89R18526 SCR-D
By: Harris, et al. H.B. No. 14
Substitute the following for H.B. No. 14:
By: King C.S.H.B. No. 14
A BILL TO BE ENTITLED
AN ACT
relating to support for the development of the nuclear energy
industry.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 4, Government Code, is amended
by adding Chapter 483 to read as follows:
CHAPTER 483. TEXAS ADVANCED NUCLEAR ENERGY OFFICE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 483.001. DEFINITIONS. In this chapter:
(1) "Advanced nuclear reactor" means a range of
nuclear reactor technologies determined by the office to be either
of generation III or generation IV, including large light water
reactors, small modular reactors, microreactors, and nuclear
cogeneration.
(2) "Advanced nuclear reactor project" means an
electric generation facility that relies on an advanced nuclear
reactor to generate power, a nuclear fuel cycle facility that
supplies advanced nuclear reactors, or associated technologies
supporting the advanced nuclear energy industry.
(3) "Combined license" means a license issued by the
nuclear commission that authorizes a licensee to construct and
operate a nuclear power facility, such as a nuclear plant at a
specific site, with specified conditions.
(4) "Construction permit" means a permit issued by the
nuclear commission for the construction of a nuclear production or
utilization facility.
(5) "Director" means the director of the office.
(6) "Nuclear commission" means the United States
Nuclear Regulatory Commission or a representative of that
commission.
(7) "Office" means the Texas Advanced Nuclear Energy
Office established under Subchapter B.
(8) "Utility commission" means the Public Utility
Commission of Texas.
Sec. 483.002. EXPIRATION. This chapter expires September
1, 2040.
SUBCHAPTER B. TEXAS ADVANCED NUCLEAR ENERGY OFFICE
Sec. 483.101. ESTABLISHMENT AND PURPOSE OF OFFICE. (a) The
Texas Advanced Nuclear Energy Office is an office within the office
of the governor.
(b) The purposes of the office are to:
(1) provide strategic leadership for the advanced
nuclear reactor system in this state;
(2) collaborate with interested stakeholders and
state and local leaders to craft a statewide strategic advanced
nuclear energy public outreach program;
(3) promote the development of advanced nuclear
reactor projects for dispatchable electric generation while
creating high-wage advanced manufacturing jobs in this state;
(4) lead the transition to a balanced energy future by
advancing innovative nuclear energy generation technologies while
delivering safe, reliable, and clean energy solutions that address
the state's growing demand;
(5) enhance the state's energy security, foster
economic growth, and ensure the safety of future nuclear energy
generation development;
(6) identify barriers to the financial viability of
nuclear energy generation and regulatory and licensing
complexities that increase risk to developers of nuclear energy;
(7) provide recommendations to the governor and
legislature regarding advanced nuclear energy and associated
technologies;
(8) leverage the expertise and capacity of
institutions of higher education, the nuclear energy industry, and
regulatory stakeholders to develop a comprehensive strategic plan
to ensure the development of advanced nuclear energy and associated
technologies in this state; and
(9) support the development of an advanced nuclear
energy supply chain and associated technologies in this state.
(c) The office may:
(1) solicit and accept gifts, grants, or loans from
and contract with any entity;
(2) establish ad hoc advisory committees as necessary
to carry out the office's duties under this chapter; and
(3) exercise any other power necessary to carry out
this chapter.
(d) The office shall conduct a study to determine the
necessity and feasibility of the office undertaking regulatory
functions related to nuclear energy generation facilities in this
state. The office shall submit the study to the legislature not
later than December 1, 2026. This subsection expires August 31,
2027.
Sec. 483.102. DIRECTOR; DUTIES. (a) The governor shall
appoint a director of the office. The director serves at the
pleasure of the governor.
(b) The director must have demonstrated:
(1) experience in the field of advanced nuclear
energy; and
(2) executive and organizational ability.
(c) The director shall:
(1) manage the affairs of the office;
(2) advise the utility commission on the provision of
grants from the Texas energy fund under Chapter 34, Utilities Code,
for nuclear energy generation facilities;
(3) administer programs established by this chapter;
(4) establish appropriate standards to ensure proper
use of money under this chapter; and
(5) facilitate the location, expansion, and retention
of advanced nuclear reactor projects in this state.
(d) The director may hire staff as necessary to implement
the duties of the office under this chapter.
Sec. 483.103. STRATEGIC PLAN. Not later than December 1 of
each even-numbered year, the director shall submit to the governor
and Legislative Budget Board a strategic plan for furthering the
goals, purposes, and objectives established by this chapter.
Sec. 483.104. NUCLEAR PERMITTING COORDINATOR. (a) The
director may employ a nuclear permitting coordinator to assist
businesses throughout the nuclear energy generation permitting and
regulatory process.
(b) A nuclear permitting coordinator must have:
(1) a demonstrated familiarity with the permitting and
regulatory process in this state; and
(2) a network of contacts within the government of
this state.
