An administrative agency can issue a declaratory order to terminate a controversy or remove uncertainty in its discretion.[i] According to the Model State Administrative Procedure Act, an agency can issue a declaratory order in response to a petition for that order.

However, an agency cannot issue a declaratory order that can prejudice the rights of a necessary party and also when a party did not give any consent in writing to the determination of the matter by a declaratory order.  A declaratory order has the same status and binding effect as any other order issued in an agency adjudicative proceeding.

[i] 5 USCS § 554(e)