Introduction of HB14, the Texas Advanced Nuclear Development Act by Representative Harris.
Stressed the need for resilient energy solutions due to strain on the electric grid from energy-intensive industries.
Nuclear power is advocated as a reliable, energy-dense source.
Investment in next-generation nuclear technology is expected to drive innovation, job creation, and economic growth in Texas.
Positioning Texas as a leader in nuclear energy will attract private capital investments and create high-wage jobs.
Emphasized the strategic and moral imperative of investing in nuclear technology to compete globally, particularly against China's expanding nuclear capabilities.
HB14 proposes the establishment of a Nuclear Deployment Office within the governor's office to oversee nuclear energy initiatives.
A biennial strategic plan is required from the office to the governor and legislative budget board.
A nuclear permitting coordinator will be established to assist with regulatory guidance and permitting processes to expedite reactor deployment.
Tiered funding mechanism to incentivize deployment, including reimbursement grants for technology development, feasibility studies, and construction of advanced nuclear projects.
Completion bonuses based on meeting project milestones, with clawbacks if milestones are not met.
Mandates the Higher Education Coordinating Board to develop training programs for skilled labor in the advanced nuclear sector.
The bill is described as a strategic imperative for energy policy, economic growth, and geopolitical security for Texas and the US.
The importance of Texas leading in energy security by embracing nuclear power was highlighted.
▶️Representative Anchía to Representative Harris, HB14 - Moving Nuclear Deployment Office from Governor's Office to Regulatory Entity
Representative Anchía is supportive of nuclear energy and appreciates the initiative of transitioning the office.
Anchía is concerned about the regulatory gap with the deployment office being housed in the governor's office due to limited staff and resources.
He suggests transitioning this office into an actual regulatory entity to ensure legislative and operational success.
Proposed the idea of integrating the function into an existing agency or setting up a new one with necessary expertise, like nuclear physicists and environmental engineers.
Recommends including a transition plan in the bill for setting up a competent regulatory body.
Expressed willingness to discuss and explore this suggestion further.
Public concern exists about radioactive waste from nuclear activities.
High-level nuclear waste is prohibited from being stored in Texas by a recent bill.
Advanced nuclear technologies produce very little nuclear waste.
Nuclear waste will be stored on-site until the federal government takes ownership.
Historical discussions about using nuclear reactors for electricity availability in Texas.
Efforts are being made to assure the public about the safety and management of nuclear waste.
▶️Representative Geren to Representative Harris, HB14 - Reuse of Spent Nuclear Fuel Rods
Discussion on advanced nuclear technology that allows the use of spent fuel rods from Comanche Peak as fuel, eliminating the need for transportation to Nevada.
Confirmation that spent nuclear fuel from Texas reactors can be reused on-site in advanced reactor models.
▶️Jimmy Glotfelty, Former PUCT Commissioner - Invited Testimony in Favor of HB14
Jimmy Glotfelty testified in favor of HB14.
He is a former public utility commissioner and led the Texas Advanced Nuclear Reactor Working Group.
The bill includes recommendations from the group's final report to the governor.
HB14 aims to position Texas as a leader in nuclear technology, workforce, and supply chain, boosting the economy.
Potential economic benefits include over 100,000 jobs and adding $50 billion to the Texas economy.
Nuclear and data centers were major topics at CERA Week, a leading oil and gas conference.
Glotfelty mentioned Texas's advantages: low regulatory costs, established supply chain, and labor market.
He noted areas not addressed in the bill, such as creating a manufacturing institute and market design issues.
HB14 and additional funding aim to make Texas a leader in nuclear energy.
Chairman Harris's bill is considered crucial, with potential competition or support from other senate bills like SB388.
He expressed hope for a comprehensive energy solution by the end of the legislative session.
▶️Reed Clay, Texas Nuclear Alliance - Invited Testimony in Favor of HB14
Reed Clay, President of the Texas Nuclear Alliance, testified in favor of HB14.
Acknowledged Texas as an energy leader but noted nuclear energy has been previously omitted.
Emphasized the importance of nuclear energy due to its reliability and carbon-free nature.
Highlighted the widespread support for HB14 within the industry.
Discussed the creation of a permitting office to ease nuclear project development.
Addressed the workforce skill and labor gap relating to nuclear development.
Outlined financial incentives as key to ensuring nuclear development.
Stressed nuclear's suitability in addressing Texas's staggering load growth.
Outlined potential applications for nuclear including micro, small modular, and large-scale reactors.
Cited economic development as crucial, with Texas poised to benefit from manufacturing and fuel reprocessing.
Highlighted moral obligations related to global nuclear leadership, with China and Russia currently ahead.
