# Petition — Baltimore Gas and Electric Co. v. Natural Resources Defense Council, Inc. (Nos. 76-774, 76-653, 762, 769)

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385004_1686%3A1

## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1976

## Text

Supreme Court, U. $, |
FILED «
pec 7 1976

rE

MICHAEL RODAK, JR., CLERK
IN THE

Supreme Court of the United States

Ocroser TzRM, 1976

No.76- 7 G&- 774 i

Battimmore Gas AND ELEZcTRIC COMPANY, ET AL., AND
Tue Bascock & Wir.cox Company, Petitioners

v.
NATURAL Resources Derense Oounoi, LNC., BT AL,
and
Tue Strate or New York, Respondents

PETITION OF BALTIMORE GAS AND ELECTRIC
COMPANY, ET AL. AND THE BABCOCK & WILCOX
COMPANY FOR A WRIT OF CERTIORARI TO
THE UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT

Gerorae C. Freeman, JR.
Dowap P. Inwin
Saran FE. Hart
Hunton & WILLIAMS
707 East Main Street
Richmond, Virginia 23219
Micuaz. B. Barr
Hunton & WiLL1AMs
1730 Pennsylvania Avenue, N.W.
Washington, D. 0. 20006
Attorneys for Pctitioners
Of Counsel:
Atvin G. KALMANSON
Tue Bascocx & W1Lcox CoMPANY

161 E. 42d Street
New York, New York 10017

Puees of Brecon 8S. Ananes Paorrovc, lec., Wasumweron, D. C.

. Page
PR EY ccodcenesnseceewennccsncnceesbesens 2
PN dott edesnnoembognveesesonssetostesepes 3
Py PUT ceccdcccedceosscoscestsonautce 3
EES a ee +
ee OC 166. esc dcdebusnenenenesenete +
Reasons for Granting the Writ .................... 10
GET soncéudseds sdnensesécededsbhaeubedecwes 16
CITATIONS
CasEs:
Aberdeen & Rockfish R.R. Co. v. SCRAP, 422 U.S. 289
ke bik elec a ak ca eae 12, 14
American Commercial Lines, Inc. v. Louisville & Nash-
ville R.R. Co., 392 U.S. 581 (1968) .............. 14
Coleman v. Conservation Society of Southern Vermont,
he OF §. Bee eee a eres 16
F.C.C. v. Schreiber, 381 U.S. 294 (1964) .......... a-
F.C.C. v. WJR, The Goodwill Station, Inc., 337 U.S.
Dt St cadéndddntwakeddebnadaddemenianada 14
Kleppe v. Sierra Club, 96 S.Ct. 2718 (June 28, 1976). . 3, 9,
11, 12, 13, 14, 15, 16

Natural Resources Defense Council, et al. v. Nuclear
Regulatory Commission, 539 F.2d 824 (2d Cir.
SE, bbdddvscenedinabecisbunaenctéssbndduaedte 2,3

Natural Resources Defense Council, et al. v. Nuclear
Regulatory Commission, 9 E.R.C. 1414 (2d Cir.
September 8, 1976) (supplemental opinion deny-

By CEE cocececedccestececodéécccasseuces 3

ii Citations Continued

Page
Nader v. Nuclear Regulatory Commission, 513 F.2d
Ge 14

Northern Indiana Public Service Co. v. Porter County
Chapter of the Izaak Walton League, 423 U.S. 12
St. did ataineth cis ine died eile csGadsbetews 16

Pikes Peak Broadcasting Company v. F.C.C., 422 F.2d
671 (1969), certiorari denied, 395 U.S. 979 (1969) 14

