Trump's licensing goals pile pressure on nuclear regulator
At the time, Energy Secretary Chris Wright said that red tape and outdated government policies have stymied the nuclear industry for too long.
Faster licensing will likely accelerate nuclear deployment because 'the reality is that permitting/licensing can take a lot longer than the actual construction for Small Modular Reactors (SMRs),' said Patrick O'Brien, Holtec Director, Government Affairs and Communications.
Alongside partner Hyundai Engineering & Construction, Holtec plans to build 10 GW of SMRs in North America in the 2030s.
Trump ordered the NRC to implement standardised applications for 'high-volume licensing' of SMRs and modular reactors to support a four-fold increase in U.S. nuclear capacity to 400 GW by 2050.
He signed three other executive orders, directing the Department of Energy (DOE) and Department of Defense (DOD) to develop four pilot advanced nuclear reactors between them with private funding, and to 'reinvigorate' nuclear fuel production and enrichment.
He also instructed the NRC to create 'an expedited pathway for approving reactor designs' that have been DOD or DOE-tested. Only two new nuclear units have entered commercial operation in the U.S. since 1978 – Vogtle 3 and 4, both of which feature Westinghouse's AP1000 pressurized water reactors.
MAP: US nuclear power plants operational in February 2025
Although tax credits will likely be withdrawn for many new renewable energy projects under the One Big Beautiful Bill Act, which is currently before the Senate, the production and investment tax credits for nuclear projects that begin construction before January 1, 2029, are retained.
The NRC is working quickly to review and implement the orders and looks forward 'to continuing to work with the Administration, Department of Energy, and Department of Defense on future nuclear programs,' NRC Spokesperson Scott Burnell told Reuters Events.
Progress is already being made on some applications. The NRC approved NuScale Power's 77 MW version of its SMR design on May 29, several months ahead of schedule, and granted environmental approval for Holtec International's 800 MW Palisades nuclear plant restart in Michigan just one day later.
Several SMR companies are engaged in the NRC licensing process. TerraPower has submitted a construction permit application to the NRC for the Natrium reactor demonstration project, while Holtec is currently engaged in pre-application activities for the SMR-300 design.
Faster licensing
Speeding up licensing is possible within the current framework 'provided they [the NRC] have the necessary resources/staff' but staff need direction on which applications need to be prioritized, said O'Brien.
The License Termination Plan for the decommissioning of the Oyster Creek nuclear facility in New Jersey, a process that typically requires a 24-month review, is expected to be completed in 12 months and 'similar timelines for new submittals can be met,' O'Brien told Reuters Events.
Download exclusive insights from the Reuters Events: SMR & Advanced Reactor 2025 conference in May.
The NRC plans to introduce a dedicated team to implement the changes directed by the executive orders. Planned budgets and staffing have not changed significantly for the next fiscal year, but the impact of a staff resignation program by the Department of Government Efficiency (DOGE) has yet to be seen, Edwin Lyman, Director of Nuclear Power Safety at the Union of Concerned Scientists, told Reuters Events.
DOGE measures to downsize the federal workforce and cut expenses could also undermine the work of the DOE Loan Program Office (LPO), which has been a strong supporter of both renewables and nuclear, providing $107 billion in financial backing to energy projects during the Biden administration.
The LPO provided a $1.52 billion loan guarantee to Holtec to restart the Palisades nuclear power plant and previously backed Vogtle 3 and 4.
NRC retirement rates are similar to those of the nuclear industry as a whole, which has an aging workforce, said O'Brien.
Approval timelines have been 'trending in a positive direction' because the NRC was already seeking to streamline practices under the Biden administration's ADVANCE Act, noted O'Brien.
Safety concerns
The DOE, which has criticised the NRC for being 'overly risk-averse,' said the new orders are focused 'on balancing safety concerns with the benefits of nuclear energy,' and described existing radiation models as 'flawed.'
There are no safety concerns over accelerating permitting for pressurized water reactors like the AP1000 'but other newer designs might need more time to validate,' said O'Brien.
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The licensing process would be 'imperilled by imposing artificial timelines on reviews, especially for novel and complex new reactor designs,' said Lyman.
He said he was therefore 'deeply concerned' about efforts by the ADVANCE Act and the executive orders 'to pressure the NRC to take shortcuts to facilitate speedy approvals, which could increase the risk that unsafe designs will be licensed and deployed.'
The orders are 'wrong-headed from top to bottom' and call for the entirety of NRC regulations and guidance to be revised on a completely unrealistic timescale, he said.
Democratic Senator Edward J. Markey in a statement said that the executive orders make it 'impossible for NRC to maintain a commitment to safety and oversight with staffing levels slashed and expertise gone.'
CHART: Small modular reactor projects by country
Advanced nuclear projects face even bigger obstacles including insufficient capital cost financing, supply chain shortcomings and a lack of fuel production capacity, such as high-assay low-enriched uranium (HALEU), noted Lyman.
The LPO must be ready to provide first-of-a-kind funding for new reactor models, while government authorities should provide 'consistent tax policy to blend the cost curve after the first few deployments,' said O'Brien.
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