Lead Opinion
Entergy Nuclear Vermont Yankee, LLC, and Entergy Nuclear Operations, Inc., (collectively, “Entergy”)
BACKGROUND
We summarize here those findings of fact relevant to this appeal that were made by the district court following the bench trial.
I. The History of Vermont Yankee
In 1972, Vermont Yankee opened and began operating under the ownership and management of the Vermont Yankee Nuclear Power Corporation (VYNPC), a joint venture of eight New England retail electric utilities. Among the eight members of the joint venture were two Vermont electric companies (Central Vermont Public Service and Green Mountain Power), which owned a collective fifty-five percent share of Vermont Yankee. Vermont Yankee had been granted a forty-year Facility Operating License by the Atomic Energy Commission, the federal agency that preceded the Nuclear Regulatory Commission (NRC). The forty-year license was to expire on March 21, 2012.
In 1999, VYNPC sought to sell Vermont Yankee. After an initial bid by one firm was rejected by the Vermont Public Service Board (the “Board”),
On June 13, 2002, the Board approved the sale of Vermont Yankee to Entergy and issued a new CPG. In its Decision and Final Order, the Board stated that the sale of Vermont Yankee to Entergy would “promote the general good” in part because, “under most reasonably foreseeable scenarios, the transactions are highly likely to produce an economic benefit for Vermont ratepayers.” In re Vt. Yankee Nuclear Power Corp., Docket No. 6545,
In 2002, Entergy obtained from the Federal Energy Regulatory Commission (FERC) authorization to sell power into the interstate market under a market-based tariff, which remains in effect. The authorization permits Entergy to sell power wholesale through ISO-New England (“ISO-NE”), a nonprofit independent system operator under FERC regulation that administers New England’s energy markets. ISO-NE’s stated responsibilities are to maintain “reliable power system operations,” ensure “efficient and competitive markets,” and to “administer [the] regional transmission tariff, including comprehensive regional system planning.”
II. The Recent Vermont Legislation Concerning Vermont Yankee
A. Act 74: The Vermont Legislation Concerning Increased Nuclear Waste Storage by Vermont Yankee
In 2003, Entergy petitioned the Board to obtain a twenty-percent “uprate,” which would allow an increase in Vermont Yankee’s power output and also result in a concomitant increase in nuclear waste. See Entergy Nuclear Vt. Yankee, LLC v. United States,
At the same time that Entergy sought the uprate, it also entered into a new MOU (the “2003 MOU”) with the Department under which Entergy would pay $6 million into new “State Benefits Funds,” namely the “Environmental Benefit Fund,” the “Low Income Benefit Fund,” and the “Entergy Fund for Economic Benefit.” See Entergy Nuclear,
In response, Entergy presented proposed legislation clarifying that section 6505 was site-specific, rather than owner-specific. This proposal failed to obtain support from the Vermont Legislature, however. The Vermont Legislature then began hearings on the bill that would eventually become Act 74.
Act 74, which was enacted on June 21, 2005, had two principal effects. First, Entergy would only need to seek a CPG from the Board before constructing storage facilities for new spent nuclear fuel, rather than the Vermont Legislature as had been required by section 6501(a). However, this CPG would remain in effect only until March 21, 2012. The second effect of Act 74 was that after March 21, 2012, the storage of any new spent nuclear fuel in Vermont would require an affirmative vote by the Vermont Legislature. If no such affirmative vote occurred, storage of nuclear waste generated from operations after March 21, 2012, would not be permitted. Thus, Vermont Yankee would have to shut down.
The post-March 21, 2012, shift of responsibility for approving the storage of spent nuclear fuel generated by Vermont Yankee from the Board to the Vermont Legislature had important ramifications. Decisions of the Board may be appealed to
Act 74 added three new sections to title 10 of the Vermont Statutes: sections 6521, 6522, and 6523. Section 6521 outlines the Vermont Legislature’s findings, including recognition of the need to develop renewable and environmentally sustainable energy sources in Vermont. Vt. Stat. Ann. tit. 10, § 6521. To support this objective, section 6521 references the state’s creation of an “energy efficiency fund ... to support cost-effective investments in end-use energy efficiency resources,” and a statewide energy purchasing pool with a “related program to accelerate investments in new renewable and combined-heat and power projects.” Id.
Section 6522 restates the requirement that the owners of Vermont Yankee cannot construct new spent fuel storage facilities for the period up to March 21, 2012, unless they obtain a CPG from the Board. Id. § 6522(a). Section 6522 also mandates that the Board find that the owners of Vermont Yankee have adequate resources to manage spent fuel and decommission the plant, if necessary, and a plan “to remove all spent fuel from Vermont to a federally certified long-term storage facility in a timely manner,” and that the owners comply with any existing MOUs with the state. Id. § 6522(b). Lastly, section 6522 states that any CPG issued by the Board pursuant to Act 74 will apply to spent nuclear fuel generated by Vermont Yankee only until March 21, 2012, which is the “end of the current operating license.” Id. § 6522(c)(2). This provision states that the owners have no “expectation or entitlement to continued operation of Vermont Yankee following the expiration of its current operating license on March 21, 2012.” Id. § 6522(c)(5). Section 6522(c)(4) provides that Vermont Yankee cannot store spent nuclear fuel generated after March 21, 2012, on site, unless the Vermont Legislature enacts legislation granting such permission. In the absence of any other storage options, this would effectively shut down Vermont Yankee.
Section 6523
On June 22, 2005, the day after Act 74 went into effect, Entergy filed a petition with the Board seeking to construct a dry fuel storage facility at Vermont Yankee, which, as mentioned, the NRC had already pre-licensed. In re Entergy Nuclear Vt. Yankee, LLC,
B. Act 160: The Vermont Legislation Requiring State Legislative Approval To Operate Vermont Yankee After 2012
On January 25, 2006, Entergy applied to the NRC for a renewal license to operate Vermont Yankee through March 21, 2032. One week later, on February 1, 2006, the Vermont Legislature began considering the bill that would eventually become Act 160. Act 160 was passed on May 18, 2006, and provides that “a nuclear energy generating plant may be operated in Vermont only with the explicit approval of the General Assembly.” Act 160, § 1(a).
