U.S. Accelerates Advanced Nuclear Reactor Construction with Shift in Oversight

The U.S. administration has launched a program to expedite the construction of advanced nuclear reactors by private firms. The ambitious goal is to activate at least three nuclear test reactors by July 4, 2026, with an interim target of achieving criticality for multiple reactors by July 4, 2024.

This initiative involves a significant shift in regulatory oversight for these pilot projects, moving from the Nuclear Regulatory Commission (NRC) to the Department of Energy (DOE).

Accompanying this shift are revisions to internal DOE safety and environmental directives and an exemption from the National Environmental Policy Act (NEPA). Proponents argue the program is vital for meeting escalating energy demand, particularly from the artificial intelligence (AI) sector, and for revitalizing the nuclear industry. However, critics voice serious concerns regarding potential impacts on safety, transparency, and the thoroughness of assessments under these accelerated timelines.

Program Establishment and Objectives

In May 2023, former President Donald Trump met with U.S. nuclear power industry executives. Joseph Dominguez, CEO of Constellation Energy, highlighted regulatory and permitting delays as key impediments to new nuclear plant development. Following this, the Trump administration established the "Reactor Pilot Program" to accelerate the construction of advanced nuclear reactor designs by private firms.

The program's stated objective is to have at least three nuclear test reactors operational by July 4, 2026. Separately, Secretary of Energy Chris Wright indicated a goal for multiple nuclear reactors to achieve criticality by July 4, 2024.

Shift in Regulatory Oversight and Rule Revisions

Regulatory Framework Shift

The program introduces a pivotal change in regulatory oversight for these pilot projects. Traditionally, the Nuclear Regulatory Commission (NRC) has held responsibility for the safety oversight of commercial reactors since 1975, utilizing a public review process. Under the new program, the Department of Energy's (DOE) Office of Nuclear Energy now leads the Reactor Pilot Program, with the NRC serving in a consulting capacity.

A memorandum of understanding between the NRC and DOE outlines a framework for the NRC to establish an expedited pathway for approving advanced reactor designs that have received authorization and testing from the DOE. This implies the NRC would leverage the DOE's safety analysis for commercial licensing.

DOE's Role and Actions

An executive order formally designated the DOE with oversight of commercial test reactors, mandating the Energy Secretary to approve at least three reactors. In November 2023, the DOE's Office of Nuclear Energy sought academic volunteers to assist with accelerating safety reviews, citing anticipated resource needs. Approximately 30 subject matter experts are involved in reviewing proposals, and preliminary design reviews for four projects have been conducted, with initial approvals anticipated. The DOE has also established a "Concierge Team" to assist companies with application processing.

Revised DOE Directives and NEPA Exemption

The DOE revised internal departmental orders governing aspects of reactor operations, including safety systems, environmental protections, site security, and accident investigations. These revisions occurred in the fall and winter of 2023 and were initially shared with participating companies without public disclosure. Copies were later obtained by NPR and subsequently published on the Idaho National Laboratory website. Analysis indicates that over 750 pages were removed from earlier versions of these directives, reducing them to approximately one-third of their original length.

Key modifications reportedly included:

• Reduced security requirements for reactors.
• Loosened protections for groundwater and the environment.
• Elimination of specific safety roles, such as the Cognizant System Engineer.
• Reduced record-keeping requirements.
• Increased allowable radiation exposure for workers before an accident investigation is triggered.
• Removal of the "As Low As Reasonably Achievable" (ALARA) standard for radiation exposure.
• Softened language regarding radioactive discharges in certain contexts.
• Consolidation of security directives, reducing detailed requirements for training, drills, and physical barriers.

Additionally, the Trump administration exempted new experimental nuclear reactors from the National Environmental Policy Act (NEPA). This exemption, announced in the Federal Register, cited the inherent safety features and passive safety systems of advanced reactor designs as justification and was noted for reducing public comment opportunities.

DOE's Stance on Safety

The DOE has stated its commitment to maintaining high safety standards and affirmed adherence to U.S. Environmental Protection Agency (EPA) requirements. It maintained that the revised rules "continue to protect the public and the environment from any undue risks" and that the reduction of regulations would "increase innovation in the industry without jeopardizing safety." Secretary of Energy Chris Wright and other officials expressed confidence in the program's ability to foster nuclear innovation safely.

Industry Perspectives and Support

Proponents, including Isaiah Taylor, CEO of Valar Atomics, stated that accelerating development is necessary for the nuclear industry's advancement. Jordan Bramble, CEO of Antares, supported the DOE pathway for prototype reactors, referencing the agency's history of operating experimental reactors and its established safety review processes. Independent nuclear consultant Nick Touran noted that smaller reactor designs inherently present a reduced worst-case accident scenario compared to larger, conventional designs. Seth Cohen, a DOE lawyer, stated the department's role in removing governmental impediments to meeting the deadlines.

