Pseg Nuclear, l.l.c. v. United States

465 F.3d 1343, 2006 U.S. App. LEXIS 24585, 2006 WL 2801877
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 29, 2006
Docket2005-5162
StatusPublished
Cited by23 cases

This text of 465 F.3d 1343 (Pseg Nuclear, l.l.c. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pseg Nuclear, l.l.c. v. United States, 465 F.3d 1343, 2006 U.S. App. LEXIS 24585, 2006 WL 2801877 (Fed. Cir. 2006).

Opinion

PROST, Circuit Judge.

PSEG Nuclear, L.L.C. and Public Service Electric and Gas Company (collectively “PSEG”) appeal the decision of the United States Court of Federal Claims holding that the court lacked subject matter jurisdiction over PSEG’s breach of contract claims. Fla. Power & Light Co. v. United States, 64 Fed.Cl. 37, 44 (2005) (“Florida Power I”). Because we hold that the Court of Federal Claims possesses subject matter jurisdiction over the claims under the Tucker Act, 28 U.S.C. § 1491(a)(1), we reverse.

BACKGROUND

I.

The breach of contract claims asserted in this case stem from contracts entered into between PSEG and the Department of Energy (“DOE”) under the Nuclear Waste Policy Act of 1982 (“NWPA” or “the Act”), 42 U.S.C. §§ 10101-10270. Congress enacted the NWPA in January 1983 in order to provide for collection and storage of radioactive waste and spent nuclear fuel (collectively “SNF”) by the DOE. Under its scheme, section 302 of the Act authorized the DOE to enter into contracts with companies who generate or hold SNF provided that the companies pay into a fund used to pay for SNF collection and storage. 42 U.S.C. § 10222 (2000). The Act states in pertinent part:

(a) Contracts
(1) In the performance of his functions under this chapter, the Secretary [of Energy] is authorized 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. Such contracts shall provide for payment to the Secretary of fees pursuant to paragraphs
(2) and (3) sufficient to offset expenditures described in subsection (d)....
(5) Contracts entered into under this section shall provide that—
(A) following commencement of operation of a repository, the Secretary shall take title to the high-level radioactive waste or spent nuclear fuel involved as expeditiously as practicable upon the request of the generator or owner of such waste or spent fuel; and
(B) in return for the payment of fees established by this section, the Secretary, beginning not later than January 31, 1998, will dispose of the high-level radioactive waste or spent nuclear fuel involved as provided in this subchapter.

Id. (emphases added).

The DOE engaged in an administrative hearing process to create a single contract with identical terms (“the Standard Contract”) for use with all parties contraction under section 302. The contract included the terms required by the NWPA and also many additional terms. In general, the contract required companies with SNF to pay a fee that the DOE would use to develop an SNF storage facility and to collect and maintain the SNF at the facility. 1 Beginning in 1983, utility companies *1345 with SNF entered into contracts based on the Standard Contract and started paying into the fund while the DOE, presumably, began preparations to start collecting and disposing of the companies’ SNF. 2

Once it became clear that the DOE would not be prepared to begin SNF collection by the January 31, 1998 date in the Standard Contract, the contracting utility companies, including PSEG, brought suit for breach of the Standard Contract. To date, the government asserts that sixty-six such claims have been filed.

II.

One provision of the NWPA discusses judicial review of DOE actions taken pursuant to the NWPA. This provision, section 119, states:

(a) Jurisdiction of United States courts of appeals
(1) Except for review in the Supreme Court of the United States, the United States courts of appeals shall have original and exclusive jurisdiction over any civil action—
(A) for review of any final decision or action of the Secretary, the President, or the Commission under this part; ....

42 U.S.C. § 10139 (2000) (emphasis added).

In several cases, courts of appeals have asserted jurisdiction under section 119 over claims brought challenging DOE actions under the NWPA. The first of these cases was General Electric Uranium v. United States Department of Energy, 764 F.2d 896, 901 (D.C.Cir.1985). In that case, the plaintiff alleged that the DOE abused its discretion when setting one-time fees under its authority under section 302(a)(3) of the NWPA. Although section 302(a)(3) fell within Title III of the Act and section 119 was in Title I and only conferred the courts of appeals with jurisdiction over agency actions “under this part,” the D.C. Circuit held that it possessed jurisdiction over the case. The court reasoned that DOE’s rule setting the one-time fee under section 302(a)(3) was “well within the class of agency actions reviewable under section 119(a)(1)(A).” Id. The court based this determination on three considerations: 1) the structure and language of the NWPA evinced congressional intent to vest the courts of appeals with jurisdiction over cases such as this one; 2) relevant legislative history did not compel a contrary result; and 3) policy considerations supported the conclusion. Id. Subsequently, the D.C. Circuit exercised original jurisdiction over several cases brought under the NWPA challenging agency actions without any discussion of its jurisdictional limits under the statute. 3

Subsequently, the DOE began to see claims under the Standard Contract for its failure to begin collecting SNF from the power companies by January 31, 1998. The DOE initially issued a regulation which stated that it “does not have an unconditional statutory or contractual obligation to accept nuclear waste beginning January 31,1998 in the absence of a repos *1346 itory or interim storage facility constructed under the Act.” 60 Fed.Reg. 21,793 (1995) (“Final Interpretation of Nuclear Waste Acceptance Issues”). However, in Indiana Michigan Power Co. v. Department of Energy, the D.C. Circuit held that, contrary to DOE’s regulation, the agency was obliged to begin accepting SNF on January 31, 1998, even in the absence of a repository. 88 F.3d 1272, 1277 (D.C.Cir.1996). 4 However, the court held that no remedy was available to the companies until after the deadline had passed.

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Bluebook (online)
465 F.3d 1343, 2006 U.S. App. LEXIS 24585, 2006 WL 2801877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pseg-nuclear-llc-v-united-states-cafc-2006.