Utah and Texas, alongside nuclear developer Last Energy, have filed a lawsuit against the U.S. Nuclear Regulatory Commission (NRC), seeking to ease regulations they claim hinder the development of small modular reactors (SMRs) and microreactors. The plaintiffs argue that the NRC licenses required for the construction and operation of these facilities are “incredibly costly,” rendering such projects economically unfeasible.
According to the filing, these smaller nuclear reactors are more cost-effective, require less nuclear fuel, and do not pose a threat to public health or safety. However, Last Energy said it was forced to abandon a $2 million SMR project in Texas due to “prohibitive federal regulations.” The plaintiffs contend that the NRC’s rules for small nuclear reactors “hinder the development of safe and reliable nuclear power.”
“The NRC imposes complicated, costly and time-intensive requirements that even the smallest and safest SMRs and microreactors — down to those not strong enough to power an LED lightbulb — must satisfy to acquire and maintain a construction and operating license,” the lawsuit said.
The lawsuit follows recent moves in both states to bolster nuclear energy. Utah Gov. Spencer Cox recently announced “Operation Gigawatt,” a $20.4 million initiative to develop carbon-free nuclear power infrastructure in the state. Meanwhile, in Texas, the state’s Public Utility Commission has recommended expanding nuclear energy to improve grid reliability and energy security.
Critics, including the group Utah Citizens Advocating Renewable Energy, have voiced concerns about the potential risks of loosening federal regulations. The group argues the lawsuit’s claims about how safe SMRs are may be misleading and that regulations are necessary to ensure public safety.
“It’s totally disingenuous for them to say that this is safe and that there’s basically no danger,” Stanley Holmes, outreach coordinator for Utah Citizens Advocating Renewable Energy, said. “They’re trying to have the NRC dumb down, or weaken, its standards.”
A spokesperson for the NRC stated that the agency will address the lawsuit in court filings.