Agency Practices and Judicial Review of Administrative Records in Informal Rulemaking Leland E. Beck , Esq. May 14, 2013 This report was prepared for the consideration of the Administrative Conference of the United States. The views expressed are those of the author and do not necessarily reflect those of the members of the Conference or its committees. ADMINISTRATIVE CONFERENCE OF THE UNITED STATES Agency Practices and Judicial Review of Administrative Records in Informal Rulemaking Leland E. Beck, Report to the Administrative Conference of the United States1 Executive Summary ......................................................................................................................... i I. The “Administrative Record” in Context .................................................................................... 1 A. The Larger Context ................................................................................................................ 3 B. The Administrative Record in the Judicial Review Context .................................................. 6 C. Methodology........................................................................................................................... 7 D. Nomenclature ....................................................................................................................... 10 II. Inputs to the “Whole Record” .................................................................................................. 11 A. Rulemaking’s Public Docket ................................................................................................ 13 1. Notice and an Opportunity to Comment .......................................................................... 13 2. Significant Analyses Required by Law or Executive Order ............................................ 15 B. Variance Between Public Rulemaking Dockets, Rulemaking Records, and Administrative Records. ............................................................................................................................... 16 C. Legal Modifications to the Administrative Record .............................................................. 20 1. Direct Modification .......................................................................................................... 20 2. Indirect Modification: Consideration and Decision Requirements ................................. 22 3. Regulatory Modification .................................................................................................. 24 III. Agency Practices .................................................................................................................... 26 A. Animating Policy Considerations ........................................................................................ 26 B. Defining the Rulemaking and Administrative Record ........................................................ 28 1. Expansively Defining the Rulemaking and Administrative Record ................................ 28 2. Relevancy and Reliance in the Rulemaking or Administrative Record. .......................... 31 3. Including or Excluding Privileged Resources in the Administrative Record for Judicial Review .............................................................................................................................. 32 4. Identifying and Segregating Privileged Materials ............................................................ 37 1 Leland E. Beck, Esq., Private Practitioner. B.A. 1973, M.A. 1975, Kent State University; J.D. 1977, American University; L.L.M. 1981, Harvard University. This report summarizes research performed for and was prepared for the consideration of the Administrative Conference of the United States. The views expressed are those of the author and do not necessarily reflect those of the members of the Conference, its committees, or staff. This report reflects agency questionnaire responses through April 15, 2013, and was revised in response to discussions of the Conference’s Committee on Judicial Review on March 19, April 3, and April 21, 2013. Citation Note: This study utilizes a short-form citation for questionnaire responses from agencies. A list of the responding agencies and short citation forms may be found in Appendix A. May 14, 2013 C. Compiling the Administrative Record .................................................................................. 40 1. The Beginning of Compilation ......................................................................................... 40 2. Contemporaneous Compilation ........................................................................................ 41 3. Electronic Management of Record Compilation. ............................................................. 44 4. Indexing the Rulemaking Record ..................................................................................... 46 D. Electronic Material ............................................................................................................... 49 E. Protected Resources .............................................................................................................. 50 2. Personal Information ........................................................................................................ 52 3. Confidential Business Information ................................................................................... 52 F. Closing and Retiring a Rulemaking Record. ........................................................................ 54 1. Closing the Record ........................................................................................................... 54 2. Presentation to the Decisionmaker ................................................................................... 55 3. Retiring the Rulemaking Record ...................................................................................... 56 IV. Judicial Review of Administrative Records ........................................................................... 57 A. Certification of the Administrative Record for Judicial Review .......................................... 58 1. Preparation of the Administrative Record for Judicial Review ........................................ 58 2. The Certifying Official ..................................................................................................... 60 B. Filing and Transmittal Rules and Practices of the Courts. ................................................... 61 1. District Local Rules and Practice ..................................................................................... 61 2. Court of Appeals Rules and Practices .............................................................................. 63 3. Adaptation and Amendment ............................................................................................. 65 C. Presumption of Regularity and Piercing the Record. ........................................................... 66 D. Introduction of Additional Material into an Administrative Record for Judicial Review .... 67 1. Completion: Existing Material Held by the Agency but Not Included ........................... 68 2. Supplementation: Extra-Record Evidence Not Considered by the Agency .................... 69 E. Discovery Beyond Administrative Records ......................................................................... 73 F. Public Sources and Practicality of Judicial Notice ............................................................... 74 G. Judicial Remedies ................................................................................................................. 76 1. Stays ................................................................................................................................. 76 2. Remand ............................................................................................................................ 78 3. Setting Aside and Injunction ............................................................................................ 78 V. Recommendations ................................................................................................................... 80 Appendix A: Questionnaire Responses and Identifying Acronyms ............................................. 83 Appendix B: Transmittal and Agency Survey Questionnaire ...................................................... 85 May 14, 2013 Executive Summary This study focuses on judicial review of final agency regulations under the Administrative Procedure Act (APA) requirement that a court, if presented with a challenge to agency action under the APA, “review the whole record or those parts of it cited by a party.” 5 U.S.C. § 706. The Supreme Court has made clear that judicial review is to be based on the full administrative record that was before the agency official at the time he or she made the decision to promulgate the final rule. The Court has also held that the APA’s arbitrary and capricious standard of review requires a narrow review and as long as the agency has examined the relevant data and articulated a satisfactory explanation for its action, including a rational connection between the facts found and the choice made, the courts should not disturb that decision. Section I.A. The APA’s administrative record requirements must be read in the larger context of the Federal Records Act requirements that agencies maintain and transfer their official records to the National Archives and Records Administration.