Fusion energy research, development, and demonstration activities

Section 307 of the Department of Energy Research and Innovation Act (42 U.S.C. 18645; Public Law 115–246) is amended— (1) by redesignating subsections (j), (k), (l), (m), (n), (o), (p), (q), and (r) as subsections (o), (l), (p), (q), (r), (s), (t), (u), and (x), respectively; (2) in subsection (a)— (A) by striking section 209 of the Department of Energy Organization Act (42 U.S.C. 7139) and; and (B) by inserting, support activities that seek to demonstrate a sustained burning plasma in a fusion device, after fusion applications; (3) except in paragraph (2)(I) of subsection (r), as so redesignated, by striking Director each place it appears and inserting Secretary; (4) by amending subsections (b) through (g) to read as follows: (b) Fusion materials, blanket, and fuel cycle research and development (1) In general As part of the activities authorized in section 978 of the Energy Policy Act of 2005 (42 U.S.C. 16318) the Secretary shall carry out research and development activities to— (A) identify, characterize, and demonstrate materials that can endure the neutron, plasma, heat fluxes, and corrosion expected in a fusion energy system; (B) address challenges to establishing sustainable fuel cycles for fusion energy systems, including the development of blankets for fuel breeding; (C) manage materials and byproduct that arise from fusion energy systems, including— (i) characterizing activated and tritiated materials; (ii) developing disposal pathways for fusion-relevant materials; (iii) recycling and reusing activate and tritiated materials; (iv) classifying fusion-relevant waste; and (v) planning for the decommissioning of fusion facilities; (D) when appropriate, leverage public-private partnerships and collaborate with international partners to maximize the impact of the investment of Federal resources to accelerate the commercialization of fusion power; and (E) coordinate research and development activities carried out under this section with the milestone-based fusion energy development program established under subsection (i), the demonstration program under subsection (j), and other relevant public-private partnerships. (2) Funding (A) Fiscal year 2027 There is appropriated to the Secretary $800,000,000, to remain available until expended, for fiscal year 2027 to carry out activities described in paragraph (1). (B) Authorization of appropriations Out of funds authorized to be appropriated under subsection (x), there is authorized to be appropriated to the Secretary $150,000,000 for each of fiscal years 2027 through 2031 to carry out activities described in paragraph (1). (c) Supply chain for fusion technologies (1) In general The Secretary, in collaboration with the Secretary of Commerce, shall carry out research, development, demonstration, and commercial application activities to establish reliable supply chains for critical fusion energy manufacturing equipment and other critical fusion energy technologies, including the following: (A) High temperature superconducting magnets. (B) Lasers and components of such lasers relevant to fusion energy systems. (C) Systems that inject and track targets in a fusion chamber. (D) Systems related to the precision of manufacturing fusion targets. (E) Fusion chambers or vacuum vessels, including any component of such chambers or vessels. (F) Blanket systems. (G) Fuel production, handling, and storage systems and components of such systems. (H) Heating systems. (I) Cooling system components. (J) High-power capacitors and components of such capacitors. (K) Plasma compression systems. (L) High-power switches. (M) High-voltage conductors and insulators. (N) Plasma formation devices. (O) Dielectric fluids and systems. (P) Controls equipment. (Q) Any other technology identified by the Secretary. (2) Funding There is appropriated to the Secretary $100,000,000, to remain available until expended, for fiscal year 2027 to carry out activities described in paragraph (1). (d) Tokamak and stellarator research and development The Secretary shall support research and development activities and facility operations to optimize the tokamak and stellarator approaches to fusion energy. (e) Inertial fusion research and development (1) In general The Secretary shall carry out a program of research and technology development in inertial fusion for energy applications, including ion beam, laser, and pulsed power fusion systems. (2) Activities As part of the program described in paragraph (1), the Secretary shall support activities at and partnerships with universities and the National Laboratories to— (A) develop novel target designs; (B) support modeling of various inertial fusion energy concepts and systems; (C) develop diagnostic tools; and (D) improve inertial fusion energy driver technologies. (3) Authorization of appropriations Out of funds authorized to be appropriated under subsection (x), there is authorized to be appropriated to the Secretary to carry out the activities described in this subsection $50,000,000 for each of fiscal years 2027 through 2031. (f) Alternative concepts (1) In general The Secretary shall support research and development activities and facility operations at institutions of higher education, National Laboratories, and private facilities in the United States for a portfolio of alternative fusion energy concepts that may provide solutions to significant challenges to the establishment of a commercial fusion power plant, prioritized based on the ability of the United States to play a leadership role in the international fusion research community. (2) Activities Fusion energy concepts and activities explored under paragraph (1) may include the following: (A) Field-reversed configuration concepts. (B) Levitated dipole concepts. (C) Magnetic mirror concepts. (D) Magnetized target fusion energy concepts. (E) Other promising fusion energy concepts identified by the Secretary that are not otherwise supported by the Secretary under subsections (d) and (e). (3) Authorization of appropriations Out of funds authorized to be appropriated under subsection (x), there is authorized to be appropriated to the Secretary $50,000,000 for each of fiscal years 2027 through 2031 to carry out this subsection. (g) Coordination with ARPA-E The Secretary shall coordinate with the Director of the Advanced Research Projects Agency-Energy (referred to in this subsection as ARPA-E) to— (1) assess the potential for any fusion energy project supported by ARPA-E to represent a promising approach to a commercially viable fusion power plant; (2) determine whether the results of any fusion energy project supported by ARPA-E merit the support of follow-on research activities carried out by the Office of Fusion and (3) avoid the unintentional duplication of activities.; (5) in subsection (i)— (A) in paragraph (2)— (i) in the heading, by striking Purpose and inserting Activities; (ii) by striking The purpose of the program established by paragraph (1) shall be to and inserting the following: (A) In general The program established by paragraph (1) shall; and (iii) by adding at the end the following new subparagraph: (B) Funding In addition to amounts otherwise available, there is appropriated to the Secretary $2,000,000,000 for fiscal year 2027, to remain available until expended, to carry out activities pursuant to this subsection.; and (B) by striking paragraph (10); (6) by inserting after subsection (i) the following new subsections: (j) Milestone-based demonstration program (1) In general Not later than 6 months after the date of the enactment of this subsection, the Secretary shall carry out a program to demonstrate a variety of fusion power technologies, including such technologies that generate the following: (A) Electricity. (B) Thermal energy for cogeneration, industrial purposes, district energy, community heating, and desalination. (C) Hydrogen. (D) Radioisotopes. (2) Eligibility (A) In general Any non-public entity, or consortia thereof, is eligible to participate in the program carried out under paragraph (1) provided that the Secretary has determined such entity, or consortia thereof, has the necessary resources and expertise to construct a fusion pilot plant. (B) Partnerships An entity described in subparagraph (A) may partner with a public entity to carry out this section. (3) Requirements In carrying out the demonstration program under paragraph (1), the Secretary shall carry out the following: (A) Request proposals from eligible entities, as determined by the Secretary under subparagraph (A) of paragraph (2), that include proposed technical and commercial application milestones, including estimated timelines relating to and total costs for the construction of a fusion pilot plant. (B) Establish criteria for the evaluation of any such proposal, including relating to the following: (i) The likelihood that the operating cost of a commercial unit related to a proposed fusion pilot plant is cost competitive in a relevant market. (ii) The technology readiness level of a proposed fusion power technology related to such plant. (iii) The technical abilities and qualification of such an eligible entity to demonstrate a proposed fusion pilot plant. (iv) The business model, commercial expertise, and financial qualifications of such an eligible entity. (v) The capacity of such an eligible entity to satisfy cost-share requirements of the Department. (C) Establish by mutual agreement with an eligible entity selected by the Secretary the following: (i) A rigorous technical and financial review process to develop and make publicly accessible milestones for such eligible entity. (ii) A predetermined amount to be awarded by the Secretary to such eligible entity upon satisfaction of such milestones. (D) Award funding