Fusion Update: Proposed Federal Streamlining Rules are on the Way

In April 2023, we reported on federal efforts to streamline fusion energy regulations. At that time, the Commissioners of the Nuclear Regulatory Commission (NRC) voted to approve a proposal expected to accelerate the commercialization of fusion energy in the United States. Specifically, the NRC determined that fusion energy should be regulated under the Nuclear Regulatory Commission's byproduct material framework contained in 10 CFR Part 30, “Rules of General Applicability to Domestic Licensing of Byproduct Material,” rather than Part 50, which are the burdensome licensing rules for constructing and operating traditional commercial-scale nuclear fission reactors.

Fusion energy received another boost when the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act of 2024 (ADVANCE Act of 2024) was signed into law in July 2024. According to NRC, the ADVANCE Act requires the NRC to take a number of actions in the areas of licensing of new reactors and fuels, including enhancing the regulatory framework for advanced reactors and fusion technology, and requiring initiatives to support the NRC’s efficient, timely, and predictable reviews of license applications. In particular, the ADVANCE Act affirmed the distinction the NRC had made by introducing a definition of “fusion machine” and including within the definition of “byproduct material” material with radiologic activity as a result of the operation of the fusion machine. 

Following the NRC Commissioners’ vote to regulate fusion machines under Part 30 and the passage of the ADVANCE Act, the NRC has been hard at work preparing proposed rules. After seven NRC meetings, on December 12, 2024, NRC staff sought Commission approval to publish a “Proposed Rule: Regulatory Framework for Fusion Machines”. The staff-proposed rule was specifically tailored for the unique characteristics and safety requirements of fusion machines. Among other elements, the staff-proposed rules: 

• Define fusion machines as a machine that is capable of: (1) transforming atomic nuclei, through fusion processes, into different elements, isotopes, or other particles; and (2) directly capturing and using the resultant products, including particles, heat, or other electromagnetic radiation. 
• Establish a separate application process in Part 30 for fusion machines. 
• Require prospective licensees to submit an environmental report under the NRC’s NEPA review procedures in 10 CFR Part 51. 

 According to NRC’s fusion rulemaking page and rulemaking tracker, the proposed rule is scheduled to be published in the Federal Register on May 28, 2025. Because there may be changes between the staff version submitted in December and the proposed rule as published in the Federal Register, we will report on the proposed rule in more detail once it is released. 

Although these developments occurred under the Biden administration, it appears that they will continue in the current administration. One of the President’s “first day” orders was “Unleashing American Energy”, which required all federal agencies to review existing regulations and policies or other agency actions to identify actions that impose an “undue burden” on development of, among other resources, “nuclear energy resources”. Although it might be argued that fusion is not “nuclear energy,” based on the subsequent actions of the Department of Energy, it appears the E.O. will apply to fusion energy. 

Specifically, new Energy Secretary Chris Wright’s first Secretarial Order dated February 5, 2025, entitled Unleashing the Golden Era of American Energy Dominance states: 

The Department must also prioritize true technological breakthroughs – such as nuclear fusion, high-performance computing, quantum computing, and AI – to maintain America’s global competitiveness. To that end, the Department will comprehensively review its R&D portfolio. As part of that review, the Department will rigorously enforce project milestones to ensure that taxpayer resources are allocated appropriately and cost-effectively consistent with the law. (emphasis added)

In March 2025, Secretary Wright supported fusion in his address to the annual APRA-E conference, stating: 

Fusion has immense promise as a solution to the nation’s and the world’s energy problems, and US efforts to revise its regulatory programs that reflect the inherently lower risks associated with fusion energy compared to fission reactions will go a long way toward turning that promise into reality.