White Paper

US Policies to Accelerate Nuclear Energy

Introduction: The Imperative for Advanced Nuclear Energy The United States is experiencing a significant surge in energy consumption, fueled by emerging technologies such as artificial intelligence (AI) and the proliferation of data centers, which require substantial and continuous power 1. The increasing electrification of various sectors, including transportation, further amplifies the need for reliable and […]

Published March 20, 2025

Introduction: The Imperative for Advanced Nuclear Energy

The United States is experiencing a significant surge in energy consumption, fueled by emerging technologies such as artificial intelligence (AI) and the proliferation of data centers, which require substantial and continuous power 1. The increasing electrification of various sectors, including transportation, further amplifies the need for reliable and scalable electricity generation 5. Climate change, however, poses the imperative to transition to clean energy sources. While solar and wind play a vital role in this transition, their intermittency necessitates the inclusion of firm, clean power sources capable of providing baseload electricity to ensure grid stability and reliability 2.

Advanced nuclear energy presents a significant opportunity to address the dual challenge of energy demand and decarbonization by providing a reliable, clean, and versatile power source. The inherent safety characteristics and operational flexibility of advanced reactors position them as a critical element in a future energy portfolio that prioritizes reliability, environmental sustainability, and economic affordability. The current momentum and renewed interest in nuclear energy within the United States suggest a potential paradigm shift for the industry, moving towards the adoption of these next-generation technologies.

This paper analyzes the key strategies and initiatives currently underway to accelerate the growth of the advanced nuclear energy industry in the USA. These efforts encompass a comprehensive approach involving policy and regulatory reforms, substantial financial incentives, cutting-edge technological advancements, the development of critical infrastructure, and robust collaborative partnerships. By examining these multifaceted endeavors, this paper aims to provide a clear understanding of the pathways and potential for the rapid expansion of advanced nuclear energy in the nation, highlighting its crucial role in ensuring energy security, fostering economic growth, and achieving a sustainable energy future.

Advanced nuclear reactors offer several key advantages over traditional nuclear power plants. Many designs incorporate enhanced safety features, such as passive safety systems that rely on natural physical processes like gravity and convection to shut down the reactor in case of an emergency, reducing the need for active controls or human intervention 20. These advanced reactors also promise improved efficiency and fuel utilization, extracting more energy from the same amount of fuel and potentially reducing the volume of spent fuel 8. A significant trend in advanced nuclear technology is the development of smaller sizes and modular construction, allowing for factory fabrication, easier transportation, and quicker deployment compared to large, site-built conventional reactors 1. Furthermore, advanced nuclear reactors exhibit versatility in their applications, extending beyond electricity generation to include the provision of process heat for industrial applications, the production of clean hydrogen, and water desalination, contributing to the decarbonization of multiple sectors 3.

The United States is witnessing a resurgence of interest in nuclear energy as a vital component of its long-term energy strategy, with renewed attention from both policymakers and industry leaders 16. While the existing fleet of conventional nuclear power plants continues to provide a significant portion of the nation’s clean electricity, advanced reactor technologies hold the potential to supplement and eventually transform the nuclear energy landscape 11. The unique capabilities of advanced reactors, coupled with increasing energy demands and climate imperatives, position the US to potentially become a global leader in the development and deployment of these innovative technologies 2. Federal and state governments are working in unison to create a conducive environment for the accelerated development of advanced nuclear energy.

Public-private partnerships are crucial for accelerating the advanced nuclear energy industry, leveraging the combined expertise and resources of both government and the private sector 12. Programs like ARDP exemplify successful public-private cost-sharing models that invest in rapidly developing designs to expand access to clean energy and capitalize on market opportunities 30. The GAIN initiative is specifically designed to foster these partnerships by providing a framework for collaboration between private sector innovators and national laboratories 80. The Advanced Nuclear First Mover Initiative also aims to create public-private partnerships to advance the deployment of advanced nuclear energy 12. These collaborations are essential for sharing financial and technological risks, devising supportive policies, and developing coordinated procurement strategies 12.

The availability of substantial federal funding and financial incentives plays a critical role in supporting the advancement of the advanced nuclear energy industry. Cost-shared programs like ARDP and the Licensing Cost-Shared Grant Program help to alleviate the significant financial burdens associated with developing and licensing first-of-a-kind advanced reactor technologies. Public-private partnerships are indispensable for effectively leveraging the diverse expertise and resources of both government and industry, thereby accelerating the pace of innovation and commercialization. Tax credits and loan guarantees provide crucial long-term financial stability and serve as powerful catalysts for attracting private investment into the sector.

