EPA to Change the Way It Handles Lawsuits
EPA will no longer be participating in the practice of sue and settle, that is, settling lawsuits with consent agreements which make changes to regulati...
EPA Administrator Scott Pruitt has announced EPA will be ending practice of “sue and settle.”
⚡ TL;DR: EPA ends “sue and settle” practice where third-party groups sued to force regulatory changes via private settlement. New policy: all settlements must go through transparent public comment periods, reducing unexpected regulatory shifts.
In sue and settle, a third-party group sues a federal agency, asking the courts to require the agency to change statutory duties or to enforce specific timelines written within laws. In the past, EPA has settled out of court with these groups through a consent decree or settlement agreement. EPA says the resulting negotiations would often change regulations, causing unreasonable deadlines or commitments to actions which weren’t part of the existing regulations.
These consent agreements were negotiated privately and any new requirements were not eligible for public comment. On top of that, the agency would pay tens of thousands of dollars in attorney’s fees and litigation costs of the groups which were suing them.
⚠️ What’s at stake: Surprise “sue and settle” settlements have historically created expensive, unplanned compliance deadlines. The new transparency policy gives businesses advance notice and a voice during public comment—reducing regulatory shock.
Going forward, EPA promises further transparency and public engagement when it comes to considering any settlement or consent decree.
Concerned about unannounced regulatory changes from pending EPA settlements? Stay ahead by monitoring Federal Register notices. iSi Environmental tracks EPA actions that could affect your compliance posture.
💰 The cost of non-compliance: Unanticipated regulatory settlements have historically cost regulated industries billions in emergency compliance retrofits and operational changes—with no lead time to plan.
Frequently Asked Questions
Q: What is the “sue and settle” practice that EPA discontinued?
Sue and settle is a practice where third-party organizations file lawsuits against the EPA to compel the agency to change statutory duties or enforce specific timelines within environmental laws. EPA historically settled these lawsuits through consent decrees or settlement agreements that created new regulatory requirements without public comment periods.
Q: What were the concerns about EPA’s sue and settle practice?
EPA cited concerns that sue and settle agreements often created unreasonable regulatory deadlines and commitments outside the scope of existing regulations. Additionally, these settlements were negotiated privately without public engagement, and EPA paid tens of thousands of dollars in attorney’s fees and litigation costs for the organizations suing them.
Q: How has EPA’s approach to settlements and consent decrees changed?
Under EPA’s revised policy announced by Administrator Scott Pruitt, the agency committed to greater transparency and public engagement when considering any settlement or consent decree. This ensures that regulatory changes resulting from settlements receive public comment and stakeholder input before finalization.
Q: How does this change affect companies and environmental compliance?
The elimination of sue and settle reduces unexpected regulatory changes negotiated outside public view, providing greater regulatory certainty for companies. iSi Environmental recommends staying informed about EPA settlements and consent decrees through the Federal Register and public notice periods.
Transparency in regulatory change is a huge win for compliance planning. For the first time in decades, businesses can see EPA settlements coming and respond strategically.
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