to such an eligible entity— (i) in the predetermined amount established under subparagraph (C)(ii); or (ii) in an amount for an expense the Secretary determines to be reimbursable, in accordance with any terms negotiated for such funding. (E) Communicate regularly with selected eligible entities and, if the Secretary deems appropriate, exercise small amounts of flexibility for technical milestones as projects mature. (4) Awards For the program established under paragraph (1)— (A) a selected eligible entity shall be responsible for all costs until milestones referred to in paragraph (3)(C) are achieved, reviewed, and verified by the Department; (B) an award provided by the Secretary for the successful achievement of a milestone shall not exceed fifty percent of the total cost incurred by the selected eligible entity to achieve the milestone; (C) if a selected eligible entity does not meet the milestones, the Secretary may end the partnership with an award recipient and use the remaining funds in the ended agreement for new or existing projects carried out under this section; and (D) consistent with the existing authorities of the Department, the Secretary may end the partnership with an selected eligible entity for cause during the performance period. (5) Consultation In carrying out the demonstration program under paragraph (1), and in a manner that protects any confidential information of a selected eligible entity, the Secretary shall consult with relevant experts, including the following: (A) Experts from the following: (i) Private fusion industry entities, and any suppliers and vendors of such entities. (ii) National Laboratories. (iii) Environmental and public health and safety. (iv) Institutions of higher education. (B) Customers and end users of fusion power, including electric utilities. (C) Potential end users of thermal energy or other fusion power technologies described in paragraph (1). (6) Fusion pilot plant defined In this subsection, the term fusion pilot plant means a fusion facility that can demonstrate at least 50 megawatts of net electricity supplied to the electric grid for more than 3 continuous hours, with the goal of demonstrating the suitability of the design of such facility for commercial application of fusion power. (7) Funding There is appropriated $3,000,000,000 to the Secretary to carry out the program under this subsection until expended. (k) Authorization of appropriations for milestone-based programs Out of funds authorized to be appropriated under subsection (x), there is authorized to be appropriated to the Secretary, to remain available until expended, $150,000,000 for each of fiscal years 2027 through 2031, to carry out subsections (i) and (j).; (7) by inserting after subsection (l), as so redesignated, the following new subsections: (m) Intellectual property protections Unless otherwise required by chapter 18 of title 35, United States Code, or the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.)— (1) an eligible entity and any third-party contractor or subcontractor of such eligible entity shall retain all rights to— (A) background intellectual property developed outside or prior to the signature of agreements negotiated for an individual award under subsection (i) or subsection (j), as the case may be; or (B) intellectual property that may be developed by eligible entities as a result of participating in either such program; and (2) the Department may not— (A) obtain any right to any intellectual property described in subparagraph (A) or (B) of paragraph (1), either for the Department or any other Federal department or agency; or (B) implement or enforce any policy, form, or agreement, if such policy, form, or agreement contains provisions that conveys to the Department or any other Federal department or agency any such right. (n) Domestic content requirements waiver (1) In general The Secretary may not impose any requirement on a selected eligible entity described in subsection (i) or (j), as the case may be, with respect to an award or funding, respectively, under such subsections to utilize materials, articles, components, or other supplies produced or substantially manufactured in the United States, unless the Secretary makes a determination that such materials, articles, components, or other supplies, as the case may be, are available in the United States— (A) in sufficient quantities, (B) at a reasonable price, compared to materials, articles, components, or other supplies available, and (C) are of sufficient quality, for the eligible entity to utilize such award or funding, as the case may be. (2) Waiver petition (A) In general A selected eligible entity described in paragraph (1) may submit to the Secretary a petition to appeal a determination of the Secretary under such paragraph. (B) Timeline Not later than 90 days after the date on which a selected eligible entity described in paragraph (1) submits to the Secretary a petition described in subparagraph (A), the Secretary shall— (i) issue a publicly accessible certification of the previous determination; or (ii) retract the determination. (3) Sunset The authority under paragraph (1) shall expire on December 31, 2036.; (8) in paragraph (2)(I) of subsection (r), as so redesignated, by striking Director of the Office of Science and inserting Secretary; (9) by amending subsections (t) and (u), as so redesignated, to read as follows: (t) Material Plasma Exposure Experiment (1) In general The Secretary shall operate a Material Plasma Exposure Experiment facility as described in the 2020 publication approved by the Fusion Energy Sciences Advisory Committee entitled Powering the Future: Fusion and Plasmas. The Secretary shall consult with the private sector, institutions of higher education, National Laboratories, and relevant Federal agencies to ensure that the facility is capable of meeting Federal research needs for steady state, high-heat-flux, and plasma-material interaction testing of fusion materials over a range of fusion energy relevant parameters. (2) Facility capabilities The Secretary shall ensure that the facility described in paragraph (1) will provide the following capabilities: (A) A magnetic field at the target of 1 Tesla. (B) An energy flux at the target of 10 MW/m 2. (C) The ability to expose previously irradiated plasma facing material samples to plasma. (3) Start of operations The Secretary shall, subject to the availability of appropriations, ensure that the start of full operations of the facility described in paragraph (1) occurs before December 31, 2027. (u) Facility construction (1) Large facilities The Secretary shall construct high priority research facilities, as described in the 2024 Report of the Fusion Energy Sciences Advisory Committee Facilities Projects Subcommittee and in the 2026 Fusion Science and Technology Roadmap published by the Director of the Office of Science of the Department, to conduct commercial scale testing of the following: (A) Fuel cycle and blanket technologies. (B) The impacts of fusion neutrons on fusion system materials, including through the construction of a fusion neutron source. (2) Small and mid-sized facilities The Secretary shall construct small and mid-sized research facilities to address research priorities identified in the 2026 Fusion Science and Technology Roadmap published by the Director of the Office of Science of the Department. (3) Partnerships The Secretary may, as the Secretary determines appropriate, leverage any public-private partnership and collaboration with an international partner to maximize the impact of the investment of Federal resources in the construction of a high priority research facility under paragraph (1). (4) Funding In addition to amounts otherwise appropriated or made available for such purpose, there is appropriated to the Secretary the following: (A) $3,800,000,000 for fiscal year 2027, to remain available until expended, to carry out paragraph (1). (B) $300,000,000 for fiscal year 2027, to remain available until expended, to carry out paragraph (2). (5) Report Not later than 6 months after the date of the enactment of this subsection, the Secretary shall submit to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report that includes information relating to the construction of high priority research facilities under paragraphs (1) and (2), including any estimated schedules of and resource requirements for such construction.; (10) by inserting before subsection (x), as so redesignated, the following new subsections: (v) Innovation network for fusion energy (1) In general The Secretary shall support a program to provide fusion energy researchers with access to scientific and technical resources and expertise at facilities supported by the Department, including such facilities at National Laboratories and institutions of higher education, to advance innovative fusion energy technologies toward commercial application. (2) Awards Financial assistance for the program described in paragraph (1)— (A) shall be awarded on a competitive, merit-reviewed basis; and (B) may be in the form of grants, vouchers, equipment loans, or contracts to private entities. (w) Private facilities research program The Secretary shall carry out a private facilities research program to enable federally funded researchers to conduct studies related to fusion at fusion facilities that are owned and operated by private sector entities.; and (11) by amending subsection (x), as so redesignated, to read as follows: (x) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out the activities described in this section the following: (1) $1,114,187,798 for fiscal year 2027. (2) $1,169,897,188 for fiscal year 2028. (3) $1,228,392,047 for fiscal year 2029. (4) $1,289,811,650 for fiscal year 2030. (5) $1,354,302,232 for fiscal year 2031..