Stand Up for Clean Energy and Say NO To the DOE’s Latest Nuclear Bailout Scheme

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DOE RFI CNC

Subject: Proposed Guidance amendment for the Civil Nuclear Credit (CNC) Program Violates the Law

Message:

The CNC was created by the bipartisan Infrastructure Investment and Jobs Act (IIJA) to mitigate potential greenhouse gas emissions (GHG) increases due to the closure of unprofitable nuclear reactors that operate exclusively in competitive electricity markets. The express language of the IIJA would make the application of the CNC to utility-operated reactors illegal. Extending Diablo Canyon’s operation would require much more than modifying the CNC program guidelines and would, in fact, violate the express meaning and intent of the IIJA. - Diablo Canyon is not closing because it is unprofitable. Its owner, Pacific Gas & Electric (PG&E) operates it as part of its regulated utility and recovers all of its costs plus a regulated rate of return on investment through its regulated electricity rates. - Diablo Canyon is closing because PG&E determined in 2016 that doing so would enable it to meet California’s renewable energy standard (RES) and emissions standards more rapidly and cost-effectively. - There will be no emissions increases due to Diablo Canyon’s closure because state law mandates the CPUC and PG&E to ensure that outcome. The inclusion in the proposed guidance amendments of capital and legal/regulatory costs that a PUC had decided are not prudent or recoverable through approved electricity rates is especially outrageous. IIJA requires that the subsidy only be awarded to reactors that show they are able to operate with lower or no subsidies after CNC expires. In the case of Diablo Canyon NPP in California, the costs that PG&E would incur to continue operating Diablo Canyon include up to $2 billion in capital projects and regulatory and licensing approvals. Those expenses would normally be spread out over 20 years or more, not incurred in just the 4-year period of the CNC program. If taxpayers bear all of those costs, it would unjustly enrich PG&E shareholders and violate the express intent of the law. Furthermore, allocating credits to cover the potentially enormous costs suggested by California Governor Newsom would violate the intent of the IIJA, where it specifies that, “To the maximum extent practicable, the Secretary shall use the amounts made available for credits under this section to allocate credits to as many certified nuclear reactors as possible.” The “transition” costs for Diablo would consume such a large share of the program’s resources for just two reactors (neither of which are certified nuclear reactors) that it would deplete the CNC program of funds that could be applied in the phase 2 solicitation. Diablo Canyon’s closure will do much more for California’s climate goals, local communities, and economic and environmental justice than the CNC program. The phaseout plan which California is implementing is a model DOE should promote instead of seeking to preempt it. The proposed Guidance amendment for the Civil Nuclear Credit (CNC) Program violates the law. Do not award illegal credits to Diablo Canyon NNP.

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Tell DOE: Follow the law and DON'T bend the rules for the nuclear industry

Stand Up for Clean Energy and Say NO To the DOE’s Latest Nuclear Bailout Scheme

Comments DUE 6/27/22

Civil Nuclear Credit

Diablo Canyon

We are not targeting any representatives in your district. Head to the NIRS website to explore our action opportunities. Thank you for your advocacy!

Tell DOE: Follow the law and DON'T bend the rules for the nuclear industry

Stand Up for Clean Energy and Say NO To the DOE’s Latest Nuclear Bailout Scheme

Comments DUE 6/27/22

Civil Nuclear Credit

Diablo Canyon

We are not targeting any representatives in your district. Head to the NIRS website to explore our action opportunities. Thank you for your advocacy!

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