April 18, 2025

States, companies claim NRC rules stifle advanced reactor growth

By ExchangeMonitor

A coalition of five states and three private nuclear companies filed a lawsuit against the Nuclear Regulatory Commission on April 7 in a federal district court in Texas. 

Arizona, Florida, Louisiana, Texas and Utah joined with advanced nuclear companies Deep Fission, Valar Atomics and Last Energy in arguing the Nuclear Regulatory Commission (NRC) has inhibited advanced reactor deployment.

After an earlier complaint was filed a few weeks earlier, an amended version of the litigation was filed a few weeks earlier with the same U.S. District Court in Texas. 

The states claim in the lawsuit that the NRC has stifled the expansion of advanced nuclear technology, such as small modular reactors and microreactors, in their respective states with its “lengthy” and “restrictive” licensing framework. The plaintiffs said the regulations make it tough to meet increasing demands for electricity.

The three companies claimed that they all have experienced monetary losses due to the current regulations and have been “forced” to develop their technology efforts outside of the United States.

The plaintiffs seek to challenge the NRC’s Utilization Facility Rule, a rule that requires all U.S. reactors to obtain construction and operating licenses, regardless of the fuel used and size of the reactors, with their lawsuit.

The plaintiffs seek to exempt universities and the three companies’ reactors from the NRC’s utilization facility licensing requirements but to remain subject to the safety requirements.

The five states have pushed advanced nuclear technology projects, while the three companies are pursuing advanced nuclear opportunities in the United States, according to the amended complaint. The three companies are considering Texas for nuclear development, according to the complaint.

The NRC will address the litigation in its court filing, according to a NRC spokesperson.

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