SB 925

SB925:v95#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill

No. 925

An act to amend Section 25545 of, and to add Chapter 16.5 (commencing with Section 25995) to Division 15 of, the Public Resources Code, relating to fusion energy.

LEGISLATIVE COUNSEL'S DIGEST

SB 925, as amended, McNerney. Fusion energy: State Energy Resources Conservation and Development Commission: strategic plan: certification and environmental review.

Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake various actions in furtherance of meeting the state’s clean energy and pollution reduction objectives. Existing law requires the Energy Commission, commission, beginning November 1, 2003, and biennially thereafter, to adopt an integrated energy policy report that contains an overview of major energy trends and issues facing the state, presents policy recommendations based on an in-depth and integrated analysis of the most current and pressing energy issues facing the state, and includes an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation, as specified. Existing law requires the Energy Commission, commission, as part of the 2027 edition of the integrated energy policy report, to include an assessment of the potential for fusion energy to contribute to California’s power supply, as specified.

This bill would require the Energy Commission, commission, in coordination with specified agencies, to develop a strategic plan for the development of fusion energy in California, as specified. The bill would require the Energy Commission commission to submit the strategic plan to the Legislature on or before December 31, 2028.

This bill would require the Energy Commission, commission, in coordination with relevant agencies and the fusion energy industry, to (1) develop a strategy for the expansion and development of fusion research and development in California, (2) develop a strategy for supporting the commercialization of fusion energy in California, (3) develop a regulatory framework for fusion energy and a roadmap for licensing and permitting for new fusion energy research and fusion energy facilities, and (4) assess the level at which fusion energy at scale would best support California’s long-term renewable energy and greenhouse gas emission reduction goals. The bill would require the information described in this paragraph to be included in the strategic plan, as specified.

Existing law authorizes persons proposing specified electrical generation, electrical transmission, hydrogen production, energy storage, and geothermal projects to apply, on or before June 30, 2030, to the Energy Commission commission to certify sites and related facilities as environmental leadership development projects, as specified. Existing law makes a site and related facility certified by the Energy Commission commission subject to streamlining benefits related to the California Environmental Quality Act (CEQA) with no further action by the applicant or the Governor. Under existing law, the Energy Commission’s commission’s certification is in lieu of any permit, certificate, or similar document required by any governmental agency and supersedes any applicable statute, ordinance, or regulation, except as specified.

This bill would expand the types of facilities eligible to be certified as environmental leadership development projects by the Energy Commission commission to include a discretionary project, as described, for the manufacture, production, or assembly of specialized products, components, or systems that are integral to fusion energy.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares all of the following:

(a) Fusion energy holds the potential of generating nearly limitless clean, safe, and firm energy, without producing air pollution, harmful emissions, or long-lasting nuclear waste.

(b) If developed and deployed at scale, fusion energy can advance California’s progress toward its statutory renewable and zero-carbon energy and climate mandates and provide air quality benefits.

(c) The federal Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act of 2024 (Public Law 118-67) requires the United States Nuclear Regulatory Commission to regulate fusion machines under its byproduct materials process, separating nuclear fusion energy regulations from nuclear fission on the basis that fusion facilities may not have the potential to cause large radiation doses to workers or the public in accident scenarios and cannot produce “runaway” reactions.

(d) California’s agreement state status under the National Materials Program delegates authority from the Nuclear Regulatory Commission to the state’s Radiologic Health Branch of the State Department of Public Health for the radiological licensing and registration of fusion machines.

(e) California enacted Assembly Bill 1172 of the 2023–24 Regular Session (Chapter 360 of the Statutes of 2023), requiring the State Energy Resources Conservation and Development Commission to assess the potential for fusion energy to contribute to the state’s energy supply as part of the 2027 integrated energy policy report, including identifying the necessary regulatory and policy actions required to deploy fusion energy.

