Relating to funding mechanisms within the Office of the Governor and Texas Public Utility Commission to support the deployment of advanced nuclear reactors in this state.
relating to funding mechanisms within the Office of the Governor
and Texas Public Utility Commission to support the deployment of
advanced nuclear reactors in this state.
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 DEPLOYMENT ACT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 483.001. DEFININTIONS. IN THIS CHAPTER:
(1) “Advanced nuclear reactor” means a range of proven
and innovative nuclear reactor technologies across two generations
(Gen III+ and Gen IV) and includes large light water reactors, small
modular reactors, microreactors, and nuclear cogeneration.
(2) “Advanced nuclear reactor project” means an
electric generation facility relying on an advanced nuclear reactor
to generate power.
(3) “Applicant” means a person or an entity applying
for a license, permit, or other form of nuclear commission
permission or approval under 10 C.F.R Parts 50, 52, 53, 54, or 55.
(4) “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.
(5) “Commission” means the Public Utility Commission
of Texas.
(6) “Construction permit” means a permit issued by the
nuclear commission for the construction of a nuclear production or
utilization facility.
(7) “Director” means the director of the Texas
Advanced Nuclear Deployment Office of the Governor.
(8) “Final investment decision” means the final
decision of a company to invest in a nuclear project.
(9) “Nuclear commission” means the U.S. Nuclear
Regulatory Commission or its duly authorized representatives.
(10) “Operating license” means a license issued by the
nuclear commission that allows a person to operate a nuclear power
plant or reactor.
(11) “Person” means any individual, corporation,
partnership, firm, association, trust, estate, public or private
institution, group, government agency other than the nuclear
commission or the U.S. Department of Energy, except that the
Department shall be considered a person to the extent that its
facilities are subject to the licensing and related regulatory
authority of the commission pursuant to section 202 of the Energy
Reorganization Act of 1974, any state or any political subdivision
of, or any political entity within a State, any foreign government
or nation or any political subdivision of any such government or
nation, or other entity; and any legal successor, representative,
agent, or agency of the foregoing.
(11) “Program” means the Texas Advanced Nuclear Energy
Program under the Texas energy fund established by Section 49-q,
Article III, Texas Constitution.
Sec. 483.002. PURPOSE. (a) The purpose of this Act is to
promote the development of advanced nuclear reactor projects for
dispatchable electric generation while creating high-wage advanced
manufacturing jobs in this state. The Act will spearhead the
transition to a balanced energy future by advancing innovative
nuclear generation technologies while delivering safe, reliable,
and clean energy solutions that address the state’s growing demand.
The governor and legislature are committed to enhancing the state’s
energy security and fostering economic growth, ensuring that future
development is safe and reliable.
Sec. 483.101. ADMINISTRATIVE ATTACHMENT. (a) The office
is administratively attached to the office of the governor, and the
office of the governor shall provide administrative support to the
office as provided by this section. The equal employment
opportunity officer and the internal auditor of the office of the
governor shall serve the same functions for the office as they serve
for the office of the governor.
Sec. 483.102. PROGRAM ESTABLISHMENT; ELIGIBILITY. (a) The
commission shall establish a separate account for the program under
the Texas energy fund authorized by Section 49-q, Article III,
Texas Constitution.
(b) The commission may use money in the account without
further appropriation to provide grants under this subchapter to a
person for the development of an advanced nuclear reactor projects
in this state.
Sec. 483.103. USE OF PROGRAM FUNDS. (a) Money in the
program’s account may be used only to administer grants established
under this subchapter.
Sec. 483.104. EXPIRATION. This chapter expires September
1, 2040.
SUBCHAPTER B. TEXAS ADVANCED NUCLEAR DEPLOYMENT OFFICE
Sec. 483.201. OFFICE. (a) The Texas Advanced Nuclear
Deployment Office is an office within the office of the governor.
(b) The purposes of the office are to:
(1) collaborate with interested stakeholders and
state and local leaders to craft a statewide strategic advanced
nuclear public outreach program.
(2) identify barriers to financial viability of
nuclear energy generation, regulatory and licensing complexities
that increase risk to developers of nuclear energy and provide
recommendations to the governor and legislature regarding advanced
nuclear energy and technologies;
(3) provide strategic leadership within the advanced
nuclear reactor system in this state;
(4) leverage the expertise and capacity of
institutions of higher education, industry, and regulatory
stakeholders to develop a comprehensive strategic plan to ensure
the development of advanced nuclear energy and technologies in this
state; and
(5) support the development of an advanced nuclear
energy supply chain in this state.
Sec. 483.202. DIRECTOR; DUTIES. (a) The governor shall
appoint a director of the office who serves at the pleasure of the
governor.
(b) The director must have demonstrated experience in the
areas of advanced nuclear energy and executive and organizational
ability.
(c) The director shall:
(1) manage the affairs of the office;
(2) develop a plan to engage with stakeholders to
gather input and solicit feedback on the development of rules
promulgated by the commission related to the fund and fund
programs;
(3) administer the fund provided by the legislature
and fund programs consistent with this chapter;
(4) establish the appropriate standards to ensure the
proper use of funds authorized under this chapter;
(5) facilitate the location, expansion, and retention
of advanced nuclear reactor projects in this state;
(6) deliver to the governor and Legislative Budget
Board a strategic plan to further goals, purposes, and objectives
of this chapter on or before December 1 of each even-numbered year;
and
(7) employ a nuclear permitting coordinator with a
demonstrated familiarity with the permitting and regulatory
process in this state and a developed network of contacts within the
government of this state for the purposes of assisting businesses
throughout the permitting and regulatory process.
