The Resurgence of Nuclear Energy in U.S. Policy and Its Implications for Clean Energy Investors

In the shadow of a global energy transition, nuclear power is experiencing a renaissance in the United States. A confluence of bipartisan legislation, executive action, and market dynamics is reshaping the nuclear sector, positioning it as a cornerstone of decarbonization. At the heart of this transformation lies the INSPECT Act (H.R. 5115), reintroduced in 2025, which mandates enhanced oversight of decommissioned nuclear plants. This act, alongside broader policy shifts, is not only addressing safety concerns but also unlocking new investment opportunities for forward-looking clean energy investors.

A Policy Pivot: The INSPECT Act and Enhanced Oversight

The Increasing Nuclear Safety Protocols for Extended Canister Transfers Act (H.R. 5115) requires the Nuclear Regulatory Commission (NRC) to station resident inspectors at decommissioned nuclear plants until spent fuel is fully transferred to dry cask storage. This measure, born from incidents like the near-canister drop at San Onofre in 2018, aims to eliminate gaps in oversight during the extended decommissioning process. By ensuring continuous monitoring, the act reduces the risk of accidents and environmental harm, fostering public trust—a critical factor for attracting private capital.

The bipartisan nature of the bill—sponsored by Democrats and Republicans alike—reflects a rare consensus on the need for modernized nuclear regulation. It aligns with broader efforts to streamline permitting and licensing for advanced reactors, as outlined in President Trump's May 2025 executive orders. These directives target a tripling of U.S. nuclear capacity by 2050, emphasizing small modular reactors (SMRs) and microreactors as key to decarbonization and national security.

Market Implications: From Decommissioning to Next-Gen Reactors

The INSPECT Act's focus on decommissioning creates immediate opportunities in infrastructure and compliance. Companies like Holtec International, which is managing the Indian Point decommissioning project, stand to benefit from increased demand for spent fuel management and site remediation. Similarly, firms specializing in robotics and automation—such as those developing AI-driven safety systems—could see a surge in contracts for fuel transfer operations.

Beyond decommissioning, the act complements the rise of SMRs and microreactors. For instance, NuScale Power, a leader in SMR design, has gained traction under federal incentives like the Inflation Reduction Act (IRA). The recent executive orders further accelerate this trend, with states like Indiana offering tax credits and cost-pass-through mechanisms to reduce financial risk for utilities.

Investors should also consider the ripple effects of the One Big Beautiful Bill Act of 2025, which preserved IRA-era tax credits for nuclear projects while introducing restrictions on foreign entities of concern (FEOCs). While these rules add complexity, they also create a more level playing field for domestic firms. For example, Westinghouse, whose AP1000 reactors are in demand in Asia, may see a boost from the U.S. government's renewed focus on nuclear exports.

Strategic Opportunities for Investors

1. Infrastructure and Compliance Tech: The decommissioning sector is a short-term growth driver. Look to firms providing robotics, blockchain-based tracking systems for spent fuel, or AI-driven safety simulations.
2. SMR Developers: Companies like NuScale and TerraPower (backed by Warren Buffett) are positioned to benefit from streamlined licensing and state-level incentives.
3. Regulatory Compliance Firms: As the INSPECT Act tightens oversight, consultancies offering risk assessment and environmental monitoring services—such as Burns & McDonnell—will see increased demand.
4. MLPs and Tax-Advantaged Structures: The 2025 act's allowance for nuclear facilities to be structured as master limited partnerships (MLPs) opens new avenues for public investment, though investors must act quickly before tax credits phase out in 2034.

Navigating Risks and Regulatory Shifts

While the policy landscape is favorable, investors must remain vigilant. The FEOC restrictions under the One Big Beautiful Bill Act require careful due diligence to ensure eligibility for tax credits. Additionally, the accelerated phase-out of the Clean Electricity PTC and ITC by 2034 creates urgency for project developers.

The July 2025 executive order tightening "begun construction" standards for tax credits further complicates timing. Investors should prioritize projects with clear permitting timelines and leverage state-level incentives, such as Indiana's HB 1007, to mitigate federal uncertainty.

Conclusion: A New Era for Nuclear Energy

The INSPECT Act is more than a safety measure—it is a catalyst for reshaping the nuclear industry. By addressing decommissioning risks, streamlining regulations, and aligning with federal and state-level goals, it paves the way for a sustainable energy future. For investors, the path forward lies in balancing short-term infrastructure plays with long-term bets on advanced reactor technologies. As the U.S. aims to double its nuclear capacity by 2050, the sector offers a compelling mix of policy-driven growth and technological innovation.

In this new era, the question is not whether nuclear energy will play a role in decarbonization—but how quickly investors can position themselves to capitalize on its resurgence.