(f) California enacted Senate Concurrent Resolution No. 25 of the 2025–26 Regular Session (Resolution Chapter 161 of the Statutes of 2025), resolving that the State of California supports developing the fusion energy ecosystem, including the future workforce and supply chain required to advance fusion research, development, demonstration, and deployment, with the goal of siting a fusion pilot plant in California by the 2040s.

(g) The Governor’s 2025 California Jobs First State Economic Blueprint identifies fusion as one of several emerging sectors with significant investment or high strategic importance to the innovation ecosystem.

(h) California enacted Assembly Bill 940 of the 2025–26 Regular Session (Chapter 333 of the Statues of 2025), requiring the Governor’s Office of Business and Economic Development to develop industry strategies for the strategic sectors identified in the Governor’s 2025 California Jobs First State Economic Blueprint to ensure an industry-specific approach that builds on the strategies outlined in the blueprint and outlines the activities and investments necessary to ensure that these sectors continue to grow in California.

(i) California is home to the largest fusion ecosystem in the United States, hosting the largest fusion laboratories in the nation, more than one-quarter of all United States fusion energy startups, and globally recognized academic programs to develop the fusion science and engineering workforce.

(j) The San Diego Regional Economic Development Corporation’s 2025 study, Catalyzing California’s Fusion Advantage, found California’s fusion energy industry currently generates approximately $1.4 billion dollars in annual economic output, and could grow to $12.5 billion dollars annually and support 43,000 annual jobs. The report also found global fusion investment has surpassed $9.7 billion dollars, demonstrating sustained and accelerating private-sector confidence.

(k) Since fusion energy projects may take several years to develop, a comprehensive planning process must begin now to ensure California retains its strategic advantage and grows its fusion ecosystem.

SEC. 2.

Section 25545 of the Public Resources Code is amended to read:

25545.

For purposes of this chapter, all of the following definitions apply:

(a) “California Native American tribe” has the same meaning as set forth in Section 21073.

(b) “Facility” means any of the following:

(1) A solar photovoltaic or terrestrial wind electrical generating powerplant with a generating capacity of 50 megawatts or more and any facilities appurtenant thereto.

(2) An energy storage system as defined in Section 2835 of the Public Utilities Code that is capable of storing 200 megawatthours or more of energy.

(3) A stationary electrical generating powerplant using any source of thermal energy, with a generating capacity of 50 megawatts or more, excluding any powerplant that burns, uses, or relies on fossil or nuclear fission fuels.

(4) A discretionary project as described in Section 21080 for which the applicant has certified that a capital investment of at least two hundred fifty million dollars ($250,000,000) will be made over a period of five years and the discretionary project is for (A) the manufacture, production, or assembly of an energy storage system or component manufacturing, wind system or component manufacturing, and solar photovoltaic energy system or component manufacturing, or (B) the manufacture, production, or assembly of specialized products, components, or systems that are integral to renewable energy, energy storage technologies, or fusion energy.

(5) An electrical transmission line carrying electricity from a facility described in paragraph (1), (2), or (3) that is located in the state to a point of junction with any interconnected electrical transmission system.

(6) A hydrogen production facility and associated onsite storage and processing facilities that do not derive hydrogen from a fossil fuel feedstock and that receive funding from any of the following:

(A) The Hydrogen Program established pursuant to Section 25664.1.

(B) Section 91530, as added by the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024.

(C) The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) authorized by Article 15 (commencing with Section 12100.160) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, as awarded by the United States Department of Energy Office of Clean Energy Demonstrations.

(7) A geothermal powerplant or a project that comprises multiple geothermal powerplants on a single site.

(c) “Site” means any location on which an eligible facility is constructed or is proposed to be constructed.

SEC. 3.

Chapter 16.5 (commencing with Section 25995) is added to Division 15 of the Public Resources Code, to read:

CHAPTER 16.5. Fusion Energy

25995.

(a) (1) The commission, in coordination with any relevant federal, state, or local agency, shall develop a strategic plan for the development of fusion energy in California.

(2) The strategic plan shall do all of the following:

(A) Serve an advisory function and not form the sole basis for a new procurement mandate or requirement.