(c) The nuclear permitting coordinator shall:
(1) act as a single point of contact for stakeholders
during the nuclear energy generation permitting process;
(2) identify active or likely siting opportunities and
required permits and approvals for nuclear energy generation sites
and key personnel;
(3) provide tailored assistance for regulated persons
navigating local, state, and federal regulations for nuclear energy
generation facilities; and
(4) share information regarding this state's economic
incentive programs for advanced nuclear reactor projects.
SUBCHAPTER C. TEXAS ADVANCED NUCLEAR DEVELOPMENT FUND; GRANT
PROGRAMS
Sec. 483.201. TEXAS ADVANCED NUCLEAR DEVELOPMENT FUND. (a)
The Texas advanced nuclear development fund is created as a
dedicated account in the general revenue fund. The fund consists
of:
(1) gifts, grants, or donations to the fund; and
(2) money from any other source designated by the
legislature.
(b) The office may use money in the fund:
(1) to provide reimbursement-based grants to
businesses, nonprofit organizations, and governmental entities,
including institutions of higher education, through the programs
established in this subchapter; and
(2) to pay for reasonable and necessary costs for
staff support necessary to facilitate the work of the office.
(c) Each biennium, the director shall allocate an amount of
the money appropriated to the fund for that biennium not to exceed
25 percent to fund projects that may qualify for the program
established in Section 483.203.
Sec. 483.202. REIMBURSEMENT GRANT PROGRAMS ESTABLISHED.
(a) The office shall establish grant programs under this
subchapter and the director shall administer those programs.
(b) The office may only provide a grant under this
subchapter to reimburse expenses paid by a recipient using the
recipient's own funds. The office may not provide a grant under this
subchapter to reimburse expenses paid by a recipient using
financial assistance or incentives from any local, state, or
federal source.
(c) Before awarding a grant under this subchapter, the
office shall enter into a written agreement with the grant
recipient. A written agreement under this subsection must:
(1) specify benchmarks for the completion of the
project for which the grant is provided; and
(2) require the grant recipient to repay to the state
money received if the recipient fails to reach the specified
benchmarks.
Sec. 483.203. PROJECT DEVELOPMENT AND SUPPLY CHAIN
REIMBURSEMENT PROGRAM. (a) The office may provide a reimbursement
grant from the Texas advanced nuclear development fund under this
section for the expenses associated with initial development of an
advanced nuclear reactor project in this state.
(b) Expenses that qualify for reimbursement under this
section are limited to expenses attributable or allocable to:
(1) technology development, including university
technology development;
(2) feasibility studies;
(3) site planning, including conceptual site-specific
engineering studies;
(4) front-end engineering design, including
interconnection costs that would otherwise be paid by the project;
(5) site and environmental characterization;
(6) nuclear commission early site permit work;
(7) preparation of the construction permit or combined
license application to the nuclear commission;
(8) expanding existing nuclear assets in the state;
(9) developing manufacturing capacity and readiness;
(10) fuel processing, manufacturing, and fabrication
activities essential to the fuel cycle supply; and
(11) preparation of local, state, and non-nuclear
commission federal permits.
(c) A grant provided under this section may not exceed the
lesser of:
(1) 50 percent of the amount of qualifying expenses
associated with the initial development of the project; or
(2) $12.5 million.
(d) The office by rule shall establish procedures for the
application for and provision of a grant under this section.
Sec. 483.204. ADVANCED NUCLEAR CONSTRUCTION REIMBURSEMENT
PROGRAM. (a) The office may provide a reimbursement grant from the
Texas advanced nuclear development fund under this section for
expenses associated with the construction of an advanced nuclear
reactor project in this state.
(b) Expenses that qualify for reimbursement under this
section are limited to expenses associated with:
(1) the nuclear commission's review of the
construction permit or combined license application;
(2) procurement of long-lead components; or
(3) construction activities, including the
manufacture, fabrication, quality assurance, placement, erection,
installation, modification, inspection, or testing of an advanced
nuclear reactor project.
(c) A grant provided under this section may not exceed the
lesser of:
(1) 50 percent of the amount of qualifying expenses
associated with the project; or
(2) $200 million.
(d) The office by rule shall establish procedures for the
application for and provision of a grant under this section.
(e) The office may not provide a reimbursement grant for a
project under this section until the applicant has filed with the
nuclear commission a construction permit or combined license
application for the project.
(f) The office shall provide for the proceeds of each grant
awarded under this section to be distributed to the grant recipient
on a rolling basis for qualifying expenses.
Sec. 483.205. GRANT APPLICATION EVALUATION. The office
shall evaluate an application for a grant under this subchapter
based on the grant applicant's:
(1) quality of services and management;
(2) efficiency of operations;
(3) access to resources essential for operating the
project for which the grant is requested, such as land, water, and
reliable infrastructure, as applicable;
(4) application or docketing of a permit or license
with the nuclear commission; and
(5) evidence of creditworthiness and ability to repay
the grant.
