Parker ‘Advanced Nuclear’ Bill Also Funds Existing Plants

The text as introduced · 2,092 words

89R17461 TYPED

By: Parker
S.B. No. 2060

A BILL TO BE ENTITLED

AN ACT

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.