Petition for Writ of Certiorari — Holtec International, Petitioner v. Nuclear Regulatory Commission, et al.

Supreme Court briefJun 25, 2024

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No. 23In the

Supreme Court of the United States

HOLTEC INTERNATIONAL,

Petitioner,

v.

UNITED STATES NUCLEAR REGULATORY

COMMISSION, UNITED STATES OF AMERICA,

FASKEN LAND AND MINERALS, LIMITED, AND

PERMIAN BASIN LAND AND ROYALTY OWNERS,

Respondents.

On Petition for a Writ of Certiorari to the

United States Court of A ppeals for the Fifth Circuit

PETITION FOR A WRIT OF CERTIORARI

Jay E. Silberg

Counsel of Record

A nne R. Leidich

Pillsbury Winthrop Shaw

Pittman LLP

1200 Seventeenth St., NW

Washington, DC 20036

(202) 663-8063

jay.silberg@pillsburylaw.com

June 2024

330600

Counsel for Petitioner

A

(800) 274-3321 • (800) 359-6859

i

QUESTIONS PRESENTED

After more than six years of extensive licensing

proceedings, the United States Nuclear Regulatory

Commission (NRC) issued petitioner a license to

store spent nuclear fuel at a proposed facility in New

Mexico. Several opposing parties in the NRC

proceeding sought judicial review of petitioner’s

license in the normal course: before the D.C. Circuit

pursuant to the Administrative Order Reviews Act

(commonly known as the Hobbs Act), 28 U.S.C. §

2342. Years later, one of those parties initiated a

second attack on petitioner’s license in the Fifth

Circuit, relying on the Fifth Circuit’s unique ultra

vires exception to the Hobbs Act to challenge the

NRC’s issuance of petitioner’s license as beyond the

agency’s authority. The Fifth Circuit heard the case,

deepening a split with the Second, Seventh, Tenth,

and Eleventh Circuits which have rejected such an

exception to the Hobbs Act.

The Fifth Circuit also decided that the NRC does

not have authority under the Atomic Energy Act, 42

U.S.C. § 2011 et seq., and Nuclear Waste Policy Act,

42 U.S.C. § 10131(a) et seq., to issue licenses for

spent fuel storage and vacated petitioner’s NRC

license. In issuing this decision, the Fifth Circuit

created yet another split from decades-long

precedent in the D.C. Circuit and the Tenth Circuit,

where petitioner’s facility would be located.

The questions presented are:

1. Whether there is an exception to the partyaggrieved requirement of the Hobbs Act for

an ultra vires challenge to an agency

action.

ii

2. Whether the NRC has the statutory

authority to issue licenses for spent nuclear

fuel storage facilities.

iii

PARTIES TO THE PROCEEDING

Petitioner, intervenor-appellee below, is Holtec

International.

The United States Nuclear Regulatory

Commission and United States of America were also

appellees below.

Respondents, appellants below, are Fasken Land

and Minerals, Limited, and Permian Basin Land and

Royalty Owners.

iv

CORPORATE DISCLOSURE STATEMENT

Holtec International has no parent corporation;

no shareholder owns 10% or more of its stock.

v

STATEMENT OF RELATED PROCEEDINGS

The license that is at issue in this case has been

the subject of the following proceedings:

-

Fasken v. NRC, No. 23-60377 (5th Cir.

Mar. 27, 2024).

-

Beyond Nuclear, Inc. v. NRC, No. 20-1187,

20-1225, 21-1104, 21-1147 (D.C. Cir.) (oral

argument held Mar. 5, 2024).

-

State ex rel. Balderas v. NRC, No. CIV 210284 (D.N.M.) (preliminary order issued

Mar. 10, 2022).

The same type of NRC-issued license for a similar

proposed project by another party has also been the

subject of proceedings in the Fifth, Tenth, and D.C.

Circuits:

-

Texas v. NRC, No. 21-60743 (5th Cir. Aug.

25, 2023) (reh’g en banc denied Mar 14,

2024) (petition for cert. filed, ___ U.S.L.W.

___ (U.S. June 12, 2024) (No. 23-1300)).

-

Don’t Waste Mich. v. NRC, 21-1048, 211055, 21-1056, 21-1179, 21-1227, 21-1229,

21-1230, 21-1231 (D.C. Cir. Jan. 25, 2023)

-

State ex rel. Balderas v. NRC, No. 21-9593

(10th Cir. Feb. 10, 2023).

vi

TABLE OF CONTENTS

QUESTIONS PRESENTED ....................................... i

PARTIES TO THE PROCEEDING .......................... iii

CORPORATE DISCLOSURE STATEMENT .......... iv

STATEMENT OF RELATED PROCEEDINGS........ v

TABLE OF CONTENTS ........................................... vi

TABLE OF APPENDICES ..................................... viii

TABLE OF AUTHORITIES ...................................... ix

PETITION FOR WRIT OF CERTIORARI ................ 1

OPINIONS BELOW ................................................... 3

JURISDICTION ......................................................... 3

STATUTORY PROVISIONS INVOLVED ................ 3

STATEMENT ............................................................. 3

A. Legal Framework ............................................ 3

1. The Hobbs Act ............................................ 3

2. The Nuclear Legal Framework .................. 5

B. Factual and Procedural Background .............. 9

1. The Holtec NRC Proceeding ...................... 9

2. The Holtec D.C. Circuit Proceeding ........ 10

3. The Holtec Fifth Circuit Proceeding........ 11

REASONS FOR GRANTING THE PETITION ...... 13

I. The Fifth Circuit Erred By Ignoring The

Plain Text Of The Hobbs Act And The

Faithful Interpretations Of Four Other

Circuits. ............................................................... 14

vii

A. There Is No Ultra Vires Exception To The

Hobbs Act. ...................................................... 14

B. The Ultra Vires Exception Is An End Run

Around The Requirements Of The Hobbs

Act. ................................................................. 17

II. The Fifth Circuit’s Decision To Limit The

NRC’s Statutory Authority Is Plainly

Inaccurate And Contrary To Settled

Precedent. ............................................................ 19

A. The Fifth Circuit’s Decision Creates A Circuit

Split. ............................................................... 19

B. The Fifth Circuit’s Application Of The Atomic

Energy Act Is Egregiously Wrong. ................ 21

C. The Fifth Circuit Further Erred In Finding

That The Nuclear Waste Policy Act Is

Relevant To The NRC’s Authority. ............... 25

D. The Fifth Circuit’s Reasoning Confounds The

Regulation Of Nuclear Materials. ................. 26

CONCLUSION ......................................................... 28

viii

TABLE OF APPENDICES

APPENDIX A — OPINION OF THE

UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT, FILED

MARCH 27, 2024 .................................................. 1a

APPENDIX B — OPINION OF THE

UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT, FILED

AUGUST 25, 2023 ................................................ 4a

APPENDIX C — DENIAL OF REHEARING

OF THE UNITED STATES COURT OF

APPEALS FOR THE FIFTH CIRCUIT,

FILED MARCH 14, 2024 ................................... 36a

APPENDIX D — MEMORANDUM AND

ORDER OF THE NUCLEAR REGULATORY

COMMISSION, FILED APRIL 23, 2020 ........... 58a

APPENDIX E — MEMORANDUM AND

ORDER OF THE NUCLEAR REGULATORY

COMMISSION, FILED MAY 7, 2019 .............. 136a

APPENDIX F — STATUTORY PROVISIONS

INVOLVED ....................................................... 337a

ix

TABLE OF AUTHORITIES

CASES

Am. Trucking Ass’ns, Inc. v. ICC,

673 F.2d 82 (5th Cir. 1982)..................................... 4

Baros v. Tex. Mexican Ry. Co.,

400 F.3d 228 (5th Cir. 2005)................................... 5

Beyond Nuclear v. NRC,

No. 20-1187 (D.C. Cir. June 20, 2020),

ECF No. 1848608 ............................................ 10, 11

Bullcreek v. NRC,

359 F.3d 536 (D.C. Cir. 2004) ................... 19, 20, 26

Carpenter v. DOT,

13 F.3d 313 (9th Cir. 1994)................................... 18

Don’t Waste Mich. v. NRC,

(No. 20-1225), ECF No. 1895402 .......................... 10

Don’t Waste Mich. v. NRC,

No. 21-1048, 2023 WL 395030

(D.C. Cir. Jan. 25, 2023) ....................................... 20

Erie-Niagara Rail Steering Comm. v.

Surface Transp. Bd.,

167 F.3d 111 (2d Cir. 1999) .............................. 4, 15

Fasken Land & Minerals, Ltd. v. NRC,

(No. 21-1147) ......................................................... 10

In re Chicago, Milwaukee,

St. Paul & Pac. R.R. Co.,

799 F.2d 317 (7th Cir. 1986)............................. 4, 15

In re Holtec International,

91 N.R.C. 167 (2020) ............................................... 9

In re Holtec International,

93 N.R.C. 215 (2021) ............................................. 10

x

Leedom v. Kyne,

358 U.S. 184 (1958) ............................................... 17

Merch. Fast Motor Lines, Inc. v. ICC,

5 F.3d 911 (5th Cir. 1993)....................................... 5

Nat’l Ass’n of State Util. Consumer Advocs. v.

FCC,

457 F.3d 1238 (11th Cir. 2006)......................... 4, 15

Pac. Gas & Elec. Co. v.

State Energy Res. Conservation & Dev. Comm’n,

461 U.S. 190 (1983) ............................................... 20

Siegel v. AEC,

400 F.2d 778 (D.C. Cir. 1968) ................................. 6

Sierra Club v. NRC,

(No. 21-1104), ECF No. 1904266 .......................... 10

Simmons v. ICC,

716 F. 2d 40 (D.C. Cir. 1983) ................................ 18

Skull Valley Band of Goshute Indians v. Nielson,

376 F.3d 1223 (10th Cir. 2004)....................... 19, 20

State ex rel Balderas v. NRC,

59 F. 4th 1112 (10th Cir. 2023) .................. 4, 15, 20

Train v. Colo. Pub. Int. Rsch. Grp., Inc.,

426 U.S. 1 (1976) ..................................................... 7

Vt. Yankee Nuclear Power Corp. v.

Nat. Res. Def. Council, Inc.,

435 U.S. 519 (1978) ................................................. 5

Wales Transp., Inc. v. ICC,

728 F.2d 774 (5th Cir. 1984)................................... 4

xi

STATUTES, RULES AND REGULATIONS

28 U.S.C. § 1254(1) ..................................................... 3

28 U.S.C. §§ 2341 et seq. ............................................ 3

28 U.S.C. § 2342 ......................................................... 3

28 U.S.C. § 2344 ................................................... 4, 14

42 U.S.C. §§ 2011 et seq. ............................................ 5

42 U.S.C. § 2013(c) ............................................... 6, 23

42 U.S.C. § 2013(d) ..................................................... 6

42 U.S.C. § 2014(aa) ................................................... 6

42 U.S.C. § 2014(dd) ................................................... 8

42 U.S.C. § 2014(e)(1) ............................................... 24

42 U.S.C. § 2014(v) ................................................... 27

42 U.S.C. § 2014(z) ..................................................... 6

42 U.S.C. § 2071 .......................................................... 6

42 U.S.C. § 2073 ......................................................... 7

42 U.S.C. §§ 2073(a)(1)-(3) ....................................... 23

42 U.S.C. §§ 2073(a)(1)-(4) ....................................... 21

42 U.S.C. § 2073(a)(4) ........................................ 22, 23

42 U.S.C. § 2093 ......................................................... 7

42 U.S.C. § 2093(a)(4) .............................................. 22

42 U.S.C. § 2111 ......................................................... 7

42 U.S.C. § 2133 ....................................................... 21

42 U.S.C. § 2133(b) ..................................................... 7

42 U.S.C. §§ 2133(d)-(e).............................................. 7

42 U.S.C. § 2134 ....................................................... 21

xii

42 U.S.C. § 2201(b) ............................................... 7, 24

42 U.S.C. §§ 2239(a)-(b) ............................................. 3

42 U.S.C. § 2239(a)(1)(A) ........................................... 4

42 U.S.C. § 2239(b)(1) ................................................ 4

42 U.S.C. §§ 5801 et seq. ............................................ 5

42 U.S.C. § 10101 ....................................................... 8

42 U.S.C. §§ 10101 et seq. .......................................... 8

42 U.S.C. § 10101(23) ................................................. 8

Administrative Procedure Act ..................... 15, 16, 17

OTHER AUTHORITIES

39 Fed. Reg. 32,345, 32,456 (Sept. 6, 1974)......... 8, 26

83 Fed. Reg. 39,919 (July 16, 2018) ........................... 9

88 Fed. Reg. 30,801 (May 12, 2023) ......................... 10

128 Cong. Rec. 32,945, 32,946 (1982) .................. 8, 26

Federal Government Petition for Writ of

Certiorari, Texas¸ ___ U.S.___ (No. 23-1300)....... 13

Final Brief of Beyond Nuclear at 31-36,

Beyond Nuclear, No. 20-1187, (D.C. Cir.

Jan. 22, 2024), ECF No. 2036820 ......................... 11

Final Brief of Environmental Petitioners at

19-22, Beyond Nuclear, No. 20-1187 (D.C.

Cir. Jan. 23, 2024), ECF No. 2036920 ................. 11

Final Brief of Fasken at 14-16, Beyond

Nuclear, No. 20-1187 (D.C. Cir. Jan. 23,

2024), ECF No. 2036986 ....................................... 11

H.R. Rep. No. 1569, 93d Cong., 2d Sess. (1974) ...... 18

H.R. Rep. No. 83-328 (2d. Sess. 1954) ....................... 6

H.R. Rep. No. 85-2272 (2d. Sess. 1958) ................... 23

xiii

Interim Storage Partners Petition for Writ of

Certiorari, Texas¸ ___ U.S.___ (No. 23-1300)....... 13

Joint Committee on Atomic Energy, Amending

the Atomic Energy Act of 1954, H.R. Rep.

No. 85-2272 (1958) ................................................ 23

Petition for Review, Fasken Land & Minerals,

Ltd. v. NRC, No. 21-1147 (D.C. Cir. July 25,

2021), ECF No. 1904236 ....................................... 10

Petition for Review, Fasken Land & Minerals,

Ltd., No. 21-1147 (D.C. Cir. June 25, 2021),

ECF No. 1904236 .................................................. 10

Pub. L. No. 109-58, 119 Stat. 594, 806, 807

(Aug. 8, 2005) ........................................................ 24

S. Rep. No. 500, 93d Cong., 1st Sess. (1973) ........... 18

1

PETITION FOR WRIT OF CERTIORARI

This is the second of two related cases from the

Fifth Circuit creating two different circuit splits and

undermining the federal government’s ability to

regulate nuclear materials throughout the United

States.

In the first case, Texas v. NRC, App., infra, 4a35a, reh’g en banc denied App., infra, 36a-57a, the

Fifth Circuit relied on a “judge-made, ultra vires

exception” to the Hobbs Act to hear a case that failed

to meet statutory requirements, creating a split with

four other circuit courts. Texas, App., infra, 54a

(Higginson, J., dissenting). The Fifth Circuit’s

exception to the Hobbs Act in turn allowed that court

to find that the NRC does not have authority to issue

licenses for spent nuclear fuel storage, thus creating

a second split with the Tenth and D.C. Circuits.

Texas, App., infra, 21a. Shortly after issuing the

Texas decision, the Fifth Circuit applied the same

theory to this case, App., infra, 1a, and vacated

petitioner’s license for a spent nuclear fuel storage

facility in New Mexico.

Even though it created a circuit split, the Fifth

Circuit recognized the ultra vires exception to the

party-aggrieved requirement of the Hobbs Act,

erroneously claiming it was necessary to open the

courthouse door to ultra vires claims. But the door to

the courthouse was already open, and a litigant can

be a party aggrieved in compliance with the Hobbs

Act while also challenging an ultra vires agency

action. Here Fasken could have done both in the

D.C. Circuit, where Sierra Club and Beyond Nuclear

have already raised Hobbs Act claims challenging as

2

ultra vires NRC’s authority to issue petitioner’s

license.

The Fifth Circuit, nevertheless, has discarded

both the door to the courthouse and the structure

holding the door in place, inviting litigants to ignore

the requirements of the Hobbs Act. Under Texas and

this case, a litigant can skip the agency’s

proceedings, wait until after the eleventh hour to

challenge a license after it has been issued, and

attack the same license in multiple circuit courts.

This deprives the agency and the licensee of the

opportunity to address the litigant’s concerns or to

right the alleged wrongs, and serves only to reinstate

the judicial inefficiencies that the Hobbs Act was

intended to avoid: delay and duplication of effort. In

the end, the Fifth Circuit has opened the door for

third parties to impose on the agencies subject to the

Hobbs Act and the circuit courts duplicative, tardy,

and unnecessary litigation.

The Fifth Circuit also—despite the NRC’s

decades-long history of licensing spent nuclear fuel

storage facilities and the views of two other circuit

courts—found that the NRC “has no statutory

authority” under the Atomic Energy Act or the

Nuclear Waste Policy Act to issue a license for a

spent nuclear fuel storage facility. Texas, App.,

infra, 47a. In so doing, the Fifth Circuit decided that

the NRC lacks “a broad grant of authority to issue

licenses for any type of possession of special nuclear

material or source material” or long-lived byproduct

material and, thus, could not issue licenses for the

storage of spent nuclear fuel. Texas, App., infra, 27a.

This is plainly contrary to the language of the Atomic

Energy Act, and the D.C. Circuit and Tenth Circuit

3

analysis must prevail over the Fifth Circuit’s

analysis in Texas. This Court should also overturn

the Fifth Circuit’s decisions because they cast a long

shadow over numerous NRC materials licenses

across the United States, including those for existing

spent fuel storage facilities, uranium enrichment

facilities, and nuclear fuel fabrication facilities.

For these reasons, Petitioner Holtec International

respectfully petitions this Court for a writ of

certiorari to review the judgment of the United

States Court of Appeals for the Fifth Circuit in this

case.

OPINIONS BELOW

The court of appeals opinion (App., infra, 1a-3a) is

unreported.

JURISDICTION

The judgment of the court of appeals was entered

on March 27, 2024. The jurisdiction of this Court is

invoked under 28 U.S.C. § 1254(1).

STATUTORY PROVISIONS INVOLVED

The relevant statutory provisions are reproduced

in the appendix. App., infra, 337a-344a.

STATEMENT

A. Legal Framework

1. The Hobbs Act

The Hobbs Act, 28 U.S.C. 2341 et seq., governs

judicial review of the orders of several federal

agencies, including the NRC. See 42 U.S.C. §§

2239(a)-(b); 28 U.S.C. § 2342. Under the Hobbs Act,

“part[ies] aggrieved by the final order” may petition

4

for review in the federal courts of appeals. 28 U.S.C.

§ 2344 (“Any party aggrieved by the final order may,

within 60 days after its entry, file a petition to

review the order in the court of appeals wherein

venue lies.”). In NRC adjudicatory proceedings, a

“party” is a “person whose interest may be affected

by the proceeding,” and who is admitted to such

proceeding. 42 U.S.C. § 2239(a)(1)(A). In addition, if

a person pursues party status but is rejected by the

agency, that person can nevertheless appeal the

NRC’s decision rejecting its party status. 42 U.S.C. §

2239(b)(1).

The Hobbs Act’s text provides no exceptions to the

“party aggrieved” requirement. 28 U.S.C. § 2344.

