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“Prepare Now to Make the Most of a Post-Chevron World,”

news | April 29, 2024 published an article by Hollingsworth LLP Partners Gary Feldon and Matt Malinowski regarding the need for businesses — especially in heavily regulated industries — to prepare now to make the most of a post-Chevron world.

The Chevron doctrine holds that, when reviewing a federal regulation, courts should defer to the relevant agency’s reasonable interpretation of any ambiguous statutory terms. In a pair of decisions expected this summer—Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce—the Supreme Court is overwhelmingly likely to strike down or substantially limit the doctrine. Overruling Chevron will represent a dramatic decrease in the authority wielded by federal agencies.

From the moment the Supreme Court’s decisions set a new legal standard, the government will begin to re-write its regulations and adjust its litigation strategy to adapt to a post-Chevron world. In March of this year, Utah passed a law requiring state agencies to conduct an audit to identify federal regulations that affect them and have been interpreted under Chevron, then provide the results to the state’s attorney general by Jan. 1, 2025.

Hollingsworth LLP advises all businesses adversely impacted by government regulations to work with experienced APA counsel now to conduct what we term a “Chevron audit.” The audit includes identifying the historical impact of Chevron on the regulations governing their industry and assessing whether those regulations (or agency policies implementing them) are likely to be upheld under a new standard that is less deferential to federal agencies.

A new era is about to begin, with a tremendous shift of authority from federal agencies to the courts. Like the state of Utah, businesses affected by federal regulations should be taking stock and preparing to vindicate their rights through affirmative APA litigation.

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