ADVANCED NUCLEAR CONSTRUCTION REIMBURSEMENT PROGRAM.

(a) The office may provide a reimbursement grant from the Texas advanced nuclear development fund under this section for expenses associated with the construction of an advanced nuclear project in this state.

(b) Expenses that qualify for reimbursement under this section are limited to expenses associated with:

(1) the regulatory commission's review of the construction permit or license application;

(2) procurement and development of long-lead components; or

(3) construction activities, including the manufacture, fabrication, quality assurance, placement, erection, installation, modification, inspection, or testing of an advanced nuclear project.

(c) To be eligible for a reimbursement grant under this section, an applicant must provide with an application proof of incurred expenses described by Subsection (b).

(d) A grant provided under this section may not exceed the lesser of:

(1) 50 percent of the amount of qualifying expenses associated with the project; or

(2) $120 million.

(e) The office by rule shall establish procedures for the application for and provision of a grant under this section.

(f) The office may not provide a reimbursement grant for a project under this section until the regulatory commission has docketed a construction permit or license application for the project.

(g) The office by rule shall establish a process to distribute the proceeds of each grant awarded under this section to the grant recipient on a rolling basis for qualifying expenses. The process must include milestones associated with:

(1) the regulatory commission's permitting process; and

(2) the recipient's financial investment decisions relating to the project.