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Government
Administrative Procedures Act
Judicial Review of Agency Decision

Public Watchdogs v. Southern California Edison Company; San Diego Gas & Electric Company; Sempra Energy; Holtec International; United States Nuclear Regulatory Commission

Published: Jan. 10, 2020 | Result Date: Dec. 3, 2019 | Filing Date: Aug. 29, 2019 |

Case number: 3:19-cv-01635 JLS (MSB) Bench Decision –  Dismissal

Judge

Janis L. Sammartino

Court

USDC Southern District of California


Attorneys

Plaintiff

Charles G. La Bella
(Barnes & Thornburgh LLP)

Eric J. Beste
(Barnes & Thornburg LLP)

Randy D. Gordon
(Barnes & Thornburg LLP)


Defendant

Alexander Akerman
(Alston & Bird LLP)

Edward J. Casey
(Alston & Bird LLP)

James R. Evans Jr.
(Alston & Bird LLP)

Charles M. Zweiback
(Zweiback, Fiset & Coleman LLP)

Rachel L. Fiset
(Zweiback, Fiset & Coleman LLP)

Valerie E. Torres


Facts

Public Watchdogs filed suit against Southern California Edison Company, San Diego Gas & Electric Company, Sempra Energy, Holtec International, and United States Nuclear Regulatory Commission in relation to defendants' operation of three nuclear electric generating units in the Camp Pendleton military base area at the San Onofre Nuclear Generating Station (SONGS).

Contentions

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that Southern California Edison owned 78.2 percent of SONGS, and San Diego Gas & Electric Company owned approximately 20 percent of SONGS. Plaintiff contended that two of the nuclear generating units began operations in 1983 and 1984, through June 12, 2013 when they were shut down, and during that time SONGS had poor safety and regulatory compliance issues. Plaintiff claimed that these issues led to SONGS being shut down, but mismanagement has led to a continuing liability and threat. Plaintiff alleged that the Nuclear Regulatory Commission failed to conduct an independent seismic hazard assessment of SONGS, allowed the utility defendants to violate the Commission's rules and regulations, granted exemptions to the utility defendants from the emergency response regulations, and allowed the utility defendants to use the $4.7 billion decommissioning trust fund for purposes outside of decommissioning activities. Plaintiff argued that the utility defendants' decommissioning plan allowed for the burial of spent nuclear fuel in an Independent Spent Fuel Storage Installation, which sat in a tsunami inundation zone located between two seismic fault lines roughly 100 feet from the ocean. Plaintiff claimed that due to numerous issues with handling spent nuclear fuel and the Installation, defendants began moving spent nuclear fuel from wet storage to canisters buried near San Onofre beach. Plaintiff asserted causes of action for violation of the Administrative Procedures Act against the Commission, public nuisance in violation of Civil Code Sections 3497-3480 against the private defendants, and strict products liability against Holtec, the designer of the Installation. Plaintiff also sought an injunction and temporary restraining order stopping defendants from transferring further spent nuclear fuel into the Holtec canisters or storing additional spent nuclear fuel in the Installation at SONGS pending a full hearing on the decommissioning plan.
Plaintiff also asserted a cause of action against the private defendants under the Price Anderson Act, 42 U.S.C. Secs. 2014, 2210 (n)(2), which amended the Atomic Energy Act to provide for federal causes of action in cases involving nuclear incidents.

DEFENDANTS' CONTENTIONS: Defendants moved to dismiss. The Commission contended that plaintiff lacked standing to challenge exemptions concerning the use of the decommissioning trust fund and insurance requirements. The private defendants contended that plaintiff lacked standing because plaintiff did not allege an injury in fact to itself that was distinct and palpable, or based on anything besides speculation regarding a potential future harm. Defendants also claimed the court lacked subject matter jurisdiction because plaintiff's causes of action all challenged actions taken pursuant to the Atomic Energy Act of 1954 and Commission regulations, so plaintiff's claims must be brought in the Ninth Circuit pursuant to the Hobbs Act.

Result

The court granted defendants' motions to dismiss without leave to amend. The court concluded that it lacked subject matter jurisdiction as to all of plaintiff's causes of action.


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