It's real simple if you read the US Constitution. Article VI Section 2 of the US Constitution is called the "Supremacy Clause". It states that when the Federal Government is given a power by the Constitution, and Congress uses that power; then States can not interfere. Legitimate Federal Laws preempt State and Local Laws. The term "States Rights" applies to powers that were NOT given to the Federal Government by the US Constitution, and therefore belong to the States as per Amendment X.
In the case of nuclear power, the Courts have held that this is clearly an area of Federal responsibility. Therefore, when Congress wrote the Atomic Energy Act of 1954 and subsequent acts like the Energy Reorganization Act of 1974 ( created NRC ); it was acting well within its Constitutional power, and no State can make a law that contravenes these Federal Laws.
The NRC is the SOLE authority for determining whether a nuclear power plant is safe and can continue to operate due to safety concerns. The State of Vermont attempted to usurp the legal power of the NRC. The NRC voted to extended Vermont Yankees license. A State can not usurp that decision based on safety concerns.
Judge Murtha prevented an illegal usurping of the US Government by Vermont. The State board is prohibited from considering safety and must make its decision upon the aspects it was chartered to regulate. The state board has to decide if Vermont Yankee is an economic benefit to Vermont. Given that Vermont Yankee sells power to other states ( it's a merchant plant ) it brings money into Vermont and is a clear economic benefit. The judge precluded the board from saying that safety concerns overwhelm that economic benefit, since safety concerns are the SOLELY regulated by NRC.
Although Vermont plans an appeal, they are just wasting money. The US Supreme Court, and its subordinate Appeals Courts, have held that the NRC is the regulatory agency for nuclear safety, and it's not up to Courts and legislatures to "second guess" the agency that Congress has charged with regulation of nuclear safety.
Vermont Yankee will begin operation on its extended license THIS MONTH.
PamW