Shieldalloy Metallurgical Corp. v. Nuclear Regulatory CommissionShieldalloy Metallurgical Corp. v. Nuclear Regulatory Commission
Case Information
*1 United States Court of Appeals
FOR THE DISTRICT OF COLUMBIA CIRCUIT
Argued September 12, 2014 Decided October 14, 2014
No. 13-1259
S HIELDALLOY M ETALLURGICAL C ORPORATION , P ETITIONER v.
N UCLEAR R EGULATORY C OMMISSION AND U NITED S TATES OF
A MERICA , R ESPONDENTS S TATE OF N EW J ERSEY , I NTERVENOR On Petition for Review of an Order of the U.S. Nuclear Regulatory Commission
Jay E. Silberg argued the cause for petitioner. With him on the briefs were Matias F. Travieso-Diaz , Stephen L. Markus , and Alison M. Crane .
Andrew P. Averbach , Solicitor, U.S. Nuclear Regulatory Commission, argued the cause for respondents. With him on the brief were Robert G. Dreher , Acting Assistant Attorney General, U.S. Department of Justice, Lane N. McFadden , *2 Attorney, and Grace H. Kim , Senior Attorney, U.S. Nuclear Regulatory Commission.
Andrew D. Reese argued the cause and filed the brief for intervenor State of New Jersey.
Before: G ARLAND , Chief Judge , S RINIVASAN , Circuit Judge , and S ENTELLE , Senior Circuit Judge .
Opinion for the Court filed by Senior Circuit Judge S ENTELLE .
S ENTELLE ,
Senior Circuit Judge
:
Shieldalloy
Metallurgical Corporation petitions for review of a Nuclear
Regulatory Commission (“NRC” or “Commission”) order
reinstating the transfer of regulatory authority to the State of
New Jersey under the Atomic Energy Act,
I.
Shieldalloy manufactured metal alloys in Newfield, New Jersey for approximately fifty years. While processing the raw materials and ores necessary to produce the metal alloys, Shieldalloy generated radioactive byproducts. Shieldalloy had an NRC license to store these byproducts on site. When *3 it ceased operations at the Newfield site in 1998, Shieldalloy had accumulated approximately 65,800 cubic meters of radioactive materials containing uranium (U-238) and thorium (Th-232). Intervenor New Jersey reminds us that the average household refrigerator has approximately one cubic meter of storage. The half-life for uranium and thorium exceeds four billion years, and Shieldalloy stores these byproducts in uncovered waste piles on the site, which is located near residences and businesses.
The present petition is the third to reach this Court in a
longstanding dispute over
the rules governing what
Shieldalloy must do with the radioactive waste at its Newfield
site. Around the time that Shieldalloy first sought to
decommission the site, the NRC developed and published
rules for decommissioning licensed facilities, referred to as
the license termination rule or “LTR.”
See
Under limited circumstances, the LTR provisions also
allow licensees to dispose of radioactive waste on site with
restricted future use. 62 Fed. Reg. at 39,069;
see also
Shieldalloy has consistently sought to dispose of its radioactive waste on site through restricted future use. See, e.g. , Decommissioning of Shieldalloy Metallurgical Corporation’s Facility in Newfield, NJ, 58 Fed. Reg. 62,387, 62,388-89 (Nov. 26, 1993). Between 2002 and 2009, Shieldalloy submitted four versions of its on-site decommissioning plan, but the NRC never accepted any of the plans. The NRC Commissioner urged Shieldalloy to explore options other than on-site decommissioning.
Independent of the NRC’s discussions with Shieldalloy,
the governor of New Jersey requested that the Commission
transfer its nuclear regulatory authority to the State of New
Jersey as authorized by the Atomic Energy Act.
See
Notice of
Proposed Agreement, 74 Fed. Reg. 25,283, 25,283-87 (May
27, 2009). Under the statute, the NRC “shall enter into an
agreement” to transfer its authority to a state if it finds the
state’s regulatory regime is “adequate to protect the public
*5
health and safety” and “compatible with the Commission’s
program.”
Fearing that it would have to abandon its restricted
release decommissioning plan and be forced to adopt a more
expensive unrestricted release plan, Shieldalloy petitioned this
Court for review of the NRC’s transfer of authority.
Shieldalloy Metallurgical Corp. v. NRC
,
For a second time, Shieldalloy petitioned this Court for
review, arguing that the NRC followed neither its own
regulations nor the requirements of the Atomic Energy Act.
Shieldalloy II
,
On remand, the NRC issued CLI-13-06, the Order now
under review. The Commission reinstated the transfer of
authority
to New Jersey and “provide[d] additional
explanation to clarify that
Shieldalloy again petitions this Court to vacate the NRC’s Order transferring regulatory authority to New Jersey.
II.
We review NRC final orders under the arbitrary and
capricious standard of the Administrative Procedure Act,
An agency’s interpretation of its own regulations is entitled to “substantial deference” and is given “controlling weight unless it is plainly erroneous or inconsistent with the regulation.” Thomas Jefferson Univ. v. Shalala , 512 U.S. 504, 512 (1994). Deference is appropriate even if the agency’s interpretation first appears during litigation, see Auer v. Robbins , 519 U.S. 452, 462-63 (1997), unless the interpretation conflicts with prior interpretations or amounts to “nothing more than a convenient litigating position,” Christopher v. SmithKline Beecham Corp. , 132 S. Ct. 2156, 2166 (2012) (internal quotation marks and citation omitted).