Invited questions from the meeting attendees.
▶️Representative Thompson to Reed Clay, HB14 - Impact of Nuclear on Oil and Gas Industry
Representative Thompson expressed interest in the current symbiosis between nuclear energy and the oil and gas industry.
Nuclear energy is being considered to help electrify areas such as the Permian Basin while maintaining low carbon emissions.
Natural gas generators and nuclear energy complement each other well for grid-scale energy deployment.
Nuclear provides high reliability, while natural gas can manage peak demands, creating an effective partnership.
Texas's identity as an oil and gas state remains unchanged, but nuclear energy is seen as a supporting factor for the industry.
▶️Representative Smithee to Reed Clay, HB14 - Nuclear Energy Cooling Needs
Discussion around the water requirements for cooling nuclear reactors.
Acknowledgment of traditional water cooling reactors needing considerable amounts of water.
Introduction of newer technologies reducing water usage, such as air cooling and molten salt reactors.
Mention of gas cooling as an alternative method.
Example provided of a new scale design at the Idaho National Laboratory specifically designed to be air-cooled.
John Kotek from the Nuclear Energy Institute contributed to the discussion.
▶️Representative Darby to the Panel, HB14 - NRC Permits in Texas and Consideration of Water Desalination from Nuclear Energy
Speaker: Representative Darby Discussion: Questioned the panel about current Texas projects permitted by the NRC. The Abilene reactor has a construction license but is a test reactor, not a commercial one.
Speaker: Jimmy Glotfelty Discussion: Confirmed that there are no full-scale commercial reactors permitted currently, though there are many potential sites in Texas with permit approval but facing economic constraints.
Speaker: Reed Clay Discussion: Discussed the timeframe for NRC permits, highlighting it as a moving target ranging from 2-7 years, with only one viable pathway for current technology. Advocated for Texas having more control over permits to shorten the process.
Speaker: John Kotek Discussion: Mentioned past withdrawal of permits like the Victoria County station and current plans like the X-Energy and Dow project, as well as ongoing efforts with Kairos Power in Tennessee and Texas A&M.
Speaker: Reed Clay Discussion: Discussed the importance of including nuclear energy in water desalination and addressing Texas' water issues. Highlighted Natura's partnership with Texas Tech University. Emphasized the need for inclusive language in legislative definitions.
Conclusion: Reinforced the necessity of utilizing nuclear energy for non-grid purposes like water desalination, emphasizing the potential impact on Texas' water and economic issues. Recommended reviewing specific legislative language to ensure inclusivity of demonstration projects.
▶️Representative McQueeney to John Kotek, HB14 - Modular Plant Construction Timeline and Average Output
Discussion on the timeframe for bringing modular plants online.
Large plants in Japan and South Korea took approximately five years to become operational.
Ontario Power Generation's GE Hitachi Small Modular Reactor project in Canada is expected to take around four to five years after starting nuclear construction.
Micro reactors might go from identifying a need to deployment in a year or less, pending regulatory changes.
The Vogtle plant in Georgia took about a decade, but future projects are expected to be completed faster.
There is no typical size for reactors: micro reactors are under 20 megawatts, small modular reactors range from 70 to 300 megawatts, and large reactors range from 1,000 to 1,200 megawatts.
Possibility of combining multiple reactors to achieve desired capacity.
▶️Representative Anchía to the Panel, HB14 - Creation of a Credible Regulator
Representative Anchía emphasized the need for a credible regulator to ensure industry success and maintain public trust.
There was discussion about whether existing regulatory bodies have the competence needed or if new infrastructure is necessary.
It was noted that the Nuclear Regulatory Commission (NRC) is a capable technical regulator and collaborates internationally on reactor designs.
Concerns were raised about the efficiency of the NRC and whether it can handle applications at the expected scale.
Multiple state agencies currently play roles in nuclear licensing; their expertise must be integrated into a new regulatory framework.
There was consensus on establishing a state-level regulator with shared responsibilities to prevent redundant regulations.
Anchía highlighted the industry's vulnerability to negative headlines, stressing the importance of credibility and high standards in state regulation.
Reed Clay from the Texas Nuclear Alliance cautioned against adding unnecessary layers to an already complex regulatory process.
▶️Representative Raymond to the Panel, HB14 - Facilities that Qualify for the Program
Discussion on types of facilities that could qualify for the program under HB14, beyond reactors, such as fuel enrichment or fabrication.
Texas shows a strong support for nuclear power with increasing interest from companies to build or manufacture in Texas.
Potential focus on enrichment and reprocessing facilities as the U.S. seeks to reduce dependence on Russian uranium.
