponent,

and the previous question shall be considered as ordered to its passage

without intervening motion. It shall not be in order to reconsider the

vote on passage. If a vote on final passage of the joint resolution has

not been taken by the third Thursday on which the Speaker may recognize

a Member under this subsection, such vote shall be taken on that day.

    ``(f)(1) If, before passing a joint resolution described in

subsection (a), one House receives from the other a joint resolution

having the same text, then--

            ``(A) the joint resolution of the other House shall not be

        referred to a committee; and

            ``(B) the procedure in the receiving House shall be the

        same as if no joint resolution had been received from the other

        House until the vote on passage, when the joint resolution

        received from the other House shall supplant the joint

        resolution of the receiving House.

    ``(2) This subsection shall not apply to the House of

Representatives if the joint resolution received from the Senate is a

revenue measure.

    ``(g) If either House has not taken a vote on final passage of the

joint resolution by the last day of the period described in section

801(b)(2), then such vote shall be taken on that day.

    ``(h) This section and section 803 are enacted by Congress--

            ``(1) as an exercise of the rulemaking power of the Senate

        and House of Representatives, respectively, and as such are

        deemed to be part of the rules of each House, respectively, but

        applicable only with respect to the procedure to be followed in

        that House in the case of a joint resolution described in

        subsection (a) and superseding other rules only where

        explicitly so; and

            ``(2) with full recognition of the constitutional right of

        either House to change the rules (so far as they relate to the

        procedure of that House) at any time, in the same manner and to

        the same extent as in the case of any other rule of that House.

``Sec. 803. Congressional disapproval procedure for nonmajor rules

    ``(a) For purposes of this section, the term `joint resolution'

means only a joint resolution introduced in the period beginning on the

date on which the report referred to in section 801(a)(1)(A) is

received by Congress and ending 60 days thereafter (excluding days

either House of Congress is adjourned for more than 3 days during a

session of Congress), the matter after the resolving clause of which is

as follows: `That Congress disapproves the nonmajor rule submitted by

the ___ relating to ___, and such rule shall have no force or effect.'

(The blank spaces being appropriately filled in).

    ``(b) A joint resolution described in subsection (a) shall be

referred to the committees in each House of Congress with jurisdiction.

    ``(c) In the Senate, if the committee to which is referred a joint

resolution described in subsection (a) has not reported such joint

resolution (or an identical joint resolution) at the end of 15 session

days after the date of introduction of the joint resolution, such

committee may be discharged from further consideration of such joint

resolution upon a petition supported in writing by 30 Members of the

Senate, and such joint resolution shall be placed on the calendar.

    ``(d)(1) In the Senate, when the committee to which a joint

resolution is referred has reported, or when a committee is discharged

(under subsection (c)) from further consideration of a joint resolution

described in subsection (a), it is at any time thereafter in order

(even though a previous motion to the same effect has been disagreed

  1. to) for a motion to proceed to the consideration of the joint

resolution, and all points of order against the joint resolution (and

against consideration of the joint resolution) are waived. The motion

is not subject to amendment, or to a motion to postpone, or to a motion

to proceed to the consideration of other business. A motion to

reconsider the vote by which the motion is agreed to or disagreed to

shall not be in order. If a motion to proceed to the consideration of

the joint resolution is agreed to, the joint resolution shall remain

the unfinished business of the Senate until disposed of.

    ``(2) In the Senate, debate on the joint resolution, and on all

debatable motions and appeals in connection therewith, shall be limited

to not more than 10 hours, which shall be divided equally between those

favoring and those opposing the joint resolution. A motion to further

limit debate is in order and not debatable. An amendment to, or a

motion to postpone, or a motion to proceed to the consideration of

other business, or a motion to recommit the joint resolution is not in

order.

    ``(3) In the Senate, immediately following the conclusion of the

debate on a joint resolution described in subsection (a), and a single

quorum call at the conclusion of the debate if requested in accordance

with the rules of the Senate, the vote on final passage of the joint

resolution shall occur.

    ``(4) Appeals from the decisions of the Chair relating to the

application of the rules of the Senate to the procedure relating to a

joint resolution described in subsection (a) shall be decided without

debate.

    ``(e) In the Senate, the procedure specified in subsection (c) or

(d) shall not apply to the consideration of a joint resolution

respecting a nonmajor rule--

            ``(1) after the expiration of the 60 session days beginning

        with the applicable submission or publication date; or

            ``(2) if the report under section 801(a)(1)(A) was

        submitted during the period referred to in section 801(d)(1),

        after the expiration of the 60 session days beginning on the

        15th session day after the succeeding session of Congress first

        convenes.

    ``(f) If, before the passage by one House of a joint resolution of

that House described in subsection (a), that House receives from the

other House a joint resolution described in subsection (a), then the

following procedures shall apply:

            ``(1) The joint resolution of the other House shall not be

        referred to a committee.

            ``(2) With respect to a joint resolution described in

        subsection (a) of the House receiving the joint resolution--

                    ``(A) the procedure in that House shall be the same

                as if no joint resolution had been received from the

                other House; but

                    ``(B) the vote on final passage shall be on the

                joint resolution of the other House.

``Sec. 804. Definitions

    ``For purposes of this chapter:

            ``(1) The term `Federal agency' means any agency as that

        term is defined in section 551(1).

            ``(2) The term `major rule' means any rule, including an

        interim final rule, that the Administrator of the Office of

        Information and Regulatory Affairs of the Office of Management

        and Budget finds has resulted in or is likely to result in--

                    ``(A) an annual effect on the economy of $100

                million or more;

                    ``(B) a major increase in costs or prices for

                consumers, individual industries, Federal, State, or

                local government agencies, or geographic regions; or

                    ``(C) significant adverse effects on competition,

                employment, investment, productivity, innovation, or

                the ability of United States-based enterprises to

                compete with foreign-based enterprises in domestic and

                export markets.

            ``(3) The term `nonmajor rule' means any rule that is not a

        major rule.

            ``(4) The term `rule' has the meaning given such term in

        section 551, except that such term does not include--

                    ``(A) any rule of particular applicability,

                including a rule that approves or prescribes for the

                future rates, wages, prices, services, or allowances

                therefore, corporate or financial structures,

                reorganizations, mergers, or acquisitions thereof, or

                accounting practices or disclosures bearing on any of

                the foregoing;

                    ``(B) any rule relating to agency management or

                personnel; or

                    ``(C) any rule of agency organization, procedure,

                or practice that does not substantially affect the

                rights or obligations of non-agency parties.

            ``(5) The term `submission or publication date', except as

        otherwise provided in this chapter, means--

                    ``(A) in the case of a major rule, the date on

                which the Congress receives the report submitted under

                section 801(a)(1); and

                    ``(B) in the case of a nonmajor rule, the later

                of--

                            ``(i) the date on which the Congress

                        receives the report submitted under section

                        801(a)(1); and

                            ``(ii) the date on which the nonmajor rule

                        is published in the Federal Register, if so

                        published.

``Sec. 805. Judicial review

    ``(a) No determination, finding, action, or omission under this

chapter shall be subject to judicial review.

    ``(b) Notwithstanding subsection (a), a court may determine whether

a Federal agency has completed the necessary requirements under this

chapter for a rule to take effect.

    ``(c) The enactment of a joint resolution of approval under section

802 shall not be interpreted to serve as a grant or modification of

statutory authority by Congress for the promulgation of a rule, shall

not extinguish or affect any claim, whether substantive or procedural,

against any alleged defect in a rule, and shall not form part of the

record before the court in any judicial proceeding concerning a rule

except for purposes of determining whether or not the rule is in

effect.

``Sec. 806. Exemption for monetary policy

    ``Nothing in this chapter shall apply to rules that concern

monetary policy proposed or implemented by the Board of Governors of

the Federal Reserve System or the Federal Open Market Committee.

``Sec. 807. Effective date of certain rules

    ``Notwithstanding section 801--

            ``(1) any rule that establishes, modifies, opens, closes,

        or conducts a regulatory program for a commercial,

        recreational, or subsistence activity related to hunting,

        fishing, or camping; or

            ``(2) any rule other than a major rule which an agency for

        good cause finds (and incorporates the finding and a brief

        statement of reasons therefore in the rule issued) that notice

        and public procedure thereon are impracticable, unnecessary, or

        contrary to the public interest,

shall take effect at such time as the Federal agency promulgating the

rule determines.''.

 

SEC. 4. BUDGETARY EFFECTS OF RULES SUBJECT TO SECTION 802 OF TITLE 5,

              UNITED STATES CODE.

 

    Section 257(b)(2) of the Balanced Budget and Emergency Deficit

Control Act of 1985 (2 U.S.C. 907(b)(2)) is amended by adding at the

end the following new subparagraph:

                    ``(E) Budgetary effects of rules subject to section

                802 of title 5, united states code.--Any rule subject

                to the congressional approval procedure set forth in

                section 802 of chapter 8 of title 5, United States

                Code, affecting budget authority, outlays, or receipts

                shall be assumed to be effective unless it is not

                approved in accordance with such section.''.

 

SEC. 5. GOVERNMENT ACCOUNTABILITY OFFICE STUDY OF RULES.

 

    (a) In General.--The Comptroller General of the United States shall

conduct a study to determine, as of the date of the enactment of this

Act--

            (1) how many rules (as such term is defined in section 804

        of title 5, United States Code) were in effect;

            (2) how many major rules (as such term is defined in

        section 804 of title 5, United States Code) were in effect; and

            (3) the total estimated economic cost imposed by all such

        rules.

    (b) Report.--Not later than 1 year after the date of the enactment

of this Act, the Comptroller General of the United States shall submit

a report to Congress that contains the findings of the study conducted

under subsection (a).

                                                 

 

2.4.1.4 Trump v. Mazars USA, LLP 2.4.1.4 Trump v. Mazars USA, LLP

Donald J. TRUMP, et al., Petitioners
v.
MAZARS USA, LLP, et al.;

Donald J. Trump, et al., Petitioners
v.
Deutsche Bank AG, et al.

No. 19-715
No. 19-760

Supreme Court of the United States.

Argued May 12, 2020
Decided July 9, 2020*

Patrick Strawbridge, Boston, MA, for the petitioners.

Principal Deputy Solicitor General Jeffrey B. Wall for the United States, as amicus curiae, by special leave of the Court, supporting the petitioners.

Douglas N. Letter, Washington, DC, for Committees of the U. S. House of Representatives respondents.

Douglas N. Letter, General Counsel, Todd B. Tatelman, Principal Deputy General Counsel, Megan Barbero, Deputy General Counsel, Josephine Morse, Deputy General Counsel, Brooks M. Hanner, Associate General Counsel, Adam A. Grogg, Associate General Counsel, Sarah E. Clouse, Associate General Counsel, Jonathan B. Schwartz, Attorney, U.S. House of Representatives, Office of General Counsel, Washington, DC, for respondent Committees of the U.S. House of Representatives.

Jay Alan Sekulow, Stuart J. Roth, Jordan Sekulow, Constitutional Litigation, and Advocacy Group, P.C., Washington, DC, Stefan C. Passantino, Michael Best & Friedrich LLP, Washington, DC, William S. Consovoy, Counsel of Record, Thomas R. McCarthy, Alexa R. Baltes, Jordan M. Call, Consovoy McCarthy PLLC, Arlington, VA, Patrick Strawbridge, Consovoy McCarthy PLLC, Boston, MA, for petitioners.

Lawrence S. Robbins, Roy T. Englert, Jr., Alan D. Strasser, Jennifer S. Windom, D. Hunter Smith, Brandon L. Arnold, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, Douglas N. Letter, Todd B. Tatelman, Megan Barbero, Josephine Morse, Adam A. Grogg, Jonathan B. Schwartz, Office of General Counsel U.S. House of Representatives, Washington, D.C., for respondent Committees of the U.S. House of Representatives.

CHIEF JUSTICE ROBERTS delivered the opinion of the Court.

*2026Over the course of five days in April 2019, three committees of the U. S. House of Representatives issued four subpoenas seeking information about the finances of President Donald J. Trump, his children, and affiliated businesses. We have held that the House has authority under the Constitution to issue subpoenas to assist it in carrying out its legislative responsibilities. The House asserts that the financial information sought here-encompassing a decade's worth of transactions by the President and his family-will help guide legislative reform in areas ranging from money laundering and terrorism to foreign involvement in U. S. elections. The President contends that the House lacked a valid legislative aim and instead sought these records to harass him, expose personal matters, and conduct law enforcement activities beyond its authority. The question presented is whether the subpoenas exceed the authority of the House under the Constitution.

We have never addressed a congressional subpoena for the President's information. Two hundred years ago, it was established that Presidents may be subpoenaed during a federal criminal proceeding, United States v. Burr , 25 F.Cas. 30 (No. 14,692d) (CC Va. 1807) (Marshall, Cir. J.), and earlier today we extended that ruling to state criminal proceedings, Trump v. Vance, ante , --- U.S. at p. ----, 140 S.Ct. at p. ----. Nearly fifty years ago, we held that a federal prosecutor could obtain information from a President despite assertions of executive privilege, United States v. Nixon , 418 U.S. 683, 94 S.Ct. 3090, 41 L.Ed.2d 1039 (1974), and more recently we ruled that a private litigant could subject a President to a damages suit and appropriate discovery obligations in federal court, Clinton v. Jones , 520 U.S. 681, 117 S.Ct. 1636, 137 L.Ed.2d 945 (1997).

This case is different. Here the President's information is sought not by prosecutors or private parties in connection with a particular judicial proceeding, but by committees of Congress that have set forth broad legislative objectives. Congress and the President-the two political branches established by the Constitution-have an ongoing relationship that the Framers intended to feature both rivalry and reciprocity. See The Federalist No. 51, p. 349 (J. Cooke ed. 1961) (J. Madison); Youngstown Sheet & Tube Co. v. Sawyer , 343 U.S. 579, 635, 72 S.Ct. 863, 96 L.Ed. 1153 (1952) (Jackson, J., concurring). That distinctive aspect necessarily informs our analysis of the question before us.

I

A

Each of the three committees sought overlapping sets of financial documents, *2027but each supplied different justifications for the requests.

The House Committee on Financial Services issued two subpoenas, both on April 11, 2019. App. 128, 154, 226. The first, issued to Deutsche Bank, seeks the financial information of the President, his children, their immediate family members, and several affiliated business entities. Specifically, the subpoena seeks any document related to account activity, due diligence, foreign transactions, business statements, debt schedules, statements of net worth, tax returns, and suspicious activity identified by Deutsche Bank. The second, issued to Capital One, demands similar financial information with respect to more than a dozen business entities associated with the President. The Deutsche Bank subpoena requests materials from "2010 through the present," and the Capital One subpoena covers "2016 through the present," but both subpoenas impose no time limitations for certain documents, such as those connected to account openings and due diligence. Id., at 128, 155.

According to the House, the Financial Services Committee issued these subpoenas pursuant to House Resolution 206, which called for "efforts to close loopholes that allow corruption, terrorism, and money laundering to infiltrate our country's financial system." H. Res. 206, 116th Cong., 1st Sess., 5 (Mar. 13, 2019). Such loopholes, the resolution explained, had allowed "illicit money, including from Russian oligarchs," to flow into the United States through "anonymous shell companies" using investments such as "luxury high-end real estate." Id. , at 3. The House also invokes the oversight plan of the Financial Services Committee, which stated that the Committee intends to review banking regulation and "examine the implementation, effectiveness, and enforcement" of laws designed to prevent money laundering and the financing of terrorism. H. R. Rep. No. 116-40, p. 84 (2019). The plan further provided that the Committee would "consider proposals to prevent the abuse of the financial system" and "address any vulnerabilities identified" in the real estate market. Id. , at 85.

On the same day as the Financial Services Committee, the Permanent Select Committee on Intelligence issued an identical subpoena to Deutsche Bank-albeit for different reasons. According to the House, the Intelligence Committee subpoenaed Deutsche Bank as part of an investigation into foreign efforts to undermine the U. S. political process. Committee Chairman Adam Schiff had described that investigation in a previous statement, explaining that the Committee was examining alleged attempts by Russia to influence the 2016 election; potential links between Russia and the President's campaign; and whether the President and his associates had been compromised by foreign actors or interests. Press Release, House Permanent Select Committee on Intelligence, Chairman Schiff Statement on House Intelligence Committee Investigation (Feb. 6, 2019). Chairman Schiff added that the Committee planned "to develop legislation and policy reforms to ensure the U. S. government is better positioned to counter future efforts to undermine our political process and national security." Ibid.

Four days after the Financial Services and Intelligence Committees, the House Committee on Oversight and Reform issued another subpoena, this time to the President's personal accounting firm, Mazars USA, LLP. The subpoena demanded information related to the President and several affiliated business entities from 2011 through 2018, including statements of financial condition, independent auditors' reports, financial reports, underlying source documents, and communications between *2028Mazars and the President or his businesses. The subpoena also requested all engagement agreements and contracts "[w]ithout regard to time." App. to Pet. for Cert. in 19-715, p. 230.

