The Senate Committee on Business & Commerce on Thursday adopted a committee substitute to House Bill 14 that would create the Texas Advanced Nuclear Energy Office in the governor’s office and establish the Texas Advanced Nuclear Development Fund with a $350 million appropriation for the current biennium.

The bill matters because it directs state grant support toward nuclear generation and supply-chain projects and sets limits and oversight for how that money could be awarded. Committee members debated the structure of the grants, whether the money is loans or reimbursements, and who would approve awards.

Senator Schwartner explained the substitute during the committee’s consideration, saying the measure “creates the Texas Advanced Nuclear Energy Office within the governor’s office” and would form the Texas Advanced Nuclear Development Fund as a dedicated general‑revenue account. Under the substitute, the fund would support reimbursable grants for expenses tied to preconstruction activities and docketed project costs; preconstruction grants would be capped at the lesser of 50% of expenses or $12.5 million, and construction‑stage grants would be capped at the lesser of 50% of expenses or $100 million, the committee heard. The substitute also provides a framework for a completion‑bonus grant that has no funding allocated in the current biennium.

Committee members asked how the program would operate. Senator Menendez asked whether the awards were grants or loans; Schwartner replied the program would provide grants: “They are grants. Yes,” and later clarified the reimbursement model would pay applicants for qualifying expenditures rather than require payback. Senator Nichols pressed whether the $350 million was already in the budget; the committee was told the appropriation would be dependent on legislative appropriations for the current cycle and that the substitute as written reflects a $350 million figure for the biennium.

The substitute adopts an approval process modeled on the state enterprise fund: final disbursements would require the sign‑off of the lieutenant governor, the speaker of the Texas House and the governor, the committee was told. The bill text referenced criteria such as applicant qualifications, quality of management and access to resources as factors the office would use when evaluating grant applications.

Senator Campbell moved adoption of the committee substitute and a motion that HB 14 “do not pass, but that the substitute adopted in lieu thereof do pass and be printed.” The committee recorded nine ayes, one nay and one present. The committee substitute for House Bill 14 was favorably reported to the full Senate.

If the full Legislature approves the substitute and funds remain, the office would administer reimbursable grants under the limits and processes the substitute describes. The substitute does not appropriate money beyond the $350 million figure for the biennium and does not fund the completion‑bonus provision in the current cycle, the committee noted.