Up & Atom

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.

Congress recently passed legislation to ban imports of Russian uranium products into the United States. The Prohibiting Russian Uranium Imports Act (HR 1042) (the Act) was approved by the House of Representatives on December 11, 2023, and the Senate on April 30, 2024. President Biden plans to sign the bill, and the ban would go into effect 90 days later.

The NRC’s Acting Executive Director for Operations recently issued the results from the NRC staff’s annual Reactor Oversight Process (ROP) self-assessment for calendar year 2023. Out of the 17 metrics it evaluated, the NRC staff found that two did not meet or exceed expected performance, resulting in “yellow” findings. This is an overall improvement from the 2022 self-assessment, which had two “yellow” and two “red” findings due, in part, to continuing challenges from the COVID-19 pandemic. Overall, the staff concluded that the “ROP remained effective in achieving its goals of being objective, risk-informed, understandable, and predictable, as well as in supporting the agency’s strategic goals.”