Bank of America: It may be difficult for the US nuclear energy industry to obtain policy support in the short term, and extending licenses has become a regulatory priority

The Zhitong Finance App learned that Bank of America recently held an expert conference call to discuss topics including the current composition and strategic priorities of the Nuclear Regulatory Commission (NRC), prospects for the development and consideration of new nuclear power generation technology, the potential impact and application of the “Multi-functional, Advanced Nuclear Energy Act to Accelerate the Deployment of Clean Energy” (ADVANCE Act), NRC's licensing activities, unique ownership and financing structures, and the development of nuclear fuel infrastructure.

NRC chairman has yet to initiate new policy action

The Trump administration has appointed David Wright as chairman of the NRC. Due to his minority status in the five-member committee, the chairman has yet to launch any new policy initiatives. This situation is likely to change as the chairman's term expires in June. The Commission unanimously supports advancing the NRC's mission and the risk of administrative action to replace individual committee members. So far, there is no indication that the government will seek to remove or replace any existing committee members to promote the development of commercial nuclear power in the US.

Licensing activities are at the cutting edge and center of the NRC agenda

Licensing activities cover life extensions, power upgrades, unit reboots, and new design approvals. Most nuclear power reactors have now been licensed to operate for 60 years; some licenses have been extended to 80 years, and the NRC is increasingly concerned about the prospects for the plant to run for 100 years. The three plants that are being considered for restart are probably the only viable candidates. The NRC encourages plant owners to schedule power upgrade applications. Permit holders are required to submit upgrade expectations to the NRC by May 8. The lack of progress in considering and approving new design applications reflects more the incompleteness of these applications than the speed at which the NRC considered them.

New technology/ownership structure under consideration

NRC is technologically neutral and willing to consider all potential unit sizes and types, from micro, mobile, or new large marine-based units. Additionally, the NRC will consider various ownership structures that cover financing and long-term operating agreements. In addition to financing new nuclear units, large end users are also considering financing plant upgrades through long-term offtake agreements. The new small modular nuclear reactor (SMR) is not expected to be operational until the early 2030s.

The US nuclear fuel supply chain is still developing

The US Department of Energy (DOE) is seeking to develop the domestic uranium and fuel enrichment industry. This effort reflects recent or potential trade issues with Russia and Canada. While these efforts are still in their early stages, it was emphasized that the US does have existing stocks of weapons-grade materials that can be downgraded to the commercial electricity sector.

Ryan Lighty, partner and co-chair of the Morgan Lewis Bunker Nuclear Energy Working Group, was invited to this expert conference call.