photo courtesy of topher76@flickr.com

This past week has shown Vermont first-hand the high cost of nuclear power. Hosting a plant in your state is clearly a high-stakes bargain.

Vermont went to Court in Manhattan this week before a three judge panel at the United States Court of Appeals. (Read more here and here). It had fifteen minutes for its lawyer to explain to the judges why the decision of the District Court blocking the actions of the Vermont Legislature should be reversed. A tough task.

With clarity and nimbleness, Vermont proved it was up to the task. Its lawyer, Attorney David Frederick, an experienced appellate lawyer who argued a case last week before the United States Supreme Court, explained that Vermont has every right to determine Vermont Yankee’s fate. And doing so does not impinge on the federal government’s oversight of radiological issues.

In a nutshell, there were three points.

First the United States Supreme Court case from 1983 that let stand a California law enacting a moratorium on nuclear plants would allow the Vermont law. If a state can ban all nuclear plants, it can certainly allow the Legislature to determine the fate of one plant.

Second, the lease on Vermont Yankee expired and like a landlord, Vermont can simply refuse to renew the lease. Period. Any tenant knows this. Vermont is hosting this plant and can say it wants the property used for another purpose.

Third, Vermont has huge skin in the game and economic exposure from Vermont Yankee. If Entergy, the owner of Vermont Yankee, goes bankrupt or simply chooses to walk away, Vermonters are left holding the bag for what Conservation Law Foundation has described as the nuclear equivalent of junk car in its backyard. This possibility is more likely following recent reports that Vermont Yankee is not pulling its weight and that Entergy would be better off closing the plant.

The stakes are high. Apart from hosting this plant, Entergy is seeking to recoup over $4 million in legal fees, and now has four law firms working to push every legal angle possible. Times change. When Vermont first approved the Vermont Yankee facility in the 1970s, there was a hearing for three days before the Vermont Public Service Board. Clearly nuclear power and hosting plants is more expensive and time consuming than ever.

Vermont is right to begin extracting itself from this nuclear legacy. Unfortunately, that is proving to be not so easy.

Conservation Law Foundation filed an Amicus (Friend of the Court) brief on behalf of Conservation Law Foundation, New England Coalition, Vermont Natural Resources Council and Vermont Public Interest Research Group in support of the State’s appeal to overturn the decision of Judge Murtha that Vermont has no say regarding Vermont Yankee.

Not so fast. As the Brief notes, the Vermont Legislature has clear authority to determine whether to allow the continued operation of Vermont Yankee. Vermont’s laws do not conflict with federal law and they are part of a decade of energy legislation focused on moving Vermont’s power supply away from older and more polluting power sources, like Vermont Yankee. 

There is a much longer history here. Vermont Yankee is a tired old nuclear plant and its owners are untrustworthy. Our brief shows that Vermont’s actions are authorized and reasonable.

“The Legislature’s track record shows that the Vermont Legislature has been passing energy legislation for years in response to constituents’ strong support for transitioning to renewable energy. Vermont engaged in the legitimate exercise of its traditional authority over power planning, including the future use of nuclear power plants. Vermont’s purposes, including planning, economics and reliability, are not only plausible, but show how the General Assembly has been preparing for the eventual closure of Vermont Yankee, whether in 2012 or thereafter, by enacting legislation, including Act 74 and Act 160, to assure that Vermont will be able to timely transition to an economical and environmentally sustainable energy supply” (pg 19)

Vermont Yankee’s troubled history also shows the validity of the Legislature’s actions. “Since Entergy Nuclear Vermont Yankee (Entergy) purchased the Vermont Yankee facility in 2002, a steady stream of mishaps, misrepresentations and disappointments shattered Vermont’s faith and trust in Vermont Yankee and its owners. From the failure to make any contributions to the decommissioning fund, followed by the collapse of the cooling towers in 2007, the proposed “spin off” of the plant to a highly leveraged subsidiary, the false statements to regulators and the broken promises of a power contract that never materialized, Entergy’s actions have had what an Entergy executive described as a “corrosive effect” on the relationships needed to maintain a major electric generating facility within the State.” (Pg 5). 

