Natural Resources Defense Council v. Abraham

355 F.3d 179
Court of Appeals for the Second Circuit·Decided January 13, 2004·No. No. 01-4102, 01-4103, 02-4160, 02-4189, 02-6139·Published·Cited by 8 cases

Opinion

OAKES, Senior Circuit Judge.

We are called upon in this case to determine when section 325 of the Energy Policy and Conservation Act (“EPCA”), as amended by the National Appliance Energy Conservation Act (“NAECA”), took effect so as to prevent the Department of Energy from amending downward efficiency standards for certain home appliances.

The Natural Resources Defense Council (“NRDC”), the Public Utility Law Project (“PULP”), and the Consumer Federation of America (“CFA”), joined by the attorneys general of California, Connecticut, Maine, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Rhode Island, and Vermont, as well as intervenors Texas Ratepayers’ Organization to Save Energy, the Massachusetts Union of Public Housing Tenants, and the National Association of Regulatory Utility Commissioners (hereinafter collectively “petitioners”), petition this court for relief. They challenge a series of actions taken by the Department of Energy (“DOE”) following its promulgation and publication in January 2001 of efficiency standards for certain air conditioning units required under the EPCA. They do so simultaneously with their appeal, in the alternative, of the dismissal based on lack of subject matter jurisdiction by the United States District Court for the Southern District of New York, Laura Taylor Swain, Judge, of their suit challenging a portion of these same actions in that court.

In their consolidated petitions for relief, petitioners argue that DOE’s acts of delaying, withdrawing and replacing the standards promulgated in January 2001 were improper and done in violation of section 325(o)(l) of the EPCA, codified at 42 U.S.C. § 6295(o)(l) (2003), as well as the Administrative Procedure Act (“APA”) and the National Environmental Policy Act (“NEPA”). They seek a judgment from this court accordingly. They also argue that the replacement standards are not supported by substantial evidence in the record and do not conform to mandates Congress set forth elsewhere in section 325 of the EPCA. In the alternative, they argue that the district court erroneously determined that it did not have jurisdiction to consider the propriety of DOE’s acts of twice delaying the effective date of the original standards, and that we should remand so that it may do so.2

As a threshold matter, we conclude that the district court was correct in determining that subject matter jurisdiction over petitioners’ challenge to DOE’s two amendments of the original standards’ effective date properly resides with this court. Consequently, we review all of DOE’s actions here. Because we agree that DOE acted contrary to the dictates of the EPCA and, alternately, the APA, we grant petitioners’ request for relief.

Background

Central to this case is the Energy Policy and Conservation Act, passed by Congress in 1975. See EPCA, Pub.L. 94-163, 1975 U.S.C.C.A.N. (89 Stat.) 871 (codified as amended at 42 U.S.C. §§ 6201-6422 (2003)). A brief review of the history of that Act and its subsequent relevant amendments is therefore crucial to understanding the context of the present action.

[185]*185The EPCA was passed following the oil embargo imposed by the Organization of Oil Producing and Exporting Countries (“OPEC”) in 1973. It was designed as a direct, comprehensive response to the energy crisis precipitated by the embargo, see H.R.Rep. No. 94-340, pts. I & II, at 1-3 (1975), reprinted in 1975 U.S.C.C.A.N. 1762, 1763-65; see also id., pt. V, at 20, reprinted in 1975 U.S.C.C.A.N. at 1782 (noting 1973 embargo brought the energy situation in the United States to “crisis proportions”), and among its stated purposes was the reduction of demand for energy through such measures as conservation plans and improved energy efficiency of consumer products, EPCA § 2, 1975 U.S.C.C.A.N. (89 Stat.) at 874.

In this vein, the EPCA set about improving the energy efficiency of thirteen named home appliances that Congress determined contributed significantly to domestic energy demand, as well as any additional ones that the administrator of the Federal Energy Administration (“FEA,” a precursor to DOE), in his discretion, determined similarly contributed to energy demand. See generally EPCA §§ 321-39, 1975 U.S.C.C.A.N. (89 Stat.) at 917-32; see also H.R. Rep. 94-340, pt. V, at 94, reprinted in 1975 U.S.C.C.A.N. at 1856 (noting to what degree residential energy use, and specifically residential appliances, contributed to overall domestic energy use); NRDC v. Herrington, 768 F.2d 1355, 1365 (D.C.Cir.1985) (describing program). The Act initially sought to achieve this goal through a voluntary market-based approach, requiring labels that disclosed appliances’ energy efficiency as determined under tests developed by the FEA. Upon determining that the labeling program would not result in achieving the - desired energy efficiency “targets,” the Act resorted to mandated energy efficiency standards. See EPCA §§ 323-26, 1975 U.S.C.C.A.N. (89 Stat.) at 919-26; see also H.R. Rep. 94-340, pt. II, at 10, reprinted in 1975 U.S.C.C.A.N. at 1772; ■ S. Conf. Rep. 94-516, pt. Ill, at 119-20 (1975), reprinted in 1975 U.S.C.C.A.N. 1956, 1960. The Act set strict deadlines for developing the testing procedures, imposing the labeling requirements, and establishing the “targets” for covered appliances. See EPCA §§ 323-35, 1975 U.S.C.C.A.N. (89 Stat.) at 919-26; see also Herrington, 768 F.2d at 1365 n. 9. Among those covered appliances specifically enumerated by the Act were central air conditioners. EPCA § 322(a)(12), 1975 U.S.C.C.A.N. (89 Stat.) at 918.

Notwithstanding the strict timelines established by the EPCA, and due in part to continuing domestic energy problems, Congress undertook a “complete overhaul” of national energy policy only three years later, which included amendments to the appliance efficiency program in the EPCA. See Herrington, 768 F.2d at 1365-66; see also NECPA, Pub.L. No. 95-619, sec. 102, 1978 U.S.C.C.A.N. (92 Stat.) 3206, 3208-09 (findings and statement of purpose); Julia Richardson & Robert Nordhaus, The National Energy Act of 1978, 10 Nat. Resources & Env’t 62, 62-63 (1995) (describing context and events leading up to President’s National Energy Plan, which included the NECPA in its package of proposed legislation). Congress and the President had grown impatient with the approach found in the original EPCA regarding consumer appliance efficiency.. See H.R. Conf. Rep. No. 95-1751, at 114 (1978), reprinted in 1978 U.S.C.C.A.N. 8134, 8158; Herrington, 768 F.2d at 1362 (noting home appliance provision was amended to ensure improvements in energy efficiency, would be made more “expeditiously”) (quoting H.R.Rep. No. 95-496, pt. TV, at 46 (1978), reprinted in 1978 U.S.C.C.A.N. 8454, 8493); Julia Richardson & Robert Nordhaus, supra, at [186]*18686-87. Rather than waiting in hopes that manufacturers would voluntarily reach the efficiency “targets,” the amended EPCA instead required that the recently created DOE proceed directly to establishing mandatory efficiency standards for covered home appliances that would achieve the maximum improvement in energy efficiency that was technologically feasible and economically justified. See NECPA, sec.

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Natural Resources Defense Council v. Abraham
355 F.3d 179 (Second Circuit, 2004)