Act 160 provides that, in deciding whether to approve operation of a nuclear power plant, the Vermont Legislature should consider “the state’s need for power, the economics and environmental impacts of long-term storage of nuclear waste, and choice of power sources among various alternafives.” Id. The preamble states that Act 160’s general purpose is to provide the Vermont Legislature with the authority to determine whether to issue a new CPG for Vermont Yankee after March 21, 2012. Id. § 1(c). Act 160 would also help foster a “larger societal discussion of broader economic and environmental issues relating to the operation of a nuclear facility in the state, including an assessment of the potential need for the operation of the facility and its economic benefits, risks, and costs,” and of alternative methods of power generation as well. Id. § 1(d). Act 160 also includes a stated purpose of ensuring that the evaluation of new CPGs be conducted under new cost-benefit assumptions and analyses, rather than those that supported the previous CPG. Id. § 1(e).
Act 160 adds three new sections to title 30 of the Vermont Statutes: sections 248(e)(2), 248(m), and 254. Section 248(e)(2) requires that the Vermont Legislature approve an extension of the Vermont Yankee operating lease before the Board issues a new CPG. See Vt. Stat. Ann. tit. 30, § 248(e)(2). Legislative approval for continued operation of Vermont Yankee is no longer limited to issues concerning spent fuel storage, as under section 6522(c)(4) of Act 74; rather, Act 160 requires that the Vermont Legislature approve all aspects of the continued operation of Vermont Yankee. Section 248(m) requires that the Board “evaluate the application [for a new CPG] under current assumptions and analyses” and not apply “an extension of the cost benefit assumptions and analyses forming the basis of the previous certificate of public good for the operation of the facility.” Id. § 248(m). Lastly, section 254 requires that the own
(A) to facilitate public discussion of long-term economic and environmental issues relating to the operation of any nuclear facility in the state;
(B) to identify and assess the potential need for the operation of the facility and its long-term economic and environmental benefits, risks, and costs; and
(C) to assess all practical alternatives to those set forth in the applicant’s petition that may be more cost-effective or that otherwise may better promote the general welfare.
Id. § 254(b)(1).
Section 254 also requires that the Department collect information relating to Entergy’s “funding plans for guardianship of nuclear waste after licensure but before removal of nuclear waste from the site,” plant closure procedures, and funding for emergency management systems. One subsection of section 254 requires the Department to “identify, collect information on, and provide analysis of long-term environmental, economic, and public health issues, including issues relating to dry cask storage of nuclear waste and decommissioning options.” Id. § 254(b)(2)(B). The Department is further directed to report its findings to the Board and to the Vermont Legislature. Id. § 254(a)(2)-(3). The Board, in turn, is directed to consider the findings of the Department in assessing an application for a new CPG. Id. § 254(c).
C. Act 189: The Vermont Legislation Requiring State Inspections of Vermont Yankee
On June 5, 2008, then-Vermont Governor Jim Douglas signed into law Act 189, entitled “An Act Relating to a Comprehensive Vertical Audit and Reliability Assessment of the Vermont Yankee Nuclear Facility.” The purpose of Act 189 was to assist the Vermont Legislature in making its determination as to whether Vermont Yankee should be permitted to operate past 2012, and to reconfirm the “obligation and authority of the general assembly to examine the reliability of the nuclear power station of Entergy Nuclear Vermont Yankee.” Act 189, § 1(a).
Act 189 calls for Department inspections of Vermont Yankee’s operations, such as its electrical, emergency, and mechanical systems. Id. §§ 3(a), 5(a). The Act also sets out documentation requirements and inquiries that must be undertaken by the Department relating to the installation, maintenance, and inspection of safety systems in Vermont Yankee. Id. § 4. To
D. S.289: The Vermont Senate Bill That Would Have Permitted the Continued Operation of Vermont Yankee Beyond 2012, as Required by Act 160
On January 7, 2010, Entergy disclosed a leak of tritium, a decay product of nuclear energy, emanating from Vermont Yankee. Entergy stopped the leak and remediated its impact on the surrounding soil, and after a subsequent investigation, the NRC concluded that the “public’s health and safety and the off-site environment were not adversely affected.” A report by an independent consulting group retained by the State of Vermont concluded, on April 30, 2010, that the leak did not affect the reliability of Vermont Yankee.
At the time of the leak, the Vermont Senate was considering S.289, which was originally titled, “An Act Relating to Approval for Continued Operation of the Vermont Yankee Nuclear Power Station.” S.289, if passed, would have authorized the operation of Vermont Yankee for an additional twenty years past March 21, 2012, as required by Act 160. Although the NRC granted a twenty-year renewal for the operation of Vermont Yankee on March 21, 2011, S.289 failed to pass in the Vermont Senate. As a result, Vermont Yankee has not been granted permission by the Vermont Legislature to operate past March 21, 2012.
Collectively, under Acts 74 and 160, and due to the failure to pass S.289, the operation of Vermont Yankee after March 21, 2012, depends upon the Vermont Legislature approving the power plant’s continued operation. As the Vermont Legislature has failed to act, Vermont Yankee’s CPG expired on March 21, 2012, and the plant would have been forced to shut down absent the district court’s decision below.
In making its determination whether to permit further operation, the Vermont Legislature is required by Acts 74 and 160 to consider the impact of the local storage of spent nuclear fuel on the local economy and environment, and on the diversity of power sources available to Vermont retail utilities. Under the two Acts, the Vermont Legislature must also consider the following in determining whether to allow Vermont Yankee to continue operating: (1) the “public health” implications related to dry cask storage of nuclear waste and decommissioning of the plant; (2) Entergy’s resources for emergency management systems, management of spent nuclear fuel storage, and decommissioning of the plant; (3) Entergy’s planning for the removal of nuclear waste; and (4) Entergy’s long-term plan for the closure of Vermont Yankee.
In addition, Acts 74 and 160 require that Entergy comply with the 2002, 2003, and 2005 MOUs. Those MOUs impose, inter alia, the following additional requirements on Entergy, apart from making payments into a fund used to promote alternative energy sources: (1) analysis of the operational safety of Vermont Yankee in the event of flooding in excess of federal licensing requirements; (2) compliance with specific requirements for the construction and monitoring of spent nuclear fuel casks;
III. Proceedings Before the District Court
On April 18, 2011, Entergy brought suit in the United States District Court for the District of Vermont against the Governor and Attorney General of the State of Vermont and the members of the Vermont Public Service Board. The complaint sets forth three claims:
• Count One: Entergy sought a permanent injunction and declaration that Act 74, Act 160, and Act 189 are invalid under the Supremacy Clause of the United States Constitution because they are preempted by the Atomic Energy Act. Entergy Nuclear Vt. Yankee, LLC v. Shumlin,
• Count Two: Entergy sought a permanent injunction and declaration that the Federal Power Act preempts the State of Vermont from conditioning Vermont Yankee’s continued operation on the existence of a power purchase agreement between Vermont Yankee and Vermont’s retail utilities, because FERC has exclusive jurisdiction over the regulation of power transmission and sale. Id. at 189.