“These events evidence the untrustworthiness and lack of credibility in Entergy management that precluded the Vermont Legislature from affirming a continued business relationship with Entergy.” (Pg 23).

The Brief was a joint effort of our organizations. As organizations that have been involved in matters concerning energy legislation and Vermont Yankee for decades, our brief provides the Court with the perspective of how Vermont’s laws are part of Vermont’s broader efforts to responsibly manage energy supply. 

See Brief Here and Brattleboro Reformer story here.

Courtesy of garcycles8@flickr

Entergy owns a tired old nuclear plant on the banks of the Connecticut River in Vermont – a plant it wants to keep running despite escalating costs, threats to the environment and public health, and a history of false promises. 

With old approvals in hand, Entergy continues to operate Vermont Yankee past its scheduled retirement date of March 21, 2012. Entergy’s view of Vermont’s authority seems to be Vermont only has authority to give it a green light.  By Entergy’s warped playbook, any condition of operation or approval would be off limits.

Entergy went to Court last year to challenge Vermont’s authority to regulate that plant. The Court partly agreed with Entergy, but clearly recognized and reaffirmed that Entergy still needs approval from the Vermont Public Service Board to continue to operate Vermont Yankee for another 20 years.  The only limitation is that Vermont cannot regulate radiological health and safety.

In early April the latest claims came about from a response from Entergy and a reply from the State of Vermont.  The State claims that Entergy’s old approvals also require payment by Entergy into Vermont’s renewable development fund and reporting requirements.  These are conditions that are part of Entergy’s old permits.  Though less than clear, Entergy’s position seems to be that only some of those conditions continue to apply.  A later reply on April 9, seems to try and blackmail the state.  Entergy will make these payments but only if Vermont does what Entergy wants – either grant approval or not raise its taxes.  That’s an odd way to do business.

Once again, Entergy is proving to be a lousy partner for Vermont.  Entergy needs to comply or shut down.  If Entergy stays open based on its old approvals, it must meet its obligations to make the payments required by those old approvals.  Continuing its lousy track record of broken promises and thumbing its nose at Vermont is getting as old and tired as the plant itself.

Vermont moves a step closer to shuttering the aging Vermont Yankee nuclear power facility as planned in 2012.

In a strong rebuke to Entergy, the facility’s owner, the United States District Court denied a request to keep the plant open while Entergy’s legal challenge proceeds.  Entergy sued Vermont in April.  Entergy seeks to prevent Vermont law – which requires state approval - from taking effect.

The Court denied Entergy’s request for a preliminary injunction, stating:  ”This Court declines to order short-term drastic and extraordinary injunctive relief that will not offer certainty either in the short or long term, and will have no operative effect on state actions before trial.”

The Court rejected each of Entergy’s claims of harm.  The Court noted that a decision about refueling is “a business decision made very difficult by the uncertainties of litigation.”  The Court stated:  “In the unique circumstances presented here, the decision to refuel is either not harmful if Entergy prevails on the merits, or is not a cognizable injury if Vermont’s statutes are upheld.”    Refueling would cost between $60 and $65 million.  Revenues of $90 million would be earned from operating the plant until its planned closure in March 2012.

A full trial will take place this fall.  The Court’s decision on the injunction is a solid victory for Vermont at this stage.

The Vermont Public Service Board began hearings this week on what to do about the leaks at the Vermont Yankee Nuclear Power facility in southern Vermont.  CLF is asking the Board to shut down the plant until all the leaks are repaired and the site is cleaned up.

During the hearings Tuesday, Vermont Yankee’s owners admitted underground pipes still remain inaccessible, leak prevention efforts are limited, and the failure to follow their own plans led to ongoing leaks for two years before they were discovered.

Leaks at the plant came to light a year ago.  Tritium and other radioactive materials continue to contaminate the soil, groundwater and the nearby Connecticut River.

The public has lost faith in Vermont Yankee and the ability of its owners, Entergy, to manage the plant responsibly.  Testimony of CLF’s groundwater expert explains Entergy’s lackluster response to leaks.  Full clean up is needed to prevent harm to the environment.