Energy: Fusion Research and Development Innovation Hub Program.

Senators Caballero and McNerney's fusion energy initiative establishes three regional innovation hubs across California to accelerate the development of fusion power, aiming to host the nation's first fusion energy pilot plant by the 2030s. The program, overseen by the State Energy Resources Conservation and Development Commission, designates research centers in Southern California, the Central Valley, and the San Francisco Bay Area to coordinate fusion science advancement and technology commercialization efforts.

Each hub must incorporate existing national fusion infrastructure while developing new research facilities that explore diverse approaches to fusion energy, including magnetic confinement and inertial confinement systems. The legislation requires hubs to establish apprenticeship programs with academic institutions and create employment pathways in the fusion sector. California currently hosts one-third of U.S. fusion energy startups and supports over 20,000 jobs in related research and development positions across national laboratories, universities, and private industry.

The bill creates the Fusion Research and Development Fund to provide grants to the designated hubs for deploying new research capabilities and advancing fusion technologies. The Energy Commission, in consultation with the Governor's Office of Business and Economic Development and University of California leadership, must establish funding priorities and selection criteria for grant recipients. Implementation of the program remains contingent on legislative appropriation through the state budget process.

This initiative builds upon existing state requirements for the Energy Commission to assess fusion energy's potential contribution to California's power supply, as mandated in the 2027 integrated energy policy report. The program aligns with federal fusion development efforts, including the Department of Energy's Fusion Energy Strategy 2024 and the regulatory framework established by the ADVANCE Act of 2023, which created distinct oversight approaches for fusion versus nuclear fission technologies.