Rightsizing Regulation To Usher In Next-Generation Nuclear
On May 1, the Nuclear Regulatory Commission issued a proposed rule that would establish a new risk-informed, performance-based regulatory framework for the "rapid," high-volume licensing and deployment of first-of-a-kind and "nth-of-a-kind" microreactors and other reactors "with comparable risk profiles" generally considered to be lower than those of traditional light-water reactors.1
The new regulatory framework, Title 10 of the Code of Federal Regulations, Part 57, would create licensing and approval pathways for construction permits, operation licenses, manufacturing licenses and standard design approvals.
Critically for developers, Part 57 would enable applicants to request a single construction permit and multiple operating licenses for multiple nuclear reactors "of essentially the same design" to be built at one or more specific sites or within designated geographic regions. The NRC intends for the proposed rule to expedite licensing reviews, enabling the NRC to reach a final decision on an operating license application, for instance, within six to 12 months. The proposed rule would enable the NRC to meet such time frames by streamlining and focusing its safety reviews.
This proposed rule comes on the heels of a recent flurry of NRC rulemaking, much of which is aimed to recalibrate the NRC's regulatory scheme to fast-track the licensing and deployment of next-generation nuclear technologies. Next-generation nuclear — long promised in the U.S. but not yet realized — seems to be having its moment.
Although there is no single, agreed-upon definition of "next generation" or "advanced" nuclear technologies in the industry, it generally is understood to include a wide range of fission and fusion-based technologies designed to generate power that feature enhanced safety and efficiency characteristics, yield less waste and present operational flexibility — a set of features that the reactors of our current operating fleet are generally agreed to lack. In theory, these technologies are expected to be smaller, safer and more flexible, enabling a wide array of use cases.
The country's current commercially operating fleet of 54 nuclear power plants with 94 reactors is composed of large light-water reactors. Getting these types of reactors up and running famously takes a tremendous amount of resources, which has been a barrier to the expansion of the current U.S. fleet. Only three new nuclear reactors have come online in the U.S. since 1996, with the two most recent reactors starting commercial operation in 2023 and 2024 after a collective 15 years of construction reportedly costing more than $30 billion and roughly four years of NRC licensing proceedings.
This is all poised to change, fueled in part by our nation's collective current enthusiasm for next-generation nuclear and a decades-long history of discussions regarding how to facilitate the commercial deployment of next-generation technologies and calls for reforms to nuclear energy regulation. This has set the stage for regulatory changes across multiple federal agencies, including the current burst of NRC rulemaking activity we are now seeing.
Further changes are expected from the U.S. Department of Energy and the U.S. Department of Defense. As with the proposed rule for Part 57, all agency changes will likely be aimed at creating efficiencies in agency reviews of next-generation nuclear projects. These changes will likely also benefit large light-water reactors, to the extent utilities pursue such projects.
In the meantime, advanced nuclear projects continue to move forward under existing regulatory authority, with the NRC issuing licenses and approvals for advanced reactor technologies under Title 10 of the Code of Federal Regulations, Parts 50 and 52.
Stakeholders should expect to see improved efficiencies in the years ahead as the NRC and its partner agencies continue to streamline existing and newly established procedures (such as the NRC's Parts 53 and 57). Processes will likely continue to be refined further, to the industry's benefit, as the agencies gain more experience with these types of projects. Stakeholders should pay close attention to future regulatory changes and be prepared to modify licensing strategies appropriately to ensure they are taking advantage of the most efficient path forward.
The Moment
This is an exciting time for the industry. At least a dozen startups have been engaging with the government on novel, highly variable new reactor designs.
For instance, Westinghouse Electric Company is developing the eVinci Microreactor, a 15 megawatt transportable microreactor that can be installed on-site in less than 30 days. Aalo Atomics is developing a seven-microreactor plant designed to power an artificial intelligence data center next to the Idaho National Lab, with the plant looking less like a nuclear power plant and more like a house one would expect to see in a residential neighborhood.2
Data centers, startups and utilities are increasingly entering into power purchase agreements for nuclear power. Last year, Google signed deals with startups Commonwealth Fusion Systems and Elementl Power to develop advanced nuclear projects.3
Both federal and state governments are taking unprecedented action to support the speedy development and deployment of advanced reactor technologies. They continue to roll out incentives to develop and support advanced nuclear energy across all phases of the nuclear life cycle.
For instance, the DOE recently awarded over $19 million to five U.S. companies to research and develop recycling technologies for spent nuclear fuel, and it previously awarded three companies $2.7 billion to strengthen domestic enrichment services.4 Kentucky, Texas and Utah have allocated millions each to support advanced nuclear development, with other states considering similar actions.5
The federal government is also beginning to enter into agreements to supply federal facilities with nuclear power: The Defense Innovation Unit of the Air Force entered into an agreement with startup Radiant Industries Inc. to deliver a mass manufacturer nuclear microreactor to a U.S. military base.6 At least five states have removed historical bans on nuclear energy development, with several additional states currently contemplating similar reversals.
