States Challenge Nuclear Regulation for Microreactors
A recent lawsuit filed in Texas highlights the challenges faced by microreactor developers due to the Nuclear Regulatory Commission (NRC) regulations. Texas and Utah, alongside advanced nuclear tech firm Last Energy, argue that a rule dating back to 1955 imposes excessive restrictions on small-scale reactors, which they claim exceed the NRC’s legal authority.
The lawsuit seeks to exempt Last Energy’s 20-megawatt reactor and research reactors in these states from stringent definitions that classify all U.S. commercial and research reactors as “utilization facilities.” The plaintiffs contend that this designation imposes unnecessary burdens, hampering the development of new nuclear technologies. Patrick White, a research director at the Nuclear Innovation Alliance, emphasizes the need for discussions around regulatory frameworks that align with the safety of the reactor designs.
The current landscape for commercial nuclear reactors in the U.S. is stark. Only three new reactors have been constructed in nearly three decades, with none currently being built. The lawsuit argues that the difficult regulatory environment—not a lack of demand or technology—is the fundamental issue preventing new reactor construction.
Amidst these concerns, various advanced nuclear technology developers have interacted with the NRC in efforts to streamline the application process, though Last Energy has pursued international projects to escape stringent U.S. regulations. They have announced over 50 development agreements across Europe and are planning a significant nuclear project in Wales that aims to be operational by 2027.
Even if exempt from the NRC’s classification rules, the reactors would still face rigorous oversight regarding materials and safety regulations. Furthermore, the NRC is expected to introduce a new framework for advanced reactor regulation, which aims to allow a broader range of technologies to be assessed in a more proportional manner.
In conclusion, the lawsuit filed by Texas, Utah, and Last Energy underlines a growing urgency to reconsider regulatory approaches for microreactors, reflecting wider interest and advancements in nuclear technology. The evolving landscape suggests changes may be on the horizon that could help bring new nuclear facilities to market sooner than in previous decades.

