Texas Moves Forward with Taxpayer-Funded Nuclear Power Incentive Fund
AUSTIN — The state is on track to create a taxpayer-funded nuclear power incentive fund after a critical vote in the Texas Senate on Tuesday.
The Senate passed a legislative proposal that would dedicate an estimated $350 million in public money to pay for the development of nuclear power in Texas. Roughly 80% of the fund’s $350 million would be dedicated toward reimbursing construction costs for functional nuclear reactors. The remainder would be used for research and development.
Background and Funding
That’s far below the $2 billion first suggested for the fund when House Bill 14 was filed by Rep. Cody Harris, R-Palestine, and even further below what some state officials had hoped would be allocated to the nuclear fund when it was first conceived of late last year.
Despite the reduction, industry insiders see the bill’s advancement in the Legislature as a clear signal Texas’ political leadership sees a future in nuclear power. That segment of the power industry has languished in recent years in cost overruns and a cumbersome federal approval process.
Political Support and National Context
“Texas is on the precipice of passing landmark legislation that will put Texas at the center of the nuclear renaissance,” said Reed Clay, president of the Texas Nuclear Alliance.
In recent years, however, nuclear power has seen a rapid increase in political support. In Texas, Republicans support nuclear power for its ability to offer power at the flip of the switch. The power source also appeals to Democrats’ environmental sensibilities for its lack of climate change-inducing greenhouse gas.
Last week, President Donald Trump issued four executive orders to speed up the regulatory process and open up federal lands for nuclear power projects with a goal of quadrupling the capacity of the country’s nuclear fleet.
Legislative Process and Oversight
“The idea is Texas should lead in this endeavor,” said Sen. Charles Schwertner, R-Georgetown, the sponsor of the proposal. “There has been a change of leadership on a national basis with a reemphasis on nuclear technology.”
Before the bill becomes law, the House must agree with any changes made in the Senate. It would then head to Gov. Greg Abbott, who has previously shown support for the grant program.
The governor’s office would oversee the nuclear energy fund and the grant program. His staff also would lead an effort to speed up the permitting process by hiring a coordinator to help qualifying programs navigate federal regulations.
Focus on Small, Modular Reactors
It is the second fund created by the Texas Legislature designed to encourage the construction of power plants. In 2023, lawmakers created the $5 billion Texas Energy Fund in hopes of bringing more natural gas power plants to Texas.
Schwertner said he expects the nuclear office to be up and running by the end of the year. However, working nuclear reactors would likely not power on until 2030 or later.
The fund would focus on small, modular nuclear reactors, an emerging technology that has seen recent developments in Texas, including the first federally approved research reactor in more than 40 years at Abilene Christian University.
Caution and Vigilance
Sen. José Menéndez, D-San Antonio, said during the debate that using tax money to incentivize those types of reactors was preferable to more conventional large-scale reactors that have seen major cost overruns in recent years. Texas has not built a new large reactor since the opening of the second Comanche Peak reactor in 1993.
“I just want to make sure that we are just as vigilant and as cautious and as careful with the taxpayers’ money as being a steward in their investment as we tend to be with other sources of generation,” Menéndez said.
Conclusion
The creation of a taxpayer-funded nuclear power incentive fund in Texas marks a significant step forward for the state’s energy landscape. With the Senate’s passage of the legislative proposal, the state is poised to become a leader in the nuclear renaissance. As the bill moves forward, it is essential to ensure that the funds are used efficiently and effectively to support the development of safe and reliable nuclear power.
Frequently Asked Questions
Q: What is the purpose of the nuclear power incentive fund?
A: The fund aims to support the development of nuclear power in Texas by reimbursing construction costs for functional nuclear reactors and funding research and development.
Q: How much money is allocated for the fund?
A: The fund is estimated to be $350 million, with 80% dedicated to reimbursing construction costs and the remainder for research and development.
Q: What type of reactors will the fund focus on?
A: The fund will focus on small, modular nuclear reactors, an emerging technology that has seen recent developments in Texas.
Q: When can we expect working nuclear reactors to be operational?
A: Working nuclear reactors are likely to power on by 2030 or later.
