Governor Lee delivered his eighth State of the State, addressing budget and legislative priorities for the upcoming year to a joint session of the General Assembly and fellow Tennesseans. Included in the budget requested for the year are multiple activities to support energy in Tennessee.

View a summary of the budget items addressed here. 

TDEC Emergency Services Coordinators with Congressman Matt Van Epps at the State Emergency Operations Center.

When an emergency strikes, TDEC plays a vital role in the State's coordinated response. From infrastructure threats to environmental concerns to direct help for citizens in need, TDEC steps up to the challenge. TDEC teams from the Division of Water Resources, Division of Air Pollution Control, Division of Solid Waste Management, and Office of Energy Programs coordinate with federal partners, county emergency management agencies, local utilities, and local leaders to provide technical assistance in preparing for and responding to storm impacts on Tennessee’s infrastructure. Watch this behind-the-scenes look at how TDEC works with the Tennessee Emergency Management Agency and partners across State government to support our communities.

Type One Energy and the Tennessee Valley Authority recently announced the submission of a byproduct material license application for Tennessee’s first commercial nuclear fusion project to the TDEC Division of Radiological Health. The organizations worked to prepare this first-of-a-kind application, demonstrating compliance with key licensing requirements for fusion energy technology as part of a comprehensive application process. Type One’s Project Infinity, which encompasses the Infinity One prototype and workforce training center together with the 350 MW Infinity Two fusion power plant, will proceed in several phases at TVA’s Bull Run Energy Complex.

Oak Ridge National Laboratory (ORNL) will support multiple projects selected under the High-Performance Computing for Energy Innovation (HPC4EI) program to advance the performance and vitality of the U.S. manufacturing sector. The short-term, collaborative projects between industry members and U.S. DOE’s national energy labs will apply advanced modeling, simulation, data analysis, and AI to projects that improve manufacturing and explore new materials for advanced energy applications. 

Projects to be supported by ORNL include:

Learn more about the projects here. 

The University of Tennessee, Knoxville, will co-lead research along with professors from Emory University with $1 million in funding from the Alfred P. Sloan Foundation. The three-year project will research the current and potential effects of data centers on electricity costs for individual ratepayers, structural changes to how energy is supplied and consumed, and environmental and social impacts. The researchers will conduct case studies for three states including Georgia, Tennessee, and Virginia.

ORNL and Kyoto Fusioneering are partnering to develop critical fusion technologies that will accelerate the deployment of commercial fusion energy. The partnership will develop a fusion blanket test facility, fulfilling a critical need identified in the U.S. DOE's Fusion Science & Technology Roadmap. The public-private partnership will develop cutting-edge experimental infrastructure to test and validate next-generation tritium breeding blanket systems, a critical technology for producing the fuel needed to sustain fusion power generation. The agreement includes working towards the creation of UNITY-3, a world-leading breeding blanket test facility capable of testing blanket concepts in prototypic fusion nuclear conditions. The facility will be sited at ORNL.

TDEC will celebrate the 40th year of the Governor’s Environmental Stewardship Awards in 2026 and invites Tennesseans to submit nominations for the upcoming honors. The awards recognize individuals, businesses, and other organizations for their commitment to preserving the state’s natural resources. The honors include 10 categories: Agriculture and Forestry; Building Green; Clean Air and Transportation Solutions; Energy and Renewable Resources; Environmental Education and Outreach; Materials Management; Natural Resources; Sustainable Performance; Water Quality; and Lifetime Achievement.

Any individual, business, organization, educational institution, or agency is eligible to be nominated, provided it is in Tennessee, and the project was fully implemented and/or finalized in the two years prior to December 31, 2025. Nominations can also be for long-term projects finalized by the year prior to the nomination deadline. All nominees must have a minimum of three consecutive years of overall environmental compliance with TDEC. Self-nominations are encouraged. Nominations are due March 13.

The U.S. DOE Office of Electricity recently announced that it has reopened the Energy Storage Innovations Prize Round 2. The one-phase competition is a call for new, innovative, and promising energy storage solutions to address niche markets and to grow a community of energy storage innovators. The competition offers a total of $300,000 in prizes.

