ESBD_375118_1726858478122_VCE-25-217 Addendum 1.pdf

THE TEXAS A&M UNIVERSITY SYSTEM

Office of Procurement & HUB Program

ADDENDUM NO. 1

Date: September 20, 2024 RFP Due Date: September 26, 2024 New RFP Due Date: October 15, 2024 RE: RFP01 VCE-25-217 – RELLIS Nuclear Reactor Project

Respondents shall acknowledge receipt of addendum(s) on the Execution of Offer (Exhibit A).

Pre-proposal Conference:

The recording of the pre-proposal conference held on Friday, September 6th can be accessed at the following link; https://www.tamus.edu/business/hub-procurement/rfps/

RFP Extension:

The due date of the RFP has been extended to Tuesday, October 15, 2024. The first sentence of Section

2.3 shall now read as follows, “All proposals must be received by the A&M System no later than 2:00 p.m.

Central Time, October 15, 2024 electronically via email to soprocurement@tamus.edu with the subject line of “VCE-25-217 – RELLIS Nuclear Reactor Project.”

As such, the dates within Section 1.5 - Calendar of Events have been revised as below:

Deadline for Receiving Proposals October 15, 2024 Selection of Respondent(s) TBD

Questions/Responses:

1. Can you please provide clarity concerning which plan, the HUB Participation Plan or the HUB Subcontracting Plan (or both), is required to demonstrate a responsive proposal?

Response: The HUB documentation requirements for this RFP are as stated in section

4.3. Section 2.4 incorrectly states a HUB Subcontracting Plan which implies the form is required. In Section 2.4 II. Forms the 3rd bullet shall now read “HUB Participation Plan (Section 4.3)”.

2. The development and negotiation of partnerships for this project are anticipated to take more than the 21 days provided in submitting the RFP. Is it possible to get a 60-day extension to allow us time to progress the necessary relationships and partnerships?

Response: The RFP due date has been extended to October 15, 2024 per the above RFP Extension section. Non-binding letters of commitment establishing relationships between submitting collaborators would be sufficient.

3. In Section 3.4, the RFP states that any resulting agreement will contain (ii) the obligation of the Respondent to enter into a separate collaborative or sponsored research agreement if deemed necessary by the A&M System in its sole discretion to carry out the purpose of this RFP with the intent that the Research Agreement will include funding by Respondent of research project(s) conducted. Is it the expectation that the proposed project include research for the TAMUS?

https://www.tamus.edu/business/hub-procurement/rfps/ mailto:soprocurement@tamus.edu

Response: It is not necessarily required that respondents enter into a sponsored research agreement with A&M System. Sponsored research may be an additional way in which parties interact. Occasionally, a research agreement or separate collaborative agreement, rather than only a lease, will be the best type of agreement through which to execute the desired outcome.

4. What is the length of time anticipated for the lease agreement? What are the minimum and maximum time limits authorized by A&M?

Response: The length of a lease is typically aligned with the operational lifetime of the constructed facility. Lease durations of 30, 40, or 50 years have been negotiated in the past on prior A&M System projects which did not include a nuclear component.

5. Has the university system confirmed that a nuclear reactor can be built on the RELLIS Campus in terms of hydrology, geology, seismology, and meteorology?

Response: Preliminary studies of these considerations have been conducted. However, an NRC site approval has not been attained.

6. What is the current power consumption at the RELLIS Campus and how much power does Texas A&M anticipate requiring from the nuclear plant proving ground?

Response: Current power consumption is 3 MW at the RELLIS campus. Current HV transmission lines and substation at the RELLIS campus has a capacity of about 250 MW. Peak demand of A&M System facilities in Brazos County is about 90 MW. Current projects in development at RELLIS will increase demand at RELLIS to in excess of 175 MW. Desired capacity at RELLIS is up to 1 GW. Additional capacity to and from the grid is planned.

