Legislation to encourage small, efficient nuclear plants in Pa. signed into law
Gov. Josh Shapiro signs act, immediately reducing startup costs in commonwealth
Rep. Nate Davidson July 21, 2026 | 10:15 AM
HARRISBURG, July 21 – Legislation to promote nuclear development in Pennsylvania was signed into law Monday, announced state Rep. Jose Giral, D-Phila., who sponsored the bill.
Pennsylvania Gov. Josh Shapiro signed H.B. 2017, which also was sponsored by Reps. Nate Davidson, D-Cumberland/Dauphin, Joe McAndrew, D-Allegheny, and Elizabeth Fiedler, D-Phila.
The new law updates the state’s fee structure for operators of nuclear energy sites to reflect how modern small modular reactors and micro-reactors differ from traditional light-water reactors. The change will make building smaller, more efficient nuclear reactors more affordable in the commonwealth.
“Pennsylvania has long been a national energy leader,” Giral said. “I am proud that the governor has taken swift action on our bill and signed it into law. The faster we can help the industry streamline here, the faster we see return on our investment.
“Up-front capital needed to build new traditional reactors is prohibitively expensive, and this law meets the moment by recognizing small modular reactor development as the next important step in nuclear development and updating our current fee structure to make it more affordable for SMR developers to build here.”
According to the lawmakers, traditional light-water nuclear reactors have sprawling footprints with multiple reactors per site. They take extensive time and money to construct and run. In contrast, SMRs require more, smaller sites with fewer reactors per site, which allows them to be built in areas with less access to existing power grids, such as rural Pennsylvania. Their small size also allows them to be factory-built, rather than built on-site, so that they can be transported to areas where large-scale construction is difficult. And technological developments have made these smaller reactors more efficient than light-water reactors.
“Nuclear energy provides a critical piece of Pennsylvania’s baseload capacity, and now SMRs can be an even bigger part of the commonwealth's energy future,” Davidson said. “Our largest trading partner, Canada, is actively building the first SMR for grid energy production in a G7 country. This important law also sets the stage for Pennsylvania to be a national leader in SMR construction, opening the door to even closer economic ties with our neighbors to the north.”
Previously, the Department of Environmental Protection levied the fees on a per-site basis. Because SMRs require more sites to meet energy demand, Giral said asking operators to pay too high a fee per site discourages companies from expanding into Pennsylvania.
"This law levels the playing field for nuclear innovation in Pennsylvania. As we look at energy to diversify our grid, this will allow new technology to flourish, resulting in lower energy costs. We're making it clear that our commonwealth is ready for next-generation energy," McAndrew said.
The fees collected by DEP are used to cover the costs of environmental monitoring, administrative oversight, and decommissioning.
House Bill 2017, now Act 37 of 2026, updates the Radiation Protection Act of 1984 to add definitions for small modular reactors and micro reactors and distinguish them from traditional light-water reactors, creates a new, separate fee structure for these smaller reactors, and directs the Environmental Quality Board to determine reasonable fees for SMR sites.
Giral also noted that modernizing energy technology helps states lower energy costs for residents in the long term and could help offset the significant energy consumption of data centers. By opening the door to smaller, more efficient nuclear reactors, the state is creating a future in which data centers can run more efficiently and with less strain on our power grids, he said.
“This bill received an incredible level of bipartisan support through the General Assembly, and I am thrilled to see it signed into law,” Fiedler said, “In the House Energy Committee, we are focused on bold solutions to the energy crisis that families in all our districts face. This bill addresses a key piece of the puzzle: generating more energy, and it does so in a clean, zero-carbon way. Congrats to Rep. Giral. I look forward to seeing projects break ground in Pennsylvania in the years to come!”
“We have the workforce and expertise to keep Pennsylvania ahead of the curve on energy modernization,” Giral said. “I am grateful to my colleagues for supporting our energy sector and the jobs that it will create.”