Notice2022-03156
Notice of Intent and Request for Information Regarding Establishment of a Civil Nuclear Credit Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 15, 2022
Issuing agencies
Energy Department
Abstract
The Infrastructure Investment and Jobs Act (IIJA or the Act) directs the Secretary of Energy (Secretary) to establish a Civil Nuclear Credit (CNC) Program to evaluate and certify nuclear reactors that are projected to cease operations due to economic factors and to allocate credits to selected certified nuclear reactors via a sealed bid process. The U.S. Department of Energy (DOE or the Department) is issuing this NOI to notify interested parties of DOE's intent to solicit applications for certification of nuclear reactors for eligibility to submit of sealed bids for CNC Program credits from nuclear reactor owners or operators that are at risk of ceasing operations due to economic factors and intent to request sealed bids from certified reactors for allocation of available credits. The NOI provides an opportunity for interested parties to submit to the Department a non-binding notice of their interest in submitting a confidential application for the CNC Program. The Department also seeks input from all stakeholders through this RFI regarding the establishment of a CNC Program including the application, certification, and selection processes.
Full Text
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<title>Federal Register, Volume 87 Issue 31 (Tuesday, February 15, 2022)</title>
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[Federal Register Volume 87, Number 31 (Tuesday, February 15, 2022)]
[Notices]
[Pages 8570-8575]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03156]
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DEPARTMENT OF ENERGY
Notice of Intent and Request for Information Regarding
Establishment of a Civil Nuclear Credit Program
AGENCY: Office of Nuclear Energy, Department of Energy.
ACTION: Notice of intent (NOI); request for information (RFI).
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SUMMARY: The Infrastructure Investment and Jobs Act (IIJA or the Act)
directs the Secretary of Energy (Secretary) to establish a Civil
Nuclear Credit (CNC) Program to evaluate and certify nuclear reactors
that are projected to cease operations due to economic factors and to
allocate credits to selected certified nuclear reactors via a sealed
bid process. The U.S. Department of Energy (DOE or the Department) is
issuing this NOI to notify interested parties of DOE's intent to
solicit applications for certification of nuclear reactors for
eligibility to submit of sealed bids for CNC Program credits from
nuclear reactor owners or operators that are at risk of ceasing
operations due to economic factors and intent to request sealed bids
from certified reactors for allocation of available credits. The NOI
provides an opportunity for interested parties to submit to the
Department a non-binding notice of their interest in submitting a
confidential application for the CNC Program. The Department also seeks
input from all stakeholders through this RFI regarding the
establishment of a CNC Program including the application,
certification, and selection processes.
DATES: Written comments and information are requested on or before
March 17, 2022. The Department intends to develop initial draft
guidance for the certification applications during the NOI/RFI comment
period. It is strongly preferred that respondents comment on issues
affecting certification directly via the email address below by March
8, 2022. Comments relating to the certification received after this
date may not be included guidance development.
ADDRESSES: Interested parties may submit comments by any of the
following methods:
1. Email: <a href="/cdn-cgi/l/email-protection#592b3f30743a373a19372c3a353c382b773c373c2b3e20773e362f"><span class="__cf_email__" data-cfemail="93e1f5fabef0fdf0d3fde6f0fff6f2e1bdf6fdf6e1f4eabdf4fce5">[email protected]</span></a> (Strongly Preferred). Submit
electronic comments in Microsoft Word or PDF file format and avoid the
use of special characters or any form of encryption. Please include
``Response to RFI'' in the subject line.
2. Online: <a href="http://www.regulations.gov">www.regulations.gov</a>. Submit all electronic public
comments to <a href="http://www.regulations.gov">www.regulations.gov</a>. Click on the ``Comment'' icon,
complete the required fields, and enter or attach your comments.
Instructions: All submissions received must include the agency name
for this RFI. No facsimiles (faxes) will be accepted. Any information
that may be business proprietary and exempt by law from public
disclosure should be submitted as described in Section IX.
Although DOE has routinely accepted public comment submissions
through a variety of mechanisms, including postal mail and hand
delivery/courier, DOE has found it necessary to make temporary
modifications to the comment submission process in light of the ongoing
COVID-19 pandemic. DOE is currently accepting only electronic
submissions at this time. If a commenter finds that this change poses
an undue hardship, please contact Office of Nuclear Energy staff at
(202) 586-6231 to discuss the need for alternative arrangements. Once
the COVID-19 pandemic health emergency is resolved, DOE anticipates
resuming all of its regular options for public comment submission,
including postal mail and hand delivery/courier.
