This is an appeal from the Merit System Protection Board (“MSPB” or “Board”), which upheld the removal of petitioner Gary Gose (“Gose”) from his position as City Carrier with the United States Postal Service (“USPS” or “the agency”), for allegedly violating an agency regulation while working pursuant to the terms of a last chance agreement (“LCA”). This court has jurisdiction “of an appeal from a final order or final decision of the Merit Systems Protection Board, pursuant to sections 7703(b)(1) and 7703(d) of title 5[J” 28 U.S.C. § 1295. For the reasons discussed below, we reverse the decision of the Board and remand for further proceedings consistent with this opinion.
I. BACKGROUND
A. Conduct Leading to the Last Chance Agreement
On August 25, 2003, the agency proposed Gose’s removal, and on September 12, 2003, the deciding official found that removal was warranted. The official concluded that Gose had “fail[ed] to use [a] satchel in the delivery of the mail” and had therefore failed to “observe our safety rules and policies.” The deciding official also stated that Gose had recently been “present for the service-safety talks concerning this subject” and had “acknowledged that [he] was aware of the requirement to use the satchel.” As evidence of Gose’s apparent propensity for not following instructions, the deciding official cited several suspensions for “Failure to Perform Your Duties in a Conscientious and Effective Manner / Failure to Follow Instructions” and one suspension for “Failure to Perform Your Duties in a Conscientious and Effective Manner / Unauthorized Extension of Lunch.”
As a final resolution of these matters, Gose entered into a LCA with the agency on October 31, 2003. A key provision of the LCA was that Gose would “comply with all the applicable policies, rules and regulations with regard to his employment as a condition of this last chance agreement. Failure to comply ... will constitute a basis that will result in Mr. Gose’s removal .... ”
B. Gose’s Alleged Violation of the LCA— Drinking “in a public place” While in Uniform.
On March 29, 2004, Douglas Potter (“Potter”), Customer Service Manager at the Wright Brothers Branch Post Office, proposed to remove Gose for violating the terms of the LCA. Potter wrote that on February 27, 2004, the Post Office had received a customer concern letter regarding Gose’s drinking while in uniform at Veterans of Foreign Wars (“VFW”) Post 9927, Kettering, Ohio. There were thirty signatures on the letter. Apparently, the *834 members of the VFW were offended by the sight of someone drinking in uniform. As one member opined, “Well, I’m retired military.... You just don’t drink in uniform in a public place.” The administrative judge (“AJ”) never expressly considered Gose’s argument that the VFW had written the letter to his employer in retaliation for Gose’s complaining about alleged accounting discrepancies in the VFW post’s books. The motives of the VFW, however, are not relevant to this appeal and will not be further considered.
The underlying facts were never in dispute. In fact, Gose estimated that he had consumed three thousand mixed drinks at the VFW since 1988 and acknowledged that he often drank there while wearing his uniform. Rather, the dispute centered on whether Gose’s actions had violated any postal “policy, rule or regulation.” If so, then according to the terms of the LCA, Gose’s removal would be warranted.
Potter stated that Gose’s actions had indeed violated several USPS standards of conduct as expressed in the Employee and Labor Relations Manual (“ELM”). These provisions were (1) § 661.3(f) (engaging in actions “whether or not specifically prohibited by the Code, which might result in or create the appearance of .... affecting adversely the confidence of the public in the integrity of the Postal Service”); (2) § 661.53 (engaging in “conduct prejudicial to the Postal Service”); (3) § 661.54 (“drink[ing] intoxicating beverages in a public place while in uniform”); 1 and (4) § 666.2 (failing to “conduct [himself] during and outside of working hours in a manner which reflects favorably upon the Postal Service .... ”).
The deciding official, David Ashworth (“Ashworth”), Postmaster of Dayton, Ohio, agreed with the proposal to remove Gose. In his letter of removal, Ashworth stated that he believed that Gose’s “acknowledge-ments and admissions [of the underlying facts] in this matter demonstrate^] that ‘Just Cause’ existed for [his] removal.” He further stated that Gose’s “actions in not observing Postal Service rules and regulations ... violates the employee standards of conduct for employees as expressed in the Employee and Labor Relations Manual (ELM) that forbid your drinking of intoxicating beverages in a public place while in uniform.” The deciding official found that Gose’s conduct was prejudicial to the Postal Service and served to undermine public confidence in the Service’s integrity “as evidenced by the corroborated initial customer complaint.”
Ashworth also stated that he had reviewed and considered the Douglas factors, 2 including: (1) the seriousness of the offense and its prejudicial effect upon the agency’s mission; (2) that other employees had received removal notices for similar offenses; (3) an absence of mitigating circumstances, including a lack of remorse; 3 *835 (4) that Gose was employed pursuant to a voluntary LCA, and (5) that Gose could not be rehabilitated as an employee. He also cited the LCA, which clearly provided for removal as the next step of discipline.
