ML24236A790

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Pacific Gas and Electric Company Answer Opposing the Appeal of LBP-24-6 Filed by San Luis Obispo Mothers for Peace, Friends of the Earth, and Environmental Working Group
ML24236A790
Person / Time
Site: Diablo Canyon  Pacific Gas & Electric icon.png
Issue date: 08/23/2024
From: Bessette P, Lighty R, Matthews T
Morgan, Morgan, Lewis & Bockius, LLP, Pacific Gas & Electric Co
To:
NRC/OCM
SECY RAS
References
RAS 57083, 50-275 LR-2, 50-323 LR-2
Download: ML24236A790 (0)


Text

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

BEFORE THE COMMISSION

In the matter of:

Docket Nos. 50-275-LR-2 and PACIFIC GAS AND ELECTRIC COMPANY 50-323-LR-2

(Diablo Canyon Nuclear Power Plant, Units 1 and 2) August 23, 2024

PACIFIC GAS AND ELECTRIC COMPANYS ANSWER OPPOSING THE APPEAL OF LBP-24-6 FILED BY SAN LUIS OBISPO MOTHERS FOR PEACE, FRIENDS OF THE EARTH, AND ENVIRONMENTAL WORKING GROUP

RYAN K. LIGHTY, ESQ.

TIMOTHY P. MATTHEWS, ESQ.

PAUL M. BESSETTE, ESQ.

MORGAN, LEWIS & BOCKIUS LLP

Counsel for Pacific Gas and Electric Company TABLE OF CONTENTS I. INTRODUCTION............................................................................................................. 1 II. BACKGROUND & LEGAL STANDARDS.................................................................... 4 A. NRC Processes and Public Participation............................................................... 4

1. Ongoing Operational Oversight................................................................. 4
2. License Renewal Proceedings.................................................................... 5 B. Standard of Review on Appeal.............................................................................. 9 III. PETITIONERS FAIL TO IDENTIFY ANY ERROR OF LAW OR ABUSE OF DISCRETION IN THE BOARDS CONTENTION ADMISSIBILITY RULINGS...... 10 A. Petitioners Identify No Error of Law or Abuse of Discretion on Contention 1......................................................................................................... 10
1. Petitioners Identify No Error of Law or Abuse of Discretion in the Boards Scope Determination.................................................................. 11
2. Petitioners Identify No Error of Law or Abuse of Discretion in the Boards Genuine Dispute Ruling............................................................. 19
3. Petitioners Make No Attempt to Identify Any Error of Law or Abuse of Discretion in the Boards Waiver Determination, Which Is Objectively Correct.............................................................................. 21 B. Petitioners Identify No Error of Law or Abuse of Discretion on Contention 2......................................................................................................... 22 C. Petitioners Identify No Error of Law or Abuse of Discretion on Contention 3......................................................................................................... 26 IV. CONCLUSI ON................................................................................................................ 30

ii TABLE OF AUTHORITIES

Federal Court Cases Heckler v. Chaney, 470 U.S. 821 (1985)...................................................................................... 18 Lincoln v. Virgil, 508 U.S. 182 (1993)......................................................................................... 15 Ruiz v. Morton, 462 F.2d 818 (9th Cir. 1972)............................................................................... 15 Texas v. United States, 86 F. Supp. 3d 591 (S.D. Tex. 2015)........................................... 15, 17, 18 United States v. Morgan, 118 F. Supp. 621 (S.D.N.Y. 1953)................................................ 15, 17

NRC Cases AmerGen Energy Co., LLC (Oyster Creek Nuclear Generating Station),

CLI-09-7, 69 NRC 235 (2009)......................................................................................... 3, 9, 17 Crow Butte Res., Inc. (Marsland Expansion Area),

CLI-14-2, 79 NRC 11 (2014)..................................................................................................... 9 Dominion Nuclear Conn., Inc. (Millstone Nuclear Power Station, Units 2 & 3),

CLI-01-24, 54 NRC 349 (2001)................................................................................................. 8 Entergy Nuclear Operations, Inc. (Indian Point, Units 2 & 3),

CLI-15-6, 81 NRC 340 (2015)................................................................................................... 6 Entergy Nuclear Operations, Inc. (Indian Point, Units 2 & 3),

LBP-08-13, 68 NRC 43 (2008)................................................................................................. 25 Entergy Nuclear Operations, Inc. (Palisades Nuclear Plant),

CLI-15-23, 82 NRC 321 (2015)................................................................................................. 8 Entergy Nuclear Vt. Yankee, LLC (Vt. Yankee Nuclear Power Station),

CLI-07-3, 65 NRC 13 (2007)..................................................................................................... 9 Fla. Power & Light Co. (Turkey Point Nuclear Generating Plant, Units 3 & 4),

ALAB-952, 33 NRC 521 (1991).......................................................................................... 9, 14 Fla. Power & Light Co. (Turkey Point Nuclear Generating Plant, Units 3 & 4),

CLI-01-17, 54 NRC 3 (2001).............................................................................................. 6, 7, 9 Fla. Power & Light Co. (Turkey Point Nuclear Generating Plant, Units 3 & 4),

CLI-91-13, 34 NRC 185 (1991)........................................................................................... 9, 14 Fla. Power & Light Co. (Turkey Point Nuclear Generating Units 6 & 7),

CLI-17-12, 86 NRC 215 (2017)..................................................................................... 3, 10, 28 Hydro Res., Inc. (Crownpoint, NM),

CLI-06-1, 63 NRC 1 (2006)....................................................................................................... 9 In the Matter of David Geisen, CLI-10-23, 72 NRC 210 (2010)............................................................................................... 16

iii Luminant Generation Co., LLC (Comanche Peak Nuclear Power Plant, Units 3 & 4),

CLI-11-9, 74 NRC 233 (2011)............................................................................................... 3, 9 Luminant Generation Co., LLC (Comanche Peak Nuclear Power Plant, Units 3 & 4),

CLI-12-7, 75 NRC 379 (2012)............................................................................................... 3, 9 Pac. Gas & Elec. Co. (Diablo Canyon Nuclear Power Plant, Units 1 & 2),

ALAB-728, 17 NRC 777 (1983).............................................................................................. 21 Pac. Gas & Elec. Co. (Diablo Canyon Nuclear Power Plant, Units 1 & 2),

CLI-83-32, 18 NRC 1309 (1983)............................................................................................. 21 Pac. Gas & Elec. Co. (Diablo Canyon Nuclear Power Plant, Units 1 and 2),

LBP-24-6, 100 NRC __ (July 3, 2024) (slip op.).............................................................. passim Private Fuel Storage, LLC (Indep. Spent Fuel Storage Installation),

CLI-99-10, 49 NRC 318 (1999)................................................................................................. 8 Progress Energy Fla., Inc. (Levy Cty. Nuclear Power Plant, Units 1 & 2),

CLI-10-2, 71 NRC 27 (2010)................................................................................................. 3, 9 Shieldalloy Metallurgical Corp. (Newfield, N.J. Facility),

CLI-07-20, 65 NRC 499 (2007)......................................................................................... 10, 25 U.S. Dept of Energy (High-Level Waste Repository),

LBP-09-6, 69 NRC 367 (2006)................................................................................................. 24 U.S. Dep't of Energy (High-Level Waste Repository),

CLI-08-11, 67 NRC 379 (2008)............................................................................................... 28 Union Electric Co. (Callaway Plant, Unit 1),

CLI-15-11, 81 NRC 546 (2015)............................................................................................... 29 USEC Inc. (Am. Centrifuge Plant),

CLI-06-10, 63 NRC 451 (2006)................................................................................... 10, 17, 29

Acts of Congress Administrative Procedure Act of 1946, Pub. L.79-404, 60 Stat. 237 (codified as amended at 5 U.S.C. ch. 5, subch. I § 500 et seq.).............................. 14, 15, 18, 19 Atomic Energy Act of 1954, Pub. L.83-703, 69 Stat. 919 (codified as amended at 42 U.S.C. ch. 14)........................................................................... 5, 14 Coastal Zone Management Act of 1972, Pub. L.92-583, 86 Stat. 1280 (codified as amended at 16 U.S.C. ch. 33 § 1451 et seq.)................................................. passim National Environmental Policy Act of 1969, Pub. L.91-190, 83 Stat. 852 (codified as amended at 42 U.S.C. § 4321 et seq.)..................................................................... 7 Sherman Antitrust Act of 1890, Pub. L.51-647, 26 Stat. 209 (codified as amended at 15 U.S.C. §§ 1-7).............................................................................. 17

iv Regulations 10 C.F.R. § 2.206...................................................................................................................... 5, 20 10 C.F.R. § 2.309................................................................................................................... passim 10 C.F.R. § 2.311........................................................................................................................ 1, 9 10 C.F.R. § 50.109.......................................................................................................................... 5 10 C.F.R. § 51.41............................................................................................................................ 7 10 C.F.R. § 51.45............................................................................................................................ 7 10 C.F.R. § 51.53............................................................................................................................ 7 10 C.F.R. § 54.21............................................................................................................................ 6 10 C.F.R. § 54.29............................................................................................................................ 6 10 C.F.R. § 54.3.............................................................................................................................. 4 10 C.F.R. § 54.30.......................................................................................................................... 20 10 C.F.R. Part 2............................................................................................................................... 5 10 C.F.R. Part 51................................................................................................................... 2, 7, 21 10 C.F.R. Part 54................................................................................................................. 5, 20, 23

