The Nuclear Regulatory Commission (NRC) has thrown down the gauntlet, proposing a dramatic reduction in hourly service fees for advanced nuclear reactor applicants and pre-applicants. This bold move, slashing fees by over 50%, is a clear signal that the NRC is serious about incentivizing innovation and accelerating the deployment of next-generation nuclear technologies. The proposed rule, published in the Federal Register on Feb. 19, introduces a two-tiered hourly rate system, with a drastically reduced rate of $146 per hour for advanced nuclear reactor applicants and pre-applicants, set to take effect on Oct. 1, 2025. This is a significant departure from the current professional hourly rate of $317, which is set to increase to $323 in August 2025.
The NRC’s decision to implement this change early, rather than waiting for the FY26 rule, is a strategic move that will avoid billing delays and provide early notice and an opportunity to comment. The agency said, “It also would provide greater regulatory certainty to external stakeholders for planning and budgeting for future 10 CFR part 170 service fees for advanced nuclear reactor applicants and pre-applicants.” This move is a clear response to the ADVANCE Act, which revised the 2019 Nuclear Energy Innovation and Modernization Act’s (NEIMA’s) fee structure. The ADVANCE Act, signed into law on July 9, 2024, mandates that costs associated with international nuclear export and innovation activities be excluded from the fees collected by the NRC. It also exempts costs related to reviews and pre-application work for early site permits required to demonstrate advanced nuclear reactors at the Department of Energy (DOE) or critical national security infrastructure sites from NRC’s fee calculations.
The NRC’s proposal is poised to be well-received by the advanced nuclear industry, which has consistently called for measures to reduce regulatory costs and streamline licensing pathways. In a 2021 report, the Nuclear Innovation Alliance (NIA) argued that the NRC’s current fee structure has posed a significant barrier to the development and deployment of advanced nuclear reactors, disproportionately burdening new entrants and hindering innovation. “The open-ended costs associated with paying fees impose barriers to new entrants,” the report explains. “License applicants must pay NRC fees before they begin earning revenues. This is particularly burdensome for developers with limited capital and new customer types like small towns, rural communities, and industrial users. NRC is in the process of modernizing its existing regulatory framework, which was designed for light water reactors. At least until this modernization is complete, advanced reactor licensing requires significant extra regulatory work,” it says.
The NRC’s proposed rule also includes a definition of which entities could qualify for reduced fees. An “advanced nuclear reactor applicant” is an entity that has formally applied for a license to build and operate an advanced nuclear reactor. An “advanced nuclear reactor pre-applicant” is an entity that has submitted a detailed licensing project plan outlining its intention to apply for a future license for an advanced nuclear reactor. The reduced hourly rate will only apply to certain activities related to the review of applications submitted by advanced nuclear reactor applicants and pre-applicants. Other NRC activities, such as license amendments or renewals, will continue to be billed at the full professional hourly rate of $323.
The NRC’s decision to reduce fees for advanced nuclear reactor applicants and pre-applicants is a significant step towards fostering innovation and accelerating the deployment of next-generation nuclear technologies. This move could potentially reshape the nuclear energy sector by making it more accessible for new entrants and encouraging the development of advanced nuclear reactors. The NRC’s proposal is a clear indication that the agency is committed to supporting the growth of the nuclear energy sector and is willing to take bold steps to achieve this goal. The agency is actively seeking feedback on all aspects of the proposed rule, with a deadline for submitting comments set for March 21, 2025. The NRC is expected to hold a public meeting to describe the FY2025 proposed rule and answer questions from the public. This move could potentially reshape the nuclear energy sector by making it more accessible for new entrants and encouraging the development of advanced nuclear reactors.