Toilet Goods Association v. Gardner, 387 U.S. 158

tt Siiludebsaueddagede66h00690060606sa00e0 15
Union of Concerned Scientists v. Atomic Energy Com-

mission, 499 F.2d 1069 (D.C, Cir. 1974) ......... 14
STaTUTEs:
BS iin os ie eke eauasaeneseeess i)
re ne ee cnc cen desea iceabennes 9
ED, «66 one ca ncenceeen seses 3
es oc cnc cndeecnecececsces 8
I eee 3
ee cca gneesseeceese 4
ee 4
ee es OF ED GD ccc coccccccccsccocsceces 3,8
ae 4
42 U.S.C. § 5801-5891 (Supp. V, 1976) .............. 5
ReGuatTions :
es ED bc oc cncnceedbcocsccetecs 5
MISCELLANEOUS:
39 Fed. Reg. 5356 (February 12, 1974) ............. 5
39 Fed. Reg. 30186 (August 21, 1974) .............. 5
40 Fed. Reg. 20142 (May 8, 1975) .................. 6

40 Fed. Reg. 53056 (November 14, 1975) as corrected
in 40 Fed. Reg. 59497 (December 24, 1975) ...... 2

IN THE

Supreme Court of the United States

OcTOBER TERM, 1976

No. 76-

Battrmore Gas AND ELectric COMPANY, ET AL., AND
Tue Bascock & Witcox Company, Petitioners

v.
NATURAL Resources DEFENSE CouNCcIL, INC., ET AL.,
and
Tue State or New York, Respondents

PETITION OF BALTIMORE GAS AND ELECTRIC
COMPANY. ET AL. AND THE BABCOCK & WILCOX
COMPANY FOR A WRIT OF CERTIORARI TO
THE UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT

Baltimore Gas and Electric Company, et al.’ and
The Babeock & Wilcox Company respectfully petition

1 Boston Edison Company, Consumers Power Company, Duke
Power Company, Long Island Lighting Company, Northeast Nu-
clear Energy Company, Pacific Gas & Electric Company, Phila-
delphia Electric Company, Public Service Electric & Gas Com-
pany, Southern California Edison Company, The Connecticut
Light & Power Company, The Hartford Electric Light Company,
Virginia Electric and Power Company, Western Massachusetts
Electric Company, and Yankee Atomic Electric Company.

2

for a writ of certiorari to review the judgment and
opinion of the United States Court of Appeals for the
Second Cireuit entered in this proceeding on May 26,
1976, as amended on August 12, 1976 and supplemented
on September 8, 1976.

OPINIONS BELOW

The subject of this proceeding is an interim licens-
ing policy of the Nuclear Regulatory Commission (the
Commission), under which it decided to consider, in
individual cases after full radiological health and
safety and environmental reviews, whether to grant
licenses relating to the use of mixed (uranium-plu-
tonium) oxide fuel during the period prior to comple-
tion of its generic rulemaking proceeding on use of
such fuel, the GESMO proceeding.*? This policy was
announced on November 11, 1975, published in the
Federal Register on November 14, 1975 (40 Fed. Reg.
53056), and corrected in minor detail on December 19,
1975 (40 Fed. Reg. 59497, December 24, 1975). The
notice and correction are set forth as Appendix A to
the petition for certiorari filed in this proceeding by
Allied-General Nuclear Services, et al., on November
9, 1976, Supreme Court Docket No. 76-653.°

The Second Cireuit’s opinion reversing the Commis-
sion’s interim licensing policy, Natural Resources De-
fense Council, et al. v. Nuclear Regulatory Commission,

2 See pages 4-10 infra for discussion of the subject of mixed
oxide fuel and the NRC proceedings relating to it.

* That Appendix, as well as Appendices B, C, D and E to
the petition filed by Allied-General Nuclear Services, et al., is in-
corporated herein by reference. Appendices to the Allied-General
Nuclear Services, et al., petition will hereinafter be cited as ‘‘AGNS
Appendix —.’’

as issued May 26, 1976 and amended August 12, 1976,
is reported at 539 F.2d 824 and set forth as AGNS Ap-
pendix B. The Second Cireuit’s per curiam supple-
mental opinion denying rehearing, issued September 8,
1976, is not yet officially reported.‘ It is unofficially
reported at 9 E.R.C. 1414 and set forth as AGNS Ap-
pendix ©.

This petition for a writ of certiorari is being filed
within the prescribed period of 90 days after Septem-
ber 8, 1976. The jurisdiction of this Court is invoked
under 28 U.S.C. § 1254(1) and § 2350(a), and 42 U.S.C.
§ 2239(b).

1. Whether the National Environmental Policy
Act (NEPA), as construed by this Court in Kleppe v.
Sierra Club, 96 S.Ct. 2718 (June 28, 1976), prohibits
the Commission from granting any licenses relating to
the commercial use of mixed oxide fuel in nuclear
power reactors during the period prior to completion
of the GESMO rulemaking proceeding, which has been
pending since 1974 and may well take several addi-
tional years to complete.

2. Whether the Second Cireuit erred in holding,
in the absence of a record and despite the fact that any
action under the Commission’s interim licensing policy
granting a license relating to the commercial use of
mixed oxide fuel would be subject to judicial review
on a full record, that issuance of such a license would,
under every circumstance, violate NEPA.

*The Second Circuit also issued on September 8, 1976 orders

denying timely suggestions for rehearing en bane. Those orders
are set forth as AGNS Appendix D.

4

STATUTES INVOLVED

1. Section 102 of the National Environmental
Policy Act of 1969, 42 U.S.C. § 4332 (1970);

2. Section 103 and section 161b of the Atomic En-
ergy Act of 1954, as amended, 42 U.S.C. § 2133
and § 2201(b) (1970).

The statutes cited above are set forth in AGNS Ap-
pendix E.
STATEMENT OF THE CASE

All but one of the commercial nuclear power reactors
operating or under construction in the United States
are cooled by ordinary, or “‘light,’’ water and presently
use uranium fuel which has been enriched in a fissile, or
energy-producing, isotope, uranium-235, to about 3 per-
cent of the total fuel content. Plutonium, which is
also fissile, is a natural and inevitable by-product of the
operation of these reactors.” The concept of “‘pluton-
ium recyele’’ with mixed (uranium-plutonium) oxide
fuel in light water reactors embraces the series of steps
needed to permit substitution of plutonium for a por-
tion of the uranium-235 that would otherwise be used
in reactor fuel." Plutonium recycle permits conserva-

*Plutoniu. is ‘“‘bred’’ over the course of the normal reactor
marily uranium-238, which represent about 99% of naturally
occurring (unenriched) uranium and about 97% of the uranium
used in present light water reactor fuel. This ‘‘bred’’ plutonium
in turn fissions, producing a significant proportion of the total
power developed over a uranium fuel core’s life and approximately
50% of the power being generated at the end of core life.

*The production and use of mixed oxide fuel involve several
steps, which are described in detail in the Commission's Notice,
AGNS Appendix A, pp. A-12-A-13. _In essence, they are: re
processing spent reactor fuel to separate out plutonium from other

tion of uranium-235, as well as efficient disposition of
spent reactor fuel.

The Atomic Energy “ommission’ first announced
its intent to publish a generic environmental statement
dealing with the wide-scale use of mixed oxide fuel on
February 12, 1974 (39 Fed. Reg. 5356). The announce-
ment indicated that the AEC was preparing a Generic
Environmental Statement on the Use of Mixed Oxide
Fuel in Light Water Reactors (GESMO) pursuant to
the requirements of NEPA and the Council on En-
vironmental Quality’s Guidelines (40 C. F. R. Part
1500), and that if the GESMO warranted, the AEC
would propose amendments to its regulations to deal
with the wide-scale use of such fuel. A draft of the
GESMO was completed and made publicly available
on August 21, 1974 (39 Fed. Reg. 30186).

In May 1975, the Commission announced that before

to perform certain additional analyses, including a

cost-benefit assessment of alternative safeguards pro-

constituents; converting the plutonium into a chemically

(oxide) form; fabricating new fuel rods using plutonium in place

of a portion of the uranium-235 would otherwise be ;
water

:

i reactor, exactly like
pure uranium fuel. These steps are carried out at a series of co-
ordinated facilities, each of which must be licensed, along with
any necessary transportation links, pursuant to the Atomie Energy
Act of 1954, as amended, and NEPA. Each of these steps, in-
cluding reactor operation with mixed oxide fuel, has already been
demonstrated on a small seale.

*The Atomie Energy Commission (AEC) was abolished, and

the Nuclear Regulatory Commission was created and succeeded
January 19, 1975 to the regulatory functions of the

the Energy Reorganization Act of 1974, 42 U.S.C. §§ 5801-589
(Supp. V, 1975).