Advanced Reactor Designs

The program aims to develop advanced designs, including small modular reactors (SMRs) intended for mass production. Companies like TerraPower and Oklo are developing sodium-cooled reactors, described as transferring heat more efficiently at lower pressure, potentially reducing containment requirements. Other innovations include air-cooled chimney systems for enhanced safety during shutdowns and molten-salt energy storage for managing peak demand. Oklo is also developing nuclear fuel recycling capabilities.

Concerns Regarding Safety and Transparency

Critics have raised significant concerns regarding the program's implications for safety, transparency, and public participation.

Criticisms of Regulatory Changes

Allison Macfarlane, a professor at the University of British Columbia and former NRC chairman, cautioned that the strict deadlines, potential political influence, and perceived reduced transparency could compromise safety, suggesting that even a small release of radioactive material could cause damage. Heidy Klaaf, chief AI scientist at the AI Now Institute, questioned the feasibility of adequately assessing new and untested designs within accelerated timelines.

Edwin Lyman, director of nuclear power safety at the Union of Concerned Scientists, noted that the program's public documentation and comment processes differ from the NRC's standard approach, and warned that even smaller reactors pose risks if located near populated areas without adequate emergency planning. He described the DOE's actions as posing a "grave risk" to public health and the environment and characterized the rule changes as a "wrecking ball" to the existing regulatory system.

Kathryn Huff, a former head of the DOE's Office of Nuclear Energy, and Christopher Hanson, a former NRC Chair, criticized the initial lack of public discussion surrounding the rule revisions, emphasizing that public trust in nuclear power development relies on transparency. Emily Caffrey, a health physicist, raised questions about the motivations behind removing specific requirements and softening regulatory language. The NEPA exemption was noted for reducing public comment opportunities. Macfarlane also expressed reservations about the NRC relying solely on the DOE's safety analysis for commercial deployment, advocating for the NRC to conduct its own independent review to ensure public safety.

Driving Factors: Energy Demand and Investment

The projected growth of Artificial Intelligence (AI) and the associated increase in electricity demand from large data centers are significant drivers for renewed interest in nuclear power. The International Energy Agency projects U.S. data center energy consumption to rise by approximately 130% by 2030. Technology companies, including Amazon, Google, and Meta, are exploring nuclear energy to meet their increasing electricity requirements.

The sector has attracted substantial investment, with over $6 billion in private equity, venture capital, and public funds directed toward reactor development in recent years. Investors include figures such as Peter Thiel and Marc Andreessen. The White House aims to increase U.S. nuclear capacity from 100 gigawatts to 400 gigawatts by 2050.

Key Projects and Company Developments

Oklo

The NRC had previously rejected a combined license application from Oklo in 2022 due to "significant information gaps." Following the executive order, Oklo was among the 11 advanced reactor projects selected for the Reactor Pilot Program in August 2023, including a test version of the design previously reviewed by the NRC. Oklo stated its selection was through competitive opportunities and affirmed ongoing safety analyses, indicating its intent to pursue NRC licensing for its first operational Aurora reactor. Energy Secretary Chris Wright was a member of Oklo's board of directors until his confirmation in February 2024. Oklo plans to begin construction on initial reactors in Pike County, Ohio, this year, targeting operation by 2030 and scaling up to 1.2 gigawatts by 2034. It is also building the Aurora Powerhouse test reactor with the Idaho National Laboratory, projected to come online by 2027 or 2028.

Valar Atomics

The company plans to develop smaller reactors, utilizing specialized fuel and high-temperature gas. It aims to have its test reactor operational by the July 4, 2026, deadline. Valar Atomics transported its reactor prototype to Utah via a military C-17 transport. The company is also involved in a lawsuit against the NRC regarding its authority to regulate small reactors but intends to file for an NRC license when its reactor is ready.

Antares

Antares Nuclear received preliminary safety approval for its Mark-0 demonstration reactor in Idaho. The company reported completing its Preliminary Documented Safety Analysis with DOE regulators and aims for reactor startup this summer. It also aims to have its test reactor operational by the July 4, 2026, deadline.

TerraPower

Partnered with Meta for approximately 4 gigawatts of SMR projects. TerraPower is constructing its first 345-megawatt SMR plant, the Kemmerer Power Station, in Wyoming, with completion expected by 2030 and power generation by 2031. The Meta deal includes two reactors by 2032 and an option for six more, potentially totaling 2.8 gigawatts.

Other Developments

Aalo stated it has completed its Final Design Review and expects to finalize construction this summer. Other companies involved in advanced reactor development include Natura Resources, Kairos Power (with a deal to supply Google), x-Energy (supported by Amazon), and Westinghouse. The Pentagon is also considering deploying small reactors to military bases through Project Janus.

Future Regulatory Pathways

A memorandum of understanding between the NRC and DOE outlines a framework for the NRC to establish an expedited pathway for approving advanced reactor designs that have received authorization and testing from the DOE. This framework implies that the NRC would leverage the DOE's safety analysis for commercial licensing rather than duplicating the work.