(B) Serve, where applicable, to build on Section 25302.4, as that section read on January 1, 2026, and propose actions to address the needs related to fusion energy identified in the 2027 edition of the integrated energy policy report.

(C) Emphasize and prioritize near-term actions related to expanding research and development partnerships, increasing collaborations between the United States Department of Energy and the State of California, increasing workforce development, and growing the California fusion ecosystem and supply chain.

(b) (1) The commission shall provide an opportunity for public review and comment on a draft strategic plan before it is submitted to the Legislature.

(2) (A) The commission shall submit the strategic plan to the Legislature on or before December 31, 2028.

(B) The strategic plan submitted to the Legislature pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.

(c) The strategic plan shall include, at minimum, all of the following chapters:

(1) Identification of suitable and recommended locations, or criteria for suitable locations, for the expansion or development of new fusion research and development testing facilities, including the findings and recommendations resulting from activities undertaken pursuant to Section 25995.1.

(2) Identification of suitable and recommended locations, or criteria for suitable locations, for the development of new fusion demonstrations and powerplants, including the findings and recommendations resulting from activities undertaken pursuant to Section 25995.2.

(3) Economic and workforce development, including, but not limited to, an analysis of occupational safety requirements, the need to require the use of a skilled and trained workforce to perform all work, and the need for the Division of Apprenticeship Standards to develop curriculum for in-person classroom and laboratory advanced safety training for workers. In developing this chapter, the commission shall consult with representatives of key industries, colleges and universities, labor organizations, and apprenticeship programs that would be involved in retiring technology risks and training and dispatching workforces.

(4) Regulatory framework and roadmap for licensing and permitting, including the findings and recommendations resulting from activities undertaken pursuant to Section 25995.3.

(5) Alignment to state clean energy goals, including the findings and recommendations resulting from activities undertaken pursuant to Section 25995.4.

(d) This chapter does not modify the authority of state agencies over project-specific siting and permitting.

25995.1.

(a) The commission, in coordination with any relevant federal, state, or local agency and the fusion energy industry, shall develop a strategy for the expansion and development of fusion research and development in California.

(b) As part of this strategy, the commission shall do both of the following:

(1) Identify opportunities and make recommendations for siting or expanding small, medium, and large fusion research and development facilities in California to drive sustainable economic growth, innovation, and access to jobs, consistent with the Jobs First Economic Blueprint, including options for siting a national integrated facility, such as a fusion prototypical neutron source, volumetric neutron source, integrated blanket and fuel cycle facility, or other capability, in the future.

(2) Identify criteria for suitable locations for expanding fusion research and development.

(c) In evaluating and identifying criteria for suitable locations, the commission shall consider all of the following:

(1) Capabilities that best serve the United States fusion industry, create jobs, and keep California at the forefront of fusion innovation.

(2) Opportunities for developing or expanding research and development test stands on public and private lands, including University of California campuses, and other colleges, universities, and vocational schools.

(3) Opportunities for siting a large integrated fusion research and development facility in partnership with government and industry.

(d) The commission may refer to the federal Fusion Energy Sciences Advisory Committee’s (FESAC) Powering the Future: Fusion & Plasmas long-range plan, the 2024 draft report of the FESAC Subcommittee on Facilities Construction Projects, the United States Department of Energy Fusion Science and Technology Roadmap, and other relevant strategic planning documents to identify testing facilities applicable to this section.

(e) The commission may engage with the United States Department of Energy to identify opportunities and resources available for siting new, or expanding, testing facilities in California.

(f) The commission shall solicit interest from local governments, colleges and universities, economic development organizations, nongovernmental organizations, and the fusion energy industry to identify locations with existing fusion assets, such as buildings, equipment, and testing facilities, that may be leveraged to accelerate deployment or expansion of facilities and to understand potential incentives and cost-share arrangements to support new or expanded testing facilities.