How We Got Here
While it is easy to attribute the current flurry of activity to this administration's zeal for nuclear energy, the effort to foster the development of advanced nuclear actually dates back to 1979, when the NRC first considered the safety and licensability of advanced reactor concepts.
Since then, the NRC has continued analyzing the best approach for regulating advanced reactors, including through several activities exploring the potential development of risk-informed, performance-based, technology-neutral requirements for licensing nuclear power reactors.
For instance, in 2001, the NRC published its Future Licensing and Inspection Readiness Assessment, which evaluated the NRC's existing processes suitability for addressing new commercial nuclear power plants, with a focus on advanced reactor activities.7 In 2016, the NRC published its vision and strategy for a new risk-informed, performance-based regulatory framework for new nuclear reactor technologies, and in 2020, it endorsed the industry-led, DOE-supported Licensing Modernization Project's approach to developing a technology-inclusive, risk-informed and performance-based methodology for non-light water reactor designs.8
Much of this activity demonstrates the NRC's long recognition that the historical regulatory scheme would not necessarily be the best fit for next-generation technologies. As the NRC recently stated in its Part 53 final rule, its existing licensing regulations authorizing construction and operation of nuclear reactors, Parts 50 and 52, "were primarily developed to address license requests concerning light water-cooled reactors and operational requirements for those types of reactors."
External calls for reform within the NRC also predate this administration, though they have certainly been amplified by it.
The Nuclear Energy Innovation and Modernization Act of 2019 and the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act of 2024 call on the NRC to take specific actions aimed at modernizing its regulations and streamlining its approval processes to facilitate the deployment of advanced nuclear technologies.9 This includes establishing "a technology-inclusive, regulatory framework for optional use by commercial advanced nuclear reactor applicants for new reactor license applications."
This administration's ongoing attempt to jump-start the nation's nuclear energy industry builds on this history. In May 2025, President Donald Trump issued four executive orders designed to revamp different facets of the industry, including NRC regulation of nuclear energy, the regulation and use of nuclear energy at the DOE and DOD, nuclear fuel production, disposal and recycling, and the nuclear energy workforce. Collectively, these orders require the NRC and DOE to revise their respective regulations for nuclear energy development to speed up nuclear plant licensing and reactor testing.
The executive orders also call on the DOE and DOD to deploy advanced nuclear energy at their respective facilities, something both agencies have begun implementing (i.e., the DOE is working with 10 companies through its Reactor Pilot Program with the goal of reaching criticality for at least three advanced nuclear reactor concepts located outside of the national laboratories by July 4, 2025; the DOD in early 2025 selected eight companies as potential suppliers for on-site microreactors through its Advanced Nuclear Power for Installations Program).10
Up Next: Rapid Changes for the Nuclear Regulatory Landscape
This has set the scene for changes to existing NRC, DOE and DOD regulations of nuclear energy to accommodate new technologies, much of which has already occurred or is underway. The 2019 NEIMA, the 2024 Advance Act and last year's nuclear-focused executive orders require the NRC and DOE to take specific actions outlined below. This excludes the new Part 57 discussed above.
Stakeholders can expect to see themes found in the recently proposed Part 57 echoed across future NRC (and possibly also DOE and DOD) activities. This includes enabling risk-informed, performance-based reviews of reactor designs, flexible licensing and approval pathways, streamlined requirements for applications, and streamlined agency application reviews. Stakeholders should also expect new regulatory changes to be designed to facilitate faster timelines for agency reviews and approvals of nuclear energy projects.
Comprehensive NRC Regulation and Guidance Review and Overhaul
Executive Order No. 14300, issued among the May 2025 nuclear energy-focused orders, requires the NRC to comprehensively review and revise its regulations and guidance.11 In response to this requirement, the NRC has initiated a systematic review of its regulations on a tight timeline.12 To date, the NRC has completed five separate rulemakings in response to the executive order and anticipates continuing to issue corresponding rulemakings until Nov. 23, 2026, the deadline under the executive order for the NRC to finish issuing final rules and guidance to conclude its revision process.
Alternative NRC Licensing Pathway
On March 30, the NRC issued its final rule for new regulations; Part 53 establishes an optional, technology-inclusive, risk-informed alternative licensing framework to Parts 50 and 52.13 Part 53 is designed to primarily address next-generation nuclear technologies. Notably, the new regulations replace prescriptive design requirements that the agency has used in the past with defined safety outcomes that commercial nuclear plants must be able to achieve.