Texas has uranium resources and manufacturing capabilities, particularly from mines in South Texas.
The funding mechanism aims to incentivize the creation and enhancement of facilities, potentially including existing plants.
Discussion of a possible amendment related to nuclear energy in Texas.
▶️John Kotek, Nuclear Energy Institute - Invited Testimony in Favor of HB14
John Kotek represents the Nuclear Energy Institute, a national trade association for the nuclear technologies industry in the US with 340 members.
Nuclear energy is highlighted as the most reliable and resilient form of electrical generation in the US and the largest source of firm clean generation.
Nuclear plants can safely and reliably produce clean electricity for up to 80 years or more.
The nuclear industry supports over 250,000 jobs in the US and contributes approximately $64 billion to the nation's economy.
In Texas, nuclear reactors supply 7.5% of electricity generation and over 20% of carbon-free generation, providing over 2,000 good-paying jobs.
Technology companies like Amazon, Google, and Meta are committing to tripling nuclear energy by 2050, indicating a significant investment in nuclear's clean and reliable power capabilities for data centers.
Partnerships between Microsoft and Constellation, and Google and Kairos Power, highlight the technology sector's trust in nuclear solutions.
Nuclear energy's application in transportation, industrial heat, and hydrogen production is emphasized, with partnerships like Dow Chemical and X-Energy demonstrating practical uses.
There is bipartisan consensus on the importance of nuclear energy and ongoing investment in new reactor designs ready for commercial deployment.
Alignment of federal, state actors, power producers, and consumers is needed to unlock the next wave of nuclear plant deployment in the US.
HB14 is anticipated to be the largest state investment in nuclear energy, with Texas's active support crucial for advancing nuclear technology leadership.
The testimony concludes with an appreciation for the opportunity and a readiness to work with the committee and legislature on HB14.
Acknowledgment of previous meetings with staff and appreciation for their time.
HB14 represents a significant shift in state policy by favoring a specific type of electricity generation, specifically small modular reactors.
Potential health risks and licensing status of small modular reactors are not covered, as others are there to testify on those topics.
There are concerns that the designs are not close to licensing or operation, with a timeline of six to ten years before any benefits to Texans.
HB14 diverges from the Texas Energy Fund's aim as it involves direct payments to unproven technology rather than low-interest loans.
Criticism regarding reimbursement of costs incurred before applicant enrollment in the program, potentially benefiting early investors at public expense.
Outlining how the first tranche, Tier one, can reimburse up to 30% of $200M for early-stage expenses without requiring a final site permit.
Concerns were raised about the second tranche, Tier two, paying the remaining 70% for progress without project completion, drawing a parallel to incomplete house financing.
Uncertainty if the bill's lenient reimbursement protocol is intentional or an oversight.
Carolyn Krum discussed HB14 and HJR8, characterizing them as taxpayer-funded benefits to the nuclear industry.
Krum highlighted the historical cost overruns and delays in nuclear reactor construction in Texas, impacting consumer electric bills.
Emphasized the need for nuclear power to compete in the open energy market and referenced a report on the financial risks of small modular reactors (SMRs).
Cited John Ketchum of NextEra Energy, who expressed skepticism about SMRs due to potential financial losses and emphasized wind, solar, and battery storage as alternatives.
Mentioned some U.S. states' requirements for a high-level waste repository prior to new nuclear plant licensing, recommending Texas adopt a similar stance.
Highlighted health risks associated with nuclear reactors, including increased cancer risks for nearby residents and workers.
Pointed out safety concerns with some SMR proposals due to outdated reactor designs.
Urged a 'no' vote on HB14 and HJR8 to protect Texas taxpayers from financial and health risks.
Current laws do not prevent large companies from pursuing advanced nuclear energy.
HB14 involves public funding through grants, as opposed to loans.
Concerns raised about taxpayer money being used without guarantees of operation.
Risk of large financial investments without returns or project completion.
Cautionary examples provided from nuclear projects in Georgia and small modular reactor projects in Utah and Idaho, highlighting cost overruns and cancellations.
Emphasis on the need for careful consideration regarding regulatory, safety, and financial implications of the bill.
Support for a cautious approach to HB14 to protect consumers and taxpayers.
Halpin argues that nuclear plants produce dangerous waste with no safe disposal solution and criticizes attempts to transport and store nuclear waste in Texas, citing the risk to major oil reserves and aquifers.
He references a train accident in East Palestine, Ohio as an example of potential hazards associated with transporting nuclear waste.
Texas Governor Greg Abbott opposes nuclear waste storage in West Texas, particularly near the Ogallala Aquifer, which serves multiple states.
