In Chevron v. NRDC the Supreme Court held that court of appeals, when considering challenges to agency regulations, must give deference to the agency decision unless the regulations are arbitrary or contrary to a statute passed by Congress.

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This statement accurately summarizes the holding in Chevron v. NRDC, which established the legal principle known as Chevron deference. Under this doctrine, courts must defer to reasonable interpretations of ambiguous statutes by federal agencies, unless the agency's interpretation is arbitrary or inconsistent with the statute's plain language.

In Chevron V