FOR FURTHER INFORMATION CONTACT: Requests for additional information
may be sent to: <a href="/cdn-cgi/l/email-protection#304256591d535e53705e45535c5551421e555e554257491e575f46"><span class="__cf_email__" data-cfemail="483a2e21652b262b08263d2b242d293a662d262d3a2f31662f273e">[email protected]</span></a>. Questions about the NOI may
be addressed to Alden Allen at (208-526-7093). Questions about the RFI
may be addressed to Kelly Lefler at (202-586-6231).
SUPPLEMENTARY INFORMATION:
I. Background
Advancing U.S. clean energy, energy security, and economic
competitiveness enabled by reliable electricity generation is a
priority of the Administration.\1\ As energy markets and economic
circumstances continue to shift, multiple zero-emission nuclear
generation assets are at risk for early closure, and several have
already closed prematurely due to economic circumstances. Such closures
have resulted in increased air pollution in communities, including
disadvantaged communities, where fossil generation has replaced lost
nuclear generation, materially impeded the national goal of carbon
pollution-free electricity by 2035, and cost the nation thousands of
high-quality union jobs. Further closures threaten to exacerbate these
issues. Congress has appropriated funds to be allocated by DOE, using a
credit allocation process, to certified nuclear reactors to prevent
closure of carbon-free nuclear generation due to economic factors. DOE
intends to execute the CNC Program in a manner that maximizes its
contribution to the national objectives of clean energy generation,
energy security and stability, and economic competitiveness.
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\1\ The White House, Fact Sheet: President Biden's Leaders
Summit on Climate, April 23, 2021, available at <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/23/fact-sheet-president-bidens-leaders-summit-on-climate">https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/23/fact-sheet-president-bidens-leaders-summit-on-climate</a>/.
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The IIJA directs the Secretary to certify operating nuclear
reactors under the CNC Program based on determinations that each
reactor is projected to cease operations due to economic factors, that
cessation of operations would result in a projected increase in air
pollutants, and that the U.S. Nuclear Regulatory Commission (NRC) has
reasonable assurance that the reactor will continue to operate safely.
Congress has appropriated $6 billion to fund credits awarded under the
CNC Program and has authorized the Secretary to obligate up to $1.2
billion in Fiscal Year 2022. Amounts in excess of $1.2 billion required
to fund awarded credits for subsequent fiscal years can be disbursed
subject to the availability of funds.
As required by the Act, the Secretary will certify those reactors
that meet the criteria for CNC Program eligibility, establish a process
for submittal of sealed bids from certified reactors, and allocate
credits to selected certified reactors, noting certain priority
[[Page 8571]]
considerations. Credits will be awarded over a 4-year period beginning
on the date of the selection. Nuclear reactor owners or operators may
apply for recertification after that time and additional credits may be
allocated through September 30, 2031, subject to the availability of
funds.
To be certified by DOE for eligibility to submit a bid for credits,
a nuclear reactor must meet certain economic and other criteria. The
Act delineates specific eligibility criteria and provides discretion
for the Secretary to define additional eligibility criteria for
certification of a qualifying nuclear reactor. The Secretary intends to
issue a detailed Request for Applications for Certification (Request
for Applications) and, from certified reactors, request sealed bids.
Such Request for Applications will explain the evaluation framework and
criteria for certification. The requirements of the subsequent sealed
bid auction for credits may be published either in the Request for
Applications or a subsequent guidance document. In establishing and
administering the CNC Program, DOE will comply with all applicable
statutes and regulations, including those requiring environmental
review processes.
II. Purpose
This NOI/RFI provides notice of DOE's intent to establish and
implement the CNC Program and solicits feedback regarding the proposed
approach described in this NOI/RFI. DOE's proposed approach includes a
Request for Applications to certify nuclear reactors for eligibility to
submit bids for allocation of credits. DOE intends to evaluate such
applications and certify reactors meeting the statutory requirements
and then conduct a competitive bidding process for bids from certified
nuclear reactors for allocation of available credits, and establish a
periodic audit, as specified in section 40323 of the Act. In addition,
DOE requests that interested parties submit to the Department a
confidential, non-binding notice of their interest in submitting a
confidential application for the CNC Program.
