TX
Texas House Bill HB14

Texas 2025 - 89th Regular

Texas House Bill HB14 Compare Versions

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1-89R18526 SCR-D
2- By: Harris, et al. H.B. No. 14
3- Substitute the following for H.B. No. 14:
4- By: King C.S.H.B. No. 14
1+89R17461 TYPED
2+ By: Harris H.B. No. 14
3+
4+
55
66
77 A BILL TO BE ENTITLED
88 AN ACT
9- relating to support for the development of the nuclear energy
10- industry.
9+ relating to funding mechanisms within the Office of the Governor
10+ and Texas Public Utility Commission to support the deployment of
11+ advanced nuclear reactors in this state.
1112 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1213 SECTION 1. Subtitle F, Title 4, Government Code, is amended
1314 by adding Chapter 483 to read as follows:
14- CHAPTER 483. TEXAS ADVANCED NUCLEAR ENERGY OFFICE
15+ CHAPTER 483. TEXAS ADVANCED NUCLEAR DEPLOYMENT ACT
1516 SUBCHAPTER A. GENERAL PROVISIONS
16- Sec. 483.001. DEFINITIONS. In this chapter:
17- (1) "Advanced nuclear reactor" means a range of
18- nuclear reactor technologies determined by the office to be either
19- of generation III or generation IV, including large light water
20- reactors, small modular reactors, microreactors, and nuclear
21- cogeneration.
17+ Sec. 483.001. DEFININTIONS. IN THIS CHAPTER:
18+ (1) "Advanced nuclear reactor" means a range of proven
19+ and innovative nuclear reactor technologies across two generations
20+ (Gen III+ and Gen IV) and includes large light water reactors, small
21+ modular reactors, microreactors, and nuclear cogeneration.
2222 (2) "Advanced nuclear reactor project" means an
23- electric generation facility that relies on an advanced nuclear
24- reactor to generate power, a nuclear fuel cycle facility that
25- supplies advanced nuclear reactors, or associated technologies
26- supporting the advanced nuclear energy industry.
27- (3) "Combined license" means a license issued by the
23+ electric generation facility relying on an advanced nuclear reactor
24+ to generate power.
25+ (3) "Applicant" means a person or an entity applying
26+ for a license, permit, or other form of nuclear commission
27+ permission or approval under 10 C.F.R Parts 50, 52, 53, 54, or 55.
28+ (4) "Combined license" means a license issued by the
2829 nuclear commission that authorizes a licensee to construct and
2930 operate a nuclear power facility, such as a nuclear plant at a
3031 specific site, with specified conditions.
31- (4) "Construction permit" means a permit issued by the
32+ (5) "Commission" means the Public Utility Commission
33+ of Texas.
34+ (6) "Construction permit" means a permit issued by the
3235 nuclear commission for the construction of a nuclear production or
3336 utilization facility.
34- (5) "Director" means the director of the office.
35- (6) "Nuclear commission" means the United States
36- Nuclear Regulatory Commission or a representative of that
37- commission.
38- (7) "Office" means the Texas Advanced Nuclear Energy
39- Office established under Subchapter B.
40- (8) "Utility commission" means the Public Utility
41- Commission of Texas.
42- Sec. 483.002. EXPIRATION. This chapter expires September
37+ (7) "Director" means the director of the Texas
38+ Advanced Nuclear Deployment Office of the Governor.
39+ (8) "Final investment decision" means the final
40+ decision of a company to invest in a nuclear project.
41+ (9) "Nuclear commission" means the U.S. Nuclear
42+ Regulatory Commission or its duly authorized representatives.
43+ (10) "Operating license" means a license issued by the
44+ nuclear commission that allows a person to operate a nuclear power
45+ plant or reactor.
46+ (11) "Person" means any individual, corporation,
47+ partnership, firm, association, trust, estate, public or private
48+ institution, group, government agency other than the nuclear
49+ commission or the U.S. Department of Energy, except that the
50+ Department shall be considered a person to the extent that its
51+ facilities are subject to the licensing and related regulatory
52+ authority of the commission pursuant to section 202 of the Energy
53+ Reorganization Act of 1974, any state or any political subdivision
54+ of, or any political entity within a State, any foreign government
55+ or nation or any political subdivision of any such government or
56+ nation, or other entity; and any legal successor, representative,
57+ agent, or agency of the foregoing.
