COVERT TOWNSHIP, Mich. (Michigan News Source) — The comeback story for the Palisades nuclear plant may be short-lived, as three environmental groups have taken the restart plan to federal court.

Beyond Nuclear, Don’t Waste Michigan, and Michigan Safe Energy Future sued the U.S. Nuclear Regulatory Commission (NCR) on Nov. 17, arguing the agency broke federal law by granting Holtec International the exemptions it needs to resume power production. 

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They say Palisades legally crossed the point of no return in 2022, when its former owner certified the plant for decommissioning—a step they claim permanently bars it from refueling.

“When those certifications were provided … they legally prohibited any further operation of the Palisades reactor,” the groups said in their complaint, filed in U.S. District Court for the Western District of Michigan.

Holtec bought Palisades in 2022 and wants to reverse course and fire up the reactor again. It’s a move supported by Gov. Gretchen Whitmer, West Michigan lawmakers, and the U.S. Department of Energy, which awarded the company nearly $57 million to move the project forward.

The environmental groups argue the NRC handed Holtec special treatment, accusing regulators of letting the company operate in a gray zone that allows “serious, negative safety consequences,” including the risk of a “meltdown” on the Lake Michigan shoreline.

The NRC stressed that inspectors are reviewing every system needed for startup. “The plant can only start up when this work is completed and the NRC determines that plant systems … meet federal requirements,” spokeswoman Viktoria Mitlyng said.

If successful, Palisades would become the first U.S. nuclear plant ever restarted after entering decommissioning status.

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Holtec maintains it’s “moving in the right direction,” but the lawsuit asks the court to halt the NRC approvals until the legality of the restart is settled.