WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/USA/57 
2 October 2012 
 (12-5335) 
Committee on Subsidies and  
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions posed by the EUROPEAN UNION1 regarding the New and  
Full Notification of the UNITED STATES2 
  
 The following communication, dated 25 September 2012, is being circulated at the request of 
the Delegation of the United States. 
 
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Under Section:  ENERGY & FUELS (ENERGY DEVELOPMENT, STORAGE  
AND TRANSPORTATION & OTHER RELATED SECTORS ) 
 
 Title:  Energy Supply – Renewable Energy Resources  
 Question 1 
 
 Please define the competitiv e procedures and the eligibility criteria for private parties. 
 
Title:  Energy Conservation Programs – Transportation Sector 
 
Question 2 
 
 Please define the competitiv e procedures and the eligibility criteria for private parties. 
 
Title:  Energy Conservation Programs - Building Technologies 
 
Question 3 
 
 Please define the competitive proce dures and the eligible beneficiaries. 
 
Title:  Fossil Energy Research and Development 
 Question 4 
  Please specify the eligible beneficiaries a nd the form of assistance, as the current 
wording is not specific enough. 
 
                                                      
1 G/SCM/Q2/USA/52. 
2 G/SCM/N/220/USA.   G/SCM/Q2/USA/57 
Page 2 
 
 
  Reply 
 
 As noted previously in answering questions on prior U.S. subsidy notifications, as a general 
matter, the competitive procedures used to determin e participation are set forth in Department of 
Energy Regulations at Title 10, Code of Federal Regulations, Part 600.  Under these regulations, DOE 
is required to solicit applications for financial as sistance in a manner which provides for the maximum 
amount of competition feasible (10 CFR 600.6). 
  If DOE restricts eligibility, an explanation of wh y the restriction of eligibility is considered 
necessary shall be included in the solicitation, pr ogram rule, or published notice. Except when 
authorized by statute or program rule, if the aggregate amount of DOE funds available for award under a solicitation or published noti ce is $1,000,000 or more, such r estriction of eligibility must be 
supported by a written determination initiated by the program office and approved by an official no 
less than two levels above the initiating program offi cial and concurred in by the Contracting Officer 
and legal counsel.  Where the amount of DOE fund s is less than $1,000,000, the DOE Head of 
Contracting Activity and the Contracting Offer may approve the determination (10 CFR 600.6). 
  DOE may award a grant or cooperative agre ement on a noncompetitive basis only if the 
application satisfies one or more of the specific sel ection criteria set forth in the regulation.  These 
criteria include cases where the a pplicant has exclusive domestic capability to perform the activity 
successfully, based upon unique equipment, proprietary data, technical expertise, or other such unique 
qualifications as well as cases where the award im plements an agreement between the United States 
Government and a foreign government to f und a foreign applicant (10 CFR 600.6). 
 
 In order for DOE to make an award to any for-profit entity, DOE must determine that the 
applicant's participation will be in the economic intere st of the United States.  If the applicant is not a 
U.S. owned company, DOE must determine that th e parent company is incorporated in a foreign 
country that affords to companies owned by U.S. persons:  (1) national treatment with regard to 
access to government-supported joint ventures in energy research and development; (2) national 
treatment with regard to general investment opportu nities;  and (3) protection to intellectual property 
rights owned by such companies (10 CFR 600.500).  To assist DOE in making these determinations, 
the applicant must provide the relevant information to DOE. 
 
 It should be noted as well, as described in the U.S. notification, the DOE programs at issue generally focus on particular areas, such as: th e transportation sector, building technologies, industry 
(including sub-programs for "industries of the future "), fossil fuels, etc.  As such, the range of 
recipients interested in a particular program ma y be limited (e.g., a constr uction company may not be 
interested or able to compete e ffectively for funds under the trans portation program).  Assistance is 
often in the form of cost-sharing grants.  
 
Under Section:  OTHE R ENERGY AND FUELS 
 
Title:  Alcohol Fuel Credit 
 Question 5 
 
 Please specify whether the above concessions co ncern only fuels sold / used within the 
US or fuel exported as well.  If it concerns only fuel for domestic use, how is this ensured?  Does 
this scheme include imported fuel as well? 
  G/SCM/Q2/USA/57 
 Page 3 
 
 
  Reply 
 
 A credit is available for the alcohol fuel (etha nol) mixtures and alcohol fuel sold or used as 
fuel in the United States.  The credit expired on 31 December 2011.  Prior to this time alcohol fuel 
imported into the United States for use inside the United States would qualify for the alcohol fuel 
mixture credit.  The alcohol fuel mixture credit ma y not be claimed for alcohol produced outside the 
United States for use as a fuel outside the United States.  The United States includes any possession of 
the United States.  Ethanol produced outside th e United States for use in the United States would 
qualify for the credit.  Question 6  
 Please provide the criteria that a producer needs to meet in order to be qualified.  
Reply 
  All producers and importers of alcohol with a pr oof of at least 190 must be registered by the 
Internal Revenue Service.  An application (Internal  Revenue Service Form 637)  must be reviewed and 
approved before the taxpayer is registered for any act ivity.  The review may include inspection of the 
facilities premises during normal business hours without notice.    Title:  Biodiesel and Renewable Diesel Credit 
 Question 7 
 
