Tennessee Adopts First State Fusion Energy Rules

On June 9, 2026, Tennessee became the first state in the nation with its own licensing framework for fusion energy. Chapter 0400-20-14 of the Rules and Regulations of the State of Tennessee, adopted by the Tennessee Department of Environment and Conservation (TDEC), establishes requirements for licensing "fusion machines" and fusion-related activities under the state's Nuclear Regulatory Commission (NRC) Agreement State authority. TDEC Commissioner David Salyers says the rules position Tennessee as "the most responsive state to new advanced nuclear companies clamoring to call Tennessee home."

The rules exist because of a federal decision three years earlier. In April 2023, the NRC voted unanimously to regulate commercial fusion under its byproduct-material framework in 10 C.F.R. Part 30, the accelerator-style materials regime, rather than as "utilization facilities" like fission reactors. Congress codified that choice in the ADVANCE Act (Pub. L. 118-67, enacted July 9, 2024), classifying fusion machines as a subset of particle accelerators. Byproduct-material regulation is what the NRC delegates to Agreement States under Section 274b of the Atomic Energy Act of 1954, so for most U.S. fusion plants the licensing authority will be a state radiation-control program. Tennessee's FY 2025-26 budget appropriated about $2.6 million to build the framework.

What Chapter 0400-20-14 Requires

The chapter defines a fusion machine broadly enough to cover every confinement concept now in development. A fusion machine is any machine capable of transforming atomic nuclei into different elements, isotopes, or other particles through fusion processes, and directly capturing and using the resultant products, whether particles, heat, or other electromagnetic radiation. That definition covers stellarators, tokamaks, laser inertial systems, and concepts not yet on the drawing board.

Applicants make a radiation-safety showing modeled on the state's existing materials program. Exhibit 1 lists the four areas TDEC reviews before it issues a license.

Why This Matters for Fusion Developers

A materials-style state license is a lighter lift than a federal reactor license. State radioactive-materials licenses are routinely issued on timelines measured in months. Fission construction permits under 10 C.F.R. Part 50 take years. Tennessee's chapter gives fusion developers a defined, in-state pathway with a regulator funded and staffed for the work.

No other state has a fusion-specific chapter in force, and the federal rule is still pending. Meanwhile, the NRC published its proposed Regulatory Framework for Fusion Machines rule (Docket NRC-2023-0071) on February 26, 2026, with draft licensing guidance in NUREG-1556, Volume 22. The comment period closed May 27, 2026, and the final rule is pending. Once it is final, Agreement States will need compatible programs, and Tennessee already has one. Exhibit 2 traces the sequence from the NRC's 2023 decision to Tennessee's rules.

Oak Ridge and the First Applicants

Type One Energy is expected to be among the first licensees. It submitted initial licensing plans to TDEC in January 2026. Its commercial site near Oak Ridge will operate as a fusion development campus with Oak Ridge National Laboratory, TVA, and the University of Tennessee, and construction of Infinity Two, which the company describes as a 350 MWe stellarator baseload plant, could begin in 2028 under the new rules.

The fusion rules arrive alongside other nuclear investment in Oak Ridge. Kairos Power broke ground on Hermes 2 in Oak Ridge on April 17, 2026, the first power-producing Gen IV reactor to receive an NRC construction permit. Orano's $5 billion Project IKE enrichment facility, filed with the NRC earlier in 2026, was accepted for an accelerated 12-month review on May 21, 2026. Centrus is investing more than $560 million to scale centrifuge manufacturing in Oak Ridge, adding nearly 430 jobs. The state's April 2, 2026 proposal to host a DOE Nuclear Lifecycle Innovation Campus cites the fusion framework and the state's "proven regulatory environment" as an Agreement State of more than 60 years.

For fusion companies choosing a site, Tennessee now offers a working regulator next to an established nuclear supply chain. The governor's office counts more than 230 nuclear lifecycle companies in the Oak Ridge-Knoxville corridor. Exhibit 3 lists the dates to watch.

What to Do Now

If you are developing a fusion machine and weighing where to build, Tennessee is the one state with a fusion-specific licensing chapter in force today. Licensing runs through TDEC's Division of Radiological Health, and the NRC's final rule is still pending. If you want a read on fit before your siting decision, reach out to our team.

References

1. Tennessee Department of Environment and Conservation, Tennessee Powers Up With First-In-The-Nation Fusion Regulations Starting June 9, June 1, 2026.
2. Tennessee Secretary of State, Chapter 0400-20-14, Rules and Regulations of the State of Tennessee (fusion machines), effective June 9, 2026.
3. Federal Register, Regulatory Framework for Fusion Machines (proposed rule), Docket NRC-2023-0071, Feb. 26, 2026.
4. Fusion Industry Association, NRC Decision Separates Fusion Energy Regulation from Nuclear Fission, April 14, 2023.
5. U.S. Government Publishing Office, Public Law 118-67 (ADVANCE Act), approved July 9, 2024.
6. SSTI, Tennessee governor requests nearly $100M for energy innovation in proposed spending plan, Feb. 27, 2025.
7. Kairos Power, Kairos Power Breaks Ground on Hermes 2 Demonstration Plant, April 17, 2026.
8. Orano USA, Orano Advances Project IKE with NRC Acceptance for Review of Uranium Enrichment License Application, May 21, 2026.
9. Tennessee Department of Economic and Community Development, Centrus to Expand Oak Ridge Centrifuge Manufacturing Plant to Facilitate Large-Scale Deployment, Jan. 23, 2026.
10. Office of Governor Bill Lee, Tennessee Positions Oak Ridge to Lead Nation's Next Era of Nuclear Energy, April 2, 2026.

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