Texas Signals Its Commitment to Leading America’s Nuclear Energy Future Through Industry-Friendly Legislation

HB 14: Creates a Nuclear Energy Coordination Agency and a Dedicated Fund to Finance Nuclear Project Development

HB 14 establishes the Texas Advanced Nuclear Energy Office (TANEO) within the Office of the Governor.

Established as the central coordinating body for the creation, deployment and oversight of advanced nuclear reactor projects, TANEO will advise the Governor and the Legislature on how Texas can eliminate regulatory and financial barriers that preclude nuclear energy development in the state. TANEO is also required to develop a comprehensive strategy outlining its approach to fulfilling key priorities of the legislation, including the creation of both resilient nuclear supply chains and the socialization of nuclear energy benefits. This strategy must be presented to the Governor and the Legislature every even-numbered year, by December 1.

Additionally, TANEO’s Nuclear Permitting Coordinator will act as the primary point of contact for industry stakeholders. This office will help companies navigate local, state and federal regulatory requirements, identify potential sites for nuclear facilities, and advise on available economic incentives for nuclear energy development, among other duties.

HB 14 also establishes the Texas Advanced Nuclear Development Fund to assist companies with costs associated with nuclear energy projects. With an initial allocation of $350 million (with potential increases up to $2 billion), the fund offers the following financial support programs:

-  Project Development and Supply Chain Program. This program covers initial development costs for companies that have submitted an Early Site Permit, construction permit or combined license. Eligible expenses which may be covered by the program include technology development, feasibility and environmental studies, site planning and infrastructure expansion.

-  Advanced Nuclear Construction Program. This program provides funding for projects under review by the Nuclear Regulatory Commission for specific construction-related expenses such as fabrication, installation, inspection and testing.

-  Completion Bonus Grant Program. This program covers the costs associated with making reactors operational. TANEO, in coordination with the Public Utility Commission, will determine grant amounts that a project may receive based on the electricity output the reactor is expected to deliver to the Electric Reliability Council of Texas, Inc. (ERCOT) grid. (This bonus is applicable only for advanced nuclear reactors capable of ERCOT connectivity).

This legislation lays the groundwork for more efficient coordination between state government and the private sector, expediting project approvals and significantly reducing investment costs and regulatory hurdles. Although TANEO includes a sunset provision set to expire on September 1, 2035, the Legislature retains the authority to extend it—signaling that Texas is already thinking beyond the next decade when it comes to sustained support for nuclear energy. Likewise, a dedicated nuclear fund provides a unique avenue for both emerging and established companies to more readily finance their projects. Ultimately, HB 14 supports Texas’s transition toward a diversified energy mix, where nuclear energy plays an increasing role in driving economic growth and innovation.

This bill was signed by Governor Abbott and will take effect on September 1, 2025.

SB 1535: Pursues Creation of a Workforce Training Program to Support Demand for Nuclear Energy Expertise

Senate Bill (SB) 1535 amends the Texas Labor Code to establish an advanced nuclear energy workforce development program. This initiative relies primarily on public-private partnerships to bolster higher education and leadership training in the field.

SB 1535 authorizes the Texas Workforce Commission—supported by the Texas Higher Education Coordinating Board and the Railroad Commission of Texas—to design higher education curricula and certificate programs that “prepare students for high-wage jobs in the advanced nuclear energy industry.”

This legislation is critical to ensuring Texas has a robust talent pipeline to meet the labor demands of its growing nuclear industry in the coming decades. Nuclear energy companies will benefit from the education programs, reducing both long-term workforce development costs and the risk of operational hazards stemming from unskilled labor. It also has the potential to position nuclear energy companies as drivers of economic prosperity across Texan communities.

This bill was signed by Gov. Abbott and will take effect on September 1, 2025.

SB 1061: Streamlines Application Process for Amendments to Pre-Approved Uranium Mining Boundaries

SB 1061 amends Section 27.0513 of the Texas Water Code to streamline the application process for amendments to pre-approved uranium mining boundaries, helping companies avoid undergoing the full permitting process formerly required even for minor adjustments. Applications and amendments will be considered uncontested matters under the Texas Government Code if:

-  the authorization pertains to each production area within a permitted boundary and includes a range table of groundwater quality restoration values for each area; and

-  the specified restoration values for each production area do not exceed the upper limit of the established range.

SB 1061 supports Texas’s ambition to lead in the nuclear sector by amending or eliminating burdensome statutory provisions, contributing therefore to building an ecosystem favorable to competitive nuclear industry growth in the state. Particularly, it enhances the operational flexibility of both nuclear energy and uranium mining companies, reinforcing therefore a low-friction environment for investments across the nuclear fuel cycle supply chain.

This bill was signed by Gov. Abbott and will take effect on September 1, 2025.

Together, these measures reflect a deliberate and coordinated push by Texas lawmakers to transform the state into a national nucleus for advanced nuclear innovation. By addressing regulatory processes, committing substantial public resources and cultivating a skilled workforce, Texas is not just responding to industry trends, it is actively shaping them. These legislative actions underscore the state’s long-term vision for clean energy leadership and lay a durable foundation for the next generation of nuclear development. Pillsbury’s cross-disciplinary team is closely tracking these developments and stands ready to help clients assess legal implications, navigate new regulatory frameworks and capitalize on emerging opportunities.

(This alert is part of our Texas Legislative Session 2025 in Review series, designed to help readers navigate the evolving legal landscape and prepare for what lies ahead. In it, Pillsbury’s multidisciplinary team of attorneys offers in-depth analysis of the most consequential developments—what passed, what stalled and what it all means for stakeholders across key industries.)