New Jersey Lifts 50-Year Nuclear Moratorium as NRC Unveils First New Licensing Framework Since 1989
New Jersey ends a de facto nuclear construction ban while the NRC finalizes Part 53, a landmark rule that streamlines reactor approvals for the first time in decades.
Overview
In the span of a single month, the United States took two of its most consequential steps toward a nuclear energy revival in a generation. On April 8, New Jersey Governor Mikie Sherrill signed legislation ending a 50-year de facto moratorium on new nuclear construction. Three weeks later, on April 29, the Nuclear Regulatory Commission’s landmark Part 53 rule — the first new reactor licensing framework since 1989 — takes effect. Together the actions mark a structural shift in how American policymakers and regulators are treating nuclear power at both the state and federal level.
New Jersey Clears the Permitting Roadblock
New Jersey’s moratorium was not a law that explicitly banned nuclear plants. It was an impossible standard hidden inside an older statute.
The Coastal Area Facility Review Act (CAFRA), in force for decades, required the state Department of Environmental Protection to deny nuclear facility permits unless the federal government had established an approved method for radioactive waste disposal. As reported by WHYY, no such federal disposal method has ever been established in the United States — making the requirement functionally permanent.
Governor Sherrill signed Senate Bill 3870/Assembly Bill 4528 on April 8 at Salem Nuclear Power Plant, replacing the impossible standard with a workable one: the DEP may now approve permits based on NRC-compliant waste storage methods already in wide use nationwide. “For costs to come down, we need more energy supply,” Governor Sherrill said at the signing, according to the official Governor’s announcement. “New Jersey is well-positioned to be a leader in next-generation nuclear energy.”
New Jersey becomes the second state to lift its nuclear moratorium in 2026, following Illinois, which Governor J.B. Pritzker signed out of its long-standing large-reactor ban in January. As noted by the American Nuclear Society, California and Minnesota are also advancing legislation to modify or lift similar restrictions.
What New Jersey’s Existing Nuclear Fleet Provides
The state already hosts two of the largest nuclear plants on the East Coast. According to WHYY, the Salem and Hope Creek facilities in Lower Alloways Creek together generate approximately 40 percent of New Jersey’s electricity and account for roughly 80 percent of its pollution-free power. A 2020 analysis by the Brattle Group estimated the plants save state consumers more than $400 million annually compared to alternative energy sources.
Despite that existing capacity, New Jersey still imports between 40 and 50 percent of its electricity. PSEG Chair, President and CEO Ralph LaRossa warned in November 2025 that “New Jersey now imports between 40–50% of its power, and that percentage is expected to grow.” PSEG expressed support for the legislation but stopped short of committing capital to finance new construction. The path from lifted moratorium to breaking ground on a new reactor involves years of site selection, federal licensing, financing, and construction — a timeline measured in decades for large plants, somewhat shorter for small modular reactors.
The NRC’s Part 53: First New Framework in 35 Years
The state-level policy shift coincides with a broader federal regulatory transformation. On April 29, 2026, 10 CFR Part 53 — officially titled “Risk-Informed, Technology-Inclusive Regulatory Framework for Commercial Nuclear Plants” — takes effect, as detailed by Morgan Lewis.
Part 53 is the first entirely new reactor licensing pathway the NRC has issued since Part 52 in 1989. It was mandated by the Nuclear Energy Innovation and Modernization Act of 2019 and reinforced by the ADVANCE Act of 2024. Unlike its predecessors, Part 53 is not designed around the light-water reactor technology that has dominated U.S. commercial nuclear power for 60 years. Instead, it establishes technology-inclusive standards suitable for non-light water designs, small modular reactors (SMRs), microreactors, and factory-built systems.
Key changes under Part 53, as outlined by the American Nuclear Society, include:
- Risk-informed standards: Developers can use probabilistic risk assessment rather than prescriptive design rules written for older reactor generations.
- Flexible containment: A “functional containment” approach replaces rigid containment geometry requirements that were written specifically for large light-water reactors.
- Factory-loaded fuel: Reactors may be fueled at the manufacturing facility and transported to their operating site — a key requirement for microreactor and some SMR designs.
- Scalable staffing: Licensing can accommodate lower operator staffing levels appropriate for highly automated or inherently safe designs.
The National Association of Manufacturers called Part 53 “long-awaited”, noting that it “hits two manufacturer priorities in one: It responsibly speeds up permitting for crucial projects and it advances nuclear power in the United States, all while maintaining safety standards in the review process.” The previous regulatory framework had created a catch-22 for advanced reactor developers, requiring them to seek costly exemptions from rules written for technologies they were not building.
A Widening State Movement
New Jersey’s action fits a pattern accelerating across multiple states. Illinois signed its moratorium repeal in January 2026. In Minnesota, HF9 — a bill that would lift the state’s 32-year ban on new nuclear construction — cleared the House Energy Finance and Policy Committee along party lines, advancing to the House Taxes Committee, according to Minnesota House Session Daily. California Assemblymember Lisa Calderon filed AB 2647 to create an advanced reactor exception to California’s long-standing nuclear ban, as reported by the American Nuclear Society.
Many of these state actions are being driven by two converging pressures: tightening carbon-free electricity mandates (Minnesota has a 2040 target; New Jersey has aggressive clean energy goals) and rapidly growing electricity demand from data centers and electrification.
What We Don’t Know
Lifting a moratorium is a necessary but not sufficient step toward new nuclear construction. No specific project has been announced in New Jersey, and PSEG has explicitly declined to commit capital. New Jersey’s Nuclear Task Force will need to address financing structures, supply chain access, workforce training, and public siting acceptance before any shovel hits the ground.
The same uncertainty applies to Part 53. The rule creates a new licensing pathway but does not guarantee that companies using it will receive licenses faster. The NRC still requires rigorous design review and safety analysis. The first applicants to use Part 53 will help determine whether its flexibility translates into real-world schedule reductions.
Environmental groups have also raised concerns about SMR waste profiles. As noted by WHYY, some research suggests that certain SMR designs could generate more radioactive waste per unit of electricity than conventional large reactors — a detail that will require careful management even under the new NRC framework.