San Luis Obispo Mothers for Peace v. United States Nuclear Regulatory Commission

799 F.2d 1268, 17 Envtl. L. Rep. (Envtl. Law Inst.) 20
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 11, 1986
DocketNo. 86-7297
StatusPublished
Cited by1 cases

This text of 799 F.2d 1268 (San Luis Obispo Mothers for Peace v. United States Nuclear Regulatory Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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San Luis Obispo Mothers for Peace v. United States Nuclear Regulatory Commission, 799 F.2d 1268, 17 Envtl. L. Rep. (Envtl. Law Inst.) 20 (9th Cir. 1986).

Opinion

NELSON, Circuit Judge:

San Luis Obispo Mothers for Peace and the Sierra Club (petitioners) challenge an order of the Nuclear Regulatory Commission (NRC) granting operating license amendments for Units 1 and 2 of the Dia-blo Canyon Nuclear Power Plant (Diablo Canyon). The license amendments permit Pacific Gas & Electric Company (PG & E) to expand the capacity of the on-site radioactive spent fuel storage pools at Diablo Canyon. The NRC found that the license amendments involved “no significant hazards consideration” and made them immediately effective without prior public hearings. Because the NRC violated its own regulations in finding no significant hazards consideration with respect to the Dia-blo Canyon amendments, we reverse this finding and remand to the NRC for the [1269]*1269public hearings contemplated by the Atomic Energy Act.

BACKGROUND

Nuclear reactors are operated with fuel contained in rods that are placed in the core of the reactor. As the reactor is operated, radioactive byproducts gradually accumulate in the fuel rods. Eventually, the rods must be removed from the reactor and replaced. The exhausted fuel rods, known as “spent” fuel rods, are placed in pools of water near the reactor. After a period of storage near the reactor, the rods are removed for some other form of permanent waste disposal. See generally Lower Allo-ways Creek Township v. United States Nuclear Regulatory Commission, 481 F.Supp. 443, 445 (D.N.J.1979).

Under PG & E’s original licenses for Diablo Canyon, spent nuclear fuel rods were to be stored on stationary racks secured to the bottom of two pools filled with water, one pool for each of the two units at the plant. Each pool contained racks with 270 spent fuel assembly spaces. PG & E’s amended license allows the storage of the spent fuel rods in free-standing racks not anchored to the base of the pools that contain 1324 spent fuel assembly spaces in each pool. The change in the configuration of the racks in the pools is referred to as “reracking.”

In October 1985, PG & E requested license amendments to permit reracking of the pools. The need for increased storage capacity seems to have been caused by the realization that federal storage facilities for spent nuclear fuel rods would not be available until at least 1998. Under the old configuration of the pools, Diablo Canyon’s storage capacity would be exhausted by 1990.

In January 1986, the NRC published a notice of these proposed amendments to the Diablo Canyon licenses. This notice included a proposed no significant hazards consideration determination. Petitioners timely intervened and requested a hearing. On May 30, 1986, prior to any hearings and based on a staff finding of no significant hazards consideration, the NRC approved the proposed license amendments and made them immediately effective. PG & E began reracking the pool for Unit 1 the next day.

Petitioners then sought stays from both the NRC and this court. On July 2, this court enjoined the reracking of Unit 2 and permitted PG & E to proceed with the reracking on Unit 1 at its own risk. The court further ordered that PG & E not use the pool for the storage of radioactive nuclear waste pending further order of the court.

On July 22, the NRC modified its May 30 order in response to petitioners’ stay request. The NRC order now permits rer-acking of the spent fuel pools prior to the hearing petitioners have requested, but prohibits PG & E from storing more spent fuel in the pools than authorized by the original licenses until the conclusion of the hearing. On August 5, 1986, petitioners amended their petition for review to include the NRC’s latest order.

ANALYSIS

Section 189(l)(a) of the Atomic Energy Act, 42 U.S.C. § 2239(a)(1) (1986 Supp.), sets forth the hearing framework for the amendment of licenses for nuclear power plants. The Act provides that “[i]n any proceeding ... for the granting, suspending, revoking, or amending of any license ..., the Commission shall grant a hearing upon the request of any person whose interest may be affected by the proceeding, and shall admit any such person as a party to such proceeding.” Id. (emphasis added). The hearing shall be held after thirty days’ notice and publication in the Federal Register. The NRC “may dispense with such thirty days’ notice and publication ... upon a determination by the Commission that the amendment involves no significant hazards consideration.” Id.

Prior to 1980, if the NRC staff found that a license amendment presented no significant hazards consideration, the staff issued the amendment without notice or an [1270]*1270opportunity for a prior hearing. 42 U.S.C. § 2289(a) (1962) (amended 1983). In Sholly v. Nuclear Regulatory Commission, 651 F.2d 780 (D.C.Cir.1980), vacated to consider mootness, 459 U.S. 1194, 103 S.Ct. 1170, 75 L.Ed.2d 423 (1983), the District of Columbia Circuit held that the NRC could not make an amendment immediately effective in this manner if there was an outstanding request for a hearing. This decision prompted an amendment to Section 189(a), enacted in 1983, known as the “Sholly” amendment. This amendment provides, in pertinent part, that:

The Commission may issue and make immediately effective any amendment to an operating license, upon a determination by the Commission that such amendment involves no significant hazards consideration, notwithstanding the pendency before the Commission of a request for a hearing from any person. Such amendment may be issued and made immediately effective in advance of the holding and completion of any required hearing. In determining under this section whether such amendment involves no significant hazards consideration, the Commission shall consult with the State in which the facility involved is located. In all other respects such amendment shall meet the requirements of this chapter.

42 U.S.C. § 2239(a)(2)(A). The amendment also provides that the NRC shall promulgate detailed regulations for making a no significant hazards consideration determination. 42 U.S.C. § 2239(a)(2)(C).

Under the NRC’s regulations, the NRC may make a license amendment immediately effective only if the amendment does not:

(1) Involve a significant increase in the probability or consequences of an accident previously evaluated; or
(2) Create the possibility of a new or different kind of accident from any accident previously evaluated; or
(3) Involve a significant reduction in a margin of safety.

10 C.F.R. § 50.92. Although the NRC did consider these amendments in accordance with the form of the regulations set forth above, its analysis of the second standard is contradictory and in direct contravention of Congressional intent in enacting the Sholly amendment.

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799 F.2d 1268, 17 Envtl. L. Rep. (Envtl. Law Inst.) 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-luis-obispo-mothers-for-peace-v-united-states-nuclear-regulatory-ca9-1986.