Alert
Alert
03.08.23
On March 2, 2023, the Department of Energy (DOE) announced the opening of the second round awards cycle of the Civil Nuclear Credit (CNC) Program and released application guidance. The application guidance describes the timelines, deliverables and supporting information needed to apply for CNC certification and to submit sealed bids to receive allocated credits.
The first award cycle limited eligibility to owners or operators of nuclear power reactors that had announced intentions to retire within the four-year award period (January 1, 2024 – December 31, 2027), and on November 21, 2022, DOE announced the conditional selection of the Diablo Canyon Power Plant, which had been scheduled for closure in 2024 and 2025 (Units 1 and 2, respectively).
The second award cycle is open to owners or operators of nuclear reactors that are at risk of closure by the end of the four-year award period. This includes reactors that were operating as of November 15, 2021, but have subsequently ceased operations. Unlike the first award cycle, eligibility for the second award cycle is not restricted to applicants who have publicly announced intentions to retire. No formal retirement announcement is required for eligibility. This second award cycle therefore expands funding eligibility for aging nuclear reactors, giving owners or operators another opportunity to receive funding.
Second award cycle applicants will be required to provide a narrative explanation, with supporting documentation, of the likelihood that a nuclear reactor operating as of November 15, 2021, is projected to close, or has ceased operations, by the end of the four-year award period. This documentation may include public filings, though such filings are not required.
DOE’s guidance for the second award cycle requests that owners or operators submit a Letter of Intent to apply for certification and credit allocation under the CNC Program by April 1, 2023, which will allow DOE to gauge the number and types of applications that may be submitted.
DOE’s fully detailed guidance can be accessed here. Applications for the second CNC award cycle must be submitted no later than 11:59 pm Mountain Time on May 31, 2023. Pillsbury’s top-rated nuclear team stands ready to assist applicants with interpreting guidance and drafting applications.
Pillsbury’s previous detailed analysis of the CNC Program can be reviewed at the following links:
Civil Nuclear Credit Program in the Bipartisan Infrastructure Bill
DOE Establishes $6 Billion Civil Nuclear Credit Program
Department of Energy Accepting Applications for Civil Nuclear Credit Program
Department of Energy Issues Updated Guidance for Civil Nuclear Credit Program Applicants