Chairman Elijah Cummings explained the basis for the subpoena in a memorandum to the Oversight Committee. According to the chairman, recent testimony by the President's former personal attorney Michael Cohen, along with several documents prepared by Mazars and supplied by Cohen, raised questions about whether the President had accurately represented his financial affairs. Chairman Cummings asserted that the Committee had "full authority to investigate" whether the President: (1) "may have engaged in illegal conduct before and during his tenure in office," (2) "has undisclosed conflicts of interest that may impair his ability to make impartial policy decisions," (3) "is complying with the Emoluments Clauses of the Constitution," and (4) "has accurately reported his finances to the Office of Government Ethics and other federal entities." App. in No. 19-5142 (CADC), p. 107. "The Committee's interest in these matters," Chairman Cummings concluded, "informs its review of multiple laws and legislative proposals under our jurisdiction." Ibid.

B

Petitioners-the President in his personal capacity, along with his children and affiliated businesses-filed two suits challenging the subpoenas. They contested the subpoena issued by the Oversight Committee in the District Court for the District of Columbia (Mazars , No. 19-715), and the subpoenas issued by the Financial Services and Intelligence Committees in the Southern District of New York (Deutsche Bank , No. 19-760). In both cases, petitioners contended that the subpoenas lacked a legitimate legislative purpose and violated the separation of powers. The President did not, however, resist the subpoenas by arguing that any of the requested records were protected by executive privilege. For relief, petitioners asked for declaratory judgments and injunctions preventing Mazars and the banks from complying with the subpoenas. Although named as defendants, Mazars and the banks took no positions on the legal issues in these cases, and the House committees intervened to defend the subpoenas.

Petitioners' challenges failed. In Mazars , the District Court granted judgment for the House, 380 F.Supp.3d 76 (DC 2019), and the D. C. Circuit affirmed, 940 F.3d 710 (2019). In upholding the subpoena issued by the Oversight Committee to Mazars, the Court of Appeals found that the subpoena served a "valid legislative purpose" because the requested information was relevant to reforming financial disclosure requirements for Presidents and presidential candidates. Id. , at 726-742 (internal quotation marks omitted). Judge Rao dissented. As she saw it, the "gravamen" of the subpoena was investigating alleged illegal conduct by the President, and the House must pursue such wrongdoing through its impeachment powers, not its legislative powers. Id. , at 773-774. Otherwise, the House could become a "roving inquisition over a co-equal branch of government." Id. , at 748. The D. C. Circuit denied rehearing en banc over several more dissents. 941 F.3d 1180, 1180-1182 (2019).

In Deutsche Bank , the District Court denied a preliminary injunction, 2019 WL 2204898 (SDNY, May 22, 2019), and the Second Circuit affirmed "in substantial part," 943 F.3d 627, 676 (2019). While acknowledging that the subpoenas are "surely broad in scope," the Court of Appeals held that the Intelligence Committee properly *2029issued its subpoena to Deutsche Bank as part of an investigation into alleged foreign influence over petitioners and Russian interference with the U. S. political process. Id. , at 650, 658-659. That investigation, the court concluded, could inform legislation to combat foreign meddling and strengthen national security. Id. , at 658-659, and n. 59.

As to the subpoenas issued by the Financial Services Committee to Deutsche Bank and Capital One, the Court of Appeals concluded that they were adequately related to potential legislation on money laundering, terrorist financing, and the global movement of illicit funds through the real estate market. Id. , at 656-659. Rejecting the contention that the subpoenas improperly targeted the President, the court explained in part that the President's financial dealings with Deutsche Bank made it "appropriate" for the House to use him as a "case study" to determine "whether new legislation is needed." Id. , at 662-663, n. 67.1

Judge Livingston dissented, seeing no "clear reason why a congressional investigation aimed generally at closing regulatory loopholes in the banking system need focus on over a decade of financial information regarding this President, his family, and his business affairs." Id. , at 687.

We granted certiorari in both cases and stayed the judgments below pending our decision. 589 U. S. ----, 140 S.Ct. 660, 205 L.Ed.2d 418 (2019).

II

A

The question presented is whether the subpoenas exceed the authority of the House under the Constitution. Historically, disputes over congressional demands for presidential documents have not ended up in court. Instead, they have been hashed out in the "hurly-burly, the give-and-take of the political process between the legislative and the executive." Hearings on S. 2170 et al. before the Subcommittee on Intergovernmental Relations of the Senate Committee on Government Operations, 94th Cong., 1st Sess., 87 (1975) (A. Scalia, Assistant Attorney General, Office of Legal Counsel).

That practice began with George Washington and the early Congress. In 1792, a House committee requested Executive Branch documents pertaining to General St. Clair's campaign against the Indians in the Northwest Territory, which had concluded in an utter rout of federal forces when they were caught by surprise near the present-day border between Ohio and Indiana. See T. Taylor, Grand Inquest: The Story of Congressional Investigations 19-23 (1955). Since this was the first such request from Congress, President Washington called a Cabinet meeting, wishing to take care that his response "be rightly conducted" because it could "become a precedent." 1 Writings of Thomas Jefferson 189 (P. Ford ed. 1892).

The meeting, attended by the likes of Alexander Hamilton, Thomas Jefferson, Edmund Randolph, and Henry Knox, ended with the Cabinet of "one mind": The House had authority to "institute inquiries" and "call for papers" but the President could "exercise a discretion" over disclosures, "communicat[ing] such papers as *2030the public good would permit" and "refus[ing]" the rest. Id. , at 189-190. President Washington then dispatched Jefferson to speak to individual congressmen and "bring them by persuasion into the right channel." Id. , at 190. The discussions were apparently fruitful, as the House later narrowed its request and the documents were supplied without recourse to the courts. See 3 Annals of Cong. 536 (1792); Taylor, supra , at 24.

Jefferson, once he became President, followed Washington's precedent. In early 1807, after Jefferson had disclosed that "sundry persons" were conspiring to invade Spanish territory in North America with a private army, 16 Annals of Cong. 686-687, the House requested that the President produce any information in his possession touching on the conspiracy (except for information that would harm the public interest), id. , at 336, 345, 359. Jefferson chose not to divulge the entire "voluminous" correspondence on the subject, explaining that much of it was "private" or mere "rumors" and "neither safety nor justice" permitted him to "expos[e] names" apart from identifying the conspiracy's "principal actor": Aaron Burr. Id. , at 39-40. Instead of the entire correspondence, Jefferson sent Congress particular documents and a special message summarizing the conspiracy. Id. , at 39-43; see generally Vance, ante , --- U.S. at ---- - ----, 140 S.Ct. at 2421 - 2422. Neither Congress nor the President asked the Judiciary to intervene.2

Ever since, congressional demands for the President's information have been resolved by the political branches without involving this Court. The Reagan and Clinton presidencies provide two modern examples:

During the Reagan administration, a House subcommittee subpoenaed all documents related to the Department of the Interior's decision whether to designate Canada a reciprocal country for purposes of the Mineral Lands Leasing Act. President Reagan directed that certain documents be withheld because they implicated his confidential relationship with subordinates. While withholding those documents, the administration made "repeated efforts" at accommodation through limited disclosures and testimony over a period of several months. 6 Op. of Office of Legal Counsel 751, 780 (1982). Unsatisfied, the subcommittee and its parent committee eventually voted to hold the Secretary of the Interior in contempt, and an innovative compromise soon followed: All documents were made available, but only for one day with no photocopying, minimal notetaking, and no participation by non-Members of Congress. Id. , at 780-781; see H. R. Rep. No. 97-898, pp. 3-8 (1982).

In 1995, a Senate committee subpoenaed notes taken by a White House attorney at a meeting with President Clinton's personal lawyers concerning the Whitewater controversy. The President resisted the subpoena on the ground that the notes were protected by attorney-client privilege, leading to "long and protracted" negotiations and a Senate threat to seek judicial enforcement of the subpoena. S. Rep. No. 104-204, pp. 16-17 (1996). Eventually the parties reached an agreement, whereby President Clinton avoided the threatened suit, agreed to turn over the notes, and obtained the Senate's concession that he *2031had not waived any privileges. Ibid. ; see L. Fisher, Congressional Research Service, Congressional Investigations: Subpoenas and Contempt Power 16-18 (2003).

Congress and the President maintained this tradition of negotiation and compromise-without the involvement of this Court-until the present dispute. Indeed, from President Washington until now, we have never considered a dispute over a congressional subpoena for the President's records. And, according to the parties, the appellate courts have addressed such a subpoena only once, when a Senate committee subpoenaed President Nixon during the Watergate scandal. See infra , at 2032 - 2033 (discussing Senate Select Committee on Presidential Campaign Activities v. Nixon , 498 F.2d 725 (CADC 1974) (en banc)). In that case, the court refused to enforce the subpoena, and the Senate did not seek review by this Court.

This dispute therefore represents a significant departure from historical practice. Although the parties agree that this particular controversy is justiciable, we recognize that it is the first of its kind to reach this Court; that disputes of this sort can raise important issues concerning relations between the branches; that related disputes involving congressional efforts to seek official Executive Branch information recur on a regular basis, including in the context of deeply partisan controversy; and that Congress and the Executive have nonetheless managed for over two centuries to resolve such disputes among themselves without the benefit of guidance from us. Such longstanding practice " 'is a consideration of great weight' " in cases concerning "the allocation of power between [the] two elected branches of Government," and it imposes on us a duty of care to ensure that we not needlessly disturb "the compromises and working arrangements that [those] branches ... themselves have reached." NLRB v. Noel Canning , 573 U.S. 513, 524-526, 134 S.Ct. 2550, 189 L.Ed.2d 538 (2014) (quoting The Pocket Veto Case , 279 U.S. 655, 689, 49 S.Ct. 463, 73 L.Ed. 894 (1929) ). With that in mind, we turn to the question presented.

B

Congress has no enumerated constitutional power to conduct investigations or issue subpoenas, but we have held that each House has power "to secure needed information" in order to legislate. McGrain v. Daugherty , 273 U.S. 135, 161, 47 S.Ct. 319, 71 L.Ed. 580 (1927). This "power of inquiry-with process to enforce it-is an essential and appropriate auxiliary to the legislative function." Id. , at 174, 47 S.Ct. 319. Without information, Congress would be shooting in the dark, unable to legislate "wisely or effectively." Id. , at 175, 47 S.Ct. 319. The congressional power to obtain information is "broad" and "indispensable." Watkins v. United States , 354 U.S. 178, 187, 215, 77 S.Ct. 1173, 1 L.Ed.2d 1273 (1957). It encompasses inquiries into the administration of existing laws, studies of proposed laws, and "surveys of defects in our social, economic or political system for the purpose of enabling the Congress to remedy them." Id. , at 187, 77 S.Ct. 1173.

Because this power is "justified solely as an adjunct to the legislative process," it is subject to several limitations. Id. , at 197, 77 S.Ct. 1173. Most importantly, a congressional subpoena is valid only if it is "related to, and in furtherance of, a legitimate task of the Congress." Id. , at 187, 77 S.Ct. 1173. The subpoena must serve a "valid legislative purpose," Quinn v. United States , 349 U.S. 155, 161, 75 S.Ct. 668, 99 L.Ed. 964 (1955) ; it must "concern[ ] a subject on which legislation 'could be had,' "

*2032Eastland v. United States Servicemen's Fund , 421 U.S. 491, 506, 95 S.Ct. 1813, 44 L.Ed.2d 324 (1975) (quoting McGrain , 273 U.S. at 177, 47 S.Ct. 319 ).

Furthermore, Congress may not issue a subpoena for the purpose of "law enforcement," because "those powers are assigned under our Constitution to the Executive and the Judiciary." Quinn , 349 U.S. at 161, 75 S.Ct. 668. Thus Congress may not use subpoenas to "try" someone "before [a] committee for any crime or wrongdoing." McGrain , 273 U.S. at 179, 47 S.Ct. 319. Congress has no " 'general' power to inquire into private affairs and compel disclosures," id. , at 173-174, 47 S.Ct. 319, and "there is no congressional power to expose for the sake of exposure," Watkins , 354 U.S. at 200, 77 S.Ct. 1173. "Investigations conducted solely for the personal aggrandizement of the investigators or to 'punish' those investigated are indefensible." Id. , at 187, 77 S.Ct. 1173.

Finally, recipients of legislative subpoenas retain their constitutional rights throughout the course of an investigation. See id. , at 188, 198, 77 S.Ct. 1173. And recipients have long been understood to retain common law and constitutional privileges with respect to certain materials, such as attorney-client communications and governmental communications protected by executive privilege. See, e.g. , Congressional Research Service, supra, at 16-18 (attorney-client privilege); Senate Select Committee , 498 F.2d at 727, 730-731 (executive privilege).

C

The President contends, as does the Solicitor General appearing on behalf of the United States, that the usual rules for congressional subpoenas do not govern here because the President's papers are at issue. They argue for a more demanding standard based in large part on cases involving the Nixon tapes-recordings of conversations between President Nixon and close advisers discussing the break-in at the Democratic National Committee's headquarters at the Watergate complex. The tapes were subpoenaed by a Senate committee and the Special Prosecutor investigating the break-in, prompting President Nixon to invoke executive privilege and leading to two cases addressing the showing necessary to require the President to comply with the subpoenas. See Nixon , 418 U.S. 683, 94 S.Ct. 3090, 41 L.Ed.2d 1039 ; Senate Select Committee , 498 F.2d 725.

Those cases, the President and the Solicitor General now contend, establish the standard that should govern the House subpoenas here. Quoting Nixon , the President asserts that the House must establish a "demonstrated, specific need" for the financial information, just as the Watergate special prosecutor was required to do in order to obtain the tapes. 418 U.S. at 713, 94 S.Ct. 3090. And drawing on Senate Select Committee -the D. C. Circuit case refusing to enforce the Senate subpoena for the tapes-the President and the Solicitor General argue that the House must show that the financial information is "demonstrably critical" to its legislative purpose. 498 F.2d at 731.

We disagree that these demanding standards apply here. Unlike the cases before us, Nixon and Senate Select Committee involved Oval Office communications over which the President asserted executive privilege. That privilege safeguards the public interest in candid, confidential deliberations within the Executive Branch; it is "fundamental to the operation of Government." Nixon , 418 U.S. at 708, 94 S.Ct. 3090. As a result, information subject to executive privilege deserves "the greatest protection consistent with the fair administration of justice." Id. , at 715, 94 S.Ct. 3090. We decline to transplant *2033that protection root and branch to cases involving nonprivileged, private information, which by definition does not implicate sensitive Executive Branch deliberations.

The standards proposed by the President and the Solicitor General-if applied outside the context of privileged information-would risk seriously impeding Congress in carrying out its responsibilities. The President and the Solicitor General would apply the same exacting standards to all subpoenas for the President's information, without recognizing distinctions between privileged and nonprivileged information, between official and personal information, or between various legislative objectives. Such a categorical approach would represent a significant departure from the longstanding way of doing business between the branches, giving short shrift to Congress's important interests in conducting inquiries to obtain the information it needs to legislate effectively. Confounding the legislature in that effort would be contrary to the principle that:

"It is the proper duty of a representative body to look diligently into every affair of government and to talk much about what it sees. It is meant to be the eyes and the voice, and to embody the wisdom and will of its constituents. Unless Congress have and use every means of acquainting itself with the acts and the disposition of the administrative agents of the government, the country must be helpless to learn how it is being served." United States v. Rumely , 345 U.S. 41, 43, 73 S.Ct. 543, 97 L.Ed. 770 (1953) (internal quotation marks omitted).

Legislative inquiries might involve the President in appropriate cases; as noted, Congress's responsibilities extend to "every affair of government." Ibid. (internal quotation marks omitted). Because the President's approach does not take adequate account of these significant congressional interests, we do not adopt it.

D

The House meanwhile would have us ignore that these suits involve the President. Invoking our precedents concerning investigations that did not target the President's papers, the House urges us to uphold its subpoenas because they "relate[ ] to a valid legislative purpose" or "concern[ ] a subject on which legislation could be had." Brief for Respondent 46 (quoting Barenblatt v. United States , 360 U.S. 109, 127, 79 S.Ct. 1081, 3 L.Ed.2d 1115 (1959), and Eastland , 421 U.S. at 506, 95 S.Ct. 1813 ). That approach is appropriate, the House argues, because the cases before us are not "momentous separation-of-powers disputes." Brief for Respondent 1.

Largely following the House's lead, the courts below treated these cases much like any other, applying precedents that do not involve the President's papers. See 943 F.3d at 656-670 ; 940 F.3d at 724-742. The Second Circuit concluded that "this case does not concern separation of powers" because the House seeks personal documents and the President sued in his personal capacity. 943 F.3d at 669. The D. C. Circuit, for its part, recognized that "separation-of-powers concerns still linger in the air," and therefore it did not afford deference to the House. 940 F.3d at 725-726. But, because the House sought only personal documents, the court concluded that the case "present[ed] no direct interbranch dispute." Ibid.

