Bill Text: TX HB14 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: Relating to support for the development of the nuclear energy industry.

Sponsorship: Moderate Partisan Bill (Republican 37-6)

Status: (Passed) 2025-06-20 - Effective on 9/1/25 [HB14 Detail]

Download: Texas-2025-HB14-Enrolled.html

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H.B. No. 14

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 project" means an electric
generation facility that relies on an advanced nuclear reactor to
generate power, steam, or heat, a nuclear fuel cycle facility that
supplies advanced nuclear reactors, or associated technologies
supporting the advanced nuclear energy industry.
(2) "Advanced nuclear reactor" means a range of
nuclear reactor technologies determined by the regulatory
commission to be either of generation III+ or generation IV,
including large light water reactors, small modular reactors,
microreactors, and nuclear cogeneration.
(3) "Construction permit" means a permit issued by the
regulatory commission for the construction of:
(A) a nuclear production or utilization
facility; or
(B) a research or test reactor that contributes
to the future commercialization of that research or test reactor
technology.
(4) "Director" means the director of the office.
(5) "License" means a license issued by the regulatory
commission that authorizes the license holder to construct and
operate a nuclear power facility, such as a nuclear plant at a
specific site, with specified conditions.
(6) "Office" means the Texas Advanced Nuclear Energy
Office established under Subchapter B.
(7) "Regulatory commission" means the United States
Nuclear Regulatory Commission.
(8) "Utility commission" means the Public Utility
Commission of Texas.
Sec. 483.002. SUNSET PROVISION. The office is subject to
Chapter 325, Government Code (Texas Sunset Act). Unless continued
in existence as provided by that chapter, the office is abolished
and this chapter expires September 1, 2035.
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
reactors 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) leverage the expertise and capacity of
institutions of higher education, the nuclear energy industry, the
industrial manufacturing sector, and regulatory stakeholders to
develop a comprehensive strategic plan to ensure the development of
advanced nuclear energy and associated technologies in this state;
and
(8) support the development of an advanced nuclear
energy supply chain and associated technologies in this state.
(c) The office may:
(1) subject to Subsection (d), 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 may not accept a gift, grant, or loan from or
contract with an applicant for or a beneficiary of a grant provided
under Subchapter C.
(e) The office may not require an advanced nuclear project
to be located in a specific location.
(f) The office may adopt and enforce rules necessary to
carry out this chapter.
(g) The office and the utility commission, with the
assistance of any other state entity the office or the utility
commission determines is necessary, shall conduct a study to
identify necessary state regulatory functions related to nuclear
energy generation facilities in this state. The office and the
utility commission 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
employ 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 may not have any direct or indirect
interests that substantially conflict with the director's duties.
(d) The director shall:
(1) manage the affairs of the office;
(2) administer programs established by this chapter;
and
(3) establish appropriate milestones and standards to
ensure proper use of money under this chapter.
(e) 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,
the legislature, and the 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 permitting and regulatory
process.
(b) A nuclear permitting coordinator must have a
demonstrated familiarity with the permitting and regulatory
process in this state.
(c) The nuclear permitting coordinator shall:
(1) act as a single point of contact for stakeholders
during the nuclear energy permitting and regulatory process;
(2) identify active or likely siting opportunities and
required permits and approvals for nuclear energy generation sites
and key personnel; and
(3) provide guidance for regulated persons navigating
local, state, and federal regulations for nuclear energy generation
facilities.
(d) The nuclear permitting coordinator shall make any
assistance provided under this section equally available to all
businesses engaged in the nuclear energy permitting and regulatory
process.
(e) The nuclear permitting coordinator shall document all
activities carried out in the provision of assistance under this
section and make that information available to the public on
request.
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) subject to Section 483.101(d), 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 eligible
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.
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 provide a grant under this subchapter
only to reimburse expenses paid by a recipient using the
recipient's own funds. An applicant for a grant under this
subchapter may have received financial assistance or incentives
from a local, state, or federal source, but the office may not
provide a grant under this subchapter to reimburse expenses paid by
a recipient or the recipient's project partner using financial
assistance or incentives from the local, state, or federal source.
