Limnia, Inc. v. U.S. Dep't of Energy

347 F. Supp. 3d 25
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 28, 2018
DocketNo. 1:13-cv-37 (KBJ)
StatusPublished
Cited by1 cases

This text of 347 F. Supp. 3d 25 (Limnia, Inc. v. U.S. Dep't of Energy) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Limnia, Inc. v. U.S. Dep't of Energy, 347 F. Supp. 3d 25 (D.C. Cir. 2018).

Opinion

KETANJI BROWN JACKSON, United States District Judge

In 2009, Plaintiff Limnia, Inc. ("Limnia" or "Plaintiff"), a manufacturer of battery *28systems for electric vehicles, applied for a loan from the Department of Energy ("DOE") through a congressionally-authorized clean energy program known as the Loan Guarantee Program ("LG Program"). Limnia submitted its program application to DOE, but it did not transmit the application fee that DOE's regulations prescribed. See 10 C.F.R. § 609.6(b)(2) (2009). DOE summarily rejected Limnia's loan application on this basis, after which Limnia filed the instant lawsuit against DOE and its Secretary (collectively, "Defendants") under the Administrative Procedure Act, 5 U.S.C. § 706, claiming that DOE had arbitrarily refused to honor a supposedly pre-existing oral agreement to waive the application fee (a waiver that DOE says did not occur), and that the agency had also failed to explain why it would not honor the oral fee waiver. (See Am. Compl., ECF No. 26, ¶¶ 167-71; Pl. Limnia, Inc.'s Opp'n to Defs.' Mot. for Partial Summ. J. & Cross-Mot. for Partial Summ. J. or for Disc. ("Pl.'s Mot."), ECF No. 74, at 6.)1 Limnia combined its claims against DOE with those of another disgruntled loan applicant; the gravamen of their complaint, which also included alleged violations of Limnia's constitutional rights to due process and equal protection, was that various determinations that DOE had made regarding the processing and merits of their loan applications were infected with political "cronyism" and demonstrated an abuse of power. (See, e.g. , Am. Compl. ¶¶ 83-113.)

As of July 21, 2016, this Court had (1) dismissed the other plaintiff and many of the complaint's claims; (2) voluntarily remanded Limnia's remaining APA claims back to the agency (over Limnia's objection) for reconsideration of Limnia's loan application; and (3) closed Limina's case due to its failure to resubmit its application materials to the agency pursuant to the voluntary remand. Limnia then appealed, and the D.C. Circuit determined that this Court's voluntary remand order was improper, and as relevant here, ordered this Court to "resolve Limnia's APA challenge to the apparently denied 2009 loan applications." Limnia, Inc. v. U.S. Dep't of Energy , 857 F.3d 379, 388 (D.C. Cir. 2017). The panel suggested that this Court could avoid addressing the merits of Limnia's APA challenge by voluntarily remanding the matter to the agency, but only if the Court "first resolve[s] whether Limnia has to pay the application fee associated with the 2009 Loan Guarantee Program application, or whether that fee was waived by the Department." Id. Of course, answering that question under the circumstances presented actually eliminates any prospect of a voluntary remand to the agency, because Limnia's APA challenge to DOE's treatment of its 2009 LG Program loan application is its assertion that DOE had arbitrarily refused to process Limnia's application in the absence of the application fee. (See Hr'g Tr. at 12:10-13 ("[O]ur position here, our perspective is we're here today only regarding denial of the fee waiver.").) Consequently, on remand, this Court ordered the parties to brief the merits of Limnia's LG Program APA claim, and the parties proceeded to address the issue of whether and to what extent DOE acted arbitrarily and capriciously in requiring that Limnia pay the application fee associated with the 2009 LG Program application. (See Minute Order of November 22, 2017.)

Before this Court at present are the parties' cross-motions for summary judgment on this issue. (See Mem. in Supp. of Defs.' Mot. for Partial Summ. J. ("Defs.'

*29Mem."), ECF No. 72-1; Pl.'s Mot.) In its motion, DOE argues that the agency "reasonably decided to deny [Limnia's] LG Program application" because "Limnia did not pay the application fee" (Defs.' Mem. at 16), and it further maintains that the agency provided Limnia with an adequate explanation as to that decision, given that "[n]othing in the administrative record" suggests that DOE "agreed to specifically waive the application fee" with respect to Limnia's LG application (id. at 19). For its part, Limnia acknowledges that it "did not submit an application fee" (Pl.'s Mot. at 5), but it contends that DOE acted arbitrarily and capriciously in rejecting its application on this basis, because the agency had "failed" to "provide[ ] a reasoned explanation for its refusal to waive the application fee" ( id. at 6), given that "[e]vidence in the record indicates that DOE consented to this waiver" (id. at 5). Limnia has also moved, in the alternative, "for limited discovery to supplement the record" if this Court finds "the administrative record insufficient to allow for judicial review." ( Id. at 13.)

For the reasons explained below, Defendants' motion for partial summary judgment must be GRANTED , and Plaintiff's cross-motion for partial summary judgment must be DENIED .2 In short, the instant record indisputably establishes that the steps that are necessary to waive Limnia's application fee for the LG Program under DOE regulations were never taken, and DOE had no obligation to honor an alleged oral waiver of the application fee, nor did it need to provide any explanation for its rejection of Limnia's application other than informing Limnia (accurately) that the mandatory application fee had not been remitted. Thus, DOE's rejection of Limnia's application was not arbitrary or capricious. Moreover, because discovery is generally disfavored in APA cases and is also entirely unnecessary for the resolution of the instant cross-motions, Limnia's alternative motion for discovery is denied. A separate Order consistent with this Memorandum Opinion will follow.

I. BACKGROUND

A. The Applicable LG Program Regulations

In 2005, Congress passed the Energy Policy Act of 2005, Pub. L. No. 109-58, § 1701-04, 119 Stat. 594, 1117-22 (codified at 42 U.S.C. §§ 16511 -14), with the goal of promoting new and improved technologies that "avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases[,]" 42 U.S.C.

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347 F. Supp. 3d 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/limnia-inc-v-us-dept-of-energy-cadc-2018.