There are several communities around the INEEL where a lot of the "site workers" live. Idaho Falls is just the biggest.
Shortest time to work is frrom Arco area, a real country town, or you could even park a trailer at Atomic City, which is even closer, and listen to the sagebrush grow in the evening.
Blackfoot is about 1/2 hour away, quite small with few serious entertainment spots, lots of country and cowboy influence.
Pocatello is a college town, moderate night-life and decent amenities. Much more liberal than Idaho Falls. Probably the longest drive to work from here.
Idaho Falls is the DOE office town and is 45-60 miles from most of the INEEL work on a busy two-lane highway. You get what you pay for in living quarters, and looking around for a week or two can locate some good deals, but it's a LOT less expensive than an area like Denver. Moderate night-life and other entertainment depends on the season, (there's a LOT of other things to do in the outdoors).
For people working at Test area North and Bechtel/Naval Reactors Facilities, the Mud Lake and Terreton area is closest, but most people who work there drive from Idaho Falls, Rexburg (a Mormon college town) or places in between.