Halpin highlights Texas' leadership in clean energy and suggests focusing on renewable energy to save money and avoid environmental risks associated with nuclear power.
There were no questions from the members following Halpin's testimony.
Craig Nazar, representing the Sierra Club, expresses skepticism about nuclear energy, emphasizing it's not the best investment compared to other sources.
Nazar highlights the difference between nuclear fission and fusion, advocating for renewable energy derived from solar power.
Discussion about renewable energy technologies, including solar panels and advanced battery technology inspired by nature.
Nazar shares personal experience with solar panels significantly reducing his electric bill, suggesting solar as a viable energy solution.
Mention of liquefied salt technology for energy generation, even at night, as a promising development.
Interaction between Nazar and Representative Thomas regarding recommendations for future energy needs, with Nazar advocating for solar solutions.
▶️Andy Meyers, Fort Bend County Commissioner - HB14
Andy Meyers represented Fort Bend County and the conference of urban counties in favor of HB14.
Emphasized the importance of advanced nuclear technology for Texas’ electricity and water supply challenges.
HB14 aims to support advanced nuclear reactor development and commercialization.
The Texas Advanced Nuclear Reactor Working Group, co-chaired by Meyers, outlined key legislative priorities with HB14 encompassing six out of seven.
Suggested inclusion of the Texas Nuclear Public Outreach Program to address public misconceptions about nuclear energy.
Recommended expanding HB14’s definition to include fusion reactors and radioisotope power systems.
Encouraged consideration of other critical applications such as desalination and synthetic fuels production.
Advanced reactors' cogeneration capability could lower costs by powering multiple processes.
Meyers supports HB14 as a crucial step for Texas’ energy future.
Clarification on 403.002(a) was discussed with Doug Robinson from Natura, related to the A&M reactor's inclusion in the bill.
Plans to draft a committee substitute to ensure specific projects are covered in HB14.
Engagement with the governor's office on including advanced nuclear manufacturing in the legislation.
Information shared on Texas having substantial uranium deposits, compared to Saudi Arabia's oil reserves.
Potential economic impact of passing HB14 and focusing on nuclear energy for electric generation in Texas.
Discussion on the benefits of molten salt reactors, including desalination and medical isotope production.
Representative. Thompson inquired about uranium locations on state-owned land, with understanding that much is on private land, primarily in South Texas.
The committee left HB14 pending without objection, though further discussions were indicated.
Cyrus Reed represents the Lone Star Chapter of the Sierra Club and supports the bill.
Reed references the memorial service for Sylvester Turner, highlighting his commitment to the issue.
The bill is important because many Texans struggle to pay their electric bills due to extreme weather conditions.
Reed supports the committee's broader substitute for the bill, which addresses issues with allocating funds from the non-bypassable fee on electric bills.
The proposed bill suggests the state should decide funding amounts for this account.
Reed points out the original system benefit fund had various programs, including those for low-income discounts, emergencies, consumer education, and weatherization.
Recommends the continued support for weatherization programs to help reduce energy costs permanently.
Emphasizes the potential lack of federal support for programs like LIHEAP and WAP and the importance of state support.
Reed is open to questions and reiterates strong support for the bill.
Mark Bell testified on behalf of AECT in support of HB1359.
The bill aims to provide support to low-income and critical care customers facing difficulties with paying electric bills.
HB1359 seeks to revive the purpose of the System Benefit Fund, established in 1999 but abolished in 2013, to assist with household financial strains caused by high utility bills during extreme temperatures.
Existing robust bill assistance programs by retail electric providers would be augmented by the Consumer Benefit Fund.
The revised legislation, supported by Vice Chair Hernandez, proposes funding through an appropriation and applying it statewide to benefit all eligible consumers.
Shane Johnson, representing Sierra Club, stated the struggles Texans face due to rising costs of living, groceries, and extreme weather affecting electricity bills.
Johnson highlighted the need for programs due to unseasonably warm and extremely cold weather, making it hard for people to pay their bills.
Johnson attempted to read statements from residents in South Texas, expressing similar financial challenges, but was reminded to testify only on their own behalf.
There are claims that energy costs are rising across both public and competitive markets in Texas.
Kenneth Flippin, from Texas Chapter US Green Building Council, presented arguments supporting HB1359.
Whippen emphasized a survey showing 34% of Texans struggle to pay electric bills, and a quarter have faced disconnection.
Mentioned the past COVID-19 situation where people struggled to get assistance, indicating the need for a better assistance program.
Advocated for a robust weatherization program to complement the bill, aiming to save costs long-term and improve home survivability during extreme weather.
