Frequently Asked Questions on the Civil Nuclear Credit Program

  • Who should I contact with questions about the Civil Nuclear Credit Program?
    Please direct all questions regarding the Civil Nuclear Credit Program to [email protected].

    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.

    An applicant must demonstrate that:

    • The reactor competes in a competitive electricity market
    • The reactor is projected to cease operations due to economic factors
    • The reactor demonstrates an average projected annual operating loss
    • Air pollutants will increase if the reactor retires
    • 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
    • And other criteria as outlined in the Award Cycle 3 Guidance.

    The CNC Guidance also requires that applicants submit information related to: 

    • Economic factors
    • Emissions impact
    • Post-Award Period operations plan
    • Uranium and fuel source

    When does the CNC Program start/end? 
    The CNC Program was authorized on November 15, 2021, when the Bipartisan Infrastructure Law (BIL) was signed. 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. 

    However, under the Consolidated Appropriations Act, 2024, Congress repurposed an aggregate amount of up to $3.72 billion in the CNC Program’s unobligated balances appropriated under the IIJA to carry out nuclear programs supporting small modular reactors and a uranium strategy pursuant to the Nuclear Fuel Security Act of 2023.

    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.

    Have any CNC credits been awarded thus far?
    DOE 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 up to $1,100,520,444 and is subject to annual adjustment.

    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.

    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.

    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.  

    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).  

    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.

  • What was the focus of 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.

    Were any CNC credits been awarded?
    DOE 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 up to $1,100,520,444 and is subject to annual adjustment.

    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.

    How can I learn the identities of all applicants and the status of their applications from previous Award Cycles?
    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 was the timeline for selecting the conditional award?
    Timelines are outlined in the Guidance for each Award Cycle. 

    What were the criteria for certification and what information was 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 also 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.
       

  • DOE is issuing a request for information (RFI) to gauge interest from nuclear plant owners and operators for a third award cycle under the CNC Program.

    Who should respond to the RFI with a Letter of Interest?
    Nuclear reactor owners or operators should respond in a form of a Letter of Interest (LOI) of their intention to submit an application for certification and allocation of credits under the CNC Program to support nuclear reactors at risk of ceasing operations due to economic factors.  

    Are respondents committed to the program if they submit an LOI?
    No, an organization’s email submission of an LOI is non-binding expression of interest in applying to the CNC Program Award Cycle 3.

    How much CNC Program funding is anticipated to be available for the 3rd Award Cycle? 
    Subject to availability of funds, DOE is planning up to $980 million for Award Cycle 3.

    How many days do respondents have to email an LOI?
    An LOI is requested by October 28, 2024, no later than 30 days after the RFI is published.  

    Are LOI submissions kept confidential?
    Submissions of LOIs that comply with relevant requirements, as outlined in the Business Proprietary Information section of the RFI will be kept strictly confidential.