Other Authorities Changes to Adjudicatory Process; Final Rule, 69 Fed. Reg. 2,182 (Jan. 14, 2004)............................................................................................. 8 Letter from T. Luster, CCC, to T. Jones, Senior Director Regulatory, Environmental and Repurposing, PG&E (Dec. 7, 2023).......................................................... 27 NRC, Process for the Ongoing Assessment of Natural Hazard Information (POANHI),

https://www.nrc.gov/reactors/operating/ops-experience/poanhi.html........................................ 4 NRC, Reactor Oversight Process (ROP),

https://www.nrc.gov/reactors/operating/oversight.html............................................................. 4 NUREG-1437, Rev. 0, Generic Environmental Impact Statement for License Renewal of Nuclear Plants (May 1996).................................................................... 2, 7 NUREG-1437, Rev. 1, Generic Environmental Impact Statement for License Renewal of Nuclear Plants (June 2013).................................................................... 2, 7 NUREG-1437, Rev. 2, Generic Environmental Impact Statement for License Renewal of Nuclear Plants (Feb. 2024)..................................................................... 2, 7 Transcript of Diablo Canyon Nuclear Power Plant, Units 1 & 2, License Renewal Hearing, May 22, 2024 (revised) (June 22, 2024)................................. passim

v I. INTRODUCTION

Pursuant to 10 C.F.R. § 2.311(b), Pacific Gas and Electric Company (PG&E) submits

this Brief in Opposition to the Appeal of LBP-24-6 (Appeal), filed by San Luis Obispo

Mothers for Peace, Friends of the Earth, and the Environmental Working Group (collectively,

Petitioners).1 In LBP-24-6,2 the Atomic Safety and Licensing Board (Board) denied

Petitioners March 5, 2024 hearing request and petition to intervene in this proceeding

(Petition).3 The Board denied the Petition after unanimously concluding that none of

Petitioners three proposed contentions were admissible. On appeal, Petitioners purport to

challenge all three of the Boards contention admissibility rulings. As explained below, the

Commission should AFFIRM the Boards contention admissibility rulings in LBP-24-6.

This proceeding pertains to the License Renewal Application (LRA) filed by PG&E to

seek extensions of the U.S. Nuclear Regulatory Commission (NRC) operating licenses for

Diablo Canyon Power Plant, Units 1 and 2 (DCPP). The NRCs license renewal process

includes both safety and environmental reviews; but the safety review focuses on one thing:

aging management. In Contentions 1 and 2, Petitioners sought an evidentiary hearing on certain

ongoing operational matters (related to seismic topics and the Unit 1 reactor pressure vessel

(RPV)) that are not related to aging management. Such matters have long been governed by

other regulatory processes with separate avenues for public participation. Thus, as the Board

correctly held, these challenges are inadmissible because they we brought in the wrong forum.

1 Notice of Appeal of LBP-24-6 by [Petitioners] (July 29, 2024) (ML24211A2887); Brief by [Petitioners] on Appeal of LBP-24-6 (July 29, 2024) (ML24211A288) (Appeal).

2 Pac. Gas & Elec. Co. (Diablo Canyon Nuclear Power Plant, Units 1 and 2), LBP-24-6, 100 NRC __

(July 3, 2024) (slip op.) (ML24185A197).

3 Re-filed Hearing Request by [Petitioners] for Hearing on [PG&Es] License Renewal Application for the Diablo Canyon Nuclear Plant (Mar. 5, 2024) (ML24067A079) (Petition).

To be clear, that does not mean that Petitioners safety concerns in Contentions 1 and 2

have been ignored.4 In fact, those same concerns already have been and are being given due

consideration in an appropriate forum.5 So, beyond the legally required outcome here (as

correctly determined by the Board), there also is no practical reason that a duplicative hearing

must be held on these topics in this limited-scope license renewal proceeding.

Petitioners also proffered two environmental claims. In Contention 1, Petitioners brought

a challenge regarding the analysis of potential environmental impacts from a hypothetical

accident. However, that topic was analyzed in the NRCs Generic Environmental Impact

Statement for License Renewal of Nuclear Power Plants (GEIS).6 And the corresponding

conclusions from the GEIS have been codified in NRC regulations following notice and

comment rulemaking.7 Thus, Contention 1 purported to challenge to NRC environmental

regulations, not the LRA. As a matter of law, challenges to regulations cannot be brought in

individual licensing proceedings such as this, absent a special waiver from the Commission.

Petitioners neither requested nor received one here. So, as the Board again correctly held, that

portion of Contention 1 also was inadmissible as a matter of law. Finally, in Contention 3,

Petitioners essentially asked the Board to admit a placeholder contention on a baseless theory

that the NRC might decide in the future to willfully violate the Coastal Zone Management Act

4 See, e.g., Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 30 n.130).

5 Id. at __ (slip op. at 4-5).

6 See NUREG-1437, Generic Environmental Impact Statement for License Renewal of Nuclear Plants (Rev. 0, May 1996, ML040690705 (Vol. 1)) (1996 GEIS)); (Rev. 1, June 2013, ML13106A241 (Vol. 1)) (2013 GEIS); (Rev. 2, Aug. 2024, ML24086A526 (Vol. 1)) (2024 GEIS).

7 See 10 C.F.R. Part 51, Subpart A, app. B, tbl. B-1 (Design Basis Accidents and Severe Accidents).

2 (CZMA).8 Based on the longstanding doctrine that agencies are entitled to a presumption of

administrative regularity, the Board correctly rejected that demand.

The Appeal provides no basis to overturn any of the well-reasoned bases for rejecting

Contentions 1, 2, and 3. As an overarching matter, the applicable standard of review on appeal

places an affirmative burden on the appellant to identify an error of law or abuse of

discretion in the challenged ruling.9 Oddly, the Appeal fails even to mention this appellate

standard. Petitioners do not acknowledge it; engage with it; or marshal fact and law toward any

argument that LBP-24-6 is affected by an error of law or abuse of discretion. By disregarding

the applicable standard, Petitioners have failed to meet their affirmative burden. The Appeal

should be rejected on its face for that reason alone.

Furthermore, the Appeal largely repeats arguments that were presented to (and rejected

by) the Board, without disputing the Boards analysis. But Commission precedent is clear that

merely disputing the outcomeand hoping for a di fferent result from the Commission without

identifying reversible erroris categorically insufficient for an appeal. 10

Ultimately, Petitioners have not identified a ny error of law or abuse of discretion in

LBP-24-6. Thus, for the many reasons detailed below, the Commission should AFFIRM the

Boards well-reasoned admissibility rulings on each of the three contentions.

8 Coastal Zone Management Act of 1972, Pub. L.92-583, 86 Stat. 1280 (codified as amended at 16 U.S.C.

ch. 33 § 1451 et seq.).

9 Luminant Generation Co., LLC (Comanche Peak Nuclear Power Plant, Units 3 & 4), CLI-12-7, 75 NRC 379, 386 (2012) (citing Progress Energy Fla., Inc. (Levy Cty. Nuclear Power Plant, Units 1 & 2), CLI-10-2, 71 NRC 27, 29 (2010); AmerGen Energy Co., LLC (Oyster Creek Nuclear Generating Station), CLI-09-7, 69 NRC 235, 259 (2009); Luminant Generation Co., LLC (Comanche Peak Nuclear Power Plant, Units 3 & 4),

CLI-11-9, 74 NRC 233, 237 (2011)).

10 See, e.g., Fla. Power & Light Co. (Turkey Point Nuclear Generating Units 6 & 7), CLI-17-12, 86 NRC 215, 219 (2017).

3 II. BACKGROUND & LEGAL STANDARDS

A. NRC Processes and Public Participation

In their original Petition, and again on Appeal, Petitioners seek to conflate and blur the

line between two distinct NRC regulatory processes and their corollary opportunities for public

participation. Thus, a brief summary of those processes and opportunities is instructive to the

discussion on appeal, namely: the NRCs ongoing operational oversight and associated citizen

enforcement petition opportunity; and the NRCs power reactor license renewal proceeding and

associated licensing hearing opportunity.

1. Ongoing Operational Oversight

Every nuclear power plant, including DCPP, is subject to rigorous NRC operational

oversight throughout the entire life of the licensed facility. Licensees are required to comply

with stringent requirements associated with the full range of radiological safety, security, and

environmental matters, including those related to seismic matters and RPV integrity, among

many others. These obligations are collectively referred to as the plants Current Licensing

Basis (CLB).11 The CLB is established at the time of initial plant licensing; it evolves

throughout the life of the facility; and it carries forward into any renewal term. The NRC

maintains a robust inspection and oversight program to ensure that CLB requirements are met

throughout the plants lifecycle. Key features include the NRCs Reactor Oversight Process,

which provides a comprehensive framework for continuous assessment and inspection of

licensee facilities, and the NRCs Process for the Ongoing Assessment of Natural Hazards

Information (POANHI), which is staffed by technical experts on external hazards.12

11 See 10 C.F.R. § 54.3(a) (defining the CLB).

12 See Reactor Oversight Process (ROP), NRC.GOV, https://www.nrc.gov/reactors/operating/oversight.html (last visited Aug. 20, 2024).Process for the Ongoing Assessment of Natural Hazard Information (POANHI),

NRC.GOV, https://www.nrc.gov/reactors/operating/ops-experience/poanhi.html (last visited Aug. 20, 2024).

4 The NRC employs a diverse toolkit for addressing safety issues throughout the life of the

plant, including authority to issue orders to modify, suspend, or revoke a license.13 For example,

the NRC may take enforcement action to address licensee noncompliance with safety regulations

or may invoke its backfit14 process to modify a plants CLB if needed to address new safety

information (including new seismic information).

Although enforcement and backfit actions are most often initiated by the NRC staff, any

member of the public may raise potential health, sa fety, or other compliance issues related to a

plants CLB via a citizen enforcement petition. This process is described in 10 C.F.R. § 2.206

(and such petitions are often referred to as 2.206 petitions). The NRC can institute an action to

modify, suspend, or revoke a license, or take other appropriate action to resolve the issue, as

appropriate. This is the well-established process through which members of the public can

challenge a plants CLB or seek enforcement of its requirements.

2. License Renewal Proceedings

Pursuant to the Atomic Energy Act (AEA),15 power reactor licensees can seek, and the

NRC can issue, a renewed operating license to permit continued operation beyond the expiration

of the plants initial operating license. A renewe d license carries forward the plants CLB. And

the NRCs ongoing operational oversight process covers the full range of safety, security, and

environmental matters for plant operation regardless of the operating term, initial or renewal.

Thus, in promulgating 10 C.F.R. Part 54, the NRC reasonably chose to define its safety review

framework as including only a limited scope of issues that are particularly germane to extended

operationnamely, those focused on aging management. The purpose of the license renewal

13 See generally 10 C.F.R. Part 2, Subpart B.

14 See 10 C.F.R. § 50.109.

15 Atomic Energy Act of 1954, Pub. L.83-703, 69 Stat. 919 (codified as amended at 42 U.S.C. ch. 14).

5 proceeding is to ensure that th e licensee can successfully manage the detrimental effects of

aging, during extended operations,16 on certain long-lived, passive components that are

important to safety.17 By design, license renewal proceedings are not intended to duplicate the

NRCs ongoing oversight of operating reactors.18 The key components of a license renewal

application include its aging management programs (AMPs) and time-limited aging analyses

(TLAAs). Notably, the NRC has published guidance (known as the GALL Report)

containing AMPs generically determined to satisfy Part 54, which applicants may adopt.19 If

adopted, and otherwise consistent with the GALL Report, those AMPs are entitled to a rebuttable

presumption of regulatory sufficiency.20

Through notice and comment rulemaking, the Commission purposefully chose to exclude

operational oversight and CLB matters from the scope of its license renewal proceedings. As the

Commission explained:

In establishing its license renewal process, the Commission did not believe it necessary or appropriate to throw open the full gamut of provisions in a plants [CLB] to re-analysis during the license renewal review. The [CLB] represents an evolving set of requirements and commitments for a specific plant that are modified as necessary over the life of a plant to ensure continuation of an adequate level of safety. It is effectively addressed and maintained by ongoing agency oversight, review, and enforcement.

Just as these oversight programs help ensure compliance with the

[CLB] during the original license term, they likewise can reasonably be expected to fulfill this function during the renewal term.21

16 Entergy Nuclear Operations, Inc. (Indian Point, Units 2 & 3), CLI-15-6, 81 NRC 340, 347 (2015).

17 Id.; see also 10 C.F.R. §§ 54.21, 54.29(a).

18 Indian Point, CLI-15-6, 81 NRC at 347.

19 See NUREG-1801, Rev. 2, Generic Aging Lessons Learned (GALL) Report (Dec. 2010) (ML103490041).

20 See generally Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 45-47).

21 Fla. Power & Light Co. (Turkey Point Nuclear Generating Plant, Units 3 & 4), CLI-01-17, 54 NRC 3, 9 (2001)

(citation omitted).

6 Furthermore, the NRC also conducts a separate environmental review as part of any

license renewal proceeding. The objective of that review is to analyze the potential

[environmental] impacts of an additional 20 years of nuclear power plant operation[s].22 This

review is required to satisfy the National Environmental Policy Act (NEPA).23 The NRCs

NEPA regulations are codified in 10 C.F.R. Part 51.

For license renewal, Part 51 is based in part on the GEIS, which summarizes the findings

of a systematic inquiry into the potential environmental consequences of license renewal.24

Based on these analyses, the GEIS outlines two types of environmental issues:

  • Generic Category 1 issues, for which the NRC made generic conclusions applicable to all existing nuclear power plants; 25 and
  • Plant-Specific Category 2 issues, for which site-specific analyses are required for each individual license renewal proceeding.26

Applicants must submit an environmental report (ER) that analyzes all Category 2

issues on a plant-specific basis.27 But, for Category 1 issues, impact conclusions are codified

(via notice and comment rulemaking) in 10 C.F.R. Part 51, Subpart A, Appendix B and are not

required to be re-analyzed in each individual license renewal application.28 Ultimately, the NRC

Staff draws upon the applicants ER, the GEIS, and other sources to produce a plant-specific

Supplemental Environmental Impact Statement (SEIS).29

22 Id.

23 National Environmental Policy Act of 1969, Pub. L.91-190, 83 Stat. 852 (codified as amended at 42 U.S.C. § 4321 et seq.).

24 See 1996 GEIS at xxxiv; see 2013 GEIS at S-4; see also 2024 GEIS at xxxiv.

25 Turkey Point, CLI-01-17, 54 NRC at 11.

26 See id. at 11-12 (discussing Category 2 issues).

27 See 10 C.F.R. §§ 51.41, 51.45, 51.53(c)(3)(ii).

28 Id. § 51.53(c)(3)(i). Licensees may incorporate by reference those analyses and the codified impact findings from Appendix B. See id. § 51.53(a).

29 See 2013 GEIS at 1-16 to 1-18.

7 In license renewal proceedings, public participation opportunities include various public

meetings, the opportunity to submit written comments on environmental scoping and the draft

SEIS, and the opportunity to request a hearing to challenge the application. Pursuant to

10 C.F.R. § 2.309(a)(1), a hearing request may be granted only if the presiding officer

determines that the petitioner has demonstrated standing and has proposed at least one

admissible contention that meets the admissibility criteria in 10 C.F.R. § 2.309(f)(1).30 Failure to

satisfy any one of these six admissibility crit eria requires that a proposed contention be

rejected.31 These criteria are strict by design.32 The petitioner alone bears the affirmative

burden to satisfy these criteria. 33

As particularly relevant here, to be admissible, contentions must fall within the scope of

the proceeding, and must demonstrate a genuine dispute with the application on a material issue

of fact or law. Contentions challenging ongoing agency oversight and a plants CLB, or codified

impact conclusions from the GEIS, are inadmissibl e as beyond the limited scope of the license

30 To be admissible, a proposed contention must: (i) provid e a specific statement of the issue of law or fact to be raised or controverted; (ii) provide a brief explanation of the basis for the contention; (iii) demonstrate that the issue raised is within the scope of the proceeding; (iv) demonstrate that the issue raised is material to the findings the NRC must make to support the action involved in the proceeding; (v) provide a concise statement of the alleged facts or expert opinions, including refere nces to the specific sources and documents that support the petitioners position and upon which the petitioner intends to rely; and (vi) provide sufficient information to show that a genuine dispute exists with the applicant on a material issue of law or fact. 10 C.F.R. § 2.309(f)(1) 31 See Changes to Adjudicatory Process; Final Rule, 69 Fed. Reg. 2,182, 2,221 (Jan. 14, 2004); see also Private Fuel Storage, LLC (Indep. Spent Fuel Storage Installation), CLI-99-10, 49 NRC 318, 325 (1999).

32 Dominion Nuclear Conn., Inc. (Millstone Nuclear Power Station, Units 2 & 3), CLI-01-24, 54 NRC 349, 358 (2001).

33 See Entergy Nuclear Operations, Inc. (Palisades Nuclear Plant), CLI-15-23, 82 NRC 321, 325, 329 (2015)

([t]he proponent of a contention is responsible for formulating the contention and providing the necessary support to satisfy the contention admissibility requirements and it is Petitioners responsibility, not the Boards, to formulate contentions and to provide the necessary information to satisfy the basis requirement for admission) (citation omitted).

8 renewal hearing opportunity.34 The Commission long ago determined that it would be

unnecessary and wasteful to permit such challengesbecause these issues are addressed

through different regulatory pathways.35

B. Standard of Review on Appeal

NRC regulations at 10 C.F.R. § 2.311(c) permit petitioners to appeal orders denying

hearing requests and petitions to intervene, as of right, on the sole question of whether the

request and/or petition should have been granted.36 The Commission generally provides

substantial deference 37 to Board decisions on contention admissibility, but will reverse a

Boards ruling if there has been an erro r of law or an abuse of discretion.38 Thus, the

Commission generally is disinclined to upset licensing board findings, particularly on matters

involving fact-specific issues or consideration of expert affidavits or submissions.39 The

Commission reviews questions of law de novo, and will reverse a licensing boards legal rulings

if they are a departure from[,] or contrary to[,] established law.40 To prevail on an abuse of

discretion claim, the appellant must persuade the Commission that a reasonable mind could

reach no other result.41 An appeal that simply restates the petitioners arguments, is not a valid

34 Turkey Point, CLI-01-17, 54 NRC at 7-9; Entergy Nuclear Vt. Yankee, LLC (Vt. Yankee Nuclear Power Station), CLI-07-3, 65 NRC 13, 17-18 (2007) (Because the generic environmental analysis was incorporated into a regulation, the conclusions of that analysis may not be challenged in litigation.).

35 Turkey Point, CLI-01-17, 54 NRC at 7.

36 10 C.F.R. § 2.311(c).

37 Crow Butte Res., Inc. (Marsland Expansion Area), CLI-14-2, 79 NRC 11, 26 (2014).

38 Comanche Peak, CLI-12-7, 75 NRC at 386 (citing Levy Cty., CLI-10-2, 71 NRC at 29; Oyster Creek, CLI-09-7, 69 NRC at 259; Comanche Peak, CLI-11-9, 74 NRC at 237).

39 Hydro Res., Inc. (Crownpoint, NM), CLI-06-1, 63 NRC 1, 2 (2006).

40 Oyster Creek, CLI-09-7, 69 NRC at 259 (citation omitted).

41 Fla. Power & Light Co. (Turkey Point Nuclear Generating Plant, Units 3 & 4), ALAB-952, 33 NRC 521, 532 (1991), affd, CLI-91-13, 34 NRC 185 (1991) (internal citation omitted).

9 appeal.42 As the Commission has made clear, it will not consider new arguments raised for the

first time on appeal and that the licensing board never had a chance to consider.43

III. PETITIONERS FAIL TO IDENTIFY ANY ERROR OF LAW OR ABUSE OF DISCRETION IN THE BOARDS CONTENTION ADMISSIBILITY RULINGS

On appeal, Petitioners assert that the Board erred in its admissibility rulings as to all three

proposed contentions. But, as explained further below, Petitioners identify no error of law or

abuse of discretion by the Board. Indeed, the Appeal is conspicuously devoid of any meaningful

engagement with the relevant legal standards for proposed contentions, much less the Boards

application of law and fact in the context of those standards. Instead, Petitioners recycle

arguments from their Petition alongside conclusory assertions that the Board erroneously and

arbitrarily denie[d] the public a hearing on crucial safety and environmental issues.44 This

approach, however, is insufficient to satisfy the standard of review on appeal, and wholly fails to

justify abandoning the substantial deference the Commission typically affords such decisions.

A. Petitioners Identify No Error of Law or Abuse of Discretion on Contention 1

In Contention 1, Petitioners raised both safety and environmental claims on seismic

matters. Petitioners safety claims purported to challenge seismic information related to the

plants CLB. And their environmental claims purported to challenge the NRCs codified

Category 1 analyses regarding potential environmental impacts of hypothetical accidents caused

by earthquakes. The Board held that: Petitioners safety claims failed to dispute any information

42 Shieldalloy Metallurgical Corp. (Newfield, N.J. Facility), CLI-07-20, 65 NRC 499, 503-05 (2007); Turkey Point, CLI-17-12, 86 NRC at 219 ([r]ecitation of an appellants prior positions in a proceeding or statement of general disagreement with a decisions result is not suff icient; the appellant must point out the errors in the Boards decision.) (citations omitted).

43 USEC Inc. (Am. Centrifuge Plant), CLI-06-10, 63 NRC 451, 458 (2006) (quotations and citation omitted).

The purpose of an appeal is to point out errors made in the Boards decision, not to present arguments and evidence never provided to the Board. Id. (quotations and citation omitted).

44 Appeal at 1.

10 in the LRA; their environmental claims improperly challenged NRC regulations without the

necessary waiver; and both claims were beyond the scope of this license renewal proceeding.

On appeal, Petitioners present their disagreement with the Boards ruling, but wholly

disregard the appellate standard of review. Because they present no argument or assertion aimed

at that standard, they have not met their affirmative burden to demonstrate its satisfaction here.

Moreover, as detailed below, Petitioners arguments do not otherwise amount to identification of

any error of law or abuse of discretion in LBP-24-6. Accordingly, the Commission should

AFFIRM the Boards ruling on Contention 1.

1. Petitioners Identify No Error of Law or Abuse of Discretion in the Boards Scope Determination

In the proceedings before the Board, Petitioners squarely acknowledged that their safety

and environmental claims in Contention 1 were beyond the limited scope of license renewal

proceedings as defined in the plain text of NRC regulations.45 As to safety, Contention 1 sought

to challenge seismic issues within the plants CLB, which is addressed through separate

processes and is outside the scope of license renewal. As to environmental matters, Contention 1

sought to challenge, without the required waiver, the NRCs codified analysis of the

environmental impacts of hypothetical accidents caused by earthquakes during a license renewal

term. Notably, certain seismic safety or environmental issues do, in fact, fall within the scope of

license renewal, such as those related to aging management ( i.e., AMPs or TLAAs) or severe

accident mitigation alternatives (SAMAs).46 But Petitioners raised no such challenges in

45 See, e.g., Appeal at 5 (admitting 10 C.F.R. Parts 51 and 54 do not require what Petitioners demand in Contention 1); Transcript of Diablo Canyon Nuclear Power Plant, Units 1 & 2, License Renewal Hearing, May 22, 2024 (revised) at 47-48 (June 22, 2024) (ML24179A075) (Tr.) (admitting that Contention 1 does not fit under the standard rules [for license renewal] that have be en in effect since 1991 and that agreeing that apart from words from Commissioner Hanson, seismic issues do not belong in a license renewal proceeding).

46 Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 28, 35).

11 Contention 1. Instead, Petitioners opted to challenge only out-of-scope issues, based on an

unsupported theory that their challenges were nevertheless admissible due to a brief exchange at

a Congressional hearing.

Specifically, at that hearing,47 Senator Padilla asked Chair Hanson for [a]ny comments

on safety standards with specific concern about seismic risk at Diablo Canyon.48 Chair

Hanson answered by saying:

We are going to be looking at updated safety information as part of that license renewal process. We did require all plants to take a look at the enhanced, relook at their risks after Fukushima. Diablo, of course, did look at their seismic risk and we will take another look at that as part of the license renewal process.49

Petitioners theory was two-fold. First, as a factual matter, Petitioners argued that the

Chairs unscripted remark should be interpreted as contradicting the license renewal scope

limitations in NRC regulations. Petitioners read that statement as a commitment to conduct a

broad[er] review of seismic matters than required by N RC license renewal regulations and to

examine seismic risk with new eyes and in a comprehensive manner, and that it will be

conducted as part of the license renewal process.50

Second, as a legal matter, Petitioners speculated (without citation to any supporting legal

authority) that the statement of a single witness at a Congressional hearing creates binding legal

obligations capable of repealing regulations promulgated through notice and comment

rulemaking. According to Petitioners, the codified license renewal scope limitations long-

embedded in 10 C.F.R. Parts 51 and 54 were effectively repealed (albeit solely for DCPP, and

47 The complete question and answer on which Petitioners rely is provided in the Boards decision. Id. at __ (slip op. at 28-29).

48 Id.

49 Id. at __ (slip op. at 29).

50 Appeal at 13; see also Tr. at 65-67.

12 solely on seismic issues) by virtue of Chair Hansons remark without further action by Congress

or the Commission.

After duly considering Petitioners arguments, the Board was not persuaded that

anything in Chair Hansons testimony expressly, or even by implication, operates to expand the

codified scope of review on license renewal.51 Notably, the Board reached this conclusion on

solely factual grounds, rejecting Petitioners interpretation of Chair Hansons statement; it did

not reach (and did not need to reach) a definitive conclusion regarding Petitioners dubious

speculation on the legal effect of Congressional testimony. Ultimately, the Board unanimously

concluded that Contention 1 was inadmissible as beyond the scope of this proceeding, contrary

to 10 C.F.R. § 2.309(f)(1)(iii). The Appeal does not expose any error of law or abuse of

discretion in that conclusion.

a. Petitioners Identify No Abuse of Discretion in the Boards Factual Conclusion Regarding the Meaning of Chair Hansons Remark

As noted above, the Board found nothing in the text of Chair Hansons testimony that

clearly expressed a plan to depart from the NRCs codified license renewal process. As the

Board noted, even if Petitioners claims regarding the legal effect of that testimony were

correct, there is nothing in that testimony indicating, and Chair Hanson did not expressly

state, any plan to broaden the license renewal seismic review to include CLB issues or

previously codified environmental analyses.52 Given that the Chairs remark can be read in

harmony53 with the existing codified scope provisions (e.g., consideration of seismic issues in

51 Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 35).

52 Id. at __ (slip op. at 30).

53 Id.

13 the context of AMPs or SAMAs), the Board found Petitioners interpretation of the testimony to

be unavailing.

The Appeal largely glosses-over that portion of the Boards ruling, focusing instead on

the legal issue. Petitioners only acknowledgement of the Boards testimony interpretation, and

their sole attempt to dispute it, appears in a si ngle footnote. Therein, they disparage the Boards

view as a crabbed alternative interpretation.54 Assuming that criticism could be viewed as a

claim that the Board abused its discretion, it falls far short of the required demonstration. To

prevail on an abuse of discretion claim, the appellant has an affi rmative burden to show that a

reasonable mind could reach no other result.55 They have neither attempted nor done so here.

According to Petitioners, the entire Commission expressly, purposefully, and

unanimously intended to enact a sweeping and unprecedented repeal of its longstanding license

renewal regulationscontrary to the notice and comment requirements of the Administrative

Procedure Act (APA);56 devoid of any policy vote required by the AEA; and without

announcing any legal authority or precedent for such a maneuvervia a single, unscripted

remark presented in the broadest (i.e., vaguest) possible terms at a Congressional hearing.

Petitioners would have the Commission believe that this extraordinary reading is the only

reasonable interpretation of the subject testimony for one single reason: because the question and

answer at the Congressional hearing were presented in the broadest possible terms.57 But they

fail to explain why a broad discussion mandates the extraordinary result they seek here. And

they offer no reason why the Boards logical reading, in which the question-and-answer

54 Appeal at 13 n.35.

55 Turkey Point, ALAB-952, 33 NRC at 532, affd, CLI-91-13, 34 NRC 185 (1991) (internal citation omitted).

56 Administrative Procedure Act of 1946, Pub. L.79-404, 60 Stat. 237 (codified as amended at 5 U.S.C. ch. 5, subch. I § 500 et seq.).

57 Appeal at 13 n.35.

14 exchange can be read in harmony with existing regulations, is not one that a reasonable mind

could reach. Indeed, the Boards interpretation is factually substantiated and imminently

reasonable.58 And it is entitled to substantial deference here. Thus, Petitioners have not

demonstrated an abuse of discretion by the Board.

b. Petitioners Arguments Regarding the Legal Effect of Congressional Testimony Provide No Grounds for Reversal Because They Are Irrelevant to the Outcome of LBP-24-6, Were Not Timely Raised, and Otherwise Fail to Demonstrate Any Error of Law

As noted above, Petitioners argued in their Petition, and re-argue in their Appeal, that

Contention 1 falls within the scope of this license renewal proceeding only because Chair

Hansons statement in a Congressional hearing overrode the APA and the NRCs scope

limitations as codified in Parts 51 and 54.59 But, in the proceedings before the Board,

Petitioners did not cite [any] authority for the proposition that such testimony is binding. 60

Thus, the Board conducted its own legal research. The Board identified a U.S. Supreme Court

case and a 9th Circuit case holding that statements to Congress can neither create legally

binding obligations nor expand and contract agency jurisdiction.61 The Board also reviewed

two non-binding district court cases noting that Congressional testimony could be viewed as

helpful and persuasive or otherwise clarify how existing regulations operate.62

58 Chair Hansons statement regarding NRC plans to look at seismic issues in the license renewal proceeding can be read in harmony with existing regulations requiring consideration of in-scope seismic topics. As noted above, seismic issues are within the scope of license renewal to the extent they are related to aging management (i.e., AMPs or TLAAs) or mitigation alternatives (i.e., SAMAs).

59 Appeal at 11-12; see Petition at 13-15 (discussing Chair Hansons statement as requiring the NRC to an extra safety review).

60 Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 29 n.127).

61 Id. (discussing Lincoln v. Virgil, 508 U.S. 182, 194 (1993) and Ruiz v. Morton, 462 F.2d 818, 822 (9th Cir.

1972)).

62 Id. (discussing Texas v. United States, 86 F. Supp. 3d 591, 654 n.64 (S.D. Tex. 2015) and United States v.

Morgan, 118 F. Supp. 621 (S.D.N.Y. 1953)).

15 The Board expressed grave doubts that a statement during a congressional hearing,

even by the Commissions Chair, can otherwis e expand the scope of a licensing proceeding

beyond that defined by the Commissions adjudicatory precedent or hearing opportunity

notice.63 However, the Board stopped short of reaching a definitive conclusion regarding the

legal effect of Congressional testimony. Instead, the Board simply characterized the case law as

unclear and resolved the question on factual grounds alone.64 On appeal, Petitioners argue that

the Boards decision on Contention 1 should be reversed because the two district court cases

cited by the Board support[] their theory that Chair Hansons statement is legally binding.65

But these arguments provide no grounds for reversal for at least three reasons.

First, assuming arguendo that Petitioners are correct regarding the legal effect of

Congressional testimony (they are not), that circumstance would have no impact on the

admissibility ruling for Contention 1. The Board correctly rejected the contention on the factual

issue alone, mooting the corresponding legal question. As noted above, the Board concluded

that Chair Hansons statement was consistent with existing regulations that require consideration

of in-scope seismic issues in license renewal proceedings. Accordingly, the Boards

determination that the case law on the legal effect of Congressional testimony is unclear, even

if erroneous, would constitute nothing more than harmless error, which provides no grounds for

reversal.66

Second, the Appeal presents entirely new arguments seeking to equate the factual

circumstances of the two district court cases wi th the instant proceeding. But those arguments

63 Id. at __ (slip op. at 29).

64 Id. at __ (slip op. at 29 n.127).

65 Appeal at 12.

66 In the Matter of David Geisen, CLI-10-23, 72 NRC 210, 247 (2010) (error without prejudice is harmless and provides no grounds for reversal on appeal).

16 were never presented to the Board. In fact, the Board identified those cases in the first instance.

Petitioners presented zero arguments about those casesor any other authority allegedly

supporting their novel and speculative legal theoryto the Board. As the Commission has made

clear, it simply will not consider new argum ents raised for the first time on appeal.67 The Board

cannot be faulted for not considering unpresented arguments.

And third, the district court cases cited by Petitioners, United States v. Morgan,68 and

Texas v. United States,69 do not demonstrate any legal error by the Board. As explained below,

those cases do not support Petitioners theory that Congressional testimony can conjure new

binding legal obligations and override codified regulations. And those cases certainly do not

evidence any departure from established law.70

In Morgan, the government brought an action to restrain several defendants from

continuing alleged violations of the Sherman Anti-Trust Act.71 In determining whether the

defendants actions violated anti-trust law, the district court found persuasive and helpful an

advisory opinion from the U.S. Securities and Exchange Commission (SEC). That opinion,

consisting of a majority opinion (joined by three commissioners) and a concurring opinion

(authored by a fourth commissioner), provided the agencys views on the application of

[existing] antitrust laws to the securities field. 72 Notably, the district court disavowed any

binding legal effect of the opinion, expressly stating that the agencys views are not binding

67 USEC, CLI-06-10, 63 NRC at 458 (quotations and citation omitted). The purpose of an appeal is to point out errors made in the Boards decision, not to present arguments and evidence never provided to the Board.

Id. (quotations and citation omitted).

68 118 F. Supp. 621 (S.D.N.Y. 1953).

69 86 F. Supp. 3d 591 (S.D. Tex. 2015).

70 Oyster Creek, CLI-09-7, 69 NRC at 259 (citation omitted).

71 Sherman Antitrust Act of 1890, Pub. L.51-647, 26 Stat. 209 (codified as amended at 15 U.S.C. §§ 1-7).

72 Morgan, 118 F. Supp. 621, 698-99 (S.D.N.Y. 1953).

17 on me, or upon any other court or judge.73 Thus, Morgan stands for the unremarkable

proposition that an agency advisory opinion, much like an amicus brief, can be helpful to a

court. To be clear, Morgan did not involve Congressional testimony; it said nothing about the

legal effect of Congressional testimony or the constraints Congress placed on agency action in

the APA; it did not conclude that any agency statements were binding on anyone; and it

provides no support for a theory that an agency can be bound or required to act contrary to its

own regulations. At bottom, that case provides no obvious support for Petitioners claims and

certainly does not demonstrate that the Boards ruling is a departure from settled lawand the

Appeal offers no explanation otherwise.

Texas also contradicts Petitioners position. In that case, a group of states sought

injunctive relief in district court to prevent th e federal government from implementing a program

intended to provide legal status to individuals in the country illegally.74 The program was not

promulgated via rulemaking or executive order, but rather was instituted via an agency

memorandum. A central question in the case was whether the program was properly

characterized as an exercise of prosecutorial discretion (i.e., not removing people from the

country under immigration laws), which is presumptively unreviewable. 75 Although part of the

program arguably involved enforcement matters, the court consid ered whether the program also

affirmatively conferred certain benefits.76 It was in this context that the district court discussed,

in a footnote, the Congressional testimony of an IRS commissioner. The Commissioner

explained how the new program interacted with existing tax rules and confirmed that it would

73 Id. at 699.

74 Texas v. United States, 86 F. Supp. 3d 591 (S.D. Tex. 2015).

75 Id. at 652-56 (discussing Heckler v. Chaney, 470 U.S. 821 (1985)).

76 Id. at 654-55.

18 effectively bestow a new tax benefit on certain individuals.77 In the courts view, this supported

a conclusion that the program went beyond a mere exercise of enforcement discretion, and thus

the government had improperly legislated a substantive rule without complying with the

procedural requirements of the [APA].78

In summary, the court simply relied on the Commissioners explanation of how existing

tax rules operate; it did not find that the tes timony imposed some new, binding obligation, or

otherwise authorized a departure from existing rules. Quite the oppositethe court found that

conferring new tax benefits without engaging in notice and comment rulemaking would violate

the APA. So too here. Applying the Texas decision to this proceeding, requiring the NRC to

take an action outside its codified regulatory process without engaging in notice and comment

rulemaking also would violate the APA.79 Thus, Texas also does not support any claim that

LBP-24-6 is affected by legal error.

Ultimately, the Appeal fails to demonstrate any error of law or abuse of discretion in the

Boards scope conclusion as to Contention 1.

2. Petitioners Identify No Error of Law or Abuse of Discretion in the Boards Genuine Dispute Ruling

In LBP-24-6, the Board also concluded that the safety claims in Contention 1 are

inadmissible because Petitioners failed to satisfy the genuine dispute requirement in 10 C.F.R.

§ 2.309(f)(1)(vi). Specifically, the Board held that Petitioners safety claims failed to dispute the

77 Id. at 654 n.64.

78 Id. at 677.

79 The Board squarely invited Petitioners to address APA requirements in the proceedings below, but Petitioners sidestepped the issue. Specifically, in response to a question from Judge Arnold on how comments of one Commissioner in response to a senators question toss [the fairly rigorous rule making process] out the window, Petitioners offered no discussion of the APA and instead merely demurred that they should be able to rely on the statement. Tr. at 57-58.

19 sufficiency of any specific safety content in the LRA and failed to identify the omission of any

content required by 10 C.F.R. Part 54.80 In their Appeal, Petitioners express disagreement with

that conclusion, but again fail to explain how the Boards decision was affected by any error of

law or abuse of discretion.

First, Petitioners decry the Boards conclusion as tautological because the NRCs Part

54 regulations do not require PG&E to address seismic risk in the safety portion of its

application.81 But Petitioners characterization of the regulations is not entirely inaccurate. To

be clear, seismic matters are required to be addressed in the LRA to the extent they are within

the scope of Part 54s aging management requirements. The Board was demonstrably correct in

its observation that, although they could have, Petitioners did not challenge the sufficiency or

omission of any such aging management content in the LRA. Petitioners do not claim otherwise.

Second, Contention 1 was directed at seismic safety matters that are unrelated to aging

managementi.e., those encompassed by the plants CLB and subject to ongoing operational

oversight. In that regard, Petitioners are spot-on that those matters (which have been or are being

reviewed under the appropriate 2.206 petition process) are not required by Part 54 to be

addressed (redundantly) in the LRA.82 And Petitioners acknowledgement of that fact simply

serves to validate the Boards objectively correct conclusion that Contention 1 failed to dispute

the sufficiency or omission of any information required to be presented in the LRA.

Here, Petitioners again fall back to arguing that if Chair Hansons statement is given

binding effect (as shown above, it should not be), then the NRC will need to review in this

license renewal proceeding all seismic matters, including those encompassed by the plants

80 Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 32-33).

81 Appeal at 14.

82 10 C.F.R. § 54.30(b).

20 CLB.83 But even if Petitioners were correct, and the NRC unilaterally committed itself to

conduct some extra-procedural review, that circumstance would not retroactively render PG&Es

application materially defective. Safety conten tions claiming the NRC failed in its review are

per se inadmissible because it is the application, not the review, that must be challenged.84 Here,

PG&E fully complied with all application-content requirem ents and submitted an LRA

consistent with applicable guidance. Petitioners identify no portion of the exchange between

Senator Padilla and Chair Hanson prescriptively defining additional information that must be

included in an LRA. PG&E cannot be faulted for not including in its LRA information that is

not required to be presented therein. Ultimately, th e Appeal identifies no error of law or abuse of

discretion in the Boards plainly correct ruling that Petitioners failed to dispute the LRA.

3. Petitioners Make No Attempt to Identify Any Error of Law or Abuse of Discretion in the Boards Waiver Determination, Which Is Objectively Correct

Lastly, the Board found that the environmental aspect of Contention 1 was inadmissible

for the additional reason that it impermissibly seeks to challenge NRC regulations. That

conclusion is indisputably correct as a matter of law.

Petitioners sought a hearing in this individual licensing proceeding to litigate the potential

environmental impacts of hypothetical accidents initiated by seismic events. That issue,

however, was comprehensively analyzed by the NRC in the GEIS, and the conclusions of that

analysis were codified as Category 1 issues in 10 C.F.R. Part 51 via notice and comment

rulemaking.85 The NRCs rules of practice and procedure funnel challenges to its regulations

83 Appeal at 14.

84 For safety contentions, the Commission has long held that the applicants license application is in issue, not the adequacy of the Staffs review of the application. An intervenor... may not proceed on the basis of allegations that the Staff has somehow failed in its performance. Pac. Gas & Elec. Co. (Diablo Canyon Nuclear Power Plant, Units 1 & 2), ALAB-728, 17 NRC 777, 807 (1983), review denied, CLI-83-32, 18 NRC 1309 (1983).

85 See 10 C.F.R. Pt. 51, App. B. Tbl. B-1.

21 into the rulemaking process and generally prohibit such challenges in individual licensing

proceedings.86 However, litigants can seek a waiver of that general prohibition. Petitioners

neither requested nor received such a waiver here. Thus, in the absence of the required waiver,

the Board had no choice but to conclude that Petitioners challenge was impermissible. The

Appeal offers no specific rebuttal to that conclusion, and therefore fails to demonstrate any error

of law or abuse of discretion.

In sum, the Appeal fails to de monstrate any error of law or abuse of discretion in any of

the Boards reasons for concluding that Contention 1 was inadmissible. Accordingly, the

Commission should AFFIRM the Boards ruling on Contention 1.

B. Petitioners Identify No Error of Law or Abuse of Discretion on Contention 2

Contention 2 alleged that PG&Es LRA does not include an adequate plan to monitor

and manage the effects of aging due to embrittlement of the Unit 1 [RPV] or an adequate

[TLAA] as required by 10 C.F.R. 54.21.87 After due consideration, the Board found

Contention 2 inadmissible for two main reasons: because Petitioners claims were out-of-scope

and because they failed to demonstrate a genuine dispute with the LRA.88 On appeal, Petitioners

merely repeat selected statements from their declarant, Dr. Macdonald. As a matter of law,

repetition of earlier claims is an insufficient basis to overturn a decision on appeal.

In fact, Petitioners offer oneand only onecriticism of the Boards ruling: that it

failed to consider the detail and specificity with which Dr. Macdonald demonstrated that in

86 See 10 C.F.R. § 2.335.

87 Petition at 16.

88 Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 38-47).

22 Shakespeares words, Whats past is prologue.89 Otherwise, the Appeal does not

meaningfully engage with LBP-24-6; fails to distinguish between the Boards two primary bases

for rejecting the contention; and offers no analysis of the admissibility criteria. As further

explained below, Petitioners appealif it can even be characterized as suchwholly fails to

demonstrate any error of law or abuse of discretion in the Boards ruling on Contention 2.

First, the Board held that Contention 2 was beyond the scope of this proceeding, contrary

to 10 C.F.R. § 2.309(f)(1)(iii), because it improperly challenged the plants CLB rather than

aging management issues. Notwithstanding token citations to Part 54 in the Petition, and a few

block quotes from the LRA in Dr. Macdonalds declaration, the Board found that Petitioners

and Dr. Macdonalds claims were almost entirely devoted to actions taken by (or not taken by)

PG&E and/or the Commission prior to PG&Es submission of the LRA.90 As the Board noted,

this backwards-looking gaze is problematic because it challenges a plants CLB, which is outside

the scope of the proceeding.91 In reaching its scope conclusion, the Board relied, in part, on

controlling precedent from the Point Beach proceeding, in which the Commission recently

upheld a licensing boards rejection of a similar contention proffering backwards-looking

criticisms of RPV embrittlement analyses.92 And at oral argument, the Board invited Petitioners

to distinguish their claims, but received a response confirming that Petitioners were, in fact,

seeking to challenge the plants CLB.93 Thus, despite Petitioners thin attempts to cloak the

contention with cursory references to Part 54, the Board determined as a factual matter that

Contention 2 sought to challenge the CLB, and therefore was out of scope.

89 Appeal at 15.

90 Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 39).

91 Id. at __ (slip op. at 39-40).

92 Id.

93 Id. at __ (slip op. at 40).

23 Second, the Board held that Contention 2 failed to demonstrate a genuine dispute with the

LRA, as required by 10 C.F.R. § 2.309(f)(1)(vi). Among other things, that criterion requires

references to specific portions of the application being challengedsomething Petitioners

failed to supply in the Petition itself. The Board acknowledged that a background discussion in

Dr. Macdonalds declaration included block quotes from a few pages of the LRA.94 But it found

that only two were accompanied by any discussion or criticism, neither of which identified a

genuine dispute.95 The Board also reviewed the analytical section of the declaration and found

that it was singularly focused on CLB matters, save two sentences providing conclusory

assertions about license renewal with no link to any particular discussion in the LRA.96 At

oral argument, Petitioners finally revealed that they were attempting to challenge the RPV

AMP.97 But they still did not specify any particular AMP content being challenged.

Nevertheless, the Board acknowledged the LRAs statement that the RPV AMP was consistent

with the GALL Report, which essentially entitles that AMP to a rebuttable presumption of

regulatory sufficiency.98 However, Petitioners failed to acknowledge, grapple with, or otherwise

dispute that relevant information, i.e., made no attempt to rebut that rebuttable presumption.

94 The Board noted that Petitioners failed to identify a single LRA provision in their Petition, as required by 10 C.F.R. § 2.309(f)(1)(vi), and correctly pointed out that their wholesale incorporation by reference of Dr.

Macdonalds declaration contravenes Commission precedent. However, the Boards ruling did not rest on that finding. Thus, Petitioners citation to a licensing board case (which is not controlling here and does not supersede Commission precedent) for the proposition that mere notice pleading suffices in NRC adjudicatory proceedings (it does not), does not demonstrate any error of law or abuse of discretion. See Appeal at 15 n.41 (citing U.S. Dept of Energy (High-Level Waste Repository), LBP-09-6, 69 NRC 367, 408 (2006)).

95 Of those two, one simply overlooked supposedly missing information and the other failed to explain why missing information was required to be included in an LRA. Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 41-43).

96 Id. at __ (slip op. at 43-44).

97 Tr. at 96-97.

98 Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 44).

24 Accordingly, the Board properly concluded that Petitioners had not carried their burden to

demonstrate a genuine dispute on a material issue of fact or law.

On appeal, Petitioners point to no error of law or abuse of discretion in the Boards

ruling. In fact, it is not entirely clear which (if any) arguments in the Appeal may be directed at

which admissibility criterion or which aspect of the Boards ruling. As to the Boards scope

conclusion, Petitioners neither dispute the Boards characterization of their statements at oral

argument nor rebut the Boards application of the Point Beach precedent. And as to the Boards

genuine dispute conclusion, Petitioners say nothing about the GALL Report and (Shakespearian

maxims aside) still do not tell us which portion of the RPV AMP they were purporting to

dispute. Overall, the Appeal does little more than quote or reference certain statements from Dr.

Macdonalds declaration, claiming they are specific and well-supported. But this vague

assertion identifies no error of la w or abuse of discretion; and simply restating earlier arguments

is not a valid appeal.99

Lastly, Petitioners appear to equate Contention 2 with an embrittlement contention that

was admitted in the Indian Point proceeding.100 But they offer no analysis or discussion to

support the suggested equivalence and fail to explain howor even assert thatit somehow

contradicts any portion of LBP-24-6. In any event, a brief review of that decision makes clear

that the specific claims in the Indian Point contention are easily distinguishable from the vague

allegations offered by Petitioners here.101 Simply put, Petitioners unexplained reference to this

99 Shieldalloy, CLI-07-20, 65 NRC at 503-05.

100 Appeal at 17 (citing Entergy Nuclear Operations, Inc. (Indian Point, Units 2 & 3), LBP-08-13, 68 NRC 43, 131 (2008)).

101 Compare, e.g., Indian Point, LBP-08-13, 68 NRC at 131 (noting that the operative challenge in that proceeding was whether an AMP was necessary) with Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 44) (noting that the LRA included an AMP entitled to a presumption of regulatory sufficiency, which Petitioners neither acknowledged nor challenged).

25 non-controlling licensing board decision does not remotely evidence any error of law or abuse of

discretion in the Boards ruling here.

In sum, the Board fully considered Petiti oners arguments and appropriately applied

controlling law. On appeal, Petitioners do not claim or show otherwise. Instead, the Appeal

merely recycles Petitioners original arguments and hopes for a different result from the

Commission. This does not satisfy the appellate standard of review. Accordingly, the

Commission should AFFIRM the Boards ruling on Contention 2.

C. Petitioners Identify No Error of Law or Abuse of Discretion on Contention 3

Among many other environmental laws, federal license applicants (including applicants

for NRC license renewals such as PG&E) and federal agencies (including the NRC) must

comply with the CZMA. As relevant here, there are two main steps in the CZMA process: the

certification, which an applicant must submit to the cognizant state agency (here, the

California Coastal Commission (CCC)) with a copy thereof included in its application to the

federal agency; and the subsequent concurrence from that state agency, which must be

obtained before the license can be issued.102 In Contention 3, Petitioners alleged that the NRC

cannot approve the LRA because PG&E has not yet obtained a CZMA concurrence. The

Board held that this contention was inadmissible for failing to demonstrate a genuine dispute on

a material issue of law or fact, as required by 10 C.F.R. § 2.309(f)(1)(vi). As explained below,

the Boards ruling is manifestly correct, and the Appeal identifies no error of law or abuse of

discretion in the Boards reasoning.

102 A federal agency can also issue a license without a state concurrence if: (1) the state fails to act, or (2) if the state rejects the certification and the applicant prevails on an appeal to the Secretary of Commerce. CZMA, 16 U.S.C. § 1456(c)(3)(A).

26 Based on two key conclusions, the Board essentially found that Contention 3 was unripe.

First, as a matter of settled law that no party disputed, the CZMA concurrence is not required

at the application stage. Thus, as the Board correctly held, its absence from the LRA is not a

cognizable deficiency (and PG&E fully complied with its obligation to provide the

certification in the LRA). Second, as another matter of settled law that no party disputed, the

NRC cannot approve the LRA unless and until that CZMA concurrence is issued. As the

Board again correctly held, in the absence of some indication that the NRC intends to violate the

statute by approving the LRA without that concurrence (which no party alleged), no genuine

dispute currently exists on the matter of CZMA complian ce. On appeal, Petitioners do not

contest any of these fundamental aspects of the Boards ruling. Instead, Petitioners raise two

tertiary claims that provide no grounds for reversal of the Boards ruling.

First, Petitioners point to a CCC request for additional information (RAI) to PG&E

regarding its certification. Petitioners allege the RAI somehow exposes a genuine dispute

because it constitutes evidence that PG&E could obtain a renewed license from the NRC

without the required CZMA concurrence.103 But that argument fails to demonstrate any error of

law or abuse of discretion. The Board squarely consideredand properly rejectedthat

specious suggestion.104 On appeal, Petitioners offer no rebuttal of the Boards reasoning. They

simply repeat the same argument and demand a different result. As the Commission has

explained, [r]ecitation of an appellants prior po sitions in a proceeding or statement of general

103 See Appeal at 19 (citing Letter from T. Luster, CCC, to T. Jones, Senior Director Regulatory, Environmental and Repurposing, PG&E at 1 (Dec. 7, 2023)).

104 Diablo Canyon, LBP-24-6, 100 NRC at __ (slip op. at 50-51).

27 disagreement with a decisions result is not sufficient; the appellant must point out the errors in

the Boards decision.105 They have not done so here.

Furthermore, the Boards conclusion is legally and factually sound. Regardless of

whether the CCC was satisfied with the completeness of the original certification, an

extraordinary logical gap exists between that unremarkable circumstance ( i.e., the issuance of an

RAI) and the possibility that PG&E could obtain a renewed license without the required CZMA

concurrence. Namely, that would require the NRC to purposefully elect to violate a federal

statute. As a matter of settled law (which Petitioners do not dispute), the NRC is entitled to a

presumption of administrative regularity.106 In other words, baseless speculation of illegal

conduct can never provide the basis for an admissible contention. Here, the Board specifically

probed this issue at oral argument, asking whether Petitioners had any basis to dispute the NRCs

presumption of regularity. Petitioners admitted, [n]o, we have not presented evidence of

irregularity by the staff. 107 Given that admission, the Boards conclusion is imminently

reasonable and fully consistent with controlling lawand Petitioners offer nothing to conclude

otherwise here.

Second, Petitioners (admitting that no genuine dispute currently exists) argue that the

Commission should hold the contention in abeyance pending further developments.108

According to Petitioners, that is because the NRC cannot reject [Contention 3] now and place

extra burdens on Petitioners at whatever time in the future the NRC deems ripe for raising this

105 Turkey Point, CLI-17-12, 86 NRC at 219 (citations omitted).

106 U.S. Dept of Energy (High-Level Waste Repository), CLI-08-11, 67 NRC 379, 384 (2008) (Absent clear evidence to the contrary, we presume that public officers will properly discha rge their official duties. (cleaned up)).

107 Tr. at 143.

108 Appeal at 19.

28 material issue.109 Yet again, the Board squarely consideredand properly rejectedthat

demand when Petitioners raised it in the initial proceedings. As the Board correctly explained,

Commission precedent counsels that unripe placeholder contentions should be rejectedthe

opposite of what Petitioners demand.110 On appeal, Petitioners neither acknowledge nor rebut

the relevant Commission authority on that point. Petitioners simply recycle their arguments and

demand a different result, which fails to constitute a valid appeal.

Next, Petitioners argue that a D.C. Circuit ruling from 1984, Union of Concerned

Scientists v. NRC (UCS), compels the NRC to offer a hearing on CZMA issues.111 As a

preliminary matter, this argument is new and un timely. In the proceedings before the Board,

Petitioners never invoked the UCS case as alleged support for Contention 3. However, the

Commission will not consider new arguments raised for the first time on appeal that the Board

never had an opportunity to consider.112 Thus, the Commission should summarily reject these

new arguments here.

Furthermore, UCS is inapt and provides no basis to disturb the Boards ruling. In UCS,

the court held that the NRC cannot categorically exclude from the scope of a hearing opportunity

any topic that is material to the underlying licensing decision. But the Boards ruling on

Contention 3 in no way contradicts that holding. The Board did not conclude that CZMA issues

are beyond the scope of (criterion (iii)) or are immaterial to (criterion (iv)) the proceeding.

Rather, it concluded that Petitioners wild speculation of illegal conduct was insufficient, as a

109 Id.

110 See, e.g., Union Electric Co. (Callaway Plant, Unit 1), CLI-15-11, 81 NRC 546, 548-50 (2015).

111 Appeal at 11, 13.

112 USEC, CLI-06-10, 63 NRC at 458 (quotations and citation omitted). The purpose of an appeal is to point out errors made in the Boards decision, not to present arguments and evidence never provided to the Board.

Id. (quotations and citation omitted).

29 matter of law, to demonstrate a genuine dispute with the application (criterion (vi)). UCS has no

bearing whatsoever on that fundamental defect in Contention 3, and certainly exposes no error of

law or abuse of discretion in the Boards ruling.

In sum, the Board fully considered Petiti oners arguments and appropriately applied

controlling law. On appeal, Petitioners offer no contrary demonstration. Petitioners simply

recycle their original arguments, hoping for a different result from the Commission, and

improperly raise new arguments for the first time on appeal, none of which satisfy the appellate

standard of review. Accordingly, the Commission should AFFIRM the Boards ruling on

Contention 3.

IV. CONCLUSION

Petitioners have not met their affirmative burden to demonstrate that the licensing board

misapplied controlling law or abused its discretion in ruling on any of Petitioners three

contentions. For the many reasons set forth above, the Commission should AFFIRM all three of

the Boards contention admissibility rulings in LBP-24-6.

Respectfully submitted,

Signed (electronically) by Ryan K. Lighty Executed in Accord with 10 C.F.R. § 2.304(d)

RYAN K. LIGHTY, ESQ. TIMOTHY P. MATTHEWS, ESQ.

MORGAN, LEWIS & BOCKIUS LLP PAUL M. BESSETTE, ESQ.

1111 Pennsylvania Avenue, N.W. MORGAN, LEWIS & BOCKIUS LLP Washington, D.C. 20004 1111 Pennsylvania Avenue, N.W.

(202) 739-5274 Washington, D.C. 20004 ryan.lighty@morganlewis.com (202) 739-5527 (202) 739-5796 Timothy.Matthews@morganlewis.com Paul.Bessette@morganlewis.com

Counsel for Pacific Gas and Electric Company

Dated in Washington, D.C.

This 23rd day of August 2024

30 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

BEFORE THE COMMISSION

In the matter of:

Docket No. 50-275-LR-2 and PACIFIC GAS AND ELECTRIC COMPANY 50-323-LR-2

(Diablo Canyon Nuclear Power Plant, Units 1 and 2) August 23, 2024

CERTIFICATE OF SERVICE

Pursuant to 10 C.F.R. § 2.305, I certify that, on this date, a copy of the foregoing

PACIFIC GAS AND ELECTRIC COMPANYS ANSWER OPPOSING THE APPEAL OF

LBP-24-6 FILED BY SAN LUIS OBISPO MOTHERS FOR PEACE, FRIENDS OF THE

EARTH, AND ENVIRONMENTAL WORKING GROUP was served upon the Electronic

Information Exchange (the NRCs E-Filing System), in the above-captioned docket.

Signed (electronically) by Ryan K. Lighty RYAN K. LIGHTY, ESQ.

MORGAN, LEWIS & BOCKIUS LLP 1111 Pennsylvania Avenue, N.W.

Washington, D.C. 20004 (202) 739-5274 ryan.lighty@morganlewis.com

Counsel for Pacific Gas and Electric Company

DB1/ 150285390.4