Relating to support for the development of the nuclear energy industry, the official text

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