Entergy Nuclear Generation Co. v. States

64 Fed. Cl. 336, 2005 U.S. Claims LEXIS 56
CourtUnited States Court of Federal Claims
DecidedMarch 3, 2005
DocketNo. 03-2626-C
StatusPublished
Cited by12 cases

This text of 64 Fed. Cl. 336 (Entergy Nuclear Generation 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
Entergy Nuclear Generation Co. v. States, 64 Fed. Cl. 336, 2005 U.S. Claims LEXIS 56 (uscfc 2005).

Opinion

OPINION AND ORDER

LETTOW, Judge.

This case involves the storage and disposal of spent nuclear fuel (“SNF”) and high-level [338]*338radioactive waste (“HLW”). Entergy Nuclear Generation Company (“Entergy”) is the current owner of the Pilgrim Nuclear Power Station (“Pilgrim”) in Plymouth, Massachusetts. Pilgrim’s prior owner, Boston Edison Company (“Boston Edison”), had entered into a contract with the Department of Energy (“DOE”) 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), obligating DOE to begin disposal of Pilgrim-generated SNF no later than January 31, 1998. Entergy purchased Pilgrim from Boston Edison on July 13, 1999. At that point, DOE had not yet begun to dispose of Pilgrim’s SNF, and DOE still has not done so. The purchase agreement between Entergy and Boston Edison, as interpreted by the parties to that contract, grants Entergy the rights to claims against DOE accruing after the date of purchase.

Entergy filed suit against the United States on November 5, 2003, alleging a partial breach of contract, a breach of the implied covenant of good faith and fair dealing, and an uncompensated taking. Entergy has filed a motion for summary judgment on liability for DOE’s partial breach of contract, and the government has filed its own cross-motion for summary judgment on liability. Entergy avers that DOE has failed to satisfy its obligations to pick up and dispose of Pilgrim’s SNF. The government contends that Entergy lacks the necessary injury in fact to have standing, that a finding of liability prior to the date when the government would first dispose of Pilgrim’s SNF under DOE’s disposal procedures would be inappropriate, and that Entergy has failed to provide the requisite evidence of resultant injury to support a finding of liability. For the reasons set out below, Entergy’s motion for partial summary judgment on liability is granted, and the government’s cross-motion for summary judgment is denied.

BACKGROUND1

The controversy surrounding the storage and disposal of SNF and HLW has been the subject of a number of opinions by the Courts of Appeals for the District of Columbia and Federal Circuits, and by the Court of Federal Claims.2 Because the context for this suit has been described in detail elsewhere, only those facts relevant to the parties’ arguments on the pending motions in this ease are recounted below.

A. The NWPA

On January 7,1983, the NWPA was enacted, in part to “establish the Federal responsibility, and a definite Federal policy, for the disposal” of SNF and HLW, 42 U.S.C. § 10131(b)(2), while ensuring “that the costs of carrying out activities relating to the disposal of such waste and spent fuel will be borne by the persons responsible for generating such waste and spent fuel.” 42 U.S.C. § 10131(b)(4). To accomplish these and other purposes, the NWPA authorized the Secretary of DOE to enter into contracts with any entity that generates or holds title to SNF or HLW of domestic origin for the transfer of title, transportation, and disposal of such spent fuel or waste. Id. § 10222(a)(1). The NWPA conditioned the renewal of facilities’ licenses on their entering or negotiating in good faith to enter such contracts with DOE. Id. § 10222(b)(1)(A).

After notice and a 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 utilities paid (or deferred or prorated payment with accruing interest on the unpaid portion) a one-time fee, as well as a continuing fee based on the amount of electricity a facility generated and sold. Standard Contract, art. VIII.A-B. In exchange for the utilities’ payment of fees, [339]*339the Secretary agreed to dispose of the HLW and SNF generated by and at a contracting nuclear plant beginning no later than January 31, 1998. Id., art. II. The NWPA mandated that the deadline of January 31, 1998 for commencement of disposal services be included in the Standard Contract. 42 U. S.C. § 10222(a)(5).

B. The Standard Contract

The Standard Contract set up a system by which DOE could collect SNF and HLW for disposal. DOE was to issue an annual capacity report (“ACR”) for planning purposes every year beginning on July 1, 1987, which report would set forth the projected capacity for DOE’s disposal facility or facilities and “the annual acceptance ranking relating to DOE contracts for the disposal of SNF and/or HLW,” including a report of the capacity for the ten years following the repository’s opening. Standard Contract, art. IV. B.5(b). This report was to help determine the amount of SNF that DOE would dispose in a given year. Acceptance priority rankings (“APRs”) would determine which SNF would be collected, and such reports were to be issued commencing on April 1, 1991. Id., art. IV.B.5(a). The general rule was that the oldest fuel or waste would have the highest priority. Id., art. VI.B.l.

Beginning on January 1, 1992, utilities could submit delivery commitment schedules (“DCSs”) identifying all SNF and HLW the utility would like DOE to collect starting sixty-three (63) months later. Id., art. V. B.l. DOE was to take action on the DCS within three months of receipt. Id. If DOE disapproved a DCS, it was to advise the utility of the reasons for disapproval in writing and request that the utility submit a revised schedule within thirty days. Id. DOE was required to take action on the revised DCS within sixty days. Id., art. V.B.2. No later than one year prior to the scheduled delivery, utilities were scheduled to submit a final delivery schedule (“FDS”). Id., art. V.C. Utilities 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.

An additional right that utilities possessed under the contract was the right to engage in SNF “put-option” trading. See Standard Contract, art. V.E. (granting utilities “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 receive notice no later than six months before the delivery date and approve the exchange). This provision enabled the market to adjust the order of SNF disposal, a possibility particularly useful to those facilities with less available storage space.

DOE has halted the approval of DCSs. At some time prior to the January 31, 1998 deadline, DOE suspended the DCS process, such that no DCS would be approved. See Pl.’s App. 2, 4 (Dep. of David Zabransky, Contracting Officer, Department of Energy (Apr.

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Bluebook (online)
64 Fed. Cl. 336, 2005 U.S. Claims LEXIS 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/entergy-nuclear-generation-co-v-states-uscfc-2005.