BLOG POST

Up & Atom

KEY TRENDS IN LAW AND POLICY REGARDING
NUCLEAR ENERGY AND MATERIALS

US States Continue to Generate Nuclear Legislation

Throughout 2025, several US states have taken steps to facilitate development of new nuclear reactors. Complementing several recent executive orders of the US administration in support of nuclear energy, including plans to bring new test reactors online by summer 2026 as part of the Reactor Pilot Program, states such as Illinois, Nebraska, Tennessee, Texas, and Virginia have also signaled support for nuclear energy through legislation, grants, and utility initiatives.

Illinois

In 2023, Illinois Governor J.B. Pritzker vetoed a bill that would have lifted the state’s moratorium on new nuclear power plant construction, although later that year agreed to lift the moratorium beginning in 2026 for projects of 300 megawatts or less. In early August 2025, Governor Pritzker signaled support for a full repeal of the moratorium in support of attaining a net-zero carbon emission goal by 2050.

Senate Bill 1527 and Senate Bill 1827, each introduced earlier this year, would fully repeal the moratorium. Both bills are in committee. A separate bill, Senate Bill 2681, was introduced in July 2025 to fast-track the permitting process for small modular reactors (SMRs), requiring state agencies to act within 150 to 300 days or the application is deemed approved. This bill awaits committee referral.

Nebraska

The Nebraska Public Power District (NPPD), Nebraska’s largest electric utility and a state agency with elected members, announced in July 2025 16 potential sites for a new SMR. NPPD recently commenced a series of public information sessions in each of the identified communities to gain public input as part of its feasibility study and plans to narrow the locations to two to four sites by the end of the year.

NPPD currently operates the 800-megawatt Cooper Nuclear Station. NPPD notified the Nuclear Regulatory Commission (NRC) that it intends by the end of 2026 to apply to renew the license for the Cooper Nuclear Station for an additional 20 years.

Maryland

Maryland enacted in May 2025 the Next Generation Energy Act (House Bill 1035), a comprehensive statute that includes several provisions to support nuclear development in Maryland. The act encourages nuclear energy development through several provisions. For example, it requires the Maryland Energy Administration to pursue cost-sharing agreements with neighboring states to mitigate the risks of developing new nuclear reactors and to pursue agreements with federal agencies to site SMRs on or near federal facilities in the state.

The act also directs the Maryland Public Service Commission, upon receipt of an application for a new nuclear generation project, to open an application period to allow for other applications of proposed nuclear projects. The Maryland Public Service Commission must also hold at least two additional application periods before 2031. Further, upon receipt of an application in these application periods, the Maryland Public Service Commission must act on the application within one year of the close of the application period (although subject to undefined extensions for good cause). The act provides application requirements and parameters that the Maryland Public Service Commission must consider, such as cost effectiveness and rate impact. The Act also facilitates long-term recovery of the cost to acquiring new nuclear energy by utilities through a surcharge on distribution rates.

Tennessee

Tennessee has made several recent investments in nuclear energy development. In the last legislative session, it approved Governor Bill Lee’s budget for 2026, which created a $50 million SMR grant fund to support a Tennessee Valley Authority (TVA) small modular reactor project. (TVA applied earlier this year for a construction permit with the NRC to build an SMR, the first utility to do so.)

The budget also added another $10 million to the previously created Nuclear Energy Fund, an already $60 million grant and assistance program to expand the state’s nuclear industry through support for nuclear power-related businesses and education and training programs.

Texas

In early 2025, Texas enacted three laws to promote nuclear energy.

First, in May, House Bill No. 14 created the Texas Advanced Nuclear Energy Office (TANEO) to “provide strategic leadership” for deployment of advanced nuclear reactors. The law also requires TANEO, along with the Public Utility Commission of Texas to identify for the legislature necessary state regulatory functions related to nuclear energy generation facilities. House Bill No. 14 also establishes the Texas Advanced Nuclear Development Fund to provide reimbursable grants to support initial development and construction of an advanced nuclear project, with additional grants for operational reactors based on output.

Second, in June, Senate Bill 1061 simplified procedural requirements for uranium mining production area authorizations from the Texas Commission on Environmental Quality. The law makes amendments to an existing authorization uncontested and not subject to hearing if certain conditions are met, reducing delays in the amendment process.

Lastly, also in June, Senate Bill 1535 established an advanced nuclear energy workforce development program. The law aims to increase the “urgent skilled labor demands in the advanced nuclear energy industry” and requires the Texas Workforce Commission to create a strategy and provide financial assistance to address labor gaps and talent retention issues in the advanced nuclear energy industry.

The Texas Workforce Commission must also “develop customized curriculum requirements for degree and certificate programs” that may be offered by an institution of higher education for employment in the advanced nuclear energy industry.

Virginia

Virginia Governor Glenn Youngkin announced in July a grant of nearly $200,000 to study private investment and federal funding opportunities to support a new advanced nuclear reactor, with a focus on the southwest part of the state. This grant continues Virginia’s recent efforts to deploy an SMR. Virginia’s 2022 Energy Plan set a goal for Virginia to host the nation’s first commercial SMR within the next decade. In 2024, Virginia enacted legislation to allow its electric utility to petition the State Corporation Commission for approval of a rate adjustment clause that would permit recovery of SMR project development costs for one SMR.

Stay Informed

Visit Morgan Lewis’s energy blogs Power & Pipes (FERC, CFTC, DOE, State), Up and Atom (Nuclear), and our subscriptions page for updates on the US administration’s energy policies, or contact Juliana Israel to be added to Morgan Lewis’s energy and project development distribution list.

Visit our US Administration Policies and Priorities resource center and subscribe to our mailing list for the latest on programming, guidance, and current legal and business developments.