58+ (11) "Program" means the Texas Advanced Nuclear Energy
59+ Program under the Texas energy fund established by Section 49-q,
60+ Article III, Texas Constitution.
61+ Sec. 483.002. PURPOSE. (a) The purpose of this Act is to
62+ promote the development of advanced nuclear reactor projects for
63+ dispatchable electric generation while creating high-wage advanced
64+ manufacturing jobs in this state. The Act will spearhead the
65+ transition to a balanced energy future by advancing innovative
66+ nuclear generation technologies while delivering safe, reliable,
67+ and clean energy solutions that address the state's growing demand.
68+ The governor and legislature are committed to enhancing the state's
69+ energy security and fostering economic growth, ensuring that future
70+ development is safe and reliable.
71+ Sec. 483.101. ADMINISTRATIVE ATTACHMENT. (a) The office
72+ is administratively attached to the office of the governor, and the
73+ office of the governor shall provide administrative support to the
74+ office as provided by this section. The equal employment
75+ opportunity officer and the internal auditor of the office of the
76+ governor shall serve the same functions for the office as they serve
77+ for the office of the governor.
78+ Sec. 483.102. PROGRAM ESTABLISHMENT; ELIGIBILITY. (a) The
79+ commission shall establish a separate account for the program under
80+ the Texas energy fund authorized by Section 49-q, Article III,
81+ Texas Constitution.
82+ (b) The commission may use money in the account without
83+ further appropriation to provide grants under this subchapter to a
84+ person for the development of an advanced nuclear reactor projects
85+ in this state.
86+ Sec. 483.103. USE OF PROGRAM FUNDS. (a) Money in the
87+ program's account may be used only to administer grants established
88+ under this subchapter.
89+ Sec. 483.104. EXPIRATION. This chapter expires September
4390 1, 2040.
44- SUBCHAPTER B. TEXAS ADVANCED NUCLEAR ENERGY OFFICE
45- Sec. 483.101. ESTABLISHMENT AND PURPOSE OF OFFICE. (a) The
46- Texas Advanced Nuclear Energy Office is an office within the office
47- of the governor.
91+ SUBCHAPTER B. TEXAS ADVANCED NUCLEAR DEPLOYMENT OFFICE
92+ Sec. 483.201. OFFICE. (a) The Texas Advanced Nuclear
93+ Deployment Office is an office within the office of the governor.
4894 (b) The purposes of the office are to:
49- (1) provide strategic leadership for the advanced
95+ (1) collaborate with interested stakeholders and
96+ state and local leaders to craft a statewide strategic advanced
97+ nuclear public outreach program.
98+ (2) identify barriers to financial viability of
99+ nuclear energy generation, regulatory and licensing complexities
100+ that increase risk to developers of nuclear energy and provide
101+ recommendations to the governor and legislature regarding advanced
102+ nuclear energy and technologies;
103+ (3) provide strategic leadership within the advanced
50104 nuclear reactor system in this state;
51- (2) collaborate with interested stakeholders and
52- state and local leaders to craft a statewide strategic advanced
53- nuclear energy public outreach program;
54- (3) promote the development of advanced nuclear
55- reactor projects for dispatchable electric generation while
56- creating high-wage advanced manufacturing jobs in this state;
57- (4) lead the transition to a balanced energy future by
58- advancing innovative nuclear energy generation technologies while
59- delivering safe, reliable, and clean energy solutions that address
60- the state's growing demand;
61- (5) enhance the state's energy security, foster
62- economic growth, and ensure the safety of future nuclear energy
63- generation development;
64- (6) identify barriers to the financial viability of
65- nuclear energy generation and regulatory and licensing
66- complexities that increase risk to developers of nuclear energy;
67- (7) provide recommendations to the governor and
68- legislature regarding advanced nuclear energy and associated
69- technologies;
70- (8) leverage the expertise and capacity of
71- institutions of higher education, the nuclear energy industry, and
72- regulatory stakeholders to develop a comprehensive strategic plan
73- to ensure the development of advanced nuclear energy and associated
74- technologies in this state; and
75- (9) support the development of an advanced nuclear
76- energy supply chain and associated technologies in this state.
77- (c) The office may:
78- (1) solicit and accept gifts, grants, or loans from
79- and contract with any entity;
80- (2) establish ad hoc advisory committees as necessary
81- to carry out the office's duties under this chapter; and
82- (3) exercise any other power necessary to carry out
83- this chapter.
84- (d) The office shall conduct a study to determine the
85- necessity and feasibility of the office undertaking regulatory
86- functions related to nuclear energy generation facilities in this
87- state. The office shall submit the study to the legislature not
88- later than December 1, 2026. This subsection expires August 31,
89- 2027.
90- Sec. 483.102. DIRECTOR; DUTIES. (a) The governor shall
91- appoint a director of the office. The director serves at the
92- pleasure of the governor.
93- (b) The director must have demonstrated:
94- (1) experience in the field of advanced nuclear
95- energy; and
96- (2) executive and organizational ability.
105+ (4) leverage the expertise and capacity of
106+ institutions of higher education, industry, and regulatory
107+ stakeholders to develop a comprehensive strategic plan to ensure
108+ the development of advanced nuclear energy and technologies in this
109+ state; and
110+ (5) support the development of an advanced nuclear
111+ energy supply chain in this state.
112+ Sec. 483.202. DIRECTOR; DUTIES. (a) The governor shall
113+ appoint a director of the office who serves at the pleasure of the
114+ governor.
115+ (b) The director must have demonstrated experience in the
116+ areas of advanced nuclear energy and executive and organizational
117+ ability.
97118 (c) The director shall:
98119 (1) manage the affairs of the office;
99- (2) advise the utility commission on the provision of
100- grants from the Texas energy fund under Chapter 34, Utilities Code,
101- for nuclear energy generation facilities;
102- (3) administer programs established by this chapter;
103- (4) establish appropriate standards to ensure proper
104- use of money under this chapter; and
120+ (2) develop a plan to engage with stakeholders to
121+ gather input and solicit feedback on the development of rules
122+ promulgated by the commission related to the fund and fund
123+ programs;
124+ (3) administer the fund provided by the legislature
125+ and fund programs consistent with this chapter;
126+ (4) establish the appropriate standards to ensure the
127+ proper use of funds authorized under this chapter;
105128 (5) facilitate the location, expansion, and retention
106- of advanced nuclear reactor projects in this state.
107- (d) The director may hire staff as necessary to implement
108- the duties of the office under this chapter.
109- Sec. 483.103. STRATEGIC PLAN. Not later than December 1 of
110- each even-numbered year, the director shall submit to the governor
111- and Legislative Budget Board a strategic plan for furthering the
112- goals, purposes, and objectives established by this chapter.
113- Sec. 483.104. NUCLEAR PERMITTING COORDINATOR. (a) The
114- director may employ a nuclear permitting coordinator to assist
115- businesses throughout the nuclear energy generation permitting and
116- regulatory process.
117- (b) A nuclear permitting coordinator must have:
118- (1) a demonstrated familiarity with the permitting and
119- regulatory process in this state; and
120- (2) a network of contacts within the government of
121- this state.
122- (c) The nuclear permitting coordinator shall:
129+ of advanced nuclear reactor projects in this state;
130+ (6) deliver to the governor and Legislative Budget
131+ Board a strategic plan to further goals, purposes, and objectives
132+ of this chapter on or before December 1 of each even-numbered year;
133+ and
134+ (7) employ a nuclear permitting coordinator with a
135+ demonstrated familiarity with the permitting and regulatory
136+ process in this state and a developed network of contacts within the
137+ government of this state for the purposes of assisting businesses
138+ throughout the permitting and regulatory process.
139+ (d) The nuclear permitting coordinator shall:
123140 (1) act as a single point of contact for stakeholders
124- during the nuclear energy generation permitting process;
141+ during the nuclear energy permitting process;
125142 (2) identify active or likely siting opportunities and
126- required permits and approvals for nuclear energy generation sites
127- and key personnel;
128- (3) provide tailored assistance for regulated persons
129- navigating local, state, and federal regulations for nuclear energy
130- generation facilities; and
143+ required permits and approvals for nuclear energy sites and key
144+ personnel;
145+ (3) provide tailored assistance to help industry
146+ navigate relevant local, state, and federal regulations and
147+ regulatory entities for nuclear facilities; and
131148 (4) share information regarding this state's economic
132149 incentive programs for advanced nuclear reactor projects.