C. Board Review
Gose appealed his removal to the Board, arguing that “[t]he only regulation which the Agency has heretofore cited to and alleged that the Appellant has violated is Section 661.54 Employee Relations — Conduct Use of Intoxicating Beverages.” He further argued that he had not violated the provision on drinking in a public place while in uniform because “he ha[d] limited his after work drinking to a private dub .... ” (emphasis added). Gose argued that “[t]he Agency fails to acknowledge a distinction between public and private places, yet the rule or regulation with which Appellant is charged, specifically limits itself to ‘public place.’ ”
Because Gose does not dispute that he drank at the VFW post while in uniform while the LCA was in effect, the dispute in this case centers solely on whether or not the VFW is a “public place,” as that phrase is used in the relevant postal regulation. During the appeal to the MSPB, Ashworth testified before the administrative judge (“AJ”) that to the Postal Service “any place is a public place that we serve.... [EJvery citizen is a customer of ours.” Ashworth explained that the VFW “is a private place for membership, but as far as the Postal Service [is concerned]— as I say, any place ... is public.” Similarly, Tod O’Reilly (“O’Reilly”), Manager of Customer Service, testified that “[postal employees] are always in public” except “when we’re in our own homes.”
The AJ rejected Gose’s argument that the VFW is not a public place, noting the testimony of O’Reilly and Ashworth that “a public place is anywhere that Postal Service customers can be found.” The AJ adopted this definition, stating that “[t]he intent of the Postal Service policy is to prevent its uniformed employees from drinking intoxicating beverages in public view, a circumstance clearly present in this case based on complaints from members of the public regarding his conduct.” The AJ concluded that “[b]ecause numerous Postal Service customers complained about the appellant’s conduct, I find the conduct occurred in public, not in private.” The Board subsequently rejected Gose’s petition for review, and the decision of the AJ became final.
II. DISCUSSION
Gose argues that the Board committed several errors, including in its interpretation of the Postal Service regulation that prohibits employees from drinking “in a public place” while in uniform. Because we hold that the Board did err in this regard, we reverse the Board’s decision without consideration of Gose’s other assignments of error.
A. Standard of Review
Here we are reviewing the Board’s construction of a regulation, including its decision to defer to the interpretation proffered by the agency.
See Douglas v. Veterans Admin.,
“This court must affirm the Board’s decision unless it is: ‘(1) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; (2) obtained without procedures required by law, rule, or regulation having been followed; or (3) unsupported by substantial evidence.’ ”
Tunik v. Merit Sys. Prot. Bd.,
B. Regulatory Construction
Next, we turn to the proper construction of the regulation Gose is accused of violating. As a general rule, we must defer to an agency’s interpretations of the regulations it promulgates, as long as the regulation is ambiguous and the agency’s interpretation is neither plainly erroneous nor inconsistent with the regulation.
See Gonzales v. Oregon,
— U.S. -,
*837
We defer even more broadly to an agency’s interpretations of its own regulations than to its interpretation of statutes, because the agency, as the promulgator of the regulation, is particularly well suited to speak to its original intent in adopting the regulation.
See Cathedral Candle Co. v. U.S. Int’l Trade Comm’n,
Consequently, deference is appropriate even if other interpretations of the regulation may accord somewhat better with the regulatory language than does the Secretary’s interpretation.
See Thomas Jefferson Univ. v. Shalala,
Deference is particularly appropriate when the agency interpretation has been consistently applied.
See Ehlert v. United States,
Conversely, “an agency’s interpretation of a statute
or regulation
that conflicts with a prior interpretation is ‘entitled to considerably less deference’ than a consistently held agency view____”
Thomas Jefferson Univ.,
Legitimate agency interpretations may be made even during the very administrative determination that has become the subject of review.
See Cathedral Candle,
Finally, the interpretation either has to be that of the Secretary or properly imputed to him in some way.
See, e.g.,
*839
Thomas Jefferson Univ.,
512 U.S at 517,
C. Analysis
The agency argues that it adjudicated Gose’s dismissal by interpreting “public place” to mean “a place where postal customers are located” and that because this interpretation is plausible, it is entitled to deference. 4 As we explained above, in order to merit Seminole Rock deference, the agency’s interpretation (1) must have been directed to regulatory language that is unclear; (2) must have been actually applied in the present agency action; and (3) must not be plainly erroneous or inconsistent with the regulation. In addition, we consider the consistency vel non with which the agency has applied that interpretation. See swpra Part II.B. The agency’s interpretation clearly passes the first prong of the tripartite test, as the regulation is vague as to the scope of the phrase “in a public place.” It fails the second two prongs for the reasons discussed below.
