Butte County, Idaho v. United States

CourtUnited States Court of Federal Claims
DecidedJanuary 19, 2021
Docket19-800
StatusPublished

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Butte County, Idaho v. United States, (uscfc 2021).

Opinion

In the United States Court of Federal Claims

BUTTE COUNTY, IDAHO,

Plaintiff, No. 19-cv-00800 v. Filed: January 19, 2021 THE UNITED STATES,

Defendant.

Steve L. Stephens, Stephens Law Office PLLC, Arco, Idaho, for Plaintiff.

Daniel B. Volk, United States Department of Justice, Washington, D.C. for Defendant. With him on the briefs are Joseph H. Hunt, Assistant Attorney General, Civil Division, Robert E. Kirschman, Jr., Director, Commercial Litigation Branch, Civil Division, Lisa L. Donahue, Assistant Director, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C. Bettina Mumme, of counsel, United States Department of Energy, Washington, D.C.

MEMORANDUM AND ORDER

This case involves a claim for impact assistance payments associated with storage of spent

nuclear fuel. Butte County, Idaho, alleges that the U.S. Department of Energy (DOE) violated the

Nuclear Waste Policy Act of 1982 (NWPA or the Act), Pub. L. No. 97-425, 96 Stat. 2201 (codified

as amended at 42 U.S.C. §§ 10101-10270), by failing to pay Butte County impact assistance

payments associated with Federal interim storage of spent nuclear fuel at Idaho National

Laboratory (INL). See Amended Complaint ¶¶ 1-2, 15 (ECF No. 8) (Am. Compl.). Specifically,

Butte County alleges that a contract to provide interim storage for spent nuclear fuel from Three

Mile Island did not comply with requirements for interim storage of spent nuclear fuel as provided

for in Title I, Part B of the NWPA, 42 U.S.C. §§ 10151-10157 (Part B). Am. Compl. ¶¶ 38-41. Additionally, Butte County asserts that DOE failed to comply with Part B with regard to providing

storage for spent nuclear fuel from the U.S. Navy by failing to deposit funds into the Interim

Storage Fund in violation of 42 U.S.C. § 10156(b). Am. Compl. ¶¶ 55, 64-65. As relief, Plaintiff

seeks an amount equal to portions of unpaid fees that it alleges DOE would have collected if DOE

had abided by the interim storage requirements detailed in Part B of the NWPA. Am. Compl. ¶ 1.

In its prayer for relief, Butte County seeks annual impact assistance payments as follows:

$3,607,183 for 2013; $3,622,183 for 2014; $3,640,183 for 2015; $3,656,683 for 2016; $3,689,683

for 2017; and $3,694,183 for 2018. Am. Compl. at 25.

Defendant United States moves to dismiss Plaintiff’s Amended Complaint pursuant to Rule

12(b)(1) of the Rules of the United States Court of Federal Claims (Rule(s)) for lack of subject-

matter jurisdiction, or alternatively pursuant to Rule 12(b)(6) for failure to state a claim upon which

relief can be granted. Defendant’s Motion to Dismiss at 1 (ECF No. 11) (Def. Mot.); Defendant’s

Response in Opposition to Plaintiff’s Motion for Summary Judgment and Reply in Support of

Dismissal at 1 (ECF No. 15) (Def. Resp.).

On October 15, 2019, Plaintiff filed a cross motion for summary judgment, reiterating its

position that Plaintiffs are entitled to impact assistance payments despite the Federal Government’s

failure to abide by the interim storage requirements detailed in Part B. See Butte County’s

Opposition to Defendant’s Motion to Dismiss and Cross Motion (First) for Summary Judgment

and Memorandum Support (ECF No. 12) (Pl. Resp. & Cross-Mot.) at 2, 39; Butte County’s Reply

in Support of Motion (First) for Summary Judgment (ECF No. 16) (Pl. Reply) at 16-20.

On February 27, 2020, this case was transferred to the undersigned judge pursuant to Rule

40.1(c), and this Court held oral argument on June 10, 2020. See February 27, 2020 Order (ECF

No. 17); Tr. of June 10, 2020 Oral Argument (ECF No. 21). This Court has considered each of

2 the parties’ filings and arguments in ruling on the parties’ motions. For the reasons set forth below,

Defendant’s Motion to Dismiss pursuant to Rule 12(b)(1) is GRANTED and Plaintiff’s Cross

Motion for Summary Judgment is DENIED.

BACKGROUND

I. Statutory Scheme for Federal Interim Storage of Spent Nuclear Fuel

The NWPA, enacted in January 1983, provides a framework for the storage and disposal

of radioactive waste such as spent nuclear fuel (SNF) generated by nuclear power plants. See 42

U.S.C. § 10131; PSEG Nuclear, L.L.C. v. United States, 465 F.3d 1343, 1344 (Fed. Cir. 2006).

Title I, Part B of the NWPA (Part B) addresses interim storage of commercial SNF. 42 U.S.C. §§

10151-10157. Under Part B, owners and operators of commercial nuclear power reactors have

“the primary responsibility for providing interim storage of spent nuclear fuel from such reactors,

by maximizing, to the extent practical, the effective use of existing storage facilities at the site of

each civilian nuclear power reactor, and by adding new onsite storage capacity in a timely manner

where practical.” Id. § 10151(a)(1). Nonetheless, Congress sought to “prevent disruptions in the

orderly operation of any civilian nuclear power reactor that [could not] reasonably provide

adequate spent nuclear fuel storage capacity at the site of such reactor . . .” by providing for a

limited capacity for Federal “interim storage.” Id. § 10151(b)(2).

“[T]he interim storage provisions of the Nuclear Waste Policy Act are not comprehensive

regulations governing all federal storage of nuclear waste, but remedial legislation addressed to a

specific problem. Congress recognized that federal facilities could provide interim storage for a

limited quantity of the spent fuel left unaccounted for by the collapse of the reprocessing industry.”

State of Idaho v. U.S. Dep't of Energy, 945 F.2d 295, 298-99 (9th Cir. 1991), as amended on denial

of reh'g (Dec. 13, 1991). “The Act's restrictive language limits the requirements to the specific set

3 of remedial storage agreements authorized by the Act itself. Spent nuclear fuel accounted for by

pre-existing agreement was not part of the pool of radioactive material for which there was no

available storage and for which interim storage was necessary to ensure continued operations.” Id.

at 299. “Each of the Act's various requirements concerning interim storage are specifically limited

to contracts entered into pursuant to section 10155(a)(1)(A).” Id.

Specifically, the Department of Energy “shall offer to enter into, and may enter into,

contracts under section 10156(a) . . .” only if the Nuclear Regulatory Commission (NRC or

Commission) makes certain determinations. 42 U.S.C. § 10155(b)(1). Under a section 10156(a)

contract, “the Federal Government will (1) take title at the civilian nuclear power reactor site, to

such amounts of spent nuclear fuel from the civilian nuclear power reactor as the Commission

determines cannot be stored onsite, (2) transport the spent nuclear fuel to a federally owned and

operated interim away-from-reactor storage facility, and (3) store such fuel in the facility pending

further processing, storage, or disposal.” Id. § 10156(a).

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