Opinion ID: 1192266
Heading Depth: 1
Heading Rank: 4

Heading: The DOE's Rejection of the CEC's Petition was Arbitrary and Capricious

Text: Our review of the DOE's administrative decision is governed by 42 U.S.C. § 6306(b)(2), which provides for review in accordance with the Administrative Procedure Act. That Act states that the reviewing court shall . . . compel agency action unlawfully withheld [and] hold unlawful and set aside agency action, findings, and conclusions found to be . . . arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law. . . . 5 U.S.C. § 706(1)-(2)(A); see Envtl. Def. Ctr. v. EPA, 344 F.3d 832, 858 n. 36 (9th Cir. 2003), cert. denied, 541 U.S. 1085, 124 S.Ct. 2811, 159 L.Ed.2d 246 (2004). Under this standard, we will uphold an agency decision only on the basis of the reasoning articulated therein. Anaheim Mem'l Hosp. v. Shalala, 130 F.3d 845, 849 (9th Cir.1997). We will overturn a decision as arbitrary and capricious when the agency (1) relied on a factor that Congress did not intend it to consider; (2) failed to consider an important factor or aspect of the problem; (3) failed to articulate a rational connection between the facts found and the conclusions made; (4) supported the decision with a rationale that runs counter to the evidence or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise; or (5) made a clear error in judgment. Envtl. Def. Ctr. v. EPA, 344 F.3d at 858 n. 36. The DOE gave three reasons for denying CEC's request for a waiver of preemption. We address those reasons in turn.