Boston Edison Co. v. States

64 Fed. Cl. 167, 66 Fed. R. Serv. 573, 2005 U.S. Claims LEXIS 44
CourtUnited States Court of Federal Claims
DecidedFebruary 15, 2005
DocketNo. 99-447C
StatusPublished
Cited by52 cases

This text of 64 Fed. Cl. 167 (Boston Edison Co. v. States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boston Edison Co. v. States, 64 Fed. Cl. 167, 66 Fed. R. Serv. 573, 2005 U.S. Claims LEXIS 44 (uscfc 2005).

Opinion

OPINION AND ORDER

LETTOW, Judge.

This case involves the disposal of spent nuclear fuel (“SNF”) and high-level radioac[170]*170tive waste (“HLW”)- Plaintiff, Boston Edison Company (“Boston Edison”) signed a Standard Contract under the Nuclear Waste Policy Act of 1982 (“NWPA”), Pub.L. No. 97-425, 96 Stat. 2202 (Jan. 7, 1983) (codified as amended at 42 U.S.C. §§ 10101-10270), which contract obligated the Department of Energy (“DOE”) to dispose of spent nuclear fuel and high-level radioactive waste generated by Boston Edison at its Pilgrim Nuclear Power Station (“Pilgrim”) beginning no later than January 31, 1998. More than seven years after this deadline, DOE has yet to dispose of any SNF from Pilgrim or any other nuclear power plant, and the earliest anticipated commencement of such disposal is now some time after 2010.

Boston Edison sold the Pilgrim nuclear electric generating plant to Entergy Nuclear Generation Company (“Entergy”) in 1999. The sales contract included an assignment of the Standard Contract for disposal of SNF and HLW, as authorized by Section 302 of the NWPA, as amended, 42 U.S.C. § 10222.1 As the parties have construed the assignment, it permitted Boston Edison to retain claims for damages accrued as of the closing date, with Entergy acquiring later accruing claims. Both Boston Edison and Entergy have filed claims against the United States in this court.2

Boston Edison alleges a partial breach of contract, a breach of the implied duty of good faith and fair dealing, and an uncompensated taking. The government filed a motion to dismiss the former two claims for lack of standing, claiming that Boston Edison has suffered no injury in fact because the Department of Energy’s disposal procedure did not call for pick up and disposition of the spent nuclear fuel at Boston Edison’s plant until after the date of the facility’s sale. Boston Edison responds that it has suffered injury by way of the diminution in value of the facility at the time of the sale, its expenses to store the spent nuclear fuel prior to sale, and its inability to purchase an earlier disposal time in the SNF queue under Article V.E. of the Standard Contract. The government has also filed a motion for summary judgment on all three counts of the complaint. Boston Edison has filed a cross-motion for summary judgment on its partial breach of contract claim. For the reasons discussed below, the government’s motions to dismiss and for summary judgment are denied, and Boston Edison’s cross-motion is also denied.

BACKGROUND

Over the past nine years, the D.C. Circuit, the Federal Circuit, and this court have issued numerous decisions regarding the contracts and arrangements for storage and disposal of spent nuclear fuel and high-level radioactive waste.3 Given this background, only the facts relevant to the motions presently before the court are recounted here.4

[171]*171A. The NWPA

On January 7,1983, the NWPA was enacted, authorizing the Secretary of the Department of Energy to “enter into contracts with any person who generates or holds title to high-level radioactive waste, or spent nuclear fuel, of domestic origin for the acceptance of title, subsequent transportation, and disposal of such waste or spent fuel.” 42 U.S.C. § 10222(a)(1). The NWPA conditioned the Nuclear Regulatory Commission’s renewal of nuclear facilities’ licenses on their entering into, or negotiating in good faith towards, such a contract for the disposal of spent nuclear fuel. 42 U.S.C. § 10222(b)(1)(A). After a notice and comment period, DOE promulgated a Standard Contract for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste, codified at 10 C.F.R. § 961.11 (“Standard Contract”). See 48 Fed. Reg. 5,458 (Feb. 4, 1983). Under the Standard Contract, nuclear facilities paid (or deferred, subject to accrual of interest) a onetime fee based on electricity generated prior to April 7, 1983, see Standard Contract, art. VIII(B)(2); Commonwealth Edison v. Dep’t of Energy, 877 F.2d 1042, 1043-44 (D.C.Cir. 1989), and they have paid a continuing fee based on the amount of further electricity a facility generated and sold. Standard Contract, art. VIII. In exchange, DOE was obliged to begin its disposal services no later than January 31, 1998. Id., art. II.5 By 1994, no repository had been built nor had the Department of Energy provided a temporary storage facility, and the Department announced that it did not anticipate it would be able to begin disposing of SNF by the 1998 deadline. See 59 Fed.Reg. 27,007, 27,-008 (May 25, 1994). DOE subsequently estimated that the earliest time a disposal site would be ready was 2010. Plaintiffs Proposed Findings of Uncontroverted Fact (“PFUF”) II10; 60 Fed.Reg. 21,793, 21,794 n. 1 (May 3, 1995). More recently, the Department has indicated that pick up and disposition of SNF and HLW will be postponed to some time after 2010.6