Round 2 focuses on less conventional use cases (e.g., remote communities, extreme operating conditions) and innovative energy storage technology solutions, across all duration scales, to advance the market landscape. Individuals, academia, non-federal government entities, small businesses, start-ups, entrepreneurs, and other inventors in the U.S. working on nascent or emerging energy storage innovations that address less conventional use cases are eligible to apply. Applications are due by March 13.

U.S. DOE recently announced $171.5 million to expand U.S. geothermal energy. The funding opportunity will support next-generation geothermal field-scale tests for both electricity generation and exploration drilling to support characterization and potential confirmation of promising geothermal prospects. The funding opportunity includes six topics with varied levels of funding and awards anticipated. For the first round of applications, two of the six topics will be open, seeking field tests for enhanced geothermal systems and drilling for next-generation and hydrothermal resource characterization/confirmation. Eligible entities include domestic entities (higher education institutions, for-profit entities, non-profit entities, states and local government entities, and tribes), federally funded research and development centers, federal agencies and instruments, and foreign entities with an explicit written waiver request. Letters of Intent are due March 27, and full applications are due April 30.

The U.S. Economic Development Administration, through the FY 2025 EDA Disaster Supplemental NOFO, will award grants in regions experiencing severe economic distress or other economic harm resulting from hurricanes, wildfires, severe storms and flooding, tornadoes, and other natural disasters occurring in calendar years 2023 and 2024. This funding opportunity encourages broad-based local engagement and emphasizes projects that involve private industry in disaster recovery and economic renewal.

Two funding pathways are available: 

Eligible applicants include district organizations of an Economic Development District (EDD), Indian tribes, state and local governments, institutions of higher education, public or private nonprofits working with local governments, economic development organizations, and public-private partnerships for public infrastructure. Applications for the Readiness and Implementation funding pathways will be accepted on a rolling basis.

Seven States Power Corporation (Seven States) offers Reliability as a Service to enhance grid reliability and resilience through distributed energy resources. Through its program, Seven States will acquire battery storage systems and natural gas generators, providing the capacity to local power companies and their customers for use in demand response, outage mitigation, and local operations. Seven States offers LPCs pricing on backup generators and supports each member in evaluating energy use, system economics, and project feasibility.

The Tennessee Department of Economic and Community Development (TNECD) administers the Innovation & Research for Industry Success (IRIS) Grant Program, which aims to enhance and facilitate partnerships between private industry and the state’s leading research institutions. The grant program will encourage companies to pilot innovative technologies and pursue discoveries within the state, which, in turn, will facilitate collaborations that highlight the strength of Tennessee’s research capabilities and foster long-term corporate investment in the state’s innovation ecosystem.

Prior to applying for funding, the IRIS Intake Form must be submitted to confirm program eligibility. Applications for the inaugural round of IRIS funding are open and will be reviewed on a rolling basis.

The U.S. Nuclear Regulatory Commission (NRC) announced its next Annual Regulatory Information Conference (RIC), to take place March 10-12 in Bethesda, MD. The event will be held in a hybrid format, offering both in-person participation and virtual access. As the NRC’s largest public conference, the RIC is a dynamic forum for stakeholders across government, industry, international organizations, academia, and the public to engage in meaningful dialogue and share insights on key critical and emerging nuclear regulatory issues. This year’s theme, “Regulation, Innovation and Collaboration for a Safer Tomorrow,” underscores NRC’s commitment to safety, progress, and partnership.

The Southern Alliance for Clean Energy (SACE) will host the webinar Agrivoltaics 101 on March 12 at 1:00 PM Central. The webinar is an introduction to agrivoltaics, the practice of combining agriculture and solar energy production on the same land. Speakers will discuss how solar and agriculture can work together in ways that support farmers, protect working lands, and create new income opportunities. Speakers include Greg Plotkin, Senior Manager for Smart Solar Outreach and Engagement for the American Farmland Trust, and Mike Storch, Manager of Programs and Sustainability for Cypress Creek Renewables, who will both provide practical information and real-world examples of what agrivoltaics can look like in practice.