Federal Government Policies and Legislative Initiatives

The federal government has implemented several key policies and legislative initiatives to foster the acceleration of the advanced nuclear energy industry in the United States.

The ADVANCE Act signifies a crucial step towards streamlining the often-complex regulatory landscape, which has historically been a significant impediment for the nuclear industry.

The ADVANCE Act of 2024

The Accelerating Deployment of Versatile Advanced Nuclear for Clean Energy (ADVANCE) Act, enacted in 2024, includes several critical provisions designed to expedite the development and deployment of advanced nuclear technologies 20. The primary focus of the Act is to streamline the licensing process conducted by the Nuclear Regulatory Commission (NRC), ensuring efficient, timely, and predictable reviews of license applications for new reactors 77. It mandates the establishment of an expedited procedure for reviewing qualifying new reactor license applications, potentially reducing the overall timeline for project approval 77. Recognizing the unique aspects of emerging nuclear technologies, the ADVANCE Act also directs the development of a regulatory framework specifically tailored for fusion technology and the licensing and regulation of microreactors, small, transportable reactors with significant potential for diverse applications 77. To encourage investment and international collaboration, the Act removes certain limitations on foreign ownership of some types of licensed nuclear facilities, potentially opening new avenues for funding and expertise 84. Furthermore, the legislation continues to support international coordination on nuclear technologies and licensing activities, fostering the exchange of best practices and harmonization of standards 84. The Act also aims to reduce the financial burden on advanced reactor developers by implementing changes to how the NRC recovers fees from licensees, including setting a lower hourly rate for advanced reactor applicants and pre-applicants 84.

The Inflation Reduction Act (IRA) of 2022

The Inflation Reduction Act (IRA) of 2022 provides substantial financial support for clean energy investments, including significant provisions for the nuclear energy sector 16. The IRA includes billions of dollars in tax credits and subsidies aimed at lowering energy costs and encouraging the deployment of clean energy technologies. Notably, it offers technology-neutral tax credits to produce and investment in clean electricity, such as the Production Tax Credit (PTC) and Investment Tax Credit (ITC), which are applicable to nuclear power generation 16. The Act also allocates funding for loan guarantees to support clean energy projects, including advanced nuclear reactors, and establishes the High-Assay Low-Enriched Uranium (HALEU) Availability Program with dedicated funding to support the development of a domestic fuel supply chain for advanced reactors 16.

The Bipartisan Infrastructure Law

The Bipartisan Infrastructure Law, enacted prior to the IRA, also provides crucial support for the advancement of nuclear energy. It allocates significant funding towards the Department of Energy’s (DOE) Advanced Reactor Demonstration Program (ARDP), which aims to accelerate the demonstration and deployment of innovative advanced reactor designs through cost-shared partnerships with industry 16. Additionally, the law includes investments in infrastructure improvements at national laboratories, which play a vital role in nuclear energy research and development 16.

The Energy Act of 2020

The Energy Act of 2020 laid the groundwork for several key initiatives supporting advanced nuclear energy. It formally established the Advanced Reactor Demonstration Program (ARDP) and the HALEU Availability Program, recognizing the importance of both technological development and fuel supply for the future of the industry 20.

State-Level Policies and Initiatives

Several states are taking proactive steps to accelerate the deployment of advanced nuclear energy within their jurisdictions. The increasing number of state-level initiatives reflects a growing recognition of the vital role that advanced nuclear energy can play in meeting regional energy demands and achieving climate change mitigation goals.

NASEO’s Advanced Nuclear First Mover Initiative

The National Association of State Energy Officials (NASEO) launched the Advanced Nuclear First Mover Initiative to support states in exploring opportunities to reduce the costs and risks associated with advanced nuclear projects and to meet rapidly growing power needs 1. The goals of the initiative include reducing financial and technology risks, devising supportive market adoption policies, defining supply chain needs, streamlining federal permitting, developing coordinated procurement options, exploring state-federal-private financing structures, and creating public-private partnerships 1. Ten states are participating in this initiative: New York, Indiana, Kentucky, Tennessee, Wyoming, Maryland, Pennsylvania, Utah, Virginia, and West Virginia, with New York, Indiana, Kentucky, Tennessee, and Wyoming serving as co-chairs 1.

