Our thoughts on the ADVANCE Act

Now that the dust has settled from the ADVANCE Act being signed, we wanted to put our thoughts out there on this potentially significant development in the regulatory landscape.

First, some background: The NRC was formed in 1975 to regulate the nuclear energy industry. Its primary objectives were safety and security.

Between 1976 and 1988, new regulations contributed to a >30% cost increase in new plants.

It's worth noting that nuclear was already getting more expensive prior to the NRC.

But fast forward to today, and we're in the midst of a Second Atomic Age. Concerns over climate change and energy security have reignited interest in nuclear energy.

Governments and investors are now backing new generations of reactors—with unprecedented enthusiasm.

These new reactors are safer, smaller, and more efficient than ever before. Many will be manufactured almost entirely in factories, will use advanced fuels, and could offer the most viable path to deep decarbonization.

Despite these advancements, one thing was still holding the fledgling advanced nuclear industry back: regulatory uncertainty.

Enter the ADVANCE Act.

Nearly unanimously passed in the Senate and House, this act could be a huge help to the industry, particularly in how it transforms the NRC's approach to licensing.

Under the old system, getting a new nuclear technology licensed was a potentially long, uncertain process. Many investors hesitated to commit to the sector, because the timeline for regulatory approval was somewhat unpredictable.

The ADVANCE Act addresses this head-on. It gives the NRC a clear mandate: decide on new nuclear technologies within two years. This monumental shift provides much-needed clarity and timelines for companies and investors.

This is where the real impact lies. By setting a two-year deadline, the ADVANCE Act removes the uncertainty that has plagued the industry for years. Investors can now move forward with greater confidence, knowing that the NRC will make a timely decision.

And it’s not just about speeding things up. The culture at the NRC will evolve, too. While safety remains the top priority, the NRC will also need to balance that with the need to foster innovation and support the deployment of new technologies.

Two critical points to highlight:

1?? Before ADVANCE, companies often pointed fingers at the NRC for delays. Now, with a set timeline, the ball is in the companies’ court. They must deliver quality, timely submissions to the NRC. It screens out less credible players, leaving room for serious innovators.

2?? With these changes, the NRC is no longer the bottleneck. Instead, it's a partner in progress. The focus shifts from regulatory hurdles to the quality and readiness of the nuclear companies themselves.

This shift in responsibility is a positive one. It encourages companies to be more prepared, more innovative, and more accountable. And it ensures that the best technologies—the ones that meet rigorous safety and performance standards—get to market faster.

The ADVANCE Act ushers in a new era of collaboration between the NRC, nuclear companies, and investors. It’s a win for all parties: safety is maintained, innovation is encouraged, and the path to a clean energy future becomes clearer.

This is just the beginning, and we’re excited to be a part of how this plays out, in practice.