Fusion energy: State Energy Resources Conservation and Development Commission: strategic plan: certification and environmental review.

The deadline for the State Energy Resources Conservation and Development Commission to submit its fusion energy strategic plan to the Legislature was extended from December 31, 2028 to December 31, 2029, giving the commission an additional year.

In the definition of 'facility' eligible for environmental leadership development project certification (Section 25545(b)(3)), the exclusion was broadened from 'fossil or nuclear fission fuels' to 'fossil or nuclear fuels.' This means actual fusion powerplants using thermal energy would no longer qualify as eligible facilities under this paragraph, though fusion-related manufacturing facilities remain eligible under paragraph (4)(B).

Section 25995.3(c) was simplified in three ways: (1) the requirement to 'identify needed updates' to authorities and 'establish deadlines' was softened to simply 'identify relevant authorities' and 'potential milestones'; (2) the requirement to recommend deadlines for state agencies to update their own rules was removed entirely; and (3) the requirement to report on staff and funding needs was removed entirely.

The deadline for the Energy Commission to submit the fusion energy strategic plan to the Legislature was extended from December 31, 2028 to December 31, 2029.

In Section 25995.3(c)(1), the requirement to 'establish deadlines for implementation' of regulatory updates was softened to 'establish potential milestones for implementation,' giving the commission more flexibility.

In Section 25995.3(c), the old provision requiring the commission to 'identify any additional staffing or funding needs' as determined by the Radiologic Health Branch was replaced with a requirement that the commission 'consult' the Radiologic Health Branch and other agencies to meet the section's requirements, shifting from a reporting obligation to an active consultation duty.

In Section 25995.3(b), the phrase 'once finalized and promulgated by the Nuclear Regulatory Commission' was removed after reference to NRC rules on fusion machines, simplifying the alignment requirement.

Section 1(a) findings language was changed from 'nearly limitless clean, safe, and firm energy' to simply 'clean, safe, and firm energy,' removing the superlative qualifier.

Section 25995.3(c)(4) changed from requiring the Energy Commission to 'identify any additional staffing or funding needs at the Radiologic Health Branch' to requiring it to 'report on staff and funding needs as determined by the Radiologic Health Branch.' This gives the Radiologic Health Branch primary authority to determine its own staffing and funding requirements rather than having the Energy Commission make that determination.

Assembly Member Calderon added as principal coauthor, along with additional coauthors (Senator Valladares; Assembly Members Alanis, Alvarez, Avila Farias, and Ellis), reflecting the bill's progression through the Assembly.

The types of facilities eligible for environmental leadership development project certification were narrowed. The old version covered 'fusion energy electrical generating facilities, demonstration facilities, or applicable research and development facilities.' The new version covers only 'a discretionary project, as described, for the manufacture, production, or assembly of specialized products, components, or systems that are integral to fusion energy.' This shifts focus from the fusion plants themselves to the supply chain and manufacturing side.

Senator Hurtado was added as a coauthor alongside Senators Blakespear and Caballero.

The citation in Section 1(f) was corrected from 'Senate Concurrent Resolution 25' to 'Senate Concurrent Resolution No. 25' and '(Chapter 161 of the Statutes of 2025)' to '(Resolution Chapter 161 of the Statutes of 2025)' to properly reference a concurrent resolution rather than a statute.

The entire amendment to Section 589 of the Public Utilities Code was removed. This section had required electrical and gas corporations to cooperate in establishing a single public website providing up-to-date information on ratepayer-funded energy efficiency assistance programs, including types of measures installed, ZIP Code locations, funds expended, and expected energy savings.

In Section 25545(b)(4), the list of eligible discretionary projects for environmental leadership development project certification was corrected. The prior version contained a drafting error with 'energy storage technologies' listed twice; the amended version replaces the duplicate with 'fusion energy,' so the eligible categories are now: renewable energy, energy storage technologies, or fusion energy.

The fiscal committee review designation changed from 'no' to 'yes,' meaning the bill now requires review by the appropriate fiscal committee before proceeding, indicating the amendment introduced new budgetary considerations.

Added a new Chapter 16.5 (Sections 25995-25995.5) to Division 15 of the Public Resources Code establishing a comprehensive fusion energy planning framework requiring the Energy Commission to develop a strategic plan for fusion energy development in California.

Adds legislative findings and declarations establishing policy context, including California's largest-in-nation fusion ecosystem, federal NRC regulatory framework for fusion machines under Public Law 118-67, the state's agreement state status delegating radiologic licensing to the Department of Public Health, and economic projections of up to $12.5 billion in annual output and 43,000 jobs.

Explicitly states in Section 25995.5 that the new chapter does not create a technology set-aside, mandatory minimum, or mandate procurement of fusion energy by load-serving entities, limiting the bill to planning and advisory functions.

Requires the Energy Commission to submit the fusion energy strategic plan to the Legislature on or before December 31, 2028, after providing an opportunity for public review and comment on a draft.

Expands the definition of 'facility' in Section 25545 of the Public Resources Code to include fusion energy electrical generating facilities, demonstration facilities, or applicable R&D facilities as eligible for environmental leadership development project certification (CEQA streamlining), contingent on submission of the strategic plan.

Requires the strategic plan to include five chapters: suitable locations for R&D testing facilities, suitable locations for demonstrations and powerplants, economic and workforce development, a regulatory framework and licensing/permitting roadmap aligned with NRC rules, and alignment to state clean energy goals.

Requires the Energy Commission to develop a regulatory framework and roadmap for fusion energy licensing and permitting, including identifying needed updates to state rules, defining CEQA roles and responsibilities, and identifying staffing or funding needs at the Radiologic Health Branch of the State Department of Public Health.

Amends Section 25545 paragraph (4) to replace the prior eligibility category for renewable energy and energy storage component manufacturing with fusion energy as a qualifying discretionary project type for environmental leadership development certification.

Fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now has fiscal implications due to the new planning and coordination requirements placed on state agencies.