New York State’s Master Plan for Responsible Advanced Nuclear Development

New York State initiated a process to develop a Master Plan for Responsible Advanced Nuclear Development, aiming to create recommendations for the implementation of advanced nuclear technologies within the state 15. The New York State Energy Research and Development Authority (NYSERDA) is leading this effort in collaboration with other state agencies 15. As a preliminary step, NYSERDA published a Blueprint for Advanced Nuclear Energy Technologies to outline the scope of issues to be considered 15. To better understand the potential landscape of nuclear project development, NYSERDA has also issued an ongoing Request for Information (RFI) soliciting input from entities interested in pursuing a role in advanced nuclear energy technology development in New York 15.

Other State Initiatives

Several other states are actively pursuing policies and initiatives to support advanced nuclear energy. Indiana has introduced legislation to facilitate the development of small modular reactors (SMRs) 1. Tennessee has established a Nuclear Energy Advisory Council and a Nuclear Energy Fund to attract advanced nuclear technology companies and develop the nuclear workforce 3. Texas has released a report outlining strategies to become a leader in advanced nuclear energy, and Texas A&M University is establishing a hub for advanced reactor deployment and testing 3. Utah has launched “Operation Gigawatt” with a significant budget allocation to prepare the state for integrating nuclear reactors 3. Virginia has established the Virginia Nuclear Energy Consortium and the Virginia Power Innovation Fund to support nuclear energy research and development, with a goal to build a Small Modular Reactor (SMR) within the next decade 3. Several states have also lifted historical bans on nuclear development, signaling a growing acceptance of nuclear energy as part of their energy mix 3.

The Role of the Nuclear Regulatory Commission (NRC)

The Nuclear Regulatory Commission (NRC) plays a crucial role in ensuring the safe and secure use of nuclear materials and the operation of nuclear facilities in the United States 17. It is responsible for licensing the construction and operation of nuclear reactors and for developing and enforcing regulations related to nuclear safety and environmental protection 96.

The NRC has established different licensing pathways for nuclear reactors, including Part 50 for a two-step process (construction permit and operating license) and Part 52 for a combined license covering both construction and operation 97. Recognizing the need to adapt to the advancements in nuclear technology, the NRC is in the process of developing Part 53, a risk-informed and technology-inclusive regulatory framework specifically for advanced reactors, which is expected to be available in the near future 86. The NRC encourages potential applicants to engage in a pre-application process to facilitate early communication and issue resolution, which has become increasingly common with the rise of advanced reactor developers 97. The agency is also actively working to modernize its regulations and guidance to better accommodate the unique features of advanced reactor designs, as mandated by the ADVANCE Act 73.

The NRC’s ongoing efforts to modernize its regulatory framework are critical to ensuring the safe and efficient deployment of advanced reactors, requiring continuous adaptation to the evolving technological landscape.

Federal Funding Opportunities and Grant Programs

The US Department of Energy (DOE) offers several key funding opportunities and grant programs to support the development and deployment of advanced nuclear energy technologies.

DOE’s Advanced Reactor Demonstration Program (ARDP)

The Advanced Reactor Demonstration Program (ARDP) is a cornerstone of the federal government’s strategy to accelerate the commercialization of advanced nuclear reactors 30. The program aims to demonstrate advanced reactors through cost-shared partnerships with US industry, providing financial and technical support to de-risk these first-of-a-kind technologies 30. ARDP encompasses multiple development and demonstration pathways, including projects expected to result in fully functional advanced reactors within seven years, risk reduction efforts for future demonstrations, and support for innovative designs with potential for commercialization in the mid-2030s 30. The program leverages the capabilities of the National Reactor Innovation Center (NRIC) and the national laboratory system to efficiently test and assess advanced reactor technologies 30.

DOE’s Gateway for Accelerated Innovation in Nuclear (GAIN) Initiative

The Gateway for Accelerated Innovation in Nuclear (GAIN) initiative serves as a crucial bridge between private sector innovators and the world-class research capabilities of the DOE’s national laboratories 18. GAIN facilitates the establishment of public-private partnerships by offering industry partners a single point of access to nuclear expertise and facilities 80. Through the GAIN Nuclear Energy Voucher program, the initiative provides funding to DOE national laboratories to conduct research or technical support activities for companies developing advanced nuclear technologies 80. This cost-sharing initiative aims to accelerate the cost-effective commercialization of advanced nuclear energy technologies by providing access to technical, regulatory, and financial support 80.

