Honorable Ken King, Chair, House Committee on State Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB14 by Harris (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.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB14, As Introduced: a negative impact of ($4,598,957) through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($2,364,421)
2027
($2,234,536)
2028
($2,269,316)
2029
($2,234,536)
2030
($2,269,316)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from Texas Energy Fund 176
Probable Revenue Gain/(Loss) from Texas Advanced Nuclear Energy Fund
Probable Savings/(Cost) from Texas Advanced Nuclear Energy Fund
2026
($2,364,421)
($132,922,000)
$132,922,000
($3,000,000)
2027
($2,234,536)
($78,705,000)
$78,705,000
($3,000,000)
2028
($2,269,316)
($78,705,000)
$78,705,000
($3,000,000)
2029
($2,234,536)
($78,705,000)
$78,705,000
($3,000,000)
2030
($2,269,316)
($78,705,000)
$78,705,000
($3,000,000)
Fiscal Year
Change in Number of State Employees from FY 2025
2026
14.0
2027
14.0
2028
14.0
2029
14.0
2030
14.0
Fiscal Analysis
The bill would amend the Government Code to create the Texas Advanced Nuclear Energy Program (Program) and establish the Texas Advanced Nuclear Deployment Office (TANDO), administratively attached to the OOG, in order to advance nuclear generation technologies and energy solutions to address the state's growing energy demand. The director of TANDO would be appointed by the Governor. OOG would provide administrative support to the TANDO.
The bill would direct the Public Utility Commission of Texas (PUC) to establish an account for the Program under the Texas Energy Fund 0176. The PUC would use money in the Program account without further appropriation to provide grants for the development of advanced nuclear reactor projects. Money in the Program account would only be used to administer certain grants.
The Office and the Program would expire September 1, 2040.
The bill would amend the Labor Code to create the Advanced Nuclear Workforce Development Program and direct PUC to collaborate with the TANDO and the Higher Education Coordinating Board (THECB) to administer an advanced nuclear workforce development program.
The bill would amend the Utilities Code to create the Texas Advanced Nuclear Energy Fund and direct PUC to provide certain grants and direct any interest earned, unspent funds, or loan repayment to be deposited to the Program account.
Methodology
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 2026-27 biennium for the OOG associated with the TANDO is anticipated to be $3,376,353.
The PUC anticipates need of 4 additional FTEs to implement the provisions of the bill: 1 Project Manager III-V, 1 Grant Specialist III-V, 1 Management Analyst III-IV, and 1 Program Specialist IV-V. 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 $1,201,004.
Additionally, the PUC anticipates a cost of $3,000,000 per year to the Texas Advanced 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 "fund" refers to the Texas Advanced Nuclear Energy Fund.
The Comptroller of Public Accounts (CPA) assumes the purposes of the bill would be consistent with the uses of the Texas Energy Fund in the Texas Constitution, Article III, Section 49-q(b). The CPA indicates a constitutional amendment would be required in order to accomplish the purposes of the bill. The CPA assumes the amount of interest earned on the balance of the Texas Energy Fund, as estimated in the 2026-27 Biennial Revenue Estimate. The repayment of loans is not anticipated to begin until after 2030, and it is assumed there are no unspent funds in the Texas Energy Fund.
This analysis assumes any cost to the THECB 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 recreate 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.
Technology
PUC anticipates information technology expenditures of $10,800 per year.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts, 473 Public Utility Commission of Texas, 781 Higher Education Coordinating Board