G/SCM/Q2/USA/65  
 
26 April 2016  
(16-2323)  Page: 1/3  
Committee on Subsidies and  
Countervailing Measures  Original: English  
 
 SUBSIDIES 
REPLIES TO QUESTIONS POSED BY AUSTRALIA1 REGARDING THE 
NEW AND FULL NOTIFICATION OF THE UNITED STATES2 
The following communication, dated 25 April 2016, is being circulated at the request of the 
Delegation of the United States. 
 
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2 ENERGY & FUELS 2.2 Energy Conservation Programmes – Transportation Sector (Page 15) 
 
Question 1  
The notification notes that participation is  "through various competitive procedures, 
which are open to all eligible private partie s". The United Stated previously indicated 
that the Department of Energy (DOE) will look  at whether an applicant's participation is 
in the economic interest of the United States.  
 
 What factors does the DOE use in assessing this? 
Question 2 
 
The United States also previously noted th at the eligibility criteria are set out in 
regulation. 
 
 Could the United States please el aborate on the eligibility criteria? 
2.4 Energy Conservation Programmes – Industry Sector (Page 17) 
 
Question 3 
 
 Could the United States please elaborat e on the eligibility criteria for these 
grants. 
Reply 
 
As noted in previous answers, participation in the energy conservation programmes is determined 
through various competitive procedures, which are open to all eligible parties. Furthermore, each of the referenced programmes focuses on particular areas, such as: the transportation sector, industry sector, etc. 
 
As a general matter, the competitive procedures used to determine participation are set forth in Department of Energy Regulations at Title 10, Code  of Federal Regulations, Part 600. Under these 
                                               
1 G/SCM/Q2/USA/62. 
2 G/SCM/N/253/USA. G/SCM/Q2/USA/65 
 
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  regulations, DOE is required to solicit applications for financial assistance in a manner which 
provides for the maximum amount of competition feasible (10 CFR 600.6).  DOE's Merit Review Guide for Financial Assistance can be found at: 
http://www.energy.gov/management/downloads/ merit-review-guide-f inancial-assistance . 
 
2.7 Advanced Technology Vehicles Manufac turing Loan Programme (ATVM) (Page 20) 
 
Question 4  The United States has previously elaborated  on the eligibility requirements for this 
programme. However, in terms of those eligib ility requirements, could the United States 
please clarify whether eligible participants are required to produce a certain level of 
vehicles or components in order to qualify for financing.  
 
Reply 
 
No. 
 4 FISHERIES 4.1 Fisheries Finance Pr ogramme (FFP) (Page 30) 
 
Question 5  
The programme currently appears to provide for vessel buybacks.  
 
 Could the United States please clarif y whether these vessels are scrapped or 
removed from a specific fishery. 
Reply 
Fishing capacity reduction loan programmes require that a vessel be either scrapped or relinquish 
its fishery endorsement. The contractual agreement also requires that a vessel be prohibited from 
fishing anywhere in the world. 
 
 Could the United States elaborate on ho w it calculates the value of a vessel 
which is to be scrapped. 
Reply 
The National Marine Fishery Service does not base  its scrapping requirement on the value of the 
vessel. The vessel is tendered to the government  through a reverse auction process that usually 
involves vessels with permits, valued in the aggregate. No specific vessel valuation is done.  
 
7 METALS, MINERALS AND EXTRACTION (NON FUEL) 
7.1 Emergency Steel Loan Guarantee Programme (Page 38) 
 Question 6 
 
The notification indicates that the Guarante e Board has the authority to guarantee loans 
until 31 December 2011 and that there are no applications pending under the 
programme. 
 
 Could the United States please advise  whether the programme is ongoing. 
Reply 
 
The programme has been terminated and there are no outstanding loans under the programme. 
 G/SCM/Q2/USA/65 
 
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  8 SHIPYARDS 
8.1 Assistance to Small Shipyards Grant Programme (Page 41)  Question 7 
 
 Could the United States please advise whether this programme is ongoing. 
 How many shipyards were beneficiaries over the two notification reporting 
periods? 
Reply 
 
In 2011, 13 grants were awarded. In 2012, 15 gran ts were awarded. In 2013, 12 grants awarded. 
No grants were funded for 2014 and 2015. Future funding depends on the Congress. 
  
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