Griffin Perry represents Fermi America and supports HB14, emphasizing the need for more base load power in Texas.
He advocates for nuclear power as safe, reliable, and dispatchable, highlighting that the U.S. has been using it for over eighty years.
Recent technological advances have made nuclear power safer and available in smaller reactors.
Perry urges Texas to lead in nuclear energy, following the steps of other proactive states.
The Fermi America project commenced approximately 120 days ago and has received significant federal government support.
Challenges in nuclear projects often involve being over budget and delayed; however, modular nuclear power can mitigate these issues by being quicker and safer.
While advocating for nuclear energy, Perry acknowledges the state's strong natural gas resources and supports continuing natural gas generation.
Expresses gratitude to Chairman Schwertner and the committee for the platform to present his views.
Billy Bardin from Dow Chemical expressed support for HB14.
Dow Chemical is partnering with X Energy to develop four 80-megawatt gas-cooled modular reactors, totaling 320 megawatts, at their site in Seadrift, Texas.
The project is progressing through the federal process with the Nuclear Regulatory Commission.
Bardin emphasized the importance of a state program for supporting first-of-a-kind deployments in advanced nuclear reactors to generate reliable, zero-emission electricity.
He highlighted the significance of creating oversight authority to signal market seriousness and promote the industry's growth in Texas.
Bardin stressed the need for partnerships between private companies and all government levels to ensure a successful project roadmap.
The importance of a demand pool in creating a complete supply chain and reducing costs was noted, along with benefits to economies at local, state, and federal levels.
Bardin discussed the protection of state funds through rigorous project evaluation processes and milestone-based investment decisions.
He concluded by expressing appreciation for the committee's work and offered to answer any questions.
Adrian Shelley spoke in opposition to HB14, focusing on concerns regarding nuclear power projects.
Belief that nuclear power projects will not come online soon and will be very expensive.
Grants are being provided instead of loans, with most available before actual electricity generation.
Suggestion to convert the grant program into a loan program with specific benchmarks.
SMRs (Small Modular Reactors) in the US have not generated electricity and face budget and time overruns.
The Vogtle reactor in Georgia had significant delays and budget overruns, becoming the most expensive power in the US.
Proposed series of amendments include converting the program to loans, emphasizing workforce development, grant award criteria, life cycle management, and safety.
Concerns about the lack of a solution for nuclear waste and the challenges with recycling high-level waste.
Senator Schwertner asks Griffin Perry about the benefit of Texas establishing an office to aid with permitting and incentives, and project time frames.
Perry states that Texans will gain reliable base load power.
Where Texas is in terms of technology compared to the Vogtle project is much quicker; the delay exists in the global supply chain.
The timeline for obtaining a permit has traditionally been close to a decade.
Fermi has completed the environmental work surrounding its site and based on conversations with the head of the NRC expects approximately 12-18 months to obtain a permit.
Schwertner asks Billy Bardin about Dow’s project and their timeline.
The project was announced in 2023 in partnership with X Energy.
The project is expected to be brought on in the early 2030’s, providing behind the meter power.
Discussion on whether Texas should subsidize projects that provide behind the meter generation.
Benefit to Texas: Creates skilled workforce, job opportunities, viability of site infrastructure.
Concerns: Subsidizing behind meter generation does not supply to grid directly.
Technology Discussion: Xterra's technology is a pebble bed, small modular reactor, different than SMR, 80 megawatts, fully modular deployable.
Senator King referenced Comanche Peak, the last nuclear power plant built in Texas, noting significant cost overruns in its construction due largely to federal regulations causing frequent design changes.
When Comanche Peak became operational, local electric bills reportedly increased significantly.
The conversation shifted to a new project involving a set of four 80-megawatt reactors, totaling 320 megawatts.
The cost of these new reactors is still being validated internally and has not yet been disclosed to the board of directors or made public.
Discussion highlighted economies of scale, suggesting costs could decrease as more units are produced.
Discussion on the potential benefits and reservations about small modular nuclear programs.
Emphasis on support from the federal government for nuclear energy initiatives.
Argument made for Texas to invest in nuclear energy as it would bring benefits globally and particularly to the United States.
Intention to build a nuclear plant in Texas, with a focus on state-specific incentives to attract business.
Mention of existing competition among states for nuclear energy projects.
Currently, there are five active permits in the Nuclear Regulatory Commission, with only one in Texas, signaling a chance for Texas to take the lead by showing support.
Support from the state could potentially attract more nuclear energy projects and create jobs, benefiting Texas' economy.
Support for establishing a specific office within the governor's office to improve coordination on permitting timelines.
Concerns about decommissioning and safety to ensure environmental protection for Texans.
Apprehension about the $200,000,000 in grants without clarity on returns, preferring a loan program instead.
Senator Schwertner mentioned a $750,000,000 supplemental being discussed between the house and the senate for nuclear energy, reflecting debates on state taxpayer investment in somewhat novel technology.
Confirmation of the industry's proven capacity but uncertainty regarding timelines and returns.
John Umfress testifies on behalf of himself, opposing HB14.