The House's approach fails to take adequate account of the significant separation of powers issues raised by congressional subpoenas for the President's information. Congress and the President have an ongoing institutional relationship as the "opposite and rival" political branches established *2034by the Constitution. The Federalist No. 51, at 349. As a result, congressional subpoenas directed at the President differ markedly from congressional subpoenas we have previously reviewed, e.g. , Barenblatt , 360 U.S. at 127, 79 S.Ct. 1081 ; Eastland , 421 U.S. at 506, 95 S.Ct. 1813, and they bear little resemblance to criminal subpoenas issued to the President in the course of a specific investigation, see Vance, ante , --- U.S. p., ----, 140 S.Ct., p. ---- ; Nixon , 418 U.S. 683, 94 S.Ct. 3090, 41 L.Ed.2d 1039. Unlike those subpoenas, congressional subpoenas for the President's information unavoidably pit the political branches against one another. Cf. In re Sealed Case , 121 F.3d 729, 753 (CADC 1997) ("The President's ability to withhold information from Congress implicates different constitutional considerations than the President's ability to withhold evidence in judicial proceedings.").

Far from accounting for separation of powers concerns, the House's approach aggravates them by leaving essentially no limits on the congressional power to subpoena the President's personal records. Any personal paper possessed by a President could potentially "relate to" a conceivable subject of legislation, for Congress has broad legislative powers that touch a vast number of subjects. Brief for Respondent 46. The President's financial records could relate to economic reform, medical records to health reform, school transcripts to education reform, and so on. Indeed, at argument, the House was unable to identify any type of information that lacks some relation to potential legislation. See Tr. of Oral Arg. 52-53, 62-65.

Without limits on its subpoena powers, Congress could "exert an imperious controul" over the Executive Branch and aggrandize itself at the President's expense, just as the Framers feared. The Federalist No. 71, at 484 (A. Hamilton); see id. , No. 48, at 332-333 (J. Madison); Bowsher v. Synar , 478 U.S. 714, 721-722, 727, 106 S.Ct. 3181, 92 L.Ed.2d 583 (1986). And a limitless subpoena power would transform the "established practice" of the political branches. Noel Canning , 573 U.S. at 524, 134 S.Ct. 2550 (internal quotation marks omitted). Instead of negotiating over information requests, Congress could simply walk away from the bargaining table and compel compliance in court.

The House and the courts below suggest that these separation of powers concerns are not fully implicated by the particular subpoenas here, but we disagree. We would have to be "blind" not to see what "[a]ll others can see and understand": that the subpoenas do not represent a run-of-the-mill legislative effort but rather a clash between rival branches of government over records of intense political interest for all involved. Rumely , 345 U.S. at 44, 73 S.Ct. 543 (quoting Child Labor Tax Case , 259 U.S. 20, 37, 42 S.Ct. 449, 66 L.Ed. 817 (1922) (Taft, C. J.)).

The interbranch conflict here does not vanish simply because the subpoenas seek personal papers or because the President sued in his personal capacity. The President is the only person who alone composes a branch of government. As a result, there is not always a clear line between his personal and official affairs. "The interest of the man" is often "connected with the constitutional rights of the place." The Federalist No. 51, at 349. Given the close connection between the Office of the President and its occupant, congressional demands for the President's papers can implicate the relationship between the branches regardless whether those papers are personal or official. Either way, a demand may aim to harass the President or render him "complaisan[t] to the humors of the Legislature." Id. , No. 71, at 483. In *2035fact, a subpoena for personal papers may pose a heightened risk of such impermissible purposes, precisely because of the documents' personal nature and their less evident connection to a legislative task. No one can say that the controversy here is less significant to the relationship between the branches simply because it involves personal papers. Quite the opposite. That appears to be what makes the matter of such great consequence to the President and Congress.

In addition, separation of powers concerns are no less palpable here simply because the subpoenas were issued to third parties. Congressional demands for the President's information present an interbranch conflict no matter where the information is held-it is, after all, the President's information. Were it otherwise, Congress could sidestep constitutional requirements any time a President's information is entrusted to a third party-as occurs with rapidly increasing frequency. Cf. Carpenter v. United States , 585 U. S. ----, ----, ----, 138 S.Ct. 2206, 2219, 2220, 201 L.Ed.2d 507(2018). Indeed, Congress could declare open season on the President's information held by schools, archives, internet service providers, e-mail clients, and financial institutions. The Constitution does not tolerate such ready evasion; it "deals with substance, not shadows." Cummings v. Missouri , 4 Wall. 277, 325, 18 L.Ed. 356 (1867).

E

Congressional subpoenas for the President's personal information implicate weighty concerns regarding the separation of powers. Neither side, however, identifies an approach that accounts for these concerns. For more than two centuries, the political branches have resolved information disputes using the wide variety of means that the Constitution puts at their disposal. The nature of such interactions would be transformed by judicial enforcement of either of the approaches suggested by the parties, eroding a "[d]eeply embedded traditional way[ ] of conducting government." Youngstown Sheet & Tube Co. , 343 U.S. at 610, 72 S.Ct. 863 (Frankfurter, J., concurring).

A balanced approach is necessary, one that takes a "considerable impression" from "the practice of the government," McCulloch v. Maryland , 4 Wheat. 316, 401, 4 L.Ed. 579 (1819) ; see Noel Canning , 573 U.S. at 524-526, 134 S.Ct. 2550, and "resist[s]" the "pressure inherent within each of the separate Branches to exceed the outer limits of its power," INS v. Chadha , 462 U.S. 919, 951, 103 S.Ct. 2764, 77 L.Ed.2d 317 (1983). We therefore conclude that, in assessing whether a subpoena directed at the President's personal information is "related to, and in furtherance of, a legitimate task of the Congress," Watkins , 354 U.S. at 187, 77 S.Ct. 1173, courts must perform a careful analysis that takes adequate account of the separation of powers principles at stake, including both the significant legislative interests of Congress and the "unique position" of the President, Clinton , 520 U.S. at 698, 117 S.Ct. 1636 (internal quotation marks omitted). Several special considerations inform this analysis.

First, courts should carefully assess whether the asserted legislative purpose warrants the significant step of involving the President and his papers. " '[O]ccasion[s] for constitutional confrontation between the two branches' should be avoided whenever possible." Cheney v. United States Dist. Court for D. C. , 542 U.S. 367, 389-390, 124 S.Ct. 2576, 159 L.Ed.2d 459 (2004) (quoting Nixon , 418 U.S. at 692, 94 S.Ct. 3090 ). Congress may not rely on the President's information if other sources could reasonably provide *2036Congress the information it needs in light of its particular legislative objective. The President's unique constitutional position means that Congress may not look to him as a "case study" for general legislation. Cf. 943 F.3d at 662-663, n. 67.

Unlike in criminal proceedings, where "[t]he very integrity of the judicial system" would be undermined without "full disclosure of all the facts," Nixon , 418 U.S. at 709, 94 S.Ct. 3090, efforts to craft legislation involve predictive policy judgments that are "not hamper[ed] ... in quite the same way" when every scrap of potentially relevant evidence is not available, Cheney , 542 U.S. at 384, 124 S.Ct. 2576 ; see Senate Select Committee , 498 F.2d at 732. While we certainly recognize Congress's important interests in obtaining information through appropriate inquiries, those interests are not sufficiently powerful to justify access to the President's personal papers when other sources could provide Congress the information it needs.

Second, to narrow the scope of possible conflict between the branches, courts should insist on a subpoena no broader than reasonably necessary to support Congress's legislative objective. The specificity of the subpoena's request "serves as an important safeguard against unnecessary intrusion into the operation of the Office of the President." Cheney , 542 U.S. at 387, 124 S.Ct. 2576.

Third, courts should be attentive to the nature of the evidence offered by Congress to establish that a subpoena advances a valid legislative purpose. The more detailed and substantial the evidence of Congress's legislative purpose, the better. See Watkins , 354 U.S. at 201, 205, 77 S.Ct. 1173 (preferring such evidence over "vague" and "loosely worded" evidence of Congress's purpose). That is particularly true when Congress contemplates legislation that raises sensitive constitutional issues, such as legislation concerning the Presidency. In such cases, it is "impossible" to conclude that a subpoena is designed to advance a valid legislative purpose unless Congress adequately identifies its aims and explains why the President's information will advance its consideration of the possible legislation. Id. , at 205-206, 214-215.

Fourth, courts should be careful to assess the burdens imposed on the President by a subpoena. We have held that burdens on the President's time and attention stemming from judicial process and litigation, without more, generally do not cross constitutional lines. See Vance, ante , --- U.S. at ---- - ----, 140 S.Ct. at 2425 - 2427 ; Clinton , 520 U.S. at 704-705, 117 S.Ct. 1636. But burdens imposed by a congressional subpoena should be carefully scrutinized, for they stem from a rival political branch that has an ongoing relationship with the President and incentives to use subpoenas for institutional advantage.

Other considerations may be pertinent as well; one case every two centuries does not afford enough experience for an exhaustive list.

When Congress seeks information "needed for intelligent legislative action," it "unquestionably" remains "the duty of all citizens to cooperate." Watkins , 354 U.S. at 187, 77 S.Ct. 1173 (emphasis added). Congressional subpoenas for information from the President, however, implicate special concerns regarding the separation of powers. The courts below did not take adequate account of those concerns. The judgments of the Courts of Appeals for the D. C. Circuit and the Second Circuit are vacated, and the cases are remanded for further proceedings consistent with this opinion.

It is so ordered.

Justice THOMAS, dissenting.

*2037Three Committees of the U. S. House of Representatives issued subpoenas to several accounting and financial firms to obtain the personal financial records of the President, his family, and several of his business entities. The Committees do not argue that these subpoenas were issued pursuant to the House's impeachment power. Instead, they argue that the subpoenas are a valid exercise of their legislative powers.

Petitioners challenge the validity of these subpoenas. In doing so, they call into question our precedents to the extent that they allow Congress to issue legislative subpoenas for the President's private, nonofficial documents. I would hold that Congress has no power to issue a legislative subpoena for private, nonofficial documents-whether they belong to the President or not. Congress may be able to obtain these documents as part of an investigation of the President, but to do so, it must proceed under the impeachment power. Accordingly, I would reverse the judgments of the Courts of Appeals.

I

I begin with the Committees' claim that the House's legislative powers include the implied power to issue legislative subpoenas. Although the Founders understood that the enumerated powers in the Constitution included implied powers, the Committees' test for the scope of those powers is too broad.

"The powers of the legislature are defined, and limited; and that those limits may not be mistaken, or forgotten, the constitution is written." Marbury v. Madison , 1 Cranch 137, 176, 5 U.S. 137, 2 L.Ed. 60 (1803). The structure of limited and enumerated powers in our Constitution denotes that "[o]ur system of government rests on one overriding principle: All power stems from the consent of the people." U. S. Term Limits, Inc. v. Thornton , 514 U.S. 779, 846, 115 S.Ct. 1842, 131 L.Ed.2d 881 (1995) (THOMAS, J., dissenting). As a result, Congress may exercise only those powers given by the people of the States through the Constitution.

The Founders nevertheless understood that an enumerated power could necessarily bring with it implied powers. The idea of implied powers usually arises in the context of the Necessary and Proper Clause, which gives Congress the power to "make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof." Art. I, § 8, cl. 18. As I have previously explained, the Necessary and Proper Clause simply "made explicit what was already implicit in the grant of each enumerated power." United States v. Comstock , 560 U.S. 126, 161, 130 S.Ct. 1949, 176 L.Ed.2d 878 (2010) (dissenting opinion). That is, "the grant of a general power includes the grant of incidental powers for carrying it out." Bray, "Necessary and Proper" and "Cruel and Unusual": Hendiadys in the Constitution, 102 Va. L. Rev. 687, 741 (2016).

The scope of these implied powers is very limited. The Constitution does not sweep in powers "of inferior importance, merely because they are inferior." McCulloch v. Maryland , 4 Wheat. 316, 408, 4 L.Ed. 579 (1819). Instead, Congress "can claim no powers which are not granted to it by the constitution, and the powers actually granted, must be such as are expressly given, or given by necessary implication." Martin v. Hunter's Lessee , 1 Wheat. 304, 326, 4 L.Ed. 97 (1816). In sum, while the Committees' theory of an implied power is not categorically wrong, that power *2038must be necessarily implied from an enumerated power.

II

At the time of the founding, the power to subpoena private, nonofficial documents was not included by necessary implication in any of Congress' legislative powers. This understanding persisted for decades and is consistent with the Court's first decision addressing legislative subpoenas, Kilbourn v. Thompson , 103 U.S. 168, 26 L.Ed. 377 (1881). The test that this Court created in McGrain v. Daugherty , 273 U.S. 135, 47 S.Ct. 319, 71 L.Ed. 580 (1927), and the majority's variation on that standard today, are without support as applied to private, nonofficial documents.1

A

The Committees argue that Congress wields the same investigatory powers that the British Parliament did at the time of the founding. But this claim overlooks one of the fundamental differences between our Government and the British Government: Parliament was supreme. Congress is not.

I have previously explained that "the founding generation did not subscribe to Blackstone's view of parliamentary supremacy." Department of Transportation v. Association of American Railroads , 575 U.S. 43, 74, 135 S.Ct. 1225, 191 L.Ed.2d 153 (2015) (opinion concurring in judgment). "Parliament's violations of the law of the land had been a significant complaint of the American Revolution." Id., at 74-75, 135 S.Ct. 1225. "And experiments in legislative supremacy in the States had confirmed the idea that even the legislature must be made subject to the law." Id. , at 75, 135 S.Ct. 1225.

James Wilson, signer of the Constitution and future Justice, explained this difference to the Pennsylvania ratifying convention: "Blackstone will tell you, that in Britain [the supreme power] is lodged in the British Parliament; and I believe there is no writer on the other side of the Atlantic" who thought otherwise. 2 Documentary History of the Ratification of the Constitution 471 (M. Jensen ed. 1976) (Documentary History). In the United States, however, "the supreme, absolute, and uncontrollable authority, remains with the people." Id. , at 472. And "[t]he Constitution plainly sets forth the 'few and defined' powers that Congress may exercise." Comstock , 560 U.S. at 159, 130 S.Ct. 1949 (THOMAS, J., dissenting); see also McCulloch , 4 Wheat. at 405 ; Marbury , 1 Cranch at 176. This significant difference means that Parliament's powers and Congress' powers are not necessarily the same.

In fact, the plain text of the Constitution makes clear that they are not. The Constitution expressly denies to Congress some of the powers that Parliament exercised. Article I, for example, prohibits bills of attainder, § 9, cl. 3, which Parliament used to "sentenc[e] to death one or more specific persons." United States v. Brown , 381 U.S. 437, 441, 85 S.Ct. 1707, 14 L.Ed.2d 484 (1965). A legislature can hardly be considered supreme if it lacks the power to pass bills of attainder, which Justice Story called the "highest power of sovereignty." 3 Commentaries on the Constitution of the United States § 1338, p. 210 (1833). Relatedly, the Constitution prohibits ex post facto laws, § 9, cl. 3, reinforcing the fact *2039that Congress' power to punish is limited.2 And in a system in which Congress is not supreme, the individual protections in the Bill of Rights, such as the prohibition on unreasonable searches and seizures, meaningfully constrain Congress' power to compel documents from private citizens. Cf. 1 St. George Tucker, Blackstone's Commentaries 203-205, n. § (1803); see also D. Currie, The Constitution in Congress: The Federalist Period, 1789-1801, p. 268 (1997).

Furthermore, Kilbourn -this Court's first decision on the constitutionality of legislative subpoenas-emphasized that Parliament had more powers than Congress. There, the congressional respondents relied on Parliament's investigatory power to support a legislative subpoena for testimony and documents. The Court rejected the analogy because the judicial powers of the House of Commons-the lower house of Parliament-exceeded the judicial functions of the House of Representatives. Kilbourn , supra, at 189. At bottom, Kilbourn recognized that legislative supremacy was decisively rejected in the framing and ratification of our Constitution, which casts doubt on the Committees' claim that they have power to issue legislative subpoenas to private parties.

B

The subpoenas in these cases also cannot be justified based on the practices of 18th-century American legislatures. Amici supporting the Committees resist this conclusion, but the examples they cite materially differ from the legislative subpoenas at issue here.

First, amici cite investigations in which legislatures sought to compel testimony from government officials on government matters. The subjects included military affairs, taxes, government finances, and the judiciary. Potts, Power of Legislative Bodies To Punish for Contempt, 74 U. Pa. L. Rev. 691, 708, 709, 710, 716-717 (1926) (Potts); see also E. Eberling, Congressional Investigations: A Study of the Origin and Development of the Power of Congress To Investigate and Punish for Contempt 18 (1928) (Eberling). But the information sought in these examples was official, not private. Underscoring this distinction, at least one revolutionary-era State Constitution permitted the legislature to "call for all public or official papers and records, and send for persons, whom they may judge necessary in the course of their inquiries, concerning affairs relating to the public interest." Md. Const., Art. X (1776) (emphasis added).

