Utah, Texas Take Legal Action to Relax SMR Regulations

Utah, Texas, and nuclear developer Last Energy have filed a lawsuit against the U.S. Nuclear Regulatory Commission (NRC), challenging regulations they argue hinder the development of small modular reactors (SMRs) and microreactors. The plaintiffs claim that the NRC’s licensing requirements for constructing and operating these facilities are prohibitively expensive, making such projects economically unfeasible.

The lawsuit asserts that smaller nuclear reactors are more cost-effective, require less fuel, and do not pose significant risks to public health or safety. However, Last Energy says it was forced to abandon a $2 million SMR project in Texas due to what they consider excessive federal regulations. The plaintiffs contend that NRC’s rules impede the development of safe and reliable nuclear energy.

“The NRC imposes complicated, costly, and time-consuming requirements on even the smallest and safest SMRs and microreactors — including those not powerful enough to power an LED lightbulb — to obtain and maintain a construction and operating license,” the lawsuit states.

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This legal action follows efforts by both Utah and Texas to expand nuclear energy. Utah Governor Spencer Cox recently unveiled “Operation Gigawatt,” a $20.4 million initiative to develop carbon-free nuclear power infrastructure in the state. In Texas, the 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 raised concerns about the potential risks of easing federal regulations. They argue that the lawsuit’s claims about the safety of SMRs could be misleading and that the current 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,” said Stanley Holmes, outreach coordinator for Utah Citizens Advocating Renewable Energy. “They’re trying to get the NRC to weaken its standards.”

A spokesperson for the NRC stated that the agency would address the lawsuit in court filings.

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