President Biden Signs Nuclear Energy Bill into Law

On July 9, 2024, President Biden signed into law the Accelerating Deployment of Versatile, Advanced Nuclear Clean Energy Act (the “Act”).  The Act had significant bipartisan support.  It reflects lawmakers’ goals to (1) streamline nuclear licensing procedures and regulation, (2) spur development of nuclear technologies, and (3) preserve existing nuclear generation.  We summarize the Act below.

1. Streamlining Nuclear Licensing Procedures and Regulation

The Act requires the Nuclear Regulatory Commission (the “NRC”) to update its mission statement.  The updated mission must state the NRC will not unnecessarily limit civilian use of radioactive materials and deployment of nuclear energy and will conduct its activities in an efficient way.

To accomplish this efficiency, the Act provides expedited deadlines for future combined license reviews of new reactor projects at existing or adjacent sites.  Further, the Act directs the NRC to modernize its environmental review process, a major source of delay for many nuclear energy projects.  The NRC must prepare a congressional report within 180 days outlining the NRC’s plan to streamline these reviews.

2. Developing Nuclear Technologies

The Act also incentivizes industry to develop new nuclear technologies.  It lowers the cost of spurring such development by speeding up the licensing process for repurposing retired fossil and chemically contaminated brownfield sites.  For example, hundreds of operating and retired coal plants may be suitable sites for more advanced nuclear power plants.  The Act attempts to lower the cost to convert such locations.

Additionally, the Act instructs the NRC to develop risk-informed and performance-based guidance for regulating and encouraging the use of micro-reactors.  Micro-reactors are transportable nuclear reactors that can provide reliable energy to localized or remote locations.  The Act encourages broader use of the underutilized nuclear technology.

3. Preserving Existing Nuclear Generation

Finally, the Act tries to preserve existing nuclear generation. by relaxing employment and investment regulations in the industry.  Currently, 10 C.F.R. Part 810 authorizes the transfer of commercial nuclear reactor technology to a short list of countries.  Also, the Department of Energy’s “deemed export rule” means domestic companies may only hire foreign workers from these countries.  The Act directs the Department of Energy and the Department of State to determine how to loosen those rules.

Further, the Act opens new investment streams for preserving existing nuclear generators.  The NRC has long enforced a prohibition on majority foreign ownership of nuclear power plants.  The Act now excepts from this prohibition any country that is a member of the Organization for Economic Cooperation and Development (e.g., United Kingdom, France, Israel, Canada, Mexico, Germany) and India.  These new sources of capital may boost the productivity and reliability of current nuclear reactors.

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Attorneys at Baird Holm LLP have experience assisting clients with administrative law and energy-related matters.  If you have any questions about this legislation, please contact the firm.

Hannes D. Zetzsche
Christopher G. Thorpe, Summer Associate