III. Proposed Approach
DOE proposes the following key elements and related rationale to
guide its evaluation of applications for certification. DOE intends to
administer the CNC Program pursuant to the authority provided in the
IIJA. Although DOE may develop a process that draws on concepts in the
Federal Acquisition Regulation and Federal financial assistance
regulations, those regulations do not govern the CNC Program.
Therefore, terms such as ``application,'' ``proposal,'' or ``bid''
should be construed in the context of the CNC Program and not as
commonly used in procurement or financial assistance actions. Feedback
is solicited on each element, as well as the overall approach
described.
(1) Inclusivity. Pursuant to section 40323(e)(3) of IIJA, DOE
intends to utilize, to the maximum extent practicable, spending
authority created by the Act to allocate credits to as many certified
nuclear reactors as possible. DOE encourages the submission of
applications for certification from all operating nuclear reactors that
project ceasing operation due to economic factors and meet other
criteria as specified.
(2) Confidentiality. DOE will protect confidential, private,
proprietary, or privileged business information from public release as
allowed by statute and regulation unless otherwise approved by the
applicant. Unless and until an applicant receives an award, DOE will
treat the identity of each applicant and other identifying information
as confidential business information for purposes of the Freedom of
Information Act.
(3) Acceptance of Applications. The Act directs that the Secretary
accept reactor certification applications for 120 days following the
Act's enactment, after which time the Secretary will evaluate and issue
a decision on certification within 60 days. Reactors that receive State
assistance including State zero-emission credits, State clean energy
contracts, or other State program assistance may apply for
certification beginning after the initial 120-day period. All non-
certified reactors may apply during subsequent annual application
periods. DOE proposes that applications for certification should be
submitted for each individual reactor seeking credits. An exception is
offered if the applicant asserts that there are multiple units at a
given site with substantially identical financial situations,
operations structures, and costs in which case a single application can
be made for multiple reactors. In this circumstance, DOE proposes that
the applicant should delineate in the single application the attributes
of each individual reactor.
(4) Standards of Analyses and Representation. Recognizing that the
economic factors facing each reactor are specific to each owner and/or
operator, and further recognizing that operating and market assessments
may be inherently uncertain, DOE proposes to request that applicants
for certification make a representation of the economic situation of
the reactor. Applicants may be required to provide their modeling
approach, data, and methodology to support their claim of projected
ceasing operations, and describe how its modeling approach, data, and
methodology are consistent with those it makes for other business
planning and filings, or fully explain any inconsistencies. DOE seeks
comment on whether it should establish a standard modeling approach and
methodology that each applicant must complete as part of the
application for certification in addition to, or instead of, any
modeling approach and methodology that an applicant may propose. DOE
anticipates that applicants will provide both publicly available and
privately held data to validate the assumptions, data and methodologies
used. DOE also anticipates that the rules governing the protection of
business proprietary and procurement sensitive information may apply to
the documentation submitted by applicants. As such, applicants will be
expected to mark all submitted documents appropriately as described in
Section IX.
(5) Evaluation of Applications for Certification. DOE proposes to
establish a review process, using a review panel comprised of DOE
personnel. The panel will verify that the applicant has addressed each
relevant aspect of certification, consistent with requirements and
evaluation criteria as specified in the Request for Application.
(6) NRC Assurance. DOE intends to rely on the NRC to indicate
whether they have reasonable assurance that a reactor will continue to
be operated in accordance with the current licensing basis and poses no
significant safety hazards.
(7) Consultation with Heads of Other Agencies. The Secretary will
establish a process for the evaluation of bids in consultation with the
heads of other applicable federal agencies.
(8) Terminology. For the purposes of the CNC Program, DOE proposes
that the term ``credit'' describes a claim to funds appropriated by the
Act and administered through the CNC Program to successful applicants.
A ``reactor'' is defined as an individual unit.
(9) Credit Allocation and Funds Disbursement. DOE intends to
allocate credits to as many certified nuclear reactors as possible
consistent with the intent of the Act. Each award is intended to cover
a 4-year period, with funds distributed annually based on the
allocation of credits. DOE may obligate up to $1.2 billion of
appropriated funds in Fiscal Year 2022 for the CNC Program and amounts
in excess of $1.2 billion
[[Page 8572]]
required to fund awarded credits for subsequent fiscal years will be
subject to the availability of funds.
