Pacific Gas & Electric Co. v. United States

70 Fed. Cl. 766, 2006 U.S. Claims LEXIS 107
United States Court of Federal Claims·Decided April 25, 2006·No. No. 04-74C·Published·Cited by 12 cases

Opinion

OPINION AND ORDER

HEWITT, Judge.

Plaintiff Pacific Gas & Electric (PG & E) seeks damages from defendant arising from an alleged breach of the Department of Energy (DOE)’s contractual obligations under the Nuclear Waste Policy Act. Complaint (Compl.) It l.1 Plaintiff seeks damages for defendant’s alleged partial breach of contract in Count I of its complaint, see Compl. it 25, restitution of all fees allegedly paid and payable to defendant under such contract in Count II of its complaint, see Compl. 1T 29, [768]*768and just compensation for defendant’s alleged taking of its property in Count III of its complaint.2

Presently before the court are Defendant’s Motion for Summary Judg[ jment Upon Counts II and III of Plaintiffs Complaints (Def.’s Mot. or Motion), Defendant’s Proposed Findings of Uncontroverted Fact (Def.’s PFUF or Proposed Findings), plaintiffs Opposition to Motion for Summary Judgment on Counts II and III of PG & E’s Complaints (Pl.’s Resp. or Response), Defendant’s Reply to Plaintiffs Response to Defendant’s Motion for Summary Judgment Upon Counts II and III of Plaintiffs Complaints (Pl.’s Reply or Reply), and PG & E’s Surre-ply Opposing the Government’s Motion for Summary Judgment on Count II of PG & E’s Complaint (Pl.’s Sur-Reply or Sur-Reply). Pursuant to Rule 56(b) of the Rules of the Court of Federal Claims (RCFC), defendant moves the court to grant partial summary judgment in its favor upon counts II and III of plaintiffs complaint. Def.’s Mot. at 1.

1. Background

On January 7, 1988, Congress enacted the Nuclear Waste Policy Act of 1982 (NWPA), Pub.L. No. 97-425, 96 Stat. 2201 (codified at 42 U.S.C. §§ 10101-10270 (2000)), because of concerns over the disposal of nuclear waste accumulating at nuclear power plants, see Def.’s PFUF 11 l.3 The NWPA authorized the Secretary of DOE to enter into contracts with utilities for the disposal of spent nuclear fuel (SNF) and high-level radioactive waste (HLW). See 42 U.S.C. § 10222(a)(1); Def.’s PFUF IT 3; see generally 42 U.S.C. §§ 10101-10270. The NWPA required that all contracts “shall provide that” DOE will dispose of the waste “beginning not later than January 31, 1998.” 42 U.S.C. § 10222(a)(5)(B); Def.’s PFUF 113. The NWPA also “effectively made entry into such contracts mandatory for the utilities by prohibiting the Nuclear Regulatory Commission [ (NRC) ] from issuing licenses to any operator who has not ‘entered into a contract with the Secretary’ or who ‘is [not] actively and in good faith negotiating with the Secretary for a contract.’ ” Me. Yankee Atomic Power Co. v. United States (Maine Yankee), 225 F.3d 1336, 1337 (Fed.Cir.2000) (quoting 42 U.S.C. § 10222(b)(1)(A) (2000)).

DOE implemented the statute by promulgating the Standard Contract for Disposal of Spent Nuclear Fuel (Standard Contract). 10 C.F.R. § 961.11 (2006). Article VIII of the Standard Contract requires utilities to pay a one-time fee to DOE, based on the amount of electricity generated by the utility prior to April 7, 1983, and an ongoing fee to DOE based on the amount of electricity generated thereafter. Id. In exchange for the fees received by utilities, DOE was required to take title to, transport, and dispose of the nuclear waste stored at the utilities’ facilities, id. art. TV, beginning “not later than January 31,1998,” id. art. II.

On June 30, 1983, PG & E executed a contract with DOE concerning two of its power plants (contract), the terms of which [769]*769were derived from the Standard Contract. Def.’s PFUF H4. In 1994, DOE announced that it could not begin disposing of nuclear waste by January 31,1998 because the repository that it planned to build to store the waste would not be available until at least 2010. See Waste Acceptance Issues, 59 Fed. Reg. 27,007, 27,007-08 (1994). DOE did not begin accepting nuclear waste from PG & E—or any utility—under the Standard Contract by January 31, 1998, Def.’s PFUF U 5, nor has it done so as of the date of this Opinion. In Maine Yankee, the United States Court of Appeals for the Federal Circuit (Federal Circuit) held that DOE had breached the Standard Contract by not beginning to accept, transport, and dispose of SNF by the deadline of January 31, 1998. Maine Yankee, 225 F.3d at 1343.

Plaintiff filed its complaint in this court on January 28, 2004. On September 9, 2005, in another case involving a SNF plaintiff, the Federal Circuit found that because the plaintiff was required to await the government’s performance of the Standard Contract after January 31, 1998, its claim was one of damages for partial, rather than total, breach of contract. Ind. Mich. Power Co. v. United States (Indiana Michigan), 422 F.3d 1369, 1374 (Fed.Cir.2005). The Federal Circuit concluded that “Indiana Michigan can ... obtain recovery for post-breach damages as they are incurred,” id. at 1377, by “bring[ing] suits for damages in the future,” id. at 1378. Like the plaintiff in Indiana Michigan, plaintiff here continues to await the government’s performance of the Standard Contract, and it continues to pay in full all of the fees required under its terms. Compl. 1122. In accordance with Indiana Michigan, on March 30, 2006, this court determined that plaintiffs claim was one of damages for partial breach of contract, see Opinion of March 30,2006 at 3 n. 4, and, consequently, concluded that plaintiff may not seek damages beyond December 31, 2004, see id. at 11, 13; Indiana Michigan, 422 F.3d at 1376-77 (“Because its claim is premised upon the government’s partial breach, [the plaintiffs] damages were limited to those costs incurred prior to the date of its suit”) (emphasis added). The court now considers defendant’s motion for summary judgment of Count II and Count III of plaintiffs complaint.

II. Discussion

A. Standard of Review

Summary judgment is proper when no genuine issues of material fact are in dispute and the moving party is entitled to judgment as a matter of law. RCFC 56(c). Genuine disputes of material fact that may significantly affect the outcome of the matter preclude an entry of judgment. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A genuine dispute concerning a material fact exists when the evidence presented would permit a reasonable jury to find in favor of the non-movant. Anderson, 477 U.S. at 248, 106 S.Ct. 2505.

The non-movant must establish the existence of a material element on which it will bear the burden of proof at trial. Celotex Corp. v. Catrett,

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Pacific Gas & Electric Co. v. United States, 70 Fed. Cl. 766, 2006 U.S. Claims LEXIS 107 (uscfc 2006).

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