Administrative Law: Agencies & Rulemaking

What is the primary difference between an executive agency and an independent agency?

The head of an executive agency can be fired by the President at will, whereas the head of an independent agency can only be fired for 'cause.'

What type of statute creates an administrative agency and defines its scope of authority?

An enabling statute (or organic act) creates an administrative agency and defines its powers and responsibilities.

What federal statute governs the procedures administrative agencies must follow when creating rules or adjudicating disputes?

The Administrative Procedure Act (APA) governs the processes by which federal agencies develop and issue regulations and adjudicate claims.

What are the three basic requirements for informal rulemaking under Section 553 of the APA?

Informal rulemaking requires (1) notice of the proposed rule in the Federal Register, (2) an opportunity for public comment, and (3) a concise general statement of the rule's basis and purpose.

When does the APA require an agency to use formal rulemaking procedures instead of informal rulemaking?

Formal rulemaking is required when the enabling statute specifies that rules must be made 'on the record after opportunity for an agency hearing.'

What did the Supreme Court hold in Vermont Yankee Nuclear Power Corp. v. NRDC regarding rulemaking procedures?

The Court held that courts cannot impose additional procedural requirements on agencies beyond those explicitly required by the APA or the agency's enabling statute.

What distinguishes formal adjudication from informal adjudication under the APA?

Formal adjudication involves trial-like procedures presided over by an Administrative Law Judge (ALJ) as required by statute, whereas informal adjudication lacks these strict APA procedural mandates.

Under Mathews v. Eldridge, what three factors must a court balance to determine the specific dictates of procedural due process in agency adjudications?

The court must balance (1) the private interest affected, (2) the risk of erroneous deprivation and the value of additional safeguards, and (3) the government's interest, including administrative burdens.

What is the two-step framework established in Chevron U.S.A., Inc. v. NRDC used for?

The Chevron framework is used by courts to determine whether to defer to an administrative agency's interpretation of an ambiguous statute it administers.

What are the two steps of the Chevron deference test?

Step 1 asks if Congress has directly spoken to the precise question at issue. If the statute is ambiguous, Step 2 asks whether the agency's interpretation is based on a permissible (reasonable) construction of the statute.