• Count Three: Entergy sought a permanent injunction and declaration that Vermont may not condition continued operation of Vermont Yankee on the existence of a power purchase agreement, because doing so places substantial burdens on interstate commerce, in violation of the dormant Commerce Clause. Id.
On January 19, 2012, the district court issued its opinion following a bench trial. The court first concluded that the Atomic Energy Act facially preempts Act 160, which, through the operation of section 248(e)(2), effectively allows the Vermont Legislature to “deny a pending renewal petition by taking no action on the petition, for any reason, procedural or substantive, stated or unstated, permissible or impermissible under federal law.” Entergy Nuclear,
The district court performed the same analysis of Act 74. The court reasoned that by not permitting Entergy to store spent nuclear fuel generated after March 21, 2012, in Vermont, “absent affirmative action by the General Assembly,” section 6522(c)(4) effectively “permits the General Assembly to fail to act on a pending petition to store spent fuel for radiological safety reasons, in a manner that evades review.” Entergy Nuclear,
As to Entergy’s preemption challenge to the PPA under the Federal Power Act, the district court considered the scope of FERC authority under the Act and the “filed-rate doctrine,” which holds that “state courts and regulatory agencies are preempted by federal law from requiring the payment of rates other than the federal filed rate.” Id. at 233-34. The district court noted that Vermont Yankee has been operating under a market-based tariff filed with FERC, which only requires that the seller of power “enter into freely negotiated contracts with purchasers,” as opposed to setting a prescribed rate. Id. at 234 (quoting Morgan Stanley Capital Grp., Inc. v. Pub. Util. Dist. No. 1 of Snohomish Cnty.,
Lastly, the district court found merit in Entergy’s claim that Vermont had conditioned “approval of a CPG for continued operation on the existence of a power purchase agreement at below-wholesale market rates” in violation of the dormant Commerce Clause. Id. at 235. The court concluded that an injunction was an appropriate remedy in this case, even though no new PPA past March 21, 2012, had yet been issued, because there was “evidence of intent to condition continued operation on the demonstration of some marked ‘economic benefit,’ ... in the form of below-wholesale-market long-term power purchase agreements for Vermont utilities.” Id. at 236. The court made this finding by examining the materials submitted and testimony of the representatives of the Department in proceedings before the Board, as well as the statements of state legislators, to find impermissible intent on the part of the defendants. Id. at 236-39. On this basis, the court issued an injunction “enjoin[ing] Defendants from conditioning Vermont Yankee’s continued operation on the existence of a below-market PPA with Vermont utilities.” Id. at 239.
Vermont appeals the district court’s determinations with respect to Entergy’s challenges to Acts 74 and 160 under the Atomic Energy Act and Entergy’s claim under the dormant Commerce Clause. Entergy cross-appeals the district court’s determination that its preemption challenge under the Federal Power Act is premature. Neither party appeals the district court’s determination that the challenge to Act 189 is moot because the safety assessments mandated by Act 189 had been completed by the time of trial.
DISCUSSION
I. Standard of Review
“We review de novo a district court’s application of preemption principles.” N.Y. SMSA Ltd. P’ship v. Town of Clarkstown,
A district court’s grant of a permanent injunction is reviewed for abuse of discretion. ACORN v. United States,
II. Analysis
A. Atomic Energy Act Preemption Claim
A(l). Preemption Principles
The Supremacy Clause of the United States Constitution provides that federal law “shall be the supreme Law of the Land.” U.S. Const, art. VI, cl. 2. In determining whether preemption exists, we must “start with the assumption that the historic police powers of the States were not to be superseded by the Federal Act unless that was the clear and manifest purpose of Congress.” Wyeth v. Levine,
There are several forms of preemption. “The most obvious is where Congress expressly states that it is preempting state authority.” Cnty. of Suffolk v. Long Island Lighting Co.,
A(2). The Atomic Energy Act and Pacifíc Gas
The domestic nuclear power industry had its genesis in the Atomic Energy Act of 1946, in which Congress “contemplated that the development of nuclear power would be a Government monopoly.” Duke Power Co. v. Carolina Envtl. Study Grp., Inc.,
Nonetheless, “[t]here is little doubt that under the' Atomic Energy Act of 1954, state public utility commissions or similar bodies are empowered to make the initial decision regarding the need for power.” Vt. Yankee Nuclear Power Corp. v. Natural Res. Def. Council, Inc.,
It was against this background that the Supreme Court issued its 1983 decision in Pacific Gas, which concerned whether the Atomic Energy Act preempted a California state statute, the Warren-Alquist State Energy Resources Conservation and Development Act (the “Warren-Alquist Act”).
[FJirst, if not properly stored, nuclear wastes might leak and endanger both the environment and human health; second, the lack of a long-term disposal option increases the risk that the insufficiency of interim storage space for spent fuel will lead to reactor-shutdowns, rendering nuclear energy an unpredictable and uneconomical adventure.
Id. at 196-97,
The Court then considered whether the Warren-Alquist Act was preempted because “it regulates construction of nuclear plants and because it is allegedly predicated on safety concerns.” Id. at 204,
The Court then examined the purposes underlying section 25524.2, emphasizing that a state statute that seeks to “regulate the construction or operation of a nuclear powerplant ... even if enacted out of non-safety concerns, would nevertheless directly conflict with the NRC’s exclusive authority over plant construction and operation.” Id. at 212,
A(3). The Evolution of the Wholesale Energy Market After Pacific Gas
Critical to appreciating the Supreme Court’s concern in Pacific Gas about the prospect of state responsibility for rising nuclear energy costs is an understanding of the structure of the retail energy market in the 1970s and-1980s. In that era, electric utilities were typically vertically integrated entities that sold the power they generated directly to in-state retail consumers. State regulatory agencies would focus on the “retail rates charged directly to the public.” Pub. Util. Dist. No. 1 of Snohomish Cnty. Wash. v. FERC,
As a result of this market structure, “electricity generation, transmission, and distribution for a particular geographic area were generally provided by and under the control of a single regulated utility.” Midwest ISO Transmission Owners v. FERC,
The national marketplace for power began to evolve in the late 1970s. First, Congress passed the Public Utility Regulatory Policies Act of 1978 (PURPA), 16 U.S.C. §§ 2601 et seq., which sought “to promote the development of new generating facilities and to conserve the use of fossil fuels.” New York, 535 U.S. at 9,
By the late 1990s, the structure of the power industry had changed dramatically. Many integrated utilities had divested their generating assets, and new participants entered the market “in the form of both independent and affiliated power marketers and generators as well as independent power exchanges.” Regional Transmission Organizations, Order No. 2000, 89 F.E.R.C. ¶ 61,285, at *7 (Dec. 20, 1999). Many formerly retail utilities became independent “merchant generators,” selling the power they generated wholesale across state lines. The emergence of merchant generators placed a significant strain on existing power grids. In response, FERC sought to organize owners of trans
The development of merchant generators had two effects on the marketplace for power that are relevant here. First, consumers gained access to new sources of power, which meant that they were no longer captive to a single in-state provider. See Transmission Access,
With the advent of merchant generators, the challenge of identifying a long-term spent nuclear fuel storage solution has grown even more pressing. After a useful life of four-to-six years, spent nuclear fuel rods are thermally hot when removed from reactors and emit substantial amounts of radiation. New York v. NRC,
A(4). Act 160
With this general background in mind, we begin our preemption analysis of Act 160, the most recent of Vermont’s legislative enactments at issue.
