Shieldalloy Metallurgical Corp. v. Nuclear Regulatory Commission

707 F.3d 371, 404 U.S. App. D.C. 73, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20040, 2013 WL 599469, 76 ERC (BNA) 1154, 2013 U.S. App. LEXIS 3365
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 19, 2013
Docket11-1449
StatusPublished
Cited by2 cases

This text of 707 F.3d 371 (Shieldalloy Metallurgical Corp. v. Nuclear Regulatory Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. 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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Shieldalloy Metallurgical Corp. v. Nuclear Regulatory Commission, 707 F.3d 371, 404 U.S. App. D.C. 73, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20040, 2013 WL 599469, 76 ERC (BNA) 1154, 2013 U.S. App. LEXIS 3365 (D.C. Cir. 2013).

Opinions

Opinion for the Court filed by Senior Circuit Judge WILLIAMS.

Opinion concurring in part and dissenting in part filed by Circuit Judge ROGERS.

WILLIAMS, Senior Circuit Judge.

This case arises from our remand in Shieldalloy Metallurgical Corp. v. NRC, 624 F.3d 489 (D.C.Cir.2010). It concerns, above all, an important question of public safety that demands great clarity and precision, neither of which the agency has supplied: What rules govern the means by which the owner of a licensed nuclear facility may decommission that facility and dispose of its radioactive materials? The Nuclear Regulatory Commission claims that it has taken a clear and consistent approach to answering this question. The clarity and consistency are not apparent to us.

The order now under review, Shieldalloy Metallurgical Corp., CLI-11-12, 74 NRC-(Oct. 12, 2011) (“Order”), presents that issue and several others. All stem from the interaction between the NRC’s regular decommissioning process and a statutory provision (§ 2021 of the Atomic Energy Act, 42 U.S.C. § 2021) authorizing the NRC to transfer regulatory authority over classes of nuclear materials located within a state to the government of that state. Except as to the primary issue just highlighted — the Commission’s basic standards for decommissioning — we find no legal error in the Commission’s Order; as to that issue, however, our inability to understand the key regulatory materials purportedly guiding the agency’s exercise of control over decommissioning requires another remand.

* * *

Petitioner Shieldalloy Metallurgical Corporation is an industrial company that manufactured metal alloys in Newfield, New Jersey between 1955 and 1998. Its manufacturing process generated radioactive byproducts, which the company held at the Newfield facility under license from the NRC. In the early 1990s, Shieldalloy began consulting with the NRC on the development of a proposal to decommission the facility and dispose of its radioactive materials on-site. It proposed that the disposal would be “restricted,” an NRC term of art requiring special conditions designed to minimize the risks to public health and safety. Restricted disposal- is in contrast to “unrestricted,” under which remediation and reduction of radiation levels have proceeded to the point where there is no need for limits on public access to the disposal site. See 10 C.F.R. § 20.1003 (definitions of “restricted area” and “unrestricted area”). These consultations stretched on for many years and culminated in a formal decommissioning plan, which Shieldalloy submitted to the agency in 2002.

The NRC rejected the 2002 plan as technically deficient. After further consultations with NRC staff, Shieldalloy submitted a second, revised plan in 2005. The NRC rejected that plan, too, with comments. In 2006, Shieldalloy submitted a third plan, which responded to the NRC’s comments, as well as to NRC guidance on decommissioning of licensed facilities issued earlier in 2006. The NRC accepted this third plan for the purposes of technical review, but still sought further clarification from Shieldalloy on various aspects. In the summer of 2009, Shieldalloy submit[374]*374ted a fourth plan that was responsive to these last inquiries. The agency never reviewed that document.

In 2008, while the NRC was reviewing the 2006 plan, New Jersey applied for a transfer of regulatory authority over instate nuclear materials, pursuant to § 2021 of the Act. The NRC made an initial determination that the transfer to New Jersey would satisfy § 2021(d)’s requirement that the state’s regulatory program be “compatible” with that of the NRC, and sought comments from the public. Shieldalloy filed a letter asserting incompatibility between the programs. To no avail: the agreement transferring authority to New Jersey went into effect in September 2009, barely a month after Shieldalloy submitted the fourth version of its decommissioning plan. Less than two weeks later, New Jersey informed Shieldalloy that its 2009 plan — which the NRC had forwarded to the state — did not meet the state’s remediation requirements.

Fearing that New Jersey would require it to abandon its plans for on-site disposal and pursue a more expensive off-site alternative (again, in NRC parlance, “unrestricted”), Shieldalloy appealed to this court. We agreed with the company in part and remanded the case to the agency. See Shieldalloy Metallurgical Corp., 624 F.3d at 489. Specifically, we found that the NRC had not responded meaningfully to Shieldalloy’s invocation of criterion 25 of the Commission’s “Criteria Document:”1

Existing NRC Licenses and Pending Applications. In effecting the discontinuance of jurisdiction, appropriate arrangements will be made ... to ensure that there will be no interference with or interruption of ... the processing of license applications, by reason of the transfer.

46 Fed.Reg. 7540, 7543 (Jan. 23, 1981). Shieldalloy had argued that as its license application had already been years in processing, transfer to New Jersey would clearly interrupt the process. See Shiel-dalloy, 624 F.3d at 493. Further, Shieldal-loy had suggested that if the Commission wished to generally transfer authority over in-state nuclear materials to New Jersey, there was nothing to prevent it from reserving the Newfield facility from any such transfer.

To this twofold claim, the NRC offered a twofold response. As to the risk of an interruption in seeming violation of criterion 25, it expressed confidence that there would be a “smooth transition” in the processing of pending licensing actions (including decommissioning applications) because New Jersey’s regulatory scheme recognized existing NRC licenses and would continue “any licensing actions that are in progress.” Id. at 494 (quotations removed). As to Shieldalloy’s preferred solution — excepting Newfield from the transfer — the NRC claimed that the legislative history of § 2021 showed that Congress did not contemplate its allowing “concurrent regulatory authority over licensees.” 624 F.3d at 493. We rejected both elements of the defense for reasons elaborated in our earlier opinion. Id. at 493-95.

Shieldalloy’s initial suit raised a further claim, which we noted but did not address because Shieldalloy had not raised it sufficiently with the Commission. See 624 F.3d at 495-97. This other claim pertained to a cost-benefit analysis principle embedded in the NRC’s regulatory program called the ALARA principle, which, [375]*375as we explain more thoroughly below, refers to the requirement that residual radiation at a site be “as low as reasonably achievable.”

The core of Shieldalloy’s ALARA claim was that the New Jersey decommissioning regime, unlike the NRC’s, requires exhumation and off-site disposal of radioactive materials even where that course of action would expose the public to higher doses of radiation than on-site disposal. Thus, Shieldalloy contended, “while New Jersey’s standards may be more stringent, they are actually less safe.” 624 F.3d at 496. And while a Commission policy statement, its Compatibility Guidance Document,2

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707 F.3d 371, 404 U.S. App. D.C. 73, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20040, 2013 WL 599469, 76 ERC (BNA) 1154, 2013 U.S. App. LEXIS 3365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shieldalloy-metallurgical-corp-v-nuclear-regulatory-commission-cadc-2013.