(10) Audit. Market and operations circumstances may change over the
award period, and the economic loss forecasted in the nuclear reactor's
original bid may, in practice, be over- or underestimated. DOE intends
to conduct a periodic audit of awardees, requesting a yearly
operational and economic report from each awardee to assess any
divergences from the projections made at the time of certification and
the actual situation in each year with respect to economic
circumstances and status of the awardee's contractual commitments, such
as megawatt-hours produced and other applicable contractual
requirements. The schedule for annual reporting and funds disbursement
will be determined by DOE and will consider the awardee's business
processes, to the extent practical.
(11) Adjustment. In the event that actual economic performance
during the period is such that the nuclear reactor did ``not operate at
an annual loss in the absence of an allocation of credits,'' section
40323(g)(2) of the Act requires DOE to provide for recapture of
allocated credits. As a means to reduce the need for recapture, it may
be appropriate for DOE to create an annual settlement mechanism through
which the value of a reactor's credit allocation would be adjusted
based on the bundle of market prices to which it is exposed. In this
manner, several State zero emissions credits (ZEC) programs use market
indices to adjust ZEC values. Applicants may be required to propose an
index mechanism or a strike price against which market price values
would be netted, or DOE may select a generic index or indexing
methodology to be applied to all applications. If an indexing mechanism
is employed, DOE proposes the index should be tied to economic factors
related to the nuclear reactor's operating profit or loss, and might
include, for example, change in energy and capacity prices and benefits
received from federal and state programs such as tax credits that
reduce economic loss. It may also be prudent to place a ceiling on the
adjusted credit value, for example to ensure that falling market prices
do not cause DOE to owe more in a given fiscal year than its total
amount of appropriated funds available.
(12) Recapture. If an adjustment to allocated credits as described
above is not possible despite material changes in economic performance,
or if the reactor terminates operations, DOE may recapture the
allocation of credits in part or in whole in accordance with the Act.
The Act directs the Secretary to provide for the recapture of an
allocation of credits from a nuclear reactor if the nuclear reactor (a)
terminates operations; or (b) does not operate at an annual loss in the
absence of an allocation of credits.
In addition to feedback on each element described, specific
questions regarding the design of the CNC Program are provided in
Section VI.
IV. Certification Criteria
To implement the requirements of the CNC Program, DOE will
establish a certification process to solicit applications from reactor
owners and operators to establish eligibility for certification to be
eligible to submit a sealed bid for allocation of credits. The
applicant representing a nuclear reactor that is projected to cease
operations due to economic factors will be required to submit to the
Secretary information necessary to meet the minimum criteria to be
certified. The Secretary will evaluate this information to determine if
the nuclear reactor meets the minimum certification requirements to be
eligible to submit a bid to be allocated credits, as established in
section 40323(c)(2)(A)(ii) of the Act. DOE intends to evaluate seven
certification categories as outlined in the Act. These categories
include:
<bullet> Category 1--Competitive Electricity Market: The applicant
must demonstrate that the nuclear reactor competes in a competitive
electricity market.
<bullet> Category 2--Economic Factors: The applicant must
demonstrate that the nuclear reactor is projected to cease operations
due to economic factors. Applicants must include information on the
operating costs necessary to make the certification determination,
including, but not limited to, average annual operating loss per
megawatt hour over the 4-year period for which credits would be
allocated.
<bullet> Category 3--Emissions Impact: The applicant must estimate
the potential incremental air pollutants that would result if the
nuclear reactor were to cease operation. Applicants must demonstrate an
increase in these emissions if operations of the nuclear reactor were
to cease and the power generation were replaced with other types of
generation.
<bullet> Category 4--Post-Support Operations Plan: The applicant
must provide a plan to sustain operation of the reactor after the 4-
year award period, either without future credits or with a reduced
level of credits.
<bullet> Category 5--Uranium and Fuel Source: The applicant must
identify, to the extent known, where fuel for the reactor will be
sourced over the 4-year period for which credits may be allocated,
including the uranium, conversion, enrichment, and fabrication source.
