The VPSB order said the board will not ignore the fact that the plant is still operating and generating nuclear waste despite failing to fulfill promises to shut down if it didn't secure new state permits by last spring.
In its denial of Entergy's request, the VPSB contended much of the delay in resolving Vermont Yankee's future was Entergy's fault.
Sandra Levine, a lawyer with the Conservation Law Foundation, which has advocated closing the plant, said Entergy is in difficult situation because it can't prove to the VPSB that "it is a trustworthy operator when it is operating in defiance of the same board's orders."
Entergy contends that although the VPSB has indicated it will not take enforcement actions against the plant, the board also is restricted from doing so by a district court injunction that was issued in Entergy v.
The VPSB approved the sale of Yankee to Entergy in 2002 and in 2006 approved the storage of nuclear waste in dry casks.
Federal law preempted the state's efforts to close the nuclear plant, Murtha held, and he returned the issue of a new state permit for the plant back to the VPSB.
The board indicated it disagreed with arguments advanced by lawyers for Entergy regarding why VPSB should approve continued operation and waste storage at the plant, but announced that it would act in accordance with the federal court order.