Skull Valley Band of Goshute Indians v. Nielson

PFS, a consortium of utility companies, applied to the Nuclear Regulatory Commission (NRC). for licensure of a facility for the storage of spent nuclear fuel (SNF) PFS was formed for the purpose of establishing temporary storage options for SNF. In 1997, prior to applying to the NRC, PFS had entered into a lease with the Skull Valley Band of Goshute Indians (the tribe) to build an SNF-storage facility on its tribal land. Between 1998 and 2001, Utah passed several statutes regulating the storage and transportation of SNF. The intended effects of the state statutes were to (1) revoke limited liability for SNF companies, (2) require a bond for unfunded potential liability, (3) require county governments to impose restrictions on SNF storage based on its effects on human health (county-planning provisions), and (4) regulate road construction near SNF-storage sites (road provisions). Utah state officials (plaintiffs) intervened in the licensing proceeding. The Utah officials claimed that the NRC lacked authority to issue a license for the proposed SNF-storage facility. The NRC concluded that the Atomic Energy Act (AEA) established the NRC’s authority to license nuclear facilities such as SNF-storage sites and gave the NRC exclusive authority over issues of radiological safety. The AEA also provided that nuclear-facility operators would have limited liability. The NRC had authority to impose financial conditions (e.g., insurance requirements) on the operator of an SNF-storage facility. The Utah officials appealed to the district court, which ruled that the Utah statutes were preempted by federal law. The Utah officials appealed to the United States Court of Appeals for the Tenth Circuit.