Texas, Utah, Last Energy challenge NRC’s ‘overburdensome’ microreactor regulations

Brian Martucci | Source: Utility DIVE | Posted 01/07/2025

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The Nuclear Regulatory Commission’s “incredibly costly” licensing process hinders the U.S. nuclear industry, the two states and nuclear developer said in a federal lawsuit filed Dec. 30.

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A lawsuit filed in federal court in Texas by the states of Texas and Utah, along with advanced nuclear technology company Last Energy, challenges a 69-year-old Nuclear Regulatory Commission (NRC) rule as exceeding the agency's authority and creating obstacles for microreactor developers. The plaintiffs seek an exemption for Last Energy's 20-MW reactor design and research reactors in the plaintiff states from the NRC's stringent regulatory scrutiny, calling for a more flexible definition for future licensing proceedings.

While the lawsuit highlights the need for proportional regulatory requirements aligned with reactor hazards, it also sheds light on the challenges facing nuclear reactor construction in the United States. With limited new commercial reactors built in recent years, regulatory hurdles are cited as a major obstacle. Last Energy has turned its focus to developing reactors abroad due to more accommodating regulatory frameworks, with plans for projects in Europe including a $400 million venture in Wales expected to be operational by 2027.

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Texas, Utah, Last Energy challenge NRC’s ‘overburdensome’ microreactor regulations

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