Nonetheless, in 1982 the Fifth Circuit announced an

exception, in dicta, to the Hobbs Act party-aggrieved

requirement for challenges to an agency action that

is alleged to be beyond the agency’s authority. Am.

Trucking Ass’ns, Inc. v. ICC, 673 F.2d 82, 85 n.4 (5th

Cir. 1982); Wales Transp., Inc. v. ICC, 728 F.2d 774,

776 n.1 (5th Cir. 1984). Four other circuit courts

have explicitly refused to follow the Fifth Circuit and

have found no exception to the party-aggrieved

requirement for alleged ultra vires agency actions.

See, e.g., Erie-Niagara Rail Steering Comm. v.

Surface Transp. Bd., 167 F.3d 111, 112-113 (2d Cir.

1999) (declining to follow the Fifth Circuit decisions

American Trucking and Wales Transportation as

dicta); In re Chicago, Milwaukee, St. Paul & Pac.

R.R. Co., 799 F.2d 317, 335-336 (7th Cir. 1986)

(declining to follow the Fifth Circuit decision in

American Trucking); State ex rel Balderas v. NRC, 59

F. 4th 1112, 1123-24 (10th Cir. 2023) (declining to

follow the Fifth Circuit); Nat’l Ass'n of State Util.

Consumer Advocs. v. FCC, 457 F.3d 1238, 1249

5

(2006) (11th Cir. 2006) (declining to follow the Fifth

Circuit). The Fifth Circuit has recognized that its

ultra vires exception has been “squarely rejected by

some of our sister circuits,” further calling its

validity into question. Baros v. Tex. Mexican Ry. Co.,

400 F.3d 228, 238 n.24 (5th Cir. 2005); see also

Merch. Fast Motor Lines, Inc. v. ICC, 5 F.3d 911, 922

n.16 (5th Cir. 1993). Nonetheless, the Fifth Circuit

used this exception in Texas and this case to avoid

the Hobbs Act’s party-aggrieved requirement.

2. The Nuclear Legal Framework

a. In 1954, Congress created in the Atomic

Energy Act, 42 U.S.C. 2011 et seq., a comprehensive

regime for federal regulation over the then-nascent

civilian nuclear industry.1 The Atomic Energy Act

was drafted with flexibility in mind, rather than with

an intent to proscribe each specific permissible action

of the NRC. Indeed,

[i]n the Presidential Message recommending

the legislation which culminated in the

Atomic Energy Act of 1954, it was said that

flexibility was a peculiar desideratum and

that, absent an accumulation of experience

with the new civilian industry hopefully to

be brought into being, “it would be unwise to

try to anticipate by law all of the many

problems that are certain to arise.”

1 In the Atomic Energy Act, the “Atomic Energy

Commission was given broad regulatory authority over the

development of nuclear energy.” Vt. Yankee Nuclear Power

Corp. v. Nat. Res. Def. Council, Inc., 435 U.S. 519, 526 (1978).

This authority was later transferred to the NRC by the Energy

Reorganization Act of 1974, 42 U.S.C. § 5801 et seq.

6

Siegel v. AEC, 400 F.2d 778, 783 (D.C. Cir. 1968)

(citing H.R. Rep. No. 83-328, at 7 (2d. Sess. 1954))

(emphasis supplied). Instead, Congress enacted “a

regulatory scheme which is virtually unique in the

degree to which broad responsibility is reposed in the

administering agency, free of close prescription in its

charter as to how it shall proceed in achieving the

statutory objectives.” Siegel, 400 F.2d at 783.

While the Atomic Energy Act avoided detailed

instructions for the NRC, its intended goals are

clearly set forth. Congress intended for the Atomic

Energy Act “to encourage widespread participation

in the development and utilization of atomic energy

for peaceful purposes,” 42 U.S.C. § 2013(d), and it

intended to establish “Government control of the

possession, use, and production of [both] atomic

energy and special nuclear material” in order to

“make the maximum contribution to the common

defense and security and the national welfare.”2 42

U.S.C. § 2013(c) (emphasis added). Thus, the Atomic

Energy Act vested the Federal Government with

exclusive regulatory control over the possession, use,

and production of both atomic energy and special

nuclear material. As a result, the Atomic Energy Act

2 Special nuclear material is defined as “(1) plutonium,

uranium enriched in the isotope 233 or in the isotope 235, and

any other material which the Commission, pursuant to the

provisions of section 2071 of this title, determines to be special

nuclear material, but does not include source material; or (2)

any material artificially enriched by any of the foregoing, but

does not include source material.” 42 U.S.C. § 2014(aa).

Source material is defined as “(1) uranium, thorium, or any

other material which is determined by the Commission . . . to be

source material.” 42 U.S.C. § 2014(z).

7

sets forth an overall framework for Federal

Government regulation of the possession, use, and

production of atomic energy through utilization

facility licenses, 42 U.S.C. §§ 2133(d)-(e); certain

methods of producing special nuclear material

through production facility licenses, 42 U.S.C. §

2133(b); and the possession and other uses or

production of special nuclear material (including

uranium enrichment and fuel fabrication) through

special nuclear materials licenses. 42 U.S.C. § 2073.

In developing the Atomic Energy Act, Congress

also directed the NRC to

establish by rule, regulation, or order, such

standards and instructions to govern the

possession and use of special nuclear

material, source material, and byproduct

material as the Commission may deem

necessary or desirable to promote the

common defense and security or to protect

health or to minimize danger to life or

property.

42 U.S.C. § 2201(b); see also 42 U.S.C. § 2093

(providing authority to issues licenses for source

material); 42 U.S.C. § 2111 (providing authority to

issues licenses for byproduct material). As a result,

the “comprehensive regulatory scheme created by the

[Atomic Energy Act] embraces the production,

possession, and use of three types of radioactive

materials—source material, special nuclear material,

and byproduct material,” Train v. Colo. Pub. Int.

Rsch. Grp., Inc., 426 U.S. 1, 6-7 (1976) (footnotes

omitted).

8

b. For fifty years, the NRC has used its Atomic

Energy Act authority to issue special nuclear

materials licenses for spent nuclear fuel3 storage

facilities, both at and away from reactors. As one

example starting in the 1970s, the Commission

issued General Electric Company a special nuclear

materials license to store spent nuclear fuel at a nonreactor location in Morris, Illinois. See General

Electric Co., Issuance of Facility License for

Possession Only, 39 Fed. Reg. 32,345, 32,456 (Sept.

6, 1974) (regarding continuation of special nuclear

materials license to receive and possess spent

nuclear fuel at GE Morris).

c. Congress later developed and enacted the

Nuclear Waste Policy Act of 1982, 42 U.S.C. 10101 et

seq. The GE Morris license and the NRC’s issuance

of licenses for spent fuel storage were specifically

discussed during Congress’s development of the

Nuclear Waste Policy Act. 128 Cong. Rec. 32,945,

32,946 (1982). Yet Congress did not, in the Nuclear

Waste Policy Act itself or in the intervening decades,

amend the Atomic Energy Act or otherwise mandate

or even suggest that the Commission stop licensing

these spent nuclear fuel storage facilities or vacate

the existing licenses.

3 Spent nuclear fuel is “fuel that has been withdrawn from a

nuclear reactor following irradiation, the constituent elements

of which have not been separated by reprocessing.” 42 U.S.C. §

10101(23). See also 42 U.S.C. § 2014(dd) (“The terms ‘highlevel radioactive waste’ and ‘spent nuclear fuel’ have the

meanings given such terms in section 10101 of this title.”).

Spent nuclear fuel is comprised of special nuclear material,

source material, and byproduct material.

9

B. Factual and Procedural Background

1. The Holtec NRC Proceeding

The NRC’s adjudicatory proceeding for the Holtec

license began on July 16, 2018, when the NRC

published a notice in the Federal Register providing

the public an opportunity to participate by (1)

requesting a formal evidentiary hearing to challenge

Holtec’s application and (2) petitioning for leave to

intervene in the proceeding. See 83 Fed. Reg. 39,919

(July 16, 2018).

Fasken responded to this notice on September 14,

2018, filing a motion to dismiss Holtec’s license

application based on the NRC’s asserted lack of

authority to issue the license. The Secretary of the

Commission considered this motion to be a hearing

request and a proposed contention. Thus, Fasken’s

first contention in the underlying agency proceeding

alleged that the Holtec application should be rejected

because it purportedly contemplated storage

contracts with the U.S. Department of Energy and

such contracts would be illegal under the Nuclear

Waste Policy Act. In re Holtec International, 91

N.R.C. 167, 173-174 (2020). Other organizations,

Beyond Nuclear and Sierra Club, requested a

hearing, petitioned to intervene, and filed similar

claims. Id. at 173. An NRC Atomic Safety and

Licensing Board appointed by the Commission

rejected Fasken’s contention, and Fasken appealed

that decision to the Commission. Id. at 175-176. On

April 23, 2020, the Commission affirmed the Board

decision rejecting Fasken’s contention and Beyond

Nuclear and Sierra Club’s similar claims. Id. at 176.

10

Fasken later proposed additional contentions, and

the Board and Commission issued subsequent orders

denying or dismissing all of Fasken’s challenges. See

In re Holtec International, 93 N.R.C. 215, 217 (2021).

Shortly after its claims were resolved at the NRC,

Fasken filed a Hobbs Act challenge in the D.C.

Circuit. See Petition for Review, Fasken Land &

Minerals, Ltd. v. NRC, No. 21-1147 (D.C. Cir. July

25, 2021), ECF No. 1904236. The NRC issued a

license for the Holtec spent fuel storage facility on

May 9, 2023. 88 Fed. Reg. 30,801 (May 12, 2023).

2. The Holtec D.C. Circuit Proceeding

The Commission decisions in the Holtec

proceeding have been under review in the D.C.

Circuit since 2020, when Don’t Waste Michigan and

Beyond Nuclear first filed petitions for review under

the Hobbs Act, which were later consolidated with

subsequent petitions from Sierra Club and Fasken.

See Clerk’s Orders Consolidating Cases, Beyond

Nuclear v. NRC, No. 20-1187 (D.C. Cir. June 20,

2020), ECF No. 1848608 (consolidating Don’t Waste

Mich. v. NRC (No. 20-1225)), ECF No. 1895402

(consolidating Sierra Club v. NRC (No. 21-1104)),

and ECF No. 1904266 (consolidating Fasken Land &

Minerals, Ltd. v. NRC (No. 21-1147)).

Fasken initially sought review of the NRC’s

disposition of its statutory authority contention by

including the Commission’s decision on the issue in

its petition for review in the D.C. Circuit. Petition

for Review, Fasken Land & Minerals, Ltd., No. 211147 (D.C. Cir. June 25, 2021), ECF No. 1904236.

Later, however, Fasken chose to pursue only some of

its underlying claims in the D.C. Circuit, focusing on

its seismic and geological concerns and ignoring its

11

challenge to NRC’s licensing authority. Final Brief

of Fasken at 14-16, Beyond Nuclear, No. 20-1187

(D.C. Cir. Jan. 23, 2024), ECF No. 2036986. Other

parties, Beyond Nuclear and Sierra Club, pursued

claims in the D.C. Circuit challenging the NRC’s

authority to issue the Holtec license. See Final Brief

of Beyond Nuclear at 31-36, Beyond Nuclear, No. 201187, (D.C. Cir. Jan. 22, 2024), ECF No. 2036820;

Final Brief of Environmental Petitioners at 19-22,

Beyond Nuclear, No. 20-1187 (D.C. Cir. Jan. 23,

2024), ECF No. 2036920. The decision in the D.C.

Circuit case is pending.

3. The Holtec Fifth Circuit Proceeding

Two months after the NRC issued Holtec’s

license, Fasken filed its petition in the Fifth Circuit

challenging the NRC’s authority to issue the Holtec

license. Fasken reiterated its underlying claims on

NRC’s authority to issue the license but did not

justify pursuing its claims years after the NRC had

first rejected those claims in its petition to intervene.

Instead, Fasken filed its claims under the cloak of a

challenge to the NRC’s purportedly ultra vires

issuance of the Holtec license, relying on the Fifth

Circuit’s ultra vires exception argued in Texas. App.,

infra, 18a.

The Federal Government moved to transfer

Fasken’s Fifth Circuit challenge to the D.C. Circuit

given the ongoing D.C. Circuit proceeding. See App,

infra, 3a. However, in briefing the parties all

recognized that a decision in Texas, a case regarding

substantially the same issues for a different facility,

would bind a Fifth Circuit panel on the NRC’s

authority to issue the Holtec license and the

12

existence of an ultra vires exception to Hobbs Act

requirements. App., infra, 2a.

At this point, a Fifth Circuit panel had rendered a

decision in the Texas case and vacated the NRC

license of a similar spent fuel storage facility owned

by Interim Storage Partners, LLC, in Andrews

County, Texas. That panel concluded that: (1) it

could hear the case under its ultra vires exception to

the party aggrieved requirements in the Hobbs Act;

(2) the NRC lacked the authority to license a spent

fuel storage facility under the Atomic Energy Act; (3)

the facility license “contradict[ed] Congressional

policy expressed in the Nuclear Waste Policy Act,”

and (4) the NRC’s issuance of a license for a spent

fuel storage facility was contrary to the major

questions doctrine. Texas, App., infra, 34a-35a, 56a57a. The Fifth Circuit panel granted the petitions

for review in Texas and vacated the Interim Storage

Partners license. Texas, App., infra, 5a.

The Federal Government and Intervenor Interim

Storage Partners timely sought rehearing en banc of

the panel decision. Nine judges voted against

rehearing the case, while seven judges voted in favor

of rehearing en banc. In a March 14, 2024,

concurrence, six judges set forth their reasons for

denying rehearing, while four judges issued a dissent

against the rehearing denial. Texas, App., infra, 37a.

After a final decision was rendered in the Texas

case, the Fifth Circuit found that because Texas

involved a “materially identical license in a

materially identical procedural posture,” absent the

“[c]ourt granting rehearing en banc in Texas . . . the

panel’s consideration of this case will be controlled by

[Texas].” App., infra, 2a. Consequently, because the

13

Fifth Circuit found that its holding in Texas dictated

the outcome here, on March 27, 2024, the court

granted Fasken’s petition for review and vacated

Holtec’s spent fuel storage facility license. The court

also denied the Federal Government’s motion to

transfer the case to the D.C. Circuit as moot. App.,

infra, 2a-3a.

On June 12, 2024, the Federal Government and

Intervenor Interim Storage Partners filed Petitions

for Certiorari before this Court seeking a review of

the Texas decision. Federal Government Petition for

Writ of Certiorari, Texas¸ ___ U.S.___ (No. 23-1300);

Interim Storage Partners Petition for Writ of

Certiorari, Texas¸ ___ U.S.___ (No. 23-1300). The

Texas case and this case raise substantially the same

issues regarding the Hobbs Act and the NRC’s

authority to issue licenses for spent fuel storage.

REASONS FOR GRANTING THE PETITION

The Texas decision and the decision in this case

created two different circuit splits, one on judicial

review under the Hobbs Act, and the second on the

scope of the NRC’s statutory authority to issue

nuclear materials licenses. Both of these circuit

splits are worthy of this Court’s consideration. First,

in creating an ultra vires exception to the partyaggrieved requirements of the Hobbs Act, the Fifth

Circuit created a split with four other circuit courts,

undermined the goals of the Hobbs Act, and

destabilized the process for judicial review for the

federal agencies and agency orders subject to that

Act. Second, in an inexplicable reading of the Atomic

Energy Act, the Fifth Circuit split with the D.C.

Circuit and the Tenth Circuit by limiting the NRC’s

ability to issue nuclear materials licenses in a

14

manner directly contrary to the NRC’s plain text

statutory authority. This decision not only resulted

in the vacatur of the two licenses at issue in Texas

and this case but also potentially undermines the

federal government’s ability to regulate a broader

swath of the nuclear industry, leaving other nuclear

materials licenses subject to substantial uncertainty.

This Court’s intervention is necessary to prevent

further damage to the process of judicial review for

agencies subject to the Hobbs Act and to the NRC’s

authority to issue nuclear materials licenses.

I. The Fifth Circuit Erred By Ignoring The

Plain Text Of The Hobbs Act And The

Faithful Interpretations Of Four Other

Circuits.

A. There Is No Ultra Vires Exception To The

Hobbs Act.

There is no dispute that the plain language of the

Hobbs Act allows only “part[ies] aggrieved by the

final order” of an agency subject to the Act to petition

for review in the federal courts. 28 U.S.C. § 2344.

There is also no dispute that the text of the Hobbs

Act provides no exceptions to this party-aggrieved

status requirement. See 28 U.S.C. § 2344. Yet, the

Fifth Circuit in Texas (and applied in this case) adds

an extra textual gloss to the statute, suspending this

requirement for any attack on an agency action

claimed to be ultra vires. Texas, App., infra, 45a

(allowing any person to appeal “where ‘the agency

action is attacked as exceeding its power’”) (internal

brackets omitted).

Four other Circuits have already considered, and

rejected, this extra-textual “exception.” These

15

Courts have observed that the Hobbs Act limits

Circuit court review to petitions filed by aggrieved

parties. As bluntly stated by the Seventh Circuit,

the Hobbs Act “limits review to petitions filed by

parties, and that is that.” In re Chicago, 799 F.2d at

335.

The alleged existence of an ultra vires agency

action is not enough to overcome Congress’ decision

to limit the reach of the Circuit courts. As the

Seventh and Tenth Circuits have correctly observed,

the courts “may not decide a case just because that

would be a good idea; power must be granted, not

assumed.” Id.; see also Balderas, 59 F.4th at 1123.

And, as the Second, Seventh, Tenth, and Eleventh

Circuits have all recognized, an ultra vires

“exception” to the Hobbs Act is particularly

dangerous. “‘[E]xceeding the power’ of an agency

may be a synonym for ‘wrong,’ ” such that the socalled “‘exception’ could be invoked in every case,”

eliminating the statutory limits on the courts. ErieNiagara Rail, 167 F.3d at 112 (citing In re Chicago,

799 F.2d at 335); see also Balderas, 59 F.4th at 112324, National Ass'n of State Util. Consumer Advocs.,

457 F.3d at 1249.

The Fifth Circuit’s en banc concurrence in Texas

claims that it is a “misconception[ ]” “that the ultra

vires exception means no more than that an agency

‘got it wrong’ per [Administrative Procedure Act]

standards.” Texas, App., infra, 48a (Jones, J.,

concurring). The concurrence claims that the ultra

vires exception is narrower because “the term

literally refers to being ‘outside’ the agency’s power,

i.e., in defiance of the limits placed by Congress in

the agency’s governing statute or the Constitution.”

16

Texas, App., infra, 48a-49a. The concurrence then

concludes, without any explanation whatsoever, that

“if ever there were a case in which an agency acted

ultra vires, it should be this case.” Texas, App.,

infra, 49a.

On the contrary, as described below, it has been

the long-established precedent of two other Circuit

courts that the NRC is acting within the bounds of

its statutory authority when issuing licenses for

spent fuel storage. Given the D.C. Circuit and Tenth

Circuit precedent to the contrary, and the NRC’s

decades-long licensing practice, it is not clear how

the NRC’s issuance of a license in this case is the

epitome of an ultra vires agency action.

