DOE opens pilot program to authorize test reactors outside national labs

The pilot program’s faster path to test reactor criticality offers a twofold “value proposition,” according to the RFA. For applicants prepared to shoulder all costs for building, testing, and decommissioning a reactor, the program will both “unlock the next level of private funding” and “provide a fast track to an NRC license, and hence, commercialization for authorized reactor designs.” Selected developers will be able to put their money into proving a reactor concept and not into upfront licensing costs.

The pilot program is “an important step toward streamlining nuclear reactor testing and ensuring at least three reactors achieve criticality by July 4, 2026,” according to the DOE’s June 18 announcement. Following an Industry Day on June 25, initial applications are due July 21, with subsequent applications allowed on a rolling basis.

At Trump’s direction: Section 5 of President Trump’s Executive Order 14301—“Reforming Nuclear Reactor Testing at the Department of Energy”—orders the DOE to establish the pilot program using its authority under the Atomic Energy Act. Once an applicant is approved, “the Secretary shall assign a team to provide assistance to the applicant.”

“For too long, the federal government has stymied the development and deployment of advanced civil nuclear reactors in the United States,” said Energy Secretary Chris Wright. “Thanks to President Trump’s leadership, we are expediting the development of next-generation nuclear technologies and giving American innovators a new path forward to advance their designs, propelling our economic prosperity and bolstering our national security.”

Licensing and permitting: Reactors built under the program “will not require Nuclear Regulatory Commission licensing,” according to the RFA. “Nevertheless, DOE-approved reactor designs can and will be fast tracked for future NRC licensing.”

Only the NRC has the authority to license commercial nuclear power reactors, and the DOE emphasizes that the pilot program “is specifically designed to foster research and development of nuclear reactors and not demonstrate reactors for commercial suitability.”

As for National Environmental Policy Act requirements, “DOE’s decision-making regarding authorization to proceed with a particular project under this RFA may be subject to NEPA, which requires DOE to consider non-speculative environmental impacts of proposed actions.”

The executive order that directs the DOE to establish the pilot program also requires the DOE to “take action to reform the department’s rules governing compliance with the National Environmental Policy Act (NEPA) no later than June 30, 2025,” and to “use all available authorities to eliminate or expedite the Department’s environmental reviews for authorizations, permits, approvals, leases, and any other activity requested by an applicant or potential applicant.”

ANS expert advice: The American Nuclear Society convened an expert advisory group to review the four executive orders released May 23, and the group released its findings earlier this month.

The ANS Expert Advisory Group concluded that the DOE and the Department of Defense “can play a constructive role in spurring construction of advanced reactors, having approved similar designs for military installations (recognizing this has not been done recently) and ongoing work with projects like MARVEL, Project Pele, and the proposed reactors at the National Reactor Innovation Center (NRIC) DOME test bed.”

The group also concluded the DOE’s and DOD’s “capacity” to support a “significantly expanded pipeline of projects” was unclear, and that DOE and DOD efforts “must be well coordinated with the U.S. Nuclear Regulatory Commission,” which is solely authorized to license reactors serving dual-use or commercial purposes.

“It is important to avoid duplicative regulatory requirements, conflicting standards across agencies, and a burdensome licensing process or even legal concerns that inject uncertainty into nuclear investments,” the group stated, adding that “it is essential that the [NRC] remain fully engaged in reactor design and approval processes to maintain U.S. leadership in civil nuclear exports.”

Eligibility and responsibility: For the pilot program, the DOE will consider reactor designs that “have a reasonable chance to operate by the July 4, 2026, deadline.” Applicants will be responsible for all costs associated with designing, manufacturing, constructing, operating, and decommissioning each test reactor.

Applicants also must do the following:

Procure a suitable site in the United States, which may include land owned by private, federal, state, or other entities, and perform site characterization activities.

Procure fuel for the reactor, and, if seeking fuel from the DOE, “establish the necessary agreements for allocation of high-assay low-enriched Uranium (HALEU) to support fabrication of fuel on a reimbursement basis with DOE.”

Develop specific milestones to track progress.

Both U.S.-based companies and U.S. subsidiaries of foreign entities are eligible to apply; subsidiaries of a foreign entity must request a waiver for participation. According to the RFA, “DOE shall review applications for agreements or foreign ownership, control, or influence. DOE in its sole discretion may utilize this information to reject applicants based on discovered security risks.”

Merit-based review: The pilot program RFA describes a merit-based process for evaluating applications under eight technical categories: reactor technology maturity, fuel supply plan maturity, testing plans that can establish technology viability, project schedule, site plan, DOE authorization plan, funding, and master document and deliverables list.

According to the RFA, “DOE will evaluate applications to determine based on merit which applications meet the qualifications and are selectable to participate in this program. The government reserves the right to select all, some, or none of the applications received.”