DOE’s Advanced Nuclear Energy Licensing Cost-Shared Grant Program

The DOE has also established the Advanced Nuclear Energy Licensing Cost-Shared Grant Program to help offset the costs associated with licensing fees for companies seeking to bring advanced reactors to market 17. This competitive funding opportunity aims to increase regulatory certainty and expedite the deployment and commercialization of both light-water and non-light water advanced reactor designs 17. The program supports both early-stage activities, such as the review of white papers and topical reports prior to formal license application submission, and later-stage review activities conducted by the NRC, including safety, security, and environmental reviews 17. The DOE has announced up to $13 million is available through this program, with applications due by April 8, 2025 17. Subject to appropriations, the funding opportunity will be open for five years with a total of up to $50 million available 17.

Tax Credits, Loan Guarantees, and Other Financial Mechanisms

Beyond direct funding programs, the federal government provides several other financial mechanisms to incentivize the development and deployment of advanced nuclear energy. The Inflation Reduction Act of 2022 introduced technology-neutral tax credits for clean electricity production and investment, which are applicable to nuclear power 16. These include the Production Tax Credit (PTC) for electricity generated and the Investment Tax Credit (ITC) for capital investments in clean energy facilities 16. Additionally, the DOE offers federal loan guarantees for advanced nuclear reactors and other emission-free technologies, covering a significant portion of project costs and helping to mitigate financial risks 16. The Energy Policy Act of 2005 created Section 45J Advanced Nuclear Production Tax Credit, which provides targeted tax subsidies for eligible advanced nuclear power plants 20. Furthermore, the Section 45U Zero-Emissions Nuclear Power Production Tax Credit aims to preserve the long-term operation and encourage reinvestment in existing nuclear power plants, providing financial stability to the sector 20.

Technological Advancement and Infrastructure Development

Research and Development Efforts

The US Department of Energy’s Office of Nuclear Energy (NE) actively sponsors research, development, and deployment (RD&D) activities for advanced reactor technologies through its various programs, including the Next Generation Nuclear Plant (NGNP), Advanced Reactor Concepts (ARC), and Advanced Small Modular Reactor (ASMR) programs 29. These efforts aim to promote safety, technical, economic, and environmental advancements in nuclear fission energy systems 29. National laboratories, such as Idaho National Laboratory (INL), are at the forefront of these research efforts, focusing on advanced reactor fuels, materials, and innovative technologies 35.

HALEU Fuel Supply Chain Initiatives

High-Assay Low-Enriched Uranium (HALEU), enriched between 5% and 20% uranium-235, is essential for the operation of many advanced reactor designs, enabling smaller reactor sizes, longer operating cycles, and increased efficiencies compared to traditional low-enriched uranium fuel 8.

Establishing a secure and reliable domestic HALEU fuel supply chain is a crucial prerequisite for the successful deployment of many promising advanced reactor designs. Recognizing the current lack of a robust domestic commercial HALEU supply chain, the DOE has established the HALEU Availability Program to support the development of a diverse, market-based supply 8. The DOE has awarded contracts to several companies for HALEU enrichment and deconversion services, aiming to build a secure domestic fuel supply 83. The HALEU Consortium, established by the DOE, serves as a platform for communication and collaboration among stakeholders to inform the Department’s activities in securing a domestic HALEU supply 8.

INL’s DOME (Demonstration of Microreactor Experiments) Project

INL collaborates with universities and industry partners worldwide to test and validate next-generation nuclear reactor fuels designed for enhanced efficiency and accident tolerance 35.

Idaho National Laboratory’s DOME project involves repurposing the containment dome of the former Experimental Breeder Reactor-II (EBR-II) facility to create a test bed for advanced microreactors 2. DOME is designed to host tests of advanced experimental reactors capable of producing up to 20 megawatts thermal (MWth) and fueled with High Assay Low-Enriched Uranium (HALEU) 125. This facility will provide crucial infrastructure for private industry to advance and derisk their microreactor designs, with operations expected to begin in 2026 125.

