Newsom Signs McNerney’s Bill to Accelerate Development of Fusion Energy
Gov. Gavin Newsom has signed Sen. Jerry McNerney’s SB 925, which accelerates the development of fusion energy in California – a potential clean power gamechanger.
SB 925 requires the California Energy Commission (CEC) to develop a strategic plan to advance fusion energy in California. The plan will identify opportunities to expand research and development, locate potential sites for fusion power plants, and create licensing and permitting processes for fusion facilities.
“California has made substantial progress towards its climate goals. But fusion energy has the potential to provide nearly limitless clean, safe, and reliable power, while creating an economic ecosystem that will rival Silicon Valley,” said Sen. McNerney, D-Pleasanton. “SB 925 lays the groundwork for widespread adoption of fusion energy in the state and will help ensure that California is a fusion technology leader in the coming decades.”
Gov. Newsom signed SB 925 on Tuesday at a ceremony at UC Berkeley’s Campbell Hall Quantum Nanoelectronics Lab. SB 925 was sponsored by General Atomics, a California-based company that has been an international leader in fusion research since the 1950s.
“SB 925 will ensure California takes a long-term, strategic approach to fusion energy. From research and development to demonstration, deployment, manufacturing, and workforce training, the opportunities presented by fusion are transformative. We were proud to sponsor SB 925 and commend Senator McNerney for his leadership as we work to deliver a new era of virtually limitless clean fusion energy,” said Dr. Anantha Krishnan, senior vice president of the Energy Group at General Atomics.
Nuclear fusion energy mimics the power of the sun by combining atoms to produce clean energy. Unlike nuclear fission energy, fusion is safe, does not produce long-lived radioactive waste, and has no risk of nuclear accidents.
While fusion energy development is still in the research phase, there have been several significant advancements in developing the technology. In 2022, Lawrence Livermore National Laboratory, in Sen. McNerney’s district, achieved “target gain” at their National Ignition Facility – meaning more energy was produced from the reaction than was spent to create the reaction. China’s main fusion device held a fusion reaction for 17 minutes in 2025, shattering the previous record of 6 minutes.
California has the largest fusion energy economy in the United States. One third of all U.S.-based fusion energy startup companies call California home, supporting more than 20,000 jobs at national laboratories, national user facilities, the University of California and California State University systems, and other academic institutions, while leveraging billions of dollars in public and private investments.
Still, California is at risk of falling behind. Other states are leading the way in terms of planning, permitting, and establishing regulatory frameworks. Additionally, fusion companies have sought greener pastures to access incentives or regulatory certainty that California has not yet matched. In 2025, Xcimer Energy decided to open a headquarters in Colorado, and expand manufacturing in Arizona. Pacific Fusion also chose to build their demonstration facility in New Mexico instead of California.
California has taken a step to study the feasibility of fusion energy through AB 1172 (Calderon, 2023). While this study is ongoing, the fusion industry is blooming, and many companies are looking to make large infrastructure investments in the near-term. Filling in regulatory gaps and developing a statewide roadmap for fusion will help these jobs and investments stay in California.
SB 925:
- Requires the CEC to create a strategic plan for fusion energy in the state
- Allows fusion component manufacturing to be eligible for the CEC’s accelerated permitting process.
Sen. Jerry McNerney is chair of the Senate Revenue and Taxation Committee, and his 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.
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