SECTION 3. TOLLING AND

EXTENSION OF THE CONTINUITY SAFE HARBOR

.01 Tolling and Extension of Continu- ity Safe Harbor To Mitigate Significant National Security Concerns . This notice provides that if all of the requirements set forth in this section 3.01 are satisfied, for purposes of §§ 45 and 48, the Continuity Safe Harbor will be tolled and extended for a period of time to account for delays that result from pursuing a modification to a Plan to mitigate significant national security concerns raised by the DOD (Tolling Period). On the date that the Tolling Period ends the Continuity Safe Harbor resumes. The Continuity Safe Harbor will be tolled and extended if all of the following requirements are satisfied:

(1) Construction has begun (within the meaning of the prior IRS notices) with respect to the facility or energy property that will generate the credits under §§ 45 or 48 pursuant to the Plan;

(2) Parties holding an ownership interest in property that is part of the Plan (or that will hold an ownership interest in property that is part of the Plan after such property is constructed), including (a) the facility or energy property, or (b) the additional equipment that is not part of the facility or energy property itself but which is necessary to connect the facility or energy property to the energy grid or to customers (including, but not limited to, a distribution or a transmission line or

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other interconnection equipment) have received one or more government permits or approvals necessary to implement the Plan;

(3) The DOD provides written notice directly to one or more of the parties described in paragraph (2) of this section 3.01 that one or more aspects of the Plan raises significant concerns related to national security and that modification of the Plan would be in the best interests of national security objectives;

(4) Such parties pursue a modification of the Plan acceptable to DOD to mitigate these significant national security concerns and to further the national security objectives; and

(5) The modification of the Plan requires the parties to obtain new or additional permits or licenses, which delays placing the facility or energy property in service.

.02 Calculation of Tolling Period . The Tolling Period will result in a day-for-day extension of the Continuity Safe Harbor. The first day of the Tolling Period is the date on which the DOD provides the written notice described in requirement (3) of section 3.01 of this notice. The last day of the Tolling Period is the date on which the parties described in requirement (2) of section 3.01 of this notice:

(1) obtain all new or additional permits or licenses (and any potential administrative appeals or potential judicial review by the applicable federal or state courts are finally resolved) described in section 3.01(5) of this notice; (2) obtain written confirmation that the new or additional permits or licenses described in section 3.01(5) of this notice to be completed will not be issued; or

(3) notify the relevant federal or state regulatory, permitting, and/or licensing authorities in writing that the modification of the Plan will no longer be pursued.

In no event shall the Tolling Period exceed a period of four years.

.03 Example . X has an ownership interest in a facility. In September 2016, X begins construction of the facility. As part of a Plan to connect the facility to the energy grid, a new transmission line must be constructed. Y will develop, own, and operate the new transmission line. The route for the proposed transmis

sion line runs adjacent to a DOD facility. In June 2018, Y receives all permits necessary for constructing the transmission line, although during the permitting process the DOD raised concerns with permitting authorities regarding the location of the proposed transmission line. Y identifies an alternative route for the transmission line and proposes to build the transmission line over this alternative route rather than over the original route. On December 1, 2018, Y receives a written notice from the DOD stating that the Plan raises significant concerns related to national security and that the proposed alternative route for the transmission line would be in the best interests of national security objectives. Constructing the transmission line along this alternative route requires that certain new permits and licenses be granted by various federal and state permitting and licensing agencies. On June 30, 2021, after any potential administrative appeals or potential judicial review of the permitting and licensing process have been resolved, Y obtains from the relevant federal and state agencies the new permits and licenses required to allow the transmission line to be completed.

The Tolling Period is calculated to run from December 1, 2018, through June 30, 2021 (943 days). The Continuity Safe Harbor will resume on July 1, 2021 and will be satisfied if the facility is placed in service by August 1, 2023 (943 days after December 31, 2020, which would have been the placed in service deadline under the Continuity Safe Harbor had it not been tolled and extended).