Vice Chair Hernandez closed discussions on the bill, indicating ongoing work on inclusive language and stakeholder collaboration.
Representative Darby reminisced about past legislative decisions regarding discontinued funds and expressed support for current efforts to aid low-income residents with utility costs.
HB1359 was left pending with no objections from committee members.
▶️9 - Representative Hull, HB1584 - Improving Power Restoration for Critical Facilities
The bill HB1584 was introduced by Chair Hull in response to the aftermath of Hurricane Beryl in Houston and aims to improve the prioritization of power restoration for critical facilities.
During the hurricane, issues were reported where fire stations and a small airport struggled with power restoration, relying on backup generators for days.
There was confusion among nursing and assisted living homes regarding their registration status on priority restoration lists.
The bill requires electric utilities to maintain a list of priority facilities, allow qualified entities to register online, verify registration status, and share these lists with local emergency management during disasters.
Possible amendments include sharing the list with TDEM instead of directly with local management and ensuring the list is exempt from open records.
The PUC's definition of a critical facility, which includes hospitals, police, and fire stations, is suggested to be codified.
Current laws for prioritizing healthcare facilities need clearer implementation, and the bill aims to ensure utilities maintain accurate lists of these facilities.
Potential additions to the bill include adding TDCJ facilities upon request.
Carmen Tilton, VP of public policy for TALA, testified in support of HB1584.
TALA advocates for assisted living communities across Texas.
SB937 in 2011 established priority power restoration for select healthcare entities caring for individuals reliant on powered medical equipment.
Despite this, priority designation has been ignored, leaving facilities unprepared during power outages.
Carmen reached out to utilities; many were unaware or lacked processes for registering as priority restoration customers.
The 2023 Austin ice storm revealed the issue with utility companies' unawareness about community locations and registration requirements.
HB1584 aims to improve communication between utilities and priority customers and remind utilities of their responsibilities under existing statutes.
A question from Representative Thompson suggested businesses should also prepare for power outages with generators as a shared responsibility.
Tilton agreed, noting that assisted living facilities have emergency preparedness plans, especially post-Hurricane Harvey, mandated by the Health and Human Services Commission.
Facilities are required to maintain safe conditions for residents through various preparedness measures.
Tilton stressed the importance of dual responsibilities between utilities and assisted living facilities.
▶️Brian Mason, Houston Director of Emergency Management - HB1584
Brian Mason, Director of Emergency Management for Houston, supports HB1584.
The City of Houston collaborates annually with partners to create a prioritized list of critical infrastructure shared with CenterPoint.
The prioritized list includes critical infrastructure like water, wastewater, fire stations, police stations, hospitals, and communication facilities.
The priority list aided Houston's response during Hurricane Beryl, where 2 million customers lost power, some for up to 11 days.
Restoration of power to critical infrastructure was crucial to prevent a potential boil water notice during and after the hurricane.
Post-Hurricane Beryl, Houston worked with the utility to update and reprioritize the critical infrastructure list for efficient restoration.
HB1584 would formalize current practices by requiring utilities to provide an online tool for facilities to request inclusion and share this list with emergency management.
The City of Houston values partnerships with utilities to prioritize essential services for the community.
No committee members asked questions, and there were no additional testimonies for or against HB1584.
Representative Eddie Morales introduced HB2152, a bill that updates the Permian Basin Transmission Reliability Plan every five years, aiming to meet future electricity demands in Texas, particularly in regions with rapid electrical load growth.
HB2152 builds on a prior bill, HB5066, which required a one-time regional reliability plan for the Permian Basin.
Electricity demand in the region is expected to grow by approximately 26 gigawatts by 2038, nearly one-third of ERCOT's current summer demand.
The bill has a companion, SB391, and was originally brought by Senator Sparks and his team.
The bill aims to ensure the adaptability, maintenance, and reliability of electricity infrastructure to accommodate future demands.
A resource witness from ERCOT was available to answer technical questions, but no questions were presented at this time.
Cyrus Reed from the Lone Star Chapter of the Sierra Club is in support of the bill.
▶️Representative McQueeney to the Representative Morales, HB2152- Asking for more information about the fiscal note
There was a fiscal note issue where the updated bill now has a small fiscal impact of $450,000, which was unexpected as HB5066 had a zero fiscal note.
Efforts are underway to clarify and address the unexpected fiscal note.
Halpin queried if future constitutional amendments would fund emerging technologies like geothermal, which is carbon-free and uses existing fracking technology.
The concern was raised about the lack of a funding limit in the bill for these technologies.
Chairman Harris was recognized to close on HJR8, with no further objections or questions from the members.