Second, 18th-century legislatures conducted nonlegislative investigations. For example, the New York colonial legislature tasked one committee with investigating a nuisance complaint and gave it the "power to send for persons, papers and records." Eberling 18; see also id. , at 19 (investigation of a government contract obtained by alleged wrongdoing); Potts 716 (investigation of armed resistance). But to describe this category is to distinguish it. Here, the Committees assert only a legislative purpose.

Third, colonial and state legislatures investigated and punished insults, libels, and bribery of members. For example, the Pennsylvania colonial assembly investigated "injurious charges, and slanderous Aspersions *2040against the Conduct of the late Assembly" made by two individuals. Id. , at 710 (internal quotation marks omitted); see also id. , at 717; Eberling 20-21. But once again, to describe this category is to distinguish it because the subpoenas here are justified only as incidental to the power to legislate, not the power to punish libels or bribery. In short, none of the examples from 18th-century colonial and state history support a power to issue a legislative subpoena for private, nonofficial documents.

C

Given that Congress has no exact precursor in England or colonial America, founding-era congressional practice is especially informative about the scope of implied legislative powers. Thus, it is highly probative that no founding-era Congress issued a subpoena for private, nonofficial documents. Although respondents could not identify the first such legislative subpoena at oral argument, Tr. of Oral Arg. 56, Congress began issuing them by the end of the 1830s. However, the practice remained controversial in Congress and this Court throughout the first century of the Republic.

1

In an attempt to establish the power of Congress to issue legislative subpoenas, the Committees point to an investigation of Government affairs and an investigation under one of Congress' enumerated privileges. Both precedents are materially different from the subpoenas here.

In 1792, the House authorized a Committee to investigate a failed military expedition led by General Arthur St. Clair. 3 Hinds' Precedents of the House of Representatives of the United States § 1725, pp. 79-80 (1907) (Hinds). The Committee was "empowered to call for such persons, papers and records as may be necessary to assist their inquiries." Ibid. But the Committee never subpoenaed private, nonofficial documents, which is telling. Whereas a subpoena for Government documents does not implicate concerns about property rights or the Fourth Amendment "right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures," a subpoena for private, nonofficial documents raises those questions. Thus, the power to subpoena private documents, which the Committee did not exercise, is a far greater power and much less likely to be implied in Congress' legislative powers.

In 1832, the House investigated Representative Samuel Houston for assaulting Representative William Stanberry. Stanberry had accused Houston of collusion with Secretary of War John Eaton in connection with a bid for a Government contract, and the House initiated an investigation into the truthfulness of Stanberry's accusation. 8 Cong. Deb. 2550, 3022-3023 (1832). The House subpoenaed witnesses to testify, and one of them brought official correspondence between the Secretary of War and the President. H. R. Rep. No. 502, 22d Cong., 1st Sess. 64, 66-67 (1832). But official documents are obviously different from nonofficial documents. Moreover, the subpoenas were issued pursuant to the House's enumerated privilege of punishing its own Members, Art. I, § 5, not as part of its legislative powers. Because these subpoenas were not issued pursuant to a legislative power, they do not aid the Committees' case.

2

As late as 1827, a majority of the House declined to authorize the Committee on Manufactures to subpoena documents, amid concerns that it was unprecedented. During the debate over the resolution, one *2041opponent remarked that "[t]here is no instance under this Government, within my recollection, where this power has been given for the mere purpose of enabling a committee of this House to adjust the details of an ordinary bill." 4 Cong. Deb. 865-866 (Rep. Strong); see also id. , at 862 (referring to "authority to bring any citizens of the United States ... whom they might choose to send for, and compel them to give answers to every inquiry which should be addressed to them" as "very extraordinary"). Another opponent stated that the Committee had requested a power that had "not heretofore been thought necessary to enable that Committee to acquire correct information." Id. , at 866 (Rep. Storrs). A third called it "not only novel and extraordinary, but wholly unnecessary." Id. , at 874 (Rep. Stewart); see also id. , at 884-885 (Rep. Wright). No supporter of the resolution offered a specific precedent for doing so, and the House ultimately authorized the Committee to send for persons only. Id. , at 889-890.

This debate is particularly significant because of the arguments made by both sides. Proponents made essentially the same arguments the Committees raise here-that the power to send for persons and papers was necessary to inform Congress as it legislated. Id. , at 871 (Rep. Livingston). Opponents argued that this power was not part of any legislative function. Id. , at 865-866 (Rep. Strong). They also argued that the House of Commons provided no precedent because Congress was a body of limited and enumerated powers. Id. , at 882 (Rep. Wood). And in the end, the opponents prevailed. Thus, through 1827, the idea that Congress had the implied power to issue subpoenas for private documents was considered "novel," "extraordinary," and "unnecessary." Id. , at 874.

3

By the end of the 1830s, Congress began issuing legislative subpoenas for private, nonofficial documents. See Eberling 123-126. Still, the power to demand information from private parties during legislative investigations remained controversial.

In 1832, the House authorized a Committee to "inspect the books, and to examine into the proceedings of the Bank of the United States, to report thereon, and to report whether the provisions of its charter have been violated or not." 8 Cong. Deb. 2160, 2164. The House gave the Committee "power to send for persons and papers." Id., at 2160. The power to inspect the books of the Bank of the United States is not itself a clear example of a legislative subpoena for private, nonofficial documents, because the Bank was a federally chartered corporation and was required to allow Congress to inspect its books. App. to 8 Cong. Deb. 54 (1833). The investigation itself appears to have ranged more widely, however, leading Congressman John Quincy Adams to criticize

"investigations which must necessarily implicate not only the president and directors of the bank, and their proceedings, but the rights, the interests, the fortunes, and the reputation of individuals not responsible for those proceedings, and whom neither the committee nor the House had the power to try, or even accuse before any other tribunal." Ibid.

Adams continued that such an investigation "bears all the exceptionable and odious properties of general warrants and domiciliary visits." Ibid. He also objected that the Committee's investigation of the Bank was tantamount to punishment and thus was in tension with the constitutional prohibitions on "passing any bill of attainder [or] ex post facto law." Id., at 60. Thus, even when Congress authorized a Committee *2042to send for private papers, the constitutionality of doing so was questioned.

An 1859 Senate investigation, which the Court of Appeals cited as precedent, underscores that legislative subpoenas to private parties were a 19th-century innovation. Following abolitionist John Brown's raid at Harper's Ferry, Senate Democrats opened an investigation apparently designed to embarrass opponents of slavery. As part of the investigation, they called private individuals to testify. Senator Charles Sumner, a leading opponent of slavery, railed against the proceedings:

"I know it is said that this power is necessary in aid of legislation . I deny the necessity. Convenient , at times, it may be; but necessary , never . We do not drag the members of the Cabinet or the President to testify before a committee in aid of legislation ; but I say, without hesitation, they can claim no immunity which does not belong equally to the humblest citizen." Cong. Globe, 36th Cong., 1st Sess., 3007 (1860).

Sumner also addressed the matter of Parliament's powers, calling them "more or less inapplicable" because "[w]e live under a written Constitution, with certain specified powers; and all these are restrained by the tenth amendment." Ibid. For Sumner, as for Adams, the power to issue legislative subpoenas to private parties was a "dangerous absurdity" with no basis in the text or history of the Constitution. Ibid.3

4

When this Court first addressed a legislative subpoena, it refused to uphold it. After casting doubt on legislative subpoenas generally, the Court in Kilbourn v. Thompson , 103 U.S. 168, held that the subpoena at issue was unlawful because it sought to investigate private conduct.

In 1876, the House created a special Committee to investigate the failure of a major bank, which caused the loss of federal funds and related to financial speculation in the District of Columbia. Id. , at 171. The Committee issued a subpoena to Kilbourn, an employee of the bank. Id., at 172. When he refused to answer questions or produce documents, the House held him in contempt and arrested him. Id. , at 173. After his release, he sued the Speaker, several Committee members, and the Sergeant at Arms for damages.

The Court discussed the arguments for an "impli[ed]" power to issue legislative subpoenas. Id. , at 183. As the Court saw it, there were two arguments: "1, its exercise by the House of Commons of England ... and, 2d, the necessity of such a power to enable the two Houses of Congress to perform the duties and exercise the powers which the Constitution has conferred on them." Ibid.

The Court rejected the first argument. It found "no difference of opinion as to [the] origin" of the House of Commons' subpoena power:

"[T]he two Houses of Parliament were each courts of judicature originally, which, though divested by usage, and by statute, probably, of many of their judicial functions, have yet retained so much of that power as enables them, like any other court, to punish for a contempt of these privileges and authority that the power rests." Id., at 184.

Even after the division of Parliament into two houses, "[t]o the Commons was left the power of impeachment, and, perhaps, *2043others of a judicial character, and jointly they exercised, until a very recent period, the power of passing bills of attainder for treason and other high crimes which are in their nature punishment for crime declared judicially by the High Court of Parliament." Ibid. By contrast, the House of Representatives "is in no sense a court, ... exercises no functions derived from its once having been a part of the highest court of the realm," and has no judicial functions beyond "punishing its own members and determining their election." Id. , at 189. The Court thus rejected the notion that Congress inherited from Parliament an implied power to issue legislative subpoenas.

The Court did not reach a conclusion on the second theory that a legislative subpoena power was necessary for Congress to carry out its legislative duties. But it observed that, based on British judicial opinions, not "much aid [is] given to the doctrine, that this power exists as one necessary to enable either House of Congress to exercise successfully their function of legislation." Ibid. The Court referred to a collection of 18th- and 19th-century English decisions grounding the Parliamentary subpoena power in that body's judicial origins. Id., at 184-189 (citing Burdett v. Abbott , 104 Eng. Rep. 501 (K. B. 1811); Brass Crosby's Case , 95 Eng. Rep. 1005 (C. P. 1771); Stockdale v. Hansard , 112 Eng. Rep. 1112 (K. B. 1839); and Kielley v. Carson , 13 Eng. Rep. 225 (P. C. 1841)). The Court placed particular emphasis on Kielley , in which the Privy Council held that the Legislative Assembly of Newfoundland lacked a power to punish for contempt. The Privy Council expressly stated that the House of Commons could punish for contempt

" 'not because it is a representative body with legislative functions, but by virtue of ancient usage and prescription ... which forms a part of the common law of the land, and according to which the High Court of Parliament before its division, and the Houses of Lords and Commons since, are invested with many privileges, that of punishment for contempt being one.' " Kilbourn , 103 U.S. at 188-189.

This Court also noted that the Privy Council "discusse[d] at length the necessity of this power in a legislative body for its protection, and to enable it to discharge its law-making functions, and decide[d] against the proposition." Id. , at 189. Although the Court did not have occasion to decide whether the legislative subpoena in that case was necessary to the exercise of Congress' legislative powers, its discussion strongly suggests the subpoena was unconstitutional.4

The Court instead based its decision on the fact that the subpoena at issue "ma[de] inquiry into the private affairs of the citizen." Id. , at 190. Such a power, the Court reasoned, "is judicial and not legislative," id. , at 193, and "no judicial power is vested in the Congress or either branch of it, save in the cases" of punishing Members, compelling Members' attendance, judging elections and qualifications, and impeachment and trial, id. , at 192-193. Notably, the Court found no indication that the House "avowed to impeach the secretary," or else "the whole aspect of the case would have been changed." Id. , at 193. Even though *2044the Court decided Kilbourn narrowly, it clearly entertained substantial doubts about the constitutionality of legislative subpoenas for private documents.

D

Nearly half a century later, in McGrain v. Daugherty , the Court reached the question reserved in Kilbourn -whether Congress has the power to issue legislative subpoenas. It rejected Kilbourn 's reasoning and upheld the power to issue legislative subpoenas as long as they were relevant to a legislative power. Although McGrain involved oral testimony, the Court has since extended this test to subpoenas for private documents. The Committees rely on McGrain , but this line of cases misunderstands both the original meaning of Article I and the historical practice underlying it.

1

Shortly before Attorney General Harry Daugherty resigned in 1924, the Senate opened an investigation into his " 'alleged failure' " to prosecute monopolists, the protagonists of the Teapot Dome scandal, and " 'many others.' " McGrain , 273 U.S. at 151, 47 S.Ct. 319. The investigating Committee issued subpoenas to Daugherty's brother, Mally, who refused to comply and was arrested in Ohio for failure to testify. Id. , at 152-154. Mally petitioned for a writ of habeas corpus, and the District Court discharged him, based largely on Kilbourn . Ex parte Daugherty , 299 F. 620 (SD Ohio 1924). The Deputy Sergeant at Arms who arrested Mally directly appealed to this Court, which reversed.

The Court concluded that, "[i]n actual legislative practice[,] power to secure needed information by [investigating and compelling testimony] has long been treated as an attribute of the power to legislate." McGrain , 273 U.S. at 161, 47 S.Ct. 319. The Court specifically found that "[i]t was so regarded in the British Parliament and in the Colonial legislatures before the American Revolution" and that "a like view has prevailed and been carried into effect in both houses of Congress and in most of the state legislatures." Ibid. But the authority cited by the Court did not support that proposition. The Court cited the 1792 investigation of St. Clair's defeat, in which it appears no subpoena was issued, supra, at 2040 - 2041, and the 1859 Senate investigation of John Brown's raid on Harper's Ferry, which led to an impassioned debate. 273 U.S. at 162-164, 47 S.Ct. 319. Thus, for the reasons explained above, the examples relied on in McGrain are materially different from issuing a legislative subpoena for private, nonofficial documents. See supra, at 2040, 2041 - 2042.5

The Court acknowledged Kilbourn, but erroneously distinguished its discussion regarding the constitutionality of legislative subpoenas as immaterial dicta. McGrain , supra , at 170-171, 47 S.Ct. 319 (quoting Kilbourn , supra, at 189 ). The Court concluded that "the two houses of Congress, in their separate relations, possess not only such powers as are expressly granted to them by the Constitution, but such auxiliary powers as are necessary and appropriate to make the express powers effective." McGrain , supra, at 173, 47 S.Ct. 319.

Instead of relying on Kilbourn 's analysis, McGrain developed a test that rested heavily on functional considerations. The Court wrote that "[a] legislative body cannot legislate wisely or effectively in the *2045absence of information respecting the conditions which the legislation is intended to affect or change." 273 U.S. at 175, 47 S.Ct. 319. Because "mere requests for such information often are unavailing, and also that information which is volunteered is not always accurate or complete," "some means of compulsion are essential to obtain what is needed." Ibid.

The Court thus concluded that Congress could issue legislative subpoenas, provided that "the purpose for which the witness's testimony was sought was to obtain information in aid of the legislative function." Id., at 176, 47 S.Ct. 319. The Court has since applied this test to subpoenas for papers without any further analysis of the text or history of the Constitution. See Eastland v. United States Servicemen's Fund , 421 U.S. 491, 504-505, 95 S.Ct. 1813, 44 L.Ed.2d 324 (1975). The majority today modifies that test for cases involving the President, but it leaves the core of the power untouched. Ante , at 2035 - 2036.

2

The opinion in McGrain lacks any foundation in text or history with respect to subpoenas for private, nonofficial documents. It fails to recognize that Congress, unlike Parliament, is not supreme. It does not cite any specific precedent for issuing legislative subpoenas for private documents from 18th-century colonial or state practice. And it identifies no founding-era legislative subpoenas for private documents.6

Since McGrain , the Court has pared back Congress' authority to compel testimony and documents. It has held that certain convictions of witnesses for contempt of Congress violated the Fifth Amendment. See Watkins v. United States , 354 U.S. 178, 77 S.Ct. 1173, 1 L.Ed.2d 1273 (1957) (Due Process Clause); Quinn v. United States , 349 U.S. 155, 75 S.Ct. 668, 99 L.Ed. 964 (1955) (Self-Incrimination Clause); see also Barenblatt v. United States , 360 U.S. 109, 153-154, 79 S.Ct. 1081, 3 L.Ed.2d 1115 (1959) (Black, J., dissenting). It has also affirmed the reversal of a conviction on the ground that the Committee lacked authority to issue the subpoena. See United States v. Rumely , 345 U.S. 41, 73 S.Ct. 543, 97 L.Ed. 770 (1953). And today, it creates a new four-part, nonexhaustive test for cases involving the President. Ante , at 2035 - 2036. Rather than continue our trend of trying to compensate for McGrain , I would simply decline to apply it in these cases because it is readily apparent that the Committees have no constitutional authority to subpoena private, nonofficial documents.

III

If the Committees wish to investigate alleged wrongdoing by the President and obtain documents from him, the Constitution provides Congress with a special mechanism for doing so: impeachment.7

A

It is often acknowledged, "if only half-heartedly honored," that one of the motivating *2046principles of our Constitution is the separation of powers. Association of American Railroads , 575 U.S. at 74, 135 S.Ct. 1225 (THOMAS, J., concurring in judgment). The Framers recognized that there are three forms of governmental power: legislative, executive and judicial. The Framers also created three branches: Congress, the President, and the Judiciary. The three powers largely align with the three branches. To a limited extent, however, the Constitution contains "a partial intermixture of those departments for special purposes." The Federalist No. 66, p. 401 (C. Rossiter ed. 1961) (A. Hamilton). One of those special purposes is the system of checks and balances, and impeachment is one of those checks.