Main opposition due to use of tax dollars for subsidies to private investments in advanced nuclear reactors.
Concerns over $750 million appropriation with potential increase to $2 billion.
Funds could be used for other state needs, potentially benefiting Texans more.
HB14 allows grants to be large enough to fund projects receiving more than the currently earmarked amount.
Projects under HB14 may not be required to connect to the grid.
Advanced nuclear reactors are not cost-competitive compared to other generation options (combined cycle natural gas, solar PV, onshore wind, solar PV battery hybrid, and geothermal).
Emphasis on waiting for advanced reactor technology to mature and costs to stabilize.
Prefer deployment of more affordable and mature generation technologies in the meantime.
Dr. Joe Elabd, Vice Chancellor for Research for the TAMU System, provided testimony on HB14 regarding energy technology advancement in Texas.
The A&M System is utilizing its RELLIS campus for applied research and innovation to test advanced technologies.
A feasibility study commissioned by the system determined the RELLIS campus is suitable for electricity generation by small modular nuclear reactors.
In spring and late summer of 2024, the A&M System issued requests for information and proposals to site advanced nuclear reactors, receiving positive responses.
On November 7, a notice of intent to pursue an early site permit with the US Nuclear Regulatory Commission was submitted.
After evaluation, four companies were selected to site at the RELLIS campus: Kairos Power, Natura Resources, Terrestrial Energy, and Aalo Atomics.
The A&M System aims to partner in applied research, innovation, workforce development, and talent provision within the advanced nuclear sector.
John Portillo is the Vice President of Global New Nuclear for Paragon Energy Solutions.
Expressed support for HB14, emphasizing Texas's potential to lead in new nuclear plant development.
Highlighted the historic support from the public, private, and federal government for nuclear industry growth.
Stressed the importance of state leadership and financial support to become a leader in nuclear manufacturing and grid stability.
Mentioned that nuclear development will attract data centers, materials science & chemical manufacturing facilities, and semiconductor factories to Texas.
Predicted significant economic and energy security benefits for Texas with nuclear development.
Paragon Energy, based in Fort Worth, anticipates creating over 200 high-paying jobs in the next two to three years due to nuclear growth.
Urged the committee to support HB14 for the benefit of Texas.
David Patterson, CEO of Bridge to Nuclear, testifies on HB14.
Bridge to Nuclear proposes legislation to support the development of an Advanced Nuclear and Innovative Energy Technologies Office.
Urges legislation to issue reimbursement funds for developing a co-located dispatchable generation facility and an advanced nuclear reactor.
Texas taxpayers support nuclear power but demand financial caps due to a history of cost and timeline overruns in nuclear projects.
The proposed project features a unified approach with two parallel tracks: a 300 MW natural gas power plant and an advanced nuclear reactor.
Profits from the natural gas plant would finance the nuclear reactor construction.
Benefits include near-term dispatchable generation, clear construction timeline for the nuclear project, capped state financial commitment, and shifting financial risks from public to private.
The project aims to bring 300 MW of dispatchable generation online in 2-3 years.
Nuclear companies benefit through blended power purchase agreements and securing contracts for immediate power needs transitioning from natural gas to nuclear.
Large-scale data centers require high reliability, which the project aims to address by providing consistent power.
Natural gas is proposed as a practical bridge to nuclear energy.
Elaina Ball, Chief Strategy Officer for CPS Energy, supports HB14.
Emphasized the importance of nuclear energy for Texas.
CPS Energy is one of the original owners of the South Texas Project (STP) in Bay City and is ready to utilize new nuclear technologies.
The STP site has capabilities for hosting additional reactors, including light water reactors and small modular reactors (SMRs).
Elaina Ball believes SMRs represent the future of nuclear energy.
CPS Energy is exploring partnerships, such as with Joint Base San Antonio, to use SMRs for critical military operations.
For advanced nuclear technologies to be viable, they need to demonstrate reliability, scalability, and operational efficiency to reduce costs.
HB14 is seen as instrumental in decreasing early development, siting, and construction costs, and it fosters workforce development and regulatory support for advanced nuclear reactors.
HB14 aims to reduce costs, encourage investment, and initiate a nuclear renaissance in Texas.
Elaina Ball reiterated her availability for questions and expressed appreciation to the committee.
Matt Loszak, cofounder and CEO of Aalo Atomics, introduced himself and shared a personal story about growing up in Ontario where nuclear power helped alleviate his asthma.
Loszak has a background in software startups with a significant exit and relocated to Texas to focus on Aalo Atomics.
Aalo Atomics is developing small modular nuclear reactors aimed at powering AI data centers.
Loszak highlighted the potential economic growth from investments in nuclear power and expressed support for HB14.
He compared the potential of nuclear power to the oil and gas industry, noting nuclear's long-term advantages and significant future opportunities.
Loszak cited a unique opportunity in the next five years where data center developers have a high demand for small nuclear reactors to support large-scale data centers.
He emphasized the importance of establishing the necessary infrastructure to support this demand and solidify the grid at ERCOT.
