Chapter 19 - Fusion Research and Development Innovation Initiative

California Public Resources Code — §§ 25997-25997.7

Sections (5)

Added by Stats. 2025, Ch. 334, Sec. 2. (SB 80) Effective January 1, 2026. Conditionally operative on date prescribed by Section 25997.5. Repealed as of January 1, 2028, pursuant to Section 25997.7.

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

(a)“Financial incentive” includes a contract, grant, loan, or other appropriate funding mechanism.

(b)“Fusion” means a reaction in which at least one heavier, more stable

nucleus is produced from at least one lighter, less stable nucleus, typically through high temperatures and pressures, and emitting energy as a result.

(c)“Fusion energy” means the product of fusion reactions inside a fusion device that is used to generate electricity or other commercially usable forms of energy.

(d)“Initiative” means the Fusion Research and Development Innovation Initiative established pursuant to Section 25997.1.

§ 25997.1

Added by Stats. 2025, Ch. 334, Sec. 2. (SB 80) Effective January 1, 2026. Conditionally operative on date prescribed by Section 25997.5. Repealed as of January 1, 2028, pursuant to Section 25997.7.

(a)(1) The Fusion Research and Development Innovation Initiative is hereby established within the commission to accelerate the development and growth of fusion energy by advancing fusion science and technology.

(2)The commission, in consultation with the Governor’s Office of Business and Economic Development and the Public Utilities Commission, shall establish and administer the initiative to provide financial incentives for projects that advance technologies for fusion energy benefiting California.

(b)The commission may refer to the federal Fusion Energy Sciences Advisory Committee’s (FESAC) Powering the Future: Fusion & Plasmas long-range plan and the 2024 draft report of the FESAC

Subcommittee on Facilities Construction Projects to determine the highest priority capabilities.

(c)The commission may adopt guidelines governing the award, eligibility, and administration of funding pursuant to this chapter.

§ 25997.3

Added by Stats. 2025, Ch. 334, Sec. 2. (SB 80) Effective January 1, 2026. Conditionally operative on date prescribed by Section 25997.5. Repealed as of January 1, 2028, pursuant to Section 25997.7.

(a)The commission shall provide financial incentives pursuant to Section 25997.1 for any of the following:

(1)To advance research and development in fusion energy and support the establishment or expansion of testing

facilities addressing gaps in fusion science and technology.

(2)To accelerate the deployment of new research and technology capabilities that support the commercialization of fusion energy.

(3)To achieve the

initiative’s goal of delivering the world’s first fusion energy pilot

project in the state by the 2040s.

(b)In administering the initiative, the commission may do all of the following:

(1)Solicit applicants and award financial incentives using a competitive award process. The commission may noncompetitively award follow-on financial incentives to awardees of a prior competitive award process.

(2)Use the competitive award process of another organization to award funds or provide follow-on funding for an entity previously selected through

a competitive award process for the purposes of attracting significant federal or private funding for the projects or of accelerating the delivery of program benefits.

(3)Notwithstanding any other law, noncompetitively award financial incentives to an entity that will use the moneys as matching funds for federally awarded moneys.

(4)Noncompetitively award financial incentives to national laboratories and any public entities.

(5)Noncompetitively award financial incentives to any entity when the

cost to the state is reasonable and the commission makes any of the following determinations:

(A)The expertise, service, or product is unique.

(B)A competitive solicitation would frustrate obtaining necessary information, goods, or services in a timely manner.

(C)When it is determined by the commission to be in the best interests of the state.

(c)The commission shall not noncompetitively award funds pursuant to this chapter unless both of the following conditions are met:

(1)The commission, at least 60 days before taking an action pursuant to this chapter, notifies the Joint Legislative Budget Committee and the relevant policy committees in both houses of the Legislature, in writing, of its intent to take the proposed actions.

(2)The Joint Legislative Budget Committee either approves or does not disapprove the proposed action within 60 days from the date of notification required by paragraph (1).

§ 25997.5

Added by Stats. 2025, Ch. 334, Sec. 2. (SB 80) Effective January 1, 2026. Repealed as of January 1, 2028, pursuant to Section 25997.7.

(a)This chapter shall be liberally construed to maximize the commission’s ability to utilize and award federal funds expeditiously and in accordance with federal law.

(b)This chapter shall become operative, and its implementation is

contingent, upon an appropriation for its purposes in the annual Budget Act or another act.

§ 25997.7

Added by Stats. 2025, Ch. 334, Sec. 2. (SB 80) Effective January 1, 2026. Conditionally operative on date prescribed by Section 25997.5. Repealed as of January 1, 2028, by its own provisions. Note: Repeal affects Ch. 19, commencing with Section 25997.

This chapter shall remain in effect only until January 1, 2028, and as of that date is repealed.