Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($2,103,592)
2027	($1,973,707)
2028	($2,008,487)
2029	($1,973,707)
2030	($2,008,487)

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Probable Revenue Gain/(Loss) from Texas Energy Fund 176	Probable Revenue Gain/(Loss) from New General Revenue Dedicated Texas Advanced Nuclear Development Fund	Probable Savings/(Cost) from New General Revenue Dedicated Texas Advanced Nuclear Development Fund
2026	($2,103,592)	($132,922,000)	$132,922,000	($3,000,000)
2027	($1,973,707)	($78,705,000)	$78,705,000	($3,000,000)
2028	($2,008,487)	($78,705,000)	$78,705,000	($3,000,000)
2029	($1,973,707)	($78,705,000)	$78,705,000	($3,000,000)
2030	($2,008,487)	($78,705,000)	$78,705,000	($3,000,000)

Fiscal Year	Change in Number of State Employees from FY 2025
2026	12.0
2027	12.0
2028	12.0
2029	12.0
2030	12.0

The bill would amend the Government Code by adding Chapter 483 to create the Texas Advanced Nuclear Energy Office (Office) within the Office of the Governor (OOG) in order to promote and develop advanced nuclear reactor projects. The bill would direct the Office to conduct a study of the necessity and feasibility of taking on regulatory functions for nuclear energy facilities. The report would be submitted to the Legislature not later than December 1, 2026.

The Governor would appoint a director of the Office to advise the Public Utility Commission (PUC) on grants, administer a grant program, establish standards for proper use of funding, facilitate advanced nuclear reactor projects, and hire necessary staff. The director may employ a nuclear permitting coordinator according to certain criteria.

The bill would create the Texas Advanced Nuclear Development Fund (Fund) as a dedicated account in the General Revenue Fund. The Fund would be created for the purpose of providing reimbursement grants to businesses, nonprofit organizations, and governmental entities, including institutions of higher education; and provide for administration costs associated with the Office. Under the provisions of the bill, the new fund would be composed of gifts, grants, or donations to the fund; and money from any other source designated by the Legislature.

The bill would establish certain requirements for reimbursement grant programs for project Development and Supply Chain, and Advanced Nuclear Construction. The Office would evaluate an application for a grant according to certain criteria.

The Office, the Fund, and the reimbursement grant programs would expire August 31, 2040.

The bill would amend the Labor Code to create the Advanced Nuclear Energy Workforce Development Program and direct the Texas Workforce Commission (TWC) to collaborate with the Office and the Higher Education Coordinating Board (THECB) to establish the workforce program according to certain criteria. The bill would direct the TWC to submit a report to each standing committee of the Legislature not later than September 1 of each year.

The bill would amend the Utilities Code to create a Completion Grant program allowing the PUC to provide a grant for costs associated with the completion and operation of an advanced nuclear reactor project. The PUC would establish by rule certain aspects of the program. The bill would direct the PUC to establish the Nuclear Grant Program Account (Account) as a separate account within the Texas Energy Fund to provide for the completion grant program. The bill would direct PUC to transfer to the Account returns received after September 1, 2025, from the investment of money in the Texas Energy Fund; unspent money remaining in the Texas Energy Fund on May 31, 2029; and money repaid to the Texas Energy Fund from loan recipients.

It is anticipated that the OOG would need 10 additional FTEs in order to support the TANDO: 1 Director VI, 1 License and Permit Specialist V, 0.5 Compliance Analyst IV, 1 Financial Analyst IV, 1 Research Specialist IV, 1 Grant Specialist III, 1 Attorney IV, 1 Information Technology Support Specialist V, 0.5 Systems Analyst I, 0.5 Accountant V, 0.5 Human Resource Specialist III, and 1 Project Manager IV. The total estimate for FTE-related costs, training, travel, and various operating costs in the 202627 biennium for the OOG associated with the TANDO is anticipated to be $3,376,353.

The PUC anticipates need of 2 additional FTEs (1 Project Manager III-V and 1 Management Analyst III-IV). The total estimate for FTE-related costs, travel, and various operating costs in the 2026-27 biennium for the PUC associated with the bill is anticipated to be $690,147.

Additionally, the PUC anticipated a cost of $3,000,000 per year to the Texas Nuclear Energy Fund for contracting costs to administer the fund. This cost would be in addition to the existing contract for the Texas Energy Fund.

This analysis assumes any cost to the THECB or the TWC would be absorbed within existing resources.

Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recrate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 28, 2025

TO:	Honorable Ken King, Chair, House Committee on State Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB14 by Harris (relating to support for the development of the nuclear energy industry.), Committee Report 1st House, Substituted