The Nuclear Regulatory Commission (NRC) has proposed to sharply reduce its hourly service fees—by more than 50%—for advanced nuclear reactor applicants and pre-applicants in a move designed to incentivize innovation and accelerate the deployment of next-generation nuclear technologies.

In a proposed rule published in the Federal Register on Feb. 19, the regulatory body proposed to revise its fees for licensing services, inspection services, and special projects (under 10 CFR part 170) by establishing a two-tiered hourly rate system.

Starting in August 2025, the agency plans to raise the professional hourly rate from $317 to $323. This increase, the NRC said, is driven by “an approximately $5.4 million increase in resources requested in the FY 2025 budget request.” The agency earmarked these funds to support several key initiatives, including:

Technical reviews of 10 CFR Part 50 construction permit applications, including to facilitate reviews necessary for construction permit applications for non-power reactors. 
The relocation, design, and construction of the Headquarters Operations Center (HOC) to enable the NRC to exit one of its headquarters buildings before its lease expires in November 2027.
Development and implementation of IT and cybersecurity upgrades, including an artificial intelligence (AI) infrastructure to facilitate responsible AI adoption. (The measure is in line with Executive Order 14110, which the Trump administration revoked on Jan. 20).
Increased salaries and benefits to support federal pay raises for NRC employees, an effort that seeks to ensure the agency can retain and attract qualified personnel.

However, in a bid to implement Section 201 of the ADVANCE Act, which revised the 2019 Nuclear Energy Innovation and Modernization Act’s (NEIMA’s) fee structure, the NRC proposed a drastically Reduced Hourly Rate of $146 for advanced nuclear reactor applicants and pre-applicants. The lower rate is slated to take effect on Oct. 1, 2025 (when the ADVANCE Act provisions become effective)—which would fall into FY2026. The ADVANCE Act, notably, sunsets the Reduced Hourly Rate for advanced nuclear reactor pre-applicants on Sept. 30, 2030.

Notably, the reduced hourly rate applies to activities the NRC assesses “relating to the review of [the] submitted application” as described in the licensing project plan. In addition to these hourly rate changes, the NRC also proposes to amend the flat application fees for materials licenses to reflect the revised professional hourly rate of $323.

The NRC’s decision to front-load the change in the FY25 rule, rather than waiting for the FY26 rule, is a strategic move that will avoid billing delays and provide early notice and initiate an opportunity to comment, it said. Pivotally, “It also would provide greater regulatory certainty to external stakeholders for planning and budgeting for future 10 CFR part 170 service fees for advanced nuclear reactor applicants and pre-applicants,” it said.

The proposal also specifically defines which entities could qualify for reduced fees. It defines an “advanced nuclear reactor applicant” as an entity that has formally applied for a license to build and operate an advanced nuclear reactor. That application must be for an initial operating, combined, or manufacturing license—not for an amendment to or renewal of an existing license. An “advanced nuclear reactor pre-applicant” is an entity that has submitted a detailed licensing project plan outlining its intention to apply for a future license for an advanced nuclear reactor. Again, that future license must be for an initial operating, combined, or manufacturing license. The NRC has proposed to limit these applications to advanced nuclear reactors as defined in NEIMA.

The NRC’s proposal is poised to be well-received by the advanced nuclear industry, which has consistently called for measures to reduce regulatory costs and streamline licensing pathways. In a 2021 report,  the Nuclear Innovation Alliance (NIA) suggested hourly fees have rapidly risen from an average $214/hour between 1995 and 2004 to $280/hour over the last several years. The report argues that the NRC’s current fee structure has posed a significant barrier to the development and deployment of advanced nuclear reactors, disproportionately burdening new entrants and hindering innovation.

“The open-ended costs associated with paying fees impose barriers to new entrants,” the report explains. “License applicants must pay NRC fees before they begin earning revenues. This is particularly burdensome for developers with limited capital and new customer types like small towns, rural communities, and industrial users. NRC is in the process of modernizing its existing regulatory framework, which was designed for light water reactors. At least until this modernization is complete, advanced reactor licensing requires significant extra regulatory work,” it says.

The NRC on Thursday said its FY25 budget request is $994.9 million. It proposes to use $20 million in carryover funds, making the total budget authority used in the FY25 proposed fee rule $974.9 million—an increase of $30.8 million from FY24. Under NEIMA, the NRC is required to recover approximately 100% of its total budget authority in FY 25, except funds for specific excluded activities. After accounting for the excluded activities and net billing adjustments, the NRC estimates that it must recover approximately $826.1 million in fees in FY25. Of this amount, the NRC estimates that $216 million will be recovered through service fees under 10 CFR Part 170, and $610.1 million will be recovered through annual fees under 10 CFR Part 171.

Compared to FY24, the agency’s proposed annual fees would decrease for the non-DOE uranium recovery licensee and eight fee categories within the materials users fee class. However, proposed annual fees would increase for the operating power reactors fee class, spent fuel storage/reactor decommissioning activities, non-power production or utilization facilities, transportation activities for Department of Energy, the Uranium Mill Tailings Radiation Control Act Program, and for 48 materials users fee categories. The proposed annual fees would remain stable for fuel facilities, it said.

The NRC is actively seeking feedback on all aspects of the proposed rule. The deadline for submitting comments is March 21, 2025. The agency is expected to hold a public meeting to describe the FY2025 proposed rule and answer questions from the public. The NRC will review all comments received and consider them in developing the final fee rule, which is expected to be published later this year. 

—Sonal Patel is a POWER senior editor (@sonalcpatel, @POWERmagazine).