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              Con gressionaI
           ~   Research Service






Chevron Deference in the Courts of Appeals



June   8, 2023

Chevron USA.  v Natural Resources Defense Council is one of the most important cases in administrative
law. Decided in 1984, it was the genesis of a legal framework for federal courts to apply when deciding
whether to defer to a federal agency's interpretation of a statute. It has, however, become an increasingly
controversial precedent that the Supreme Court has applied less and less frequently over the last decade.
The Court is now poised to revisit Chevron in the upcoming case Loper Bright Enterprises v Raimondo.
The courts of appeals decide many more Chevron cases than the Supreme Court, and they play an
important role in shaping the Chevron framework. In general, the courts of appeals apply Chevron more
often than the Supreme Court and application of the Chevron framework in the courts of appeals has a
greater bearing on the outcome of the case than at the Supreme Court. An examination of federal courts of
appeals practices applying the Chevron framework therefore sheds light on how the Chevron framework
operates in the vast majority of cases where it is at issue.
A handful of studies have evaluated how the courts of appeals apply Chevron, and the picture that
emerges is markedly different from the way the Supreme Court applies it. Furthermore, a close
examination of the courts of appeals practices themselves reveals significant variations in how Chevron is
applied. Studies have identified large variations in how courts apply Chevron depending on which court
heard the appeal, the agency party to the case, and the subject matter of the appeal, among other factors.
Given this patchwork application of the Chevron framework it can be difficult for agencies and Congress
to reliably predict which agency's statutory interpretation will receive deference under the Chevron
framework. Regardless of the Supreme Court's consideration of Loper Bright Enterprises, Congress
likely has the authority to codify, modify, or eliminate Chevron deference, and therefore can shape
through legislation how the federal courts review agency interpretations of federal statutes.


Background

The Chevron framework is one of a suite of related doctrines that sets out the circumstances under which
courts must defer to an executive agency's interpretation of a federal statute that it administers. Under the
Chevron framework, a court must defer to an executive agency's interpretation of an ambiguous statute
that it administers so long as the agency's interpretation is reasonable. The framework takes its name from
a 1984 Supreme Court case, Chevron U.S.A. v. Natural Resources Defense Council, which sets out a two-
step process for determining whether a court must defer to an agency's statutory interpretation.

                                                                 Congressional Research Service
                                                                   https://crsreports.congress.gov
                                                                                      LSB10976

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