Nuclear energy holds a deep significance for Isaiah Taylor, a 25-year-old founder of Valar Atomics, due to his great-grandfather’s involvement in the Manhattan Project. In 2023, Taylor, who left high school to pursue a career in technology, established Valar Atomics. The company is developing a small test reactor, named in honor of Taylor’s great-grandfather. However, Valar Atomics claims that stringent regulations enforced by the US Nuclear Regulatory Commission (NRC), the primary regulatory body for nuclear reactors in the country, have compelled them to develop the reactor overseas.
In early April, Valar Atomics, along with another nuclear startup, Deep Fission, and the states of Florida, Louisiana, and Arizona’s state legislature, joined a lawsuit against the NRC. Initially filed in December by Texas, Utah, and the nuclear company Last Energy, the lawsuit alleges that the NRC’s restrictive regulations on new nuclear reactor construction have practically stalled progress.
Although historically a leader in nuclear energy, the US has only brought three new reactors online in the past 25 years, all facing delays and budget overruns. In contrast, nations such as China and South Korea have advanced swiftly in constructing reactors of various sizes. Some nuclear advocates argue that the US regulatory framework, with its cumbersome requirements and lengthy timelines, is a significant reason for these delays, particularly concerning the development of new smaller reactor designs. They suggest that some reactors should be exempt from NRC oversight. However, there are concerns about attempts to bypass the country’s nuclear regulations for specific designs.
The NRC has faced longstanding criticism for slow permitting processes and contentious interactions with nuclear companies. According to Nick Touran, a licensed nuclear engineer and founder of the website “What Is Nuclear,” the regulatory relationship in the US is often seen as legalistic and adversarial, differing from the more cooperative stances in countries like France and China.
The aforementioned lawsuit further argues that the NRC’s regulation of smaller reactors misinterprets crucial nuclear legislation. The Atomic Energy Act of 1954, which established modern nuclear regulation in the US, mandated regulations for facilities using nuclear material significant to national defense and public safety.
Taylor believes that Valar Atomics’ reactor does not fall under this mandate and asserts that respect for the law would rejuvenate innovation in America. According to Taylor, innovation is a key driver of the American economy.
In response, NRC spokesperson Scott Burnell stated that the agency will address the litigation in court as necessary.
While nuclear reactors are often envisioned as large-scale power plants, smaller models known as small modular reactors (SMRs) produce about a third of the energy of larger reactors. Even smaller microreactors are designed for transport by semitrucks. Due to their size, these reactors present less danger compared to larger counterparts, lacking the capacity for significant incidents like the Three Mile Island meltdown.