SEC. 2. FINDINGS AND PURPOSES.

(a) Findings—Congress finds that:

• Regulatory agencies have entered into numerous consent decrees and settlement agreements that impose limitations on their regulatory authority;
• Such consent decrees and settlement agreements often limit the agency’s ability to regulate in accordance with the terms of the agreement;
• Such agreements can be detrimental to the public interest by reducing the agency’s flexibility to respond to changing circumstances, make policy or managerial choices, or protect the rights of third parties;
• The agencies have an important role to play in regulating industries and protecting the public interest.

(b) Purposes—The purposes of this Act are:

• To ensure that regulatory agencies can regulate in accordance with the terms of a consent decree or settlement agreement;
• To protect the public interest by ensuring that regulatory agencies have sufficient flexibility to respond to changing circumstances, make policy or managerial choices, and protect the rights of third parties.

SEC. 3. DEFINITIONS.

(a) Definitions—In this Act:

• A “covered civil action” means a civil action brought against an agency in the name of one or more individuals, organizations, or entities;
• A “covered consent decree” means a consent decree entered into by an agency under section 9 of title 5, United States Code; and
• A “covered settlement agreement” means a settlement agreement entered into by an agency in accordance with chapter 5 of title 5, United States Code.

(b) Effective date—The term “covered civil action” or “covered consent decree” or “covered settlement agreement” does not apply to any civil action or consent decree or settlement agreement that was entered into before the date of enactment of this Act.

SEC. 4. MOTIONS TO MODIFY CONSENT DECRESSES.

(a) In General—If an agency moves a court to modify a covered consent decree or settlement agreement, the court shall review the motion and the covered consent decree or settlement agreement de novo.

(b) Standard of Review—In reviewing the motion to modify a covered consent decree or settlement agreement under subsection (a), the court shall consider whether the modification would be in the public interest and consistent with the terms of the original consent decree or settlement agreement.

SEC. 5. EFFECTIVE DATE.

(a) In General—This Act applies to:

• Any covered civil action filed on or after the date of enactment of this Act;
• any covered consent decree or settlement agreement proposed to a court on or after the date of enactment of this Act.

(b) Effective Date—The term “covered civil action” or “covered consent decree” or “covered settlement agreement” does not apply to any civil action or consent decree or settlement agreement that was entered into before the date of enactment of this Act.

SEC. 6. ANNUAL REPORTS.

(a) Annual Reports—Each agency shall submit to Congress an annual report that, for the year covered by the report, includes:

• The number, identity, and content of covered civil actions brought against and covered consent decrees or settlement agreements entered against or into by the agency;
• A description of the statutory basis for each covered consent decree or settlement agreement entered against or into by the agency; and
• An award of attorneys’ fees or costs in a civil action resolved by a covered consent decree or settlement agreement entered against or into by the agency.

(b) Content—The annual report submitted to Congress under subsection (a) shall be submitted in writing and shall include such additional information as the Administrator of the Administrative Procedure Act determines is necessary to carry out this section.