7. Please provide clarification regarding the requirement outlined in the RFP, specifically the section requesting "a list of the names and addresses of all owners, executives, managers, partners, members, shareholders, or principals of the Respondent, and all entities having an ownership interest in the Respondent, along with a complete general description of experience in the respective fields for each of the parties listed."

Given the complexity of the Respondent team, which may include utility providers, off-takers, developers, construction firms, architectural designers, engineering designers, nuclear operations experts, and nuclear technology providers, compiling and providing detailed information for every individual and entity involved poses a significant administrative burden.

This includes gathering personal and professional details from potentially large organizations with diverse roles.

Please confirm whether the intent of this requirement is to receive this level of detailed information for every member and entity involved, or if this information is only applicable to the Respondent team member that is submitting the response to the RFP on behalf of all the team members.

Response: Primary Respondents should provide all such information. Additional information on key team members with relevant experience may also be included. Prior to formal agreements Respondents and all team members will be required to provide such information.

In addition to all other disclosures as required by applicable laws or regulations or as otherwise reasonably requested by A&M System and prior to execution of a formal agreement, any awarded Respondent may be required to submit a disclosure of interested parties by completing a Form 1295 from the Texas Ethics Commission (TEC). Refer to the following site; https://www.ethics.state.tx.us/filinginfo/1295/. This would include all team members considered to have a Controlling Interest or Intermediary Interest as defined by

TEC.

8. What tax abatement programs are available?

Response: While other tax abatement programs may be available or become available in the future, a listing of possible property tax abatements programs in Texas is available through the comptroller’s office: https://comptroller.texas.gov/economy/development/prop-tax/.

Respondents can engage with the Greater Brazos Partnership (Brazos Valley Economic Development Corporation, https://brazosvalleyedc.org/) to assist in applying for appropriate incentives during the course of this process.

9. Is this RFP geared toward technology providers?

Response: No. A technology provider is an expected member of a responding team. The team does not need to be led by the technology provider.

10. Is Texas A&M to be the prime or is it the prime to be the technology vendor or somebody from the teaming arrangement is that it's expected to be the prime for this?

Response: We are open to various models. Neither A&M System nor Texas A&M University will be the owner or operator of the nuclear power plant.

11. What are the electrical and water accessibility?

Response: An existing 138 kV dual feed ring-bus substation has a transmission capability of about 250 MW. Additional substations and transmission liens would be sought through these projects to bring 345kV and capacity in excess of 1 GW. A feasibility study indicated that Brazos River and existing ground water rights resources were potentially available for cooling needs., but it will be the obligation of the Respondent to further determine the viability and capability of the available water sources to meet the needs of the Respondent’s project. A cooling reservoir is likely needed. Efficient and responsibly use of water resource is desired.

12. Target size of power plant?

Response: A variety of solutions and timelines are acceptable. In shorter term ~300MW solutions are sought. A variety of reactors or power solutions are sought. Demonstrations of lower TRL technologies at at less than a megawatt (MW) would also be acceptable. A longer duration (e.g 10-15 yr) time horizons to commercial power demonstration are acceptable.

13. What is the expected date for commercial power generation?

Response: Sooner is better, but it is understood that these are complicated long term and regulated projects. Power production on a 5 to 15 year time horizon is acceptable.

Respondents should propose the anticipated timeline.

14. Is ERCOT approval necessary?

Response: Yes. Respondent will be expected to obtain the necessary ERCOT approval(s);

however, A&M System will work with the respondent, the local municipality and ERCOT to attain approvals aligned with other timelines of the project. This will occur over the course of the project and is not a requirement before submitting a proposal https://www.ethics.state.tx.us/filinginfo/1295/ https://comptroller.texas.gov/economy/development/prop-tax/ https://brazosvalleyedc.org/

15. Is Texas an agreement state?

Response: Yes, Texas is an Agreement State with the Nuclear Regulatory Commission (NRC).

Agreement information is available here: https://www.nrc.gov/agreement-states/texas.html. Fission reactors will require NRC permitting.

