Oak Ridge council adopts nuclear industrial overlay and approves related steps to support industry growth

Oak Ridge City Council took a series of actions on first reading and by resolution to position the city to host advanced nuclear industry projects, approving a text amendment to create a Nuclear Industrial Overlay (NIO), applying that overlay to multiple parcels by zoning map amendment, and approving infrastructure and consulting steps intended to support nuclear projects.

Miss Williams presented the ordinance creating the NIO and said the change was prompted by recent growth in the local nuclear industry and several zoning roadblocks. The city received funding from the Oak Ridge Reservation Communities Alliance to evaluate the zoning ordinance and retained Bass, Berry & Sims to help draft the overlay.

Greg Young of Bass, Berry & Sims told council the ordinance was crafted after national research and an iterative process with staff and stakeholders, and he described the draft as struck to balance municipal authority over land use and to avoid intruding into areas reserved for federal or state jurisdiction. "We believe that the city is very well positioned with this ordinance," Young said, adding the ordinance aligns with broader state and regional efforts to facilitate nuclear development.

Councilmembers raised questions about local technical oversight for nuclear projects. Councilmember Hensley asked, "Who who here keeps us out of nuclear issues?" and Young replied that nuclear safety and radiological jurisdiction primarily rest with the Nuclear Regulatory Commission and the Tennessee Department of Environment and Conservation—s Division of Radiological Health, which provide layers of federal and state protection. Several members said the city should also have local expertise and communication plans so residents can understand technical issues as projects progress.

Council approved the NIO text amendment on first reading by voice vote and also approved three separate zoning map amendments on first reading to apply the overlay to parcels in Heritage Center Industrial Park, Horizon Center Industrial Park, and a Bear Creek Road area. Council also authorized a no-cost property transfer of certain city-owned parcels in Heritage Center Industrial Park to Standard Nuclear for a proposed new headquarters; staff said Standard Nuclear will assume demolition and site-preparation costs and that the agreement will include performance and clawback provisions. Council discussed the building—s poor condition, hazardous materials and a recent large drop in appraisal value but approved the transfer.

Council approved several other items tied to infrastructure and pre-construction planning: the purchase of two 40 MVA transformers for $4,599,057 and two 161 kV breakers from TVA for $240,000 (both funded from the electric fund and to be reimbursed via a triparty agreement with the state and Roane County), and a consulting contract with Cannon & Cannon for radiological wastewater advisory services related to cleanup and handling of sludge from the Rarity Ridge Wastewater Treatment Plant. The council also approved a resolution authorizing staff to draft comment letters opposing a New Mexico Environment Department permit amendment for the Waste Isolation Pilot Plant that hosts transuranic waste, arguing the amendment could harm cleanup timelines for Oak Ridge.

The actions passed on first reading or by resolution; councilmembers called for continued public engagement, and staff said follow-up technical work and communications will be required as projects move into design and permitting stages.