This was not just limited to the EPA. As a practice, it needs to be outlawed by congress. The basic law would be simple, that federal agencies cannot settle in the courts with questions involving public policy, with a change in public policy, unless congress passes a resolution to permit such settlement.
It must also clearly state within the law that judicial decisions against agency policy can neither reduce nor increase regulation by that agency, or expenditures by that agency without congressional approval.
This also means that such organizations cannot get backdoor subsidies from federal agencies that throw the cases, unless specifically approved by congress.
Like making ACORN fiduciaries of a housing slush fund.
Wonder if it is not too late to audit the use of those funds ...