The Civil Nuclear Credit Program supports the continued operations of safe and reliable nuclear energy facilities, preserving thousands of good-paying clean energy jobs while avoiding carbon emissions.
January 17, 2024
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The Civil Nuclear Credit Program supports the continued operations of safe and reliable nuclear energy facilities, preserving thousands of good-paying clean energy jobs while avoiding carbon emissions.
WASHINGTON, D.C.— Today the Biden-Harris Administration, through the U.S. Department of Energy (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. Funded by President Biden’s Bipartisan Infrastructure Law and administered by DOE’s Grid Deployment Office, the $6 billion CNC program supports the continued operations of safe and reliable nuclear energy facilities, preserving thousands of good-paying clean energy jobs while avoiding an increase in carbon emissions. As the nation’s largest source of carbon-free power, America’s current fleet of nuclear reactors is a vital resource for achieving the President’s goal of 100% clean electricity by 2035 and a net-zero emissions economy by 2050.
“Preserving the nation’s nuclear fleet is critical not only to reaching America’s clean energy goals, but also to ensuring that homes and businesses across the country have reliable energy,” said Maria Robinson, Director, Grid Deployment Office, U.S. Department of Energy. “Today’s announcement demonstrates the Administration’s commitment to domestic nuclear energy by preserving existing generation, while we continue to support a stronger nuclear power industry.”
In November 2022, DOE announced the conditional selection of Diablo Canyon Power Plant for CNC credits. Today’s announcement marks the finalization of the award. The total award of CNC credits is capped at $1.1 billion. The credits are slated to be paid in installments for a four-year period of performance from 2023 through 2026, with the amount of the annual payment to be adjusted based on a number of factors, including actual costs incurred to extend the operation of the Diablo Canyon Power Plant. The first payment of awards is slated for 2025 based on the operation of the Diablo Canyon Power Plant in 2023 and 2024. Units 1 and 2 at the Diablo Canyon Power Plant, which provide 9% of the total California power generation, were scheduled to cease commercial operation in 2024 and 2025, but the agreement announced today supports a path forward for Diablo Canyon to continue operating.
While nuclear power currently provides nearly 50% of the nation’s carbon-free electricity, shifting energy markets and other economic factors have resulted in the early closures of 13 commercial reactors across the United States since 2012. These closures have led to an increase in carbon emissions in those regions, poorer air quality for residents living in the surrounding areas, and the loss of thousands of high-paying jobs.
Learn more about the Grid Deployment Office.