—

grams, which would be reflected in both draft and final
environmental statements (40 Fed. Reg. 20142, May 8,
1975). At the same time, the Commission announced its
provisional views on the issuance of licenses for activi-
ties related to the production or use of mixed oxide fuel
pending the outcome of its decision on wide-scale use.
The November 1975 notice detailing the Commission’s
interim licensing policy was issued in response to
comments received on its May 1975 provisional views.

In the November 1975 notice, the Commission an-
alyzed the differing relationships of the various types
of facility licensing proceedings to wide-scale use of
mixed oxide fuel. It found that interim licensings, in-
dividually or collectively, would not necessarily result
in the foreclosure of significant health and safety or
environmental alternatives.

The Commission made clear that any facilities so
licensed must, of course, meet all applicable health,
safety, and environmental requirements, and that any
licenses issued would be expressly subject to amend-
ment, suspension or revocation in light of its ultimate
decision on wide-scale use of mixed oxide fuel. Like
all licenses issued by the Commission, any such license
would be reviewable in the Court of Appeals. Further,
the Commission stressed that such individual deter-
minations, for all facilities other than power reactors,
would be made only after balancing three additional
eligibility criteria : *

(1) Whether the activity can be justified, from a
NEPA cost-benefit standpoint, without placing

* The Commission found that use of mixed oxide fuel by power
reactors would in no way tend to predetermine the outcome of
its generic decision and involved no other special limiting con-
siderations. AGNS Appendix A, pp. A-21- A-22, A-26.

7

primary reliance on an anticipated favorable Com-
—— decision on wide-scale use of mixed oxide
uel;

(2) Whether the activity would give rise to an
irreversible and irretrievable commitment of re-
sources that would unjustifiably foreclose for the
activity substantial safeguards alternatives that
may result from the decision on wide-scale use ; and

(3)The effect of delay in the conduct of the ac-
tivity on the overall public interest.

AGNS Appendix A, pp. A-25 - A-26.

The November 1975 notice and the extensive record
on which it was based demonstrate that the Commis-
sion, in establishing its interim licensing policy, con-
sidered and balanced a broad range of factors. These
include protection of the public health and safety, the
need to avoid foreclosure of safeguards alternatives,
protection of the environment and retention of environ-
mental alternatives, conservation of scarce natural re-
sources, impact on the nation’s energy development
program, and the need for a flexible regulatory process.
As the notice itself states :

In reaching its general conclusion that individ-
ual interim licenses may be issued where warrant-
ed, and under the specific conditions discussed in
this notice, the Commission assessed the likely ben-
efits of allowing such interim licensing as well as
the possible adverse im Here, as in other deci-
sional areas, the need for careful balance was evi-
dent. While the Commission is properly mindful
that certain licensing actions have the
for foreclosing subsequent alternatives, it cannot
disregard the equally hard reality that inaction or a
blanket prohibition on fuel recycle related licens-
ing actions could also foreclose or substantially

impede realization of energy alternatives which
may contribute significantly to meeting national
needs.

Broad public interest considerations must be
weighed in determining the appropriateness of
interim licensing. Whether the Commission de-
cision on wide-scale use of mixed oxide fuel is
favorable or unfavorable, an absolute prohibition
on the conduct of any related activities in the in-
terim could result in the disruption or cessation
of planning as well as the production of useful
data. Such a prohibition onl result in potential-
ly serious delays in exploring alternatives which
could contribute to meeting the nation’s energy
needs. This could impose future economic penal-
ties on the American public through increased
eosts to electric utilities caused by delaying the use
of resources available in spent fuel and requiring
additional spent fuel storage facilities that other-
wise would not be needed.