As an initial matter, we must consider whether it is appropriate to consider a facial challenge to Act 160. In this regard, we find it important that Act 160, through the operation of section 248(e)(2), transfers the process for determining whether to approve a new operating license for Vermont Yankee from the Board to the Vermont Legislature. Before the passage of Act 160, the Board’s decision
Because a “state moratorium” on the operation of Vermont Yankee “grounded in safety concerns falls squarely within the prohibited field,” Pacific Gas,
The legislative policy and purpose section of Act 160 sets forth several rationales for the statute. Section 1(a) states that “a nuclear energy generating plant may be operated in Vermont only with the explicit approval of the General Assembly expressed in law,” and that legislative approval requires a “public deliberation” of such factors as “the state’s need for power, the economics and environmental impacts of long-term storage of nuclear waste, and choice of power sources among various alternatives.” Act 160 § 1(a). The statute later states that the issue of long-term spent fuel storage should be framed as
a part of the larger societal discussion of broader economic and environmental issues relating to the operation of a nuclear facility in the state, including an assessment of the potential need for the operation of the facility and its economic benefits, risks, and costs; and in order to allow opportunity to assess alternatives that may be more cost-effective or*416 that otherwise may better promote the general welfare.
Id. § 1(d). Drawing on the language in sections 1(a) and 1(d), Vermont argues that Act 160 advances two policy interests: (1) increased use of a diverse array of renewable power sources; and (2) promotion of energy sources that are more cost-effective.
Although Vermont’s asserted policy interests would not necessarily interfere with the preempted concern of radiological safety, our inquiry does not end at the text of the statute.
We do not blindly accept the articulated purpose of [a state statute] for preemption purposes. If that were the rule, legislatures could “nullify nearly all unwanted federal legislation by simply publishing a legislative committee report articulating some state interest or policy — other than frustration of the federal objective — that would be tangentially furthered by the proposed state law.”
Greater N.Y. Metro. Food Council, Inc. v. Giuliani,
However, this argument presupposes that Vermont retail utilities lack choices with respect to the sources of the energy they purchase. “[S]tates have broad powers under state law to direct the planning and resource decisions of utilities under their jurisdiction. States may, for example, order utilities to build renewable generators themselves, or ... order utilities to purchase renewable generation.” S. Cal. Edison Co. San Diego Gas & Elec. Co.,
As to the second goal of containing costs, Vermont argues that the economic rationale relied on by the Pacific Gas Court applies with equal force here. Vermont suggests that shutting down Vermont Yankee might assist the State in identifying “alternatives that may be more cost-effective.” However, this argument is also not persuasive in light of Vermont Yankee’s status as a merchant generator. Increases in the prices Vermont Yankee charges for its power would not be borne directly by a captive audience of retail consumers, as was the case for California residents in Pacific Gas. Instead, Vermont
Vermont’s second economic argument regarding the State’s potential future liability for decommissioning costs is also of little weight. Vermont contends that the recent collapse of the plan to construct a long-term spent nuclear fuel storage facility in Yucca Mountain means that “[i]f plant operators such as Entergy become insolvent or abandon their obligations, the financial burdens will fall on host states.” However, “[i]n 1988, the Nuclear Regulatory Commission adopted a final rule requiring operators of nuclear facilities to file decommissioning plans, and to pre-fund decommissioning by placing money aside in an external sinking fund.” Neb. Pub. Power Dist. v. MidAmerican Energy Co.,
We must also look to the statute’s legislative history to determine if it was passed with an impermissible motive. Vermont argues that Pacific Gas forecloses the use of legislative history to analyze a state statute for Atomic Energy Act preemption, noting the Court’s dictum describing “inquiry into legislative motive [as] often an unsatisfactory venture.”
Vermont argues that the task of determining the legislative intent behind Act 160 is particularly difficult in this case because the Vermont Legislature, as a “part-time citizen body, does not produce formal committee reports like those Congress prepares, and it has no requirement to preserve complete records of its proceedings.” In addition, “[e]ommittee hearings are generally recorded, but are not contemporaneously transcribed, and often do not identify the speaker. Floor debates are usually recorded in the Senate, but not in the House of Representatives.” For this reason, Vermont argues that much of the legislative history behind Act 160 is “missing or incomplete.”
We agree with the district court’s careful analysis of the legislative intent motivating Vermont’s enactment of Act 160 insofar as the district court identified radiological safety as the Vermont legislature’s primary purpose in enacting the statute.
The Vermont Senate Finance Committee conducted its first hearings on the bill that would ultimately become Act 160 only days after Entergy filed its application with the NRC for an extension of its operating license for Vermont Yankee past 2012. During those first hearings, the committee chair and the chairman of the Board engaged in an extended colloquy regarding the permissible legislative purposes for the bill, with particular emphasis on Pacific Gas and its roadmap for appropriate state legislative regulation of nuclear facilities. After being informed that regulation based on radiological safety was preempted and impermissible, the committee chair responded, “Okay, let’s find another word for safety,” an approach also
The record also indicates that during hearings on the bill that would become Act 160, members of the Department, regulators, and Vermont legislators repeatedly demonstrated awareness of the potential for a preemption problem and disguised their comments accordingly. For example, during a hearing of the Senate Finance Committee on the bill that would become Act 160, a member of the Vermont State Nuclear Advisory Panel told the committee chair that the Board “is not allowed to think about safety, as you know,” but then proceeded to opine on various safety risks. The committee chair then admonished the panel member to speak purely about “economic risks,” which led that individual to suggest that “a safety problem has economic implications, too.” The committee also heard testimony from a professor at a local law school and former chairman of the Board, who warned the committee that because “the State is preempted in its concerns about radiological safety,” the “State has to make its decision on other grounds, which would include anything from aesthetics to the obvious ones about financial implication to such things as reliability of the electric grid.” During a subsequent exchange, the current chairman of the Board instructed the committee on whether and in what circumstances it could “talk about public health.” A member of the Department then recommended that “some alternative language be placed into the bill” so as to avoid the issues referenced by the chairman of the Board. These are not merely isolated comments by a few legislators, but rather a part of a consistent effort by those responsible for drafting and passing Act 160 to obfuscate the record through the use of misleading statements that they thought would pass muster under Pacific Gas. We conclude that the district court carefully, fairly, and properly analyzed the legislative intent undergirding Act 160 and found that it demonstrated an impermissible primary purpose on the part of the Vermont Legislature.
