ENVIRONMENTALISTS FILE FEDERAL LAWSUIT AGAINST HOLTEC’S UNPRECEDENTED PALISADES ATOMIC REACTOR RESTART: Coalition Challenges Lawfulness of Exemption Request Key to High-Risk Scheme
Michael J Keegan
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NEWS FROM BEYOND NUCLEAR Michael Keegan, chair, Don’t Waste Michigan, Monroe, MI, mkee...@comcast.net, (734) 770-1441 Terry Lodge, attorney, Toledo, OH, tjlo...@yahoo.com Wallace Taylor, attorney, Cedar Rapids, IA, wtayl...@aol.com (An expert witness declaration by nuclear engineer Arnold Gundersen was attached to the lawsuit (see pages 77-139 on the PDF counter for the declaration as originally filed with the Nuclear Regulatory Commission Atomic Safety and Licensing Board in October 2024). Interviews with Gundersen can be arranged through Kevin Kamps.) |
| ENVIRONMENTALISTS FILE FEDERAL LAWSUIT AGAINST HOLTEC’S UNPRECEDENTED PALISADES ATOMIC REACTOR RESTART |
| Coalition Challenges Lawfulness of Exemption Request Key to High-Risk Scheme |
| COVERT TOWNSHIP, MICHIGAN and WASHINGTON, D.C., NOVEMBER 17, 2025--An environmental coalition opposed to Holtec’s unprecedented and high-risk scheme to restart the Palisades atomic reactor on the Lake Michigan shoreline has filed a federal lawsuit seeking a permanent injunction against the impending return to nuclear power operations. The Complaint for Declaratory and Injunctive Relief was submitted to the U.S. District Court for the Western District of Michigan on November 17, 2025. The Court is headquartered in Grand Rapids, but the case will very likely be transferred to a federal judge in Kalamazoo, who has jurisdiction over Van Buren County, where Palisades is located. The case is entitled Beyond Nuclear, Don’t Waste Michigan, and Michigan Safe Energy Future (Plaintiffs) versus the United States Nuclear Regulatory Commission and Holtec Decommissioning International (Defendants). Attorneys Terry Lodge of Toledo, Ohio and Wallace Taylor of Cedar Rapids, Iowa serve as co-counsel for the environmental coalition. Arnold Gundersen, the coalition's expert witness, a nuclear engineer with 54 years of experience, stated: "Holtec wanted its cake while eating it too on Palisades since 2022. They claimed that regulations like technical specifications, such as on anti-corrosion water chemistry, did not apply because the plant was in decommissioning mode. At the same time, they claimed that the plant still had an active legal license, the supposed legal basis for their NRC-approved regulatory pathway to restart. So Holtec is claiming that Palisades was both dead and alive at the same time. For the last three years, it has been both dead and alive simultaneously." "Holtec's hiding behind decommissioning phase regulatory relief and waivers, and NRC compliantly allowing and enabling it, has resulted in serious, negative safety consequences, which could lead to a reactor core meltdown on the Great Lakes shore," said Kevin Kamps of Beyond Nuclear, who resides in Kalamazoo, Michigan, 35 miles downwind. On January 14, 2025, an NRC staff person affirmed that Holtec did not implement the proper "wet layup" on Palisades' steam generator tubes, from 2022 to 2024. This resulted in widespread, accelerated degradation, with potentially very serious safety implications. Wallace Taylor, Iowa-based co-counsel for the environmental coalition, said: "This lawsuit alleges that the NRC and Holtec didn’t just bend the regulations. They both broke the law to resurrect a reactor that was fifty plus years old, poorly maintained and could not compete in the open market. Palisades is not needed, way too expensive even with massive public subsidies, and unsafe." Holtec took over from the previous owner, Entergy, at Palisades on June 28, 2022. On September 9, 2022, Holtec and Michigan Governor Gretchen Whitmer jointly announced Palisades would be restarted by Holtec, breaking the promise made years earlier that Holtec would decommission Palisades instead. “This bait and switch trick, con job, and big lie is how Holtec got ahold of Palisades in the first place, even though we had officially resisted it from the get-go, because we knew Holtec could not be trusted, even with decommissioning, let alone the zombie reactor restart,” said Kamps of Beyond Nuclear. “Now it is clear the NRC likewise cannot be trusted to obey, uphold, and enforce applicable laws and even its own regulations and mandates,” Kamps added. On September 28, 2023, Holtec applied to NRC for an exemption from regulations in order to rescind the permanent shutdown certifications filed by Entergy, and docketed by NRC, in June 2022, after Entergy had shut down Palisades for good on May 20, 2022. The permanent shutdown had been announced in and planned since early December 2016. The three environmental organizations, along with allies Nuclear Energy Information Service of Chicago and Three Mile Island Alert of Pennsylvania, have contested Holtec’s Palisades restart before the NRC’s Atomic Safety and Licensing Board (ASLB) ever since. Ironically, in early 2025 the coalition and Holtec actually agreed that the contested Exemption Request should not be included as a part of ASLB proceedings. However, the ASLB panel, by a 2-1 split decision, sided with NRC staff, and retained the Exemption Request as part of the licensing proceeding, effectively blessing NRC staff’s ultimate approval of the Exemption Request on July 24, 2025, “despite the exemption not qualifying for approval pursuant to the provisions of [10 Code of Federal Regulations Part] 50.12,” the coalition lawsuit argues. The Complaint begins: “Plaintiffs seek a declaration from the Court that an ‘exemption’ granted by the U.S. Nuclear Regulatory Commission from the requirements of the Atomic Energy Act of 1954…which would allow the owner of a permanently shutdown commercial nuclear power plant to be restored to commercial generation is unlawful.” The coalition alleges violations of the Atomic Energy Act, the Administrative Procedure Act, and NRC’s own implementing regulations. “When those certifications were provided in connection with the decommissioning of a reactor, they legally prohibited any further operation of the Palisades reactor or replacement of the fuel into the Palisades reactor vessel,” the coalition argues in its lawsuit. The coalition cited NRC’s 10 CFR Part 50.82, "Termination of license" regulations. At (a)(2), the regulation states: “Upon docketing of the certifications for permanent cessation of operations and permanent removal of fuel from the reactor vessel…the 10 CFR part 50 license no longer authorizes operation of the reactor or emplacement or retention of fuel into the reactor vessel.” The environmental groups have brought the lawsuit on behalf of their members and supporters, some of whom live just 0.75 miles from the Palisades atomic reactor. The standing declarants are concerned the restart, especially considering Palisades’ age-related degradation and the high risks of a release of catastrophic amounts of hazardous radioactivity, could significantly and irreparably harm their health, safety, security, property, and the environment. Radioactivity releases even during so-called routine operations, Holtec’s lack of experience operating a reactor, and the company’s controversial history, were also cited as reasons for the lawsuit. The coalition’s co-counsel argue: "Before NRC grants the exemption Holtec seeks…it must be analyzed under the explicit limitations imposed…Additionally, the District of Columbia Circuit has limited the granting of exemptions to exigent circumstances… Section 50.12 provides a mechanism for obtaining an exemption from the procedures incorporated in section 50.10, but one that may be invoked only in extraordinary circumstances. The Commission has made clear that section 50.12 is available “only in the presence of exigent circumstances, such as emergency situations in which time is of the essence and relief from the Licensing Board is impossible or highly unlikely… The Commission has similarly emphasized that [Part] 50.12 exemptions are to be granted sparingly and only in cases of undue hardship…So Holtec bears an extremely heavy burden to justify its request for an exemption." (Emphasis added) The suit contends: “The underlying statutory intention is that a new license application must be sought post-shutdown to ensure that a ‘new’ nuclear power plant meets all contemporary licensing requirements and expectation.” Along similar lines, in a February 7, 2023 ExchangeMonitor article entitled “To restart shuttered Palisades plant, Holtec would need to start ‘from scratch,’ NRC commissioner Crowell says,” Bradley Crowell, who is still serving as a commissioner at the agency, was quoted: As for NRC’s role in a potential restart, Crowell — who joined the commission in August [of 2022] — said it would be difficult for the safety regulator to prepare for such a development because of the uncertainty surrounding Palisades’ fate. “I feel like it’s difficult to get our ducks in a row for that because it changes almost on a monthly basis,” Crowell said. “I understand they [Holtec] are in a posture of wanting to find a buyer to do it… but I think at this stage of the game, you’re gonna have to start from scratch.” (Emphasis added) The lawsuit concludes: "WHEREFORE…Plaintiffs request that the Court find and declare that the granting of the exemption by the NRC was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; in excess of statutory jurisdiction, authority, or limitations, or short of statutory right; and without observance of procedure required by law; and that consequently, Plaintiffs further request that the Court issue preliminary and permanent injunctions prohibiting the approval of the exemption requested by Holtec because Plaintiffs have suffered an irreparable injury…of having a dangerous nuclear plant being allowed to restart, in violation of the law and regulations." For its part, Holtec has continued to say it will restart Palisades by the end of 2025, in the lead up to an announced Initial Public Offering in early 2026, where it hopes to raise $10 billion in private investment. For more information, see Beyond Nuclear’s “Newest Nuke Nightmares at Palisades, 2022 to Present”. It is a one-stop-shop of web posts dating back to April 2022, when Holtec CEO Krishna Singh first floated “Small Modular Reactor” construction and operation at Palisades, and Michigan Governor Gretchen Whitmer first floated restarting the closed-for-good reactor. |
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