US states start project to cut costs, speed permitting for advanced nuclear units

Energy officials from 10 US states have launched a new initiative to accelerate advanced nuclear power projects in their jurisdictions, focusing on reducing costs, streamlining federal permitting and advancing finance options.

The National Association of State Energy Officials launched the Advanced Nuclear First Mover Initiative on the sidelines of its winter policy outlook conference, held Feb. 4-7 in Washington, DC. The 10 states co-chairing the initiative include Indiana, Kentucky, Maryland, New York, Pennsylvania, Tennessee, Utah, Virginia, West Virginia and Wyoming.

These states are interested in advancing small advanced nuclear power plants that are just beginning to be licensed by the US Nuclear Regulatory Commission. Some of the states have a history with conventional nuclear plants and are looking for lower-cost advanced nuclear alternatives to meet future electricity demand, especially with new manufacturing, data center builds and AI coming online.

"The initiative aims to reduce the cost of advanced nuclear projects and ultimately deliver more power to the electric grid," NASEO said in a press release.

The initiative seeks to reduce financial and technology risks while devising supportive market adoption policies and defining supply chain needs, said NASEO. It will also focus on streamlining federal permitting, developing coordinated procurement options and exploring financing structures that combine state, federal, and private involvement.

The initiative will bring state and private sector participants together to advance its priorities, informed by the nation's leading nuclear experts and NASEO. The state energy group will also collaborate closely with key partners and technical experts. NASEO said formalizing these partnerships through the initiative will be critical to advancing new projects.

Jonathan Ford, executive director of Indiana's energy development office, said in an interview that he will be meeting on Capitol Hill with staffers for the Indiana delegation to brief them on the new effort. He said the initiative is not asking for anything yet from Congress or the new Trump administration, although a key piece of the First Mover initiative is focused on streamlining federal permitting for energy projects.

States have not yet been approached by the Trump administration, Ford said, adding that he is more focused on what Indiana Governor Mike Braun and state legislators would like out of the effort.

Indiana legislation touches on nuclear units

He said there are six bills introduced in the Indiana legislature that would help the state make the jump to small modular reactor development. In moderating a Feb. 4 panel discussion at the NASEO conference, Ford said he is watching one bill that is trying to balance what ratepayers and developers would pay.

The bill, introduced as HB 1007, would allow utilities to only recover a portion of the funds for SMR development from the rate base. Ford says he has been hearing concerns from ratepayers, who fear that the entire cost of SMR deployment would go directly into the utility rate base. The bill also provides tax credits for expenses incurred in the manufacture of SMRs in Indiana.

Another bill he is focused on this session addresses SMR siting. He noted that an Indiana county in recent days, apparently in response to the nuclear discussion in the state legislature, placed a moratorium on all forms of energy generation. He said where these projects are built, and how they are sited, is "a touchy subject" in his state. There are currently no commercial nuclear reactors in Indiana.