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storage facility be in operation at the time<br />

that disposal of nuclear waste must occur,<br />

while the Oregon law also requires that<br />

nuclear power proposals be placed on the<br />

statewide ballot for approval by voters. The<br />

Wisconsin law also requires that a nuclear<br />

power plant be judged to be economically<br />

advantageous to ratepayers compared with<br />

other feasible alternatives.<br />

The Montana law goes several steps<br />

further, requiring that no legal limits exist<br />

to nuclear plant financial liability in case of<br />

an accident, that there be “no reasonable<br />

chance” of the discharge of harmful radioactivity,<br />

that the safety systems of the plant<br />

be demonstrated as effective, and that<br />

nuclear facility owners post a bond equal<br />

to 30 percent of the capital cost of the plant<br />

to cover decommissioning expenses. 64<br />

In 1983, the U.S. Supreme Court considered<br />

whether California’s conditional<br />

moratorium on nuclear power plant construction<br />

was legal. In a 9-0 decision, the<br />

Supreme Court ruled that the state’s conditional<br />

moratorium was not pre-empted<br />

by federal law. Writing for the Court majority,<br />

Justice Byron White stated:<br />

Even a brief perusal of the Atomic<br />

Energy Act reveals that, despite its<br />

comprehensiveness, it does not at<br />

any point expressly require the<br />

States to construct or authorize<br />

nuclear power plants or prohibit<br />

the States from deciding, as an<br />

absolute or conditional matter, not<br />

to permit the construction of any<br />

further reactors. 65<br />

However, the decision went on to say<br />

that states cannot reject nuclear power<br />

plants on the grounds of safety, since the<br />

regulation of nuclear safety is reserved to<br />

the federal government. Rather, the rejection<br />

must be based on non-safety criteria,<br />

such as economics.<br />

Similar state laws could be adopted that<br />

constrain further construction of nuclear<br />

power plants, if they have a substantial<br />

nonsafety rationale. The poor economic<br />

track record of nuclear power, the unresolved<br />

problems of nuclear waste storage,<br />

and the availability of energy sources with<br />

lower economic costs all provide reasons<br />

for states to adopt such policies.<br />

State legislation and regulations also<br />

help to create the economic playing field<br />

on which nuclear power must compete with<br />

other sources of electricity generation and<br />

conservation. For example, states might<br />

consider adopting legislation requiring<br />

nuclear power plant owners to assume more<br />

of the “hidden” costs of nuclear power, such<br />

as the emergency planning costs incurred<br />

by state and local governments to prepare<br />

for potential nuclear accidents. For more<br />

on strategies to ensure that the full costs of<br />

nuclear power are considered in utility decision-making,<br />

see “Public Utilities Commission<br />

Processes,” page 23.<br />

Environmental and<br />

Land Use Permitting<br />

States may not have the ability to reject<br />

nuclear power on safety grounds, but they<br />

do have the ability to set conditions on<br />

where and how nuclear power plants may<br />

operate in order to limit their impact on<br />

the environment.<br />

Environmental Permitting<br />

Nuclear power plants—like most other industrial<br />

and energy facilities—must receive<br />

a series of environmental permits in order<br />

to go into operation.<br />

Plants that withdraw or discharge water<br />

for cooling from waterways must obtain a<br />

permit under section 316 of the federal<br />

Clean Water Act. In 45 states, Clean Water<br />

Act permitting authority is administered<br />

by state environmental agencies, which<br />

have the authority to grant or deny permits<br />

according to EPA guidelines. 66<br />

Challenging Nuclear Power in the States 19

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