On November 21, 2022, the Department of Energy (DOE) announced the conditional selection of the 2,240 MW Diablo Canyon Power Plant, California’s only nuclear power plant, to receive the first round of funding from the Civil Nuclear Credit (CNC) program.[1] Funded by the Bipartisan Infrastructure Law (BIL), the $6 billion CNC program aims to support nuclear energy facilities at risk of retiring due to economic factors. Owned and operated by Pacific Gas and Electric Company (PG&E), Diablo Canyon Power Plant produces approximately 16 TWh of electricity annually, about 15% of California’s clean energy. Units 1 and 2 of the power plant were scheduled to be decommissioned in 2024 and 2025, respectively, but the conditional award, valued at about $1.1 billion, could allow the units to remain open. According to the DOE, keeping the power plant open longer will save 1,500 jobs. Final terms are subject to negotiation and finalization by the DOE.

The first CNC award cycle prioritized reactors facing the most imminent threat of closure and limited applications to reactors that had already announced that they would close due to economic factors. The second award cycle will prioritize reactors that are projected to shut down due to economic factors within the next four years. The DOE expects to begin accepting applications for the second cycle of CNC funding in January 2023.

[1] https://www.energy.gov/articles/biden-harris-administration-announces-major-investment-preserve-americas-clean-nuclear