In determining whether to certify a reactor, priority will be given 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.
<bullet> Category 6--NRC Assurance: The NRC has reasonable
assurance the reactor will continue to be operated in accordance with
the current licensing basis and poses no significant safety hazards.
<bullet> Category 7--Other Criteria: Other criteria that may be
identified by the Secretary to be considered in certification.
A general description of DOE's proposed evaluation consideration in
each certification category is described below. Feedback is solicited
regarding the intent and rationale described in each category, and/or
terminology used and other aspects of the proposed criteria or
additional criteria that might be considered. Additional, specific
questions regarding the proposed evaluation considerations are provided
in Section VI.
Category 1--Compete in a Competitive Electricity Market
To be eligible for certification, section 40323(a) of the Act
requires that a nuclear reactor ``competes in a competitive electricity
market.'' DOE proposes to interpret the Act as independent of reactor
ownership. That is, a reactor may be deemed to compete in a competitive
electricity market regardless of whether it is owned by a merchant
generation company, a regulated utility, a public power utility, or
another entity. DOE proposes the applicant should describe in detail
how it competes in a competitive electricity market based on its
exposure to market prices and other factors. DOE solicits comment on
whether and under what circumstances the following commercial
arrangements would qualify as competing in a competitive market:
<bullet> Market dispatch (i.e., based on bids) by an Independent
System Operator or Regional Transmission Organization (e.g., ISO New
England, New York Independent System Operator, PJM Interconnection,
Midcontinent Independent System Operator, Electric Reliability Council
of Texas, Southwest Power Pool, and California Independent System
Operator) in a real time energy market;
<bullet> Participation in another market-based selection mechanism
for
[[Page 8573]]
electricity services such as a capacity market, ancillary services
market, or day-ahead energy market;
<bullet> Sales from the nuclear reactor using Federal Energy
Regulatory Commission market-based rate authority;
<bullet> Merit order dispatch (i.e., based on economics and impact
on total system costs) by a vertically integrated utility; and
<bullet> Selection in an all-source competitive solicitation
process administered by a State public utility commission.
Category 2--Economic Factors
Section 40323(c) of the Act sets out the requirements for
certification of an eligible nuclear reactor. To be eligible for
certification, the Act requires that the nuclear reactor is projected
to cease operations due to economic factors. DOE proposes that:
(a) Economic factors include, but are not limited to, the
following: Anticipated cost of producing electricity; anticipated
market pricing, including all out-of-market revenues; regulated
revenues; monetization of risk using reasonable and appropriate methods
for the specific market, which may include impacts of renewable and
clean energy mandates, energy source and delivery mandates, and others;
operations and maintenance costs; capital costs, including depreciation
and amortization; administrative costs, including corporate and similar
allocations; and accounting for the operational risk and market risks
faced. The sum of these factors provides a projection of the average
profit, or loss, associated with the ongoing operation of the reactor,
for each year in the prospective 4-year award period. Information will
be requested for each year of the 4-year period, showing anticipated
yearly changes (e.g., outages, etc.). To be certified as eligible to
submit a bid for credits, DOE proposes that the nuclear reactor must
demonstrate that it projects an average annual operating loss over the
4-year period for which credits would be allocated.
(b) Consistent with the Act, DOE will consider all sources of
revenue that a nuclear power owner or operator receives or expects to
receive in the 4-year period during which credits would be allocated.
For example, revenue may come from short-term power sales, power
contracts, electricity and capacity markets, ZEC payments, revenue from
other energy services (i.e., ancillary services), revenue from other
products (e.g., heat energy, desalinated water, and hydrogen), and
other federal and state programs, including tax credits. With respect
to a regulated or public power utility (e.g., with cost recovery in
retail rates) revenue would also include amounts collected in rates
relating to or arising from the nuclear reactor for which certification
is sought.
(c) The representation of economic circumstance should be made by
the reactor owner or operator, consistent with market analyses,
operations cost assessments, risk (operations, business, market, or
other) monetization and analyses, and other standards used by the owner
or operator in their standard business process associated with the
specific reactor(s).