B. The Standard Contract

The Standard Contract lays out the procedure by which DOE anticipated SNF would be collected. Under Article IV.B.5(b) of the Standard Contract, starting no later than July 1,1987, DOE was to issue annual capacity reports (“ACRs”) for planning purposes. These ACRs “set forth the projected annual receiving capacity for the DOE facility(ies) and the annual acceptance ranking relating to DOE contracts for the disposal of SNF and/or HLW including, to the extent available, capacity information for ten (10) years following the projected commencement of operation of the initial DOE facility.” Standard Contract, art. IV.B.5(b). This report by DOE was to determine the amount of total SNF that DOE would accept in a given year. Which SNF DOE would accept was to be determined in part by the annual priority rankings (“APRs”), and the general rule was that the oldest fuel or waste was to be given the highest priority. Id., arts. IV.B.5(a), VI.B.l.

Beginning January 1, 1992, the nuclear facilities cpuld submit to DOE delivery commitment schedules (“DCS”), which identified “all SNF and/or HLW [the facility] wishes to deliver to DOE beginning sixty-three (63) months thereafter.” Id., art. V.B.l. The facility had the right to “adjust the quantities of SNF and/or HLW plus or minus ( + -) twenty percent (20%), and the delivery schedule up to two (2) months, until the submission of the final delivery schedule.” Id., art. V.B.2. Not less than twelve months [172]*172before the delivery date, the facility was to submit a final delivery schedule (“FDS”), which was subject to DOE approval. Id., art. V.C. Facilities also had the right to “exchange approved delivery commitment schedules with parties to other contracts with DOE for disposal of SNF and/or HLW,” provided that DOE approved a request submitted not less than six months before the delivery. Id., art. V.E.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Boston Edison Company
Federal Claims, 2021
Hardy v. United States
Federal Claims, 2021
Entergy Nuclear Generation Co. v. United States
130 Fed. Cl. 466 (Federal Claims, 2017)
Glenn-Colusa Irrigation District v. United States
129 Fed. Cl. 593 (Federal Claims, 2016)
System Fuels, Inc. v. United States
120 Fed. Cl. 635 (Federal Claims, 2015)
Katzin v. United States
120 Fed. Cl. 199 (Federal Claims, 2015)
Tulsa Airports Improvements Trust v. United States
120 Fed. Cl. 254 (Federal Claims, 2015)
Haggart v. United States
108 Fed. Cl. 70 (Federal Claims, 2012)
Niagara Mohawk Power Corp. v. United States
98 Fed. Cl. 313 (Federal Claims, 2011)
Riser v. United States
97 Fed. Cl. 679 (Federal Claims, 2011)
Southern Nuclear Operating Co. v. United States
637 F.3d 1297 (Federal Circuit, 2011)
D'Andrea Bros. v. United States
96 Fed. Cl. 205 (Federal Claims, 2010)
Entergy Nuclear Fitzpatrick, LLC v. United States
93 Fed. Cl. 739 (Federal Claims, 2010)
Reunion, Inc. v. United States
90 Fed. Cl. 576 (Federal Claims, 2009)
Land Grantors in Henderson, Union v. United States
86 Fed. Cl. 35 (Federal Claims, 2009)
Griffin v. United States
85 Fed. Cl. 179 (Federal Claims, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
64 Fed. Cl. 167, 66 Fed. R. Serv. 573, 2005 U.S. Claims LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boston-edison-co-v-states-uscfc-2005.