 Please specify whether the above concessions co ncern only fuels sold / used within the 
US or fuel exported as well.  If it concerns only fuel for domestic use, how is this ensured?  Does 
this scheme include imported fuel as well? 
 Reply 
 
 A credit is available for biodiesel and renewabl e diesel sold or used as fuel in the United 
States.  The credits expired on 31 December 2011.  Prior to this time fuel imported into the United 
States for use inside the United States would qualify for the credits.  The credits may not be claimed 
for biodiesel produced outside the United States for use as a fuel outside the United States.  The 
United States includes any possession of the United St ates.  Biodiesel and renewable diesel produced 
outside the United States for use in the Un ited States would qualify for the credit 
 Question 8   Please provide the criteria that a producer needs to meet in order to be qualified. 
 
Reply 
 
 All producers and importers of biodiesel or re newable diesel must be registered with the 
Internal Revenue Service.  All persons producing blended taxable fuel must be registered.  An 
application (Internal Revenue Service Form 637) must  be reviewed and approv ed before the taxpayer 
is registered for any activity.  The review may in clude inspection of the facilities premises during 
normal business hours without notice.    G/SCM/Q2/USA/57 
Page 4 
 
 
  Title:  Alternative Fuels Credit  
 
Question 9  
 Please specify whether the above concession conc erns only fuel sold / used within the US 
or fuel exported as well. If it concerns only fuel  for domestic use, how is this ensured? Does this 
scheme include imported fuel as well?  
Reply 
  A credit is available for alternative fuels sold or  used as fuel in the United States.  The credits 
expired on 31 December 2011.  Prior to this time fu el imported into the United States for use inside 
the United States would qualify for the credits.  The credits may not be claimed for alternative fuel 
produced outside the United States for use as a fu el outside the United States.  The United States 
includes any possession of the United States.  Alterna tive fuel produced outside the United States for 
use in the United States wo uld qualify for the credit 
 
Question 10 
 
 Please provide the criteria that a producer needs to meet in order to be qualified. 
 Reply 
 
 All producers and importers of alternative fuels must be registered with the Internal Revenue 
Service.  An application (Internal Revenue Service Form 637) must be reviewed and approved before 
the taxpayer is registered for any activity.  Th e review may include inspection of the facilities 
premises during normal business hours without notice.   
 
Title:  Credits for Investment in Advanced C oal Facilities and Advanced Gasification Facilities 
 
Question 11 
 
 Please specify the qualified facilities.  
Reply 
  Phase I 
 
Under the first round the advanced coal program  and the advanced gasification program, the 
Internal Revenue Code prohibited disclosure of tax re turn information.  Those who chose to have their 
selection acknowledged publicly were: 
 
 Duke Energy – Edwardsport IGCC Project, Edwardsport, IN 
 Tampa Electric Company, Polk County, FL 
 Southern Company -- Mississippi Power Company, Kemper County, MS  Duke Energy Cliffside Modernization Proj ects, Cleveland and Rutherford County, NC 
 E.ON U.S., Louisville Gas and Electric and Kentucky Utilities Co., Bedford, KY 
 Carson Hydrogen Power, LLC: Carson Hydrogen Power Project, Carson, CA 
 TX Energy, LLC: Longview Gasification and Refueling Project, Longview, TX 
  G/SCM/Q2/USA/57 
 Page 5 
 
 
   Phase II 
 
 The Internal Revenue Service announced the results of the 2009-2010 allocation round of the 
advanced coal and advanced gasification program in IRS Announcement 2010-56.  This 
announcement can be found at the follow ing Internal Revenue Service website: 
http://www.irs.gov/pub/irs-drop/a-10-56.pdf  
 
Under Section:  METALS, MINERALS AND EXTRACTION (NON-FUEL) 
 
Title:  Emergency Steel Loan Guarantee Program 
 
Question 12 
 
 Please specify the criteria on which steel companies are qualified. 
Reply 
 
 The term 'qualified steel company' means any company that — (A) is incorporated under the laws of any State; (B) is engaged in the pr oduction and manufacture of a product defined by the 
American Iron and Steel Institute  as a basic steel mill product, including ingots, slab and billets, 
plates, flat-rolled steel, sections and structural produ cts, bars, rail type pr oducts, pipe and tube, and 
wire rod; and (C) has experienced layoffs, productio n losses, or financial losses since the beginning of 
the steel import crisis, in January 1998 or that operates substantial assets of a company that meets 
these qualifications.  (see Pub L 106-51, Sec. 101(c)(3)).  
 
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