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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB14

Regular Session

Relating to support for the development of the nuclear energy industry.

Government Affairs & Regulatory Compliance Analysis

HB14: Government Affairs Overview

HB14 establishes the Texas Advanced Nuclear Energy Office (TANEO) and authorizes three distinct grant mechanisms (Development, Construction, and Completion Bonuses) for the advanced nuclear industry. While the law authorizes up to $120 million per project for construction, these funds operate on a strict reimbursement basis with mandatory clawback provisions, and actual liquidity is contingent upon future legislative appropriation and potential constitutional amendments.

Rep. Cody Harris·House Bill·Regular Session

Moderate
Low Cost
Effective:2025-06-20
Enforcing Agencies

Public Utility Commission of Texas (Consultative role for Completion Bonus) • Texas Advanced Nuclear Energy Office (Office of the Governor)

Business Impact

Who HB14 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.

⚡

Energy

Affected business types:

  • Power generators
  • Electric utilities
  • Renewable energy developers
  • Battery storage operators
View all energy legislation

Key Operational Considerations

  • 1Government Affairs Liaison: Assign a specific point of contact to interface with the newly created "Nuclear Permitting Coordinator" in the Governor’s Office.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB14
Relating to support for the development of the nuclear energy industry.
Moderate Urgency
Passed with Opposition
House Vote134 - 9
YEA
94% in favor143 voting
Senate Vote26 - 5
YEA
NAY
84% in favor31 voting
14
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Public Utility Commission of TexasTexas Advanced Nuclear Energy Of...
Primary Author: Rep. Cody Harris
89th Texas Legislature
jdkey.com
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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).
  • Compliance Deadline: Q1/Q2 2026 (Estimated). While the law is effective immediately, you cannot apply for funds until TANEO is staffed and rules are promulgated. Do not budget for these funds in FY2025.
  • Agency Rulemaking: TANEO must establish application procedures and benchmark definitions prior to distributing funds.
  • *Regulatory Gray Zone:* Between June 2025 and the finalization of rules, there is no guarantee that expenses incurred will be eligible for retroactive reimbursement.

Immediate Action Plan

  • 1. Segregate Expenses: Immediately implement accounting codes to track nuclear development costs separately from general operating expenses to ensure audit-readiness.
  • 2. Audit "Double-Dipping": Review all current DOE grants and tax credits. Map exactly which expenses are covered by federal funds to identify the "gap" that state funds can legally cover.
  • 3. Update Vendor Contracts: Insert indemnity clauses in EPC and supply chain contracts to cover the risk of state grant clawbacks due to vendor non-performance.
  • 4. Monitor the Texas Register: Assign counsel to watch for TANEO proposed rules, specifically regarding the definition of "incurred expenses" and "benchmarks."

Operational Changes Required

Contracts

Master Services Agreements (MSAs) must be amended immediately.

  • Flow-Down Liability: The statute mandates clawbacks if project benchmarks are missed. You must amend vendor and EPC contracts to mirror this liability. If a contractor’s delay causes a state clawback, your contract must hold them financially liable for the lost grant funds.
  • Grant Agreement Review: You will be required to sign a binding agreement with TANEO. Legal counsel must review the "benchmarks" defined in this agreement to ensure they are tied to *process steps* (e.g., concrete pouring) rather than *regulatory outcomes* (e.g., NRC approval), which are outside your control.

Hiring/Training

  • Government Affairs Liaison: Assign a specific point of contact to interface with the newly created "Nuclear Permitting Coordinator" in the Governor’s Office.
  • Financial Training: Finance teams must be trained on Grant Segregation. Staff must understand that they cannot commingle state grant requests with expenses already covered by federal (DOE) incentives.

Reporting & Record-Keeping

  • Segregated Ledgers: You must establish separate accounting codes for "State Grant Eligible" expenses. The burden of proof is on you to demonstrate that a specific dollar claimed for reimbursement was not covered by another source.
  • Incentive Disclosure: Prepare a comprehensive disclosure of all federal, local, and other state financial assistance received or requested. This is a mandatory filing requirement for the application.

Fees & Costs

  • Cash Flow Impact: This is a reimbursement program, not an upfront grant. You must secure bridge financing or internal capital to fund operations upfront.
  • Clawback Risk: The grant funds must be treated as a contingent liability on your balance sheet until the project is fully operational and all benchmarks are certified complete.

Strategic Ambiguities & Considerations

  • The "Constitutional" Funding Gap: The Fiscal Note indicates that utilizing the "Texas Energy Fund" for this program may require a Constitutional Amendment. If this amendment is required, it will likely go to voters in November 2025. Until then, the funding is authorized but potentially inaccessible.
  • Definition of "Incurred Expenses": The statute does not explicitly state whether costs incurred *between* the effective date (June 2025) and the grant agreement execution are reimbursable. This will be decided during rulemaking.
  • Completion Bonus Rates: The statute creates a "Completion Bonus" based on megawatts (MW) connected to the grid but fails to set the dollar-per-MW rate. This leaves a critical variable in your pro forma financial modeling undefined.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 6, 2025
Passed House
Apr 23, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsEnergyEnergy--nuclearGovernorOccupational RegulationOccupational Regulation--other Trades & ProfessionsState Agencies, Boards & CommissionsState Agencies, Boards & Commissions--newly ProposedState FinancesState Finances--management & ControlUtilitiesUtilities--electricUtilities--generalPermitsHigher Education Coordinating Board, TexasPublic Utility CommissionTexas Advanced Nuclear Deployment Office of the GovernorLaborLabor--workforce DevelopmentInterim StudiesAdvanced Nuclear Energy Office, TexasOpen Records
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House Authors

Rep. Cody HarrisRepublican · Primary Author
Coauthors (37)

Senate Sponsors

Sen. Charles SchwertnerRepublican · Primary Sponsor
Cosponsors (4)

Bill Text(with markup)

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Cody Harris

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB14

Q

What does Texas HB14 do?

HB14 establishes the Texas Advanced Nuclear Energy Office (TANEO) and authorizes three distinct grant mechanisms (Development, Construction, and Completion Bonuses) for the advanced nuclear industry. While the law authorizes up to $120 million per project for construction, these funds operate on a strict reimbursement basis with mandatory clawback provisions, and actual liquidity is contingent upon future legislative appropriation and potential constitutional amendments.

Q

Who authored HB14?

HB14 was authored by Texas Representative Cody Harris during the Regular Session.

Q

When was HB14 signed into law?

HB14 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB14?

HB14 is enforced by Public Utility Commission of Texas (Consultative role for Completion Bonus) and Texas Advanced Nuclear Energy Office (Office of the Governor).

Q

How significant are the changes in HB14?

The regulatory priority for HB14 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB14?

The cost impact of HB14 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB14 address?

HB14 addresses topics including energy, energy--nuclear, governor, occupational regulation and occupational regulation--other trades & professions.

Q

What are the key dates for HB14?

Key dates for HB14: Effective date is 2025-06-20. Rulemaking: Establish procedures by rule for the Project Development, Construction, and Completion Bonus grant applications and distributions. (No specific statutory date; prior to grant issuance); Submit a study to the legislature identifying necessary state regulatory functions related to nuclear energy generation. (2026-12-01). Consult with lega

Q

What are the penalties under HB14?

HB14 establishes the following penalties: administrative penalty of Full repayment of grant funds for Failure to meet specified project benchmarks outlined in the written grant agreement.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by HB14?

HB14 primarily affects energy companies and power generators, utility companies and energy providers, employers and workforce development organizations. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026