American Public Gas Association v. Department of Energy, No. 20-1068 (D.C. Cir. 2022)
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The DC Circuit remanded the Department's Final Rule setting more stringent efficiency standards than those of the ASHRAE for "commercial packaged boilers," large boilers commonly used to heat commercial and multifamily residential buildings. The court rejected the contention that the DOE did not apply the clear and convincing evidence standard required by statute. Rather, in promulgating the Final Rule, the DOE expressly said satisfaction of the clear and convincing standard, if applicable, was an alternative ground supporting the Rule.
Without a cogent and reasoned response to the substantial concerns petitioners raised about the assignment of efficiencies to the buildings, a crucial part of its analysis, the court cannot say that it was reasonable for the DOE to conclude that clear and convincing evidence supports the adoption of a more stringent standard. Furthermore, the court cannot say that the Secretary reasonably concluded she had clear and convincing evidence a more stringent efficiency standard is economically justified. The court remanded for the DOE to address several issues raised by petitioners.
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