The dissent to the en banc rehearing denial has

by far the better argument. “Parsing which merits

arguments here fall under our court’s ultra vires

exception shows its unworkability—and the risk for

judicial aggrandizement when courts can pick and

choose when to abide by Congress’s limits.” Texas,

App., infra, 24a (Higginson, J., dissenting). As the

dissent cogently observes, the panel heard the case

only after “speculat[ing] about what a petitioner’s

challenges are really about to decide whether

Congress’s clear jurisdictional limitation on their

power to hear cases really applies,” since the panel

decision decided that the ultra vires exception

allowed it to hear some claims (that the NRC

violated the Atomic Energy Act and the Nuclear

Waste Policy Act) but not other claims (that the NRC

violated the Administrative Procedure Act or

National Environmental Policy Act). Texas, App.,

infra, 56a (emphasis supplied). Considering that

“[a]n agency exceeds its power whenever it violates

17

the law,” there is no rational explanation for how the

panel parsed these claims to define an ultra vires

action. Texas, App., infra, 57a. With no rational

bounds to the definition of an ultra vires action, the

exception “reads out the difference . . . that Congress

created between broader judicial review under the

Administrative Procedure Act and narrower judicial

review under the Hobbs Act.” Texas, App., infra,

57a.

It is clear that the Fifth Circuit’s ultra vires

exception is extra-textual and ripe for abuse, and the

four Circuits that have refused to adopt it are

correct. This Court should take this case and reject

the ultra vires exception to prevent endless extrastatutory challenges to the agencies that are subject

to Hobbs Act review.

B. The Ultra Vires Exception Is An End Run

Around The Requirements Of The Hobbs

Act.

The Fifth Circuit’s en banc concurrence argues

that its ultra vires exception is consistent with the

practice of this Court ensuring that “Article III

courts are not totally closed to plaintiffs” who claim

that an agency acts beyond its delegated powers.

Texas, App., infra, 47a (Jones, J., concurring) (citing

Leedom v. Kyne, 358 U.S. 184 (1958)). In the

alternative, the concurrence also argues that the

ultra vires exception is not necessary because the

parties in that case, Fasken and Texas, would

otherwise qualify as parties aggrieved under the

Hobbs Act. Texas, App., infra, 44a. These conflicting

rationales demonstrate the concurrence’s

irrationality. There is no need for an ultra vires

exception to ensure judicial review when the parties

18

could have sought judicial review in compliance with

the Hobbs Act.

Indeed, Fasken has not used the ultra vires

exception as a means to ensure the availability of

judicial review in this case, because Fasken already

had the right to judicial review. Fasken participated

in the Holtec licensing proceeding, disputing various

aspects of the proceeding. Fasken is a party

aggrieved as to those claims, and it used that status

years ago to initiate a separate, ongoing challenge in

the D.C. Circuit. Fasken could have, but chose not

to, pursue its challenge to the NRC’s authority to

issue the Holtec license in the pending D.C. Circuit

proceeding. In fact, Beyond Nuclear and Sierra Club

are pursuing those claims.

Fasken did not need the ultra vires exception to

obtain judicial review. Instead, it used the exception

to avoid the statutory constraints of judicial review

under the Hobbs Act. Congress intended the Hobbs

Act to ensure the “elimination of multiple suits

challenging the same Commission order [and]

limitation of the time for filing review to 60 days

after entry of the order.” Simmons v. ICC, 716 F. 2d

40, 44 (D.C. Cir. 1983) (citing H.R. Rep. No. 1569, at

4-6, 93d Cong., 2d Sess. (1974), S. Rep. No. 500, at 34, 93d Cong., 1st Sess. (1973));see also Carpenter v.

DOT, 13 F.3d 313, 316 (9th Cir. 1994) (“By creating a

strict time frame for review and bypassing district

courts, Congress hoped [the Hobbs Act would]

increase the speed, efficiency and consistency of

judicial review.”). By using the ultra vires exception,

Fasken seeks to avoid these limitations. It filed

multiple suits in separate judicial circuits against

the same NRC license, and (in this proceeding) filed

19

its challenge after the 60-day Hobbs Act deadline

from the NRC decisions rejecting Fasken’s

contentions. In short, Fasken has used the Fifth

Circuit’s ultra vires exception as an excuse to flout

the requirements of the Hobbs Act, not as a means to

ensure judicial review.

Unless remedied by this Court, the Fifth Circuit’s

weaponization of this end run around the

requirements of the Hobbs Act means that every

agency that is subject to the Act can expect

duplicative, tardy, and unnecessary litigation arising

from similar challenges in the future.

II. The Fifth Circuit’s Decision To Limit The

NRC’s Statutory Authority Is Plainly

Inaccurate And Contrary To Settled

Precedent.

A. The Fifth Circuit’s Decision Creates A

Circuit Split.

The D.C. Circuit and the Tenth Circuit have long

held that the NRC has the statutory authority to

issue licenses for the storage of spent nuclear fuel

because: (1) the Atomic Energy Act unambiguously

grants the NRC such authority, and (2) the Nuclear

Waste Policy Act did not revoke that authority. See

Bullcreek v. NRC, 359 F.3d 536, 538 (D.C. Cir. 2004),

Skull Valley Band of Goshute Indians v. Nielson, 376

F.3d 1223, 1232 (10th Cir. 2004). Thus, the NRC has

for decades had the unassailable, court-approved

authority to license spent nuclear fuel storage

facilities, until last year when the Fifth Circuit

decided otherwise in Texas, App., infra, 4a-35a, and

this case, App., infra, 1a-3a.

20

In Bullcreek, the D.C. Circuit held that the

Atomic Energy Act “authorized the NRC to regulate

the possession, use, and transfer of the constituent

materials of spent nuclear fuel, including special

nuclear material, source material, and byproduct

material.” 359 F.3d at 538. Thus, the D.C. Circuit

concluded that “it has long been recognized that the

[Atomic Energy Act] confers on the NRC authority to

license and regulate the storage and disposal of such

fuel,” citing this Court’s decision in Pac. Gas & Elec.

Co. v. State Energy Res. Conservation & Dev.

Comm'n, 461 U.S. 190, 207 (1983), among other

cases. Bullcreek, 359 F.3d at 538. The D.C. Circuit

further observed that “Congress was aware of the

NRC’s regulations for licensing private away-fromreactor storage facilities.” Id. at 542. Yet, Congress

left the NRC’s authority under the Atomic Energy

Act fully intact, despite crafting the Nuclear Waste

Policy Act, an otherwise comprehensive piece of

legislation on nuclear waste policy. Id.

Shortly after Bullcreek was decided, the Tenth

Circuit found the D.C. Circuit’s analysis persuasive

and declined to revisit the issue in Skull Valley. See

376 F.3d at 1232. Nearly twenty years later, the

Tenth Circuit reiterated that the NRC “bears the

authority to license the private use of facilities to

store spent nuclear fuel,” Balderas, 59 F.4th at111516, while the D.C. Circuit, again, explained that “the

NRC may promulgate regulations governing the

possession and use of nuclear material” and “[t]his

authority permits the NRC ‘to license and regulate

the storage and disposal of spent nuclear fuel.’”

Don’t Waste Mich. v. NRC, No. 21-1048, 2023 WL

395030, at *1 (D.C. Cir. Jan. 25, 2023) (per curiam)

(quoting Bullcreek, 359 F.3d at 538).

21

This interpretation of the NRC’s statutory

authority is correct and should be upheld, and the

Fifth Circuit decision to the contrary should be

rejected.

B. The Fifth Circuit’s Application Of The

Atomic Energy Act Is Egregiously Wrong.

The Fifth Circuit parts with the D.C. and Tenth

Circuits by misreading the Atomic Energy Act to

reach several demonstrably erroneous conclusions.

First, the Fifth Circuit incorrectly found that the

NRC has only limited authority under the Atomic

Energy Act to issue licenses over special nuclear

material and cannot license the storage of spent

nuclear fuel. See Texas, App., infra, 27a, 34a.

Second, the Fifth Circuit wrongly found that the

NRC cannot issue licenses for the byproduct material

in spent nuclear fuel. See Texas, App., infra, 27a28a. Thus, the Fifth Circuit concluded that the NRC

has no authority to issue licenses to store spent

nuclear fuel either through its authority over nuclear

material. See Texas, App., infra, 28a.

The plain text of the Atomic Energy Act

demonstrates the many errors in the Texas analysis.

a. First, the Atomic Energy Act clearly provides

the NRC with the authority to issue special nuclear

materials licenses for four purposes: (1) “for the

conduct of research and development activities,” (2)

for use in a research reactor licensed under 42 U.S.C.

§ 2134, (3) for use under a production or utilization

facility licensed under 42 U.S.C. § 2133, and (4) “for

such other uses as the Commission determines to be

appropriate to carry out the purposes of [the Atomic

Energy Act].” 42 U.S.C. §§ 2073(a)(1)-(4) (emphasis

22

added). This broad grant of authority is plain on its

face, but in Texas, the Fifth Circuit eliminated the

fourth category, i.e., NRC’s authority to issue

licenses for “other uses as the Commission

determines to be appropriate” under 42 U.S.C.

§ 2073(a)(4).

The Fifth Circuit interpreted this broad authority

to issue licenses for “other uses” to mean that the

Atomic Energy Act “authorizes the Commission to

issue [nuclear materials] licenses only for certain

enumerated purposes,” including “various types of

research and development,” and for “utilization or

production facilities for industrial or commercial

purposes.” Texas, App., infra, 26a-27a (internal

quotations omitted). The Fifth Circuit pulls

language from an entirely separate part of the

Atomic Energy Act—regarding source material—to

limit the NRC’s authority to issue special nuclear

materials licenses for “such other uses that the

Commission . . . ‘determines to be appropriate to

carry out the purposes of th[e] chapter’” to only those

that the Commission “‘approves . . . as an aid to

science and industry.’” Texas, App., infra, 26a (citing

42 U.S.C. § 2093(a)(4)). According to the Fifth

Circuit, this extra-textual gloss is necessary because

“[p]rinciples of statutory interpretation require these

grants [in the special nuclear material provision] be

read in light of the other, more specific purposes

listed [in the source material provision]—namely for

certain types of research and development.” Texas,

App., infra, 26a (emphasis added).

Thus, under the Fifth Circuit’s convoluted

interpretation of the Atomic Energy Act, the NRC

may only issue special nuclear materials licenses for

23

research and development purposes and utilization

or production facilities. See Texas, App., infra, 26a.

That interpretation must be wrong because it

renders the NRC’s authority to issue licenses for

“other uses” as mere statutory surplusage. It is also

plainly wrong because it directly contradicts the

statutory history of the Atomic Energy Ac, as

Congress deliberately “authorize[d] the Commission

to issue licenses for the possession of special nuclear

material within the United States for uses which do

not fall expressly within the present provisions of

subsection 53a [(42 U.S.C. § 2073(a)(1)-(3))].” Joint

Committee on Atomic Energy, Amending the Atomic

Energy Act of 1954, H.R. Rep. No. 85-2272, at 1

(1958) (emphasis added); see 42 U.S.C. Section

2073(a)(4). In this respect, the Fifth Circuit’s

analysis contradicts both the plain text of the Atomic

Energy Act and its statutory history and must be

overturned.

b. Second, the Fifth Circuit further deviates from

the text of the Atomic Energy Act by deciding that

the Act does not “confer[] a broad grant of authority

to issue licenses for any type of possession of special

nuclear material or source material.” Texas, App.,

infra, 27a.

This cannot be the case. The NRC has a mandate

to provide “Government control of the possession, use,

and production of” “special nuclear material.” 42

U.S.C. § 2013(c) (emphasis added). In addition, the

plain language of the Atomic Energy Act further

provides that the NRC is authorized to “establish by

rule, regulation, or order, such standards and

instructions to govern the possession and use of

special nuclear material, source material, and

24

byproduct material.” 42 U.S.C. § 2201(b) (emphasis

added). The NRC must be able to issue licenses for

the possession of these nuclear materials in order to

maintain control over the possession of special

nuclear material and to regulate the possession of

special nuclear material, source material, and

byproduct material. Yet, the Fifth Circuit analysis

reads these entire provisions of the Atomic Energy

Act. Its decision to limit the NRC’s authority is

plainly contrary to the Act and must be overturned.

c. Third, the Fifth Circuit found that the NRC

does not have authority over the byproduct material

in spent nuclear fuel by once again ignoring the text

of the Atomic Energy Act. The Fifth Circuit

interpreted the definition of byproduct material

based on provisions relating to a particular

byproduct material, radium-226, and, thus,

purported to limit NRC authority to only byproduct

materials like radium-226 that “emit radiation for

significantly less time than spent nuclear fuel.”

Texas, App, infra, 27a. This analysis ignores the

plain text of the Atomic Energy Act which, since its

enactment, has defined byproduct material as “any

radioactive material (except special nuclear material)

yielded in or made radioactive by exposure to the

radiation incident to the process of producing or

utilizing special nuclear material.” 42 U.S.C. §

2014(e)(1). The radium-226 language was added

decades later to the Atomic Energy Act as an

example of naturally occurring radioactive material

(not reactor-created radioactive material). Pub. L.

No. 109-58, 119 Stat. 594, 806, 807 (Aug. 8, 2005).

Again, the Fifth Circuit has ignored the Atomic

Energy Act to arbitrarily limit the NRC’s authority

25

over nuclear materials. Given the lack of textual

support for this misinterpretation of the NRC’s

authority over byproduct material, the Fifth Circuit’s

decision again must be overturned.

C. The Fifth Circuit Further Erred In

Finding That The Nuclear Waste Policy

Act Is Relevant To The NRC’s Authority.

Having found no authority in the Atomic Energy

Act, the Fifth Circuit then decided that the Nuclear

Waste Policy Act also does not provide the NRC with

any independent authority to license the storage of

spent nuclear fuel. Texas, App., infra, 33a-34a. This

conclusion, even if correct, is irrelevant to this case.

The NRC’s clear authority to license spent fuel

storage is derived from the Atomic Energy Act, not

from the Nuclear Waste Policy Act. The Nuclear

Waste Policy Act did not need to provide the NRC

with independent statutory authority to regulate

spent nuclear fuel, because, contrary to the Fifth

Circuit’s decision, that authority is already found in

the Atomic Energy Act. As the D.C. Circuit correctly

observed in Bullcreek,

private away-from-reactor storage was

already regulated by the NRC under the

[Atomic Energy Act] prior to the [Nuclear

Waste Policy Act]. It was not an anomaly for

the [Nuclear Waste Policy Act] to focus on

regulating those “supplements” that the

[Nuclear Waste Policy Act] itself added,

namely federal storage programs, and to

leave the pre-existing regulatory scheme as

it found it. In the absence of irreconcilability

between the [Atomic Energy Act] and the

26

[Nuclear Waste Policy Act], there is no basis

to conclude that in enacting the [Nuclear

Waste Policy Act] Congress implicitly

repealed or superseded the NRC’s authority.

359 F.3d at 543. Once granted in the Atomic Energy

Act, there was no need for Congress to address the

issue again in the Nuclear Waste Policy Act,

particularly given Congressional acknowledgement

during its enactment of the Nuclear Waste Policy Act

that the NRC was already issuing licenses for spent

nuclear fuel storage to facilities such as GE Morris.

128 Cong. Rec. 32,945, 32,946 (1982).

Whether the Nuclear Waste Policy Act grants the

NRC any additional authority to license spent

nuclear fuel storage, beyond that already granted in

the Atomic Energy Act, is simply irrelevant to this

case.

D. The Fifth Circuit’s Reasoning Confounds

The Regulation Of Nuclear Materials.

This Court should also grant certiorari and

overturn the Fifth Circuit’s decisions in Texas and

this case because of the potentially broader

implications on the NRC’s issuance of nuclear

materials licenses. The Fifth Circuit’s interpretation

would undercut long-standing NRC-licenses like the

license issued to the GE Morris facility which has

actively stored spent nuclear fuel for 50 years. See

39 Fed. Reg. at 32,456. It also cannot be reconciled

with spent nuclear fuel storage at decommissioned

and operating reactor sites, which necessarily

requires the possession of special nuclear material,

source material, and byproduct material.

27

The Fifth Circuit’s rationale is also inconsistent

with the NRC’s authority to issue licenses for nuclear

fuel cycle activities like uranium enrichment and

fuel fabrication. The Fifth Circuit claims that “the

definitions of utilization and production facilities”

include fuel fabrication or enrichment facilities,

limiting the impact of its decision to only spent

nuclear fuel storage facilities. Texas, App., infra,

27a. But fuel fabrication and uranium enrichment

facilities are neither production nor utilization

facilities, and, in fact, uranium enrichment is

specifically carved out of the production facility

definition. 42 U.S.C. § 2014(v). As a result, the Fifth

Circuit’s interpretation of the Atomic Energy Act

subverts not only the licenses in Texas and this case

but also those for other spent fuel storage facilities,

in addition to uranium enrichment and fuel

fabrication facilities, both of which are necessary for

the continued operation of the nuclear industry.

For this reason, the Fifth Circuit’s rationale must

be overturned.

28

CONCLUSION

For the foregoing reasons, this Court should grant

the petition for certiorari.

Respectfully submitted,

JAY E. SILBERG

Counsel of Record

ANNE R. LEIDICH

PILLSBURY WINTHROP SHAW

PITTMAN LLP

1200 Seventeenth St., NW

Washington, DC 20036

(202) 663-8063

jay.silberg@pillsburylaw.com

Counsel for Petitioner

JUNE 2024

APPENDIX

i

TABLE OF APPENDICES

Page

APPENDIX A — OPINION OF THE UNITED

STATES COURT OF APPEALS FOR THE

FIFTH CIRCUIT, FILED MARCH 27, 2024 . . . . 1a

A P P E N DI X B — O P I N ION O F T H E

UNITED STATES COURT OF APPEALS

FOR T H E FI F T H CIRCU I T, FILED

AUGUST 25, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a

APPENDIX C — DENIAL OF REHEARING

OF THE UNITED STATES COURT OF

APPEALS FOR THE FIFTH CIRCUIT,

FILED MARCH 14, 2024 . . . . . . . . . . . . . . . . . . . . . 36a

A PPEN DI X D — M EMOR A N DU M

A N D OR DER OF T H E N UCLE A R

REGULATORY COMMISSION, FILED

APRIL 23, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58a

A PPENDI X E — MEMOR A NDUM A ND

ORDER OF THE NUCLEAR REGULATORY

COMMISSION, FILED MAY 7, 2019 . . . . . . . . . 136a

APPENDIX F — STATUTORY PROVISIONS

INVOLVED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337a

1a

APPENDIX A — Appendix

OPINIONAOF THE UNITED

STATES COURT OF APPEALS FOR THE FIFTH

CIRCUIT, FILED MARCH 27, 2024

UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT

No. 23-60377

Summary Calendar

FASKEN LAND AND MINERALS, LIMITED;

PERMIAN BASIN LAND AND ROYALTY OWNERS,

Petitioners,

versus

NUCLEAR REGULATORY COMMISSION;

UNITED STATES OF AMERICA,

Respondents.

Filed March 27, 2024

Appeal from the Nuclear Regulatory Commission

Agency No. 72-1051

Before Jones, Elrod, and Wilson, Circuit Judges.

Per Curiam:*

In Sept ember 2 0 21 the Nuclea r Reg u lat or y

Commission (NRC) issued a license to Interim Storage

* This opinion is not designated for publication. See 5th Cir.

R. 47.5.

2a

Appendix A

Partners, LLC, to establish a facility to store nuclear

waste temporarily in Andrews County, Texas. See Texas

v. Nuclear Regul. Comm’n, 78 F.4th 827, 833–35 (5th Cir.

2023) [hereinafter Texas v. NRC], reh’g en banc denied,

2024 WL 1108700 (5th Cir. Mar. 14, 2024). Texas, Fasken

Land and Minerals, Ltd., (Fasken), and Permian Basin

Land and Royalty Owners (PBLRO) petitioned this court

to set aside that license. Id. at 834–35. In that appeal, a

panel of this court first held that Fasken and PBLRO

had standing under the Constitution and the Hobbs Act

to challenge the NRC’s actions. Id. at 835–40. It then

held that the NRC lacked statutory authority to issue the

license. Id. at 840–44. Accordingly, this court granted the

petitions for review and vacated the license. Id. at 844.

The NRC filed a petition for rehearing en banc on October

24, 2023, which this court denied on March 14, 2024. See

Texas v. Nuclear Regul. Comm’n, No. 21-60743, — F.4th

—, 2024 WL 1108700 (5th Cir. Mar. 14, 2024).

Shortly before the panel issued its opinion in Texas

v. NRC, Fasken and PBLRO filed the petition for review

at issue in this case. They challenge a different license

issued by the NRC in May 2023 to Holtec International

to establish a facility to store nuclear waste in Lea

County, New Mexico. The parties, correctly, agree that

Texas v. NRC involved a “materially identical license in a

materially identical procedural posture” and that “absent

the [c]ourt granting rehearing en banc in Texas [v. NRC]

. . . , the panel’s consideration of this case will be controlled

by [Texas v. NRC].” Because this court’s holding in Texas

v. NRC dictates the outcome here, we GRANT Fasken’s

and PBLRO’s petition for review and VACATE the Holtec

3a

Appendix A

license. The NRC’s motion to transfer the petition for

review to the United States Court of Appeals for the

District of Columbia Circuit is DENIED AS MOOT.

4a

Appendix

B

APPENDIX B — OPINION

OF THE

UNITED STATES

COURT OF APPEALS FOR THE FIFTH CIRCUIT,

FILED AUGUST 25, 2023

UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT

No. 21-60743

STATE OF TEXAS; GREG ABBOTT, GOVERNOR

OF THE STATE OF TEXAS; TEXAS COMMISSION

ON ENVIRONMENTAL QUALITY; FASKEN LAND

AND MINERALS, LIMITED; PERMIAN BASIN

LAND AND ROYALTY OWNERS,

Petitioners,

versus

NUCLEAR REGULATORY COMMISSION;

UNITED STATES OF AMERICA,

Respondents.

Appeal from the Nuclear Regulatory Commission

Agency No. 72-1050

Before Jones, Ho, and Wilson, Circuit Judges.

James C. Ho, Circuit Judge:

Nuclear power generation produces thousands of

metric tons of nuclear waste each year. And such waste has

been accumulating at nuclear power plants throughout the

United States for decades. Congress has mandated that

5a

Appendix B

such waste be permanently stored in a geologic repository.

But the development, licensing, and construction of that

repository has stalled.

To address this problem, the Nuclear Regulatory

Commission has asserted that it has authority under the

Atomic Energy Act to license temporary, away-fromreactor storage facilities for spent nuclear fuel. Based

on that claim of authority, the Commission has issued

a license for Interim Storage Partners, LLC, a private

company, to operate a temporary storage facility on the

Permian Basin, in Andrews County, Texas. Fasken Land

and Minerals, Ltd., a for-profit organization working in oil

and gas extraction, and Permian Basin Land and Royalty

Owners (“PBLRO”), an association seeking to protect the

interests of the Permian Basin, have petitioned for review

of the license.1 So has the State of Texas, which argues,

inter alia, that the Atomic Energy Act doesn’t confer

authority on the Commission to license such a facility.

Texas is correct. The Atomic Energy Act does not

confer on the Commission the broad authority it claims to

issue licenses for private parties to store spent nuclear fuel

away-from-the-reactor. And the Nuclear Waste Policy Act

establishes a comprehensive statutory scheme for dealing

with nuclear waste generated from commercial nuclear

power generation, thereby foreclosing the Commission’s

claim of authority. Accordingly, we grant the petition for

review and vacate the license.

1. For the remainder of this opinion, we use the term “Fasken”

to refer to Fasken Land and Minerals, Ltd. and PBLRO collectively,

unless addressing an issue where it’s necessary to distinguish them.

6a

Appendix B

I.

This case is the latest development in a decadeslong debate over nuclear power and waste regulation.

Accordingly, we provide a brief overview of relevant

historical and technical background before delving into

the specifics of the licensing proceedings challenged here.

A.

The United States began producing nuclear waste

in the 1940s, first as a byproduct of nuclear weapons

development and then as a byproduct of the commercial

nuclear power industry. Blue Ribbon Commission on

A merica’s Nuclear Future, Report to the Secretary of

Energy 19 (Jan. 2012) https://www.energy.gov/sites/prod/

files/2013/04/f0/brc_finalreport_jan2012.pdf [hereinafter

BRC Report]. The first nuclear reactor was demonstrated

in 1942, and Congress authorized civilian application of

atomic power through the Atomic Energy Act of 1946.

Pac. Gas & Elec. Co. v. State Energy Res. Conservation

& Dev. Comm’n, 461 U.S. 190, 206, 103 S. Ct. 1713, 75 L.

Ed. 2d 752 (1983).

The Act granted regulatory authority over nuclear

energy to the Atomic Energy Commission. See Union

of Concerned Scientists v. NRC, 735 F.2d 1437, 1443 n.1,

237 U.S. App. D.C. 1 (D.C. Cir. 1984). But the Energy

Reorganization Act of 1974 disbanded that agency and

redistributed its authority, as relevant here, to the Nuclear

Regulatory Commission. Id. After Congress passed the

Atomic Energy Act, commercial production of nuclear

energy boomed.

7a

Appendix B

Commercial nuclear energy is produced through a

series of industrial processes, which include the mining

and processing of nuclear fuel, the use of the fuel in

a reactor, and the storage and ultimate disposal or

reprocessing of that fuel. BRC Report at 9. Once nuclear

fuel has been used in a reactor for about four to six years,

it can no longer produce energy and is considered used

or spent. Id. at 10. That spent fuel is removed from the

reactor. Id.

Spent nuclear fuel is “fuel that has been withdrawn

from a nuclear reactor follow ing irradiation, the

constituent elements of which have not been separated

by reprocessing.” 42 U.S.C. § 10101(23). It’s “intensely

radioactive” and “must be carefully stored.” Pac. Gas &

Elec. Co., 461 U.S. at 195. The spent fuel is first placed in

wet pool storage for cooling, where it remains for at least

five years, but may remain for decades. BRC Report at 11.

Once the spent nuclear fuel has cooled sufficiently in wet

storage, it’s generally transferred to dry cask storage. Id.

At first, there was little concern regarding storage for

spent fuel. See BRC Report at 19-20; Idaho v. DOE, 945

F.2d 295, 298-99 (9th Cir. 1991). There was a widespread

belief within the commercial nuclear energy industry that

spent fuel would be reprocessed. Idaho, 945 F.2d 295, 29899 (9th Cir. 1991). But the private reprocessing industry

collapsed in the 1970s, id., and growing concerns led

President Ford to issue a directive deferring commercial

reprocessing and recycling, which President Carter later

extended. BRC Report at 20. Although President Reagan

reversed that policy, “for a variety of reasons, including

costs, commercial reprocessing has never resumed.” Id.

8a

Appendix B

After years of accumulating spent nuclear fuel in

nuclear power plants throughout the country, see 42 U.S.C.

§ 10131(a)(3), Congress enacted the Nuclear Waste Policy

Act in 1982. That Act sought to “devise a permanent

solution to the problems of civilian radioactive waste

disposal.” Id. It tasked the Department of Energy with

establishing “a repository deep underground within a rock

formation where the waste would be placed, permanently

stored, and isolated from human contact.” Nat’l Ass’ of

Regul. Util. Comm’rs v. DOE, 680 F.3d 819, 821, 401 U.S.

App. D.C. 15 (D.C. Cir. 2012). Yucca Mountain in Nevada

was chosen as the only suitable site for the repository.

See 42 U.S.C. § 10172. The decision drew widespread

opposition in Nevada. BRC Report at 22.

Decades of delay ensued. Despite a Congressional

mandate that the Department of Energy start accepting

waste from the States by January 31, 1998, see 42 U.S.C.

§ 10222(a)(5)(B), “by the mid-1990s, the Department

of Energy made clear that it could not meet the 1998

deadline, and it came and went without the federal

government accepting any waste.” Texas v. U.S., 891 F.3d

553, 555-56 (5th Cir. 2018).

In 2008, the Department of Energy finally submitted

its license application for the Yucca Mountain repository

to the Commission. In re Aiken Cnty., 725 F.3d 755, 258

(D.C. Cir. 2013). But the Commission “shut down its

review and consideration” of the application. Id. By its own

admission, the Commission had no intention of reviewing

the application, id., even though the Nuclear Waste Policy

Act mandates a decision be made within three years of

submission. See 42 U.S.C. § 10134(d).

9a

Appendix B

In light of the delays and controversy, the Obama

Administration decided to halt the work on the Yucca

Mountain repository. BRC Report at vi. The Obama

Administration instead for med the Blue Ribbon

Commission on A merica’s Nuclear Future, which

concluded that a consent-based approach to siting nuclear

waste storage facilities would be preferred to the Yucca

Mountain policy. See id. at vii—x.

Spent nuclear fuel continues to accumulate at reactor

sites across the country. Some estimates suggest the

U.S. inventory of spent nuclear fuel may exceed 200,000

metric tons by 2050. BRC Report at 14. The commercial

nuclear power industry as a whole is estimated to generate

between 2,000 and 2,400 metric tons of spent nuclear fuel

each year. Id. And there are thousands of metric tons of

spent fuel in various sites where commercial reactors no

longer operate. Id.

B.

After the Blue Ribbon Commission embraced a

consent-based approach for siting nuclear waste storage

facilities, the governments of Texas and New Mexico

expressed support for establishing facilities within the

states. Then-Governors Rick Perry of Texas and Susana

Martinez of New Mexico wrote letters supporting the

establishment of facilities within their respective states.

And Andrews County—a rural community located near

the Texas-New Mexico border—passed a resolution in

support of siting a spent nuclear fuel facility there.

10a

Appendix B

Based in part on these expressions of support, Waste

Control Specialists, LLC applied to the Commission for a

license to operate a consolidated interim storage facility

for high-level spent nuclear fuel in Andrews County.

Andrews County is located within the Permian Basin,

one of the country’s largest oil basins and a top global oil

producer.

The Commission began its environmental review of

the proposed facility in accordance with the National

Environmental Policy Act. See 42 U.S.C. § 4321 et seq.

But the application anticipated that the Department of

Energy would take title to the spent nuclear fuel. Some

stakeholders challenged the legality of that provision as

prohibited by the Nuclear Waste Policy Act. Waste Control

Specialists then asked the Commission to suspend its

review.

Approximately a year later, Interim Storage Partners,

LLC—a partnership between the original applicant,

Waste Control Specialists, and another company—asked

the Commission to resume its review of the now-revised

license application. In its summary report on the scoping

period, the Commission noted that it had received

comments expressing concerns that the facility would

become a de facto permanent disposal facility and that the

license would be illegal under existing regulations. The

Commission responded that such comments were outside

the scope of the environmental impact statement.

In December 2019, the Atomic Safety and Licensing

Board—the independent adjudicatory division of the

11a

Appendix B

Commission—terminated an adjudicatory proceeding

regarding the license application. Before the proceeding

was terminated, Fasken timely filed five contentions

alleging that the Commission violated the National

Environmental Policy Act and its own regulations. The

Board denied each one. The following month, Fasken

filed a motion to reopen the record along with a motion

to amend a previously filed contention. The Board denied

the motions.

The Commission published a draft environmental

impact statement in May 2020. The Commission received

approximately 2,527 unique comments on the draft

environmental impact statement, and many opposed the

facility. One comment was a letter from Texas Governor

Greg Abbott urging the Commission to deny the license

application because of the lack of a permanent repository

and the importance of the Permian Basin to the nation’s

energy security and economy. The Texas Commission

on Environmental Quality submitted a comment that

the licensing lacks public consent and doesn’t properly

account for the possibility that Texas would become the

permanent solution of spent nuclear fuel disposal if the

permanent repository isn’t developed by the expiration of

the facility’s 40-year license term.

Fasken also submitted various comments. Its

comments noted the uniqueness of the Permian Basin, the

danger of transporting spent nuclear fuel to the facility,

the lack of community consent, and the possibility that the

facility could become a de facto permanent facility. Based

on the draft environmental impact statement, Fasken

12a

Appendix B

also filed a second motion to reopen the adjudicatory

proceeding. The Board once again denied the request.

The Commission issued the final environmental impact

statement in July 2021. It recommended the license be

issued, and noted that concerns regarding Yucca Mountain

and the need for a permanent repository fell outside its

scope. In an appendix, the Commission responded to

timely comments, including those from Petitioners. The

Commission responded to concerns that the facility would

become a de facto permanent repository by noting the

application was only for a temporary facility.

The following September, the Texas Legislature

passed H.B. 7. The statute makes it illegal to “dispose of

or store high level radioactive waste” in Texas. Governor

Abbott sent a letter to the Commission with a copy of

H.B. 7. He reiterated that “the State of Texas has serious

concerns with the design of the proposed ISP facility and

with locating it in an area that is essential to the country’s

energy security.” The next day, Fasken submitted an

environmental analysis critiquing various aspects of the

final environmental impact statement.

A few days later, the Commission issued the license.

Texas and Fasken have now petitioned this court

for review of the license. Texas asks that the license be

set aside. And Fasken asks that we suspend all further

activities on the facility and remand to the Commission for

a hard look analysis. While this case was pending before

this court, Fasken and others who sought but were denied

13a

Appendix B

intervention in the agency adjudication had a petition for

review pending before the D.C. Circuit appealing the

denials of their intervention. See Don’t Waste Michigan

v. NRC, 2023 U.S. App. LEXIS 2022, 2023 WL 395030

(Jan. 25, 2023). The petition was denied in January 2023.

2023 U.S. App. LEXIS 2022, [WL] at *1. Interim Storage

Partners, LLC intervened in this case to represent its

interests.

II.

We beg in w ith jur isdiction. The Commission

challenges this court’s jurisdiction to hear the petitions

for review for lack of both constitutional standing and

statutory standing. We consider each argument in turn

and find neither succeeds.

A.

As a preliminary matter, the Commission suggests

that Petitioners forfeited constitutional standing by failing

to argue it in their opening briefs. We disagree.

Neither Petitioner argued constitutional standing

beyond their general jurisdictional statements. Generally,

a petitioner is required “to present specific facts supporting

standing through citations to the administrative record or

affidavits or other evidence attached to its opening brief,

unless standing is self-evident.” Sierra Club v. EPA, 793

F.3d 656, 662 (6th Cir. 2015) (emphasis added, quotation

omitted). A petitioner may reasonably believe standing to

be self-evident when “nothing in the record alerted [the]

14a

Appendix B

petitioners to the possibility that their standing would be

challenged.” Am. Libr. Ass’n v. FCC, 401 F.3d 489, 492, 365

U.S. App. D.C. 207 (D.C. Cir. 2005). That’s the case here.

From the earliest stages of this proceeding, the

Commission has challenged jurisdiction on statutory

standing grounds only. It twice moved to dismiss, but

neither motion challenged constitutional standing.

Accordingly, Petitioners could reasonably assume it was

self-evident. Cf. Ctr. for Biological Diversity v. EPA, 937

F.3d 533, 542 n.4 (5th Cir. 2019) (“overlook[ing] Petitioners’

decision to include only a cursory discussion of standing

because . . . they had a good-faith (though mistaken)

belief that standing would be both undisputed and easy

to resolve”). And—once constitutional standing was

challenged—both Petitioners provided well-developed

legal arguments with citations to the record and evidence

to show their standing. Petitioners haven’t forfeited

constitutional standing.

The “irreducible constitutional minimum” of standing

requires that Petitioners “must have (1) suffered an injury

in fact, (2) that is fairly traceable to the challenged conduct

of the defendant, and (3) that is likely to be redressed by

a favorable judicial decision.” Spokeo, Inc. v. Robins, 578

U.S. 330, 338, 136 S. Ct. 1540, 194 L. Ed. 2d 635 (2016). The

causation elements of the constitutional standing analysis

are easily met: Petitioners’ alleged injuries directly result

from the issuance of the license (traceability), and an order

from this court could vacate the license (redressability).

So only injury in fact is at issue.

15a

Appendix B

The Commission argues that the licensing and eventual

operation of the storage facility doesn’t injure either Texas

or Fasken. We disagree. Because “the presence of one

party with standing is sufficient to satisfy Article III’s

case-or-controversy requirement,” we may proceed even

if only one of the Petitioners has standing. Rumsfeld v.

FAIR, 547 U.S. 47, 52 n.2, 126 S. Ct. 1297, 164 L. Ed. 2d

156 (2006). But here both Petitioners successfully assert

an injury resulting from the license.

Texas meets the injury-in-fact requirement because

the license preempts state law. Texas has “a sovereign

interest in the power to create and enforce a legal code.”

Tex. Off. of Pub. Util. Counsel v. FCC, 183 F.3d 393, 449

(5th Cir. 1999) (quotation omitted) (holding that Texas has

standing to challenge the FCC’s assertion of authority

over an aspect of telecommunications regulation that

the State believed it controlled). And we have held that

the preemption of an existing state law can constitute

an injury. Texas v. United States, 787 F.3d 733, 749

(5th Cir. 2015). “A state has standing based on a conflict

between federal and state law if the state statute at issue

regulates behavior or provides for the administration of a

state program, but not if it simply purports to immunize

state citizens from federal law.” Id. (cleaned up). Here

the issuance of the license and resulting operation of the

facility directly conflicts with H.B. 7.

The Texas Legislature has enacted legislation that

prevents the storage of high-level radioactive waste,

including spent nuclear fuel, within the State except at

currently or formerly operating nuclear power reactors.

The legislation also amends Texas statutes to add that

16a

Appendix B

“a person, including the compact waste disposal facility

license holder, may not dispose of or store high level

radioactive waste in this state.” Tex. Health & Safety

Code § 401.072. Although a non-binding, declaratory

state statute would not be enough to confer standing,

here there’s an enforceability conflict between the license

and operation of the facility, which authorizes storage of

high-level radioactive waste in Texas, and H.B. 7, which

proscribes such storage. Cf. Virginia v. Sebelius, 656

F.3d 253, 270 (4th Cir. 2011) (a state statute that is merely

a “non-binding declaration [and] does not create any

genuine conflict . . . creates no sovereign interest capable

of producing injury-infact”). That’s enough for Texas to

assert an injury.