133- SUBCHAPTER C. TEXAS ADVANCED NUCLEAR DEVELOPMENT FUND; GRANT
134- PROGRAMS
135- Sec. 483.201. TEXAS ADVANCED NUCLEAR DEVELOPMENT FUND. (a)
136- The Texas advanced nuclear development fund is created as a
137- dedicated account in the general revenue fund. The fund consists
138- of:
139- (1) gifts, grants, or donations to the fund; and
140- (2) money from any other source designated by the
141- legislature.
142- (b) The office may use money in the fund:
143- (1) to provide reimbursement-based grants to
144- businesses, nonprofit organizations, and governmental entities,
145- including institutions of higher education, through the programs
146- established in this subchapter; and
147- (2) to pay for reasonable and necessary costs for
148- staff support necessary to facilitate the work of the office.
149- (c) Each biennium, the director shall allocate an amount of
150- the money appropriated to the fund for that biennium not to exceed
151- 25 percent to fund projects that may qualify for the program
152- established in Section 483.203.
153- Sec. 483.202. REIMBURSEMENT GRANT PROGRAMS ESTABLISHED.
154- (a) The office shall establish grant programs under this
155- subchapter and the director shall administer those programs.
156- (b) The office may only provide a grant under this
157- subchapter to reimburse expenses paid by a recipient using the
158- recipient's own funds. The office may not provide a grant under this
159- subchapter to reimburse expenses paid by a recipient using
160- financial assistance or incentives from any local, state, or
161- federal source.
162- (c) Before awarding a grant under this subchapter, the
163- office shall enter into a written agreement with the grant
164- recipient. A written agreement under this subsection must:
165- (1) specify benchmarks for the completion of the
166- project for which the grant is provided; and
167- (2) require the grant recipient to repay to the state
168- money received if the recipient fails to reach the specified
169- benchmarks.
170- Sec. 483.203. PROJECT DEVELOPMENT AND SUPPLY CHAIN
171- REIMBURSEMENT PROGRAM. (a) The office may provide a reimbursement
172- grant from the Texas advanced nuclear development fund under this
173- section for the expenses associated with initial development of an
174- advanced nuclear reactor project in this state.
175- (b) Expenses that qualify for reimbursement under this
176- section are limited to expenses attributable or allocable to:
177- (1) technology development, including university
178- technology development;
179- (2) feasibility studies;
180- (3) site planning, including conceptual site-specific
181- engineering studies;
182- (4) front-end engineering design, including
183- interconnection costs that would otherwise be paid by the project;
184- (5) site and environmental characterization;
185- (6) nuclear commission early site permit work;
186- (7) preparation of the construction permit or combined
187- license application to the nuclear commission;
188- (8) expanding existing nuclear assets in the state;
189- (9) developing manufacturing capacity and readiness;
190- (10) fuel processing, manufacturing, and fabrication
191- activities essential to the fuel cycle supply; and
192- (11) preparation of local, state, and non-nuclear
193- commission federal permits.
194- (c) A grant provided under this section may not exceed the
195- lesser of:
196- (1) 50 percent of the amount of qualifying expenses
197- associated with the initial development of the project; or
198- (2) $12.5 million.
199- (d) The office by rule shall establish procedures for the
200- application for and provision of a grant under this section.
201- Sec. 483.204. ADVANCED NUCLEAR CONSTRUCTION REIMBURSEMENT
202- PROGRAM. (a) The office may provide a reimbursement grant from the
203- Texas advanced nuclear development fund under this section for
204- expenses associated with the construction of an advanced nuclear
205- reactor project in this state.
206- (b) Expenses that qualify for reimbursement under this
207- section are limited to expenses associated with:
208- (1) the nuclear commission's review of the
209- construction permit or combined license application;
210- (2) procurement of long-lead components; or
211- (3) construction activities, including the
212- manufacture, fabrication, quality assurance, placement, erection,
213- installation, modification, inspection, or testing of an advanced
214- nuclear reactor project.
215- (c) A grant provided under this section may not exceed the
216- lesser of:
217- (1) 50 percent of the amount of qualifying expenses
218- associated with the project; or
219- (2) $200 million.
220- (d) The office by rule shall establish procedures for the
221- application for and provision of a grant under this section.
222- (e) The office may not provide a reimbursement grant for a
223- project under this section until the applicant has filed with the
224- nuclear commission a construction permit or combined license
225- application for the project.
