With the recent release of Oppenheimer (which I saw—it was awesome), it feels like an appropriate time to talk about a different (and non-explosive) form of nuclear technology—advanced nuclear reactors. Last Friday, the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act passed out of the United States Senate (86-11) as part of the 2024 National Defense Authorization Act. The goal of this bipartisan bill is to lower regulatory barriers for advanced nuclear reactors. The chief obstacle to increased nuclear energy is the immense construction costs associated with satisfying regulatory requirements. Before understanding how the ADVANCE Act would help, we need a deeper understanding of the current problems.
Advanced nuclear reactors are pre-fabricated (constructed off-site, which allows them to maintain the efficiency of a production line), so when reactor designs are approved, the same design can be used in numerous projects. By contrast, traditional reactors are typically custom-designed on-site. Private entities have been competing to develop the best reactor designs. However, many of these private entities struggle to acquire the necessary cash to propose a potential reactor design to the Nuclear Regulatory Commission (NRC). NRC agents currently charge a billing rate of $290 per hour, with a review taking upwards of 18,000 hours, resulting in a typical review cost of $5,220,000! These costs place private developers in a difficult situation, as spending an immense amount of money on designing a reactor and paying regulators (who might reject the design) is a great risk. For example, Oklo Power (an American startup) submitted an application for a 1.5 MW microreactor, and had it denied after 22 months of review from the NRC.
The ADVANCE Act would shift responsibility for supervisory and nonsupervisory support costs, travel costs, training costs, and the administrative costs of different government offices that provide logistical support to the NRC. These costs currently fall on the nuclear developer. In the current state of the bill, the federal government would compensate the NRC for these additional costs in connection with advanced nuclear reactors. Taxpayers should of course be wary of any proposal to subsidize private nuclear power providers, but in this case the money would be going to defray the expenses incurred by our government as the result of a truly burdensome set of federal regulations.
The ADVANCE Act could also expedite the conversion of brownfield sites (land formerly used for industry), particularly former (or closing) fossil fuel facility sites, into nuclear power sites. Pre-fabricated reactors are adaptable and well-suited to these sites; on the other hand, traditional nuclear plants need to be uniquely constructed to match the terrain where they will be located.
Lastly, the ADVANCE Act would provide additional funding (mainly to facilitate a new nuclear traineeship program) to the NRC in order to speed up the review process. In this industry, time truly is money, and costs soar when delays occur.
So the ADVANCE Act would make it easier to build out our nuclear capabilities. Why is that important? Increased nuclear power would help achieve three key goals: increasing power supply in the United States, increasing our country’s energy independence, and increasing the supply of reliable, emissions-free energy.
As a state-based think tank, we don’t often discuss bills in Congress. But if nuclear energy is going to make a resurgence in our country, reform at the federal level will be necessary. Whether the federal government passes this law or not, Missouri could capitalize on the bipartisan desire for clean, reliable nuclear energy and become a leader in the industry.
