Next-Generation Nuclear Energy Developer Sues Federal Regulators
A lawsuit recently filed by Utah, Texas, and Last Energy (a microreactor company) is challenging a Nuclear Regulatory Commission (NRC) rule requiring all nuclear power-producing entities—including those that do not generate enough electricity to turn on a lightbulb—to obtain an operating license from the commission before turning on. If successful, the lawsuit could diminish the federal government’s role in the heavily regulated nuclear energy industry.
The requirement, known as the Utilization Facility Rule, can be traced back to the McMahon Act of 1946. This law gave the government a monopoly on nuclear power by granting federal regulators licensing authority over any equipment or device capable of making fissile material or “adapted for making use of atomic energy.”
This heavy-handed regulation stunted the growth of commercial nuclear energy in America. Recognizing this, Congress passed the Atomic Energy Act of 1954 to narrow the scope of the federal government’s regulatory authority. Rather than allowing federal regulators to oversee all nuclear-related equipment and technologies, the law limited the fed’s authority to technologies whose use of “special nuclear material” was deemed a risk to national security and public health and safety.
Despite an order from Congress to pare down its oversight, the Atomic Energy Commission—the NRC’s predecessor—adopted a rule in 1956 that allowed it to regulate all commercial nuclear reactors (similar to the McMahon Act), which lives on today through the NRC’s Utilization Facility Rule.
The regulation imposes significant costs on all nuclear energy developers, especially startups like Last Energy, which builds 20-megawatt (MW) micro nuclear reactors that are inherently safe and pose no significant risk to the public or environment. Designed to be operational within two years, these reactors fit within “a container that is fully sealed with twelve-inch-thick steel walls, and as such, has no credible mode of radioactive release even in the worst reasonable scenario,” according to the lawsuit.
Test reactors on college campuses, which the NRC has recognized present “a lower potential radiological risk to th
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