Leveraging Prior Agency Approvals
The NRC has issued a proposed rulemaking that would establish a streamlined licensing pathway for commercial nuclear reactor designs already approved by the DOE or DOD.14 The NRC has also issued draft guidance on a new NRC pathway for reactor designs previously approved by the DOE or DOD, focusing on the "key, foundational technical areas that are generally anticipated to share strong overlap between the NRC and DOE or [DOD] requirements."15
National Environmental Policy Act Regulation Updates
The May 2025 executive orders direct the NRC and DOE to streamline their NEPA-implementing regulations. In response, the NRC is contemplating releasing a proposed rule designed to streamline its NEPA regulations, "alleviate unnecessary regulatory burdens," and expand flexibility for applicants and licensees.16
Several recent NRC actions were in the works before May 2025, including the NRC's recently issued final rule amending its categorical exclusions and its October 2024 proposed rule that would establish a generic environmental impact statement for the licensing of new reactors.17
Last year, the DOE established a new categorical exclusion for the authorization, siting, construction, operation, reauthorization and decommissioning of advanced nuclear reactors.18 Additional DOE activity is expected in response to the executive orders.
Conclusion
Advanced reactor developers, utilities and industry seeking to benefit from energy generated by advanced reactors should continue to monitor for regulatory changes that will simplify and expedite the key agency approval processes.
As changes occur, be prepared to quickly evaluate key changes and adjust plans for seeking regulatory approvals in order to take advantage of new, more efficient processes that become available. Those developers with the ability to quickly pivot in their agency approval strategies may be able to get their projects online quicker.
©2026. Published in Law360, Online, May 8, 2026, by LexisNexis Group. Reproduced with permission. All rights reserved.
1 https://www.federalregister.gov/public-inspection/2026-08550/licensing-requirements-for-microreactors-and-other-reactors-with-comparable-risk-profiles.
2 https://www.aalo.com/aalo-x.
3 https://www.wsj.com/articles/google-signs-deal-to-buy-fusion-energy-from-bill-gates-backed-nuclear-startup-9017672b; https://www.prnewswire.com/news-releases/elementl-power-and-google-sign-strategic-agreement-to-develop-locations-for-advanced-nuclear-projects-302447957.html.
4 https://www.energy.gov/ne/articles/does-office-nuclear-energy-awards-19-million-advance-recycling-used-nuclear-fuel; https://www.energy.gov/articles/us-department-energy-awards-27-billion-restore-american-uranium-enrichment.
5 https://fox56news.com/news/kentucky/step-one-in-kentuckys-nuclear-energy-development-awarded-in-grants/; https://govmarketnews.com/texas-advanced-nuclear-development-fund-350-million/; https://utahnewsdispatch.com/2025/06/11/cox-advances-nuclear-agreements-cost-is-nothing-so-far/.
6 https://www.radiantnuclear.com/blog/diu/.
7 https://www.nrc.gov/docs/ML0121/ML012140585.pdf.
8 https://www.nrc.gov/docs/ML1635/ML16356A670.pdf; https://www.nrc.gov/docs/ML2014/ML20147A504.pdf; https://www.nrc.gov/docs/ML1924/ML19241A472.pdf.
9 https://www.govinfo.gov/content/pkg/PLAW-115publ439/pdf/PLAW-115publ439.pdf; https://www.congress.gov/118/plaws/publ67/PLAW-118publ67.pdf.
10 https://www.energy.gov/ne/us-department-energy-reactor-pilot-program; https://www.diu.mil/latest/DOD-selects-eligible-companies-for-the-Advanced-Nuclear-Power-for-Installations-Program.
11 https://www.federalregister.gov/documents/2025/05/29/2025-09798/ordering-the-reform-of-the-nuclear-regulatory-commission.
12 https://www.nrc.gov/docs/ML2530/ML25303A288.pdf.
13 https://www.federalregister.gov/documents/2026/03/30/2026-06048/risk-informed-technology-inclusive-regulatory-framework-for-advanced-reactors.
14 https://www.federalregister.gov/documents/2026/04/02/2026-06414/nrc-reviews-of-reactor-designs-previously-authorized-by-us-department-of-energy-or-department-of-war.
15 https://www.nrc.gov/docs/ML2536/ML25363A192.pdf.
16 https://www.nrc.gov/reading-rm/doc-collections/rulemaking-ruleforum/active/ruledetails?id=2233.
17 https://www.federalregister.gov/documents/2026/03/30/2026-06049/categorical-exclusions-from-environmental-review; https://www.federalregister.gov/documents/2024/10/04/2024-22385/generic-environmental-impact-statement-for-licensing-of-new-nuclear-reactors.
18 https://www.federalregister.gov/documents/2026/02/02/2026-02071/categorical-exclusion-for-advanced-nuclear-reactors.
