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Amend CSHB 1386 by striking all below the enacting clause and
substitute the following:
SECTION 1. Subchapter E, Chapter 39, Utilities Code, is
amended by adding Section 39.206, Section 39.207, and Section
39.208 to read as follows:
Sec. 39.206. NUCLEAR-POWERED ELECTRIC GENERATION UNIT
DECOMMISSIONING COST PLAN. (a) For purposes of this section,
Section 39.207, and Section 39.208:
(1) "Decommissioning" includes decommissioning and
decontamination of a nuclear generating unit consistent with
federal Nuclear Regulatory Commission requirements.
(2) "Nuclear decommissioning trust" means an external
and irrevocable trust created for the purpose of funding
decommissioning obligations for a nuclear generating unit,
consistent with federal Nuclear Regulatory Commission
requirements.
(3) "Nuclear generating unit" means an electric
generating facility that uses nuclear energy to generate
electricity for sale and is licensed by the Nuclear Regulatory
Commission and was built in this state after January 1, 2007 but
before December 31, 2020.
(4) "Power generation company" means a power
generation company as that term is defined in Section 31.002(10),
that is licensed by the Nuclear Regulatory Commission to operate a
nuclear generating unit, and includes its parent and affiliates.
(b) A power generation company that intends to own or
operate a nuclear generating unit shall submit to the commission a
plan for funding a nuclear decommissioning trust, in accordance
with Sections 39.207 and 39.208. The plan shall detail the power
generation company's proposal for funding a nuclear
decommissioning trust, consistent with the requirements of the
Nuclear Regulatory Commission.
(c) The commission shall approve, modify, or reject a plan
within 180 days after the date of a filing under Subsection (b). An
order approved under this subsection shall be competitively neutral
and minimize the decommissioning risk to electric customers,
consistent with Sections 39.207 and 39.208.
Sec. 39.207. NUCLEAR-POWERED ELECTRIC GENERATION UNIT
DECOMMISSIONING TRUST AND RESPONSIBILITY. (a) A power generation
company shall have the responsibility to fund:
(1) the costs associated with funding the
decommissioning obligations for the nuclear generating unit; or
(2) the power generation company's portion of the
decommissioning costs for the nuclear generating unit in proportion
to the company's ownership interest in the nuclear generating unit
if the unit is owned by more than one person.
(3) The obligation to fund a nuclear decommissioning
trust fund is not dischargeable in bankruptcy.
(b) The power generation company shall establish a nuclear
decommissioning trust for a nuclear generating unit it owns or for
the proportionate share of a nuclear generating unit of which it
owns a part. The funding obligations for the trust must begin
before the nuclear generating unit commences its initial fuel load
and begins commercial operation to generate power for sale. The
terms of the trust must be consistent with trust terms and
conditions the federal Nuclear Regulatory Commission requires for
providing financial assurance for decommissioning.
(c) The commission by order shall establish for a nuclear
generating unit the amount of annual decommissioning funding
necessary to meet the decommissioning obligations for the nuclear
generating unit as established by the federal Nuclear Regulatory
Commission. The power generation company shall perform a study on
the cost of decommissioning to establish the decommissioning
obligations before the nuclear generating unit begins commercial
operation to generate power for sale. The study shall be performed
by the power generation company at least once in each three year
period during the unit's operating license period using the most
current reasonably available information on the cost of
decommissioning. The commission shall conduct a proceeding at
least once in each three-year period to review the study and other
current reasonably available information on the cost of
decommissioning and determine the reasonableness of the study.
(d) The power generation company shall file an annual report
to provide the status of the decommissioning trust fund and to
update the commission as to its ability to fund the decommissioning
trust fund. In determining the amount of the annual
decommissioning funding under this subsection, at least once in
each three-year period, the commission shall conduct a proceeding
to review the balance of each nuclear decommissioning trust and the
projected amount of annual decommissioning funding for the
associated nuclear generating unit. On the conclusion of the
review proceeding, the commission by order shall revise the amount
of annual funding for the nuclear generating unit in order to ensure
that the nuclear decommissioning trust fund is adequately funded.
(e) A power generation company shall remit the appropriate
amount of annual decommissioning funding to the nuclear
decommissioning trust created for its proportionate ownership
position in a nuclear generating unit in accordance with the
commission's funding order issued under Subsection (c) or (d). The
commission shall take appropriate actions to ensure proper funding
of the nuclear decommissioning trust, including possibly
terminating the power generation company's registration to
operate, if the company violates this subsection.
(f) A power generation company that owns a nuclear
generating unit is the funds administrator of the nuclear
decommissioning trust for the associated nuclear generating unit.
The company as funds administrator shall invest the trust funds in
accordance with guidelines established by commission rule and
consistent with the federal Nuclear Regulatory Commission
guidelines so that the decommissioning funds, plus the amounts
earned from investment of the funds, will be available at the time
of decommissioning. The commission shall adopt rules to define the
company's specific duties as funds administrator and requirements
regarding prudent management and investment of nuclear
decommissioning trust funds.
(g) The commission shall adopt rules necessary to ensure
that:
(1) a power generation company remits sufficient funds
to a nuclear decommissioning trust on an annual basis to cover the
cost of decommissioning a nuclear generating unit at the end of its
operating license period in accordance with applicable state and
federal laws and regulations;
(2) the periodic cost studies and reviews described in
Subsections (c) and (d) include all current reasonably available
information as determined necessary and appropriate by the
commission;
(3) all funds remitted to a nuclear decommissioning
trust are prudently managed and spent for their intended purpose;
(4) the funds remitted to a nuclear decommissioning
trust and the amounts earned from investing the funds, will be
available for, and restricted to the purpose of decommissioning of
the associated nuclear generating unit, including if the trust or
nuclear generating unit is transferred to another person.
Sec. 39.208. NUCLEAR-POWERED ELECTRIC GENERATION UNIT
DECOMMISSIONING TRUST FUNDING ASSURANCES. (a) A plan filed under
Section 39.206 may include the following mechanisms to allow a
power generation company to provide added assurances to satisfy the
Nuclear Regulatory Commission's nuclear decommissioning trust
requirements:
(1) prepayment by the power generation company of a
portion of the amount necessary to assure decommissioning;
(2) surety, insurance or other financial guarantees;
(3) parental or other corporate guarantees;
(4) assurances through contractual obligations;
(5) the accelerated payment of amounts required under
Section 39.207;
(6) periodic reporting of financial information
associated with a nuclear generating unit; and,
(7) a customer recourse mechanism whereby electric
customers provide assurance of decommissioning, pursuant to
Subsections (b) and (c).
(b) Prior to allowing a power generation company to utilize
the mechanism in Subsection (a)(7), the commission shall determine
the creditworthiness of the power generation company and may, as a
condition of granting a petition to utilize the mechanism in
Subsection (a)(7), require a percentage of the cost of
decommissioning a nuclear generating unit at the end of its
operating license period to be paid into a nuclear decommissioning
trust before the nuclear generating unit commences its initial fuel
load and begins commercial operation.
(c) In considering a plan seeking electric customer recourse
under Subsection (a)(7), the commission shall:
(1) require electric customers to be at risk for
nuclear decommissioning expense to the minimum extent necessary in
order to allow for the development of a nuclear generating unit; and
(2) adopt a payment period for a power generation
company subject to this subsection that is designed to achieve full
funding of the decommissioning trust in a reasonable and
expeditious manner, as necessary to allow for the development of a
nuclear generating unit.
(d) The commission shall determine the manner in which any
shortfall in the actual cost of decommissioning a nuclear
generating unit shall be recovered. In making the determination,
the commission shall look first to a power generation company. To
the extent that no recourse exists to a power generation company or
any other entity subject to this section, electric customers may be
responsible for funding any shortfall in the cost of
decommissioning the nuclear generating unit if the nuclear
generating unit is being decommissioned and the balance of the
nuclear decommissioning trust is not sufficient to fund the cost of
decommissioning.
(e) If electric customers become responsible for the costs
of decommissioning a nuclear generating unit and incur costs under
this section and the nuclear generating unit is operational, as a
condition of operating the generating unit, the power generation
company or any new owner or operator shall repay the costs the
electric customers incurred in the manner determined by the
commission. The commission may authorize the repayment to occur
over a period established by the commission.
(f) The commission shall, in conjunction with the Nuclear
Regulatory Commission, investigate the development of a mechanism
whereby the State of Texas could ensure that funds for
decommissioning will be obtained when necessary in the same manner
as if the State of Texas were the licensee under federal law. The
commission shall file legislative recommendations regarding any
changes in law that may be necessary to carry out the purposes of
this subsection prior to January 15, 2009, which may be combined
with the report required by Section 31.003.
SECTION 2. This Act takes effect September 1, 2007.