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Texas Senate Bill SB2060

Texas 2025 - 89th Regular

Texas Senate Bill SB2060 Compare Versions

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11 89R17461 TYPED
22 By: Parker S.B. No. 2060
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to funding mechanisms within the Office of the Governor
1010 and Texas Public Utility Commission to support the deployment of
1111 advanced nuclear reactors in this state.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Subtitle F, Title 4, Government Code, is amended
1414 by adding Chapter 483 to read as follows:
1515 CHAPTER 483. TEXAS ADVANCED NUCLEAR DEPLOYMENT ACT
1616 SUBCHAPTER A. GENERAL PROVISIONS
1717 Sec. 483.001. DEFININTIONS. IN THIS CHAPTER:
1818 (1) "Advanced nuclear reactor" means a range of proven
1919 and innovative nuclear reactor technologies across two generations
2020 (Gen III+ and Gen IV) and includes large light water reactors, small
2121 modular reactors, microreactors, and nuclear cogeneration.
2222 (2) "Advanced nuclear reactor project" means an
2323 electric generation facility relying on an advanced nuclear reactor
2424 to generate power.
2525 (3) "Applicant" means a person or an entity applying
2626 for a license, permit, or other form of nuclear commission
2727 permission or approval under 10 C.F.R Parts 50, 52, 53, 54, or 55.
2828 (4) "Combined license" means a license issued by the
2929 nuclear commission that authorizes a licensee to construct and
3030 operate a nuclear power facility, such as a nuclear plant at a
3131 specific site, with specified conditions.
3232 (5) "Commission" means the Public Utility Commission
3333 of Texas.
3434 (6) "Construction permit" means a permit issued by the
3535 nuclear commission for the construction of a nuclear production or
3636 utilization facility.
3737 (7) "Director" means the director of the Texas
3838 Advanced Nuclear Deployment Office of the Governor.
3939 (8) "Final investment decision" means the final
4040 decision of a company to invest in a nuclear project.
4141 (9) "Nuclear commission" means the U.S. Nuclear
4242 Regulatory Commission or its duly authorized representatives.
4343 (10) "Operating license" means a license issued by the
4444 nuclear commission that allows a person to operate a nuclear power
4545 plant or reactor.
4646 (11) "Person" means any individual, corporation,
4747 partnership, firm, association, trust, estate, public or private
4848 institution, group, government agency other than the nuclear
4949 commission or the U.S. Department of Energy, except that the
5050 Department shall be considered a person to the extent that its
5151 facilities are subject to the licensing and related regulatory
5252 authority of the commission pursuant to section 202 of the Energy
5353 Reorganization Act of 1974, any state or any political subdivision
5454 of, or any political entity within a State, any foreign government
5555 or nation or any political subdivision of any such government or
5656 nation, or other entity; and any legal successor, representative,
5757 agent, or agency of the foregoing.
5858 (11) "Program" means the Texas Advanced Nuclear Energy
5959 Program under the Texas energy fund established by Section 49-q,
6060 Article III, Texas Constitution.
6161 Sec. 483.002. PURPOSE. (a) The purpose of this Act is to
6262 promote the development of advanced nuclear reactor projects for
6363 dispatchable electric generation while creating high-wage advanced
6464 manufacturing jobs in this state. The Act will spearhead the
6565 transition to a balanced energy future by advancing innovative
6666 nuclear generation technologies while delivering safe, reliable,
6767 and clean energy solutions that address the state's growing demand.
6868 The governor and legislature are committed to enhancing the state's
6969 energy security and fostering economic growth, ensuring that future
7070 development is safe and reliable.
7171 Sec. 483.101. ADMINISTRATIVE ATTACHMENT. (a) The office
7272 is administratively attached to the office of the governor, and the
7373 office of the governor shall provide administrative support to the
7474 office as provided by this section. The equal employment
7575 opportunity officer and the internal auditor of the office of the
7676 governor shall serve the same functions for the office as they serve
7777 for the office of the governor.
7878 Sec. 483.102. PROGRAM ESTABLISHMENT; ELIGIBILITY. (a) The
7979 commission shall establish a separate account for the program under
8080 the Texas energy fund authorized by Section 49-q, Article III,
8181 Texas Constitution.
8282 (b) The commission may use money in the account without
8383 further appropriation to provide grants under this subchapter to a
8484 person for the development of an advanced nuclear reactor projects
8585 in this state.
8686 Sec. 483.103. USE OF PROGRAM FUNDS. (a) Money in the
8787 program's account may be used only to administer grants established
8888 under this subchapter.
8989 Sec. 483.104. EXPIRATION. This chapter expires September
9090 1, 2040.
