What is required for an agency to make decisions that are discretionary in nature?

To make discretionary decisions, an agency must operate under clear legislative authority. This authority is typically granted through enabling statutes that outline the agency's scope of power and responsibilities. Legislative authority provides the legal basis for an agency to exercise discretion, allowing it to interpret laws and apply regulations to specific situations. Without such authority, an agency may lack the legitimacy to make decisions that involve judgment and interpretation, potentially leading to challenges regarding its actions.

The other options do not fulfill the requirement for exercising discretion in decision-making. Popular consent, while potentially important for political legitimacy, does not replace the need for statutory authority. Peer review may enhance the quality of decisions but does not provide the necessary legal underpinning for discretionary actions. Implementation of guidelines can assist in decision-making processes; however, guidelines themselves must derive from the agency's legislative authority to be valid and enforceable.