(d) The application for certification should clearly state what
business, operational, and market risk is relevant to the operating
unit profitability, and how those risks are monetized. DOE proposes to
interpret the Act as considering a wide range of business, operational,
and market risk factors. Any such risk that may result in the early
closure of an operating nuclear reactor would be relevant. Applicants
should explain each risk and provide estimates of the financial/
economic impact of the risk for the nuclear reactor. DOE is seeking
comment on types of risk to consider and whether it should consider a
wide range of risk factors.
(e) The applicant should provide the analysis used to calculate its
economic circumstance and a description of key factors and inputs used
in these analyses, describe the sensitivity of the analyses to key
factors, discuss uncertainties associated with the projections, and
describe why the assumptions used in the analyses and the inputs are
reasonable based on the applicant's market circumstance.
(f) The revenue assessment used to calculate economic circumstance
must include all payments projected to be received as a result of State
and Federal support programs. If such funds, or a portion of such
funds, would cease if an award is made by the CNC Program, then this
expected change should be reflected in the assessment.
(g) The applicant should describe how the method of analyses of
economic circumstance is consistent with that used in other decision
making (e.g., rate cases, tax filings, insurance statements, filings
with the Securities and Exchange Commission), or why there would be a
difference in the method or outcome of analyses.
Category 3--Emissions Impact
To be eligible for certification, the applicant must provide an
estimate of the impact of reactor closure on emission of air
pollutants. The Secretary must assess this information and determine
that emission of air pollutants would reasonably be expected to
increase if the reactor ceases operations. DOE proposes to consider
estimates containing the following information:
(a) Assessment of the impact on emissions based on the six (6)
criteria air pollutants (carbon monoxide, lead, ground-level ozone,
particulate matter, nitrogen dioxide, and sulfur dioxide) defined by
the U.S. Environmental Protection Agency (EPA), as well as carbon
dioxide and methane.
(b) Air emissions estimates based on the emissions characteristics
of the capacity and electricity generation expected to replace the
capacity and electricity generation supplied by the reactor.
(c) A description of how the applicant arrived at the estimate of
emissions impacts.
Category 4--Post-Support Operations Plan
To be eligible for certification, the applicant must provide a
detailed plan to sustain operations at the conclusion of the award
period. The Act states that this plan may include a planning basis of
either receiving additional support (credits) at a reduced level than
anticipated for the initial award period or one where no additional
support (credits) is received. DOE recognizes that at the time of
application for certification, the applicant will not know what level
of assistance may be provided through the CNC Program, and that post-
support operations plans will be uncertain because of this and other
factors. DOE proposes that:
(a) The required detailed plan to sustain operations post-support
include an overview description of actions that may be taken by the
applicant after the award period, possible changes in market conditions
over the 4-year award period, or other circumstances or factors that
may be anticipated during the award period that will alter the economic
assessment provided and the level of requested assistance (credits).
(b) The assessment of post-award planning should be consistent with
analyses, assumptions, data, and methodologies used in declaring the
economic circumstance of the reactor (Category 2 previously), while
accounting for impact of receiving some level of assistance (credits).
Category 5--Uranium and Fuel Source
The Act requires an applicant for certification to provide
information on the source of the uranium and the location where it is
processed and
[[Page 8574]]
manufactured into fuel. DOE proposes that:
(a) The applicant includes in the application for certification
information regarding the countries of origin of the uranium planned to
be used in the award period, where it was/will be converted and
enriched, and where the fuel was/will be fabricated, to the extent this
is known or can be reasonably estimated.
(b) The certification requirements do not include any specific
sourcing requirement in determining whether to certify, but that
priority be given to reactors that use, to the maximum extent
available, uranium that is produced, converted, enriched and fabricated
into fuel assemblies in the United States.
Category 6--NRC Assurance
The Act requires that the NRC has reasonable assurance that the
nuclear reactor will continue to operate in accordance with its current
licensing basis and that it poses no significant safety hazards. DOE
intends to rely on input from the NRC to meet this requirement.
Category 7--Other Information
The Act provides the Secretary authority to require an applicant to
submit other information the Secretary determines to be appropriate in
meeting the fundamental objective of the Act--to enable clean and safe
energy generation. This other information may include external and
internal impacts to the applicant (i.e., owner or operator of a nuclear
reactor) that may not be covered in the above-stated certification
criteria. Relevant questions as to whether DOE should consider
additional criteria for certification are included in Section VI.
V. Civil Nuclear Credit Program Process
Key steps in the process that DOE proposes for the Civil Nuclear
Credit Program are described below, including evaluation of
applications for certification, bids for credits, credit allocation,
and funds distribution. DOE requests feedback on each element of the
process, as well as on the specific questions described in Section VI.
a. Evaluation of Applications for Certification. As provided in
section 40323(c)(1)(B) of the Act, certification applications from
nuclear reactors not presently receiving assistance from State programs
will be accepted during the initial application period. DOE will
evaluate all submissions and determine eligibility for certification
within 60 days, including notifying each applicant if the application
was certified or describing the reasons why the certification was
denied. DOE may request additional information after submission of
initial applications. After the initial application period described
above, DOE will conduct another application period for certification of
nuclear reactors that are receiving State assistance, and others that
had not previously applied. DOE intends to establish an annual
application process following these initial application periods for all
non-certified reactors.
DOE intends to establish a review panel to evaluate applications
for certification. The review will consist of an assessment of whether
the information and data provided by the applicant are sufficient to
meet the requirements for certification as stated in the Act and
articulated in the Request for Applications of a nuclear reactor.
The Secretary will make the final determination on certification.
If a nuclear reactor is certified, the applicant will be invited to
submit a sealed bid for credits.
b. Bids for Credits. DOE proposes to establish a process for
certified nuclear reactors to submit sealed bids for credits with a
deadline that is not more than 30 days following notification of the
nuclear reactor's certification. The sealed bids should include the
information and data outlined in section 40323(d) of the Act. Bidders
should submit bids for credits which describe a price per megawatt-hour
and commitment to provide generation in megawatt-hours for a 4-year
period.
c. Allocation of Credits and Funds Distribution. DOE will establish
a review panel, which may be comprised of the same experts as described
in the Evaluation of Applications for Certification above, to evaluate
submitted sealed bids for credits from certified nuclear reactors. The
review panel will evaluate the bids and make its recommendation to the
Secretary for selection of certified nuclear reactors to be allocated
credits. DOE proposes to award credits by starting with the most cost-
effective bids and proceeding until available funds are exhausted. DOE
intends to allocate as many credits as available funds allow over the
lifetime of the program.
VI. Questions for Request for Information
With this RFI, DOE seeks comments regarding all elements of the
proposed approach for the CNC Program described in the previous
sections. In addition, DOE seeks comment on the following specific
questions:
(1) Do the proposed approach and considerations for certification
of a qualified nuclear reactor, including key aspects of CNC Program
implementation and other aspects and outcomes of the CNC Program, as
described in Section III, support the intent of Congress to assist
nuclear reactors at risk of early closure? Why or why not? If not,
please suggest alternative approaches to be considered.
(2) Are the evaluation criteria being considered for certification
as described in this RFI appropriate? If not, please suggest
alternative criteria.
(3) Is the information requested for the applications for
certification appropriate and sufficient? Why or why not?
(4) Is the proposed CNC Program structure, including timing,
process, and evaluation approach for certification, acceptance of bids,
credit allocation, and periodic audits appropriate? If not, please
suggest alternatives.
(5) Please identify any regulatory or business barriers that might
impede the implementation of the CNC Program. Please propose solutions
to eliminate or mitigate any identified barriers.
(6) Should DOE establish a standard format and methodology for each
applicant to present economic data, projections, analysis, and other
information in support of an application for certification? If so,
please address the components that should be included as part of a
standard format and methodology and what information should be
required.
(7) What information should be considered by the Secretary in
assessments of the marginal impact of projected reactor closures on
emission of air pollutants? Should a standard methodology be adopted to
address estimation of incremental air pollutants? Why or why not? What
methodologies could be considered?
(8) How should the certification methodology prioritize reactors
that utilize U.S.-produced fuel and fuel constituents? Are there
additional criteria that should be prioritized, and if so, how?
(9) Is the use of an indexing mechanism to re-set annually the
value of credits allocated to a nuclear reactor as described herein
appropriate? Please consider the advantages and disadvantages of such
an approach and the basis for such an approach. Should the indexing
mechanism be subject to a floor and/or cap? How would an indexing
mechanism interact with the recapture provision discussed herein?