An applicant shall provide the office with detailed information
regarding any financial assistance or incentives requested or
received for the project for which it is requesting grant funds.
(c) An applicant that has received state-appropriated money
for an advanced nuclear reactor is not eligible to receive a grant
under Section 483.204.
(d) The office shall submit to the lieutenant governor and
the speaker of the house of representatives a notice of each grant
the office proposes to approve. The office may not approve the grant
if both those officers submit a written communication to the office
disapproving the grant on or before the 30th day after the date the
office submits the notice of the proposed grant to those officers.
The lieutenant governor or speaker of the house of representatives
may extend the review deadline for an additional 14 days by
submitting a written notice to that effect to the office before the
expiration of the initial review period.
(e) 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 and milestones 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 from that grant if the recipient fails to reach the
specified benchmarks.
(f) The office may not during a state fiscal biennium award
out of money appropriated for grants under this subchapter a total
amount greater than:
(1) for grants provided under Section 483.203, 20
percent of the appropriated money; and
(2) for grants provided under Section 483.204, 80
percent of the appropriated money.
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 or required for initial
development of an advanced nuclear 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;
(5) site and environmental characterization;
(6) regulatory commission early site permit work;
(7) preparation of the construction permit or license
application to the regulatory commission;
(8) developing manufacturing capacity and readiness;
(9) fuel processing, manufacturing, and fabrication
activities essential to the fuel cycle supply;
(10) preparation of local, state, and nonregulatory
commission federal permits; and
(11) regulatory commission licensing fees.
(c) To be eligible for a reimbursement grant under this
section, an applicant must provide with an application proof of
incurred expenses described by Subsection (b).
(d) 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) $12.5 million.
(e) 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
project in this state.
(b) Expenses that qualify for reimbursement under this
section are limited to expenses associated with:
(1) the regulatory commission's review of the
construction permit or license application;
(2) procurement and development 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 project.
(c) To be eligible for a reimbursement grant under this
section, an applicant must provide with an application proof of
incurred expenses described by Subsection (b).
(d) 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) $120 million.
(e) The office by rule shall establish procedures for the
application for and provision of a grant under this section.
(f) The office may not provide a reimbursement grant for a
project under this section until the regulatory commission has
docketed a construction permit or license application for the
project.
(g) The office by rule shall establish a process to
distribute the proceeds of each grant awarded under this section to
the grant recipient on a rolling basis for qualifying expenses. The
process must include milestones associated with:
(1) the regulatory commission's permitting process;
and
(2) the recipient's financial investment decisions
relating to the project.
Sec. 483.205. COMPLETION BONUS GRANT PROGRAM FOR
INTERCONNECTED REACTORS. (a) The office may provide a grant under
this subchapter for the costs associated with the completion of an
operational advanced nuclear reactor in this state that is
interconnected with the ERCOT power grid.
(b) The office, in consultation with the utility
commission, by rule shall establish the amount of a grant the office
will provide under this section on a per megawatt basis according to
the generation capacity of the advanced nuclear reactor.
(c) The office, in consultation with the utility
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.
Sec. 483.206. GRANT APPLICATION EVALUATION. The office
shall evaluate each application for a grant under this subchapter
based on:
(1) the grant applicant's:
(A) quality of services and management;
(B) efficiency of operations;
(C) access to resources essential for operating
the project for which the grant is requested, such as land, water,
and reliable infrastructure, as applicable;
(D) application for or docketing of a permit or
license with the regulatory commission; and
(E) ability to repay the grant if project
benchmarks are not met; and
(2) the project's potential benefit to this state.
Sec. 483.207. 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. The office of the governor is required to
implement the changes in law made by 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 3. This Act takes effect September 1, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 14 was passed by the House on April
23, 2025, by the following vote: Yeas 134, Nays 9, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 14 on May 30, 2025, by the following vote: Yeas 118, Nays 6, 2
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 14 was passed by the Senate, with
amendments, on May 28, 2025, by the following vote: Yeas 26, Nays
5.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor