Governor Greg Abbott has set the stage for what he calls a "nuclear power renaissance" in Texas, and state legislators are wasting no time turning that vision into action. In response to Abbott’s 2025 State of the State address, Rep. Drew Darby and Sen. Tan Parker have filed companion bills aimed at jumpstarting the development of advanced nuclear energy across the Lone Star State.
House Bill (HB) 2678, introduced by Darby, and Senate Bill (SB) 1105, filed by Parker, would establish the Texas Advanced Nuclear Energy Authority, a new entity designed to streamline permitting, attract investment, and coordinate research efforts. The legislation would also create a low-interest loan fund to support nuclear projects, modeled after a similar initiative passed in 2023 for natural gas power plants.
A New Era for Texas Energy
Texas, long known for its dominance in oil and gas, is looking to diversify its energy portfolio with nuclear power. Abbott’s vision aligns with recommendations from the Texas Nuclear Power Workgroup, which released a report in November calling for strategic investments in nuclear technology.
“Texas has always been a leader in energy innovation,” Parker said. “With SB 1105, we are taking a bold step to ensure that advanced nuclear technology plays a key role in our state’s energy future.”
The bill outlines several objectives, including:
Developing a strategic plan for nuclear energy expansion
Identifying and removing obstacles to nuclear development
Supporting research and innovation in nuclear technologies
Managing nuclear energy projects with a goal of integrating them into the state grid by 2035
Building an advanced nuclear energy supply chain in Texas
How the Plan Would Work
A key feature of HB 2678 is the creation of the Texas Advanced Nuclear Innovation Fund, which would require a constitutional amendment to be established. The fund would provide financial incentives to spur the construction of new nuclear facilities, particularly small modular reactors (SMRs) that are cheaper and faster to build than traditional nuclear plants.
In addition to funding, the proposed Texas Advanced Nuclear Energy Authority would serve as a regulatory hub, helping companies navigate the complex permitting process. The authority’s executive committee would include appointments from the governor, lieutenant governor, and House speaker, along with representatives from Texas A&M University, the University of Texas System, and Abilene Christian University—all institutions with existing nuclear programs.
“This initiative will continue Texas’ energy dominance,” Darby said. “The goal is not to add any new requirements or regulations to the already heavily regulated nuclear industry, but to provide a central repository for procurement, innovation, and financing.”
Why Nuclear, and Why Now?
Texas currently operates two major nuclear power plants—one near Houston and another in the Dallas-Fort Worth area—producing about 5,000 megawatts of baseload power. However, the state’s nuclear footprint has remained largely unchanged for years.
With rising energy demand and concerns about grid reliability, state leaders see nuclear as a way to ensure a steady, carbon-free power source. The development of SMRs is a key factor in this shift. Unlike traditional large-scale plants, which can take decades and billions of dollars to build, SMRs cost between $1.5 billion and $2 billion and can be operational much faster.
A sign of momentum in the industry, Dow Chemical has already announced plans to construct an SMR at its Seadrift facility on the Texas Gulf Coast, with construction expected to begin this year.
What’s Next?
Darby’s role as chair of the Energy Resources Committee suggests that HB 2678 will be a priority in the legislative process. The bill, along with SB 1105, represents Texas’ push to become a national leader in next-generation nuclear energy.
If passed, the legislation could serve as a model for other states looking to revitalize their nuclear sectors. “The goal is to create a model framework for the United States,” Darby said, “with Texas leading the nuclear power renaissance.”