9191 SUBCHAPTER B. TEXAS ADVANCED NUCLEAR DEPLOYMENT OFFICE
9292 Sec. 483.201. OFFICE. (a) The Texas Advanced Nuclear
9393 Deployment Office is an office within the office of the governor.
9494 (b) The purposes of the office are to:
9595 (1) collaborate with interested stakeholders and
9696 state and local leaders to craft a statewide strategic advanced
9797 nuclear public outreach program.
9898 (2) identify barriers to financial viability of
9999 nuclear energy generation, regulatory and licensing complexities
100100 that increase risk to developers of nuclear energy and provide
101101 recommendations to the governor and legislature regarding advanced
102102 nuclear energy and technologies;
103103 (3) provide strategic leadership within the advanced
104104 nuclear reactor system in this state;
105105 (4) leverage the expertise and capacity of
106106 institutions of higher education, industry, and regulatory
107107 stakeholders to develop a comprehensive strategic plan to ensure
108108 the development of advanced nuclear energy and technologies in this
109109 state; and
110110 (5) support the development of an advanced nuclear
111111 energy supply chain in this state.
112112 Sec. 483.202. DIRECTOR; DUTIES. (a) The governor shall
113113 appoint a director of the office who serves at the pleasure of the
114114 governor.
115115 (b) The director must have demonstrated experience in the
116116 areas of advanced nuclear energy and executive and organizational
117117 ability.
118118 (c) The director shall:
119119 (1) manage the affairs of the office;
120120 (2) develop a plan to engage with stakeholders to
121121 gather input and solicit feedback on the development of rules
122122 promulgated by the commission related to the fund and fund
123123 programs;
124124 (3) administer the fund provided by the legislature
125125 and fund programs consistent with this chapter;
126126 (4) establish the appropriate standards to ensure the
127127 proper use of funds authorized under this chapter;
128128 (5) facilitate the location, expansion, and retention
129129 of advanced nuclear reactor projects in this state;
130130 (6) deliver to the governor and Legislative Budget
131131 Board a strategic plan to further goals, purposes, and objectives
132132 of this chapter on or before December 1 of each even-numbered year;
133133 and
134134 (7) employ a nuclear permitting coordinator with a
135135 demonstrated familiarity with the permitting and regulatory
136136 process in this state and a developed network of contacts within the
137137 government of this state for the purposes of assisting businesses
138138 throughout the permitting and regulatory process.
139139 (d) The nuclear permitting coordinator shall:
140140 (1) act as a single point of contact for stakeholders
141141 during the nuclear energy permitting process;
142142 (2) identify active or likely siting opportunities and
143143 required permits and approvals for nuclear energy sites and key
144144 personnel;
145145 (3) provide tailored assistance to help industry
146146 navigate relevant local, state, and federal regulations and
147147 regulatory entities for nuclear facilities; and
148148 (4) share information regarding this state's economic
149149 incentive programs for advanced nuclear reactor projects.
150150 (e) The director may:
151151 (1) hire staff as necessary to implement the duties of
152152 the office under this chapter; and
153153 (2) convene an advisory committee in the manner
154154 provided by Chapter 2110, Government Code.
155155 Sec. 483.203. APPLICATION EVALUATION. (a) The office
156156 shall evaluate an application for a grant under this subchapter
157157 based on the grant applicant's:
158158 (1) quality of services and management;
159159 (2) efficiency of operations;
160160 (3) access to resources essential for operating the
161161 project for which the grant is requested, such as land, water, and
162162 reliable infrastructure, as applicable; and
163163 (4) evidence of creditworthiness and ability to repay
164164 the grant subject to Subsection (b), including the grant
165165 applicant's total assets, total liabilities, net worth, and credit
166166 ratings issued by major credit rating agencies.
167167 (b) A grant agreement under Sections 483.302 or 483.303 may
168168 include a provision stating that the grant recipient shall repay
169169 the grant funds received if the grant recipient fails to obtain an
170170 operating license for the advanced nuclear reactor project that was
171171 financed using those funds.
172172 Sec. 483.204. CONFIDENTIALITY. Information submitted to
173173 the commission in an application for a grant under this subchapter
174174 is confidential and not subject to disclosure under Chapter 552,
175175 Government Code.
176176 Sec. 483.205. EXPIRATION. This chapter expires September
177177 1, 2040.
178178 Sec. 483.206. RULES. The office by rule shall establish
179179 procedures for:
180180 (1) the application for and award of a grant under this
181181 chapter, including the required documentation for qualifying
182182 expenses under Sections 483.303 and 483.304; and
183183 (2) the administration of the programs.
184184 SUBCHAPTER C. FUND PROGRAMS
185185 Sec. 483.301. PROGRAM ESTABLISHMENT; ELIGIBILITY. (a) The
186186 office shall establish and the director shall administer the
187187 programs established under this subchapter.
188188 (b) The office may use money in the fund without further
189189 appropriation to provide grants under this Subchapter to a person
190190 for the development of an advanced nuclear reactor project in this
191191 state.
