SB 925 (Session 2025-2026, California) – Fusion energy: strategic plan, certification, and environmental review
Summary Purpose and Intent
- The bill aims to advance California’s fusion energy initiative by requiring the State Energy Resources Conservation and Development Commission (Energy Commission) to develop a comprehensive strategic plan for fusion energy in California.
- The strategic plan is intended to guide expansion of fusion research, potential commercialization, regulatory framework, licensing and permitting, siting, workforce development, and alignment with state renewable energy and greenhouse gas reduction goals.
- The measure emphasizes a coordinated planning process that builds California’s fusion ecosystem while avoiding a mandated procurement obligation.
Key Provisions and Changes
1) Creation of Chapter 16.5 (Fusion Energy) in the Public Resources Code
- Adds new statutory framework directing the Energy Commission to develop a statewide fusion energy strategic plan.
- Plan components (minimum requirements):
- Locations: identify suitable locations for new fusion R&D facilities, demonstrations, and power plants, with findings from related planning activities.
- Economic and workforce development: analyze safety requirements, workforce training needs, and apprenticeship program development.
- Regulatory framework and permitting roadmap: outline licensing/permitting pathways and coordination with other agencies.
- Alignment with state clean energy goals: ensure compatibility with long-term energy, climate, and biodiversity objectives.
- Non-mandatory nature: plan is advisory and not a sole basis for new procurement mandates.
- Compatibility with existing planning: should build on Section 25302.4 as of Jan 1, 2026 and reference the 2027 Integrated Energy Policy Report.
2) Strategic Plan Timeline and Process
- Public review: the Energy Commission must provide an opportunity for public comment on a draft plan.
- Submittal to Legislature: the plan must be submitted by December 31, 2028.
- Compliance: plan submission must follow Government Code Section 9795 (public accessibility and transparency requirements).
3) Plan Content Details (Chapters)
- Chapter 1: Locations for fusion R&D testing facilities (Section 25995.1)
- Identify opportunities for siting small, medium, and large facilities; consider national capabilities; engage with universities and industry; potentially designate geographic areas to accelerate development.
- Chapter 2: Locations for demonstrations and powerplants (Section 25995.2)
- Assess sites for demonstrations and commercial-scale facilities; consider environmental and use-conflict factors; identify “brightfields” and existing fusion assets.
- Chapter 3: Economic and workforce development (Section 25995.3)
- Analyze safety requirements, skilled workforce needs, and apprenticeship curriculum development.
- Chapter 4: Regulatory framework and permitting roadmap (Section 25995.4)
- Coordinate with agencies to streamline licensing; align with NRC’s fusion machine framework when finalized; define agency roles, deadlines for rule updates, and staffing needs (notably for Radiologic Health Branch and related bodies); include public/stakeholder input.
- Chapter 5: Alignment to state clean energy goals (Section 25995.5)
- Assess how fusion at scale could support renewable and emissions-reduction goals; link policy tools to AB 940 (2025-26), ensuring consistency with broader clean-energy deployment.
4) Expanded Environmental Leadership Certification
- The bill broadens eligibility for Energy Commission environmental leadership development project certifications to include:
- Fusion energy electrical generating facilities
- Fusion energy demonstration facilities
- Fusion energy-related research and development facilities
- Certification would still provide CEQA streamlining benefits and would supersede other regulatory requirements, with stated exceptions.
5) Definitions and Scope (Public Resources Code amendments)
- Expands the definition of “Facility” to include fusion energy facilities once the strategic plan is submitted.
- Clarifies that fusion energy projects become eligible for environmental leadership certification upon plan submission.
6) Related Utility Commission Reference (Public Utilities Code)
- The bill makes non-substantive conforming changes to the existing requirement for a single internet portal for ratepayer-funded energy efficiency programs.
Affected Parties and Impacts
- State agencies: Energy Commission, California Public Utilities Commission (non-substantive alignment), Radiologic Health Branch (within the Department of Public Health), and other relevant state, federal, and local agencies involved in licensing, permitting, and environmental review.
- Fusion energy industry: researchers, developers, potential manufacturers, and facilities planners; benefits from a formalized strategic plan, regulatory roadmap, and potential streamlined permitting.
- Workforce and education: increased focus on safety training, apprenticeships, and curriculum development aligned with industry needs.
- Local governments and communities: opportunities to engage in siting studies, designate geographic acceleration areas, and participate in public comment on the strategic plan.
- Environment and climate policy: aims to align fusion development with California’s long-term renewable energy, emissions reductions, and biodiversity goals without mandating procurement.
Timeline and Process
- Draft plan preparation: to be developed in coordination with federal/state/local agencies and industry (no fixed start date specified in the bill beyond initiating plan development).
- Public review: opportunity for public comment prior to Legislature submission.
- Legislature submission deadline: December 31, 2028.
- Plan integration: must be compliant with Government Code §9795 (public accessibility).
Notes
- The bill clarifies that it does not establish a technology set-aside or mandatory procurement for fusion energy.
- It seeks to position California as a lead innovator and siting location for future fusion facilities, while embedding planning, workforce, and regulatory readiness.
Overall, SB 925 focuses on strategic planning, regulatory readiness, and workforce development to support California’s fusion energy ecosystem, with an emphasis on advisory planning, collaboration, and alignment with broader climate and energy goals.