AGNS Appendix A, pp. A-22, A-23 - A-24,

Dissatisfied with the Commission’s considered de-
termination that a complete moratorium on the licens-
ing of commercial mixed oxide activities would be in-
consistent with the public interest, Natural Resources
Defense Council (NRDC)* and the Attorney General
of the State of New York filed similar petitions for
review in the Second Circuit, asserting jurisdiction in
the Court of Appeals pursuant to 28 U.S.C. § 2342(4)
(Supp. V, 1975) and 42 U.S.C. § 2239 (1970). Both
petitions contested the legality, under NEPA, of the
Commission's decision not to impose a licensing mora-

* Five other groups—Sierra Club, Ine., Environmentalists, Inc.,
West Michigan Environmental Action Council, Ine., National In-
tervenors, Inc and Businessmen for the Public Interest, Inc.—
joined in the petition for review tiled by NRDC.

torium on commercial mixed oxide fuel activities
pending completion of the GESMO proceeding.” The
Commission and various intervenors before the Second
Cireuit, including Baltimore Gas and Electric Com-
pany, et al., and The Babeock & Wilcox Company, op-
posed this argument and raised, with respect to review
of the Commission’s interim licensing policy, ques-
tions of finality and ripeness.

The Second Circuit, rejecting the objections concern-
ing lack of finality and ripeness, concluded that the in-
terim licensing policy inherently violated NEPA in
that it would ‘circumvent the mandates of NEPA by
granting interim licenses on the basis of records which
exclude the generic aspects.’’ AGNS Appendix B, p.
A-71. In short, the court below held that the Com-
mission must refrain from issuing any licenses related
to use of mixed oxide fuel on a commercial scale ‘until
the GESMO and the GESMO supplement have been
issued in final form and until the Commission has made
its final decision on wide-scale use of mixed oxide
fuel.”” AGNS Appendix B, p. A-72. Petitions for re-
hearing were denied with a supplemental opinion pri-
marily seeking to distinguish this Court’s intervening
decision in Kleppe v. Sierra Club, 96 S.Ct. 2718 (June

1 NRL. and New York also contended that the full panoply of
adjudicatory procedures normally associated with ‘‘on the record’
hearings conducted pursuant to sections 7 and 8 of the Adminis-
trative Procedure Act, 5 U.S.C. §§ 556, 557 (1970), should be re-
quired in the Commission’s rulemaking hearing, and complained
of various other aspects of the rulemaking’s structure and conduct.
The Second Cireuit rejected these arguments and Petitioners do
not seek review of these aspects of the court’s decision.

Se

10

28, 1976. AGNS Appendix ©. Suggestions for re-
hearing en bane were also denied. AGNS Appendix

Dp"
REASONS FOR GRANTING THE WRIT

The Second Cireuit’s opinion presents this Court
with a clear example of a case worthy of certiorari.”

First, in rejecting the Commission’s interim licens-
ing policy for a potentially major energy source the
Second Circuit has departed from established princi-
ples of law in an area of paramount importance to the
national welfare.

The close historic correlation between economic pro-
duction and energy use shows no sign of breaking
down ; nor does the crucial role of electricity in provid-
ing energy to all sectors of this nation’s economy. As

'' The Commission’s public hearings connected with the GESMO
rulemaking began on November 30, 1976, with the start of ques-
tioning by the Hearing Board of the first witness panel, the Com-
mission's Staff, on iis direct testimony. Filing of direct testimony
by other full participants, of which there are over seventy, and
subsequent questioning thereon will not begin until early next
year. The present quasi-legislative phase of the proceeding may
eventually be succeeded in some areas by adjudicatory proce-
dures upon a proper showing of need. Although the duration
of such proceedings is virtually impossible to predict, it seems not
unlikely that compilation of the hearing record alone will] take at
least one to two more years. At that time, it will be certified to
the Commission for a decision, which, in view of the complexity
of the matter, will certainly not be rendered overnight.

'? Allied-General Nuclear Services, et al., in their petition in
Supreme Court Docket No. 76-653, have aptly set forth the reasons
why this Court should issue a writ of certiorari to review the judg-
ment and opinion of the Second Circuit in this proceeding. We
subseribe to and incorporate by reference the statement of rea-
sons set forth by Allied-General Nuclear Services, et al., and merely
summarize here certain aspects which deserve especially close
attention.