192192 Sec. 483.302. TIER 1 PROJECT DEVELOPMENT AND SUPPLY CHAIN
193193 PROGRAM. (a) The office shall provide a reimbursement grant for
194194 the costs associated with initial development of an advanced
195195 nuclear reactor project in this state.
196196 (b) The office may provide a reimbursement grant under this
197197 section only for qualifying expenses associated with:
198198 (1) technology development, including university
199199 technology development;
200200 (2) feasibility studies;
201201 (3) site-planning, including conceptual site-specific
202202 engineering studies;
203203 (4) front-end engineering design, including
204204 interconnection costs that would otherwise be borne by the project;
205205 (5) site and environmental characterization;
206206 (6) nuclear commission Early Site Permit work;
207207 (7) preparation of the construction permit or combined
208208 license application to the nuclear commission;
209209 (8) advancing the expansion of current nuclear assets
210210 in the state;
211211 (9) develop manufacturing capacity and readiness; and
212212 (10) fuel fabrication activities essential to the fuel
213213 cycle supply.
214214 (c) The office may not provide a reimbursement grant under
215215 this section until the applicant has filed its Early Site Permit,
216216 construction permit, or combined license application with the
217217 nuclear commission.
218218 Sec. 483.303. TIER 2 ADVANCED NUCLEAR CONSTRUCTION PROGRAM.
219219 (a) The office shall provide a reimbursement grant for the costs
220220 associated with the construction of an advanced nuclear reactor
221221 project in this state.
222222 (b) The office may provide a reimbursement grant under this
223223 section only for:
224224 (1) a project whose construction permit or combined
225225 license application is under review by the nuclear commission; and
226226 (2) qualifying expenses associated with:
227227 (A) nuclear commission review of the
228228 construction permit or combined license application;
229229 (B) procurement of long-lead components; and
230230 (C) construction activities, including the
231231 manufacture, fabrication, quality assurance, placement, erection,
232232 installation, modification, inspection, or testing of an advanced
233233 nuclear reactor project.
234234 (c) The office may not provide a grant under this section of
235235 more than $200 million per project to be allocated as follows:
236236 (1) 30 percent to the grant recipient after the
237237 construction permit or combined license application is docketed at
238238 the nuclear commission; and
239239 (2) 70 percent to the grant recipient after the final
240240 investment decision for the project is made.
241241 (d) The office shall provide for the proceeds of each
242242 reimbursement grant awarded under this section to be distributed to
243243 the grant recipient on a rolling basis for qualifying expenses
244244 under this section, including eligible expenses that were incurred
245245 prior to the project's enrollment in the program. The total amount
246246 of disbursements per project may not exceed the maximum amount as
247247 limited by Subsection (c).
248248 SECTION 2. Chapter 301, Labor Code, is amended by adding
249249 Subchapter L to read as follows:
250250 SUBCHAPTER L. ADVANCED NUCLEAR WORKFORCE DEVELOPMENT PROGRAM
251251 Sec. 301.201. COOPERATION WITH TEXAS ADVANCED NUCLEAR
252252 ENERGY OFFICE AND TEXAS HIGHER EDUCATION COORDINATING BOARD. The
253253 commission shall collaborate with the Texas Advanced Nuclear Energy
254254 Office established in chapter 483, Government Code, and the Texas
255255 Higher Education Coordinating Board to administer an advanced
256256 nuclear workforce development program to address skill and labor
257257 gaps in the advanced nuclear energy industry in this state.
258258 SECTION 3. Subtitle B, Title 2, Utilities Code, is amended
259259 by adding Chapter 44 to read as follows:
260260 CHAPTER 44. TEXAS ADVANCED NUCLEAR COMPLETION FUND
261261 SUBCHAPTER A. TEXAS ADVANCED NUCLEAR ENERGY FUND
262262 Sec. 44.101. TIER 3 COMPLETION PAYMENT PROGRAM. (a) The
263263 commission shall provide a grant for the costs associated with the
264264 completion and operation of an advanced nuclear reactor project in
265265 this state.
266266 (b) The commission may provide a grant under this section on
267267 a per megawatt basis only for an advanced nuclear reactor project
268268 that is activated and operating.
269269 (c) Any monies earned on interest, unspent funds, or loan
270270 repayments from the Texas Energy Fund is deposited into the Sec.
271271 44.101 program.
272272 Sec. 44.102. RULES. The commission by rule shall establish
273273 procedures for:
274274 (1) the application for and award of a grant under this
275275 chapter;
276276 (2) the administration of the program; and
277277 (3) a tiered completion bonus program to incentivize
278278 advanced nuclear reactors that have demonstrated a prioritization
279279 and utilization of Texas based manufacturing, supply chain, fuel
280280 fabrication, and workforce.
281281 SECTION 4. This Act takes effect September 1, 2025.