The Constitution grants the House "the sole Power of Impeachment," Art. I, § 2, cl. 5, and it specifies that the President may be impeached for "Treason, Bribery, or other high Crimes and Misdemeanors," Art. II, § 4. The founding generation understood impeachment as a check on Presidential abuses. In response to charges that impeachment "confounds legislative and judiciary authorities in the same body," Alexander Hamilton called it "an essential check in the hands of [Congress] upon the encroachments of the executive." The Federalist No. 66, at 401-402. And, in the Virginia ratifying convention, James Madison identified impeachment as a check on Presidential abuse of the treaty power. 10 Documentary History 1397.

B

The power to impeach includes a power to investigate and demand documents. Impeachments in the States often involved an investigation. In 1781, the Virginia Legislature began what Edmund Randolph called an "impeachment" of then-Governor Thomas Jefferson. P. Hoffer & N. Hull, Impeachment in America, 1635-1805, p. 85 (1984). This "most publicized and far-reaching impeachment inquiry for incompetence" included an " 'inquir[y] into the conduct of the executive of this state for the last two months.' " Ibid. The legislatures of New Jersey, id. , at 92, and Pennsylvania, id. , at 93-95, similarly investigated officials through impeachment proceedings.

Reinforcing this understanding, the founding generation repeatedly referred to impeachment as an "inquest." See 4 Debates on the Constitution 44 (J. Elliot ed. 1854) (speech of A. Maclaine) (referring to the House as "the grand inquest of the Union at large"); The Federalist No. 65, at 397 (Hamilton) (referring to the House as "a method of NATIONAL INQUEST "); 2 Records of the Federal Convention 154 (M. Farrand ed. 1911) (record from the Committee of Detail stating that "[t]he House of Representatives shall be the grand Inquest of this Nation; and all Impeachments shall be made by them"); see also Mass. Const., ch. 1, § 3, Art. VI (1780) (referring to the Massachusetts House of Representatives as "the Grand Inquest of this Commonwealth"). At the time, an "inquest" referred to an "[i]nquiry, especially that made by a Jury" or "the Jury itself." N. Bailey, Universal Etymological Dictionary (22d ed. 1770).

The Founders were also aware of the contemporaneous impeachment of Warren Hastings in England, in which the House of Commons heard witnesses before voting to impeach. P. Marshall, The Impeachment of Warren Hastings 40-41, 58 (1965). In the first impeachment under the new Constitution, Congressmen cited the Hastings impeachment as precedent for several points, including the power to take testimony before impeaching. 7 Annals of Cong. 456 (1797) (Rep. Rutledge); id. , at 459 (Rep. Sitgreaves); id., at 460 (Rep. Gallatin).

*2047Other evidence from the 1790s confirms that the power to investigate includes the power to demand documents. When the House of Representatives sought documents related to the Jay Treaty from President George Washington, he refused to provide them on the ground that the House had no legislative powers relating to the ratification of treaties. 5 Annals of Cong. 760-762 (1796). But he carefully noted that "[i]t does not occur that the inspection of the papers asked for can be relative to any purpose under the cognizance of the House of Representatives, except that of an impeachment; which the resolution has not expressed." Id., at 760. In other words, he understood that the House can demand documents as part of its power to impeach.

This Court has also long recognized the power of the House to demand documents. Even as it questioned the power to issue legislative subpoenas, the Court in Kilbourn acknowledged the ability to "compel the attendance of witnesses, and their answer to proper questions" when "the question of ... impeachment is before either body acting in its appropriate sphere on that subject." 103 U.S. at 190.

I express no view today on the boundaries of the power to demand documents in connection with impeachment proceedings. But the power of impeachment provides the House with authority to investigate and hold accountable Presidents who commit high crimes or misdemeanors. That is the proper path by which the Committees should pursue their demands.

IV

For nearly two centuries, until the 1970s, Congress never attempted to subpoena documents to investigate wrongdoing by the President outside the context of impeachment. Congress investigated Presidents without opening impeachment proceedings. See, e.g., 2 Hinds § 1596, at 1043-1045 (President James Buchanan). But it never issued a subpoena for private, nonofficial documents as part of those non-impeachment inquiries. Perhaps most strikingly, one proposed request for official documents from the President was amended after objection so that it " 'requested' " them rather than " 'direct[ing]' " the President to provide them. 3 id. , § 1895, at 193.

Insisting that the House proceed through its impeachment power is not a mere formality. Unlike contempt, which is governed by the rules of each chamber, impeachment and removal constitutionally requires a majority vote by the House and a two-thirds vote by the Senate. Art. I, § 2, cl. 5; § 3, cl. 6. In addition, Congress has long thought it necessary to provide certain procedural safeguards to officials facing impeachment and removal. See, e.g. , 3 Annals of Cong. 903 (1793) (Rep. W. Smith). Finally, initiating impeachment proceedings signals to the public the gravity of seeking the removal of a constitutional officer at the head of a coordinate branch. 940 F.3d 710, 776 (CADC 2019) (Rao, J., dissenting).

* * *

Congress' legislative powers do not authorize it to engage in a nationwide inquisition with whatever resources it chooses to appropriate for itself. The majority's solution-a nonexhaustive four-factor test of uncertain origin-is better than nothing. But the power that Congress seeks to exercise here has even less basis in the Constitution than the majority supposes. I would reverse in full because the power to subpoena private, nonofficial documents is not a necessary implication of Congress' legislative powers. If Congress wishes to obtain these documents, it should proceed through the impeachment power. Accordingly, I respectfully dissent.

Justice ALITO, dissenting.

*2048Justice THOMAS makes a valuable argument about the constitutionality of congressional subpoenas for a President's personal documents. In these cases, however, I would assume for the sake of argument that such subpoenas are not categorically barred. Nevertheless, legislative subpoenas for a President's personal documents are inherently suspicious. Such documents are seldom of any special value in considering potential legislation, and subpoenas for such documents can easily be used for improper non-legislative purposes. Accordingly, courts must be very sensitive to separation of powers issues when they are asked to approve the enforcement of such subpoenas.

In many cases, disputes about subpoenas for Presidential documents are fought without judicial involvement. If Congress attempts to obtain such documents by subpoenaing a President directly, those two heavyweight institutions can use their considerable weapons to settle the matter. See ante , at 2030 - 2031 (opinion of the Court) ("Congress and the President maintained this tradition of negotiation and compromise-without the involvement of this Court-until the present dispute"). But when Congress issues such a subpoena to a third party, Congress must surely appreciate that the Judiciary may be pulled into the dispute, and Congress should not expect that the courts will allow the subpoena to be enforced without seriously examining its legitimacy.

Whenever such a subpoena comes before a court, Congress should be required to make more than a perfunctory showing that it is seeking the documents for a legitimate legislative purpose and not for the purpose of exposing supposed Presidential wrongdoing. See ante , at 2031 - 2032. The House can inquire about possible Presidential wrongdoing pursuant to its impeachment power, see ante , at 2045 - 2047 (THOMAS, J., dissenting), but the Committees do not defend these subpoenas as ancillary to that power.

Instead, they claim that the subpoenas were issued to gather information that is relevant to legislative issues, but there is disturbing evidence of an improper law enforcement purpose. See 940 F.3d 710, 767-771 (CADC 2019) (Rao, J., dissenting). In addition, the sheer volume of documents sought calls out for explanation. See 943 F.3d 627, 676-681 (CA2 2019) (Livingston, J., concurring in part and dissenting in part).

The Court recognizes that the decisions below did not give adequate consideration to separation of powers concerns. Therefore, after setting out a non-exhaustive list of considerations for the lower courts to take into account, ante , at 2035 - 2036, the Court vacates the judgments of the Courts of Appeals and sends the cases back for reconsideration. I agree that the lower courts erred and that these cases must be remanded, but I do not think that the considerations outlined by the Court can be properly satisfied unless the House is required to show more than it has put forward to date.

Specifically, the House should provide a description of the type of legislation being considered, and while great specificity is not necessary, the description should be sufficient to permit a court to assess whether the particular records sought are of any special importance. The House should also spell out its constitutional authority to enact the type of legislation that it is contemplating, and it should justify the scope of the subpoenas in relation to the articulated legislative needs. In addition, it should explain why the subpoenaed information, as opposed to information available from other sources, is needed. Unless the House is required to make a *2049showing along these lines, I would hold that enforcement of the subpoenas cannot be ordered. Because I find the terms of the Court's remand inadequate, I must respectfully dissent.

2.4.2 Presidential Controls 2.4.2 Presidential Controls

In 2001, well before she became a Supreme Court Justice, Elena Kagan captured everyone's attention with the following paragraph:

The history of the American administrative state is the history of competition among different entities for control of its policies. All three branches of government - the President, Congress, and Judiciary - have participated in this competition; so too have the external constituencies and internal staff of the agencies. Because of the stakes of the contest and the strength of the claims and weapons possessed by the contestants, no single entity has emerged finally triumphant, or is ever likely to do so. But at different times, one or another has come to the fore and asserted at least a comparative primacy in setting the direction and influencing the outcome of administrative process. In this time, that institution is the Presidency. We live today in an era of presidential administration.

Elena Kagan, Presidential Administration, 114 Harv. L. Rev. 2246, 2246 (2001). Kagan claimed that modern Presidents, from President Reagan onward, have assumed unprecedented control over the administrative state. Not only have modern Presidents used their position to "in large measure set the administrative agenda for key agencies" by helping to direct agencies, id. at 2248 (note that this practice is itself constitutionally controversial, see Peter L. Strauss, Overseer, or "The Decider"? The President in Administrative Law, 75 Geo. Wash. L. Rev. 696 (2007)(arguing that when Congress delegates discretion to heads of agencies, the President has no authority to direct particular outcomes)), but they have all endorsed and augmented institutional machinery for the centralized oversight of agency action, id. at 2247-48. This machinery is located in the Office of Information and Regulatory Affairs (OIRA), which is a subagency of the White House Office of Management and Budget. Under a series of Executive Orders, each President since Regan has consolidated authority within OIRA to review and, if necessary, "return" proposed agency actions, effectively nixing them.

This subsection provides an overview of this process, starting with President Clinton's Executive Order 12,866, which is still in effect and provides the baseline set of procedures that OIRA implements to effectuate presidential control of the administrative state. The subsection then focuses on perhaps the key oversight mechanism that OIRA deploys: the requirement that agencies provide regulatory impact analyses (RIAs) that demonstrate the need for the action. Often, these analyses contain detailed cost-benefit analyses, and OIRA has provided detailed guidance on how to conduct these analyses. Knowing something about this process is essential for any regulatory lawyer.

Although critics have, since the very beginning of this trend towards presidential administration, argued that it is often deployed in a myopically anti-regulatory manner, see Nicholas Bagley & Richard L. Revesz, Centralized Oversight of the Regulatory State , 106 Colum. L. Rev. 1260 (2006), Kagan argued in Presidential Administration that Presidents of decidedly different ideologies have been able to put their stamp on presidential control to achieve whatever agenda they happen to have--de-regulatory, pro-regulatory, or something else. See Kagan, supra, at 2248-49.

Kagan's view may be vindicated by two recent developments in this space that have the potential to fundamentally change how presidential administration through OIRA works. President Biden's Executive Order 14,094 seeks to "modernize" the regulatory review process, and revisions to OMB Circular A-4 (the George W. Bush-era document that provides guidance to agencies on how to conduct rigorous cost-benefit analyses that will pass muster with OIRA) seek to rescue cost-benefit analysis from claims that it is inherently anti-regulatory. These changes represent another example of modern Presidents putting their own idiosyncratic stamp on presidential administration. 

2.4.2.1 Executive Order 12,866 of Sept. 30, 1993, 58 Fed. Reg. No. 190 (Oct. 4, 1993) 2.4.2.1 Executive Order 12,866 of Sept. 30, 1993, 58 Fed. Reg. No. 190 (Oct. 4, 1993)

The American people deserve a regulatory system that works for them,

not against them: a regulatory system that protects and improves their health,

safety, environment, and well-being and improves the performance of the

economy without imposing unacceptable or unreasonable costs on society;

regulatory policies that recognize that the private sector and private markets

are the best engine for economic growth; regulatory approaches that respect

the role of State, local, and tribal governments; and regulations that are

effective, consistent, sensible, and understandable. We do not have such

a regulatory system today.

 

With this Executive order, the Federal Government begins a program to

reform and make more efficient the regulatory process. The objectives of

this Executive order are to enhance planning and coordination with respect

to both new and existing regulations; to reaffirm the primacy of Federal

agencies in the regulatory decision-making process; to restore the integrity

and legitimacy of regulatory review and oversight; and to make the process

more accessible and open to the public. In pursuing these objectives, the

regulatory process shall be conducted so as to meet applicable statutory

requirements and with due regard to the discretion that has been entrusted

to the Federal agencies.

 

Accordingly, by the authority vested in me as President by the Constitution

and the laws of the United States of America, it is hereby ordered as

follows:

 

Section 1. Statement of Regulatory Philosophy and Principles.

 

(a) The Regulatory Philosophy. Federal agencies should promulgate only

such regulations as are required by law, are necessary to interpret the law,

or are made necessary by compelling public need, such as material failures

of private markets to protect or improve the health and safety of the public,

the environment, or the well-being of the American people. In deciding

whether and how to regulate, agencies should assess all costs and benefits

of available regulatory alternatives, including the alternative of not regulating.

Costs and benefits shall be understood to include both quantifiable measures

(to the fullest extent that these can be usefully estimated) and qualitative

measures of costs and benefits that are difficult to quantify, but nevertheless

essential to consider. Further, in choosing among alternative regulatory approaches,

agencies should select those approaches that maximize net benefits

(including potential economic, environmental, public health and safety, and

other advantages; distributive impacts; and equity), unless a statute requires

another regulatory approach.

 

(b) The Principles of Regulation. To ensure that the agencies’ regulatory

programs are consistent with the philosophy set forth above, agencies should

adhere to the following principles, to the extent permitted by law and

where applicable:

 

(1) Each agency shall identify the problem that it intends to address

(including, where applicable, the failures of private markets or public

institutions that warrant new agency action) as well as assess the significance

of that problem.

 

(2) Each agency shall examine whether existing regulations (or other law)

have created, or contributed to, the problem that a new regulation is intended

to correct and whether those regulations (or other law) should be modified to

achieve the intended goal of regulation more effectively.

 

(3) Each agency shall identify and assess available alternatives to direct

regulation, including providing economic incentives to encourage the desired

behavior, such as user fees or marketable permits, or providing

information upon which choices can be made by the public.

 

(4) In setting regulatory priorities, each agency shall consider, to the

extent reasonable, the degree and nature of the risks posed by various

substances or activities within its jurisdiction.

 

(5) When an agency determines that a regulation is the best available

method of achieving the regulatory objective, it shall design its regulations

in the most cost-effective manner to achieve the regulatory objective. In

doing so, each agency shall consider incentives for innovation, consistency,

predictability, the costs of enforcement and compliance (to the government,

regulated entities, and the public), flexibility, distributive impacts, and

equity.

 

(6) Each agency shall assess both the costs and the benefits of the intended

regulation and, recognizing that some costs and benefits are difficult to

quantify, propose or adopt a regulation only upon a reasoned determination

that the benefits of the intended regulation justify its costs.

 

(7) Each agency shall base its decisions on the best reasonably obtainable

scientific, technical, economic, and other information concerning the need

for, and consequences of, the intended regulation.

 

(8) Each agency shall identify and assess alternative forms of regulation

and shall, to the extent feasible, specify performance objectives, rather

than specifying the behavior or manner of compliance that regulated entities

must adopt.

 

(9) Wherever feasible, agencies shall seek views of appropriate State, local,

and tribal officials before imposing regulatory requirements that might

significantly or uniquely affect those governmental entities. Each agency

shall assess the effects of Federal regulations on State, local, and tribal

governments, including specifically the availability of resources to carry

out those mandates, and seek to minimize those burdens that uniquely

or significantly affect such governmental entities, consistent with achieving

regulatory objectives. In addition, as appropriate, agencies shall seek to

harmonize Federal regulatory actions with related State, local, and tribal

regulatory and other governmental functions.

 

(10) Each agency shall avoid regulations that are inconsistent, incompatible,

or duplicative with its other regulations or those of other Federal agencies.

 

(11) Each agency shall tailor its regulations to impose the least burden

on society, including individuals, businesses of differing sizes, and other

entities (including small communities and governmental entities), consistent

with obtaining the regulatory objectives, taking into account, among

other things, and to the extent practicable, the costs of cumulative regulations.

 

(12) Each agency shall draft its regulations to be simple and easy to

understand, with the goal of minimizing the potential for uncertainty

and litigation arising from such uncertainty.