Fasken also has standing based on its proximity

to radioactive materials. To establish injury in an

environmental case, there’s a “geog raphic-nexus

requirement.” Biological Diversity, 937 F.3d at 538. “The

Supreme Court has ruled that geographic remoteness

forecloses a finding of injury when no further facts have

been brought forward showing that the impact in those

distant places will in some fashion be reflected where the

plaintiffs are.” Id. (cleaned up). See also id. at 540 (“when

a person visits an area for aesthetic purposes, pollution

interfering with his aesthetic enjoyment may cause an

injury in fact,” if “the aesthetic experience was actually

offensive to the plaintiff”). Fasken has provided evidence

of its members’ geographic proximity to the facility. Some

of Fasken’s members own land within four miles of the

facility, draw water from wells beneath the facility, drive

within a mile of the facility, use rail lines the facility

would use, and travel on highways within a few hundred

17a

Appendix B

feet of the rail lines that transport spent nuclear fuel to

the facility. In the context of radioactive materials, such

proximity is sufficient to establish injury. See Duke Power

Co. v. Caroline Env’t Study Grp., Inc., 438 U.S. 59, 74, 98

S. Ct. 2620, 57 L. Ed. 2d 595 (1978) (“[T]he emission of

non-natural radiation into appellees’ environment would

also seem a direct and present injury.”). See also Nuclear

Energy Inst., Inc. v. EPA, 373 F.3d 1251, 1266, 362 U.S.

App. D.C. 204 (D.C. Cir. 2004) (finding a petitioner living

18 miles from Yucca Mountain had standing); Kelley v.

Selin, 42 F.3d 1501, 1509 (6th Cir. 1995) (finding petitioners

who “own[] land in close proximity to . . . the proposed

site for spent fuel storage” had “alleged sufficient injury

to establish standing”).

PBLRO also has associational standing. “Associational

standing is a three-part test: (1) the association’s members

would independently meet the Article III standing

requirements; (2) the interests the association seeks to

protect are germane to the purpose of the organization;

and (3) neither the claim asserted, nor the relief requested

requires participation of individual members.” Biological

Diversity, 937 F.3d at 536 (quoting Texas Democratic

Party v. Benkiser, 459 F.3d 582, 587 (5th Cir. 2006)).

Each of those elements is met. First, some of its members

have an injury because they live, work, or regularly

drive close the facility. And as we’ve already noted,

see supra, the causation elements are met. Next, “the

germaneness requirement is undemanding and requires

mere pertinence between the litigation at issue and the

organization’s purpose.” Ass’n of Am. Physicians &

Surgeons, Inc. v. Texas Med. Bd., 627 F.3d 547, 550 n.2

(5th Cir. 2010) (quotations omitted). This factor is easily

18a

Appendix B

met because PBLRO was created specifically to oppose

the facility. Last, there’s no reason to believe that PBLRO

is unable to represent its members’ interests without

their individual participation. See id. at 551-53 (noting

this prong usually isn’t met when the relief sought is

damages for individual members or the claim requires

fact-intensive-individual inquiry).

B.

Petitioners seeking to challenge a final order from the

Commission also need standing under the Administrative

Orders Review Act, generally known as the Hobbs Act.

See Reytblatt v. NRC, 105 F.3d 715, 720, 323 U.S. App. D.C.

101 (D.C. Cir. 1997) (“[T]he Hobbs Act requires (1) ‘party’

status (i.e., that petitioners participated in the proceeding

before the agency), and (2) aggrievement (i.e., that they

meet the requirements of constitutional and prudential

standing).”) (citation omitted).

The Hobbs Act vests “exclusive jurisdiction to enjoin,

set aside, suspend (in whole or in part), or determine the

validity of . . . final orders of the” Commission on the

federal courts of appeals. 28 U.S.C. § 2342. (The Act

actually refers to the Atomic Energy Commission. But the

Energy Reorganization Act of 1974 abolished that agency

and transferred its licensing and related regulatory

functions to the Nuclear Regulatory Commission. See 42

U.S.C. § 5841(a), (f).)

Under the Act, “[a]ny party aggrieved by the final

order may . . . file a petition to review the order in the

court of appeals wherein venue lies.” 28 U.S.C. § 2344.

19a

Appendix B

Courts “have consistently held that the phrase ‘party

aggrieved’ requires that petitioners have been parties to

the underlying agency proceedings, not simply parties to

the present suit.” ACA Int’l v. FCC, 885 F.3d 687, 711, 435

U.S. App. D.C. 1 (D.C. Cir. 2018). See also Am. Trucking

Ass’ns v. ICC, 673 F.2d 82, 84 (5th Cir. 1982) (per curiam)

(“The word ‘party’ is used in a definite sense in the [Hobbs

Act], and limits the right to appeal to those who actually

participated in the agency proceeding.”). The Commission

argues that neither Texas nor Fasken has standing under

the Hobbs Act because neither is a “party aggrieved.”

“To be an aggrieved party, one must have participated

in the agency proceeding under review.” Wales Transp.,

Inc. v. ICC, 728 F.2d 774, 776 n.1 (5th Cir. 1984). Here,

both Petitioners participated in the agency proceeding—

Texas commented on its opposition of the issuance of

the license and Fasken attempted to intervene and filed

contentions. But according to the Commission, neither

form of participation is sufficient to confer party status

under the Hobbs Act.

The Commission argues that Texas doesn’t have

party status because “participating in the appropriate

and available administrative procedures is the statutorily

prescribed prerequisite to invocation of the Court’s

jurisdiction,” and submitting comments doesn’t accord

with the degree of formality of the proceedings in this

license adjudication. 2

2. In the alternative, the Commission argues that “even if this

Court were to determine that dismissal of [Texas’s] Petition for

Review is not required as a matter of jurisdiction, the same result

20a

Appendix B

The Commission takes a different approach with

Fasken. It argues that, as a party denied intervention,

Fasken may only challenge the order deny ing it

is nonetheless required as a matter of non-jurisdictional, mandatory

exhaustion.” Not so. The Commission relies on Fleming v. USDA,

which held that “even nonjurisdictional exhaustion requirements

. . . forbid judges from excusing non-exhaustion” and that “if the

government raises [such an] exhaustion requirement, the court must

enforce it.” 987 F.3d 1093, 1099, 451 U.S. App. D.C. 49 (D.C. Cir.

2021). But neither the Hobbs Act nor the Atomic Energy Act impose

a mandatory exhaustion requirement. The Commission’s argument

implicitly equates the exhaustion requirements in the Horse

Protection Act and the Prison Litigation Reform Act—both of which

are discussed in Fleming—to the Hobbs Act and Atomic Energy

Act. These statutes aren’t comparable. Both the Horse Protection

Act and the Prison Litigation Reform Act have explicit exhaustion

requirements. See 7 U.S.C. § 6912(e) (“[A] person shall exhaust all

administrative appeal procedures established by the Secretary [of

Agriculture] or required by law before the person may bring an

action in a court of competent jurisdiction.”); 42 U.S.C. § 1997e(a)

(“No action shall be brought with respect to prison conditions under

section 1983 of this title, or any other Federal law, by a prisoner

confined in any jail, prison, or other correctional facility until such

an administrative remedies as are available are exhausted.”). But

neither the Hobbs Act nor the Atomic Energy Act do. See 28 U.S.C.

§ 2344 (no exhaustion requirement); 42 U.S.C. § 2239(b) (same).

It’s also worth noting that caselaw suggests that so long as the

petitioner is a “party aggrieved” and the basis for the challenge

was brought before the agency by some party— even if not the by

the petitioner—that’s enough for the case to move forward. See

Reytblatt, 105 F.3d at 720-21; Cellnet Commc’n, Inc. v. FCC, 965

F.2d 1106, 1109, 296 U.S. App. D.C. 144 (D.C. Cir. 1992). It’d make

little sense to interpret the Hobbs Act as imposing an exhaustion

requirement while allowing a petitioner to bring a claim it did not

itself bring before the agency.

21a

Appendix B

intervention. From the Commission’s perspective, if a

putative intervenor has failed to obtain party status, it

can’t later seek review of the final judgment on the merits.

The plain text of the Hobbs Act merely requires that a

petitioner seeking review of an agency action be a “party

aggrieved.” 28 U.S.C. § 2344. The text makes no distinction

between different kinds of agency proceedings. See Gage

v. AEC, 479 F.2d 1214, 1218, 156 U.S. App. D.C. 231 (D.C.

Cir. 1973). Nor does it suggest that a petitioner who went

through the procedures to intervene in an adjudication

can’t be a party aggrieved. In fact, it’s clear that the

function of the “party aggrieved” status requirement is

to ensure that the agency had the opportunity to consider

the issue that petitioners are concerned with. See, e.g.,

id. at 1219 (“The ‘party’ status requirement operates to

preclude direct appellate court review without a record

which at least resulted from the fact-finder’s focus on

the alternative regulatory provisions which petitioners

propose.”) (emphases omitted).

In sum, the plain text of the Hobbs Act requires only

that a petitioner have participated—in some way—in the

agency proceedings, which Texas did through comments

and Fasken did by seeking intervention and filing

contentions. But caselaw suggests that’s not enough.

Precedent from other circuits suggests that neither

Texas nor Fasken are parties aggrieved for Hobbs

Act purposes. The D.C. Circuit has read the Hobbs

Act to contemplate participation in “the appropriate

and available administrative procedures.” Id. at 1217.

And it has interpreted this to mean that the “degree of

22a

Appendix B

participation necessary to achieve party status varies

according to the formality with which the proceeding

was conducted.” Water Transp. Ass’n v. ICC, 819 F.2d

1189, 1192, 260 U.S. App. D.C. 390 (D.C. Cir. 1987). But

see ACA Int’l, 885 F.3d at 711-712 (noting that in at least

some limited circumstances commenting may be enough

in certain non-rulemaking proceedings). The D.C. Circuit

and at least one other circuit apply this heightened

participation requirement. See Ohio Nuclear-Free

Network v. NRC, 53 F.4th 236, 239, 459 U.S. App. D.C.

266 (D.C. Cir. 2022); Alabama Power Co. v. ICC, 852 F.2d

1361, 1368, 271 U.S. App. D.C. 394 (D.C. Cir. 1988). See also

State ex rel. Balderas v. NRC, 59 F.4th 1112, 1117 (10th

Cir. 2023). The D.C. Circuit has also said that, when an

agency requires intervention, those who sought but were

denied intervention lack standing to seek judicial review.

Water Transp. Ass’n, 819 F.2d at 1192. See also NRDC v.

NRC, 823 F.3d 641, 643, 422 U.S. App. D.C. 325 (D.C. Cir.

2016) (“To challenge the Commission’s grant of a license

renewal . . . a party must have successfully intervened in

the proceeding by submitting adequate contentions under

[the Commission’s regulations].”).

The D.C. Circuit embraces readings of the Hobbs Act

that impose an extra-textual gloss by requiring a degree

of participation not contemplated in the plain text of the

statute. We think the fairest reading of the Hobbs Act

doesn’t impose such additional requirements. But we

ultimately don’t need to resolve that tension, because the

Fifth Circuit recognizes an exception to the Hobbs Act

party-aggrieved status requirement that’s dispositive of

this issue here.

23a

Appendix B

This circuit recognizes an ultra vires exception to

the party-aggrieved status requirement. In American

Trucking Associations, Inc. v. ICC, this court noted

“two rare instances” where a “person may appeal an

agency action even if not a party to the original agency

proceeding”—(1) where “the agency action is attacked

as exceeding [its] power” and (2) where the person

“challenges the constitutionality of the statute conferring

authority on the agency.” 673 F.2d at 85 n.4 (quotation

omitted). 3

3. The Commission’s various arguments that this exception

isn’t applicable are unavailing. It’s true that we’ve recognized the

exception is “exceedingly narrow.” Merchants Fast Motor Lines, Inc.

v. ICC, 5 F.3d 911, 922 (5th Cir. 1993). And it’s also true that other

circuits have refused to adopt it. See Balderas, 59 F.4th at 1123-24;

Nat’l Ass’n of State Util. Consumer Advocs. v. FCC, 457 F.3d 1238,

1250 (11th Cir. 2006); Erie-Niagara Rail Steering Comm. v. STB,

167 F.3d 111, 112-13 (2d Cir. 1999); In re Chicago, Milwakee, St. Paul

& Pac. R.R., 799 F.2d 317, 334-35 (7th Cir. 1986). But the exception

remains good law in this circuit. Neither the Commission nor the

court have identified any case overturning the exception. And to the

extent that the Commission claims the exception was mere dicta in

American Trucking, that argument fails because we’ve since applied

the exception in Wales Transportation, Inc. v. ICC, 728 F.2d 774,

776 n.1 (5th Cir. 1984). Under our circuit’s rule of orderliness, we

are bound to follow American Trucking and Wales Transportation

because they haven’t been overturned by the en banc court. The

Commission is also wrong in suggesting the exception is limited

to challenges of ICC orders. While it’s true that both American

Trucking and Wales Transportation involved challenges to ICC

orders, neither case limits the exception’s application to the ICC. See

Am. Trucking, 673 F.2d at 85 n.4 (referring to agency proceedings,

not ICC proceedings); Wales Transp., 728 F.2d at 776 n.1 (same).

24a

Appendix B

This exception only allows us to reach those portions

of the Petitioners’ challenges that argue the Commission

acted beyond its statutory authority. See Wales Transp.,

728 F.2d at 776 n.1 (allowing petitioner to proceed despite

not having participated in the agency proceeding on only

those claims that challenged the agency’s authority under

the statute). Accordingly, we must consider which, if any,

of the Petitioners’ challenges fall within that category.

Texas makes three merits arguments: (1) the

Commission lacks the statutory authority to license the

facility; (2) the license issuance violated the Administrative

Procedure Act; and (3) the Commission violated the

National Environmental Policy Act by failing to assess the

risks of a potential terrorist attack. The first argument

falls within the exception. It attacks the Commission for

licensing a facility without the authority to do so under

the Atomic Energy Act, and in conflict with the Nuclear

Waste Policy Act.

Fasken makes four merits arguments: (1) the

Commission violated the National Environmental Policy

Act and Administrative Procedure Act by allowing

a licensing condition that violates the Nuclear Waste

Policy Act; (2) the Commission’s assumptions about

when the permanent repository will be operational are

arbitrary and capricious; (3) the Commission adopted

an unreasonably narrow purpose statement; and (4) the

Commission violated the National Environmental Policy

Act and Administrative Procedure Act by accepting the

applicant’s unreasonable site selection. The first of these

challenges falls within the exception. Fasken’s argument

25a

Appendix B

centers on the contention that the Commission acted

beyond its statutory authority by issuing a license with

a condition expressly prohibited by the Nuclear Waste

Policy Act.

III.

The Commission has no statutory authority to issue

the license. The Atomic Energy Act doesn’t authorize

the Commission to license a private, away-from-reactor

storage facility for spent nuclear fuel. And issuing such

a license contradicts Congressional policy expressed in

the Nuclear Waste Policy Act. This understanding aligns

with the historical context surrounding the development

of these statutes.

A.

Under the Atomic Energy Act, the Commission retains

jurisdiction over nuclear plant licensing and regulation.

See 42 U.S.C. § 5842. It has authority to regulate the

construction and operation of nuclear power plants. See

42 U.S.C. §§ 2011-2297h-13. See also Union of Concerned

Scientists, 735 F.2d at 1438-39 (summarizing the two-step

licensing procedure for nuclear power plant operation).

The Act also confers on the Commission the authority

to issue licenses for the possession of “special nuclear

material,” see 42 U.S.C. § 2073, “source material,” see

id. § 2093, and “byproduct material,” see id. § 2111. See

also 42 U.S.C. §§ 2014(aa), (z), (e) (defining each term,

respectively). Special nuclear material, source material,

26a

Appendix B

and byproduct material are constituent materials of spent

nuclear fuel. See Bullcreek v. NRC, 359 F.3d 536, 538,

360 U.S. App. D.C. 184 (D.C. Cir. 2004). The Commission

argues that, because it has authority to issue licenses for

the possession of these constituent materials, that means

it has broad authority to license storage facilities for spent

nuclear fuel.

But this ignores the fact that the Act authorizes

the Commission to issue such licenses only for certain

enumerated purposes—none of which encompass storage

or disposal of material as radioactive as spent nuclear fuel.

Sections 2073 and 2093 specify that licenses may be

issued for various types of research and development,

see 42 U.S.C. §§ 2073(a)(1)-(a)(2), 2093(a)(1)-(a)(2). It also

permits such other uses that the Commission either

“determines to be appropriate to carry out the purposes

of th[e] chapter,” id. § 2073(a)(4), or “approves . . . as an

aid to science and industry,” id. § 2093(a)(4). Principles of

statutory interpretation require these grants be read in

light of the other, more specific purposes listed—namely

for certain types of research and development. Cf. U.S.

v. Jicarilla Apache Nation, 564 U.S. 162, 185, 131 S. Ct.

2313, 180 L. Ed. 2d 187 (2011) (“When Congress provides

specific statutory obligations, we will not read a ‘catchall’

provision to impose general obligations that would include

those specifically enumerated.”).

Both these sections also allow the agency to issue

licenses “for use under a license issued pursuant to section

2133 of th[e] title.” Id. 42 U.S.C. §§ 2073(a)(3), 2093(a)(3)

27a

Appendix B

(same). Section 2133 details the Commission’s authority

to issue licenses for “utilization or production facilities

for industrial or commercial purposes.” Id. § 2133(a).

Utilization and production have specific definitions under

the statute. See id. §§ 2014 (cc) (defining utilization

facilities); 2014(v) (defining production facilities). And

the definitions of utilization and production facilities are

about nuclear reactors and fuel fabrication or enrichment

facilities—not storage or disposal, as the Commission

admits in its briefing. See id. Neither § 2073 nor § 2093

confers a broad grant of authority to issue licenses for any

type of possession of special nuclear material or source

material.

The same is true for § 2111. That section authorizes

the Commission “to issue general or specific licenses to

applicants seeking to use byproduct material for research

or development purposes, for medical therapy, industrial

uses, agricultural uses, or such other useful applications

as may be developed.” Id. § 2111(a). It also specifies

conditions under which certain types of byproduct

material may be disposed. Id. § 2111(b). And the types of

byproduct material covered by § 2111(b) emit radiation for

significantly less time than spent nuclear fuel.

That section cross-references the definition of

byproduct materials in § 2014(e)(3)-(4), which refers to

radium-226 and other material that “would pose a threat

similar to the threat posed by . . . radium-226 to the

public health and safety.” That’s important because some

of the isotopes in spent nuclear fuel have much longer

half-lives than radium-226. The “intensity of radiation

28a

Appendix B

from radioactive materials decreases over time” and

the “time required for the intensity to decrease by onehalf is referred to as the ‘half-life.’” NRC, Frequently

A sked Questions (FAQs) Regarding Radium-226 § A.1,

https://scp.nrc.gov/narmtoolbox/radium%20faq102008.

pdf. Radium-226 has a half-life of 1600 years. Id. Spent

nuclear fuel, on the other hand, is composed of a variety of

radioactive isotopes of elements produced in the nuclear

fission process. NRC, Radioactive Waste Backgrounder

1, https://www.nrc.gov/docs/ML0501/ML050110277.pdf.

Some of these isotopes—strontium-90 and cesium-137—

have half-lives of about 30 years. But others “take much

longer to decay.” Id. One of these isotopes is plutonium-239,

which “has a half-life of 24,000 years”—fifteen times that

of radium-226. Id. There’s no plausible argument that

spent nuclear fuel, which contains radioactive isotopes

with half-lives much longer than radium-226, is the

type radioactive material contemplated in the disposal

provision in § 2111(b).

So these provisions do not support the Commission’s

claim of authority. In response, the Commission and

Interim Storage Partners, LLC point to two cases from

sister circuits. Both are unpersuasive.

