North Carolina Sued in U.S. Supreme Court by Alabama, Florida, Tennessee, Virginia, and Southeast Compact Commission Over Low-Level Radioactive Waste Responsibilities

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For Immediate Release

North Carolina Sued in U.S. Supreme Court by Alabama, Florida, Tennessee, Virginia, and Southeast Compact Commission Over Low-Level Radioactive Waste Responsibilities

-- Lawsuit Says N.C. Failed to Meet Obligations --

NORTH CAROLINA, RALEIGH, Jun. 3 -/E-Wire/-- The States of Alabama, Florida, Tennessee, and Virginia and the Southeast Compact Commission for Low-Level Radioactive Waste Management today (June 3) filed a lawsuit in the U.S. Supreme Court to enforce $90 million in sanctions against the State of North Carolina. The suit accuses North Carolina of failing to comply with the provisions of North Carolina and the Southeast Compact laws and of not meeting its obligations as a member of the Compact.

"North Carolina did not live up to its promise to Alabama, Florida, Tennessee, Virginia, and the other two states in the Compact," said James Setser, Chairman of the Commission. "The member states and the Compact Commission have a moral and a legal responsibility to ensure that North Carolina fulfills its obligations to all of the members of the Southeast Compact and the citizens of our region."

Today's filing with the U.S. Supreme Court represents the next step to enforce sanctions imposed against North Carolina by the Compact Commission in December 1999.

Alabama Attorney General Bill Pryor stated, "North Carolina must be held accountable for its failure to provide a site for disposal of low-level radioactive waste for the Southeast. Alabama is committed to live up to its obligations and we expect nothing less from North Carolina."

In July 2000, the Commission, on behalf of its member states, requested the U.S. Supreme Court to enforce the sanctions against North Carolina. The Commission asked the Court to exercise its powers of original jurisdiction, which would allow the suit to bypass the lower courts and go directly to the Supreme Court.

In June 2001, the U.S. Supreme Court denied the Commission's motion for leave to file a bill of complaint, saying only that a state and not solely the Commission acting on behalf of a state or states, could invoke the Court's original jurisdiction. The Court did not address the merits of the complaint against North Carolina. The Court's ruling left the door open for Alabama, Florida, Tennessee, and Virginia, as members of the Compact, to file today's joint complaint with the Compact Commission

"The decision to file a lawsuit against another State is not one to be made lightly," said Virginia Attorney General Jerry W. Kilgore. "But, the circumstances here have left us no choice. The size of the sum involved, the refusal of North Carolina to make payment and the need for an environmentally safe, long-term answer to the problem of low-level radioactive waste, make this dispute appropriate for a decision by the U.S. Supreme Court."

The Southeast Compact for Low-Level Radioactive Waste Management is an agreement among seven states -- Alabama, Florida, Georgia, Mississippi, North Carolina, Tennessee, and Virginia -- to provide for the responsible management of the region's low-level radioactive waste (LLRW). The Compact Commission oversees administration of the Compact.

"There is a growing national crisis in LLRW management. North Carolina, Nebraska, and California have all failed to build a waste site," said Mr. Setser. "People want the benefits of radioactive materials, such as medical procedures and smoke detectors, but politicians lack the will to put the needed facilities in their states."

LLRW is commonly found in industrial and research by-products that have been exposed to radioactivity. Sources include such items as discarded containers, tools, and uniforms used in the operation of nuclear power plants, the medical industry, hospitals, and universities. All LLRW can be safely and responsibly managed and disposed.

Editor's Note: A Chronology of Events with additional information on the Compact follows.

CHRONOLOGY OF EVENTS IN THE SOUTHEAST LOW-LEVEL RADIOACTIVE WASTE COMPACT

1980 Congress enacted the national LLRW Policy Act.

1983 Eight southeast states passed Southeast Compact.

1985 Southeast Compact approved by Congress.

1986 September, Southeast Compact designated North Carolina as second host state.

1987 North Carolina Authority created by North Carolina General Assembly.

1988 February, at the request of North Carolina, the Commission established the Host State Assistance Fund, which eventually provided a total of $1.2 M to assist the state.

1988 Compact law amended at the request of North Carolina to implement limitations on withdrawal from compact and serving as host state.

1989 October, at the request of North Carolina, the Commission adopted a Capacity Assurance Charge of $20 per cubic foot on regional waste going to the Barnwell, South Carolina facility to provide funds to the state for licensing activities.

1990 November, at the request of North Carolina, Southeast Compact adopted Access Fee to raise an additional $12 M for development of the regional facility.

1991 December, North Carolina facility originally expected to open under Compact Law.

1992 February, Southeast Compact adopted resolution recommending that the Barnwell facility remain open with milestones for North Carolina.

1992 June, South Carolina General Assembly voted to allow the Barnwell facility to remain open until 1/1/96.

1992 August, Southeast Compact adopted Import Policy to allow for out-of- region waste to continue going to Barnwell from 1/1/93 to 6/30/94.

1992 November, at the request of North Carolina, Southeast Compact established an Access Fee to raise an additional $36 M for the state's licensing activities.

1993 December, Wake Co. site selected by Authority and license application submitted.

1995 July, South Carolina withdrew from Southeast Compact.

1995 November, Southeast Compact delayed additional funding to North Carolina.

1996 April, Southeast Compact notified Gov. Hunt that North Carolina would need to provide some part of the funding necessary to carry the facility to completion.

1996 June, North Carolina developed Licensing Work Plan (LWP) to complete the project.

1996 June, Southeast Compact stopped funding for project without assurances from North Carolina that a license decision would be reached.

1996 October, Southeast Compact authorized release of funds to North Carolina.

1997 January, Authority began work on LWP.

1997 May, Commission's Task Force for Facility Funding issued report on funding needed to complete the LWP, litigation, and construction of the facility.

1997 August, Southeast Compact adopted MOU proposed by utility generators group as a recommended means of resolving funding issues with North Carolina under which the Compact and regional waste generators would provide necessary funding in exchange for certain conditions and guarantees by North Carolina.

1997 December, Commission stopped funding when North Carolina did not agree with MOU or propose a reasonable alternative proposal.

1997 December, the North Carolina Authority voted to begin the shutdown of the project.

1998 January, North Carolina ceased all licensing activities.

1998 The Commission initiated a formal mediation process with the North Carolina Authority to resolve the funding issues with the state. No resolution was reached.

1999 April, the Southeast Compact Commission notified Governor Hunt and the leadership of the legislature of the state's obligation under the compact law to provide a LLRW disposal facility for the region and the Commission's belief that North Carolina was in violation of the compact law.

1999 June, the commissioners from Florida and Tennessee filed a formal complaint against North Carolina for alleged failure to fulfill its obligations under the compact and asked the Commission to impose sanctions against the state.

1999 July, the North Carolina General Assembly approved and Governor Hunt signed into law legislation to withdraw from the compact and to shut down the licensing process in the state.

1999 July, the Sanctions Committee of the Commission recommended that the Commission should initiate a formal inquiry into the complaint filed against North Carolina by the commissioners from Florida and Tennessee.

1999 August, the Commission met and voted to initiate a formal inquiry into the complaint filed against North Carolina by the commissioners from Florida and Tennessee.

1999 December, the Commission held a formal hearing of the complaint filed against North Carolina by the commissioners from Florida and Tennessee.

1999 December, the Commission met and found that North Carolina had violated and failed to comply with the provisions of the Compact and had violated and failed to fulfill its obligations as a party state.

1999 December, the Commission resolved to impose $90 million in sanctions against North Carolina.

2000 July, the Commission filed a lawsuit in the U.S. Supreme Court against the State of North Carolina to enforce sanctions against North Carolina for the state's failure to comply with the provisions of the Southeast Compact law and to fulfill its obligations as a party state to the Compact. The Commission asked the Court to exercise its powers of original jurisdiction, which would allow the suit to bypass the lower courts and go directly to the Supreme Court.

2000 September, the Attorney General of North Carolina filed a Brief in Opposition to the Commission's lawsuit. The State opposes the action by the Commission, arguing, among other things, that the nature of the case does not justify the exercise of original jurisdiction by the Court.

2000 September, the Commission filed its Reply Brief in response to the North Carolina brief.

2000 October, the U.S. Supreme Court entered an order inviting the U.S. Solicitor General's office to provide a brief expressing the view of the United States regarding the Commission's suit against North Carolina. No further information was provided in the order.

2001 May, the acting U.S. Solicitor General filed an amicus curiae brief with the U.S. Supreme Court.

2001 June, the U.S. Supreme Court entered an order denying the Commission's motion for leave to file a bill of complaint. The order did not address the merits of the Commission's complaint against North Carolina.

Southeast Compact Commission

Jim Setser 404/656-4713(Chairman, Southeast Compact)

Kathryn Haynes 919/821-0500(Executive Director, Southeast Compact)

Ted Buckner 919/821-0500 (Associate Director, Southeast Compact)

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