Fifth Circuit Blocks DOE Direct-Final Rule on Stove Energy Standards

In Mississippi v. Department of Energy, a Fifth Circuit panel reversed the Energy Department’s direct-final rule that set new efficiency limits for residential cooking appliances. Judge Oldham authored the opinion, with Judge Ho concurring and Judge Haynes joining the judgment. The court found the agency had improperly employed the direct-final rule mechanism to sidestep the statutory notice-and-comment requirements, despite the rule’s controversial nature.

States that challenged the rule argued it was part of a broader push by the Biden Administration to make appliances more costly and less functional, citing earlier proposals such as a ban on gas stoves. The opinion also noted that the Trump Administration had similarly used “good cause” exemptions to avoid procedural safeguards. The Fifth Circuit’s reasoning may influence other circuits and curb future attempts to bypass public participation in rulemaking.