In Bullcreek v. NRC, the D.C. Circuit denied petitions

for review of the Commission’s Rulemaking Order and

held that the Nuclear Waste Policy Act did “not repeal or

supersede the [Commission]’s authority under the Atomic

Energy Act to license private away-from-reactor storage

facilities.” 359 F.3d at 537-38. The D.C. Circuit essentially

assumed that the Atomic Energy Act had granted the

29a

Appendix B

Commission authority to license away-from-reactor

storage facilities, despite explicitly recognizing that the

Act “does not specifically refer to the storage or disposal

of spent nuclear fuel.” Id. at 538. Rather than focus on

the text of the statute, it merely noted that “it has long

been recognized that the [Atomic Energy Act] confers

on the [Commission] authority to license and regulate

the storage and disposal of such fuel.” Id. But none of the

cases the D.C. Circuit cited provide a textual analysis of

the Atomic Energy Act and whether it allows away-fromreactor spent nuclear fuel storage. Each of those cases

dealt with separate questions of preemption and the role

of states in this scheme. See generally Pac. Gas. & Elec.

v. State Energy Res. Conservation & Dev. Comm’n, 461

U.S. 190, 103 S. Ct. 1713, 75 L. Ed. 2d 752 (1983); Jersey

Cent. Power & Light Co. v. Twp. of Lacey, 772 F.2d 1103

(3d Cir. 1985); Illinois v. Gen. Elec. Co., 683 F.2d 206 (7th

Cir. 1982). They are irrelevant to the question before us.

So the D.C. Circuit provided no textual basis for its

assumption that the statute authorized the Commission to

issue such licenses. See id. (discussing the Atomic Energy

Act). Bullcreek may be correct that the Nuclear Waste

Policy Act didn’t repeal portions of the Atomic Energy

Act since “repeals by implication are not favored,” but it

doesn’t actually address what authority the Commission

had under the Atomic Energy Act. Morton v. Mancari,

417 U.S. 535, 549, 94 S. Ct. 2474, 41 L. Ed. 2d 290 (1974).

The other case the Commission cites—Skull Valley

Band of Goshute Indians v. Nielson, 376 F.3d 1223

(10th Cir. 2004)—is just as unhelpful. It merely relies

30a

Appendix B

on Bullcreek to “not revisit the issues surrounding the

[Commission]’s authority to license away-from-reactor

[spent nuclear fuel] storage facilities.” Skull Valley, 376

F.3d at 1232. It too assumes the Commission’s authority

without analyzing the statute.

B.

Moreover, the Commission’s argument cannot be

reconciled with the Nuclear Waste Policy Act.

Spent nuclear fuel wasn’t a concern in the 1940s

and 1950s when the Atomic Energy Act was passed

and amended. “Prior to the late 1970’s, private utilities

operating nuclear reactors were largely unconcerned with

the storage of spent nuclear fuel.” Idaho, 945 F.2d at 298.

“It was accepted that spent fuel would be reprocessed.”

Id. “In the mid-70’s, however, the private reprocessing

industry collapsed for both economic and regulatory

reasons.” Id. “As a consequence, the nuclear industry was

confronted with an unanticipated accumulation of spent

nuclear fuel, inadequate private facilities for the storage

of the spent fuel, and no long term plans for managing

nuclear waste.” Id. See also BRC Report at 20 (noting

these problems and describing passage of the Act as

“mark[ing] the beginning of a new chapter in U.S. efforts

to deal with the nuclear waste issue”). This led Congress

to pass the Nuclear Waste Policy Act in 1982.

The Nuclear Waste Policy Act provides a comprehensive

scheme to address the accumulation of nuclear waste.

Congress recognized that “Federal efforts during the

31a

Appendix B

[prior] 30 years to devise a permanent solution to the

problems of civilian radioactive waste disposal ha[d] not

been adequate” and that “State and public participation

in the planning and development of repositories is

essential in order to promote public confidence in the

safety of disposal of such waste and spent fuel.” 42 U.S.C.

§ 10131(a)(3), (6). “The Act made the federal government

responsible for permanently disposing of spent nuclear

fuel and high-level radioactive waste produced by civilian

nuclear power generation and defense activities.” Nat’l

Ass’n of Regul. Util. Comm’rs v. DOE, 680 F.3d 819,

821, 401 U.S. App. D.C. 15 (D.C. Cir. 2012). See also 42

U.S.C. § 10131(a)(4) (“[T]he Federal Government has the

responsibility to provide for the permanent disposal of

high-level radioactive waste and such spent nuclear fuel

as may be disposed of in order to protect the public health

and safety and the environment.”).

The Act also tasked the Department of Energy with

establishing “a repository deep underground within a rock

formation where the waste would be placed, permanently

stored, and isolated from human contact.” Nat’l Ass’n of

Regul. Util Comm’rs, 680 F.3d at 821. See also 42 U.S.C.

§§ 10133-34 (tasking the Energy Secretary with site

characterization and public hearing duties related to the

Yucca Mountain site selection). Yucca Mountain was chosen

as the only suitable site for the repository when the Act

was amended in 1987. See 42 U.S.C. § 10172 (selection of

Yucca Mountain site). But the project stalled, even though

the Nuclear Waste Policy Act “is obviously designed to

prevent the Department [of Energy] from delaying the

construction of Yucca Mountain as the permanent facility

32a

Appendix B

while using temporary facilities.” Nat’l Ass’n of Regul.

Util. Comm’rs v. DOE, 736 F.3d 517, 519, 407 U.S. App.

D.C. 197 (D.C. Cir. 2013) (citing 42 U.S.C. § 10168(d)(1)).

In addition to the establishment of the permanent

repository, see 42 U.S.C. §§ 10131-10145, the Nuclear

Waste Policy Act also established other measures to deal

with spent nuclear fuel.4

One is temporary storage. See id. §§ 10151-10157. The

Act places “primary responsibility for providing interim

storage of spent nuclear fuel” on “the persons owning and

operating civilian nuclear power reactors.” Id. § 10151(a)(1).

It tasks the Commission and the Secretary of Energy

to “take such actions as . . . necessary to encourage and

expedite the effective use of available storage, and the

necessary additional storage, at the site of each civilian

nuclear power reactor.” Id. § 10152 (emphasis added). See

also id. § 10153 (“The establishment of such procedures

shall not preclude the licensing . . . of any technology for

the storage of civilian spent nuclear fuel at the site of

any civilian nuclear power reactor.”) (emphasis added). It

further tasks the Secretary of Energy with “provid[ing] . . .

capacity for the storage of spent nuclear fuel from civilian

nuclear power reactors.” Id. § 10155(a)(1). Moreover,

the Act provides that “the Federal Government has the

4. All these measures are subject to the proviso in 42 U.S.C.

§ 10155(h), which states that “nothing in this chapter shall be

construed to encourage, authorize, or require the private or Federal

use, purchase, lease, or other acquisition of any storage facility

located away from the site of any civilian nuclear power reactor and

not owned by the Federal Government on” the date of enactment.

33a

Appendix B

responsibility to provide . . . not more than 1,900 metric

tons of capacity for interim storage of spent nuclear fuel

for civilian nuclear power reactors that cannot reasonably

provide adequate storage capacity” where it is necessary

for the “continued, orderly operation of such reactors.”

Id. § 10151(a)(3). Moreover, the Act provides that “the

Federal Government has the responsibility to provide . . .

not more than 1,900 metric tons of capacity for interim

storage of spent nuclear fuel for civilian nuclear power

reactors that cannot reasonably provide adequate storage

capacity” where it is necessary for the “continued, orderly

operation of such reactors.” Id. § 10151(a)(3). Here, the

license permits storage of at least 5,000 and as much as

40,000 metric tons of nuclear waste.

The other measure is monitored retrievable storage.

See id. § 10161-10169. See also id. § 10101(34) (defining

“monitored retrievable storage facility”). Under the

statute, “[t]he Secretary [of Energy] is authorized to

site, construct, and operate one monitored retrievable

storage facility subject to the conditions described [in

the relevant sections of statute].” Id. § 10162(b). And one

of those conditions is that “[a]ny license issued by the

Commission for a monitored retrievable storage facility

under [the statute] shall provide that . . . construction

of such facility may not begin until the Commission has

issued a license for the construction of a repository [i.e.,

Yucca Mountain].” Id. § 10168(d)(1).

Reading these provisions together makes clear that

the Nuclear Waste Policy Act creates a comprehensive

statutory scheme for addressing spent nuclear fuel

34a

Appendix B

accumulation. The scheme prioritizes construction of the

permanent repository and limits temporary storage to

private at-the-reactor storage or at federal sites. It plainly

contemplates that, until there’s a permanent repository,

spent nuclear fuel is to be stored onsite at-the-reactor or

in a federal facility.

In sum, the Atomic Energy Act doesn’t authorize

the Commission to license a private, away-from-reactor

storage facility for spent nuclear fuel. And the Nuclear

Waste Policy Act doesn’t permit it. Accordingly, we hold

that the Commission doesn’t have authority to issue the

license challenged here.

When read alongside each other, we find these statutes

unambiguous. And even if the statutes were ambiguous,

the Commission’s interpretation wouldn’t be entitled to

deference.

Last year, the Supreme Court directed that, “[w]here

the statute at issue is one that confers authority upon

an administrative agency, that inquiry must be shaped,

at least in some measure, by the nature of the question

presented—whether Congress in fact meant to confer the

power the agency has asserted” and whether there are

“reason[s] to hesitate before concluding that Congress

meant to confer such authority.” West Virginia v. EPA, 142

S. Ct. 2587, 2607-08, 213 L. Ed. 2d 896 (2022) (quotations

omitted) (adopting the major questions doctrine).

Disposal of nuclear waste is an issue of great “economic

and political significance.” Id. at 2608. What to do with the

35a

Appendix B

nation’s ever-growing accumulation of nuclear waste is a

major question that—as the history of the Yucca Mountain

repository shows—has been hotly politically contested

for over a half century. Congress itself has acknowledged

that “high-level radioactive waste and spent nuclear fuel

have become major subjects of public concern.” 42 U.S.C.

§ 10131(a)(7) (findings section of the Nuclear Waste Policy

Act). “A decision of such magnitude and consequence

rests with Congress itself, or an agency acting pursuant

to clear delegation from that representative body.” West

Virginia, 142 S. Ct. at 2616 (emphasis added). Here, there’s

no such clear delegation under the Atomic Energy Act.

And the Nuclear Waste Policy Act belies the Commission’s

arguments to the contrary.

***

We grant the petitions for review, vacate the license,

and deny the Commission’s motions to dismiss.

36a

AppendixOF

C REHEARING OF

APPENDIX C — DENIAL

THE UNITED STATES COURT OF APPEALS FOR

THE FIFTH CIRCUIT, FILED MARCH 14, 2024

UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT

No. 21-60743

STATE OF TEXAS; GREG ABBOTT, GOVERNOR

OF THE STATE OF TEXAS; TEXAS COMMISSION

ON ENVIRONMENTAL QUALITY; FASKEN LAND

AND MINERALS, LIMITED; PERMIAN BASIN

LAND AND ROYALTY OWNERS,

Petitioners,

versus

NUCLEAR REGULATORY COMMISSION;

UNITED STATES OF AMERICA,

Respondents.

March 14, 2024, Filed

Appeal from the Nuclear Regulatory

Commission. Agency No. 72-1050.

37a

Appendix C

ON PETITION FOR REHEARING EN BANC

Before Jones, Ho, and Wilson, Circuit Judges.

Per Curiam:

The court having been polled at the request of one of its

members, and a majority of the judges who are in regular

active service and not disqualified not having voted in favor

(Fed. R. A pp. P. 35, 36 and 5th Cir. R. 35), the petition for

rehearing en banc is DENIED.

In the en banc poll, seven judges voted in favor

of rehearing en banc (Stewart, Southwick, Graves,

Higginson, Willett, Douglas, and Ramirez), and nine voted

against rehearing en banc (Richman, Jones, Smith, Elrod,

Haynes, Ho, Duncan, Engelhardt, and Wilson).

Judge Oldham is recused and did not participate in

the poll.

38a

Appendix C

Edith H. Jones, Circuit Judge, joined by Smith, Elrod,

Ho, Engelhardt, and Wilson, Circuit Judges, concurring

in the denial of rehearing en banc:

The panel previously identified two bases of authority

to review the NRC’s proposed action to redirect the

storage of nuclear energy waste away from Yucca

Mountain, in conflict with federal law: these petitioners

are parties aggrieved, and the NRC has acted ultra vires.

The dissent challenges both grounds of jurisdiction. We

continue to adhere to our position that the judiciary has

not only the authority but the duty to review the NRC’s

actions, which may threaten significant environmental

damage in the Permian Basin, one of the largest fossil

fuel deposits in the world.

1.

“Party Aggrieved”

Who has the ability to secure judicial review of this

particular licensing decision? There’s no question of Article

III standing for the petitioners. Also, there’s no question

that Fasken (shorthand for petitioning mineral operators

and landowners neighboring the proposed storage site) is

“aggrieved.” Nor that the state of Texas, which submitted

comments and later passed a law prohibiting such storage,

is “aggrieved.” The argument is made that under Section

2344 of the Hobbs Act, “parties aggrieved” who may

seek judicial review means only those whom the agency

permitted to intervene in the licensing proceeding. But

here, Fasken’s multiple attempts formally to intervene

were repeatedly rebuffed by the agency. See Texas v. NRC

78 F.4th 827, 834. If this argument is accepted, in other

39a

Appendix C

words, the NRC controls the courthouse door through its

authority to determine who may be “parties” to licensing

proceedings. And the state of Texas, which didn’t formally

attempt to intervene but made its position plainly known

to NRC, has no access to judicial review at all.

The question of our jurisdiction is therefore bound

up with fundamental principles governing review of

agency decisions. Specifically, the courts default in our

duty to “say what the law is” (i.e., Marbury v Madison,

5 U.S. 137, 1 Cranch 137, 2 L. Ed. 60 (1803)) if we enable

the agency to be the unilateral “decider” of the statutory

term “party aggrieved.” Massachusetts v. NRC, 878 F.2d

1516, 1520 (1st Cir. 1989). Our duty is reinforced by the

oft-stated “strong presumption” that a statute should be

read in a way that accords with the “basic[] principle” that

agency actions are “subject to judicial review.” GuerreroLasparilla v. Barr, 140 S. Ct. 1062, 1069 (2020); Bowen

v. Mich. Acad. Of Family Physicians, 476 U.S. 667, 670,

106 S. Ct. 2133, 2135, 90 L. Ed. 2d 623 (1986) (noting “the

strong presumption that Congress intends judicial review

of administrative action”); Kirby Corp. v. Pena, 109 F.3d

258, 261 (5th Cir. 1997) (“There is a ‘strong presumption’

that Congress intends there to be judicial review of

administrative agency action, . . . and the government

bears a ‘heavy burden’ when arguing that Congress meant

to prohibit all judicial review”) (citations omitted)); Dart

v. United States, 848 F.2d 217, 221, 270 U.S. App. D.C. 160

(D.C. Cir. 1988) (“If the wording of a preclusion clause is

less than absolute, . . . [j]udicial review is favored when

an agency is charged with acting beyond its authority.”).

A holding that courts cannot decide who are aggrieved

parties according to the statutory language is not only

40a

Appendix C

contrary to these principles but also seems particularly

unlikely in a legal world where deference to agency

interpretations of law, e.g., in Auer and Chevron, is under

increasing scrutiny.

The contrary position of judicial abdication rests

on a provision of the Atomic Energy Act that allegedly

constitutes “the only process” by which the [NRC] could

make a “party”: “[T]he Commission shall grant a hearing

upon the request of any person who may be affected by

the proceeding, and shall admit any such person as

a party to such proceeding.” 42 U.S.C. § 2239(a)(1)(A)

(emphasis added). Given the breadth of NRC’s statutory

charge to allow “affected persons” to be made “parties,”

it seems paradoxical to resort to the Hobbs Act to disable

Fasken and Texas from judicial review by agency fiat.

More specifically, with respect to the NRC’s proffered

interpretation, there are two responses. First, the D.C.

Circuit has interpreted the term “parties aggrieved”

more broadly than simply those who were joined as formal

parties by the agency to administrative proceedings.

Second, to the extent a couple of courts have rigidly

used the term “parties” to mean only those formally

admitted in agency proceedings, those decisions are either

distinguishable or wrong.

With a couple of exceptions noted below, the term

“party aggrieved” for judicial review purposes has been

interpreted flexibly by the D.C. Circuit itself. Beginning

with Simmons v. ICC, 716 F.2d 40, 42, 230 U.S. App. D.C.

236 (D.C. Cir. 1983), then-judge Scalia laid the groundwork

for interpreting that phrase as he held that “party

aggrieved” means more than “person aggrieved” for

41a

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purposes of Administrative Procedure Act judicial review.1

5 U.S.C. § 702 (“A person suffering legal wrong because

of agency action, or adversely affected or aggrieved by

agency action within the meaning of a relevant statute, is

entitled to judicial review thereof.” (emphasis added)). We

don’t dispute that terminological distinction. But shortly

afterward, the D.C. Circuit held that “party aggrieved”

under the Hobbs Act must be interpreted flexibly in

light of the nature of the administrative proceeding.

Water Transp. Ass’n v. ICC, 819 F.2d 1189, 1192 (D.C.

Cir. 1987); see also ACA Int’l v. Fed. Communications

Comm’n, 885 F.3d 687, 711, 435 U.S. App. D.C. 1 (D.C.

Cir. 2018); Reyblatt v NRC, 105 F.3d 715, 720 (D.C. Cir.

1997) (submitting comments in a rulemaking proceeding

confers “party” status for Hobbs Act purposes). The court

held in Water Transp. that the “degree of participation

necessary to achieve party status varies according to the

formality with which the proceeding was conducted.” 819

F.2d at 1192.

Decisions from other courts concur. See Nat’l Ass’n Of

State Util. Consumer Advocates v. FCC, 457 F.3d 1238,

1250 (11th Cir. 2006) (holding that entities “participated

in the proceedings” and “independently established their

status as ‘party aggrieved’ by “submitting comments and

notice of ex parte communications”), opinion modified

on denial of reh’g, 468 F.3d 1272 (11th Cir. 2006); Clark

& Reid Co., Inc. v. United States, 804 F.2d 3, 6 (1st Cir.

1. Judge Scalia cites this court’s decision in American Trucking

Associations, Inc. v. ICC, 673 F.2d 82, 84 (5th Cir. 1982), cert.

denied, 103 S. Ct. 1272 (1983), as being in accord with the “party”

requirement. We don’t dispute this either.

42a

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1986) (“[W]e do not equate the regulatory definition of a

‘party’ in an ICC proceeding with the participatory party

status required for judicial review under the Hobbs Act”);

Am. Civil Liberties Union v. FCC, 774 F.2d 24, 26 (1st Cir.

1985) (observing that entities could have “participate[d]

in the proceedings or review process as individual

parties” if they had “filed comments with the agency or

petitioned for reconsideration of the FCC’s final order”).

Another indicium of the necessity for a practical judicial

interpretation of this term arises from the fact that the

Hobbs Act covers several quite different agencies and

several types of proceedings: rulemaking, adjudication,

and licensing. What makes for “party aggrieved” should be

consistently interpreted and not left to the varying rules

of practice of each agency for each type of proceeding.