16. How will the construction projects be managed?

Response: Third party developed projects on A&M System lands are managed by the developer following A&M System guidelines (link below) and in accordance with all applicable state and Federal laws and regulations.

https://assets.system.tamus.edu/files/fpc/pdf/DPG_2024.02.01.pdf.

17. What is the pricing per MW and PPA agreements?

Response: Power purchase agreement, PPA, is not necessary to be part of a deal structure.

Power plants could engage with the ERCOT market or with local Bryan Texas Utilities. These could be negotiated as appropriate through the process.

18. What DOE funding partnerships are required?

Response: Proposals are not required to include collaborations toward DOE funding. That said DOE funding or other funding partnerships may benefit the project. The current DOE solicitation is for Gen 3+ SMR see RFP for details. There are two tiers of potential funding opportunity to collaborate on.

19. Are multiple reactors on the RELLIS site being considered? Has this been done before? How will this be managed?

Response: Yes, multiple reactors on a single site are being considered. This has not been done before. The Clinch River Nuclear Site is an example of two or more reactors on a site being approved. See: https://www.nrc.gov/reactors/new-reactors/large-lwr/esp/clinch-river.html.

Various management plans might be proposed and developed through the negotiations process.

20. Has there been a public communications campaign?

Response: In May 2024 a public announcement of the initiative was made. See:

https://today.tamu.edu/2024/05/29/texas-am-university-system-to-bring-nuclear-reactors-to-rellis/.

Generally, responses have been favorable. Texas Nuclear Alliance has also publicized these activities. A campaign will be an ongoing effort and part of the site application and approval process. While the Respondent will be the primary facilitator of any public communications campaign, the A&M System will reasonably work with respondent on the campaign.

21. Is there any database on the RELLIS infrastructure?

Response: The RELLIS campus master plan from 2020 includes a description of much of the existing infrastructure. See the link below.

https://rellis.tamus.edu/wp-content/uploads/2024/03/RELLISCampusMasterPlan_2020-09-compressed.pdf

New infrastructure for these projects would be expected. Expected investments in new infrastructure should be included in the proposal.

https://www.nrc.gov/agreement-states/texas.html https://www.nrc.gov/agreement-states/texas.html https://assets.system.tamus.edu/files/fpc/pdf/DPG_2024.02.01.pdf https://www.nrc.gov/reactors/new-reactors/large-lwr/esp/clinch-river.html https://today.tamu.edu/2024/05/29/texas-am-university-system-to-bring-nuclear-reactors-to-rellis/ https://today.tamu.edu/2024/05/29/texas-am-university-system-to-bring-nuclear-reactors-to-rellis/ https://rellis.tamus.edu/wp-content/uploads/2024/03/RELLISCampusMasterPlan_2020-09-compressed.pdf https://rellis.tamus.edu/wp-content/uploads/2024/03/RELLISCampusMasterPlan_2020-09-compressed.pdf

22. Can manufacturing of reactors be included as part of the response?

Response: Yes, supply chain, manufacturing, or research facilities associated with an eventual power plant would be welcome as part of responses.

23. RFP Section: 4.1.III Technical Proposal

• Method of Finance

• Provide a preliminary multi-year pro-forma with substantiation on rates and expenses. All assumptions used in developing this pro-forma shall be disclosed within your submission.

Is this referring to rates and expenses paid by offtaker to us or is it referring to the rates we receive and the expenses we pay?

Response: It is important for A&M System to know the expected cost of investment required for execution of the respondent’s proposed response. The capital investments on RELLIS campus should be specified. The source of funding for such investments and the timeline (per year) of such investments should be provided. Furthermore, if the proposed project will generate revenue the expected annual revenue should be provided as well as the source of revenue. This information can be provided in a multiyear table with accompanying text to explain the table and describe the rationale and methods used to develop the estimates. The projected costs and revenues should extend over the duration of the lease or relationship proposed with TAMUS.

END OF ADDENDUM NO. 1