- Who should I contact with questions about the Civil Nuclear Credit Program?
Please direct all questions regarding the Civil Nuclear Credit Program to CNC_Program_Mailbox@hq.doe.gov.
- Who is eligible to participate in the CNC Program?
The guidance for each Award Cycle sets forth the eligibility criteria, as aligned with Section 40323 of the Bipartisan Infrastructure Law (BIL), for each Award Cycle under the Civil Nuclear Credit (CNC) Program. The CNC Program seeks to support economically at-risk U.S. nuclear reactors that compete in a competitive market among other criteria outlined in the guidance for each Award Cycle.
- When does the Civil Nuclear Credit (CNC) Program start/end?
The CNC Program was authorized on November 15, 2021, when President Biden signed the Bipartisan Infrastructure Law (BIL). The BIL provides $6 billion for civil nuclear credits at $1.2 billion per year over fiscal years 2022 to 2026. Funds under this annual limit that are not allocated will be made available for future credit allocation until spent or until September 30, 2031, whichever is earlier.
- Will the entire $6 billion appropriation be spent during the first Award Period?
No, all $6 billion will not be spent during the first Award Cycle. Congress appropriated $1.2 billion in each of Fiscal Years 2022 through 2026 for the CNC Program. These appropriations will be available for allocations of credits until spent or September 30, 2031, whichever comes first. During Award Cycle 1 (first Award Period), on November 21, 2022, DOE announced a conditional award for the Diablo Canyon nuclear reactors; in January 2024, DOE issued the final award for approximately $1.1 billion for the continued operations of Diablo Canyon Nuclear Power Plant.
- What was the focus of the CNC Program Award Cycle 1?
The first CNC Award Cycle prioritized reactors that had already announced their intention to cease operation. To ensure the first Award Cycle was directed toward nuclear reactors most at risk of imminent closure, the applicant must have demonstrated that it made a public filing on or before November 15, 2021, the date of enactment of the BIL, announcing its intention to permanently cease operations of the nuclear reactor on or before September 30, 2026.
- How long are civil nuclear credits good for?
Civil nuclear credits are allocated to selected certified reactors for payment over a four-year Award Period.
- How many reactors are currently at risk of closure due to economic factors?
DOE cannot provide a precise number, as decisions to cease operation rest with plant owners and operators. Shifting energy markets and other economic factors have already forced the early closures of 13 commercial nuclear power reactors across the United States, and more economically strained reactors may cease operations in the coming years. The CNC program provides financial support to mitigate the risk against further closures of nuclear reactors.
- To participate in the CNC Program, does uranium used in the reactor have to be produced, converted, enriched, and fabricated into fuel assemblies in the United States?
There is no specific domestic fuel sourcing threshold in determining whether to certify a reactor or allocate credits to that reactor. However, BIL requires the Secretary to give priority in certification to a nuclear reactor that uses, to the maximum extent available, uranium that is produced, converted, enriched, and fabricated into fuel assemblies in the United States.
For each Award Cycle, DOE includes a bid adjustment to recognize nuclear reactors based on the amount of domestic content that will be used by the reactor during the four-year Award Period. In addition, a CNC applicant is required to provide, where known, information on the countries of origin of the uranium and fuel processing services planned to be used during the Award Period.
An applicant must commit to using best efforts during the four-year Award Period to maximize the procurement of uranium that is produced in the United States and the procurement of conversion services, enrichment services, and fabrication into fuel assemblies in the United States. DOE will audit this information during the Award Period.
- Can nuclear reactors receiving State zero-emission credits or other State support apply for CNC?
Owners or operators of nuclear reactors that receive payment(s) from State programs (zero-emission credit, clean energy contract, or other programs) may apply for certification to bid for credits for nuclear reactors that meet the eligibility criteria. DOE will review all applications against the criteria described in the Guidance for the relevant Award Cycle.
- Will reactors be able to utilize the nuclear power Production Tax Credit (PTC) in the Inflation Reduction Act and also apply for CNC Program?
