United States v. County of San Diego

The United States of America (government) appeals from a district court decision denying its motion for summary judgment and granting partial summary judgment to the County of San Diego (County). We are presented with the question of whether General Atomics, a federal contractor, has an independent possessory interest in a government-owned experimental fusion device (device) subject to California’s ad valorem property tax. The district court had jurisdiction pursuant to 28 U.S.C. §§ 1331 , 1345. We have jurisdiction over this interlocutory appeal pursuant to 28 U.S.C. § 1292 (b). We affirm.

I

The United States Department of Energy (Department) funds and administers nuclear fusion research at several locations throughout the country in an attempt to develop a magnetically confined fusion system capable of generating commercial electric power. See Magnetic Fusion Energy Engineering Act of 1980, 42 U.S.C. § 9301 (b)(1). General Atomics, a private scientific research firm, maintains and operates a federally owned experimental fusion device at its San Diego facility. Pursuant to seven different cost reimbursement contracts, General Atomics provides services to the government with…