Simmons itself supports finding that Fasken and

Texas are each a “party aggrieved.” Simmons was a

challenge to an ICC ratemaking proceeding, and the court

held that Simmons, who had participated “by submitting

comments” in another aspect of the proceeding (the

“railroad docket”) could not be a “party aggrieved” as

to the “motor carrier docket” aspect in which it had filed

nothing. Simmons, 716 F.2d at 42, 45. The court’s analysis

centered on whether to allow Simmons to challenge the

outcome of that part of the proceeding where it hadn’t

submitted any comments at all. That Simmons had standing

under the Hobbs Act to challenge the deregulatory rule on

the railroad docket—by virtue of filing comments—was

uncontested. By analogy here, Fasken “participated” in

the proceeding with comments, submissions, attendance at

hearings, and factual submissions. And the state of Texas

“participated” by filing comments that made its position

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Appendix C

plain. Indeed, NRC acknowledged the state’s position in

its final environmental impact statement. 85 Fed. Reg.

27,447, 27,448 (May 8, 2020). The agency became well

aware of the petitioners’ concerns. Under Water Transp.

and its progeny, Fasken and Texas should qualify for

“party aggrieved” status.

Going back to the courts’ presumption of judicial review

of agency action, the presumption may be overcome “only

on a showing of clear and convincing evidence of a contrary

legislative intent.” Abbott Labs. v. Gardner, 387 U.S. 136,

141, 87 S. Ct. 1507, 1511, 18 L. Ed. 2d 681 (1967); Traynor

v. Turnage, 485 U.S. 535, 542, 108 S. Ct. 1372, 1378, 99 L.

Ed. 2d 618 (1988); see also Rhode Is. Dept. of Env. Mgmt.

v. United States, 304 F.3d 31, 41-42 (1st Cir. 2002). As the

First Circuit also pointed out, requiring intervention for

“party aggrieved” status is “circular...[t]he NRC cannot

now claim that by refusing to grant the Commonwealth’s

requests to become a party, the NRC’s decisions are beyond

review.” Massachusetts, 878 F.2d at 1520.

We acknowledge that the D.C. Circuit and Tenth

Circuit have counterintuitively adopted NRC’s circular

position. 2 This panel’s position, however, relies on the

above citations from the D.C. Circuit and other courts.

2. See, e.g., Ohio Nuclear-Free Network v. NRC, 53 F.4th 236,

239, 459 U.S. App. D.C. 266 (D.C. Cir. 2022); NRDC v NRC, 823

F.3d 641, 643, 422 U.S. App. D.C. 325 (D.C. Cir. 2016); State ex rel.

Balderas v NRC, 59 F.4th 1112, 1117 (10th Cir. 2023). In Balderas,

the court denied review to New Mexico, which had submitted

comments only on the environmental impact statement issued after

the licensure. That decision is distinguishable at least from Fasken’s

position.

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The bottom line for Hobbs Act “party aggrieved” status is

to participate in agency proceedings, which both Fasken

and Texas did; federal courts should not be bound to defer

to varying agency rules and procedures to interpret this

singular statutory language—whose purpose after all is

to facilitate judicial review. NRC admits that the panel

correctly noted judicial consensus that the “degree of

participation necessary to achieve party status varies

according to the formality with which the proceeding is

conducted.” Federal Respondents’ Pet. for Reh’g En Banc at

7. Consequently, according to the nature of the proceedings,

the fact and scope of the petitioner’s “participation” should

be determinative for judicial review, not the NRC’s denial

of “participation” to Fasken. NRC’s insistence on strict

compliance with its intervention rules is rather bold, not

only from the standpoint of eliminating judicial review, but

also because NRC quotes the statute that the Commission

“shall admit any such person as a party...” Id.

And to the point that this decision has “created” a

circuit conflict, we disagree in part. These petitioners

satisfy “party aggrieved” status under the numerous cases

that apply a broader standard of “participation.” There is

no circuit conflict with such cases. The conflict here is with

the Balderas decision’s denial of New Mexico’s standing to

challenge the ISP license. Inasmuch as the conflict is about

statutory standing to appeal, a finding of standing means

that our court will perform its duty of judicial review.

In light of the split of authorities, is “party aggrieved”

status an issue of overarching significance? Not at all. The

Hobbs Act jurisdictional provision is rarely debated, as

anyone trying to research this term will quickly ascertain.

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Appendix C

This is likely for a couple of reasons. First, much agency

activity covered by the Hobbs Act is conducted in a closed

circle of experts, lobbyists and lawyers well familiar

with the rules and proclivities of the administrators;

therefore, arguments over statutory standing seldom

arise. Second, with “participation” as the bottom line

from a judicial standpoint, 3 which is also the baseline of

D.C. court opinions (albeit with varying applications of

the term), substantive judicial review occurs only where

“parties” have actually “participated” in the challenged

proceedings. Fasken and Texas were no strangers to

NRC here. Indeed, the NWPA specifically required

“consultation” with the states before siting of spent

nuclear fuel may occur anywhere.4 That provision as well

should have garnered Texas “party aggrieved” status.

For these reasons, the panel decision is comfortably

footed on statutory standing under the Hobbs Act.

2.

The Ultra Vires Exception to the “Party

Aggrieved” Requirement

Even if Texas and Fasken were not “par ties

aggrieved” under the Hobbs Act, the panel nevertheless

3. D.C. court opinions also reasonably foreclose de minimis

participation as a basis for Hobbs Act judicial review. See ACA Int’l,

885 F.3d at 711; Water Transp. Ass’n, 819 F.2d at 1192-93.

4. 42 U.S.C. § 10155(d)(1)-(2) requires the Department of

Energy to exercise very limited interim storage of spent nuclear

fuel through “a cooperative agreement under which [the] State...

shall have the right to participate in a process of consultation and

cooperation”)(emphasis added). Needless to say, no such consultation

or cooperation occurred here.

46a

Appendix C

had jurisdiction to hear their appeal. As explained in the

opinion, this court has long recognized an exception to the

“party aggrieved” requirement regarding challenges to

the lawfulness of the agency’s action. Texas and Fasken

each argued that the NRC’s actions were unauthorized

either by the AEA or the NWPA. Texas, 78 F.4th at

839-40. Accordingly, the panel relied on the rule that “a

person may appeal an agency action even if not a party to

the original agency proceeding . . . if the agency action

is attacked as exceeding [its] power” or if the appellant

“challenges the constitutionality of the statute conferring

authority on the agency.” Am. Trucking Associations, Inc.

v. ICC, 673 F.2d 82, 85 n.4 (5th Cir. 1982); accord Wales

Transp., Inc. v. ICC, 728 F.2d 774, 776 n.1 (5th Cir. 1984).

Texas and Fasken challenged the lawfulness of the

NRC’s actions and the legality of the NRC’s conduct.

But this court’s exception to the “party-aggrieved”

requirement is criticized as a relic of ages past that

perished in the early 1980s. Of course, the Supreme Court

has not overruled our ultra vires exception, and this court

has recognized its existence in at least two more recent

cases. See Baros v. Tex. Mexican Ry. Co., 400 F.3d 228, 238

n.24 (5th Cir. 2005) (noting other courts’ disagreement);

Merchants Fast Motor Lines, Inc. v. ICC, 5 F.3d 911, 922

(5th Cir. 1993). 5

5. To be sure, other courts have rejected applying ultra vires

review in cases involving the Hobbs Act. See Balderas, 59 F.4th at

1123-24; Nat’l Ass’n Of State Util. Consumer Advocates, 457 F.3d at

1249; Erie-Niagara Rail Steering Comm. v. Surface Transp. Bd.,

167 F.3d 111, 112-13 (2d Cir. 1999); Matter of Chicago, Milwaukee,

St. Paul & Pacific R. Co., 799 F.2d 317, 334-35 (7th Cir. 1986).

47a

Appendix C

Three reasons are posited to overrule ultra vires

jurisdiction to review the statutory or constitutional basis

for agency actions. First, it is contended that our court

decisions crafted the rule based on cases that predate

Congress’s bringing the ICC within the ambit of the Hobbs

Act. That is just wrong. Wales and American Trucking

both postdate Hobbs Act review of ICC actions and cite

the Hobbs Act. There is no ground to attribute our courts’

decisions to judicial mistakes, and consequently, Wales and

American Trucking can be reconciled as to both holdings.

Second, this court’s ultra vires exception was not

made out of whole cloth. A similar rule is acknowledged by

the Supreme Court, this court, and our sister circuits in

various contexts. See, e.g., Leedom v. Kyne, 358 U.S. 184,

190, 79 S. Ct. 180, 185, 3 L. Ed. 2d 210 (1958) (“This Court

cannot lightly infer that Congress does not intend judicial

protection of rights it confers against agency action taken

in excess of delegated powers.”);6 Kirby Corp., 109 F.3d

at 269 (acknowledging “judicial review is proper under

the rule set forth in Kyne, despite there being a statutory

provision prohibiting such review, because the agency’s

challenged action is so contrary to the terms of the relevant

statute that it necessitates judicial review independent of

the review provisions of the relevant statute”); see also,

6. The parties did not cite Leedom, and I agree that the

Supreme Court clarified its application in Bd. of Governors of Fed.

Reserve Sys. v. MCorp Fin., Inc., 502 U.S. 32, 112 S. Ct. 459, 116

L. Ed. 2d 358 (1991). Nonetheless, Leedom represents the principle

that the Article III courts are not totally closed to plaintiffs who

claim agency action has violated the agency’s statutory mandate or

the Constitution.

48a

Appendix C

e.g., Long Term Care Partners, LLC v. United States,

516 F.3d 225, 233 (4th Cir. 2008) (recognizing there is

“a nonstatutory exception to the [APA] § 704 finality

requirement in cases in which agencies act outside the

scope of their delegated powers and contrary to ‘clear

and mandatory’ statutory prohibitions”); Rhode Island

Dep’t of Envtl. Mgmt., 304 F.3d at 42 (“[E]ven after the

passage of the APA, some residuum of power remains with

the district court to review agency action that is ultra

vires.”); Chamber of Commerce of U.S. v. Reich, 74 F.3d

1322, 1330-31, 316 U.S. App. D.C. 61 (D.C. Cir. 1996) (“The

procurement power must be exercised consistently with

the structure and purposes of the statute that delegates

that power . . . . It does not follow, then, that the President’s

broad authority under the Procurement Act precludes

judicial review of executive action for conformity with

that statute—let alone review to determine whether that

action violates another statute.” (citation and quotations

omitted)). Courts apply this exception for good reason.

Indeed, “[w]ere such unauthorized [agency] actions to go

unchecked, chaos would plainly result.” Dart, 848 F.2d at

224. Thus, “[w]hen an executive acts ultra vires, courts

are normally available to reestablish the limits on his

authority.” Id.

Third, two additional misconceptions should be

dispelled. The first is that the ultra vires exception

means no more than that an agency “got it wrong” per

APA standards. See Matter of Chicago, Milwaukee, St.

Paul & Pacific R. Co., 799 F.2d 317, 334-35 (7th Cir. 1986).

That is plainly not what Wales and American Trucking

stand for. Instead, and as the above cases demonstrate,

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Appendix C

the term literally refers to being “outside” the agency’s

power, i.e., in defiance of the limits placed by Congress in

the agency’s governing statute or the Constitution. None

of the cases cited above have misunderstood this term or

misapplied the rule to challenges involving less than an

absence of statutory or constitutional authority. The “got

it wrong” criticism is misleading hyperbole. Second, we

need not speculate about any limits on who can challenge

agency action as ultra vires, because in this case there

is no doubt whatsoever about the petitioners’ Article III

standing. Nor is there doubt that NRC’s rejection of “party

aggrieved” status, if that were to be decided, has denied

them any other avenue of redress.

If ever there were a case in which an agency acted

ultra vires, it should be this case. And these petitioners

should have Hobbs Act standing to contest the NRC’s

illegal licensing.

50a

Appendix C

Stephen A. Higginson, Circuit Judge, joined by Graves,

Douglas, and Ramirez, Circuit Judges, dissenting from

denial of rehearing en banc:

To hold that the Nuclear Regulatory Commission

lacked authority to license private, away-from-reactor

storage of spent nuclear fuel without a clear delegation

from Congress, the panel disregarded a clear limitation

that Congress imposed on our own authority.

Through the Hobbs Act, Congress provided for

judicial review of a Nuclear Regulatory Commission

“final order entered in any proceeding” under the Atomic

Energy Act “for the granting, suspending, revoking, or

amending of any license.” 42 U.S.C. § 2239(b)(1), (a)(1)(A).

But, like challenges to all agency actions governed by the

Hobbs Act, Congress limited jurisdiction to where “[a]ny

party aggrieved by the final order” seeks judicial review

of the order. 28 U.S.C. § 2344. The panel erred when it

ignored this limitation, deepening one circuit split that

arose from our court’s atextual dicta in a footnote over

forty years ago and threatening to create another with

new, troubling dicta of its own.

This exercise of jurisdiction has grave consequences

for reg ulat ed entities’ settled expectations and

careful investments in costly, time-consuming agency

proceedings, inviting spoilers to sidestep the avenues for

participation that Congress carefully created to prevent

this uncertainty. See Amicus Nuclear Energy Institute

Br. 4-7. And it does so across a wide range of industries—

including agriculture, transportation, development, and

51a

Appendix C

communications—because the Hobbs Act’s exclusive

jurisdiction provision governs actions taken by many

agencies. See 28 U.S.C. § 2342(1)-(7).

I.

This case concerns a license issued by the Commission

to a private company, Interim Storage Partners, for

operation of a temporary, away-from-reactor spent

nuclear fuel storage facility in Andrews County, Texas.

Two private entities—Permian Basin Land and Royalty

Owners and for-profit oil and gas extraction organization

Fasken Land and Minerals (collectively, “Fasken”)—

sought to intervene in the licensing proceeding but were

denied. Their petitions for review in the D.C. Circuit of

the orders denying intervention were either dismissed

or denied. Don’t Waste Michigan v. NRC, No. 21-1048,

2023 U.S. App. LEXIS 2022, 2023 WL 395030, at *1-3

(D.C. Cir. Jan. 25, 2023) (per curiam). Texas never sought

to intervene in the licensing proceeding. Instead, it sent

letters to the Commission both during a public comment

period on a draft environmental impact statement

performed on the license and after Texas passed a law

prohibiting storage of spent nuclear fuel.

Fasken and Texas petitioned for review of the license

in this court and licensee Interim Storage Partners

intervened. Texas argued, as relevant here, that the

license should be vacated because the Commission does

not have the authority to license private entities for

temporary, away-from-reactor storage of spent nuclear

fuel. The panel concluded that it had jurisdiction under the

52a

Appendix C

Hobbs Act, granted the petitions for review, and vacated

the license. Texas v. NRC, 78 F.4th 827, 837-40, 844 (5th

Cir. 2023).

The panel suggested that, while neither Fasken

nor Texas were parties in the licensing proceeding

that produced the challenged order, it may be that

“participat[ion]—in some way—in the agency proceedings,

which Texas did through comments and Fasken did

by seeking intervention and filing contentions,” was

sufficient. Id. at 838. But the panel rested its assertion of

jurisdiction on our court’s “ultra vires exception to the

party-aggrieved status requirement.” Id. at 839. Under

the exception, there are “‘two rare instances’ where a

‘person may appeal an agency action even if not a party

to the original agency proceeding’— (1) where ‘the agency

action is attacked as exceeding [its] power’ and (2) where

the person ‘challenges the constitutionality of the statute

conferring authority on the agency.’“ Id. (quoting Am.

Trucking Ass’ns v. ICC, 673 F.2d 82, 85 n.4 (5th Cir.

1982) (per curiam)). The panel concluded that two of the

challenges attacked the Commission as exceeding its

power: Texas’s argument that “the Commission lacks the

statutory authority to license the facility” and Fasken’s

argument that “the Commission violated the National

Environmental Policy Act and Administrative Procedure

Act by allowing a licensing condition that violates the

Nuclear Waste Policy Act.” Id. at 839-40.

II.

Lest troubling dicta again be elevated to binding

precedent without examination, I write first to explain

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Appendix C

why the panel is wrong to suggest, without so holding,

that Texas and Fasken might be “part[ies] aggrieved”

under the plain text of the Hobbs Act. The panel intimates

that requiring that a “party aggrieved” be a party to

the underlying proceeding here would “impose an extratextual gloss by requiring a degree of participation not

contemplated in the plain text of the statute.” Id. at 839.

But giving effect to the words that Congress chose—and

refusing to read in words that it did not choose—does no

such thing.

The Hobbs Act’s narrow, exclusive-jurisdiction

provision limits review to those petitioners who are a

“party aggrieved by the final order,” 28 U.S.C. § 2344, in

contrast with the broader judicial review provision of the

Administrative Procedure Act under which a “person”

“aggrieved by agency action” may petition for review, 5

U.S.C. § 702. I don’t disagree that party status, because

the Hobbs Act encompasses a variety of agency actions,

turns on the nature of the agency proceedings. But in these

proceedings the answer is clear. With the Atomic Energy

Act, Congress carefully delineated the only process by

which the Commission could make a “person” a “party”

in the licensing proceeding context: “[T]he 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.” 42

U.S.C. § 2239(a)(1)(A).7 Where the Commission denies a

7. Indeed, Congress relied on the “person” versus “party”

distinction throughout the Atomic Energy Act. For example, after

the conclusion of certain licensing proceedings for the construction

of plants, the Commission must publish a notice of intended operation

before fuel is loaded into the plant so that “any person whose interest

54a

Appendix C

person’s attempt to become a party—that is, where the

Commission denies intervention—Congress provided

for judicial review of that denial under the Hobbs Act.

Id. § 2239(b)(1). Pursuant to this congressionally devised

process, Fasken sought to become a party to the proceeding

and, when the Commission denied intervention, obtained

full review of that denial in the D.C. Circuit. Don’t Waste

Michigan, 2023 U.S. App. LEXIS 2022, 2023 WL 395030,

at *1-3. Texas never sought to become a party.

Without the answer that Congress supplied, the panel

relied on what it guessed Congress intended as “the

function of the ‘party aggrieved’ status requirement.”

NRC, 78 F.4th at 838. This put the panel in the more

difficult position of attempting to discern what degree of

participation in the agency proceeding was enough. Id.

at 838-39. But no such inquiry is required here or even

permitted because, in the context of Commission licensing

proceedings, Congress has answered the question already.

III.

The panel rested its assertion of jurisdiction,

with neither merits endorsement nor analysis, on this

court’s judge-made, ultra vires exception to Congress’s

jurisdictional limitation. Id. at 839-40. Because courts

have “no authority to create equitable exceptions to

may be affected by operation of the plant, may within 60 days request

the Commission to hold a hearing on whether” the construction

complies with the license. Id. § 2239(a)(1)(B)(i). This distinction

made by Congress contemplates that a person may not be party

to a licensing proceeding for a plant’s construction but may later

challenge whether subsequent construction complies with the license.

55a

Appendix C

jurisdictional requirements,” Bowles v. Russell, 551 U.S.

205, 214, 127 S. Ct. 2360, 168 L. Ed. 2d 96 (2007), the

exception should be eliminated.