DOE expects that some reactors may be eligible for both the PTC under Section 45U of the Inflation Reduction Act and credits under the CNC Program. The PTC is available to nuclear power reactors for electricity generated from nuclear energy beginning in 2024 through 2032. DOE’s interpretation of the PTC, subject to final review by Treasury, is that CNC meets the requirements for exclusion under 45U(b)(2)(B)(iii).
- Have any CNC credits been awarded?
The CNC Program has announced a final award to Pacific Gas & Electric Company (PG&E) for the Diablo Canyon Power Plant, Units 1 and 2. The maximum four-year total credit award value is $1,100,520,444 and is subject to annual adjustment.
- What were the criteria for certification and what types of information were collected and assessed?
Section 40323 of BIL requires that the applicant demonstrate that the reactor competes in a competitive electricity market and that DOE, to the maximum extent practicable, must determine that a reactor is projected to cease operations due to economic factors, that air pollutants will increase if the reactor retires, and that the U.S. Nuclear Regulatory Commission has reasonable assurance that the reactor will operate consistent with its current licensing basis and that it poses no significant safety hazards.
The CNC Guidance for each Award Cycle requires that applicants submit information related to:
- Economic factors
- Emissions impact
- Post-Award Period operations plan
- Uranium and fuel source
- Community Benefits Plan
- Additional information that is described in the CNC Guidance for each
Award Cycle
- What was the timeline for selecting the conditional award?
Timelines are outlined in the Guidance for each Award Cycle:
- CNC Award Cycle 1 Amended Guidance - June 2022
- CNC Award Cycle 2 Guidance – March 2023
- Will DOE audit and/or verify all information contained in the applications for certification and bids?
All information in application(s) for certification is reviewed, and DOE uses independent technical experts support evaluation of the submissions. Additionally, DOE will audit awardees annually to assess differences between projections made at the time of certification and the actual operating results in each award year, as well as to review the status of the awardee’s commitments under the award.
- What is the basis for the value of the credit and the total amount awarded?
Credits can be allocated based on bids submitted to DOE by the selected certified reactors. The conditional award value represents the maximum credit value and corresponds to the difference between the projected costs plus risk and revenues. Allocated credits are redeemable for future payment (like a voucher) after each award year. Actual costs and revenues will be submitted for audit, and any adjustment, which would only result in less money for the awardee, will be completed prior to payment. Credits will only be funded (paid) after the annual audit.
- The allocation of credits is described as conditional, what does that mean?
The finalization of an award is contingent on completion of the environmental review and the finalization of terms in the Credit Award and Payment Agreement acceptable to DOE, which includes terms for adjustment of the award and details regarding annual reporting, specifically matters related to workforce and labor considerations and community engagement.
- How can I learn the identities of all applicants and the status of their applications from each Award Period?
As stated in the CNC Guidance, DOE will not make public any information about unsuccessful applications the program may have received, including how many, the identity of the applicant, or any details about what is contained in the submissions.
- What is the purpose of the recapture rule?
DOE may recapture the allocation of Credits by canceling all or any portion of the unpaid Credits, if during the Award Period the Selected Nuclear Reactor (a) terminates operations; or (b) does not operate at an annual loss in the absence of the allocation of Credits awarded by DOE. In addition, Credits paid in a prior award year may be recaptured if the Selected Nuclear Reactor terminated operations as a result of the failure to adhere to prudent industry practices in the operation of the plant during the Award Period.
- Why didn’t GDO certify a reactor in the second cycle of the CNC Program?
After a thorough review of application(s), DOE determined that no applicant met the criteria outlined in the Guidance released on March 2, 2023.
- When will the next Award Cycle be initiated?
The Consolidated Appropriations Act of 2024 adjusted funding for nuclear fleet support programs across DOE. As a result, the CNC Program will not initiate an award cycle in 2024. The CNC program remains a valuable tool to help preserve the existing U.S. nuclear reactor fleet and save thousands of high-paying jobs across the country. GDO anticipates that additional funding opportunities will be announced in future years.