226- (f) The office shall provide for the proceeds of each grant
227- awarded under this section to be distributed to the grant recipient
228- on a rolling basis for qualifying expenses.
229- Sec. 483.205. GRANT APPLICATION EVALUATION. The office
150+ (e) The director may:
151+ (1) hire staff as necessary to implement the duties of
152+ the office under this chapter; and
153+ (2) convene an advisory committee in the manner
154+ provided by Chapter 2110, Government Code.
155+ Sec. 483.203. APPLICATION EVALUATION. (a) The office
230156 shall evaluate an application for a grant under this subchapter
231157 based on the grant applicant's:
232158 (1) quality of services and management;
233159 (2) efficiency of operations;
234160 (3) access to resources essential for operating the
235161 project for which the grant is requested, such as land, water, and
236- reliable infrastructure, as applicable;
237- (4) application or docketing of a permit or license
238- with the nuclear commission; and
239- (5) evidence of creditworthiness and ability to repay
240- the grant.
241- Sec. 483.206. CONFIDENTIALITY. Information submitted to
242- the office in an application for a grant under this subchapter is
243- confidential and not subject to disclosure under Chapter 552.
244- SECTION 2. Subchapter A, Chapter 302, Labor Code, is
245- amended by adding Section 302.0081 to read as follows:
246- Sec. 302.0081. ADVANCED NUCLEAR ENERGY WORKFORCE
247- DEVELOPMENT PROGRAM. (a) In this section:
248- (1) "Coordinating board" means the Texas Higher
249- Education Coordinating Board.
250- (2) "General academic teaching institution,"
251- "institution of higher education," "public junior college," and
252- "public technical institute" have the meanings assigned by Section
253- 61.003, Education Code.
254- (3) "Office" means the Texas Advanced Nuclear Energy
255- Office established under Chapter 483, Government Code.
256- (4) "Program" means the advanced nuclear energy
257- workforce development program established under this section.
258- (b) The commission, in collaboration with the coordinating
259- board and the office, by rule shall establish and administer the
260- advanced nuclear energy workforce development program under this
261- section for the purpose of addressing urgent skilled labor demands
262- in the advanced nuclear energy industry in this state.
263- (c) Under the program, the commission shall:
264- (1) create a strategic plan for:
265- (A) addressing labor supply gaps and talent
266- retention issues in the advanced nuclear energy industry; and
267- (B) providing financial assistance, including
268- through the creation of strategic partnerships among public and
269- private entities and advanced nuclear energy industry
270- stakeholders, to incentivize and support:
271- (i) the creation by institutions of higher
272- education of education and training programs in the field of
273- advanced nuclear energy; and
274- (ii) research and leadership development in
275- the field of advanced nuclear energy at general academic teaching
276- institutions; and
277- (2) develop customized curriculum requirements for
278- degree and certificate programs to prepare students for high-wage
279- jobs in the advanced nuclear energy industry that, subject to
280- coordinating board approval under Section 61.0512, Education Code,
281- may be offered by an institution of higher education.
282- (d) In developing curriculum requirements under Subsection
283- (c)(2), the commission shall:
284- (1) consult with:
285- (A) representatives of the coordinating board,
286- general academic teaching institutions, public technical
287- institutes, and public junior colleges;
288- (B) representatives of the office; and
289- (C) employers in the advanced nuclear energy
290- industry; and
291- (2) focus on developing curricula for programs leading
292- to high-wage jobs in the areas of:
293- (A) nuclear-grade welding;
294- (B) radiological control and monitoring;
295- (C) reactor operations;
296- (D) nuclear instrumentation and control; and
297- (E) nuclear, electrical, chemical, civil, and
298- environmental engineering.
299- (e) Not later than September 1 of each year, the commission
300- shall prepare and submit to each standing committee of the
301- legislature with primary jurisdiction over workforce development,
302- higher education, or energy industry matters, a report summarizing
303- the commission's activities under the program. The report may
304- include the commission's recommendations for legislative or other
305- action.
306- SECTION 3. Chapter 34, Utilities Code, is amended by adding
307- Subchapter C to read as follows:
308- SUBCHAPTER C. ADVANCED NUCLEAR COMPLETION
309- Sec. 34.0301. DEFINITIONS. In this subchapter:
310- (1) "Advanced nuclear reactor" and "advanced nuclear
311- reactor project" have the meanings assigned by Section 483.001,
312- Government Code.
