ML17209B244

Notice of Appeal of Aslb 810603 Order Denying Parsons & Whittemore,Inc & Resources Recovery,Inc Petition to Intervene & Request for Hearing.Brief Supporting Appeal & Certificate of Svc Encl

ML17209B244
Person / Time
Site:	Saint Lucie
Issue date:	06/15/1981
From:	KUCIK G R, SWARD E E ARENT, FOX, KINTNER, PLOTKIN & KAHN, PARSONS & WHITTEMORE
To:
References
ISSUANCES-OL, NUDOCS 8106170227
Download: ML17209B244 (15)

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0UNITEDSTATESOFAMERICANUCLEARREGULATORYCOLL~:ISSIONB""OREH"ATOMICS.."ETYANDL'ENSINGFPPEALBO.'D@/zgej.)))DocketNo.50-NOTICEOFAPPEALInthei~fatterofFLORIDAPONER&LIGHTCOMPANY(St.LuciePlant,UnitNo.2)gap/ppJgjynPursuantto10C.F.R.52.714a,petitionersP"Nhittemore,Inc.andResourcesRecovery(DadeCounty),Inc.appealfromtheJune3,1981orderoftheAtomicSafetyandLicensingBoarddenyingtheirpetitionforleavetointerveneandrequestforhearinginthecaptionedproceeding.TheorderwasdocketedandservedonJune4.Insupportofthisappeal,petitionersattachabriefasrequiredby10C.F.R.52.714a(a).Respectfullysubmitted,George.Kuciqq>qg>act>5,Mt:aclN<~Q~~LgtiQR4~6'ElenE.SwardArent,Fox,Kintner,Plotkin6Kahn1815HStreet,N.tf.Washington,D.C.20006Telephone:(202)857-6000CounselforPetitionersJune15,1981~~66yPgyral

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~t0~UNITEDSTATESOFAMERICANUCLEARREGULATORYCOMMISSIONBEFORETHEATOMICSAFETYANDLXCENSINGAPPEALBOARDXntheMatterofFLORXDAPOWER6LIGHTCOMPANY(St.LuciePlant,Unit.No.2))))DocketNo.50-389OL))BRIEFOFPARSONS6WHXTTEMORE,XNC.ANDRESOURCESRECOVERY(DADECOUNTY),INC.INSUPPORTOFTHEIRAPPEALFROMDENXALOFTHEIRXNTERVENTIONPETXTIONANDREQUESTFORHEARINGParsonssWhittemore,.Inc.(PGW)andResourcesRecovery(DadeCounty),Inc.(RRD)petitione'd-forleavetointerveneinthisproceedingforissuanceofalicensetooperateFloridaPower6Light,Company'sSt.LuciePlant,UnitNo.2.Thepeti'tionwasdeniedonJune3,1981on...thegroundthatpetitionerssoughttoraiseonlyantitrustissuesbeforeaLicensingBoardthatwasconstitutedto,1/'onsideronl'yhealth,safetyandenvironmentalissues.Pursuantto10C.F.R.52'.714a,petitionershaveappealedfrom1thisorderofdenial.TheFederalRegisternoticeunderwhichpeti'tionerssoughttointervenedidnot,byitsterms,limitthejusticiable1/TheLicensingBoard'sJune3orderdenyinginterventionwasservedonpetitionersthenextday,June4.

issuestohealth,safetyandenvironmentalmatters.Moreover,theBoard'sorderfocusedonlyontheantitrustaspectsofpetitioners'leading,ignoringpetitioners'xpressedconcernwithprotectionoftheirrightsunderthePublicUtilityRegulatoryPoliciesActof1978(PURPA)(Petition,pp.4-6)..Thoserightshavebeenadverselyaffectedbyasettlementagreement.enteredintointhecompanionconstructionlicenseproceeding,DocketNo.50-389A,involvingSt.LucieNo.2.Ourpetitiontointerveneinthatproceedingispresentlypending'.ThatpetitionraisesthesamePURPAandantitrustissuesthatpetitionersseektoraiseinthisoperatinglicenseproceeding.PetitionershavenoticedtheinstantappealtoprotecttheirrighttobeheardbytheNRContheimportantissuesthattheyhaveraised.ShouldtheNRCdeclinetohearandaddressthe'meritsofpetitioners'ontentionsineitherproceeding,wewouldcontendthattheNRChadviolateditsstatutoryobligationsaswellasthedueprocessclauseoftheConstitution.Thatissue,however,isnotripefordecisionatthistime,sincetheconstructionlicensinginterventionpleadinghasnotyetbeenJdecided.Werespectfullysubmit,inthesecircumstances,thatitwouldbeappropriateforthisAppealBoardtodocketpetitioners'ppealbutdeferactionuponituntilaftertheLicensingBoarddecisionintheconstructionlicensingproceeding.

Thatdecisionmightmakeitunnecessaryforpetitionerstopursuethisappeal.Thepolicyagainstpiecemeallitigation,inanyevent,commendstheideathattheAppealBoardshouldnotruleupontheinstantappealwithouthavingthebenefitoftheLicensingBoard'sdecisioninthepehdingcompanion.matter.WewillundertaketonotifytheAppealBoardofthatdecisionpromptlyafteritisrendered,andtoapprisetheBoardofour.vi'ewsastoitseffectontheinstantappeal.BACKGROUNDPetitionersownandoperateasolidwasteprocessingplantinDadeCounty,Florida..Theplantconvertssolidwasteintorefuse-derivedfuel,andburnsittoproduce.steam,which.isthenconverted,.intoelectricenergy.,Thisfacility.'iscompleteandreadytobegin.generatingelectricityfrom.waste.OnMarch9,,1981,anoticeofreceiptofanapplicationforafacilityoperatinglicenseforFPGL.'sSt.LucieUnitNo.2,nuclearfacilitywaspublishedintheFederalRegister,46Fed.Reg.15831-32.ThenoticestatedthattheCommission'ouldconsider'issuingalicense"whichwouldauthorize[FPGL]topossess,useandoperatetheSt.LuciePlant,Unit.2inaccordancewiththeprovis'ionsofth'e['construction]license[Emphasisadded.]Thenoticefurther.statedthattheCommissionwouldhavetofind,priortoissuinganoperating~license,thattheapplication"complieswiththerequirements

~t'~I~~oftheAtomicEnergyActof1954,asamended,andtheCommission'sregulationsin10C.F.R.Chapterl."Followingitsdescriptionoftheproceeding,theNoticeinvited"anypersonwhoseinterestmaybeaffectedbythisproceeding[to]fileapetition'orleavetoint'ervene."OnApril7',1981,petitionersfiledatimelypetitionforleavetointerveneandrequestforalimitedantitrusthearing,allegingthatissuanceoftheoperatinglicense(1)wouldcreateormaintainasituationinconsistentwiththeantitrust,lawsinviolationoftheAtomicEnergyAct,42U.S.C.52135,and(2)wouldadverselyaffecttheirrightsunderthePublicUtilityRegulatoryPoliciesActof1978(PURPA).PetitionersweremostlyconcernedwithSectionXofasettlementagreement2/negotiatedintheSt.LucieUnit2,constructionlicenseproceeding.TheConstructionLicensingBoardissuedanorderonApril24,1981,makingthesettlementagreementimmediatelyeffectivewithoutprejudicetotheNRC'sright"toimposedifferentoradditionalconditionsafterahearing"(MemorandumandOrder,p.1andp.3atfn'.2).TheNRCStaffrespondedtopetitioners'nterventionpleadingsonApril22,1981,assertingthattheBoardlackedjurisdictiontoentertainthe'petitionbecauseitsoughtto/2/Thatagreement,forex'ample,obligatedFPGLtotransmitelectricityonbehalfofsmallpowerproducerswithinthemeaningofPURPA,suchas.petitioners,butallowedFPGLtoconditionthetrans-missioninanunfairanddiscriminatorymanner.

~~

raiseonlyantitrustissues.TheStaffarguedtheBoardwasconstitutedtohearhealth,safetyandenvironmentalissuesonlyandcouldnotconsiderantitrustclaims.FPGLrespon'dedtothePetitiononMay6,assertingthesamejurisdictionaldefenseand'raisingotherissuesnotrelevanttothisappeal.PetitionersthenmovedforleavetoanswertheoppositionpleadingsofFPSLandtheNRCStaff.PermissiontoanswerwasdeniedonMay22,withtheBoardrulingthat"ithassufficientinformationtoconsiderthepetition..."(Order,p.2).Thereafter,onJune3,theBoarddeniedthepetition,adoptingthejurisdictionalargumentthatpetitionershadbeendeniedanopportunitytoanswer.Forthereasonsexplainedbelow,petitionersrespectfullyrequestthat.theLicensingBoard.'sJune'orderbereversedandsetI'sideand,thatthismatterberemandedtotheBoardwithinstructionstograntthepetitionforleavetointerveneandrequestforhearing.ARGUMENTA.THECOMMISSXON'SFEDERALREGXSTERNOTXCEOFTHE'OPERATXNG..LICENSEPROCEEDXNG..DXD.NOT.EXCLUDEANTXTRUST,ISSUES'ROMTHEAMBITOFTHEPROCEEDINGTheLicensingBoardhasruledthatthenotice'unde'rwhich.petitionersseektointervenerelatedexclusivelytohealth,safetyandenvironmentalissues.Thatruling,wecontend,iserroneous.

TheMarch9noticeunderwhichpetitionersoughttointervenedoesnotexcludeantitrustissues.Rather,theoperativeinterventionlanguageisall-encompassing,invitingparticipationby"anersonwhoseinterestmaybeaffectedbthisroceedin[Emphasisadded.]Thenotice,moreover,doesnotexpresslystatetnattheproceedingislimitedtoconsiderationofhealth,safetyandenvironmentalissues.Here,too,thesubstantiveissueframedbythenoticeisall-encompassing:whetherafacilityoperatinglicenseshouldbeissued.Antitrustissuesmustnecessary.lybeconsideredbytheBoardindecidingwhethersuchalicenseshallissueandunderwhatcircumstancesandconditions.52l35(c).-3/'ee42U.S.C.Antitrust.considerationsareofparticularrelevanceinthismatter,becausetheFederalRegisternoticespecificallystatedthattheultimateissueiswhether@PEALshouldbeallowedtooperatetheSt.LuciePlant"inaccordancewiththerovisionsn'censeOnerovisionoftheofthe[constructs.o]lz.pconstructionlicense,currentlyineffectunderthe".:Board'sApril24order,isthatFPGLtransmitelectricityforneighboringentitiesandqualifyingPURPA'acilities..Theexplicitpurposeofthiscondition,istomitigatenegativeantitrustimplications(seetheApril24Orderat,e.cC.,pp.3fn.2).Thus,antitrustissuesmustberelevantintheoperatinglicenseproceeding.3/TheCommission'sRegulatoryGuide9.3statesCommissionpolicyonwhatinformationwillbeconsideredinmakingthis:statutoryreviewofantitrustimplicationsattheoperating'l~icensestage.

J1

~~SBeyondthis,thenotice'sneglecttomentionantitrustissuesisaviolationoftheCommission'StatementofGeneralPolicyandProcedure,l0C.F.R.,Part2,App.A.SectionXofthatAppendixrequiresthattheCommission'snoticeofreceiptofapplication(foroperatinglicensesaswellastheirconstructioncounterparts)establishaprocedureforraisingantitrustissues.Specifically,SectionXprovidesthatthenotice-willstatethatpersonswhowishtohavetheirviewsontheantitrustaspectsoftheapplicationpresentedtotheAttorneyGeneralforconsiderationshallsubmitsuchviewstotheCommissionwithinsixty.(60)days.[Emphasisadded.]NosuchstatementappearsintheMarch9notice;nordoesthenoticestatethatnoopportunitytoraiseantitrustissueswillbeafforded,orthatsuchanopportunitywillbeaffordedatalaterdate.Antitrustissuesare.simplyignoredbythenotice.Furthermore,SectionX(e)oftheStatement.ofGeneralPolicy.andProcedurestatesthatantitrusthearingswill"generally"beheldseparatelyfromhearingsonradiologicalhealthandsafetyandcommondefenseandsecurity;therefore,separationofissuesisnotanabsoluterequirement.Xnsum,theoperativeFederalRegisternotice,coupledwiththeNRC'spreexistingpolicystatements,indicatedthatantitrustissuesweretobeopenforconsiderationinthisproceeding.TftheCommissiondidnotintendthisresult,itsnoticewasdefective.

~~B.THEORDERBELOWIMPROPERLYFAILEDTOADDRESSPETITIONERS'ECONDGROUNDFOR'INTERVENTION--THEADVERSEEFFECTONTHEIR"PURPA'IGHTS'etitionerssoughttointervenenotonlyonantitrustgroundsbuttoprotecttheir.rightsunderPURPAas,well.PURPAinsuresthatsmallpower-producingfacilitiesshallhaveamarketfortheirelectricitybyrequiringthatutilities,suchasFPGL,purchasethatelectrici'tyattheutilities'voidedcosts.Andthe,settlementagreementintheconstructionlicenseproceedingspecificallydealswith,PURPAfacilities,inSectionX.TheLicensingBoarderredbydenyingthepetitiontointervenewithoutmentioningthisaspectof'petitioners'nterest4gintheproceeding.=Itmustbeemphasizedthatpetitioners'eedtoprotecttheirPURPArightsbeforetheNRCstemsnotfromanythingthat1Ipetitionershavedoneorfailedtodo.InterventionisnecessaryatthistimebecauseoftheearlierdecisionofFPGL,theNRCStaffandtheDepartment',ofJusticetocoverPURPAfacilitiesinthesettlementagreement,withoutFederalRegisternoticeandanopportunityforinterestedpersonstobeheard.TheLicensingBoard'scontinued'failureto,allowpetitionersto.beheard,4/TherightsofPURPAfacilitiesunderthesettlementarelessextensivethantherightsoffacilitieswhichhavenotqualifiedunderPURPA.Thatisonereasonwhypetitioners'ights'areadverselyaffectedbytheSectionXconditionsofthesettlementagreementwhichbecameeffectiveonApril24.

~~intheircapacityas.aqualifyingPURPAfacilityiserroneousasamatteroflaw.CONCLUSIONPetitioners'ppealshouldbegrantedandtheJune3,1981,orderofAtomicSafetyandLicensingBoardshouldbereversedandsetaside.Themattershouldberemanded'totheBoardwithinstructionstograntpetitioners'pril7,1981,petitiontointerveneandrequestforhearing.Respectfullysubmitted,GeorgeR.KucikEenE.SwarArent,Fox,,Kintner,Plotkin6Kahn1815HStreet,N.W.Washington',D.C.20006Telephone:'(202)857-,6000CounselforPetitioners~June15,1981 UNITEDSTATESOFAMERICANUCLEARREGULATORYCOMMXSSXONBEFORETHEATOMICSAFETYANDLXCENSINGAPPEALBOARDXntheMatterof))FLORIDAPOWER6LXGHTCOMPANY)DocketNo.50-389OL)(St.LuciePlant,UnitNo.2))pgppArgilL.Toalston,ActingChiefUtilityFinanceBranchU.S.NuclearRegulatoryCommissionWashington,D.C.20555XvanW.Smith,EsquireChairmanAtomicSafetyandLicensingBoardU.S.NuclearRegulatoryCommissionWashington,D.C.20555IherebycertifythatcopiesoftheforegoingNoticeofAppealandBriefofParsons6Whittemore,Xnc.andResourcesRecovery(DadeCounty),Inc.inSupportofAppealfromDenialofTheirInterventionPetitionwereserveduponthefollowingpersonsviafirstclassmailorbyhand*ostaereaid,this/5thdayofJune,1981.RobertM.Lazo,EsquireAtomicSafetyandLicensingBoardU.S.'uclearRegulatoryCommissionWashington,D.C.20555MichaelA.Duggan,EsquireCollegeofBusinessAdministrationUniversityofTexasAustin,Texas78712ElizabethS.Bowers,ChairmanAtomicSafetyandLicensingBoardU.S.NuclearRegulatoryCommissionWashington,D.C.20555WilliamD.Paton,EsquireCounselforNRCStaffU.S.NuclearRegulatoryCommissionWashington,D.C.20555PeterG.Crane,EsquireOfficeoftheGeneralCounselU.S.NuclearRegulatoryCommissionWashington,D.C.20555Dr.PeterA.MorrisAtomicSafetyandLicensingBoardPanelU.S.NuclearRegulatoryCommissionWashington,D.C.20555MichaelC.Farrar,EsquireChairmanAtomicSafetyandLicensingAppealBoardPanelU.B.NuclearRegulatoryCommissionWashington,D.C.20555Dr.OscarH.ParisAtomicSafetyandLicensingBoardPanelU.S.NuclearRegulatoryCommissionWashington,D.C.20555*DocketingandServiceSectionOfficeoftheSecretaryU.S.NuclearRegulatoryCommissionWashington,D.C.20555JeromeSaltzman,ChiefAntitrust6IndemnityGroupU.S.NuclearRegulatoryCommissionWashington,D.C.20555 AtomicSafetyandLicensingBoardU.S.NuclearRegulatoryCommissionWashington,D.C.20555RichardS.Saltzman,EsquireAtomicSafetyandLicensingAppealBoardPanelU.S.NuclearRegulatoryCommissionWashington,D.C.20555Mr.HaroldDentonDirectorofNuclearReactorRegulationU.S.'NuclearRegulatoryCommissionWashington,D.C.20555WilliamC.Wise,EsquireSuite500120018thStreet,N.W.Washington,D.C.20036WilliamH.Chandler,EsquireChandler,O'Neal,Avera,Gray6StriplingPostOfficeDrawer0Gainesville,Florida32602JanetUrban,EsquireU.S.DepartmentofJusticeP.O.Box14141Washington,D.C.20044JosephRutberg,EsquireLeeScottDewey,EsquireFredricD.Chanania,EsquireCounselforNRCStaffU.S.NuclearRegulatoryCommissionWashington,D.C.20555AnnP.Hodgdon,EsquireOfficeoftheExecutiveLegalDirectorU.S.NuclearRegulatoryCommissionWashington,D.C.20555ThomasGurney,Sr.,Esquire203NorthMagnoliaAvenueOrlando,Florida32802RobertE.BathenFredSafferR.W.Beck6AssociatesP.O.Box6817Orlando,Florida32803DonaldA.Kaplan,EsquireRobertFabrikant,EsquireAntitrustDivisionU.S.DepartmentofJusticeWashington,D.C.20530CharlesR.P.Brown,EsquireBrown,PaxtonandWilliams301South6thStreetP.0.Box1418FortPierce,Florida33450HelenSheaWells93ElMarDriveJensenBeach,Florida33457*J.A.Bouknight,Jr.,Esquire.DouglasG.Green,EsquireLowenstein,Newman,Reis6Axelrad.1025ConnecticutAvenue,N.W.Washington,D.C.20036'eorgeSpiegel,EsquireRobert.Jablon,EsquireAlanJ.Roth,EsquireDanielGuttman,EsquireSpiegel&McDiarmid2600VirginiaAvenue,N.W.Washington,D.C.20037*HerbertDym,EsquireCovingtonsBurling88816thStreet,N.W.Washington,D.C.20006AtomicSafetyandLicensingAppealBoardPanelU.S.NuclearRegulatoryCommissionWashington,D.C.20555OneofCounselforPetitioers