The NRC is codifying a sea change to its regulations regarding foreign ownership, control, or domination (FOCD) of utilization or production facilities. On April 26, 2026, the NRC issued a direct final rule and a companion proposed rule to relax its FOCD restriction by exempting countries that are members of the Organisation for Economic Co-operation and Development (OECD) and the Republic of India.
Up & Atom
KEY TRENDS IN LAW AND POLICY REGARDING
NUCLEAR ENERGY AND MATERIALS
NUCLEAR ENERGY AND MATERIALS
The NRC recently reissued a final rule to insert a conditional sunset date into the aircraft impact assessment (AIA) requirements of 10 CFR § 50.150 in response to Executive Order 14270, Zero-Based Regulatory Budgeting to Unleash American Energy. The NRC took this action after withdrawing the AIA portion of its earlier direct final sunsetting rule in response to significant public input (on which we previously wrote). This final rule addresses the significant adverse comments and reflects the NRC’s decision to proceed with sunsetting the AIA requirements on a conditional basis.
The NRC recently approved the most substantial revisions to the Reactor Oversight Process (ROP) since its April 1, 2000 implementation. In SRM-SECY-26-0014, the Commission approved revisions to the ROP’s baseline inspection program and the inspection finding screening process applicable to the current fleet of large, light-water power reactors. In SRM-SECY-26-0015, the Commission approved revisions to the security baseline inspection program, including the force-on-force inspection program. The revisions reflect an approximately 38% reduction in safety inspection resources and 50% reduction in security inspection resources.
The Nuclear Regulatory Commission (NRC) recently issued a final rule, effective April 29, 2026, amending its regulations governing categorical exclusions for certain actions. As defined by the National Environmental Policy Act (NEPA), a categorical exclusion is a category of actions that a federal agency has determined normally does not significantly affect the quality of the human environment. The NRC’s categorical exclusions are implemented as part of its NEPA regulations (see 10 CFR §§ 51.14; 51.22).
The NRC (or the Commission) issued a proposed rule on February 26, 2026 to regulate commercial fusion under its byproduct material framework rather than as a traditional nuclear power reactor. These regulations aim to provide regulatory certainty at a pivotal commercialization phase for fusion, reducing ambiguity and regulatory burdens for capital providers and developers. The proposed rule implements the Commission’s 2023 decision to select the byproduct material pathway instead of utilizing facility or hybrid approaches.
The NRC has issued a Federal Register notice confirming the January 8, 2026 effective date of its direct final rule implementing the requirements of Executive Order 14270, Zero-Based Regulatory Budgeting to Unleash American Energy. The direct final rule sets conditional sunset dates for several identified NRC regulations, meaning those rules will automatically expire one year after the rule’s effective date (i.e., January 8, 2027).
The National Defense Authorization Act for Fiscal Year 2026 (the NDAA) was signed into law by US President Donald Trump on December 18, 2025. Through the NDAA, the US Congress sets the year’s policy direction for the US Armed Forces. As an annual “must pass” bill, it also becomes a vehicle to move other legislative provisions through Congress. This year, the NDAA contained several key provisions important to the domestic nuclear industry with an eye toward facilitating and promoting the US nuclear industry abroad.
The US Nuclear Regulatory Commission recently released Draft Interim Staff Guidance (ISG) DSS-ISG-2025-XX, Treatment of Certain Loss-of-Coolant Accident Locations as Beyond-Design-Basis Accidents. The draft guidance, if adopted, would allow the NRC staff to determine that certain break locations that would normally be analyzed as design-basis loss-of-coolant accidents (LOCAs) can be treated as beyond-design-basis accidents.
Under the auspices of Section 5 of Executive Order 14300, Ordering the Reform of the Nuclear Regulatory Commission, the Nuclear Regulatory Commission (NRC) published on November 26, 2025 an immediately effective final rule, Streamlining Select Rules of Practice and Procedure. The NRC rescinded a “discrete number” of its rules of practice as “either inconsistent with statutory requirements or duplicative of statutory requirements and other binding regulations.”
On October 21, 2025, the Office of Information and Regulatory Affairs (OIRA) within the Office of Management and Budget issued Memorandum M-25-36, Streamlining the Review of Deregulatory Actions. The directive sets shorter timelines, encourages the use of legal exemptions to bypass lengthy procedures, and reduces consultation requirements with stakeholders, signaling a renewed push by OIRA to cut regulatory red tape. While the memorandum is aimed at accelerating regulatory reform, agencies must balance the benefits of speed against the potential for reduced regulatory stability.