Zero Zone, Inc. v. U.S. Dept. of Energy

Dept. of Energy (DOE) could properly issue new rules with respect to energy standards for commercial refrigeration equipment (CRE), as well as test procedures used to implement said standards, which DOE found to be technologically feasible and economically justified, where DOE premised new rules on analytical model that was supported by substantial evidence and was neither arbitrary or capricious. Moreover, DOE: (1) conducted cost-benefit analysis that was within its statutory authority and was supported by substantial evidence; and (2) acted within its authority when promulgating instant test procedures. Ct. rejected petitioners’ claim that: (1) DOE failed to provide certain engineering spreadsheet in timely fashion so as to allow meaningful opportunity for public ability to comment on proposed rules, where several members of public were able to provide meaningful commentary; and (2) substance of DOE’s engineering analysis with respect to compressors/insulation foam thickness was feasible. Also, DOE was not required to justify its model for every unit to which model was applied, where, as here, DOE performed validation testing on representative sample of CRE units. DOE may additionally consider environmental benefits of proposed rules when determining whether they are economically justified and could properly rely on Attorney General opinion finding that proposed rules would have negligible anti-competitive effect.