Shieldalloy argues that the NRC’s transfer of regulatory
authority to New Jersey was arbitrary and capricious because
the NRC did not rationally explain how New Jersey’s
regulatory regime is “adequate to protect the public health and
safety” or “compatible with the Commission’s program”
under
A.
Shieldalloy contends that New Jersey’s regulations are inadequate to protect public health and safety because New Jersey’s program does not provide restricted use options that will best reduce the public’s exposure to doses of radiation. NRC regulations provide licensees like Shieldalloy a restricted use option as a “reasonable means for terminating licenses at certain facilities” so long as the decommissioning is “properly designed” and there are “proper controls” in place. 62 Fed. Reg. at 39,069. Shieldalloy argues that New Jersey’s program, however, is not as safe as the NRC’s regime because New Jersey’s regulations do not incorporate the ALARA principle and essentially bar a licensee from decommissioning a site with restricted future use. Shieldalloy complains that it is virtually impossible for it to decommission the Newfield facility for restricted release under New Jersey’s regulations. Pet. Br. 64. To support its argument, Shieldalloy points to NJRAD Form-314, the disposition certificate that licensees must file to decommission a site, because it only allows the licensee to request “release for unrestricted use” and not restricted use. See Pet. Reply Br. 26 (discussing the October 3, 2012 version of the form).
This Court previously rejected Shieldalloy’s argument
“that the New Jersey rules were more stringent but less safe”
than the NRC standards.
Shieldalloy II
, 707 F.3d at 375.
Addressing the statutory requirement that a state program
must be adequate to protect the public health and safety, we
concluded
that
the NRC,
“on
its
second
attempt, . . . adequately addressed Shieldalloy’s claims arising
out of . . . the parties’ conflicting interpretations of
Contrary to Shieldalloy’s argument, New Jersey’s
regulatory regime applies
the ALARA principle
to
*9
decommissioning
activity because
state
regulations
incorporate by reference several provisions of 10 C.F.R. Part
20, including § 20.1101(b) (requiring licensees to use
protection principles to achieve doses to the public that are
ALARA for all licensed activity).
New Jersey’s regulations also permit license termination
with restricted future use. New Jersey’s regulations include
options for licensees to decommission a site with “limited
restricted use” as well as “restricted use.”
See
Like the NRC’s regulations, New Jersey’s regulations
also incorporate a preference for the removal of radioactive
materials to meet unrestricted conditions. Most importantly,
New Jersey’s regulations express a preference for unrestricted
release that is more protective of the public health than the
NRC’s regulations. To qualify for “limited restricted use” or
“restricted use” under
Contrary to Shieldalloy’s arguments, the NRC’s transfer
of authority is not arbitrary and capricious simply because
New Jersey’s regulations impose more stringent requirements.
Indeed, the NRC has always contemplated transferring
authority to states under the agreement state program so long
as “[t]he overall level of protection of public health and safety
provided by a State program [is] equivalent to,
or greater
than
, the level provided by the NRC program.” Statement of
Principles and Policy for the Agreement State Program, 62
Fed. Reg. 46,517, 46,524 (Sept. 3, 1997) (emphasis added);
id.
at 46,520 (“[T]he more stringent requirements do not
preclude or effectively preclude a practice in the national
interest without an adequate public health and safety or
environmental basis related to radiation protection.”);
see also Shieldalloy II
,
B.
Under the second statutory requirement of
Shieldalloy points to the text of
We reject Shieldalloy’s arguments and conclude that the
NRC adequately explained, based on “the authorities on
which it purports to draw,” how New Jersey’s regulations are
compatible with its own regulations.
Shieldalloy II
, 707 F.3d
at 375. Shieldalloy’s counsel acknowledged at oral argument
that New Jersey’s program is compatible with NRC
regulations if we accept NRC’s reading of
1.
Contrary
to Shieldalloy’s argument,
The NRC explained how its reading gives full effect to
the language of the regulation, which focuses solely on
“further reductions in residual radioactivity” necessary to
accomplish unrestricted release under the provisions of
This Court previously recognized that “[t]he language of
Under
this broader conception of ALARA as
encompassing cost-benefit analysis, the NRC rationally
explained that the ALARA analysis from
The second sentence of
2.
The NRC’s interpretation of
Shieldalloy mischaracterizes the NRC’s position as a
convenient, post hoc litigating position that conflicts with the
NRC’s prior interpretations of
Similarly, the NRC explained that its July 5, 2007 letter to Shieldalloy does not call for a comparative dose-analysis. The letter simply suggested that Shieldalloy may have overestimated the work necessary to achieve unrestricted release, which could erroneously bias the ALARA analysis in favor of restricted release. at 22-23. We agree with the NRC.
* * *
Because New Jersey’s regulations are compatible with
the NRC’s regulations and its reading of
III.
For the reasons stated, we deny Shieldalloy’s petition for review of the NRC’s order reinstating the transfer of its regulatory authority to the State of New Jersey.
So ordered.