Up & Atom

President Donald Trump recently established the National Energy Dominance Council through an executive order aimed at increasing the United States’ energy production and achieving energy dominance. The executive order seeks to promote the use of US natural resources, including uranium, and the Council has been tasked with providing recommendations to the president within 100 days, including actions that can be taken to bring small modular nuclear reactors online.

The NRC’s Office of Investigations (OI) recently published its Annual Report for Fiscal Year 2024, summarizing its activities from October 1, 2023 through September 30, 2024. According to the annual report, OI opened 82 new cases in FY 2024, the same number it opened in FY 2023. But OI increased its number of case closures in FY 2024 and closed 82 cases compared to 72 closures in FY 2023, a 14% increase. In total, OI conducted 129 investigations in FY 2024. Below, we analyze how OI investigations compare to the previous fiscal year and significant OI investigations highlighted in the Annual Report.

The NRC recently issued Regulatory Issue Summary (RIS) 2025-02, which asks reactor licensees to voluntarily provide information about their plans for power-uprate licensing submittals. The NRC will use this information to set future budgets and project resource needs to review these anticipated applications. The anticipated spate of power uprates stems primarily from significant increases in power demand projections propelled by data centers, electrification, and other economic drivers. Although responses are voluntary, applicants who provide advance notice will receive priority in the NRC review process.

The United States and Thailand signed an agreement on January 14, 2025, which outlines peaceful nuclear cooperation between the two countries. The agreement is authorized by Section 123 of the Atomic Energy Act of 1954, as amended (42 USC § 2153) (AEA), and is known as a “123 Agreement.” That same day, former President Biden transmitted that 123 Agreement and a Nuclear Proliferation Assessment Statement (NPAS) to Congress for their review. Congress has 90 days of being in session to either disapprove or passively allow the Agreement to take effect.

A recent decision by the US Court of Appeals for the Federal Circuit reinstated claims seeking indemnification under the Price-Anderson Act. In reversing a decision by the US Court of Federal Claims, the Federal Circuit affirmed the broad scope of the Price-Anderson Act’s contractual indemnity provision. In particular, the Federal Circuit found that the Price-Anderson Act requires the government to indemnify more entities than just those that directly contracted with the government. Instead, the statutory language contemplates indemnity to “any other person who may be liable for public liability.”

The US Department of Energy’s failure to transport and store spent nuclear fuel (SNF) pursuant to the Nuclear Waste Policy Act has required the government to reimburse the industry for substantial storage costs, and future payments are expected to increase. The DOE expects that its SNF liability has increased approximately 10% within the past year. While there are no expectations for a spent fuel storage solution in the United States anytime soon, other countries are establishing nuclear waste repositories.

The National Environmental Policy Act of 1969 (NEPA) requires federal agencies, including the Nuclear Regulatory Commission (NRC), to evaluate the potential environmental impacts of their proposed actions. That statute also established the White House Council on Environmental Quality (CEQ), which was tasked with issuing NEPA implementation guidelines.

The demand for energy is anticipated to rise significantly due to the increased deployment of artificial intelligence (AI) technologies, which are highly energy intensive. As we discussed in a recent thought leadership piece, there is a strong intersection between nuclear power and AI. Not only is nuclear power generation well-positioned to address the growing need for powering AI, but the nuclear power industry and its primary regulator, the US Nuclear Regulatory Commission (NRC) are looking to leverage AI to increase efficiency and strategic decision-making.

The US Supreme Court’s recent Loper Bright decision overturned its 1984 Chevron decision, which, over the last 40 years, had become a fundamental doctrine in administrative law. That doctrine, known as the “Chevron deference,” instructed reviewing courts to defer to agency interpretations of ambiguous statutory provisions if a permissible construction of the statute. While many agencies relied on Chevron deference to defend challenges to their rulemakings and other regulatory actions, the NRC has rarely needed to do so.

Morgan Lewis routinely assists licensees in connection with NRC allegations, investigations, and enforcement. The following are summaries of trends and findings in the NRC’s 2023 Allegation Program Annual Trends Report and Enforcement Program Annual Report.