Civil Nuclear Credit Award Cycle 1

January 2024 Cycle 1 Award Finalized

On January 17, 2024, DOE announced the signing of the credit award and payment agreement with Pacific Gas and Electric Company to finalize terms for $1.1 billion in credit payments via the Civil Nuclear Credit (CNC) Program for the Diablo Canyon Power Plant, located near Avila Beach, California. Units 1 and 2 at the Diablo Canyon Power Plant, which provides 9% of the total California power generation, were scheduled to cease commercial operations in 2024 and 2025, but the agreement announced today supports a path forward for Diablo Canyon to continue operating.

 

Diablo Canyon Conditional Award NEPA Documentation

On January 2, 2024, DOE’s Grid Deployment Office (GDO) issued a Record of Decision (ROD) to award credits to Pacific Gas and Electric Company (PG&E) under the Civil Nuclear Credit (CNC) Program for the continued operation of Diablo Canyon Power Plant Units 1 and 2 (DCPP) under DCPP’s current operating licenses issued by the U.S. Nuclear Regulatory Commission (NRC).

This decision is pursuant to the Final Environmental Impact Statement (EIS) for Civil Nuclear Credit Program Proposed Award of Credits to PG&E for Diablo Canyon Power Plant (DOE/EIS-0555), which assesses the potential environmental impacts of awarding credits to PG&E under the CNC Program. GDO adopted the NRC National Environmental Policy Act (NEPA) documentation (including that of the Atomic Energy Commission (AEC), the NRC’s predecessor agency), for operation of the DCPP under DCPP’s operating licenses from the NRC.
 

November 2022 Cycle 1 Conditional Award Selected

On November 21, 2022, DOE announced the conditional selection of the Diablo Canyon Power Plant, located near Avila Beach, California, to receive the first round of funding from the Civil Nuclear Credit (CNC) Program. Units 1 and 2 at the Diablo Canyon Power Plant were scheduled to be decommissioned in 2024 and 2025, but this conditional award of credits valued at up to $1.1 billion, creates a path forward for Diablo Canyon to remain open. Pacific Gas and Electric Company (PG&E), the owner of Diablo Canyon, will be required to enter into a Credit Award and Redemption Agreement (CARA) for DOE to make the final award. The CARA will govern the relationship between DOE and PG&E. Diablo Canyon produces approximately 16 TWh of electricity annually, about 15% of the state’s clean energy. The award will save 1,500 clean energy jobs.

Award Cycle 1 Civil Nuclear Credit Program Guidance

DOE released application guidance for Award Cycle 1 of the Civil Nuclear Credits Program in April 2022 to support the continued operation of U.S. nuclear reactors. This guidance was further amended in June 2022 and was directed toward owners or operators of nuclear power reactors that were expected to shut down due to economic circumstances on how to apply for funding to avoid premature closure. The application period closed September 6, 2022.

Webinars: 

Guidance Documents: