Virginia Uranium, Inc. v. Warren

Case Updates

The Atomic Energy Act (AEA) gives the federal Nuclear Regulatory Commission exclusive regulatory authority to ensure the safety of uranium processing but leaves the regulation of uranium mining up to the States. Based on concerns about processing safety, Virginia completely banned uranium mining within its borders. Virginia Uranium, Inc. argued that the AEA preempts this state mining ban because it is an indirect attempt to regulate the exclusively federal field of nuclear safety. Both the District Court and the Fourth Circuit rejected the company’s argument.

The Supreme Court affirmed 6-3, but a majority could not agree on the reasoning. Justice Gorsuch, joined by Justices Thomas and Kavanaugh, delivered the judgment of the Court and the lead opinion. He explained that the AEA reserves the regulation of uranium mining to the States, and their purpose for regulating within that field is legally irrelevant. Focusing exclusively on the AEA’s text, Justice Gorsuch refused to hold the state law preempted simply because it might serve as an “obstacle” to the achievement of the federal statute’s underlying policy objectives. Justice Ginsburg concurred, joined by Justices Sotomayor and Kagan. She agreed with the lead opinion’s bottom line, but indicated that she remained more open to arguments based on legislative motive and obstacle preemption. The Chief Justice dissented, joined by Justices Breyer and Alito.

Click here to view the Chamber’s brief.

Erin E. Murphy and Andrew C. Lawrence of Kirkland & Ellis LLP served as counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.

The U.S. Chamber filed an amicus brief urging the Supreme Court to grant review to decide whether the Atomic Energy Act preempts Virginia’s ban on uranium mining.

More than 30 years ago, the Supreme Court concluded that the federal government has occupied the entire field of nuclear safety concerns, and that the Atomic Energy Act accordingly preempts any state law grounded in safety concerns arising from the production of nuclear energy. Nonetheless, the Fourth Circuit below held that Virginia may ban mining of the Nation’s single largest uranium deposit—not for economic or other non-preempted reasons, but simply because Virginia purportedly determined that uranium production is not safe enough, despite pervasive federal regulation.

The Chamber’s brief argues that the Fourth Circuit’s decision cannot be reconciled with the Act, with the Supreme Court’s precedents, or with decisions from other courts. The brief urges the Supreme Court to grant review because the Fourth Circuit’s decision provides a roadmap for state and local governments to evade the preemptive force of federal law and has far-reaching consequences for the future of nuclear power in the United States.

Erin E. Murphy and Andrew C. Lawrence of Kirkland & Ellis LLP served as counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.