Capitol Insights: Supreme Court gives new hope in the fight against burdensome regulations
Posted on:
Every day, contractors struggle with the consequences of burdensome environmental, labor, and financial regulations. ACCA fights back on behalf of contractors – by lobbying agencies, filing lawsuits, and seeking legislative action – and on June 28 the Supreme Court handed us a powerful new tool against burdensome regulation with its landmark decision in the case of Loper Bright Enterprises v. Raimondo.
Why contractors should care
Since 1984, the Chevron deference doctrine has granted considerable latitude to agencies such as the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA) in interpreting vague laws to promulgate regulations that impact our industry and all small businesses. The resulting web of compliance requirements is difficult to navigate and often far exceeds Congressional intent. In overturning the Chevron deference, the Supreme Court agreed that enough is enough, and the implications for air conditioning contractors are substantial.
It has always been possible to challenge regulations on the basis of unreasonable interpretations of the law. In fact, ACCA, PHCC, and HARDI did just that with a successful 2023 lawsuit to strike down EPA’s ban on non-refillable refrigerant cylinders. The Loper decision, however, opens a whole new line of argument that should bolster new and existing challenges to regulations like the non-condensing furnace ban, walkaround rule, overtime rule, Corporate Transparency Act, independent contractor rules, and many others.
The courts will now have new opportunities to review the actions of an activist administration and future regulators may think twice before overstepping the authority granted to them by Congress. Perhaps more importantly, Congress will need to be more precise and transparent in defining the mechanisms of the laws they pass, providing new opportunities for ACCA and constituents like you to weigh in and hold legislators accountable for the consequences of their actions.
To be clear, this decision is far from an unambiguous win. Some regulations — like the AIM Act’s phasedown of HFC refrigerants – are well defined in statute. Some courts will find that agency interpretations of the law align with Congressional intent. Congress will surely step in to clarify statutory authority underlying some regulations. States may also step in with a patchwork legislation and regulations of their own to backstop vulnerable federal rules. This decision will also bring an extended period of uncertainty as new lawsuits are filed challenging the regulatory environment that underpins your business decisions. ACCA stands ready to serve as your guide and your advocate in the tumultuous months and years to come.
How ACCA is taking action
In July, ACCA President and CEO Barton James sent a letter calling on President Biden to pause all current rulemaking and refrain from all new rulemaking until there is a thorough legal review of statutory authority to proceed. The letter highlights seven specific regulations impacting contractors for which the statutory authority is dubious at best.
ACCA is also partnering with industry allies to highlight shared concerns and promote alternative approaches that are well-grounded in statutory authority. A collective voice through associations like ACCA will be more important than ever as Congressional staff seek advice on the more precise legislative text required by a post-Chevron reality.
How contractors can help
While the Loper decision initially shifts authority to the courts, we expect Congress will soon step in with new legislation to fill the void where courts strike down current regulations. Contractors can help get ready by cultivating relationships with legislators and candidates today.
An easy first step is to take action by seeking Congressional support on regulatory issues listed at acca.org/advocacy. These include regional efficiency standards, the furnace ban, the Overtime Rule, the Joint Employer Rule, and the Walkaround Rule. ACCA staff are then eager to coach you on parlaying these asks into in-person meetings, events, and other opportunities for deeper engagement. Contact govt@acca.org to get started and get involved in ACCA-PAC for even more opportunities.
Finally, it’s more important than ever for ACCA to hear about the specific regulatory roadblocks complicating your business. Please be on the lookout for opportunities to weigh in on ACCA’s 2025-26 policy agenda over the coming months. We then look forward to showcasing and further refining contractor feedback in Greater Austin, Texas at the ACCA 2025 Town Hall Breakfast on Thursday, March 27 at 8:00 AM. See you there!
Read this story and more in the September/October edition of ACCA Now Magazine online.
Posted In: ACCA Now, Government, Polices & Procedures