Turning first to the “actual application” prong, we observe that the salient question is whether the agency actually based its decision to remove Gose on the interpretation of “public place” as anywhere that a Postal Service customer can be found. We must ensure that the agency is not now masquerading a post hoc rationalization as a then-existing “interpretation.”
See Burlington Truck Lines,
Thus, the question becomes whether it was arbitrary and capricious for the Board to conclude, based on the evidence before it, that the deciding official had in fact applied a particular “interpretation” of the regulation in his decision, even though his decision letter made absolutely no mention of any such interpretation. We hold that it was. On appeal to the MSPB, however, the AJ improperly overlooked this shortcoming, and relied principally on testimony by the deciding official (Ashworth) that to the Postal Service “any place is a public place that we serve.... [E]very citizen is a customer of ours.” The AJ then deferred *840 to the agency’s interpretation of “public place,” stating in his initial decision that he “agree[d] with the testimony of Messrs. O’Reilly [the local customer service manager] and Ashworth [postmaster],” that “a public place is anywhere that Postal Service customers can be found.” The AJ further implied that this interpretation was consistent with “[t]he intent of the Postal Service policy to prevent its uniformed employees from drinking intoxicating beverages in public view.” There was, however, no evidence before the Board to suggest the intent of the agency in promulgating the regulation.
The AJ erred in deferring to the agency’s interpretation. Where a letter of removal is silent about the agency’s interpretation of its regulation, the existence and application of such an interpretation cannot be established principally by the after-the-fact testimony of agency officials regarding what they had apparently thought but failed to articulate at the relevant time.
Moreover, according to
Seminole Rock,
no deference is due to an agency interpretation of a reference that is “plainly erroneous or inconsistent with the regulation.”
Because, according to the Postal Service, a public place exists wherever there is a postal customer, and because by the agency’s own account, “every citizen is [its] customer,” we reach the logical conclusion that, in the agency’s view, a public place exists wherever there is a citizen. This definition would classify as “public places” even employees’ private homes, at least to the extent that the employee is not alone there. In short, the problem with this interpretation is that it effectively reads language out of the regulation. If the agency had wished to promulgate a regulation that prohibited drinking in uniform while “in the presence of others,” it might have done so. However, it did not. Instead, it promulgated a regulation that specifically forbade such activity only “in a public place.” (emphasis added). An agency interpretation that effectively eviscerates regulatory language is per se inconsistent with the regulation and may be accorded no deference.
Rejecting the agency’s regulatory construction, we now turn to the meaning of the phrase “in a public place.” While we need not define its precise contours, we hold that the VFW post is not a public place by any reasonable construction of the postal regulation. If the Postal Service wishes to further restrict drinking by its off-duty uniformed employees, it may promulgate a new regulation. To be clear, here we express no view on whether such a regulation would constitute an impermissible intrusion on employees’ privacy interests.
For the reasons stated above, we conclude that the Board acted in an arbitrary and capricious manner in affirming the agency’s action after erroneously deferring to the agency’s unreasonable interpretation of its regulation. Accordingly, Gose is to be immediately reinstated to his position, with back pay and credit, for all purposes, for the period of his improper removal from the Postal Service. We also deem Gose not to have breached the terms of the LCA, such that, inter alia, the agency is obligated to comply with its obli *841 gations thereunder, including its obligation to remove “all citable disciplinary actions” in Gose’s record. We remand to the Board for further action consistent with this opinion.
REVERSED AND REMANDED.
Costs to petitioner.
Notes
. See also 39 C.F.R. § 447.21(e) ("No employee shall drink intoxicating beverages in a public place while in uniform.”).
.
See Douglas v. Veterans Admin.,
. As for lack of remorse, Ashworth stated:
I am unable to find mitigating circumstances for your response that you needed to have a membership card to gain entry into the VFW. I have considered your seeming lack of remorse for the impact your continued drinking while in uniform had with our customers. Postal records in this file, and your own acknowledgement, indicates that you were previously notified of your responsibility regarding drinking in uniform. You have not acted appropriately in your own behalf in this matter even after being forewarned.
It is not clear whether Ashworth ever entertained the possibility that Gose was not exhibiting a "lack of remorse” but rather felt he *835 had been wrongly accused. After all, whether indignation or remorse is appropriate turns entirely on whether or not Gose had actually violated an ELM provision. Gose believes that he did not.
. We reject the agency’s argument that we can sustain its removal action based on Gose's alleged violations of other statutory provisions. Agency action must be sustained, if at all, on the actual grounds relied on by the agency. See,
e.g., Burlington Truck Lines,