(g) The commission may recommend establishing designated geographic areas to accelerate the development of fusion technologies and promote the sustainable growth of the California fusion industry.

(h) The findings and recommendations resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to identification of suitable and recommended locations, or criteria for suitable locations, for new fusion research and development testing facilities, as specified in paragraph (1) of subdivision (c) of Section 25995.

25995.2.

(a) The commission, in coordination with any relevant federal, state, or local agency and the fusion energy industry, shall develop a strategy for supporting the commercialization of fusion energy in California.

(b) As part of this strategy, the commission shall identify and recommend suitable locations, or criteria for suitable locations, for the development of fusion energy facilities.

(c) In identifying suitable locations, the commission shall consider all of the following:

(1) Existing data on fusion energy resource potential and commercial viability.

(2) Existing and necessary transmission infrastructure.

(3) Protection of cultural and biological resources with the goal of prioritizing least-conflict areas.

(d) The commission shall make recommendations regarding potential significant adverse environmental impacts and use conflicts, such as avoidance, minimization, monitoring, mitigation, and adaptive management, consistent with California’s long-term renewable energy, greenhouse gas emissions reduction, and biodiversity goals.

(e) The commission shall solicit interest from local governments, economic development organizations, nongovernmental organizations, and the fusion energy industry to do both of the following:

(1) Identify locations with existing fusion assets, such as buildings, equipment, testing facilities, and potential brightfields, that may be leveraged to accelerate the deployment of fusion energy facilities.

(2) Understand incentives and proposed cost-sharing opportunities.

(f) The findings and recommendations resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to identification of suitable and recommended locations, or criteria for suitable locations, for the development of new fusion demonstrations and powerplants, as specified in paragraph (2) of subdivision (c) of Section 25995.

25995.3.

(a) The commission, in coordination with any relevant federal, state, or local agency and the fusion energy industry, shall develop a regulatory framework for fusion energy and a roadmap for licensing and permitting, to establish a coordinated, comprehensive, and efficient pathway for new fusion energy research and fusion energy facilities.

(b) The commission shall align the regulatory framework and roadmap for licensing and permitting with the Nuclear Regulatory Commission’s rule establishing a regulatory framework for fusion machines, once finalized and promulgated by the Nuclear Regulatory Commission. machines.

(c) In developing the regulatory framework and roadmap for licensing and permitting, the commission shall do all of the following:

(1) Identify needed updates to relevant authorities, rules, regulations, and guidance, and establish deadlines for implementation.

(2) Recommend deadlines for state agencies to update their own rules to ensure compatibility and compliance.

(3) Clearly define roles, responsibilities, and decisionmaking authority, under the California Environmental Quality Act (Division 13 (commencing with Section 21000)).

(4) Identify any additional staffing or funding needs at Report on staff and funding needs as determined by the Radiologic Health Branch of the State Department of Public Health and other agencies to meet the requirements of this section.

(d) The commission shall provide an opportunity for stakeholder input in the development and communication of the regulatory framework and permitting roadmap, and provide an opportunity for public comment.

(e) The findings and recommendations resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan relating to a regulatory framework and roadmap for licensing and permitting, as specified in paragraph (4) of subdivision (c) of Section 25995.

25995.4.

(a) The commission, in coordination with any relevant federal, state, or local agency, shall assess the level at which fusion energy at scale would best support California’s long-term renewable energy and greenhouse gas emission reduction goals.

(b) The commission shall ensure policy tools supporting clean energy deployment are available to fusion developers and aligned to the findings of Chapter 333 of the Statutes of 2025 (Assembly Bill 940 of the 2025–26 Regular Session).

(c) The findings and recommendations resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to the alignment to state clean energy goals, as specified in paragraph (5) of subdivision (c) of Section 25995.

25995.5.

This chapter does not create a technology set-aside, mandatory minimum, or mandate procurement of fusion energy by load-serving entities, as defined in Section 380 of the Public Utilities Code.

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REVISIONS: Heading—Lines 2, 3, and 4.

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