Texas A&M RELLIS Campus “Energy Proving Ground”

Universities also play a vital role in nuclear research, with programs like the one at Texas A&M University focusing on advanced nuclear technology 2. The “Energy Proving Ground” initiative at its RELLIS campus is partnering with four advanced nuclear companies (Kairos Power, Natura Resources, Terrestrial Energy, and Aalo Atomics) to build and test their small modular reactor (SMR) technologies 2. The goal of this project is to create a leading hub for nuclear science, with a projected combined electrical output of more than one gigawatt (GWe) from the deployed SMRs 2. The first reactors could be constructed within five years, supplying power to the Electric Reliability Council of Texas (ERCOT) grid 2.

Waste Management Solutions

Managing radioactive waste from nuclear reactors remains a significant challenge, and ongoing research focuses on developing safe and effective solutions 10. Advanced reactor companies are developing waste management plans to handle waste from different fuels, structural materials, and coolants 147. Many advanced reactor designs aim to improve fuel efficiency and potentially reduce the volume and longevity of radioactive waste 11. Some designs are also exploring the use of recycled fuel to further minimize waste generation 11. Currently, spent nuclear fuel is primarily stored in interim storage facilities at reactor sites, and the development of permanent disposal pathways remains a critical priority 150.

International Collaborations

The United States actively engages in international collaborations to advance its nuclear energy goals. US policy on peaceful nuclear cooperation, implemented through agreements like “123 agreements” and the Foundational Infrastructure for Responsible Use of Small Modular Reactor Technology (FIRST) program, aims to promote nuclear energy as a clean energy solution while adhering to the highest standards of nuclear safety, security, and nonproliferation 36. The DOE conducts bilateral and multilateral agreements for research and development with international partners, including through the Generation IV International Forum 29. The US also collaborates with specific countries, such as the UK and Canada, to speed up the development and deployment of advanced nuclear technologies and to cooperate on licensing processes 73.

Key Challenges Hindering Acceleration

Despite the significant progress and momentum in the advanced nuclear energy sector, several key challenges still need to be addressed to ensure its accelerated growth.

  • Regulatory Hurdles. The regulatory process for licensing new nuclear reactors, overseen by the NRC, can be complex and time-consuming 17. While the ADVANCE Act aims to streamline this process, further efforts are needed to adapt regulations specifically for the unique characteristics of advanced reactor designs and to ensure efficient and predictable review timelines 29.
  • High Upfront Capital Costs. Nuclear energy projects, including advanced reactors, typically require substantial upfront capital investments, which can be a significant barrier to deployment 10. Financial incentives, such as those provided by the IRA and DOE funding programs, along with risk-sharing mechanisms through public-private partnerships, are crucial to mitigate these high costs and attract private investment 12.
  • Public Perception and Acceptance. Historical concerns regarding the safety of nuclear power and the management of nuclear waste continue to influence public perception 10. Effective communication and public engagement are essential to address these concerns, build trust in advanced nuclear technologies, and highlight their benefits in terms of clean energy and reliability 5.
  • Supply Chain Development. Establishing a robust domestic supply chain for advanced nuclear reactors, particularly for specialized fuels like HALEU, is critical for the industry’s growth 1. Challenges in manufacturing specialized components and ensuring the availability of necessary materials also need to be overcome75.
  • Workforce Development. The successful acceleration of the advanced nuclear energy industry requires a skilled workforce capable of designing, constructing, operating, and regulating these advanced technologies 2. Investments in workforce training and education programs are essential to meet the anticipated demand for qualified personnel.
  • Waste Management. Unmet need for clear and consistent policies for storage and disposal of spent nuclear fuel and other radioactive waste from advanced reactors, providing certainty for the industry and the public.

Conclusion

The advanced nuclear energy industry in the United States stands at a pivotal moment, with significant opportunities to contribute to the nation’s energy security, economic prosperity, and climate change mitigation efforts. This paper highlights the comprehensive strategies and initiatives currently underway to accelerate the development and deployment of these innovative technologies. From transformative policy and regulatory reforms to substantial financial incentives and cutting-edge research and development, a concerted effort is being made across government, industry, and academia. Addressing the remaining challenges, particularly in the areas of regulatory streamlining, cost reduction, public engagement, supply chain development, and workforce training, will be crucial for realizing the full potential of advanced nuclear energy. A thriving advanced nuclear sector promises to provide a reliable, clean, and versatile energy source, playing a vital role in ensuring a sustainable and secure energy future for the United States.

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