NRC Eases Foreign Ownership Rules for U.S. Nuclear Plants
Published Date: 4/23/2026
Rule
Summary
The Nuclear Regulatory Commission is updating rules to allow some exceptions for foreign ownership or control of nuclear facilities, following a new 2024 law. This change affects companies with foreign ties that apply for or hold licenses for these facilities. The new rules kick in on July 7, 2026, unless people send in serious objections by May 26, 2026.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
New FOCD Exceptions for 37 Countries
The NRC now codifies exceptions to the foreign ownership, control, or domination (FOCD) restriction for utilization facility licenses for entities owned, controlled, or dominated by parties from a list of 37 countries (the 36 OECD members plus the Republic of India). The exception only applies if the NRC determines issuing the license would not be inimical to common defense and security or public health and safety. The rule is effective July 7, 2026.
Turkey Excluded From FOCD Exception
The NRC explicitly excludes Turkey from the list of countries qualifying for the FOCD exception because, as of July 9, 2024, at least one qualifying Turkish entity (the Presidency of Defense Industries) was subject to sanctions under section 231 of CAATSA. Entities owned, controlled, or dominated by Turkish government bodies or persons therefore do not qualify for the statutory exception.
Rule Aims to Spur Foreign Investment
The NRC states the rule codifies statutory FOCD exceptions and may increase accessibility to foreign investment in the U.S. commercial nuclear power sector, improve predictability for applicants and investors, and provide greater clarity in the FOCD review process. The agency says these effects could help bolster U.S. economic and energy security through expansion of the commercial nuclear reactor fleet.
Renewal Applications Use Same FOCD Rule
The NRC revised 10 CFR 54.17(b) so that renewal applications for operating licenses point to the FOCD exclusions in 10 CFR 50.38. This means entities seeking renewals will be considered under the same exception framework for the 37 listed countries when the NRC determines issuance is not inimical to security or public health.
Small Entities Not Significantly Affected
The NRC certified under the Regulatory Flexibility Act that this rule does not have a significant economic impact on a substantial number of small entities. The agency states companies that own or operate the affected nuclear plants do not fall within the NRC's or the Act's definition of "small entities" (see 10 CFR 2.810).
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