States Challenge Federal Nuclear Rules to Advance Small Reactors
Louisiana joins multi-state legal effort to ease deployment of next-gen nuclear tech.
Jericho Casper
WASHINGTON, April 16, 2025 – Louisiana wants to bring next-generation nuclear power to the grid — and it’s taking the federal government to court to make it happen.
Louisiana on Monday joined a multi-state lawsuit challenging federal nuclear regulations that state officials said were stifling innovation in small modular reactor development.
The lawsuit, originally filed in December by Texas, Utah, and nuclear startup Last Energy, argues that the federal Nuclear Regulatory Commission has unlawfully applied the same stringent licensing requirements to all reactors, regardless of size or risk profile.
The case centers on the NRC’s “Utilization Facility Rule,” which defines how nuclear reactors are licensed and regulated. Critics say the rule makes no distinction between legacy reactors and modern designs like microreactors and small modular reactors (SMRs), which were designed to be safer, more scalable, and more economically viable than traditional nuclear power plants.
“Louisiana’s energy future demands innovation, not unnecessary red tape,” Governor Jeff Landry said in a release. “Joining this lawsuit is about defending our ability to pursue advanced energy solutions like SMRs — solutions that are reliable, clean, and essential for economic development in the State. This is part of our broader strategy to make Louisiana an energy leader in the 21st century.”
Louisiana’s legal challenge aligns with a growing national push to ease the deployment of small modular reactors, a technology increasingly being viewed as essential to powering the data centers and broadband infrastructure necessary to support an artificial intelligence boom.
Just weeks earlier, Rep. Chuck Fleischmann, R-Tenn., made the case that SMRs were a scalable solution to meet energy demands of modern digital infrastructure, calling for on-site SMRs to power data centers, during a March event hosted by Broadband Breakfast.
“Can you imagine a data center where literally you put one of these small modular or advanced small reactors right on site?” he said. “It will totally meet their power needs.”
“This lawsuit is about unlocking opportunity,” said Secretary Aurelia Giacometto of the Louisiana Department of Environmental Quality. “Louisiana is already an NRC Agreement State with robust regulatory experience in radiological licensing and emergency response. We are ready to take the next step and lead in the deployment and oversight of SMRs. This litigation ensures we are not left behind while other states set the pace for nuclear innovation.”
The lawsuit is complemented by a state Senate Bill 127, sponsored by State Sen. Adam Bass, which would establish a state permitting framework for SMRs and create parity with federal processes, positioning Louisiana to act quickly if the rule was overturned.
“The NRC’s rule imposes sweeping regulations that fail to distinguish between emerging technologies and legacy reactors. That’s not only inefficient — it’s unlawful,” said Attorney General Liz Murrill. “By joining this case, we’re defending our State’s right to tailor nuclear innovation to our unique needs, while pushing back on Federal overreach.”
Louisiana filed its motion during the 21-day window to amend the case following the NRC’s motion to dismiss, a move that ensures the state could benefit from any favorable outcome or settlement.
“If this challenge succeeds, states not participating in the case may remain under outdated rules, while Louisiana would be free to lead,” added Secretary Giacometto. “We want our universities, military bases, and industries to have every advantage in deploying this next generation of safe, clean energy.”