This court, in dicta in a footnote over forty years

ago, asserted that the Hobbs Act’s “party aggrieved”

requirement does not limit review where “the agency

action is attacked as exceeding [its] power.” Am. Trucking

Ass’ns, 673 F.2d at 85 n.4 (internal quotation marks and

citation omitted). 8 That assertion, though made in 1982,

relied exclusively on Interstate Commerce Commission

cases from 1968 and earlier—seven years before Congress

brought judicial review of that body’s orders within the

ambit of the Hobbs Act. See Pub. L. No. 93-584, §§ 3, 4,

88 Stat. 1917 (1975). As the Second Circuit explained, the

exception “rests upon” these “pre-1975 cases” “without

any acknowledgment of the intervening change in

governing procedure” and with “no compelling support for

the proposition that, despite the plain statutory language

to the contrary, such petitions remain valid today.” ErieNiagara Rail Steering Comm. v. Surface. Transp. Bd.,

167 F.3d 111, 112 (2d Cir. 1999) (per curiam).

8. This was never explained as an outgrowth of the much

narrower exception that the Supreme Court recognized in Leedom v.

Kyne, 358 U.S. 184, 190, 79 S. Ct. 180, 3 L. Ed. 2d 210 (1958). There,

the Supreme Court explained that “the inference would be strong

that Congress intended the statutory provisions governing . . .

general jurisdiction . . . to control” where “there is no other means”

to “protect and enforce” a “right” that Congress has created. Id.

(internal quotation marks and citations omitted). But the Court has

underscored that this narrow exception does not apply where there is

a “meaningful and adequate opportunity for judicial review.” Bd. of

Governors of Fed. Rsrv. Sys. v. MCorp Fin., Inc., 502 U.S. 32, 43, 112

S. Ct. 459, 116 L. Ed. 2d 358 (1991). Nor does it apply where Congress

has spoken “clearly and directly” to judicial review. Id. at 44.

56a

Appendix C

No other circuit has adopted our court’s exception to

the Hobbs Act, and four circuits have rejected it. Balderas

v. NRC, 59 F. 4th 1112, 1123-24 (10th Cir. 2023); Nat’l

Ass’n of State Util. Consumer Advocs. v. FCC, 457 F.3d

1238, 1249 (11th Cir. 2006) (Pryor, J.), modified on other

grounds on denial of reh’g, 468 F.3d 1272 (11th Cir. 2006);

Erie-Niagara Rail Steering Comm., 167 F.3d at 112-13;

In re Chicago, Milwaukee, St. Paul & Pac. R.R., 799 F.2d

317, 334-35 (7th Cir. 1986) (Easterbrook, J.). Indeed, the

Tenth Circuit in Balderas rejected the exception when

New Mexico invoked it to challenge the same license at

issue here. 59 F. 4th at 1123-24. In the Seventh Circuit,

Judge Easterbrook explained that our court’s atextual

exception reads out the “party” limitation that Congress

imposed because “‘exceeding the power’ of the agency

may be a synonym for ‘wrong,’ so that the statute then

precludes review only when there is no reason for review

anyway.” In re Chicago, 799 F.2d at 335.

Parsing which merits arguments here fall under our

court’s ultra vires exception shows its unworkability—and

the risk for judicial aggrandizement when courts can

pick and choose when to abide by Congress’s limits. The

panel concluded that it had jurisdiction over Fasken’s

argument that “the Commission violated the National

Environmental Policy Act and Administrative Procedure

Act by allowing a licensing condition that violates the

Nuclear Waste Policy Act” because the argument “centers

on the contention that the Commission acted beyond its

statutory authority by issuing a license with a condition

expressly prohibited by the Nuclear Waste Policy Act.”

NRC, 78 F.4th at 840. But this asks judges to speculate

about what a petitioner’s challenges are really about to

decide whether Congress’s clear jurisdictional limitation

on their power to hear cases really applies.

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Appendix C

The panel concluded that it had jurisdiction over

Texas’s argument that “the Commission lacks the

statutory authority to license the facility” because that

argument “attacks the Commission for licensing a facility

without the authority to do so under the Atomic Energy

Act, and in conflict with the Nuclear Waste Policy Act.” Id.

at 839-40. The panel, however, determined that it lacked

jurisdiction over Texas’s arguments that “the license

issuance violated the Administrative Procedure Act”

(unlike, inexplicably, Fasken’s Administrative Procedure

Act challenge) and the “National Environmental Policy

Act by failing to assess the risks of a potential terrorist

attack.” Id. But why are these latter two not also “attack[s]”

on the “agency action” as “exceeding [its] power”? Am.

Trucking Ass’ns, 673 F.2d at 85 n.4. An agency exceeds

its power whenever it violates the law. That includes when,

for example, its action is “arbitrary, capricious, an abuse

of discretion, or otherwise not in accordance with law.” 5

U.S.C. § 706(2)(A). Our exception reads out the difference,

discussed above, that Congress created between broader

judicial review under the Administrative Procedure Act

and narrower judicial review under the Hobbs Act. And

“[t]he merits of that policy are for the Congress rather

than us to determine.” Simmons v. Interstate Commerce

Comm’n, 716 F.2d 40, 43, 230 U.S. App. D.C. 236 (D.C.

Cir. 1983) (Scalia, J.).

***

For these reasons, I respectfully dissent from denial

of rehearing en banc.

58a

Appendix D

APPENDIX D — MEMORANDUM

AND ORDER

OF THE NUCLEAR REGULATORY COMMISSION,

FILED APRIL 23, 2020

NUCLEAR REGULATORY COMMISSION

IN THE MATTER OF HOLTEC INTERNATIONAL

(HI-STORE Consolidated Interim Storage Facility)

CLI-20-4

Docket No. 72-1051-ISFSI

April 23, 2020

COMMISSIONERS: Kristine L. Svinicki, Chairman;

Jeff Baran; Annie Caputo; David A. Wright

MEMORANDUM AND ORDER

Today we address five separate appeals of the

Atomic Safety and Licensing Board’s denial of requests

to inter vene in the proceeding regarding Holtec

International’s application to construct and operate

a consolidated interim storage facility (CISF) in Lea

County, New Mexico.1 For the reasons described below,

we affirm the Board in part and reverse and remand in

part. We also remand to the Board two contentions filed

after the deadline.

1. See LBP-19-4, 89 NRC 353 (2019).

59a

Appendix D

I.

BACKGROUND

Holtec submitted its license application in March 2017.2

The proposed license would allow Holtec to store up to

8680 metric tons of uranium (MTUs) (500 loaded canisters)

in the Holtec HI-STORE CISF for a period of forty years.3

Holtec’s safety analysis currently encompasses only

the canisters and contents approved under the generic

docket 72-1040 for the HI-STORM UMAX canister

storage system.4 According to its application, Holtec plans

up to nineteen subsequent expansion phases over the

course of twenty years, with each expansion requiring a

license amendment. 5 Holtec’s environmental report (ER)

anticipates operation of its proposed facility for up to 120

years (a forty-year initial licensing period plus eighty

2. See Letter from Kimberly Manzione, Holtec International,

to Michael Layton, NRC (Mar. 30, 2017) (enclosing application

documents including safety analysis report and environmental

report) (ADAMS accession no. ML17115A431 (package)). By the

time the Board ruled, Holtec had updated its application documents.

The application revisions referenced in the Board’s decision are:

Environmental Report on the Holtec International HI-STORE

CIS Facility, rev. 5 (Mar. 2019) (ML19095B800) (ER); and Holtec,

Licensing Report on the HI-STORE CIS Facility, rev. 0F (Jan. 31,

2019) (ML19052A379) (SAR). References in this decision refer to

the same revisions unless otherwise noted.

3. See Proposed License for Independent Storage of Spent

Nuclear Fuel and High-Level Radioactive Waste SNM-1051, at 1

(ML17310A223) (Proposed License).

4. SAR § 1.0 at 1-2; see 10 C.F.R. § 72.214 (list of approved spent

fuel storage casks).

5. See ER § 1.0.

60a

Appendix D

years of potential renewal periods) with up to 100,000

MTUs stored after all expansions.6

The Staff published a notice of opportunity to request

a hearing on Holtec’s application in July 2018.7 Petitions

to intervene were filed by Sierra Club; Beyond Nuclear,

Inc. (Beyond Nuclear); Fasken Land and Minerals,

Ltd. and Permian Basin Land and Royalty Owners

(together, Fasken); Don’t Waste Michigan, Citizens’

Environmental Coalition, Citizens for Alternatives to

Chemical Contamination, Nuclear Energy Information

Service, Public Citizen, Inc., San Luis Obispo Mothers

for Peace, and Nuclear Issues Studies Group (together,

Joint Petitioners); Alliance for Environmental Strategies

(AFES); and NAC International Inc. (NAC). The Board

heard oral argument on January 23 and 24, 2019.

The Board rejected all the hearing requests for either

lack of standing, failure to offer an admissible contention,

or both. The Board found that three petitioners—Beyond

Nuclear, Sierra Club, and Fasken—had demonstrated

standing but had not offered an admissible contention. 8

The Board concluded that Joint Petitioners and NAC had

neither demonstrated standing nor offered an admissible

6. Id.

7. See Holtec International’s HI-STORE Consolidated Interim

Storage Facility for Interim Storage of Spent Nuclear Fuel, 83 Fed.

Reg. 32,919 (July 16, 2018).

8. See LBP-19-4, 89 NRC at 358.

61a

Appendix D

contention.9 The Board did not rule on AFES’s standing—

which it found to be a close call—but rejected AFES’s

petition because the organization had not proposed an

admissible contention.10

All petitioners except for NAC have appealed. The

Staff and Holtec oppose the appeals, as described below.

II. DISCUSSION

A.

Standard of Review

Our regulations allow a petitioner whose hearing

request has been wholly denied to appeal as of right.11

We generally defer to the Board on matters of contention

admissibility and standing unless an appeal demonstrates

an error of law or abuse of discretion.12 Similarly, we

generally defer to the Board on questions pertaining to

the sufficiency of factual support for the admission of a

contention.13

9. Id.

10. Id. at 358, 370-71.

11. 10 C.F.R. § 2.311(c).

12. See, e.g., Crow Butte Resources, Inc. (Marsland Expansion

Area), CLI-14-2, 79 NRC 11, 13-14 (2014); Strata Energy, Inc. (Ross

In Situ Uranium Recovery Project), CLI-12-12, 75 NRC 603, 608-13

(2012).

13. Pacific Gas and Electric Co. (Diablo Canyon Nuclear Power

Plant, Units 1 and 2), CLI-16-9, 83 NRC 472, 482 (2016); Crow Butte,

CLI-14-2, 79 NRC at 13-14.

62a

Appendix D

B. Beyond Nuclear/Sierra Club Contention 1/

Fasken

Beyond Nuclear and Fasken each proposed a single

contention, and Sierra Club proposed its Contention

1, all questioning whether it is lawful to issue the

proposed license at all.14 These petitioners contend that

the application must be rejected outright because it

contemplates storage contracts with the U.S. Department

of Energy (DOE) and such contracts would be illegal under

the Nuclear Waste Policy Act (NWPA).15 Holtec envisions

14. See Petition to Intervene and Request for Adjudicatory

Hearing by Sierra Club (Sept. 14, 2018), at 10-17 (Sierra Club

Petition). Fasken entered this proceeding through a motion “to

dismiss the licensing proceeding” filed directly before us relating

to this facility and another CISF proposed in Texas. See Motion of

Fasken Land and Minerals and Permian Basin Land and Royalty

Owners to Dismiss Licensing Proceedings for Hi-Store Consolidated

Interim Storage Facility and WCS Consolidated Interim Storage

Facility (Sept. 14, 2018). Beyond Nuclear filed a similar motion,

which it attached as an exhibit to its hearing request and petition to

intervene. See Beyond Nuclear, Inc.’s Hearing Request and Petition

to Intervene (Sept. 14, 2018) (Beyond Nuclear Petition); Beyond

Nuclear, Inc.’s Motion to Dismiss Licensing Proceedings for HiStore Consolidated Interim Storage Facility and WCS Consolidated

Interim Storage Facility for Violation of the Nuclear Waste Policy Act

(Sept. 14, 2018). Beyond Nuclear also submitted a letter after filing

its appeal. See Letter from Mindy Goldstein and Dianne Curran,

Counsel for Beyond Nuclear, to the Commissioners (Apr. 7, 2020).

The letter does not affect our analysis below.

15. See Nuclear Waste Policy Act of 1982, as amended, 42 U.S.C.

§§ 10101-10270 (2012). Because our regulations do not provide for a

“motion to dismiss” an application, the Secretary of the Commission

referred Beyond Nuclear’s and Fasken’s motions to be considered

63a

Appendix D

that its customers will either be nuclear plant operators

or DOE, depending on which entity holds title to the spent

nuclear fuel.16

Beyond Nuclear, Fasken, and Sierra Club all argued

that it would violate the NWPA for DOE to take title to

spent nuclear fuel before it builds a permanent geological

repository. Section 123 of the NWPA provides that

DOE will take title to the spent fuel when the Secretary

of Energy accepts delivery of it.17 Section 302 of the

NWPA provides that the Secretary of Energy will enter

contracts with the spent fuel generators (nuclear power

plant owners) that “shall provide that” the Secretary will

take title to the spent fuel “following commencement of

operation of a repository.”18 And a ““repository” is defined

in the NWPA as a system intended for “permanent deep

geological disposal of high-level radioactive waste and

spent nuclear fuel.”19

as hearing requests and as proposed contentions in each licensing

proceeding. See Order of the Secretary (Oct. 29, 2018) (unpublished)

(issued in this proceeding and in Interim Storage Partners, LLC

(WCS Consolidated Interim Storage Facility)).

16. See, e.g., Proposed License at 2, ¶ 17 (“[T]he construction

program will be undertaken only after a definitive agreement with

the prospective user/payer for storing the used fuel ([DOE] and/or

a nuclear plant owner).”).

17. 42 U.S.C. § 10143.

18. Id. § 10222(a)(5)(A).

19. Id. § 10101(18).

64a

Appendix D

During oral argument on the petitions, Holtec’s

counsel acknowledged that the NWPA would prevent

DOE from taking title to spent nuclear fuel and therefore

(except for a relatively small quantity of waste it already

owns) DOE could not be a CISF customer. 20 Holtec also

acknowledged that it hopes Congress will change the law

to allow DOE to enter into temporary storage contracts

with Holtec. 21 But Holtec argued that because the

application also contemplates that nuclear plant owners

might be potential customers, the petitioners have not

raised a litigable contention.

The Board rejected the argument that the “mere

mention of DOE renders Holtec’s license application

unlawful.”22 The Board observed that Holtec “is committed

to going forward with the project” by contracting directly

with the plant owners. 23 The Board held that whether that

option is ““commercially viable” was not an issue before

the Board. 24 And it noted that Holtec had committed not

20. Tr. at 249-50.

21. Tr. at 248, 250.

22. LBP-19-4, 89 NRC at 381.

23. Id.

24. Id. (citing Louisiana Energy Services, L.P. (National

Enrichment Facility), CLI-05-28, 62 NRC 721, 726 (2005); Hydro

Resources, Inc. (P.O. Box 15910, Rio Rancho, NM 87174), CLI-01-4,

53 NRC 31, 48-49 (2001)). In Hydro, we observed that the NRC “is

not in the business of regulating the market strategies of licensees.”

Hydro, CLI-01-4, 53 NRC at 48-49. In Louisiana Energy Services,

we denied review of the Board’s decision to reject a portion of a

65a

Appendix D

to “contract unlawfully” with DOE. 25 The Board further

pointed to DOE’s publicly taken position that it cannot

lawfully provide interim storage before a repository is

operational. 26 The Board found that the NRC can safely

assume that DOE would not enter unlawful contracts

because federal agencies enjoy a “presumption of

regularity” that they will “act properly in the absence

of evidence to the contrary.” 27 The Board concluded that

Holtec “seeks a license that would allow it to enter into

lawful customer contracts today, but also permit it to

enter into additional customer contracts if and when they

become lawful in the future.” 28

Beyond Nuclear argues that the NRC cannot issue the

proposed license because the Administrative Procedure

Act prohibits agency action that is “not in accordance with

the law” or “in excess of statutory jurisdiction, authority,

or limitation.” 29 Beyond Nuclear frames the question as

contention that questioned the commercial viability of the proposed

project, and we held that the license applicant did not have to

“demonstrate the potential profitability of the proposed facility.”

Louisiana Energy Services, CLI-05-28, 62 NRC at 725.

25. See LBP-19-4, 89 NRC at 381.

26. Id. at 382.

27. Id. (citing United States v. Armstrong, 517 U.S. 456, 464

(1996); United States v. Chem. Found. Inc., 272 U.S. 1, 14-15 (1926));

see also FCC v. Schrieber, 381 U.S. 279, 296 (1965).

28. LBP-19-4, 89 NRC at 382.

29. Beyond Nuclear’s Brief on Appeal of LBP-19-04 (June

3, 2019), at 7 (Beyond Nuclear Appeal) (quoting Administrative

Procedure Act, 5 U.S.C. § 706(2)(A), (C)).

66a

Appendix D

whether the NRC “may approve a license application

containing provisions that would violate NWPA if

implemented.” 30 Similarly, Sierra Club argues that “the

Holtec project cannot be licensed if there is a possibility

that the financial arrangements would be illegal.”31 Fasken

argues that Holtec’s license application is “outside of

the ASLB’s and the NRC’s subject-matter jurisdiction”

because approval would authorize a facility that violates

the NWPA. 32 The Staff and Holtec oppose the appeals. 33

The three appellants’ characterization largely

restates arguments already advanced to the Board. 34 As

30. Id.

31. Sierra Club’s Petition for Review of Atomic Safety and

Licensing Board Decision Denying Admissibility of Contentions

in Licensing Proceeding (June 3, 2019), at 5 (Sierra Club Appeal).

32. Fasken and PBLRO Notice of Appeal and Petition for

Review (June 3, 2019), at 3-4 (Fasken Appeal).

33. See NRC Staff Answer in Opposition to Beyond Nuclear’s

Appeal of LBP-19-4 (June 28, 2019); Holtec International’s Brief in

Opposition to Beyond Nuclear’s Appeal of LBP-19-4 (June 28, 2019);

NRC Staff Answer in Opposition to Fasken Land and Minerals, Ltd.

and Permian Basin Land and Royalty Owners’ Appeal of LBP-19-4

(June 28, 2019); Holtec International’s Brief in Opposition to Fasken

and Permian Basin Land and Royalty Owners’ Appeal of LBP-19-4

(June 28, 2019) (Holtec Opposition to Fasken Appeal); NRC Staff ’s

Answer in Opposition to the Sierra Club’s Appeal of LBP-19-4 (June

28, 2019), at 5-7 (Staff Opposition to Sierra Club Appeal); Holtec

International’s Brief in Opposition to Sierra Club’s Appeal of LBP19-4 (June 28, 2019), at 6-9 (Holtec Opposition to Sierra Club Appeal).

34. Florida Power & Light Co. (Turkey Point Nuclear

Generating Units 6 and 7), CLI-17-12, 86 NRC 215, 219 (2017)

67a

Appendix D

the Board observed, “Holtec seeks a license that would

allow it to enter into lawful customer contracts today, but

also permit it to enter into additional customer contracts

if and when they become lawful in the future.” 35 The

proposed license would authorize Holtec to take possession

of the spent nuclear fuel in its CISF; the license itself

would not violate the NWPA by transferring the title to

the fuel,

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Petition for Writ of Certiorari — Holtec International, Petitioner v. Nuclear Regulatory Commission, et al. | Frix