We likewise affirm the district court’s grant of a permanent injunction enjoining the defendants from enforcing Act 160. A plaintiff seeking a permanent injunction must demonstrate:
(1) that it has suffered an irreparable injury; (2) that remedies available at law, such as monetary damages, are inadequate to compensate for that injury; (3) that, considering the balance of hardships between the plaintiff and defendant, a remedy in equity is warranted; and (4) that the public interest would not be disserved by a permanent injunction.
A(5). Act 74
As with Act 160, our analysis of Act 74 begins with the text of the statute. Act 74 adds three sections to title 10 of the Vermont statutes: sections 6521, 6522, and 6523. As discussed above, section 6521 summarizes the stated legislative findings. Vt. Stat. Ann. tit. 10, § 6521. Section 6522 requires that the Board make certain findings before issuing a CPG allowing an expansion of the spent nuclear fuel storage facility beyond the capacity previously authorized, and for any such expansion after the expiration of the CPG on March 21, 2012, the affirmative approval of the Vermont Legislature is required. Id. § 6522(c)(2), (c)(4). Section 6523 establishes a “Clean Energy Development Fund” into which, pursuant to the 2003 MOU entered into between Entergy and the Department, Entergy would make payments for the purpose of promoting “cost-effective and environmentally sustainable” power for the “long-term benefit of Vermont electric consumers.” Id. § 6523 (current version at Vt. Stat. Ann. tit. 30, § 8015).
Act 74 also incorporates the 2005 MOU, which imposes on Entergy a variety of requirements related to radiological safety. These requirements include rules regarding the placement and configuration of dry-fuel-storage facilities that exceed the licensing standards required by the NRC; the spacing of casks; temperature and radiation monitoring with concomitant reporting requirements to the Department; and the density of spent-fuel pools. 2005 MOU at 1-2. The 2005 MOU also prohibits the storage of waste generated outside Vermont on site, and requires Entergy to use its best efforts to move the spent nuclear fuel generated by Vermont Yankee to a permanent location outside the state as soon as possible. Id. at 2.
Lastly, much like Act 160, section 6522 allows the Vermont Legislature to terminate the operation of Vermont Yankee after March 21, 2012, by refusing to act affirmatively. This effectively codifies the Vermont Attorney General’s opinion that section 6505, which had previously exempted Vermont Yankee from the provision requiring legislative approval of new dry cask storage facilities codified at sec
The reasons for the statute articulated in Act 74’s legislative findings section mirror many of those offered in the preamble to Act 160. For instance, section 6521 expresses the State’s goal of making its “future power supply ... diverse, reliable, economically sound, and environmentally sustainable.” Vt. Stat. Ann. tit. 10, § 6521(3). The statute also emphasizes the State’s need “to make a smooth transition to the future,” which requires accelerating ‘Vermont’s investment in electricity resources that are economically and environmentally sound and that can be acquired in modest increments.” Id. § 6521(4). To make this “transition,” the statute states, “there is a great value in investing in renewable energy sources, efficient, combined heat and power facilities, and energy efficiency.” Id. § 6521(5).
These statements of legislative purpose reflect the two policy interests Vermont argues are advanced by Act 160: (1) increased use of a diverse array of renewable power sources; and (2) promotion of energy sources that are more cost-effective. For the reasons discussed above, we believe that neither of these interests is plausibly served by Act 74’s conferring unreviewable power over the continued operation of Vermont Yankee past March 21, 2012, on the Vermont Legislature. In addition, the regulations relating to radiological safety incorporated into Act 74 from the 2005 MOU demonstrate that the Vermont Legislature’s primary motivation in enacting Act 74 relates to neither diversifying the State’s power supply nor reducing costs. We therefore turn to the legislative history behind Act 74 to determine the actual intent motivating its passage.
As with Act 160, we find that the district court’s comprehensive review of the legislative history demonstrates convincingly that Act 74 was motivated by impermissible concerns about the radiological safety of spent nuclear fuel storage. We note again the frequency with which concerns about radiological safety appear in the legislative record in Senate committee meetings and floor debates from legislators and regulators, notwithstanding obvious and frequent attempts to avoid specific mention of safety concerns and of deference to Pacific Gas. In hearings of the House Natural Resources Committee considering the bill that would become Act 74, for example, representatives asked numerous questions about the relative safety of spent nuclear fuel storage methods Entergy was considering and heard testimony questioning the competence of the NRC to evaluate safety. One witness described the legislative “problem that we’re dealing with here [is] that a lot of the concerns that citizens have are concerns that you can’t address directly the way they want them to be addressed.” Several representatives asked questions about the dangers posed by an accidental release of radioactive waste. One member of the committee admonished another for referring to radiological safety, stating, “but we can’t say that, anything about safety. It can only be about economics and aesthetics.” A member of the Department expressed the same sentiment and advised a representative to frame his questions about the value of maintaining Vermont Yankee as an “aesthetic issue,” rather than one concerned with safety. In a concluding committee meet
The record also contains several statements by state legislators about the value of assigning their concerns regarding radiological safety to the 2005 MOU, which required Entergy to take several actions specifically addressing radiological safety. In re Entergy Nuclear Vt. Yankee, LLC,
In conducting this analysis of Acts 74 and 160 and their adoption, we are mindful of the traditional “presumption against preemption with respect to areas where states have historically exercised their police powers.” N.Y. SMSA Ltd. P’ship,
We have considered the legislative history behind Acts 74 and 160 — undertaken in large part through the district court’s exhaustive examination of audiotape recordings — and found that it contains innumerable expressions of concern for radiological safety from Vermont legislators and regu
We do not question the legitimacy or sincerity of those Vermont residents and officials who have safety-related concerns about Vermont Yankee, but Vermont has other avenues available to air its concerns. For example, the'Atomic Energy Act mandates that the NRC hold hearings — if requested by “any person whose interest may be affected” — when taking certain actions relating to the licensing of a nuclear
As the Supreme Court has held, the one avenue Vermont may not pursue is to pass a “state moratorium” on nuclear energy “grounded in safety concerns.” Pacific Gas,
B. Dormant Commerce Clause Claim
Entergy argues that Vermont’s efforts to condition the approval of a new CPG for Vermont Yankee on the execution of a new PPA (to replace the 2001 PPA) represents a demand “that Entergy provide more favorable rates to in-state than out-of-state retail utilities” in contravention of the dormant Commerce Clause. The district court agreed, after examining materials submitted by the Department to the Board; statements by state legislators and regulators during committee meetings, and floor debates in the Vermont Legislature advocating for a new favorable PPA. Entergy Nuclear,
“Constitutional ripeness is a doctrine that, like standing, is a limitation on the power of the judiciary. It prevents courts from declaring the meaning of the law in a vacuum and from constructing generalized legal rules unless the resolution of an actual dispute requires it.” N.Y. Civil Liberties Union v. Grandeau,
The dormant Commerce Clause, a doctrine inferred from the Commerce Clause of the United States Constitution, see U.S. Const, art. I, § 8 cl. 3, is a “restriction on permissible state regulation.” Hughes v. Oklahoma,
The district court largely based its conclusion on the Supreme Court’s decision in New England Power, which considered an order of a New Hampshire regulatory commission prohibiting an in-state power plant from exporting some of its output to out-of-state retail utilities in an effort to reduce prices for in-state consumers.
