Pioneer Units 1 and 2 Phased Construction Permit and Limited Work Authorization Environmental Impact Statement

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ABOUT:

The NRC was created as an independent agency by Congress in 1974 to ensure the safe use of radioactive materials for beneficial civilian purposes while protecting people and the environment. The NRC regulates commercial nuclear power plants and other uses of nuclear materials, such as in nuclear medicine, through licensing, inspection and enforcement of its requirements.

OUR MISSION:

The NRC protects public health and safety and advances the nation’s common defense and security by enabling the safe and secure use and deployment of civilian nuclear energy technologies and radioactive materials through efficient and reliable licensing, oversight, and regulation for the benefit of society and the environment.

OUR WORK INCLUDES:

• Determining whether it is safe to build and operate a proposed nuclear power plant at a site
• Evaluating and disclosing the environmental impacts of building and operating a nuclear power plant

About NRC | Nuclear Regulatory Commission

Palisades SMR, LLC – Pioneer Units 1 and 2

Background

On December 31, 2025, SMR, LLC, a Holtec International Company, submitted the Part 1 of a phased construction permit (CP) application, including a limited work authorization (LWA) request for a dual-unit SMR-300 plant (Agencywide Documents and Access Management System [ADAMS] Accession No. ML25365A983). The proposed reactors would be located at the Palisades Energy Center in Van Buren County, Michigan, adjacent to the existing Palisades Nuclear Plant. The initial submittal of the application included general, financial, and environmental information. The U.S. Nuclear Regulatory Commission (NRC) acknowledged receipt of this initial submittal in a Federal Register Notice (FRN) (91 FR 2803) issued January 22, 2026 (ML26009A012). 

In an acceptance letter dated February 13, 2026 (ML26A041A223), the NRC staff determined that Part 1 of the phased application meets the acceptance requirements of Title 10 of the Code of Federal Regulations (10 CFR) 2.101, “Filing of application,” 10 CFR 50.10, “License required; limited work authorization,” 10 CFR 50.33, “Contents of applications; general information,” 10 CFR 50.34, “Contents of applications; technical information,” 10 CFR 51.49, “Environmental report – limited work authorization,” and 10 CFR 51.50, “Environmental report – construction permit, early site permit, or combined license stage.” The NRC staff concluded that the application is acceptable for docketing and contains sufficient information to initiate detailed safety and environmental technical reviews and establish a predictable review schedule. The application also included three exemptions as discussed in Enclosure IV to Palisades SMR’s submittal (ML25365A989). 

Proposed Federal Action

The proposed Federal action is the NRC’s decision on whether to issue the LWA and CP to Palisades SMR, LLC,  a wholly-owned subsidiary of Holtec International Company, under the provisions of 10 CFR Part 50, “Domestic Licensing Of Production And Utilization Facilities,”  for the proposed construction of the dual-unit SMR 300 advanced pressurized light water reactors—designated as the Pioneer Units 1 and 2 project. 

Purpose and Need for the Project

The purpose of the Pioneer Units 1 and 2 project would be to provide electricity to meet the growing energy demand, provide a baseload generating source, and provide new electrical power generation consistent with Michigan’s and the nation’s energy goals. The units would provide ~680 megawatts electric (MWe) of reliable carbon-free baseload power.

The proposed Federal action—the NRC’s issuance of a LWA and CP—advances national policy objectives for decarbonization and energy security. Pioneer Units 1 and 2 would address the need for non-interruptible, and scalable power in the United States. Building capacity and supporting the nuclear workforce are priorities outlined in recent executive orders.

National Environmental Policy Act (NEPA)

NEPA requires Federal agencies to evaluate and disclose the environmental effects of the proposed Federal action on the human environment. The NRC complies with NEPA through its regulations in 10 CFR Part 51. The regulations form the basis for the NRC’s NEPA compliance and direct the NRC staff in how to perform environmental reviews.

The NRC’s environmental impact statement (EIS) documents the NRC’s thorough independent evaluation of the significance of the potential environmental impacts of the proposed action and reasonable alternatives to the proposed action.  During this process the public has the opportunity to comment on the scope of the review and on the draft report.

In accordance with NEPA as well as NRC’s NEPA implementing guidance in NUREG-1555, Standard Review Plans for Environmental Reviews for Nuclear Power Plants, and the New Nuclear Reactor Generic Environmental Impact Statement the EIS would contain:

• Descriptions of the Proposed Action, No-Action alternative, and Purpose and Need for the Proposed Action, as defined during the EIS scoping process 
• Descriptions of the affected environment  
• Evaluation of the potential environmental impacts of the Proposed Action, No-Action Alternative, and any other reasonable alternatives (these may be identified through the scoping process)   
• Evaluation of the reasonably foreseeable effects  of the Pioneer Units 1 and 2 proposed action and other actions having a close causal relationship. 

In developing the EIS, the NRC will consider input from other Federal, state and local agencies, tribal input from National Historic Preservation Act Section 106 activities, information from the NRC staff site visit and audit, SMR LLC’s phased CP application, and public comments.  The draft EIS will be issued for public comment prior to being finalized.

Scoping—What is Scoping?

Scoping identifies and defines the range of actions, alternatives, and environmental issues to be considered in the environmental document. As such, to provide concise and informative environmental documents, the NRC scoping process is used to (1) define the proposed action; (2) determine the scope of the environmental document and identify the significant issues to be analyzed in depth; and (3) identify and eliminate from detailed study the issues that are not important or have been covered by prior environmental review(s), narrowing the discussion of these issues to a brief presentation of why they will not have a significant effect on the human environment or providing reference to their coverage elsewhere.

The scoping process starts with the Federal Register, where the NRC publishes the Notice of Intent. Public participation is key to scoping, so the NRC gathers comments from individuals, organizations, and other governmental agencies to help define the environmental analysis. Scoping helps the NRC identify significant issues to be analyzed, as well as issues already addressed in prior reviews or otherwise not needing significant analysis. The NRC considers all comments and input.
 

Scoping - What is Scoping?

Scoping is the process the NRC uses to identify and define the range of actions, alternatives, and environmental issues to be addressed in an environmental document. It helps determine which issues require detailed analysis and which can be excluded because they are not significant or have already been addressed in prior environmental reviews.

The scoping process begins when the NRC publishes a Notice of Intent (NOI) in the Federal Register.

Through this process, the NRC:

1. Defines the proposed action.
2. Determines the scope of the environmental document and identifies significant issues for in-depth analysis.
3. Identifies issues that do not require detailed study and explains why they are not expected to significantly affect the human environment or references prior reviews addressing them.

Public participation is a central part of scoping. The NRC gathers comments from individuals, organizations, and governmental agencies to inform and scope of the environmental analysis. All comments and input received during scoping are considered in developing the environmental review. Please refer to the “How to Comment” tab or FRN to provide comments on NRC’s NEPA scope associated with the Pioneer Units 1 and 2 application.

What is NEPA?

• NEPA requires Federal agencies to evaluate and disclose the environmental effects of the proposed Federal action on the human environment. 

• The NRC complies with NEPA through its regulations in 10 CFR Part 51. The regulations form the basis for the NRC’s NEPA compliance and direct the staff on how to perform environmental reviews.

NEPA as an "Umbrella Law"

• NEPA is often called an “umbrella law” because its environmental disclosure documents—such as Categorical Exclusions, Environmental Assessments, and Environmental Impact Statements—consider many other laws, executive orders, and regulations. 

Environmental Review Oversight

• Within the NRC, the Environmental Center of Expertise (ECOE) leads these reviews. The ECOE evaluates environmental effects for actions such as new reactor licenses and license renewals. 

Pioneer Units 1 and 2 - Resource Areas Considered*

*Typical resources analyzed in NEPA reviews

During an environmental review, NRC staff evaluates the potential impacts of a proposed action on various aspects of the human environment, called “resource areas”. The scoping process helps to define the proposed Federal action, a reasonable range of alternatives, and the environmental issues to address. For the Pioneer Units 1 and 2 environmental review, scoping will: (1) define the proposed Federal action; (2) determine the scope of the environmental document and identify the significant issues for detailed analysis; and (3) identify and eliminate from detailed study the issues that are not important or have been covered by prior environmental review(s). 

The National Environmental Policy Act of 1969, as Amended (NEPA), requires Federal agencies to assess the environmental effects of proposed major Federal actions prior to making decisions. While NRC’s implementing regulations at 10 CFR 51.20(b) prescribe the level of NEPA review for Construction Permit and Limited Work Authorization applications, recent regulatory developments have prompted the NRC to consider whether a different level of review may be appropriate.

What is the National Historic Preservation Act?

• Congress enacted the National Historic Preservation Act of 1966, as Amended (NHPA), mandating that Federal decision-makers consider historic properties during project planning. The NHPA established:
  • Advisory Council on Historic Preservation (ACHP), State Historic Preservation Offices (SHPOs)/Tribal Historic Preservation Offices (THPOs), and the National Register of Historic Places.
• Section 106 of the NHPA requires Federal agencies to take into account the effects of their undertakings on historic properties and consult with the ACHP, as appropriate, and relevant SHPO(s) and/or THPO(s), Indian Tribes, interested parties with a demonstrated interest in the project, and the public.
• An undertaking for the NRC is the issuance of a license (e.g., combined license), permit, or other approval. 
• The NRC conducts the Section 106 process in accordance with the implementing regulations, "Protection of Historic Properties," 36 CFR Part 800. The goal of the Section 106 process is to identify and to consider historic properties that might be affected by an undertaking and to attempt to resolve any adverse effects through consultation. 
• In accordance with 36 CFR 800.1(c), the NRC must complete the Section 106 process prior to making its decision on the request for the licensing action. 
• The NHPA Section 106 regulations at 36 CFR 800.8(c) allow Federal agencies to coordinate Section 106 consultation requirements through the NEPA. 
• NEPA requires Federal agencies to evaluate the impacts of proposed Federal actions on the human environment and the cultural environment. 

NHPA Section 106 Flowchart

Source: ACHP.

What is the Endangered Species Act?

• The ESA is a Federal law passed in 1973 to protect plants and animals that are at risk of extinction and the habitats they depend on to survive.
• The law is carried out by two Federal agencies:
  • U.S. Fish and Wildlife Service (FWS), which covers terrestrial and freshwater species.
  • National Marine Fisheries Service (NMFS) under the National Oceanic and Atmospheric Administration (NOAA), which covers marine and migratory fish species.
• Under the ESA, species can be listed as endangered or threatened and it is prohibited to take listed species or remove and reduce to possession listed plants without the Service(s) exempting such take or possession.
  • "Take" means to harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect, or to attempt to engage in any such conduct.
  • "Remove and reduce to possession" means maliciously damage or destroy a listed plant; or remove, cut, dig up, or damage or destroy a listed plant species. 

How Does the ESA Affect Federal Projects?

• Federal agencies must consider endangered species when planning or approving projects.
• If a Federal action (such as issuing a license for a Combined License) could affect a listed species or its habitat, the agency must consult with FWS and/or NMFS. This process is called, Section 7 Consultation. 
• In some cases, the NRC can designate an applicant as a non-Federal representative (NFR) to conduct informal consultation (50 CFR 402.08).  
  • The NFR would then either conduct an informal consultation or prepare a biological assessment in support of an informal or formal consultation, but the Federal agency is still ultimately responsible and maintains decision-making authority. 

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