(d) The nuclear permitting coordinator shall:
(1) act as a single point of contact for stakeholders
during the nuclear energy permitting process;
(2) identify active or likely siting opportunities and
required permits and approvals for nuclear energy sites and key
personnel;
(3) provide tailored assistance to help industry
navigate relevant local, state, and federal regulations and
regulatory entities for nuclear facilities; and
(4) share information regarding this state’s economic
incentive programs for advanced nuclear reactor projects.
(e) The director may:
(1) hire staff as necessary to implement the duties of
the office under this chapter; and
(2) convene an advisory committee in the manner
provided by Chapter 2110, Government Code.
Sec. 483.203. APPLICATION EVALUATION. (a) 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; and
(4) evidence of creditworthiness and ability to repay
the grant subject to Subsection (b), including the grant
applicant’s total assets, total liabilities, net worth, and credit
ratings issued by major credit rating agencies.
(b) A grant agreement under Sections 483.302 or 483.303 may
include a provision stating that the grant recipient shall repay
the grant funds received if the grant recipient fails to obtain an
operating license for the advanced nuclear reactor project that was
financed using those funds.
Sec. 483.204. 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.
Sec. 483.205. EXPIRATION. This chapter expires September
1, 2040.
Sec. 483.206. RULES. The office by rule shall establish
procedures for:
(1) the application for and award of a grant under this
chapter, including the required documentation for qualifying
expenses under Sections 483.303 and 483.304; and
(2) the administration of the programs.
SUBCHAPTER C. FUND PROGRAMS
Sec. 483.301. PROGRAM ESTABLISHMENT; ELIGIBILITY. (a) The
office shall establish and the director shall administer the
programs established under this subchapter.
(b) The office may use money in the fund without further
appropriation to provide grants under this Subchapter to a person
for the development of an advanced nuclear reactor project in this
state.
Sec. 483.302. TIER 1 PROJECT DEVELOPMENT AND SUPPLY CHAIN
PROGRAM. (a) The office shall provide a reimbursement grant for
the costs associated with initial development of an advanced
nuclear reactor project in this state.
(b) The office may provide a reimbursement grant under this
section only for qualifying expenses associated with:
(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 borne 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) advancing the expansion of current nuclear assets
in the state;
(9) develop manufacturing capacity and readiness; and
(10) fuel fabrication activities essential to the fuel
cycle supply.
(c) The office may not provide a reimbursement grant under
this section until the applicant has filed its Early Site Permit,
construction permit, or combined license application with the
nuclear commission.
Sec. 483.303. TIER 2 ADVANCED NUCLEAR CONSTRUCTION PROGRAM.
(a) The office shall provide a reimbursement grant for the costs
associated with the construction of an advanced nuclear reactor
project in this state.
(b) The office may provide a reimbursement grant under this
section only for:
(1) a project whose construction permit or combined
license application is under review by the nuclear commission; and
(2) qualifying expenses associated with:
(A) nuclear commission review of the
construction permit or combined license application;
(B) procurement of long-lead components; and
(C) construction activities, including the
manufacture, fabrication, quality assurance, placement, erection,
installation, modification, inspection, or testing of an advanced
nuclear reactor project.
(c) The office may not provide a grant under this section of
more than $200 million per project to be allocated as follows:
(1) 30 percent to the grant recipient after the
construction permit or combined license application is docketed at
the nuclear commission; and
(2) 70 percent to the grant recipient after the final
investment decision for the project is made.
(d) The office shall provide for the proceeds of each
reimbursement grant awarded under this section to be distributed to
the grant recipient on a rolling basis for qualifying expenses
under this section, including eligible expenses that were incurred
prior to the project’s enrollment in the program. The total amount
of disbursements per project may not exceed the maximum amount as
limited by Subsection (c).
SECTION 2. Chapter 301, Labor Code, is amended by adding
Subchapter L to read as follows:
SUBCHAPTER L. ADVANCED NUCLEAR WORKFORCE DEVELOPMENT PROGRAM
Sec. 301.201. COOPERATION WITH TEXAS ADVANCED NUCLEAR
ENERGY OFFICE AND TEXAS HIGHER EDUCATION COORDINATING BOARD. The
commission shall collaborate with the Texas Advanced Nuclear Energy
Office established in chapter 483, Government Code, and the Texas
Higher Education Coordinating Board to administer an advanced
nuclear workforce development program to address skill and labor
gaps in the advanced nuclear energy industry in this state.
SECTION 3. Subtitle B, Title 2, Utilities Code, is amended
by adding Chapter 44 to read as follows:
CHAPTER 44. TEXAS ADVANCED NUCLEAR COMPLETION FUND
SUBCHAPTER A. TEXAS ADVANCED NUCLEAR ENERGY FUND
Sec. 44.101. TIER 3 COMPLETION PAYMENT PROGRAM. (a) The
commission shall provide a grant for the costs associated with the
completion and operation of an advanced nuclear reactor project in
this state.
(b) The commission may provide a grant under this section on
a per megawatt basis only for an advanced nuclear reactor project
that is activated and operating.
(c) Any monies earned on interest, unspent funds, or loan
repayments from the Texas Energy Fund is deposited into the Sec.
44.101 program.
Sec. 44.102. RULES. The commission by rule shall establish
procedures for:
(1) the application for and award of a grant under this
chapter;
(2) the administration of the program; and
(3) a tiered completion bonus program to incentivize
advanced nuclear reactors that have demonstrated a prioritization
and utilization of Texas based manufacturing, supply chain, fuel
fabrication, and workforce.
SECTION 4. This Act takes effect September 1, 2025.