(10) Using the bid requirements in the Act of price per megawatt-
hour and megawatt-hour commitment for a 4-year
[[Page 8575]]
period, should DOE award credits starting with the lowest price bid and
continuing until available funds are exhausted? What policy
considerations or parameters other than bid price would inform the
determination of which bids would most cost-effectively achieve the
objectives of the Act? Should DOE use any other methodology or criteria
for awarding credits to bidders?
(11) How should DOE incorporate evaluation of the impacts of the
closure or continued operation of nuclear reactors on disadvantaged
communities?
(12) Please provide any other input DOE should consider in the
establishment and implementation of the CNC Program, including any
other information and criteria that might be useful in DOE's approach
for and implementation of both the certification process and the
sealed-bid process for credits.
DOE requests expedited submission of comments on the proposed
approach to certification and the specific questions with respect to
certification.
VII. Request for Statements of Interest
DOE intends to solicit applications for certification and, for
certified reactors, sealed bids. In order to provide advance notice of
the number and type of nuclear reactors (i.e., those that are or are
not receiving State support) that may wish to participate in the
program, DOE is requesting non-binding statements of interest.
Submissions that comply with relevant requirements outlined in Section
IX regarding Business Proprietary Information will be kept
confidential. Unless and until an applicant receives an award, DOE will
treat the identity of each applicant and other identifying information
as confidential business information for purposes of the Freedom of
Information Act.
VIII. Response Guidelines
NOI responses shall include:
<bullet> NOI/RFI title and reference number;
<bullet> Name(s), phone number(s), and email address(es) for the
principal point(s) of contact;
<bullet> Institution or organization affiliation and postal
address; and
<bullet> Your organization's non-binding expression of interest in
the CNC Program.
NOI responses shall be emailed directly to Alden Allen, DOE
Contract Specialist, at: <a href="/cdn-cgi/l/email-protection#87e9e8eeaae4e9e4c7eee3a9e3e8e2a9e0e8f1"><span class="__cf_email__" data-cfemail="2a444543074944496a434e044e454f044d455c">[email protected]</span></a>.
RFI responses shall include:
<bullet> NOI/RFI title and reference number;
<bullet> Name(s), phone number(s), and email address(es) for the
principal point(s) of contact;
<bullet> Institution or organization affiliation and postal
address; and
<bullet> Clear indication of the specific question(s) to which you
are responding.
Responses including proprietary information will be handled per
guidance in Section IX.
RFI responses shall be emailed to <a href="/cdn-cgi/l/email-protection#dba9bdb2f6b8b5b89bb5aeb8b7bebaa9f5beb5bea9bca2f5bcb4ad"><span class="__cf_email__" data-cfemail="c1b3a7a8eca2afa281afb4a2ada4a0b3efa4afa4b3a6b8efa6aeb7">[email protected]</span></a> or
submitted electronically to <a href="http://www.regulations.gov">www.regulations.gov</a>, as described
previously.
IX. Business Proprietary Information
Pursuant to 10 CFR 1004.11, any person submitting information he or
she believes to be business proprietary and exempt by law from public
disclosure should submit via email two qwell-marked copies: One copy of
the document marked ``Business Proprietary'' including all the
information believed to be proprietary, and one copy of the document
marked ``non-Proprietary'' deleting all information believed to be
business proprietary. DOE will make its own determination about the
business proprietary status of the information and treat it according
to its determination. Factors of interest to DOE when evaluating
requests to treat submitted information as business proprietary
include: (1) A description of the items; (2) whether and why such items
are customarily treated as business proprietary within the industry;
(3) whether the information is generally known by or available from
other sources; (4) whether the information has previously been made
available to others without obligation concerning its business
proprietary nature; (5) an explanation of the competitive injury to the
submitting person which would result from public disclosure; (6) when
such information might lose its business proprietary character due to
the passage of time; and (7) why disclosure of the information would be
contrary to the public interest.
Signing Authority
This document of the Department of Energy was signed on February 9,
2022, by Andrew Griffith, Deputy Assistant Secretary for Nuclear Fuel
Cycle and Supply Chain, pursuant to delegated authority from the
Secretary of Energy. That document with the original signature and date
is maintained by DOE. For administrative purposes only, and in
compliance with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of the Department of Energy. This administrative
process in no way alters the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on February 9, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-03156 Filed 2-14-22; 8:45 am]
BILLING CODE 6450-01-P
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</html>Indexed from Federal Register on February 15, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.