Sec. 483.206. CONFIDENTIALITY. Information submitted to
the office in an application for a grant under this subchapter is
confidential and not subject to disclosure under Chapter 552.
SECTION 2. Subchapter A, Chapter 302, Labor Code, is
amended by adding Section 302.0081 to read as follows:
Sec. 302.0081. ADVANCED NUCLEAR ENERGY WORKFORCE
DEVELOPMENT PROGRAM. (a) In this section:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "General academic teaching institution,"
"institution of higher education," "public junior college," and
"public technical institute" have the meanings assigned by Section
61.003, Education Code.
(3) "Office" means the Texas Advanced Nuclear Energy
Office established under Chapter 483, Government Code.
(4) "Program" means the advanced nuclear energy
workforce development program established under this section.
(b) The commission, in collaboration with the coordinating
board and the office, by rule shall establish and administer the
advanced nuclear energy workforce development program under this
section for the purpose of addressing urgent skilled labor demands
in the advanced nuclear energy industry in this state.
(c) Under the program, the commission shall:
(1) create a strategic plan for:
(A) addressing labor supply gaps and talent
retention issues in the advanced nuclear energy industry; and
(B) providing financial assistance, including
through the creation of strategic partnerships among public and
private entities and advanced nuclear energy industry
stakeholders, to incentivize and support:
(i) the creation by institutions of higher
education of education and training programs in the field of
advanced nuclear energy; and
(ii) research and leadership development in
the field of advanced nuclear energy at general academic teaching
institutions; and
(2) develop customized curriculum requirements for
degree and certificate programs to prepare students for high-wage
jobs in the advanced nuclear energy industry that, subject to
coordinating board approval under Section 61.0512, Education Code,
may be offered by an institution of higher education.
(d) In developing curriculum requirements under Subsection
(c)(2), the commission shall:
(1) consult with:
(A) representatives of the coordinating board,
general academic teaching institutions, public technical
institutes, and public junior colleges;
(B) representatives of the office; and
(C) employers in the advanced nuclear energy
industry; and
(2) focus on developing curricula for programs leading
to high-wage jobs in the areas of:
(A) nuclear-grade welding;
(B) radiological control and monitoring;
(C) reactor operations;
(D) nuclear instrumentation and control; and
(E) nuclear, electrical, chemical, civil, and
environmental engineering.
(e) Not later than September 1 of each year, the commission
shall prepare and submit to each standing committee of the
legislature with primary jurisdiction over workforce development,
higher education, or energy industry matters, a report summarizing
the commission's activities under the program. The report may
include the commission's recommendations for legislative or other
action.
SECTION 3. Chapter 34, Utilities Code, is amended by adding
Subchapter C to read as follows:
SUBCHAPTER C. ADVANCED NUCLEAR COMPLETION
Sec. 34.0301. DEFINITIONS. In this subchapter:
(1) "Advanced nuclear reactor" and "advanced nuclear
reactor project" have the meanings assigned by Section 483.001,
Government Code.
(2) "Fund" means the Texas energy fund established by
Section 49-q, Article III, Texas Constitution.
Sec. 34.0302. COMPLETION GRANT PROGRAM. (a) The
commission may provide, using money available in the fund for the
purpose without further appropriation, a grant for the costs
associated with the completion and operation of an advanced nuclear
reactor project in this state that is capable of interconnection
with the ERCOT power grid.
(b) The commission by rule shall establish the amount of a
grant the commission will provide under this section on a per
megawatt basis according to the generation capacity of the advanced
nuclear reactor project.
(c) The commission by rule shall establish procedures for:
(1) the application for and award of a grant under this
section;
(2) the administration of the grant program; and
(3) providing grants according to a tiered system
based on the amount of electricity in megawatts provided to the
ERCOT power grid by an advanced nuclear reactor project.
(d) The commission may not provide a grant under this
subchapter before June 2, 2029.
(e) Section 34.0106(b) does not apply to a grant awarded
under this subchapter.
Sec. 34.0303. NUCLEAR GRANT PROGRAM ACCOUNT. (a) The
commission shall establish a separate account within the fund for
the program described by this subchapter. Money in the account may
be used only to fund grants awarded under this subchapter.
(b) The commission shall transfer to the account described
by Subsection (a):
(1) the returns received after September 1, 2025, from
the investment of money in the fund;
(2) unspent money remaining in the fund on May 31,
2029; and
(3) money repaid to the fund from loan recipients.
Sec. 34.0304. CONFIDENTIALITY. Information submitted to
the commission in an application for a grant under this subchapter
is confidential and not subject to disclosure under Chapter 552,
Government Code.
SECTION 4. The office of the governor is required to
implement the changes in law made in Section 1 of this Act only if
the legislature appropriates money specifically for that purpose.
If the legislature does not appropriate money specifically for that
purpose, the office of the governor may, but is not required to,
implement those changes in law using other appropriations available
for that purpose.
SECTION 5. This Act takes effect September 1, 2025.