The Nuclear Regulatory Commission overstepped its authority by regulating small reactors the same as reactors large enough to pose significant threats to the public, the states of Texas, Utah, and a commercial nuclear energy developer allege in a new federal lawsuit.

The Atomic Energy Act states that licensing is required for reactors producing an amount of nuclear material to be of “significance to the common defense and security, or in such manner as to affect the health and safety of the public.” According to the plaintiffs, the statute clarifies that any facilities not “capable of making use of special nuclear …