The order at issue in New England Power did not violate the dormant Commerce Clause simply because it conferred an economic benefit on New Hampshire residents, however. Rather, by preventing a power plant from exporting its output to other states, the effect of the order was to “overtly block[ ] the flow of interstate commerce at a State’s borders.” City of Phila. v. New Jersey,
At present, in the absence of a completed PPA and without evidence regarding its effect on out-of-state power consumers, we cannot determine whether the PPA Vermont has sought will have a direct impact on commerce in other states. We also do not have a factual record concerning incidental effects of such an agreement on interstate commerce and the commensurate benefits of the agreement within Vermont. Entergy’s claim cannot be characterized as “purely legal” in that it “may be decided without further factual development.” Gary D. Peake Excavating Inc. v. Town Bd. of Town of Hancock,
Of course, we do not suggest that any PPA providing favorable pricing for Vermont residents would pass muster under the dormant Commerce Clause. A regulation that “evinces” discriminatory purpose against interstate commerce, “or unambiguously discriminates in its effect ... almost always is ‘invalid per se.’ ” Brown & Williamson Tobacco Corp. v. Pataki
However, no agreement is before us. Accordingly, the analysis required under the dormant Commerce Clause may not be performed, and so Entergy’s claim is unripe at this time. Cf. Middle S. Energy, Inc. v. City of New Orleans,
C. Federal Power Act Claim
Under the Federal Power Act, FERC has jurisdiction over “the transmission of electric energy in interstate commerce and ... the sale of electric energy at wholesale in interstate commerce.” 16 U.S.C. § 824(b)(1). FERC’s authority includes “exclusive jurisdiction over the rates to be charged [a utility’s] interstate wholesale customers.” Nantahala Power & Light Co. v. Thornburg,
In recent years, FERC has “encouraged transmission providers to establish ‘Regional Transmission Organizations’ — entities to which transmission providers would transfer operational control of their facilities for the purpose of efficient coordination.” Morgan Stanley Capital Grp.,
Entergy argues that Vermont’s efforts to obtain a favorable PPA violate the market-based tariff approved by FERC for the New England regional wholesale market. According to Entergy, capping the prices it can charge Vermont residents would interfere with the rates FERC has approved for the market, and so the PPA is “preempted” under the filed-rate doctrine. However, the market-based tariff approved by FERC for Vermont Yankee states only that Entergy “may sell electric energy and capacity from time to time at rates, terms and conditions established by agreement with the purchaser____All such transactions shall be voluntary.” The market-based tariffs only other guidance on rates is that “[a]ll sales shall be made at rates established by agreement between the purchaser and Entergy Nuclear VY.”
We agree with the district court’s determination that this claim is not ripe. In addition to the fact that a new favorable PPA has not yet been executed, Entergy has not sought a determination from FERC about whether the terms of such a PPA would violate the market-based tariff.
CONCLUSION
For the reasons stated above, we AFFIRM the district court’s grant of a declaratory judgment that Act 74 and Act 160 are facially preempted by the Atomic Energy Act. We REVERSE the district court’s determination that Vermont’s efforts to condition a new Certifícate of Public Good for Vermont Yankee on the exe
Notes
. Entergy Nuclear Vermont Yankee, LLC, and Entergy Nuclear Operations, Inc., are co-holders of the Nuclear Regulatory Commission Facility Operating License No. DPR-28 and Renewed Facility Operating License No. DPR28. They are also indirect subsidiaries of parent Entergy Corporation, a Delaware cor
. Entergy does not appeal the district court’s determination as to Act 189.
. The Board is a three-member quasi-judicial state agency that regulates a variety of public utilities in Vermont, including power facilities. It supervises the utilities’ rates, service quality, and overall financial management. See Vt. Stat. Ann. tit. 30, §§ 9, 203.
.The criteria the Board must consider in deciding whether to issue a CPG relate to such issues as power generation stability, economic impact on the State, aesthetic and environmental issues, and likelihood of compliance with federal regulations. See Vt. Stat. Ann. tit. 30, § 248(b).
. The Department oversees laws relating to public service corporations and represents the State of Vermont in the procurement of energy in hearings before the Board in an advocacy capacity. See Vt. Stat. Ann. tit. 30, §§ 1, 2, 203.
. Although VYNPC included retail utilities from outside Vermont, by 2009, Central Vermont Public Service and Green Mountain Power had accumulated a combined stake of 92.5% of VYNPC.
. Spent fuel rods are typically stored in deep pools of treated water at the reactor site for a period of at least five years. Once the spent fuel rods’ temperature and radiation emissions have sufficiently diminished, they can be moved into dry casks — consisting of sealed metal cylinders on a concrete pad — for long-term storage. Dry casks are monitored by the NRC for public health and safety. See 10 C.F.R. § 961.11. at App. E(B)(3); U.S. Nuclear Regulatory Comm'n, Backgrounder on Dry Cask Storage of Spent Nuclear Fuel (Feb. 28, 2013), available at http://www.nrc.gov/ reading-rm/doc-collections/fact-sheets/dry-cask-storage.html.