11

the events of the past few years have clearly illustrated,
economic sources of energy at present are either limit-
ed in their available supply or beset by use-re-
lated problems. Whatever their problems, however,
domestically. available sources of energy possess im-
portant advantages over ones which must be imported.
The nation’s present energy posture is a precarious one
and no potential source of energy, however exotic, can
be overlooked for development. It is all the more vital,
therefore, that the opportunity for commercial harnes-
sing of known, readily available energy supplies in the
near-term future should not be pre-emptively stifled by
mechanical misapplication of NEPA doctrine.

The Second Cireuit’s bar on the issuance of indi-
vidual commercial licenses pending the completion of
what is expected to be a lengthy generic proceeding
could greatly exacerbate the spent fuel storage prob-
lems already being experienced by some utilities and in-
erease the demand for scarce uranium. More impor-
tant, however, because of the advance planning and
long lead times involved in the construction of fuel
eyele facilities, the Second Cireuit’s ban on interim
licensing could also result in the unavailability of the
mixed oxide fuel option at a critical juncture.

Second, the Second Cireuit’s opinion is clearly con-
trary to this Court’s decision in Kleppe v. Sierra Club,
96 S.Ct. 2718 (June 28, 1976). In Kleppe, this Court,
reversing the United States Court of Appeals for the
District of Columbia Circuit, found no requirement
for a general impact statement covering coal develop-
ment plans in the Northern Great Plains region and
held that, even assuming the need for such a regional
impact statement, an injunction against interim min-
ing activities in the region was improper. 96 8.Ct. at

12

2733 n. 26. Accord, Aberdeen & Rockfish R.R. Co. v.
SCRAP, 422 U.S. 289 (1975). An impact statement
had been prepared on four mining plans in one basin
within the Northern Great Plains region, and the ade-
quacy of that statement ‘“‘had not been challenged
either before the District Court or the Court of Ap-
peals, in this case, or anywhere else.’’ 96 S.Ct. at 2729.
Thus, this Court held that so long as the individual
impact statement covering those specific projects was
adequate, there was no reason to enjoin the projects’
approval pending completion of a regional impact
statement. 96 S.Ct. at 2729 n. 16. This would have been
true, the Court held, even if a regional impact state-
ment would ultimately have been required, so long as
the individual statement adequately ‘‘analyzed the
environmental impact of, and the alternatives to, the
proposal’’ within its embit. Jd.

This Court in Kleppe also considered a contention
that a regional impact statement was needed because
coal projects in the area were intimately related to
each other, an argument similar to the Second Cir-
cuit’s apparent belief that activities which might be
undertaken prior to the completion of the GESMO
proceeding would automatically be tied to the wide-
scale use of mixed oxide fuel. The Court noted that
this argument could be viewed as an attack on the suffi-
ciency of impact statements for individual projects,
and that ‘‘[a]s such we cannot consider it in this pro-
ceeding, for the case was not brought as a challenge to
a particular impact statement and there is no impact
statement in the record.’’ 96 S.Ct. at 2730. Addi-
tionally, even where a comprehensive statement would
ultimately be necessary, interim approvals of individ-
ual projects may be allowed on the basis of adequate

13

individual statements where ‘‘approval of one [proj-
ect] does not commit the Secretary to approval of any
others....”’ 96 S.Ct. at 2733 n.26.

The opinion below predated Kleppe. Nonetheless,
when apprised in petitions for rehearing of this Court’s
decision in that case, the Second Circuit denied the
petitions on the ground that Kleppe was distinguish-
able and therefore not controlling. AGNS Appendix C,
pp. A-75 - A-76.

The Second Circuit attempted to distinguish Kleppe
by asserting that any individual impact statements
‘‘drafted in accordance with presently existing Com-
mission rules and precedent would necessarily result
in impact analyses inadequate under NEPA.”’” AGNS
Appendix ©, p. A-76. Yet this preclusive judgment
was rendered in the absence of any Commission impact
statement relating to a particular facility, and thus is
directly contrary to the views set forth by the Court in
Kleppe. 96 8.Ct. at 2730.

