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Writer's pictureEli Macha, President

SCOTUS Overturns Chevron Deference: Effects on EPA RMP and OSHA PSM | Blog No. 36

The recent Supreme Court decision to overturn Chevron deference, a legal doctrine established nearly 40 years ago, has substantial implications for the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA), particularly affecting their Risk Management Program (RMP) and Process Safety Management (PSM) rules.


Overview of Chevron Deference and the Appeal Case

Chevron deference originated from the 1984 Supreme Court case Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. It mandated that courts defer to a federal agency's interpretation of an ambiguous statute it administers, provided the interpretation is reasonable. This principle enabled agencies like the EPA and OSHA to implement complex regulations based on their interpretation.


The recent Supreme Court decision stemmed from two cases: Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce. These cases involved the National Marine Fisheries Service's (NMFS) requirement for commercial fishing vessels to fund observers for data collection. The petitioners challenged this rule, arguing it overstepped statutory bounds. The Supreme Court's ruling to overturn Chevron deference emerged from these challenges, significantly altering the regulatory landscape​ (Home | Holland & Knight)​​ (American Bar Association)​.


Impacts on EPA's RMP Rules

The EPA's Risk Management Program (RMP) aims to prevent chemical accidents by requiring facilities to develop comprehensive risk management plans. With Chevron overturned, the EPA will face increased judicial scrutiny over its interpretations of the Clean Air Act and other statutes underpinning the RMP. This shift could lead to more frequent legal challenges against new safety measures and updates, potentially delaying their implementation and creating regulatory uncertainty​ (SCOTUSblog)​.


Impacts on OSHA's PSM Rules

Similarly, OSHA's Process Safety Management (PSM) rules, which govern the management of hazardous chemicals, will be impacted. The removal of Chevron deference means that OSHA's interpretations of the Occupational Safety and Health Act will now be subject to more rigorous judicial review. Legal challenges may arise more frequently, contesting OSHA's authority to enforce new or revised safety regulations​ (Home | Holland & Knight)​​ (Beveridge & Diamond PC)​.


Summary

The Supreme Court's decision to overturn Chevron deference represents a significant shift in administrative law, potentially impacting the regulatory processes of the EPA and OSHA. While this change may lead to increased legal challenges and delays, it also provides an opportunity for courts to ensure that agency interpretations align closely with legislative intent and statutory language​ (SCOTUSblog)​​ (Miller Chevalier)​.

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