Fusion Industry Association releases white paper to help states prepare commercial fusion licensing programs

The Fusion Industry Association dropped a white paper this week, and it’s aimed at a pretty specific audience: the Agreement States that’ll soon be responsible for licensing and overseeing commercial fusion energy facilities. The Nuclear Regulatory Commission is expected to finalize its revised regulatory framework by December 2027 — one that hands fusion oversight to states rather than the federal government — and the FIA is telling those states to get their programs built now, before the first applications show up.

FIA publishes guidance for Agreement States on fusion oversight

The white paper came out to coincide with the Organization of Agreement States annual meeting, speaking to both current and future Agreement States. The scope is wide. The FIA wants states ready to handle licensing, inspection, enforcement, and decommissioning for commercial fusion facilities — not just on paper, but with actual functioning programs in place when companies start knocking.

Some states are already deep in it. California, Massachusetts, Washington, and Tennessee are each hosting fusion companies in some form, working through regulatory questions that don’t have clean answers yet. Tennessee went furthest recently, issuing its first commercial fusion machine operating license to Type One Energy for a stellarator prototype — a real milestone marking the shift from hypothetical to actual.

Building regulatory capacity from scratch, though, or reworking existing frameworks that weren’t designed with fusion in mind, takes longer than it looks.

The FIA’s timing isn’t accidental. Releasing the paper at the OAS annual meeting puts these recommendations directly in front of state regulators while they’re already in the room together, talking through shared challenges.

NRC regulatory framework shifts fusion oversight to the states

The regulatory context matters here. In May, the NRC closed a comment period on proposed revisions to 10 CFR Part 30 — the rule change at the center of how fusion gets governed. Rather than fitting fusion facilities into the existing framework for fission reactors, the NRC is treating fusion machines more like particle accelerators. That’s not a small distinction.

Under the revised framework, Agreement States become the primary regulators for commercial fusion — handling licensing, inspection, enforcement, and decommissioning oversight, with the federal government stepping back. The NRC is targeting December 2027 for final publication. That gives states roughly two years, which sounds like plenty of time. Building regulatory capacity from scratch, though, or reworking existing frameworks that weren’t designed with fusion in mind, takes longer than it looks.

States face uneven regulatory frameworks and must act to resolve gaps

Not every Agreement State is starting from the same position. Some have written their byproduct material and particle accelerator statutes broadly enough that fusion machines should slot in without major surgery. Others aren’t so fortunate, and the complications get structural fast.

In some states, radioactive materials and particle accelerators fall under completely different agencies, each running on its own procedures and timelines. A fusion facility involves both — which can mean getting caught between jurisdictions, creating real uncertainty for regulators and applicants alike. Other states may find their existing laws simply don’t stretch far enough, requiring legislative changes or memorandums of understanding to fill the gaps. The FIA’s recommendation is blunt: don’t wait for an application to discover you’ve got a problem.

Paper recommends reciprocity agreements, capacity assessments, and waste planning

One of the more forward-thinking recommendations involves reciprocity. Many commercial fusion companies plan to eventually operate across multiple sites, and the FIA is pushing states to think about how regulatory reviews can build on each other instead of starting from zero every time.

The idea is structured reliance: if one state does a thorough review of a fusion facility, states reviewing similar units at new sites could focus on local considerations rather than repeating the whole analysis. The paper is direct — states should spell out their approach to reciprocity before the first commercial-scale applications arrive, so developers can plan deployment strategies with actual confidence. Get that framework established early, and everyone moves faster.

Capacity is another real concern. The paper urges states to honestly assess whether they have the expertise and staffing to handle initial licensing, construction oversight, and long-term operational oversight. Fusion-specific regulatory expertise is thin, and demand is going to grow. States that build those capabilities early will be better positioned to attract and keep the talent they need.

Waste planning rounds out the recommendations. Fusion energy produces low-level radioactive waste — potentially including neutron-activated materials and tritium-contaminated materials, depending on the fusion concept. States need to understand what they’re dealing with and have plans ready, not improvise once it’s sitting in front of them.

Economic incentives and siting competition add urgency for states

There’s a competitive angle here the FIA doesn’t sidestep. Hosting a commercial fusion facility isn’t just a regulatory responsibility — it’s an economic opportunity, with high-quality jobs and long-term capital investment on the table for states that get themselves fusion-ready.

Fusion companies are weighing regulatory predictability heavily when choosing where to put facilities. Clear timelines and well-prepared oversight programs are real differentiators. A state that can offer both has a genuine edge. Companies are also looking for ecosystems, not just permits — research collaborations with universities, national laboratories, and industry partners factor into siting decisions, so states with strong existing research infrastructure already have a leg up.

The takeaway from the FIA’s white paper is pretty clear: the regulatory framework is coming, the industry is moving, and states that prepare now — by examining their statutes, building capacity, planning for waste, and developing reciprocity frameworks — will be in a far better position to participate in the commercial fusion era than those that wait around.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.