HB 14

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