 

Sec. 2. Organization. An efficient regulatory planning and review process

is vital to ensure that the Federal Government’s regulatory system best

serves the American people.

 

(a) The Agencies. Because Federal agencies are the repositories of significant

substantive expertise and experience, they are responsible for developing

regulations and assuring that the regulations are consistent with applicable

law, the President’s priorities, and the principles set forth in this Executive

order.

 

(b) The Office of Management and Budget. Coordinated review of agency

rulemaking is necessary to ensure that regulations are consistent with applicable

law, the President’s priorities, and the principles set forth in this Executive

order, and that decisions made by one agency do not conflict with

the policies or actions taken or planned by another agency. The Office

of Management and Budget (OMB) shall carry out that review function.

Within OMB, the Office of Information and Regulatory Affairs (OIRA) is

the repository of expertise concerning regulatory issues, including methodologies

and procedures that affect more than one agency, this Executive order,

and the President’s regulatory policies. To the extent permitted by law,

OMB shall provide guidance to agencies and assist the President, the Vice

President, and other regulatory policy advisors to the President in regulatory

planning and shall be the entity that reviews individual regulations, as

provided by this Executive order.

 

(c) The Vice President. The Vice President is the principal advisor to

the President on, and shall coordinate the development and presentation

of recommendations concerning, regulatory policy, planning, and review,

as set forth in this Executive order. In fulfilling their responsibilities under

this Executive order, the President and the Vice President shall be assisted

by the regulatory policy advisors within the Executive Office of the President

and by such agency officials and personnel as the President and the Vice

President may, from time to time, consult.

 

Sec. 3. Definitions. For purposes of this Executive order:

 

(b) ‘‘Agency,’’ unless otherwise indicated, means any authority of the

United States that is an ‘‘agency’’ under 44 U.S.C. 3502(1), other than those

considered to be independent regulatory agencies, as defined in 44 U.S.C.

3502(10).

 

(d) ‘‘Regulation’’ or ‘‘rule’’ means an agency statement of general applicability

and future effect, which the agency intends to have the force and effect

of law, that is designed to implement, interpret, or prescribe law or policy

or to describe the procedure or practice requirements of an agency. It does

not, however, include:

 

(1) Regulations or rules issued in accordance with the formal rulemaking

provisions of 5 U.S.C. 556, 557;

 

(2) Regulations or rules that pertain to a military or foreign affairs function

of the United States, other than procurement regulations and regulations

involving the import or export of non-defense articles and services;

 

(3) Regulations or rules that are limited to agency organization, management,

or personnel matters; or

 

(4) Any other category of regulations exempted by the Administrator of

OIRA.

 

(f) ‘‘Significant regulatory action’’ means any regulatory action that is

likely to result in a rule that may:

 

(1) Have an annual effect on the economy of $100 million or more or

adversely affect in a material way the economy, a sector of the economy,

productivity, competition, jobs, the environment, public health or safety,

or State, local, or tribal governments or communities;

 

(2) Create a serious inconsistency or otherwise interfere with an action

taken or planned by another agency;

 

(3) Materially alter the budgetary impact of entitlements, grants, user fees,

or loan programs or the rights and obligations of recipients thereof; or

 

(4) Raise novel legal or policy issues arising out of legal mandates, the

President’s priorities, or the principles set forth in this Executive order.

 

Sec. 4. Planning Mechanism. In order to have an effective regulatory program,

to provide for coordination of regulations, to maximize consultation and

the resolution of potential conflicts at an early stage, to involve the public

and its State, local, and tribal officials in regulatory planning, and to ensure

that new or revised regulations promote the President’s priorities and the

principles set forth in this Executive order, these procedures shall be followed,

to the extent permitted by law:

 

(a) Agencies’ Policy Meeting. Early in each year’s planning cycle, the

Vice President shall convene a meeting of the Advisors and the heads

of agencies to seek a common understanding of priorities and to coordinate

regulatory efforts to be accomplished in the upcoming year.

 

(b) Unified Regulatory Agenda. For purposes of this subsection, the term

‘‘agency’’ or ‘‘agencies’’ shall also include those considered to be independent

regulatory agencies, as defined in 44 U.S.C. 3502(10). Each agency shall

prepare an agenda of all regulations under development or review, at a

time and in a manner specified by the Administrator of OIRA. The description

of each regulatory action shall contain, at a minimum, a regulation identifier

number, a brief summary of the action, the legal authority for the action,

any legal deadline for the action, and the name and telephone number

of a knowledgeable agency official. Agencies may incorporate the information

required under 5 U.S.C. 602 and 41 U.S.C. 402 into these agendas.

 

(c) The Regulatory Plan. For purposes of this subsection, the term ‘‘agency’’

or ‘‘agencies’’ shall also include those considered to be independent regulatory

agencies, as defined in 44 U.S.C. 3502(10). (1) As part of the Unified

Regulatory Agenda, beginning in 1994, each agency shall prepare a Regulatory

Plan (Plan) of the most important significant regulatory actions that the

agency reasonably expects to issue in proposed or final form in that fiscal

year or thereafter. The Plan shall be approved personally by the agency

head and shall contain at a minimum:

 

(A) A statement of the agency’s regulatory objectives and priorities and

how they relate to the President’s priorities;

 

(B) A summary of each planned significant regulatory action including,

to the extent possible, alternatives to be considered and preliminary estimates

of the anticipated costs and benefits;

 

(C) A summary of the legal basis for each such action, including whether

any aspect of the action is required by statute or court order;

 

(D) A statement of the need for each such action and, if applicable,

how the action will reduce risks to public health, safety, or the environment,

as well as how the magnitude of the risk addressed by the action

relates to other risks within the jurisdiction of the agency;

 

(E) The agency’s schedule for action, including a statement of any applicable

statutory or judicial deadlines; and

 

(F) The name, address, and telephone number of a person the public

may contact for additional information about the planned regulatory action.

 

(2) Each agency shall forward its Plan to OIRA by June 1st of each

year.

 

(3) Within 10 calendar days after OIRA has received an agency’s Plan,

OIRA shall circulate it to other affected agencies, the Advisors, and the

Vice President.

 

(4) An agency head who believes that a planned regulatory action of

another agency may conflict with its own policy or action taken or planned

shall promptly notify, in writing, the Administrator of OIRA, who shall

forward that communication to the issuing agency, the Advisors, and the

Vice President.

 

(5) If the Administrator of OIRA believes that a planned regulatory action

of an agency may be inconsistent with the President’s priorities or the

principles set forth in this Executive order or may be in conflict with

any policy or action taken or planned by another agency, the Administrator

of OIRA shall promptly notify, in writing, the affected agencies, the Advisors,

and the Vice President.

 

(6) The Vice President, with the Advisors’ assistance, may consult with

the heads of agencies with respect to their Plans and, in appropriate instances,

request further consideration or inter-agency coordination.

 

(7) The Plans developed by the issuing agency shall be published annually

in the October publication of the Unified Regulatory Agenda. This publication

shall be made available to the Congress; State, local, and tribal governments;

and the public. Any views on any aspect of any agency Plan, including

whether any planned regulatory action might conflict with any other planned

or existing regulation, impose any unintended consequences on the public,

or confer any unclaimed benefits on the public, should be directed to the

issuing agency, with a copy to OIRA.

 

(d) Regulatory Working Group. Within 30 days of the date of this Executive

order, the Administrator of OIRA shall convene a Regulatory Working Group

(‘‘Working Group’’), which shall consist of representatives of the heads of

each agency that the Administrator determines to have significant domestic

regulatory responsibility, the Advisors, and the Vice President. The Administrator

of OIRA shall chair the Working Group and shall periodically advise

the Vice President on the activities of the Working Group. The Working

Group shall serve as a forum to assist agencies in identifying and analyzing

important regulatory issues (including, among others (1) the development

of innovative regulatory techniques, (2) the methods, efficacy, and utility

of comparative risk assessment in regulatory decision-making, and (3) the

development of short forms and other streamlined regulatory approaches

for small businesses and other entities). The Working Group shall meet

at least quarterly and may meet as a whole or in subgroups of agencies

with an interest in particular issues or subject areas. To inform its discussions,

the Working Group may commission analytical studies and reports by OIRA,

the Administrative Conference of the United States, or any other agency.

 

(e) Conferences. The Administrator of OIRA shall meet quarterly with

representatives of State, local, and tribal governments to identify both existing

and proposed regulations that may uniquely or significantly affect those

governmental entities. The Administrator of OIRA shall also convene, from

time to time, conferences with representatives of businesses, nongovernmental

organizations, and the public to discuss regulatory issues of common

concern.

 

Sec. 5. Existing Regulations. In order to reduce the regulatory burden on

the American people, their families, their communities, their State, local,

and tribal governments, and their industries; to determine whether regulations

promulgated by the executive branch of the Federal Government have

become unjustified or unnecessary as a result of changed circumstances;

to confirm that regulations are both compatible with each other and not

duplicative or inappropriately burdensome in the aggregate; to ensure that

all regulations are consistent with the President’s priorities and the principles

set forth in this Executive order, within applicable law; and to otherwise

improve the effectiveness of existing regulations:

 

(a) Within 90 days of the date of this Executive order, each agency shall

submit to OIRA a program, consistent with its resources and regulatory

priorities, under which the agency will periodically review its existing significant

regulations to determine whether any such regulations should be modified or

eliminated so as to make the agency’s regulatory program more effective in achieving

the regulatory objectives, less burdensome, or in greater alignment with

the President’s priorities and the principles set forth in this Executive order.

Any significant regulations selected for review shall be included in the

agency’s annual Plan. The agency shall also identify any legislative mandates

that require the agency to promulgate or continue to impose regulations

that the agency believes are unnecessary or outdated by reason of changed

circumstances.

 

(b) The Administrator of OIRA shall work with the Regulatory Working

Group and other interested entities to pursue the objectives of this section.

State, local, and tribal governments are specifically encouraged to assist

in the identification of regulations that impose significant or unique burdens

on those governmental entities and that appear to have outlived their justification

or be otherwise inconsistent with the public interest.

 

(c) The Vice President, in consultation with the Advisors, may identify

for review by the appropriate agency or agencies other existing regulations

of an agency or groups of regulations of more than one agency that affect

a particular group, industry, or sector of the economy, or may identify

legislative mandates that may be appropriate for reconsideration by the

Congress.

 

Sec. 6. Centralized Review of Regulations. The guidelines set forth below

shall apply to all regulatory actions, for both new and existing regulations,

by agencies other than those agencies specifically exempted by the Administrator

of OIRA:

 

(a) Agency Responsibilities. (1) Each agency shall (consistent with its

own rules, regulations, or procedures) provide the public with meaningful

participation in the regulatory process. In particular, before issuing a notice

of proposed rulemaking, each agency should, where appropriate, seek the

involvement of those who are intended to benefit from and those expected

to be burdened by any regulation (including, specifically, State, local, and

tribal officials). In addition, each agency should afford the public a meaningful

opportunity to comment on any proposed regulation, which in most

cases should include a comment period of not less than 60 days. Each

agency also is directed to explore and, where appropriate, use consensual

mechanisms for developing regulations, including negotiated rulemaking.

 

(2) Within 60 days of the date of this Executive order, each agency head

shall designate a Regulatory Policy Officer who shall report to the agency

head. The Regulatory Policy Officer shall be involved at each stage of

the regulatory process to foster the development of effective, innovative,

and least burdensome regulations and to further the principles set forth

in this Executive order.

 

(3) In addition to adhering to its own rules and procedures and to the

requirements of the Administrative Procedure Act, the Regulatory Flexibility

Act, the Paperwork Reduction Act, and other applicable law, each

agency shall develop its regulatory actions in a timely fashion and adhere

to the following procedures with respect to a regulatory action:

 

(A) Each agency shall provide OIRA, at such times and in the manner

specified by the Administrator of OIRA, with a list of its planned

regulatory actions, indicating those which the agency believes are significant

regulatory actions within the meaning of this Executive order.

Absent a material change in the development of the planned regulatory

action, those not designated as significant will not be subject

to review under this section unless, within 10 working days of receipt of the

list, the Administrator of OIRA notifies the agency that OIRA

has determined that a planned regulation is a significant regulatory

action within the meaning of this Executive order. The Administrator

of OIRA may waive review of any planned regulatory action designated

by the agency as significant, in which case the agency need

not further comply with subsection (a)(3)(B) or subsection (a)(3)(C) of

this section.

 

(B) For each matter identified as, or determined by the Administrator

of OIRA to be, a significant regulatory action, the issuing agency shall

provide to OIRA:

 

(i) The text of the draft regulatory action, together with a reasonably

detailed description of the need for the regulatory action and an

explanation of how the regulatory action will meet that need; and

 

(ii) An assessment of the potential costs and benefits of the regulatory

action, including an explanation of the manner in which the

regulatory action is consistent with a statutory mandate and, to the

extent permitted by law, promotes the President’s priorities and

avoids undue interference with State, local, and tribal governments

in the exercise of their governmental functions.

 

(C) For those matters identified as, or determined by the Administrator

of OIRA to be, a significant regulatory action within the scope

of section 3(f)(1), the agency shall also provide to OIRA the following

additional information developed as part of the agency’s decision-making

process (unless prohibited by law):

 

(i) An assessment, including the underlying analysis, of benefits anticipated

from the regulatory action (such as, but not limited to, the

promotion of the efficient functioning of the economy and private

markets, the enhancement of health and safety, the protection of the

natural environment, and the elimination or reduction of discrimination

or bias) together with, to the extent feasible, a quantification

of those benefits;

 

(ii) An assessment, including the underlying analysis, of costs anticipated

from the regulatory action (such as, but not limited to, the

direct cost both to the government in administering the regulation

and to businesses and others in complying with the regulation, and

any adverse effects on the efficient functioning of the economy, private

markets (including productivity, employment, and competitiveness),

health, safety, and the natural environment), together with,

to the extent feasible, a quantification of those costs; and

 

(iii) An assessment, including the underlying analysis, of costs and

benefits of potentially effective and reasonably feasible alternatives

to the planned regulation, identified by the agencies or the public

(including improving the current regulation and reasonably viable

nonregulatory actions), and an explanation why the planned regulatory

action is preferable to the identified potential alternatives.

 

(D) In emergency situations or when an agency is obligated by law

to act more quickly than normal review procedures allow, the agency

shall notify OIRA as soon as possible and, to the extent practicable,

comply with subsections (a)(3)(B) and (C) of this section. For those

regulatory actions that are governed by a statutory or court-imposed

deadline, the agency shall, to the extent practicable, schedule rulemaking

proceedings so as to permit sufficient time for OIRA to conduct

its review, as set forth below in subsection (b)(2) through (4)

of this section.

 

(E) After the regulatory action has been published in the Federal Register

or otherwise issued to the public, the agency shall:

 

(i) Make available to the public the information set forth in subsections

(a)(3)(B) and (C);

 

(ii) Identify for the public, in a complete, clear, and simple manner,

the substantive changes between the draft submitted to OIRA for

review and the action subsequently announced; and

 

(iii) Identify for the public those changes in the regulatory action

that were made at the suggestion or recommendation of OIRA.

(F) All information provided to the public by the agency shall be in

plain, understandable language.

 

(b) OIRA Responsibilities. The Administrator of OIRA shall provide meaningful

guidance and oversight so that each agency’s regulatory actions are

consistent with applicable law, the President’s priorities, and the principles

set forth in this Executive order and do not conflict with the policies

or actions of another agency. OIRA shall, to the extent permitted by law,

adhere to the following guidelines:

 

(1) OIRA may review only actions identified by the agency or by OIRA

as significant regulatory actions under subsection (a)(3)(A) of this section.

 

(2) OIRA shall waive review or notify the agency in writing of the results

of its review within the following time periods:

 

(A) For any notices of inquiry, advance notices of proposed rulemaking,

or other preliminary regulatory actions prior to a Notice of

Proposed Rulemaking, within 10 working days after the date of submission

of the draft action to OIRA;

 

(B) For all other regulatory actions, within 90 calendar days after the

date of submission of the information set forth in subsections (a)(3)(B)

and (C) of this section, unless OIRA has previously reviewed this information

and, since that review, there has been no material change

in the facts and circumstances upon which the regulatory action is

based, in which case, OIRA shall complete its review within 45 days;

and

 

(C) The review process may be extended (1) once by no more than

30 calendar days upon the written approval of the Director and (2)

at the request of the agency head.

 

(3) For each regulatory action that the Administrator of OIRA returns

to an agency for further consideration of some or all of its provisions,

the Administrator of OIRA shall provide the issuing agency a written

explanation for such return, setting forth the pertinent provision of this

Executive order on which OIRA is relying. If the agency head disagrees

with some or all of the bases for the return, the agency head shall so

inform the Administrator of OIRA in writing.

 

(4) Except as otherwise provided by law or required by a Court, in order

to ensure greater openness, accessibility, and accountability in the regulatory

review process, OIRA shall be governed by the following disclosure

requirements:

 

(A) Only the Administrator of OIRA (or a particular designee) shall

receive oral communications initiated by persons not employed by the

executive branch of the Federal Government regarding the substance

of a regulatory action under OIRA review;

 

(B) All substantive communications between OIRA personnel and persons

not employed by the executive branch of the Federal Government

regarding a regulatory action under review shall be governed by

the following guidelines: (i) A representative from the issuing agency

shall be invited to any meeting between OIRA personnel and such

person(s); (ii) OIRA shall forward to the issuing agency, within 10 working

days of receipt of the communication(s), all written communications,

regardless of format, between OIRA personnel and any person

who is not employed by the executive branch of the Federal Government,

and the dates and names of individuals involved in all

substantive oral communications (including meetings to which an

agency representative was invited, but did not attend, and telephone

conversations between OIRA personnel and any such persons); and

(iii) OIRA shall publicly disclose relevant information about such

communication(s), as set forth below in subsection (b)(4)(C) of this

section. (C) OIRA shall maintain a publicly available log that shall contain,

at a minimum, the following information pertinent to regulatory actions

under review:

 

(i) The status of all regulatory actions, including if (and if so, when

and by whom) Vice Presidential and Presidential consideration was

requested;

 

(ii) A notation of all written communications forwarded to an

issuing agency under subsection (b)(4)(B)(ii) of this section; and

 

(iii) The dates and names of individuals involved in all substantive

oral communications, including meetings and telephone conversations,

between OIRA personnel and any person not employed by

the executive branch of the Federal Government, and the subject

matter discussed during such communications.

 

(D) After the regulatory action has been published in the Federal Register

or otherwise issued to the public, or after the agency has announced

its decision not to publish or issue the regulatory action,

OIRA shall make available to the public all documents exchanged between

OIRA and the agency during the review by OIRA under this

section.

 

(5) All information provided to the public by OIRA shall be in plain,

understandable language.

 

Sec. 7. Resolution of Conflicts. To the extent permitted by law, disagreements

or conflicts between or among agency heads or between OMB and any

agency that cannot be resolved by the Administrator of OIRA shall be

resolved by the President, or by the Vice President acting at the request

of the President, with the relevant agency head (and, as appropriate, other

interested government officials). Vice Presidential and Presidential consideration

of such disagreements may be initiated only by the Director, by the

head of the issuing agency, or by the head of an agency that has a significant

interest in the regulatory action at issue. Such review will not be undertaken

at the request of other persons, entities, or their agents.

 

Resolution of such conflicts shall be informed by recommendations developed

by the Vice President, after consultation with the Advisors (and other

executive branch officials or personnel whose responsibilities to the President

include the subject matter at issue). The development of these recommendations

shall be concluded within 60 days after review has been requested.

During the Vice Presidential and Presidential review period, communications

with any person not employed by the Federal Government relating to the

substance of the regulatory action under review and directed to the Advisors

or their staffs or to the staff of the Vice President shall be in writing

and shall be forwarded by the recipient to the affected agency(ies) for inclusion

in the public docket(s). When the communication is not in writing,

such Advisors or staff members shall inform the outside party that the

matter is under review and that any comments should be submitted in

writing.

 

At the end of this review process, the President, or the Vice President

acting at the request of the President, shall notify the affected agency and

the Administrator of OIRA of the President’s decision with respect to the

matter.

 

Sec. 8. Publication. Except to the extent required by law, an agency shall

not publish in the Federal Register or otherwise issue to the public any

regulatory action that is subject to review under section 6 of this Executive

order until (1) the Administrator of OIRA notifies the agency that OIRA

has waived its review of the action or has completed its review without

any requests for further consideration, or (2) the applicable time period

in section 6(b)(2) expires without OIRA having notified the agency that

it is returning the regulatory action for further consideration under section

6(b)(3), whichever occurs first. If the terms of the preceding sentence have

not been satisfied and an agency wants to publish or otherwise issue a ation

through the Vice President, as provided under section 7 of this order.

Upon receipt of this request, the Vice President shall notify OIRA and

the Advisors. The guidelines and time period set forth in section 7 shall

apply to the publication of regulatory actions for which Presidential consideration

has been sought.

 

Sec. 9. Agency Authority. Nothing in this order shall be construed as displacing

the agencies’ authority or responsibilities, as authorized by law.

 

Sec. 10. Judicial Review. Nothing in this Executive order shall affect any

otherwise available judicial review of agency action. This Executive order

is intended only to improve the internal management of the Federal Government

and does not create any right or benefit, substantive or procedural,

enforceable at law or equity by a party against the United States, its agencies

or instrumentalities, its officers or employees, or any other person.

 

Sec. 11. Revocations. Executive Orders Nos. 12291 and 12498; all amendments

to those Executive orders; all guidelines issued under those orders;

and any exemptions from those orders heretofore granted for any category

of rule are revoked.

2.4.2.3 Executive Order 14,094 of Apr. 6, 2023, 88 Fed. Reg. 21,879 (Apr. 11, 2023) 2.4.2.3 Executive Order 14,094 of Apr. 6, 2023, 88 Fed. Reg. 21,879 (Apr. 11, 2023)

Modernizing Regulatory Review

By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to modernize the regulatory process to advance policies that promote the public interest and address national priorities, it is hereby ordered as follows:

Section 1 . Improving the Effectiveness of the Regulatory Review Process. (a) This order supplements and reaffirms the principles, structures, and definitions governing contemporary regulatory review established in Executive Order 12866 of September 30, 1993 (Regulatory Planning and Review), and Executive Order 13563 of January 18, 2011 (Improving Regulation and Regulatory Review). Any provisions of those orders not amended in this order shall remain in effect. This order also further implements the Presidential Memorandum of January 20, 2021 (Modernizing Regulatory Review).

(b) Section 3(f) of Executive Order 12866 is hereby amended to read as follows:

“(f) “Significant regulatory action” means any regulatory action that is likely to result in a rule that may:

(1) have an annual effect on the economy of $200 million or more (adjusted every 3 years by the Administrator of OIRA for changes in gross domestic product); or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, territorial, or tribal governments or communities;

(2) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency;

(3) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or

(4) raise legal or policy issues for which centralized review would meaningfully further the President's priorities or the principles set forth in this Executive order, as specifically authorized in a timely manner by the Administrator of OIRA in each case.”

Sec. 2 . Affirmative Promotion of Inclusive Regulatory Policy and Public Participation. (a) To the extent practicable and consistent with applicable law, regulatory actions should be informed by input from interested or affected communities; State, local, territorial, and Tribal officials and agencies; interested or affected parties in the private sector and other regulated entities; those with expertise in relevant disciplines; and the public as a whole. Opportunities for public participation shall be designed to promote equitable and meaningful participation by a range of interested or affected parties, including underserved communities.

(b) To inform the regulatory planning process, executive departments and agencies (agencies) shall, to the extent practicable and consistent with applicable law:

(i) clarify opportunities for interested persons to petition for the issuance, amendment, or repeal of a rule under 5 U.S.C. 553(e);

(ii) endeavor to respond to such petitions efficiently, in light of agency judgments of available resources and priorities; and

(iii) maintain, subject to available resources, a log of such petitions received, and share with the Administrator of the Office of Information and Regulatory Affairs (OIRA), upon request, information on the status of recently resolved and pending petitions.

(c) To inform the development of regulatory agendas and plans, agencies shall endeavor, as practicable and appropriate, to proactively engage interested or affected parties, including members of underserved communities; consumers; workers and labor organizations; program beneficiaries; businesses and regulated entities; those with expertise in relevant disciplines; and other parties that may be interested or affected. These efforts shall incorporate, to the extent consistent with applicable law, best practices for information accessibility and engagement with interested or affected parties, including, as practicable and appropriate, community-based outreach; outreach to organizations that work with interested or affected parties; use of agency field offices; use of alternative platforms and media for engaging the public; and expansion of public capacity for engaging in the rulemaking process.

(d) The Administrator of OIRA, in consultation with relevant agencies, as appropriate, shall consider guidance or tools to modernize the notice-and-comment process, including through technological changes. These reforms may include guidance or tools to address mass comments, computer-generated comments (such as those generated through artificial intelligence), and falsely attributed comments.

(e) Section 6(b)(4) of Executive Order 12866 establishes a process for persons not employed by the executive branch of the Federal Government to request meetings with OIRA officials regarding the substance of regulatory actions under OIRA review. Public trust in the regulatory process depends on protecting regulatory development from the risk or appearance of disparate and undue influence, including in the OIRA review process. In order to reduce this risk or appearance, the Administrator of OIRA shall, to the extent practicable and consistent with applicable law:

(i) Provide information to facilitate the initiation of meeting requests regarding regulatory actions under OIRA review from potential participants not employed by the executive branch of the Federal Government who have not historically requested such meetings, including those from underserved communities; and

(ii) Implement reforms to improve procedures and policies with respect to OIRA's consideration of meeting requests initiated by persons not employed by the executive branch of the Federal Government regarding the substance of regulatory actions under OIRA review to further the efficiency and effectiveness of such meetings. These reforms may include:

(A) efforts to ensure access for meeting requesters who have not historically requested such meetings;

(B) discouraging meeting requests that are duplicative of earlier meetings with OIRA regarding the same regulatory action by the same meeting requesters;

(C) consolidation of meetings by requester, subject matter, or any other consistently applied factors deemed appropriate to improve efficiency and effectiveness; and

(D) disclosure of data in an open, machine-readable, and accessible format that includes the dates and names of individuals involved in all substantive meetings and the subject matter discussed during such meetings, as required by section 6(b)(4)(C)(iii) of Executive Order 12866, so as to better facilitate transparency and analysis.

Sec. 3 . Improving Regulatory Analysis. (a) Regulatory analysis should facilitate agency efforts to develop regulations that serve the public interest, advance statutory objectives, and are consistent with Executive Order 12866, Executive Order 13563, and the Presidential Memorandum of January 20, 2021 (Modernizing Regulatory Review). Regulatory analysis, as practicable and appropriate, shall recognize distributive impacts and equity, to the extent permitted by law.

(b) Within 1 year of the date of this order, the Director of the Office of Management and Budget, through the Administrator of OIRA and in consultation with the Chair of the Council of Economic Advisers and representatives of relevant agencies, shall issue revisions to the Office of Management and Budget's Circular A–4 of September 17, 2003 (Regulatory Analysis), in order to implement the policy set forth in subsection (a) of this section.

Sec. 4 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

 

2.4.2.4 Draft Revisions to OMB Circular A-4 2.4.2.4 Draft Revisions to OMB Circular A-4

Preamble: Proposed OMB Circular No. A-4, “Regulatory Analysis”

 

Assessing benefits and costs of alternative regulatory options through analysis helps agency policymakers arrive at sound regulatory decisions. It also helps the public, Congress, and the courts understand the effects of those decisions. Careful analysis can facilitate the development of well-designed regulations and thereby increase net benefits for society as a whole. To help support the development of better analysis, the Office of Management and Budget (OMB) has provided guidance to agencies since the 1980s on how to conduct regulatory analysis. The current OMB guidelines were issued in 2003 as OMB Circular No. A-4.

 

In order to encourage continued improvements in the quality of the regulatory analyses prepared by agencies, and pursuant to the Executive Order of April 6, 2023 (Modernizing Regulatory Review) and the Presidential Memorandum of January 20, 2021 (Modernizing Regulatory Review), OMB’s Office of Information and Regulatory Affairs (OIRA) is initiating a process to revise these guidelines. Through revised guidelines, we seek to ensure that analytic guidance reflects new developments in economic and other scientific understanding. OMB, in consultation with the Council of Economic Advisers as well as relevant agencies and Executive Office of the President components, has drafted and proposed revised guidelines which are available at https://www.whitehouse.gov/wp-content/uploads/2023/04/DraftCircularA-4.pdf. OMB now invites public comment on the revised guidelines and is initiating a peer review process with respect to them.

 

Scope of Analysis

 

The proposed revisions to Circular A-4 in the “Scope of Analysis” section would make several changes that respond to issues raised regarding the 2003 Circular, elaborated upon in the discussion below. The revised “Scope of Analysis” section notes that primary analyses of regulations can often continue to focus on effects experienced by citizens and residents of the United States. But it also notes that U.S. citizens and residents are frequently affected by a regulation indirectly, through that regulation’s effects on noncitizens residing abroad, and clarifies that such effects may be important for analysts to estimate. The section also clarifies situations in which including effects experienced by noncitizens residing abroad in a primary analysis may be particularly appropriate. It emphasizes the importance of consistency in the scope of analysis used to analyze benefits and costs. It also provides additional guidance about analysis in the context of regulations that implicate international regulatory cooperation and adds discussion of Executive Order 13609 of May 1, 2012 (Promoting International Regulatory Cooperation) (E.O. 13609). And while most of the section focuses on the geographic scope of analyses, it also clarifies that the temporal scope of analyses should be long enough to encompass all of the important effects that are likely to result from the regulation.

 

 

Developing an Analytic Baseline

 

Despite Circular A-4’s use of future-implying words, such as “forecast,” a common area of confusion in the development of regulatory impact analyses has been the nature of an analytic baseline as a projection of the future in the absence of the regulation being assessed. Proposed revisions to the “Developing an Analytic Baseline” section of the Circular include adding more thorough discussion regarding the differences between the present and the absence-of-regulation future that may be important in characterizing a baseline; narrowing the specific circumstances in which use of a pre-statute baseline is called for; and including more robust discussion of instances in which comparisons of regulatory effects against multiple baselines may be appropriate.

 

Identifying the Need for Federal Regulatory Action

 

Proposed revisions to Circular A-4 (2003)’s material in the section previously titled “The Need for Federal Regulatory Action” primarily fall within two categories.

 

First, the proposed revisions would amend discussion in Circular A-4 to clarify that analysis of a regulation’s anticipated effects can reveal that what was previously assumed to be a need for regulation is not present, or identify additional needs for regulation not previously considered. Proposed revisions would clarify that consideration of the need for federal regulatory action and development of the regulatory analysis is an iterative process. Further, proposed revisions would emphasize that statements about a need for federal regulatory action should generally be supported by evidence in the regulatory analysis. Proposed revisions would also clarify that even when a regulation is implementing or interpreting a statutory requirement, an agency should conduct reasonable inquiries to identify other needs for federal regulatory action.

 

Second, proposed revisions to this section would elaborate and expand upon the existing discussions of market failures and other distortions. As noted in the proposed revisions to Circular A-4, modeling such distortions is often a standard starting point for conducting analyses of regulatory interventions. Proposed revisions would add additional material on the connection between the concept of externalities and common pool resources, club goods, and public goods, as well as the concept of network benefits. Proposed revisions would expand the material on market power to provide further information regarding the sources and effects of market power. Proposed revisions would clarify material in Circular A-4 focusing on asymmetric and imperfect information and distinguish it from behavioral biases; proposed revisions would break out material on behavioral biases into its own section and discuss it separately. And proposed revisions would emphasize improving government operations and service delivery, promoting distributional fairness and equity, and protecting civil rights and civil liberties or advancing democratic values as potential needs for federal regulation by breaking each out into a separate section as well. Proposed revisions to this section would more generally aim to emphasize the critical relationship between identifying market failure—or other distortions—and producing a rigorous regulatory analysis.

 

Market failure is a critical concept in welfare economics. The first fundamental welfare theorem states that competitive equilibrium generates Pareto efficient outcomes under certain conditions. When an equilibrium is Pareto efficient, variations on equilibrium outcomes cannot improve outcomes for one party without worsening outcomes for at least one other party. Violations of these required conditions are often called distortions or market failures. Regulatory action is often motivated by distortions that violate the conditions under which the first fundamental welfare theorem is relevant—whether from market failure, suboptimal service delivery by or operation of public institutions (sometimes referred to in the academic literature as government failure), or behavioral biases—but there are many other legitimate motivations for regulatory action.

  

Developing Benefit and Cost Estimates

 

Many updates are proposed to the material in the “Developing Benefit and Cost Estimates” section, including regarding revealed preference methods, stated preference methods, benefit-transfer methods, general equilibrium analysis, and how to account for non-monetized effects. These proposed revisions largely elaborate on material that was previously present in Circular A-4, with reference to more recent methods and findings in the academic literature, and make other incremental improvements. In addition, a terminological change from discussion of “ancillary benefits and countervailing risks” to “additional benefits and costs” has been proposed to clarify that categories of effects such as “ancillary” or “indirect” are not meaningfully different for analytical purposes from categories of effects that are “primary” or “direct.” We solicit comment and feedback on all of these proposed revisions, including on how to ensure that unquantified and non-monetized effects are given appropriate attention in the analysis, such as through summary tables with categories or rank ordering.

 

One part of this section that was largely left unchanged in the proposed revisions is the material on monetizing health and safety benefits and costs (including the subsections on non- fatal risks, fatality risks, and risks to children). As the proposed revised version of the Circular notes, that material is essentially unchanged, with the exception of relatively minor edits, including correcting outdated language, providing a missing citation to an already-referenced source, and updating to reflect current agency estimates of value of statistical life (VSL).

 

Although the Circular’s discussion of health and safety metrics appears in another section—“Analytical Approaches”—it is worth mentioning here because health and safety metrics are often analyzed in conjunction with monetization methods such as VSL. The proposed revisions to the “Analytical Approaches” section would also leave it largely unchanged, with relatively minor edits, including correcting outdated language and clarifying the appropriate usage of quality-adjustment for non-fatal outcomes in footnote 8.

 

While recognizing that potential modifications to material on monetizing health and safety benefits and costs and health and safety metrics could be advantageous, OMB believes that continued reliance on this material is generally appropriate at this time. While you may submit comments on potential revisions to this material, OMB does not intend to substantially revise this material at this time.

   

Distributional Effects

 

Review of Agencies’ Analyses of Distributional Effects

 

Circular A-4 directs agencies to include an analysis of the expected distributional effects of their regulatory actions:

 

Your regulatory analysis should provide a separate description of distributional effects . . . so that decision makers can properly consider them along with the effects on economic efficiency.      Where distributive effects are thought to be important, the effects of various regulatory alternatives should be described quantitatively to the extent possible, including the magnitude, likelihood, and severity of impacts on particular groups.

 

E.O. 12866, similarly, requires agencies to consider distributive impacts when deciding among alternatives. However, recent studies of agencies’ regulatory impact analyses have found that most contain little analysis of regulations’ effects on particular groups, aside from analysis of effects on small businesses included to comply with the requirements of the Regulatory Flexibility Act. One study looked at 24 economically significant rules and found that a few contained some information about the health risk reductions expected from the rule for specific groups, often children, but none provided a distributional analysis of net benefits. The expanded guidance on distributional analysis in the proposed revisions to Circular A-4, described in more detail below, is intended to assist agencies in expanding estimation of disparate effects of rules on individual groups.

 

Rationale for Distributional Analysis

 

While a regulation may have positive net benefits for society as a whole, it may make some individuals, firms, or other entities better off and some individuals, firms, or other entities worse off. If it were possible to redistribute income from the winners to the losers using a costless, non-distortionary tax and transfer scheme, everyone could potentially be made better off (or no worse off) by a regulation for which there is a positive total net willingness to pay.

 

However, this theoretical possibility is not likely to be realized or even approximated. As such, analyzing the full welfare effects of regulations requires analyzing the incidence, or distribution, of their effects. In addition, policymakers may be concerned about the effects of regulations on particular groups—such as the incidence of benefits and costs of regulations on lower income groups and other underserved communities—for a variety of reasons. As a result, it can be important for policymakers to have estimates of the distributional effects of regulatory alternatives (along with estimates of the aggregate net benefits of these alternatives).

 

Considerations in Distributional Analysis

 

In developing proposed revisions to Circular A-4, we considered whether the Circular should call for agencies to generally produce distributional analyses in regulatory impact analyses for certain types of rules. After consideration, we have proposed revisions that do not adopt this approach. Regardless of the type of rule, not all rules of a given type will necessarily have important distributional effects, distributional analysis can be a complex undertaking (especially when the expected incidence of benefits and costs is fully analyzed), and agencies’ resources for conducting economic analyses of regulatory actions are scarce. For this reason, we have proposed revisions that emphasize agency discretion to perform preliminary screening of rules to determine which are most likely to have significant differentiated effects on particular demographic groups and to analyze important distributional effects in those cases.

 

In developing proposed revisions, we also considered whether Circular A-4 should specify which demographic or other groups should be analyzed when agencies conduct distributional analysis. Such a specification would ensure greater uniformity in agencies’ analysis and allow comparisons across rules. However, Circular A-4 applies across a large number of different agencies that analyze rules addressing a wide variety of issues and the important distributional effects and concerns are likely to differ across rules. Therefore, the proposed revisions would include a list of possible groups to examine, but would not strictly call for the analysis of particular groups across all rules, nor is the list exhaustive of groups that may be affected by rules. That said, to the extent possible given available evidence, we tentatively conclude that it is nevertheless generally advisable for agencies to maintain consistency when identifying groups of interest across their regulations—particularly for regulations addressing similar concerns—or else explain their rationale for not doing so. OMB solicits comment on this approach.

 

Weights and Benefit-Cost Analysis

 

A standard assumption in economics, informed by empirical evidence (as discussed below), is that an additional $100 given to a low-income individual increases the welfare of that individual more than an additional $100 given to a wealthy individual. Traditional benefit-cost analysis, which applies unitary weights to measures of willingness to pay, does not usually take into account how distributional effects may affect aggregate welfare because of differences in individuals’ marginal utility of income. Related to the topic of distributional analysis is the question of whether agencies should be permitted or encouraged to develop estimates of net benefits using weights that take account of these differences. The proposed revisions to Circular A-4 suggest that agencies may wish to consider weights for each income group affected by a regulation that equal the median income of the group divided by median U.S. income, raised to the power of the elasticity of marginal utility times negative one.

 

Treatment of Uncertainty

 

The treatment of uncertainty in Circular A-4 warrants revisiting as the literature and the tools to assess uncertainty have evolved significantly since guidance was issued in 2003. Two important changes in the proposed revisions to this section of Circular A-4 include no longer stating that an assumption of risk-neutrality is generally appropriate, and providing more guidance on how to calculate risk-adjusted benefit or cost values when willingness-to-pay or willingness-to-accept values do not already reflect individuals’ risk preferences.

 

Objective and Subjective Probability

 

Circular A-4 states: “[w]henever possible, you should use appropriate statistical techniques to determine a probability distribution of the relevant outcomes.” While there are various statistical techniques to determine probability distributions, we note that both objective and subjective probability distributions have garnered much academic attention and have relevance to benefit-cost analysis of regulations. Generally, Federal benefit-cost analysis deploys extrapolation of historical information to derive future probability distributions in assessing expected benefits and costs. But depending on the quality of historical information and the different use of such information (e.g., extrapolation far into the future), subjective probability may be more informative for regulatory analysis. We seek comment on whether and how to incorporate subjective probability in revisions to the Circular.

 

Risk Preferences

 

Circular A-4 directs agencies to assume “risk neutrality” generally. However, there is a growing literature in measuring risk preferences that may be relevant in regulatory analysis. In particular, there is a growing literature showing that individuals exhibit substantial risk aversion across various contexts. To capture these findings, there are at least two measures of risk preferences that could receive attention: measures of risk preferences that adjust probabilities associated with different goods or assets, and measures of risk preferences that adjust prices as reflected in certainty-equivalent values. We seek comment on how to incorporate risk preferences in revisions to the Circular, and whether the proposed guidance regarding incorporation of risk preferences is sufficiently clear in the “Economic Values of Uncertain Outcomes” section.

 

Treatment of Low-Probability, High-Consequence Events

 

Circular A-4 does not explicitly give guidance on the analysis of low-probability, high- consequence events. Improvements in analyzing these types of events are important as policymakers and the public need information to accurately assess the efficacy of various policies to avoid such disasters as major oil spills or airline crashes. Past Federal benefit-cost analyses have used break-even comparisons or probabilistic risk assessment to analyze low- probability, high-consequence events. We seek comment on improvements in methods that may improve discussion of analysis of low-probability, high-consequence events in revisions to the Circular.

 

Discount Rates

 

Discounting Generally

 

As a general rule, the proposed revisions to Circular A-4 follow the same basic discount rate principles as in Circular A-4; however, the discount rate guidance warrants updating, as the academic literature and financial markets have evolved significantly since the 2003 guidance.

 

There are two trends that are worth noting in particular. First, there has been a persistent decline in real interest rates over the last 40 years; real interest rates on Treasury bonds had already fallen below 3% by 2003, and have remained lower than that level since then even as nominal rates have recently increased. Second, over the last 20 years, the literature on the treatment of the long-term discount rate has evolved substantially. Circular A-4 provides general guidance on how to address discounting over long time periods, and we believe that this guidance should be updated to incorporate advances in the economics literature.

  

A discount rate, as noted in the proposed revision of Circular A-4, is a way to “reflect changes in the valuation of impacts across time.” Specifically, between the present and any given point in the future, the discount rate is the amount by which the future valuation must be adjusted to be expressed in present value terms (after accounting for inflation). Thus, if the annual discount rate is a fixed 5%, $100 a year from now is valued equivalently to about $95.24 today ($100/(1 + 0.05)).

 

There are two primary approaches to determining the social discount rate for regulatory analysis. One is a “normative” or “prescriptive” approach that makes an ethical determination regarding the appropriate weight to place on the welfare of future and current generations. Another approach is “descriptive,” or “positive.” With this approach, “the discount rate is inferred from rates of return that reflect consumers’ actual choices,” such as choices about saving and borrowing. The primary argument for the use of a descriptive approach in the context of benefit-cost analysis is that it enables policymakers “to base resource allocation on the tradeoffs that society actually makes.” For this reason, Circular A-4 recommends—and the proposed revisions would continue to recommend—a descriptive approach to discounting in many circumstances; the remainder of this discussion will focus on descriptive approaches, while recognizing it reflects just one strand of the discounting literature.

 

Estimating an Appropriate Social Rate of Time Preference

 

The social rate of time preference is a term that refers to the discount rate (or schedule of discount rates) that can be used to convert consumption effects across different time periods into a present value. As Circular A-4 notes, “the real rate of return on long-term government debt may provide a fair approximation” of society’s rate of time preference in the near-term. This approximation continues to be commonly advised: the “typical source of information for the risk-free rate would be government bonds.” As the proposed revision to Circular A-4 notes, this rate “is the rate available on riskless personal savings and is therefore a rate at which individuals may increase future consumption at the expense of current consumption,” and “also the rate at which society as a whole can trade current consumption for future consumption.” That is, use of financial market rates are primarily justified because they are a real price at which many individuals, and society as a whole, can trade off consumption over time. In addition, the use of an observable rate helps to establish an objective evidentiary basis for the specific parameters the government uses when developing the analytical basis for policymaking.

 

In Circular A-4, the social rate of time preference rate was estimated using a 30-year average of the rate of return on 10-year Treasury notes less the annual average change in consumer price index (CPI) inflation. Since Circular A-4 was published in 2003, the interest rate on 10-year Treasury notes has declined significantly and persistently, and remains low. This has also occurred in other advanced economies. Some suggest this is due to the policy response to the Great Recession (which started in 2007), but the decline began 20 years prior to the Great Recession.

 

The proposed revision to Circular A-4 would retain the existing method for calculating the social rate of time preference and updating the 30-year average using data from 1993 to 2022, except that the 10-year Treasury Inflation-Protected Securities (TIPS) yield would be used for the years it is available (2003-2022), for the reasons discussed below. Using this method, the proposed revisions would update the estimate of the social rate of time preference to 1.7%.

 

 

Discount Rates over the Long Term

 

Circular A-4 states, and OMB continues to believe, that:

 

special ethical considerations arise when comparing benefits and costs across generations. Although most people demonstrate time preference in their own consumption behavior, it may not be appropriate for society to demonstrate a similar preference when deciding between the well-being of current and future generations. Future citizens who are affected by such choices cannot take part in making them, and today’s society must act with some consideration of their interest.

 

As noted in the draft revision of the Circular, some believe that it is ethically impermissible to discount the welfare of future generations. One study surveyed economists regarding their judgment on what social discount rate should be used for long-lived projects. The lower-bound estimates ranged as low as -3% and the upper-bound estimates ranged as low as 0%, indicating that ethical considerations play a role in economists’ selection of social discount rate when the welfare of future generations is at stake. Even under an approach in which the welfare of future generations is not discounted, it may often still be appropriate to discount future costs and consumption benefits—at a lower rate than for analysis of near-term effects more likely to fall on a single generation—if there is an expectation that future generations may be wealthier and thus will value a marginal dollar of benefits or costs by less than those alive today. An extensive literature uses a prescriptive approach to long-term discounting, grounded in the “special ethical considerations” mentioned above. While acknowledging that literature, the proposed revisions to Circular A-4 primarily discusses a descriptive approach to discounting, including for long term benefits and costs.

 

Circular A-4 also notes that, descriptively, lower rates may be appropriate for discounting benefits and costs far into the future for the independent reason that uncertainty about what specific rates should be used increases over time. Because uncertainty about the discount rate increases over time, “there exists a rigorous generic argument that the future should be discounted at a declining rate that approaches asymptotically its lowest possible value.”

 

Various approaches can be used to incorporate the effects of uncertainty on the discount rate in longer-horizon analyses. Recent research using alternative approaches and specifications consistently produces schedules with rates declining by about 1 to 2 percentage points over a several-hundred-year time horizon, with larger declines associated with higher starting rates. To facilitate agencies’ implementation of appropriate discount rates for time ranges beyond 30 years, OMB is considering including a default schedule of rates in revisions to Circular A-4, while continuing to emphasize that an alternative approach that agencies may choose to take— for both short-term and long-term discounting—is analyzing their regulation in an economic model in which the evolution of the discount rates is endogenous. Agencies may prefer to do so in projecting long-term discount rates, in part, in order to provide consistency with their preferred approach to discounting in the shorter term.

 

The proposed schedule of rates below was generated by OMB, adapting the model from Bauer and Rudebusch (2021) with the starting interest rate initialized at 1.7% (the proposed value of the social rate of time preference for use in near-term analyses). Bauer and Rudebusch (2021) model the interest rate in each year as the sum of a slow-moving trend component and a cyclical component. The slow-moving trend component is a random walk. OMB simulates 100,000 paths for the interest rate, calculates the expected discount factor across these paths, and computes the forward rates consistent with this path of expected discount factors.

 

Years

Discount Rate

2024 – 2089

1.7%

2090 – 2104

1.6%

2105 – 2116

1.5%

2117 – 2127

1.4%

2128 – 2138

1.3%

2139 – 2148

1.2%

2149 – 2161

1.1%

2162 – 2172

1.0%

 

The rates presented in this table are forward rates, meaning the rate provided for a given year is the rate appropriate to discount effects in that year to the previous year. To illustrate the application of these rates, consider a regulation that has only one effect: a benefit of $100 billion dollars in 2150. To calculate the present value of that benefit in 2022, you multiply the benefit by a modified version of the discounting formula for discounting, 1/(1 + the discount rate)t:

$100 billion

PV = (1.017)66 ∗ (1.016)15 ∗ (1.015)12 

∗ (1.014)11 ∗ (1.013)11 ∗ (1.012)10 ∗ (1.011)2

The exponents in the denominator (66, 15, 12, etc.) match the range of years that the particular discount rate covers (1.7% from the year 2023 to 2088, 1.6% from the year 2023 to 2088, etc.). The $100 billion dollar effect is first discounted from 2150 back to 2148 at a 1.1% rate, and then back to 2138 at a 1.2% rate, and so forth back to 2023. In this case, the benefit has a present value of roughly $14 billion. OMB could make year-specific cumulative discount factors available for ease of analysis.

 

OMB proposes to provide this schedule over a 150-year horizon to provide one approach that could be taken in analysis of regulations that may have important effects occurring over long time horizons (with rates extending beyond this time period available from OMB upon agency request). While much of the literature on long-term discounting is in the context of climate change—which may benefit from distinct analytic approaches for many reasons—many categories of regulations may have important benefits and costs far into the future, including those with impacts on children’s lifetime earnings, those affecting long-term health outcomes, or those implicating the efficacy of highly durable infrastructure. However, for most regulations, the appropriate time horizon for analysis will be considerably shorter, and may fall entirely within the first range of years in the schedule above. To reiterate, the schedule of rates in the above table reflects only the effect of uncertainty on the appropriate discount rate, which will be relevant in a variety of regulatory contexts.

 

The model presented above follows one established and tractable approach to dynamic discounting, using data from “historical interest rates” in financial markets to project uncertainty in the path of future rates. Instead of focusing on uncertainty in the underlying growth rate or other parameters, this approach focuses on long-term uncertainty over interest rates.

 

Another established approach to dynamic discounting uses the Ramsey formula, discussed above, where the expected underlying growth rate, other parameters, and their uncertainty can be calibrated on a descriptive basis. This approach is often applied in the context of regulations that affect greenhouse gas emissions, as it allows for integrated consideration of potentially important effects of greenhouse gas emissions on determinants of the social discount rate. That is, such regulations may raise additional special considerations due to the important interactions between the damages caused by climate change and other assumptions that influence the social discount rate, including:

 

·       Economic growth. Economic activity causes greenhouse gas emissions and thus climate damages, which in turn can reduce economic growth.101 Assumptions about the growth of the economy, inclusive of climate damages, can influence discount rates by changing the marginal value of future benefits and costs.

·       Intragenerational equity. Climate change (like certain other long-lasting phenomena) disproportionately affects people who cannot afford to prepare for or cope with its costs. The draft revisions to Circular A-4 in the “Distributional Effects” section describes how differences in marginal utilities of income across people can be reflected in an analysis.

 

Other studies have highlighted additional important interactions between climate change and the social discount rate, including large and uninsurable climate risks and the effects on the relative scarcity of non-market goods. (In both cases, estimating consumption equivalents in each period is an alternative to adjusting the social discount rate.)