The University of Tennessee Center for Industrial Services, Tennessee Certified Economic Developer, and Tennessee Department of Economic and Community Development will host Nuclear 101 for Economic Developers: Tennessee’s Next Big Opportunity on March 18-19 in Oak Ridge. The course will provide a clear, accessible introduction to the industry, including its history, modern applications, statewide opportunities, and ways for communities to be part of the ecosystem. Attendees will learn directly from industry leaders, join candid conversations, bust a few myths, and experience nuclear energy up close during a field trip.

The Tennessee Advanced Energy Business Council (TAEBC) will host its Annual Meeting virtually on March 31. This event allows TAEBC members, stakeholders, and potential members to celebrate Tennessee’s thriving advanced energy economy. Explore insights on the growing AI industry, fusion energy, updates on the TVA IRP process, and meet our new board members.

The Tennessee Environmental Network Show of the South (TENSOS) will be held in Chattanooga on May 13-15. The three-day event will host environmental professionals seeking to exchange knowledge and share ideas. The educational program offers over 70 unique courses in nine educational breakout sessions, allowing attendees to design their own personalized curriculum. 

OEP's K-12 Energy Education Program is excited to announce that Energy Camps for Educators will return this Summer. These immersive, hands-on professional development experiences are designed to equip teachers with tools, resources, and inspiration to bring energy education into the classroom. Whether new to energy topics or looking to deepen your expertise, these camps offer engaging content, expert-led sessions, and practical classroom applications.

Camp Locations & Dates:

To apply for Energy Camp, complete the K-12 Energy Education Camp Application available here and email the finished application to Angela.McGee@tn.gov and Alisha.Brewer@tn.gov. Applications are due April 3.

The East Tennessee Economic Council (ETEC) will host a Nuclear Opportunities Workshop at the Knoxville Convention Center on August 4-5. The annual conference features experts in nuclear fission and fusion energy, national security, radioisotopes, environmental management, policy, regulation, reactors, and workforce development. Attendees can network and engage with experts from TVA, the U.S. DOE, and its contractors, as well as a diverse array of small and large private-industry companies showcasing projects and technological capabilities. This includes interaction with students, interns, and postdocs as part of our efforts to grow the future workforce in Tennessee. Join the email list here for event updates.

The 2026 Tennessee Valley Solar + Storage Conference will take place in Chattanooga on September 2-3. The event brings together people interested in growing the solar and storage market in the Tennessee Valley to discuss strategies, market trends, and policies that impact the solar industry. Attendees will participate in in-depth and forward-looking discussions on TVA policies and processes as well as evolving technical opportunities facing the industry in the Tennessee Valley region.

The Interstate Renewable Energy Council (IREC), in partnership with the Urban Institute, has released A Landscape Analysis of Tech Careers in the Clean Energy and Energy Efficiency Fields. This report explores the role of information technology workers across sectors such as solar energy, battery storage, and energy efficiency, with insights that can inform the broader energy workforce. The analysis examines what draws workers to clean energy tech careers, common career pathways and education requirements, and strategies employers can use to attract and retain new talent.

Visit the TDEC Office of Energy Programs Website at http://www.tn.gov/environment/energy.

Past Monthly Newsletters: 

January 2026

December 2025

November 2025

For more information or to submit an idea for a future Monthly Transportation Edition, contact:

Audrey Jackson, Communications Officer
TDEC Office of Energy Programs
615-917-6683 or audrey.jackson@tn.gov

OR

Alexa Voytek, Deputy Director, OEP Programs
U.S. DOE State Energy Program / Innovation & Transportation / Communications
TDEC Office of Energy Programs
 615-613-1096 or alexa.voytek@tn.gov

OR

Mark Finlay, Senior Energy Analyst, TDEC Office of Energy Programs
615-772-6011 or mark.finlay@tn.gov

Acknowledgement: This material is based upon work supported by the U.S. Department of Energy’s Office of State and Community Energy Programs (SCEP) under the State Energy Program Award Number DE-SE0001084.

Disclaimer: This report was prepared as an account of work sponsored by an agency of the United States Government.  Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights.  Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof.  The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.