The Second Circuit attempted to distinguish Kleppe
on a second, equally invalid basis. It asserted that un-
like the individual leases at issue in Kleppe, the indi-
vidual interim licensing to which the Commission’s
procedures would give rise would be ‘‘clearly tied”’ to
the anticipated wide-scale use of mixed oxide fuel and
thus ‘‘would commit substantial resources to the mixed
oxide fuel technology."” AGNS Appendix C, p. A-76.
In fact, however, as the Commission and other parties
explained to the Second Circuit in briefs below, the
operation of certain facilities would not necessarily be
dependent upon wide-scale use of mixed oxide fuel.
Indeed, the Commission’s eligibility criteria would
sharply limit, if not eliminate, the interim licensability
of any activities not possessing such independent util-

14

ity. Thus, the Second Circuit simply was wrong in
holding that Kleppe is not controlling in this case.

Third, the decision of the court below is at odds with
other appellate decisions which affirm the right of an
agency to proceed with adjudications while related
rulemakings are in progress. American Commercial
Lines, Inc. v. Louisville & Nashville R.R. Co., 392 U.S.
571, 590-593 (1968); F.C.C. v. WJR, The Goodwill
Station, Inc., 337 U.S. 265, 272 (1949); Pikes Peak
Broadcasting Co. v. FCC, 422 F.2d 671, 680 (D.C. Cir.
1969), cert. denied, 395 U.S. 979 (1969). This prin-
ciple has been affirmed in cases in which the rulemak-
ing is, as in this case, undertaken pursuant to NEPA
and public interest concerns dictate that some adjudi-
cations go forward. Aberdeen & Rockfish R.R. Co. v.
SCRAP, 422 U.S. 289 (1975); Nader v. NRC, 513 F.2d
1045 (D.C. Cir. 1975); Union of Concerned Scientists
v. AEC, 499 F.2d 1069 (D.C. Cir. 1974).

Finally, the decision below is erroneous in that it
was made prematurely and without an adequate basis
in fact. The Second Cireuit, describing the Commis-
sion’s interim licensing criteria as ‘‘at best vague and
at worst dising: uous,” AGNS Appendix B, p. A-66,
apparently assti.med that the criteria would be improp-
erly applied and that, consequently, any interim li-
censes which might be granted would inevitably ‘‘tip
the scale towards a favorable final decision on wide-
seale use [of mixed oxide fuel].’”” AGNS Appendix B,
pp. A-69 - A-70. The Second Circuit’s holding that the
Commission would misapply its own interim licensing
standards is directly contrary to the presumption of
regularity which this Court has recognized as attaching

15

to agency action. F.C.C. v. Schreiber, 381 U.S. 279, 296
(1965).

The Second Circuit’s holding was both speculative
in the extreme and particularly inappropriate in the
context of this case. Not only did the court not stay
its hand until it could have before it a Commission
decision in which the interim licensing criteria had
actually been applied, but the record before it con-
tained no environmental impact statement prepared
with regard to any individual interim license applica-
tion. In these circumstances the Second Circuit’s de-
cision to presume the outcome of future individual li-
censing requests violated the standards for judicial
restraint set forth by this Court in Toilet Goods Ass’n
v. Gardner, 387 U.S. 158 (1967).

16

CONCLUSION

For the foregoing reasons, the petition for certiorari
should be granted.”

Respectfully submitted,

Gerorce C. FREEMAN, JR.
Donap P. InwIn
Saran FE. Hatt
Hunton & WILLIAMS
707 East Main Street
Richmond, Virginia 23219

Mice4kgt B. Barr
Hunton & WILLIAMS
1730 Pennsylvania Avenue, N.W.
Washington, D. C. 20006

Attorneys for Petitioners
Of Counsel:

Atvin G. KALMANSON
Tue Bascock & W1Lcox CoMPANY
161 E. 42d Street
New York, New York 10017

18 Indeed in view of the fundamental inconsistency of the Second
Cireuit’s holding with the decision of this Court in Kleppe, the
opinion below strongly merits summary reversal. See, e.g., Cole-
man v. Conservation Society of Southern Vermont, 423 U.S. 809
(1975); Northern Indiana Public Service Co. v. Porter County
Chapter of the Izaak Walton League, 423 U.S. 12 (1975).

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385004_1686%3A1. Public record. Not legal advice.