313- (2) "Fund" means the Texas energy fund established by
314- Section 49-q, Article III, Texas Constitution.
315- Sec. 34.0302. COMPLETION GRANT PROGRAM. (a) The
316- commission may provide, using money available in the fund for the
317- purpose without further appropriation, a grant for the costs
318- associated with the completion and operation of an advanced nuclear
319- reactor project in this state that is capable of interconnection
320- with the ERCOT power grid.
321- (b) The commission by rule shall establish the amount of a
322- grant the commission will provide under this section on a per
323- megawatt basis according to the generation capacity of the advanced
324- nuclear reactor project.
325- (c) The commission by rule shall establish procedures for:
326- (1) the application for and award of a grant under this
327- section;
328- (2) the administration of the grant program; and
329- (3) providing grants according to a tiered system
330- based on the amount of electricity in megawatts provided to the
331- ERCOT power grid by an advanced nuclear reactor project.
332- (d) The commission may not provide a grant under this
333- subchapter before June 2, 2029.
334- (e) Section 34.0106(b) does not apply to a grant awarded
335- under this subchapter.
336- Sec. 34.0303. NUCLEAR GRANT PROGRAM ACCOUNT. (a) The
337- commission shall establish a separate account within the fund for
338- the program described by this subchapter. Money in the account may
339- be used only to fund grants awarded under this subchapter.
340- (b) The commission shall transfer to the account described
341- by Subsection (a):
342- (1) the returns received after September 1, 2025, from
343- the investment of money in the fund;
344- (2) unspent money remaining in the fund on May 31,
345- 2029; and
346- (3) money repaid to the fund from loan recipients.
347- Sec. 34.0304. CONFIDENTIALITY. Information submitted to
162+ reliable infrastructure, as applicable; and
163+ (4) evidence of creditworthiness and ability to repay
164+ the grant subject to Subsection (b), including the grant
165+ applicant's total assets, total liabilities, net worth, and credit
166+ ratings issued by major credit rating agencies.
167+ (b) A grant agreement under Sections 483.302 or 483.303 may
168+ include a provision stating that the grant recipient shall repay
169+ the grant funds received if the grant recipient fails to obtain an
170+ operating license for the advanced nuclear reactor project that was
171+ financed using those funds.
172+ Sec. 483.204. CONFIDENTIALITY. Information submitted to
348173 the commission in an application for a grant under this subchapter
349174 is confidential and not subject to disclosure under Chapter 552,
350175 Government Code.
351- SECTION 4. The office of the governor is required to
352- implement the changes in law made in Section 1 of this Act only if
353- the legislature appropriates money specifically for that purpose.
354- If the legislature does not appropriate money specifically for that
355- purpose, the office of the governor may, but is not required to,
356- implement those changes in law using other appropriations available
357- for that purpose.
358- SECTION 5. This Act takes effect September 1, 2025.
176+ Sec. 483.205. EXPIRATION. This chapter expires September
177+ 1, 2040.
178+ Sec. 483.206. RULES. The office by rule shall establish
179+ procedures for:
180+ (1) the application for and award of a grant under this
181+ chapter, including the required documentation for qualifying
182+ expenses under Sections 483.303 and 483.304; and
183+ (2) the administration of the programs.
184+ SUBCHAPTER C. FUND PROGRAMS
185+ Sec. 483.301. PROGRAM ESTABLISHMENT; ELIGIBILITY. (a) The
186+ office shall establish and the director shall administer the
187+ programs established under this subchapter.
188+ (b) The office may use money in the fund without further
189+ appropriation to provide grants under this Subchapter to a person
190+ for the development of an advanced nuclear reactor project in this
191+ state.
192+ Sec. 483.302. TIER 1 PROJECT DEVELOPMENT AND SUPPLY CHAIN
193+ PROGRAM. (a) The office shall provide a reimbursement grant for
194+ the costs associated with initial development of an advanced
195+ nuclear reactor project in this state.
