NRDC v. Michael Regan, No. 20-1335 (D.C. Cir. 2023)
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In 2011, the Environmental Protection Agency (“EPA”) issued its “final determination to regulate perchlorate in drinking water” under the Safe Drinking Water Act. Drinking Water: Regulatory Determination on Perchlorate. That determination started a clock under the Safe Drinking Water Act requiring EPA to propose regulations within twenty-four months and promulgate regulations within eighteen months of the proposal. But EPA never promulgated perchlorate regulations. Instead, nine years later, the agency purported to withdraw its regulatory determination. Natural Resources Defense Council (“NRDC”) petitioned for review of this action, arguing that EPA lacks the authority to withdraw a regulatory determination under the Act and that, even if EPA possesses such authority, it acted arbitrarily and capriciously by doing so. EPA, joined by Intervenor American Water Works Association, defends its action.
The DC Circuit granted NRDC’s petition, vacated EPA’s withdrawal of its regulatory determination, and remand to the agency for further proceedings. The court held the Safe Drinking Water Act does not permit EPA to withdraw a regulatory determination. The court explained that first, and most fundamentally, EPA’s interpretation of what Congress intended in the statute cannot overcome the statute’s directive that the agency “shall” regulate. And second, the history EPA cites is not inconsistent with the court’s interpretation. The 1996 amendments undoubtedly gave the agency more discretion in determining which contaminants to consider for regulation and whether to regulate them in the first instance. But they also balanced that discretion with a mandatory scheme requiring EPA to regulate after it determines to do so.
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