	Introduction

An administrative agency may generally only exercise that authority which is provided to it by Congress. Often, however, congressional delegations of authority are imprecise, and, as a result, agencies must construe ambiguous terms and make interpretive decisions in order to implement Congress's delegation. The Supreme Court, in Chevron U.S.A., Inc. v. Natural Resources Defense Council , outlined a limited role for courts in reviewing these types of agency interpretations. This report will discuss the Chevron decision; explain when Chevron deference applies; highlight common agency statutory interpretations that generally do not receive deference under Chevron ; and review the recent Supreme Court opinion in City of Arlington v. FCC which clarified the applicability of Chevron deference to circumstances in which an agency is interpreting the scope of its own jurisdiction. The Court noted that because Congress has expressly delegated to the administrative agency the authority to interpret the statute through regulation, a judge must not substitute his own interpretation of the statute in question when the agency has provided a permissible construction of the statute. How should courts review statutory language to determine whether Congress has been clear? Chevron Step Two

If a court determines that the statutory language is ambiguous or silent on the particular issue in question, the court must then consider whether the agency's construction of the statute is a "permissible" one. However, the Supreme Court has provided little guidance as to how a court should evaluate whether the agency's interpretation is "permissible" or "reasonable" under Chevron step two. First, the court noted that the language of the statute was "confusing." First, the Chevron decision made clear that a court need only accord deference to an agency interpretation of a statute the agency "administers." An Agency's Interpretation of Its Own Jurisdiction: City of Arlington v. FCC

The Supreme Court recently clarified a long-running dispute over whether an agency's interpretation of the reach of its own jurisdiction (i.e., its power to act) is a type of interpretation that qualifies for Chevron deference. According to the Court, the appropriate way to answer this question is by applying the now famous " Chevron two-step" test.
An administrative agency may generally only exercise that authority which is provided to it by Congress. Often, however, congressional delegations of authority are imprecise, and, as a result, agencies must construe ambiguous terms and make interpretive decisions in order to implement Congress's delegation. The Supreme Court, in Chevron U.S.A., Inc. v. Natural Resources Defense Council, outlined a limited role for courts in reviewing these types of agency interpretations. The now famous "Chevron two-step" test has been arguably the most important pillar of administrative law since the decision was handed down in 1984.
When evaluating whether an agency's interpretation of a statute is valid a court must first look to the language of the statute. If the statutory language is clear, the test stops—the agency must follow, and the court must enforce, the clear and unambiguous commands that Congress provides through statute. However, if a court determines that the statutory language is "silent or ambiguous," then the court may proceed to step two of the Chevron test. Step two requires a reviewing court to determine whether the agency's interpretation "is based on a permissible construction of the statute." The Supreme Court noted that a reviewing court should not impose its own construction of a statute in place of a reasonable interpretation provided by the agency, but should grant the agency's interpretation deference under step two of the Chevron test.
Recently the Supreme Court ruled on the scope of Chevron deference in City of Arlington v. FCC. The Court established that a court must provide an agency with Chevron deference even when the agency is determining the scope of its own jurisdiction to take regulatory action under a statute.
This report will discuss the Chevron decision; explain when Chevron deference applies; highlight common agency statutory interpretations that generally do not receive deference under Chevron; and review the recent Supreme Court opinion in City of Arlington v. FCC which clarified the applicability of Chevron deference to circumstances in which an agency is interpreting the scope of its own jurisdiction.