196+ (b) The office may provide a reimbursement grant under this
197+ section only for qualifying expenses associated with:
198+ (1) technology development, including university
199+ technology development;
200+ (2) feasibility studies;
201+ (3) site-planning, including conceptual site-specific
202+ engineering studies;
203+ (4) front-end engineering design, including
204+ interconnection costs that would otherwise be borne by the project;
205+ (5) site and environmental characterization;
206+ (6) nuclear commission Early Site Permit work;
207+ (7) preparation of the construction permit or combined
208+ license application to the nuclear commission;
209+ (8) advancing the expansion of current nuclear assets
210+ in the state;
211+ (9) develop manufacturing capacity and readiness; and
212+ (10) fuel fabrication activities essential to the fuel
213+ cycle supply.
214+ (c) The office may not provide a reimbursement grant under
215+ this section until the applicant has filed its Early Site Permit,
216+ construction permit, or combined license application with the
217+ nuclear commission.
218+ Sec. 483.303. TIER 2 ADVANCED NUCLEAR CONSTRUCTION PROGRAM.
219+ (a) The office shall provide a reimbursement grant for the costs
220+ associated with the construction of an advanced nuclear reactor
221+ project in this state.
222+ (b) The office may provide a reimbursement grant under this
223+ section only for:
224+ (1) a project whose construction permit or combined
225+ license application is under review by the nuclear commission; and
226+ (2) qualifying expenses associated with:
227+ (A) nuclear commission review of the
228+ construction permit or combined license application;
229+ (B) procurement of long-lead components; and
230+ (C) construction activities, including the
231+ manufacture, fabrication, quality assurance, placement, erection,
232+ installation, modification, inspection, or testing of an advanced
233+ nuclear reactor project.
234+ (c) The office may not provide a grant under this section of
235+ more than $200 million per project to be allocated as follows:
236+ (1) 30 percent to the grant recipient after the
237+ construction permit or combined license application is docketed at
238+ the nuclear commission; and
239+ (2) 70 percent to the grant recipient after the final
240+ investment decision for the project is made.
241+ (d) The office shall provide for the proceeds of each
242+ reimbursement grant awarded under this section to be distributed to
243+ the grant recipient on a rolling basis for qualifying expenses
244+ under this section, including eligible expenses that were incurred
245+ prior to the project's enrollment in the program. The total amount
246+ of disbursements per project may not exceed the maximum amount as
247+ limited by Subsection (c).
248+ SECTION 2. Chapter 301, Labor Code, is amended by adding
249+ Subchapter L to read as follows:
250+ SUBCHAPTER L. ADVANCED NUCLEAR WORKFORCE DEVELOPMENT PROGRAM
251+ Sec. 301.201. COOPERATION WITH TEXAS ADVANCED NUCLEAR
252+ ENERGY OFFICE AND TEXAS HIGHER EDUCATION COORDINATING BOARD. The
253+ commission shall collaborate with the Texas Advanced Nuclear Energy
254+ Office established in chapter 483, Government Code, and the Texas
255+ Higher Education Coordinating Board to administer an advanced
256+ nuclear workforce development program to address skill and labor
257+ gaps in the advanced nuclear energy industry in this state.
258+ SECTION 3. Subtitle B, Title 2, Utilities Code, is amended
259+ by adding Chapter 44 to read as follows:
260+ CHAPTER 44. TEXAS ADVANCED NUCLEAR COMPLETION FUND
261+ SUBCHAPTER A. TEXAS ADVANCED NUCLEAR ENERGY FUND
262+ Sec. 44.101. TIER 3 COMPLETION PAYMENT PROGRAM. (a) The
263+ commission shall provide a grant for the costs associated with the
264+ completion and operation of an advanced nuclear reactor project in
265+ this state.
266+ (b) The commission may provide a grant under this section on
267+ a per megawatt basis only for an advanced nuclear reactor project
268+ that is activated and operating.
269+ (c) Any monies earned on interest, unspent funds, or loan
270+ repayments from the Texas Energy Fund is deposited into the Sec.
271+ 44.101 program.
272+ Sec. 44.102. RULES. The commission by rule shall establish
273+ procedures for:
274+ (1) the application for and award of a grant under this
275+ chapter;
276+ (2) the administration of the program; and
277+ (3) a tiered completion bonus program to incentivize
278+ advanced nuclear reactors that have demonstrated a prioritization
279+ and utilization of Texas based manufacturing, supply chain, fuel
280+ fabrication, and workforce.
281+ SECTION 4. This Act takes effect September 1, 2025.