Published reports indicate that as many as 18 reactor designers are looking at the possibility of siting their first facility at Idaho National Laboratory, DOE’s lead laboratory for nuclear reactors. From time to time, there are similar expressions of interest in DOE’s Oak Ridge National Laboratory and Savannah River Site.

DOE facilities have much to recommend them for such an undertaking, including incredible nuclear expertise near-at-hand, locations that are both remote and friendly to nuclear undertakings, and plenty of open space. At the same time, it is important to recognize the unique challenges that come with such sites.

Entering into a site use permit with DOE requires an understanding of certain “immovables,” including: DOE mission requirements, present and future; DOE obligations to state regulators, particularly environmental regulators; past uses of the sites that may not yet be remediated, such as environmental contamination or unexploded ordnance; and appropriations law restrictions, which mean that DOE cannot spend money to address an issue until Congress appropriates the money for that purpose.

There are also discontinuities between nuclear safety, security and liability approaches applicable to DOE and the Nuclear Regulatory Commission that have to be accommodated. These could affect matters as diverse as site access, transfer of ownership and radiation exposure standards. Likewise, dealing with two federal agencies that have different roles will complicate compliance with certain laws that apply equally to both of them, such as the National Environmental Policy Act and the National Historic Preservation Act.

Finally, there are also unique financial considerations arising both out of sharing common services and buying services from DOE.

None of these issues are insoluble, but it will take time and flexibility in approach to reach agreement. A reactor designer looking at a DOE site should go into it with eyes open and a large measure of patience for the negotiation that will be required.

Hogan Lovells has experience with negotiating these types of unique agreements with DOE. For additional information please contact one of the authors below.

Mary Anne Sullivan
Dan Stenger
Amy Roma
Sachin Desai