On June 18, 2025 the Department of Energy (“DOE”) issued a Request for Application (“RFA”) for a Reactor Pilot Program to construct and operate advanced nuclear reactors outside of the National Laboratories. This program is in response to Section 5 of Executive Order 14301, which directs the Secretary of Energy to create a pilot program for reactor construction and operation, with the goal of achieving criticality in three reactors by July 4, 2026.
Background
On May 23, 2025, the Trump Administration issued a number of executive orders aimed at promoting the development and deployment of U.S. advanced nuclear reactor technology, which we previously covered here. Executive Order 14301, Reforming the Nuclear Reactor Testing at the Department of Energy, charged the DOE to exercise its authorization authority under the Atomic Energy Act of 1954 (“AEA”) to authorize at least three reactors outside the DOE National Laboratory sites. DOE has not historically exercised its authority to authorize reactors of any type off of its facilities. The Energy Reorganization Act of 1974 gives the Nuclear Regulatory Commission (“NRC”) licensure jurisdiction for DOE nuclear reactors that are designed and constructed for demonstration of commercial suitability. However, Executive Order 14301 finds that advanced reactor designs are currently at the stage of establishing technological viability, and that any deployment would be for research purposes rather than commercial demonstrations. This determination opens the door for DOE to exercise its authorization authority for advanced reactors under contact with, and subject to the sufficient control of, the DOE.
The goal of the pilot program is to establish fundamental technological viability and foster research of nuclear reactors. The Administration set an ambitious deadline of achieving criticality in at least three advanced reactors by July 4, 2026. The Administration is streamlining the safety basis and environmental review processes in order to meet this deadline. DOE has stated that more information will be forthcoming soon in both areas. Eventually, if this program produces successful advanced reactors, the Administration intends for the DOE authorized reactors to be fast-tracked for future NRC licensing.
Request for application
The DOE issued its Request for Application last week for the reactor pilot program. Applicants must submit their application by July 21, 2025 in order to be considered for the first selection round. Applicants can still submit applications after this date, which will be reviewed on a rolling basis. DOE plans to announce their first selection of applicants by August 25, 2025. While the goal is to achieve criticality in three reactors, DOE may select as many applicants as it decides. Once selected, the applicant and DOE will negotiate the terms of their agreement, the applicant will prepare their safety basis and environmental impact documentation, DOE will review the documentation, and upon approval the applicant can begin constructing their reactor.
To be considered for the pilot program, a reactor must meet the definition of a “Qualified Test Reactor,” which must meet the following thresholds: (i) sufficiently mature design to support imminent development and submittal of safety basis documentation; (ii) established fuel plans which identified a fuel fabrication and disposition pathway; (iii)adequate financial resources and mature supply chain to complete design, construction, operation, and decommissioning; and (iv) execution readiness for all reactor materials, systems, and components, and qualified staffing.
Importantly, this is not a funding opportunity. The applicant will be responsible for all costs relating to reactor development, including supplying fuel, designing, constructing, commissioning, operating, decommissioning, and storing spent fuel. Applicants will not be responsible for DOE costs incurred reviewing documents during the DOE authorization process. Applicants will also be in charge of identifying a suitable site for the construction and testing of their reactor. This site could be on public or private lands. The applicant will also be responsible for procuring the fuel needed for the reactor and creating a plan that will support spent fuel storage and disposition following decommissioning.
An application must contain a Technical Volume with the following information:
- Explanation of the reactor technology and design maturity
- Plans to fuel and defuel the reactor
- Explanation of reactor tests planned at the reactor site
- Schedule of activities from submission of the application through facility decommissioning
- Integration of the reactor with the reactor site
- Explanation of regulatory compliance plan to obtain DOE authorization for reactor startup
- Description of financial support for all stages of the reactor program.
- Credentials of key personnel and applicant's experience
DOE will evaluate applications based on the following criteria:
- Does the current technical maturity of the reactor present risks to the Applicant's schedule?
- Does the plan to secure fuel have a high likelihood of success?
- Would the Applicant's plan for testing establish technological viability?
- Will the Applicant's proposed schedule meet the desired project timeline?
- Does the Applicant have a site secured?
- Does the Applicant demonstrate an understanding of the authorization process and have a robust plan to navigate it?
- Is the Applicant's funding sufficient to support all phases of reactor testing, from design to decommissioning?
- Does the Applicant understand what documents need to be developed to support the reactor project?
- Is there a security risk due to foreign ownership, control, or influence?
To meet the requirement that these reactors be under contract with the DOE, and to provide for maximum flexibility in the arrangements between DOE and applicants, DOE will use Other Transaction Agreements (“OTAs”) for this RFA rather than procurement contracts or grants. The terms of the OTAs will be designed to promote regulatory efficiency and preserve the applicants' intellectual property rights. DOE is currently developing the model OTA terms and will post the terms as soon as they are available.
Applicant considerations
The RFA raises a number of considerations that interested applicants must consider when preparing their application. Successful applicants must have identified a fuel source and plan for storing spent fuel. If the applicant's reactor will require High Assay Low Enriched Uranium (“HALEU”), it is the responsibility of the applicant to ensure they are in the allocation process to receive HALEU from DOE's HALEU availability program. The applicant will be either completely responsible for storing the spent fuel, or arranging the spent fuel into a form that can be stored by DOE.
Applicants also need to decide whether they want the assistance of the National Laboratories. Although the pilot program was specifically created for DOE to oversee outside of the National Laboratories, applicants do have the option to partner with the National Labs. This partnership could either involve siting their reactor on land managed by the National Labs (through a lease agreement that will give the applicant maximum autonomy) or requesting National Lab assistance in the development and review of supporting documentation.
Finally, DOE is in the process of finalizing a streamlined process for environmental reviews of proposed projects. The level of NEPA review has not yet been determined by the DOE for this effort. Any applicant selected would be required to assist in preparing records required for any NEPA process. DOE will be providing more information on the extent of the environmental review a reactor plan will undergo in the next month or two.
Conclusion
DOE is offering an unprecedented opportunity for a public-private partnership to expedite the development of nuclear reactors through its Reactor Pilot Program. Once selected, applicants will enter an important and complex DOE authorization process, for which the Hogan Lovells team is prepared to assist any applicants in navigating.
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