. Section 6523 was subsequently recodified to title 30 of the Vermont Statutes relating to the powers of the Board. See Vt. Stat. Ann. tit. 30, § 8015.
. Entergy is not challenging section 6523 in the instant appeal.
.In its subsequent Order, the Board confirmed that Entergy's total obligation under the 2005 MOU to make payments into the Fund would be $15,625,000 from 2005 to 2012, made in quarterly payments of $625,000. In re Entergy Nuclear Vt. Yankee, LLC,
. The 2005 MOU was not included in the record on appeal, but was introduced below as Plaintiffs’ Trial Exhibit 465 (Document 46-19).
. The Board imposed the flood analysis requirement in part in response to the U.S. Department of Energy’s "failure to remove the spent nuclear fuel [generated by Vermont Yankee] in a timely fashion.” Entergy Nuclear Vt. Yankee,
.This, in turn, represents fifty-five percent of Vermont Yankee’s total power output. The remainder is sold on the wholesale market to retail utilities in other states. See In re Proposed Sale of Vt. Yankee Nuclear Power Station,
. The preamble to Act 160 was not published in the Vermont Statutes, but is contained in West's historical notes to Chapter 157 of title 10, Vermont Statutes Annotated (West 2011).
. Though the original bill called for Act 189 to be codified as an addition to section 254 of title 30 of the Vermont Statutes, the final version of Act 189 was not codified. Entergy Nuclear Vt. Yankee, LLC v. Shumlin,
. The Court also considered a challenge to section 25524.1(b), which required the State Energy Commission to determine on a case-by-case basis whether there would be "adequate capacity” for the short-term storage of spent nuclear fuel before granting certification for the construction of a new plant. Pacific Gas,
. Indeed, the power market in California was not opened to competition until the late 1990s. See David B. Spence, Can Law Manage Competitive Energy Markets?, 93 Cornell L.Rev. 765, 779-81 (2008).
. The orders may be read in full at Promoting Wholesale Competition Through Open Access Non-Discriminatory Transmission Services by Public Utilities, Order 888, 61 Fed. Reg. 21,540, 21,541-43 (FERC May 10, 1996) (codified at 18 C.F.R. pt. 37); and at Open Access Same-Time Information System (Formerly Real-Time Information Networks) and Standards of Conduct, Order 889, 61 Fed. Reg. 21,737, 21,740-41 (FERC Apr. 24, 1996) (codified at 18 C.F.R. pt. 37).
. See U.S. Energy Info. Admin., The Changing Structure of the Electric Power Industry 2000: An Update, at 74-77 (2000), available at http://www.eia.gov/cneaf/electricity/chg_ stru_update/update2000.pdf.
. See, e.g., New York v. United States,
. As the party asserting preemption, Entergy carries the burden of proof. See Silkwood,
. See also Loyal Tire & Auto Ctr., Inc. v. Town of Woodbury,
. Moreover, the statute provides that "public health issues,” including those related to storage of nuclear waste, are to be considered in determining whether to permit the continued operation of Vermont Yankee. As this phrase is not defined in the statute, we must look to the legislative intent to determine its meaning. See Universal Church v. Geltzer,
. Indeed, the Board recognized alternative sources of energy in its Order approving the sale of Vermont Yankee to Entergy in 2002, but noted some of the related problems:
We cannot assume, as urged by several members of the public, that the power from Vermont Yankee can be quickly replaced by renewable resources. Vermont already gets a higher percentage of its power from renewable sources (mostly large hydro-power dams) than many other states. With the exception of large hydro dams, renewable energy resources tend to be relatively small sources of generation, particularly in relation to Vermont Yankee. Thus, instead of renewable sources, Vermont utilities would need to rely on fossil fuel generating stations to replace much of the power now provided by Vermont Yankee. This option would have the very serious disadvantage of significantly increasing the emission of air contaminants and greenhouse gases.
In re Vt. Yankee Nuclear Power Corp.,
. We note that in its 2006 Order granting a new CPG to Vermont Yankee to store additional spent nuclear fuel on site, the Board made the following argument regarding the effect of the plaint shutting down:
In the absence of the dry fuel storage project, a substantial likelihood exists that Vermont Yankee would shut down by 2008 due to the inability to store the spent nuclear fuel it generates. [Vermont retail utilities] could replace the power with other purchases, but such replacement power would probably cost more (perhaps significantly more) than the Vermont Yankee power.
In re Entergy Nuclear Vt. Yankee, LLC,
. In conducting this analysis, we do not suggest that Vermont Yankee's status as a merchant generator precludes every possible economic argument Vermont could offer as a basis for regulating the plant. See Pacific Gas,
. We acknowledge that Pacific Gas does not explain with precision the role legislative history plays in the analysis of an Atomic Energy Act preemption claim. See English,
. See also Belanger v. Salvation Army, 556 F.3d 1153, 1155 (11th Cir.2009); Nike, Inc. v. McCarthy,
. Our analysis focuses on whether radiological safety was the primary purpose under-girding the passage of Act 160, not simply whether safety was only one of several considerations. See Pacific Gas,
. We reach this conclusion without needing to consider the legislative history behind S.289, which — had it passed — would have permitted Vermont Yankee to operate for twenty years after March 21, 2012. We note that although S.289 arguably shares “a common heritage” with Act 160, it is "not before the Court, and indeed, ... was not passed.”
. As previously discussed, sections 6522(b)(4) and 6523(a)(1)(A) sweep all MOUs executed before July 1, 2005, into the ambit of Act 74, including the MOU executed on June 21, 2005.
