Enact the Ohio Fusion Energy Advancement Act

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 736

2025-2026

Representative Lorenz

Cosponsors: Representatives Fischer,
Brennan

To
amend section 4928.73 and to enact section 122.1714 of the Revised
Code
to
create a regulatory, economic, and energy market framework for fusion
energy and to name this act the Ohio Fusion Energy Advancement Act.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
section 4928.73 be amended and section 122.1714 of the Revised Code
be enacted to read as follows:

Sec.
122.1714.
(A)
Not later than one year after the effective date of this section, the
director of development shall convene the Ohio fusion energy working
group.

(B)
The working group shall do all of the following:

(1)
Identify regulatory gaps related to the licensing or certification of
fusion energy and supply chain facilities in this state;

(2)
Evaluate fusion workforce and supply chain needs;

(3)
Recommend fusion economic development strategies.

(C)(1)
The working group shall be composed of representatives from all of
the following:

(a)
The department of development;

(b)
The environmental protection agency;

(c)
The public utilities commission;

(d)
The department of health;

(e)
The bureau of environmental health and radiation protection;

(f)
The Ohio national guard;

(g)
The Ohio state university;

(h)
One university in this state that has received a research activity
designation from the Carnegie commission on higher education;

(i)
Two representatives from the fusion energy industry;

(j)
One representative from the electric utility sector.

(2)
All members of the working group shall be appointed by the governor.

(D)
Seven members of the working group constitute a quorum for conducting
business.

(E)
The working group, by a majority vote of a quorum of its members,
shall select an individual to serve as its chairperson. The working
group may replace the chairperson in the same manner.

(F)
The working group shall hold its first meeting at the call of the
director of development. Subsequent meetings shall be at the call of
the chairperson.

(G)
The department of development shall provide administrative support
for the working group.

(H)
Not later than one year after the working group's initial meeting,
and, annually thereafter, the working group shall submit a report of
its findings in writing to the speaker and minority leader of the
house of representatives and the president and minority leader of the
senate.

(I)(1)
Five years after the submission of the working group's initial
report, the working group shall reconvene for the purpose of
identifying regulatory changes necessary to support the further
development and maintenance of fusion energy and related supply
chains in this state.

(2)(a)
Not later than one year after the reconvening of the working group,
the working group shall compile a list of recommended legislative
changes and submit this list in writing to the speaker and minority
leader of the house of representatives and the president and minority
leader of the senate.

(b)
Upon submission of the list required under division (I)(2)(a) of this
section, the working group is abolished.

Sec.
4928.73.
(A)
As used in this section:

(1)

"Fusion
energy system" means any device, facility, or apparatus that
produces energy through the controlled fusion of atomic nuclei,
including through magnetic, confinement, inertial confinement,
magneto-inertial, electrostatic confinement, or beam-target systems.

(2)

"Mercantile
customer member" means a mercantile customer connected to a
mercantile customer self-power system.

(2)
(3)

"Mercantile customer self-power system" means one or more
electric generation facilities
,
including a fusion energy system
,
electric storage facilities, or both, along with any associated
facilities, that meet all of the following:

(a)
Produce electricity primarily for the consumption of a mercantile
customer member or a group of mercantile customer members;

(b)
Connect directly to the mercantile customer member's side of the
electric meter;

(c)
Deliver electricity to the mercantile customer member's side of the
electric meter without the use of an electric distribution utility's
or electric cooperative's distribution system or transmission system;

(d)
Is located on either of the following:

(i)
A property owned or controlled by a mercantile customer member or the
entity that owns or operates the mercantile customer self-power
system;

(ii)
Land adjacent to a mercantile customer member if the facilities
connect directly with the customer.

(B)
The mercantile customer self-power system may be owned or operated by
a mercantile customer member, group of mercantile customer members,
or an entity that is not a mercantile customer member.

(C)
A mercantile customer self-power system may provide electric
generation service to one or more mercantile customers.

(D)
The public utilities commission shall adopt rules to implement this
section that are applicable to electric distribution utilities.

(E)
Nothing in this section prohibits an electric distribution utility or
an electric cooperative from charging a mercantile customer for
distribution or transmission service used by a mercantile customer.

Section
2.
That
existing section 4928.73 of the Revised Code is hereby repealed.

Section
3.
Within
six months after the effective date of this section, the Department
of Development shall review all state programs supporting clean
energy generation in this state to identify incentive opportunities
that may benefit fusion facilities or manufacturers, such as sales
tax exemptions on fusion research and development equipment, tangible
personal property tax reductions or exemptions on fusion equipment,
or workforce development grants, and issue a report detailing the
Department's findings to the General Assembly in accordance with
division (B) of section 101.68 of the Revised Code.

Section
4.
This
act shall be known as the Ohio Fusion Energy Advancement Act.