. Our concerns regarding the intent behind Act 74 are consistent with a recent opinion of the Federal Circuit, which examined the provision in the 2005 MOU requiring that Entergy perform an analysis of the stability of the river bank near a proposed spent nuclear storage facility "due to the perceived inadequacies of a previously performed NRC-required flood analysis.” Vt. Yankee Nuclear Power Corp. v. Entergy Nuclear Vt. Yankee, LLC,
.We cite this provision of the 2005 MOU not for the purpose of ruling on whether a party may validly waive the right to bring a preemption challenge, but only to demonstrate the impermissible intent on the part of
. We have limited our analysis to Acts 74 and 160 in light of the district court’s determination that Entergy's challenge to Act 189 is moot, a ruling that neither party challenges. Moreover, we recognize that the legislative history of Act 189, which was passed after Act 160, is an imperfect indicator of the legislative intent behind Acte 74 and 160. See Pension Benefit Guar. Corp.,
. We agree with the district court’s determination that Entergy's initial challenge to Act 189 is moot, as Entergy has already completed the studies of Vermont Yankee’s safety systems required by the statute, and the results have been reported to the Vermont Legislature. In addition, because we hold that Act 160 is preempted by the Atomic Energy Act, the Board will no longer be able to consider the studies mandated by Act 189. See Entergy Nuclear,
. Agreements of this nature would be "scrutinized strictly, i.e., 'the burden falls on the State to justify [the discrimination] both in terms of the local benefits flowing from the statute and the unavailability of nondiscriminatory alternatives adequate to preserve the local interests at stake.' " Brown & Williamson,
. A statute or regulation would discriminate against commerce itself when the statute
(i) shifts the costs of regulation onto other states, permitting in-state lawmakers to avoid the costs of their political decisions,
(ii) has the practical effect of requiring out-of-state commerce to be conducted at the regulating state's direction, or (iii) alters the interstate flow of the goods in question, as distinct from the impact on companies trading in those goods.
Am. Booksellers Found. v. Dean,
. Because we vacate the district court’s grant of an injunction regarding Entergy's dormant Commerce Clause claim, we need not address the question of whether Entergy's suit sought to enjoin the proper officials under Ex Parte Young,
. Entergy also has not offered an explanation for why it did not seek review of the 2001 PPA before FERC, and the record does not reveal any prior attempts to do so. Nonetheless, FERC's "passive permission for a rate to go into effect does not constitute a finding that the rate is just and reasonable,” as required by the Federal Power Act pursuant to 16 U.S.C. § 824d(a). See Morgan Stanley Capital Grp.,
Concurrence Opinion
concurring:
I concur, reluctantly, in the majority’s detailed and carefully reasoned opinion striking down Vermont Acts 74 and 160. My reluctance stems not from any flaw in the majority’s analysis, but rather from my concern that Congress, in enacting the Atomic Energy Act (“AEA”), did not intend the result we reach. Rather, we are led to our conclusion principally by an expansive gloss on the preemptive scope of the AEA first set forth in Pacific Gas & Electric Co. v. State Energy Resources Conservation & Development Commission,
As Judge Droney persuasively demonstrates, the State legislative record before us is “replete with references to radiological safety.” Maj. Op. at 422. No reader of this record can fairly claim that the statutes at issue were not “grounded in safety concerns.” Pacific Gas,
And yet, in Pacific Gas, the Court upheld a State moratorium on the construction of nuclear power plants, declining to look too closely at the State’s motivation. Cognizant of that setting, we might feel free to discount the “grounded in safety concerns” phrase as merely a stray comment. But it undeniably captures the full thrust of the Court’s opinion: in Pacific Gas, the Court stressed that “[a] state prohibition on nuclear construction for safety reasons would ... he in the teeth of the Atomic Energy Act’s objective to insure that nuclear technology be safe enough for widespread development and use — and would be preempted for that reason.” Id. at 213,
I write separately to emphasize that it is principally the judicial phrase “grounded in safety concerns,” and not the Court’s holdings or the text of the Atomic Energy Act, that compels us to strike down Vermont’s statutes. Particularly in the context of a Congressional enactment that contains protection for State and local interests, 42 U.S.C. § 2018, and indeed invites State-Federal cooperation, id. § 2021, it seems anomalous to conclude that nothing more than the Vermont legislature’s expression of concern about nuclear safety is needed to invalidate these largely procedural statutes.
As the Court recently observed, “Federalism, central to the constitutional design, adopts the principle that both the National and State Governments have elements of sovereignty the other is bound to respect.” Arizona v. United States, — U.S. -,
In thinking about preemption in the AEA context, it is important to distinguish between two categories of State laws. The first consists of State laws that impose concrete safety requirements other than those imposed by the Nuclear Regulatory Commission (“NRC”). A State requirement that nuclear power plants use a particular type of backup generator or a particular method of protecting against leaks falls within this category. The second category consists of State laws that do not in their language or operation intrude upon the field of radiological safety. A legislative decision to permit plant construction or to deny continued operation of a plant at the expiration of a license period, for example, would fall into this category.
I have no doubt that Congress intended to preempt State laws that fall within the first category. See Pacific Gas,
Acts 74 and 160 fall within the second category of State laws. They alter the State’s decision-making process with respect to the plant. To be sure, in requiring that Vermont Yankee obtain State legislative approval before it may continue operations, they place the State legislature in a position to foil judicial review of its decision. Maj. Op. at 427. They may thereby enable the State to reject the plant’s bid for a new operating license based on an amalgam of concerns, including general safety concerns, or general safety concerns alone. They do not, however, impose any safety requirements at all on the plant. To the extent Act 74 incorporates a memorandum of understanding that imposes safety-related requirements on Vermont Yankee relating to cask storage, it is clearly preempted. The presence of these few requirements, however, serves to highlight the limited scope of the remaining provisions of the Acts.
The AEA does not commit every decision related to the generation of nuclear power to the federal government; rather, it provides for “the dual regulation of nuclear-powered electricity.” Pacific Gas,
This conclusion is buttressed by what Congress omitted from the AEA. As mentioned, the AEA does not, either in its text or as the Supreme Court has construed it, force a State to approve the construction of a nuclear power plant. Pacific Gas,
The parties have not directed our attention to any case in which the Supreme Court has struck down a State statute or tort judgment on AEA preemption. In Pacific Gas,
Further, as a practical matter, it seems impossible to divorce safety concerns from any State legislature’s consideration of whether to allow, or continue to allow, the generation of nuclear power within its borders. Even legislation that is ostensibly oriented solely to economic concerns — and therefore within the AEA’s savings clause as interpreted in Pacific Gas — can be expected to have some bearing on plant safety. But this should not doom the statute. As Justice Blackmun wrote in his Pacific Gas concurrence, “There is no evidence that Congress had a ‘clear and manifest purpose’ to force States to be blind to whatever special dangers are posed by nuclear plants.”
Placing decisive emphasis on motivation to the exclusion of impact, as we do here, also creates an irresistible incentive for States to do their best to mask their concerns about safety. Further, the prominence of safety concerns in the record before us regrettably overshadows the legislature’s attempt to address economic issues, ones that the AEA’s savings clause protects. The original rationale supporting the savings clause’s protection for State economic legislation, see Pacific Gas,
Thus, like the construction moratorium upheld in Pacific Gas, the statutes before us “do[ ] not seek to regulate the construction or operation of a nuclear power plant.”
But there is no avoiding the Supreme Court’s teachings in Pacific Gas. The statutes before us are preempted, and I therefore must concur.
