G/TRIMS/W/144  
 
3 October 2014  
(14-5582)  Page: 1/5  
Committee on Trade-Related Investment Measures  Original: English  
 
CERTAIN LOCAL CONTENT REQUIREMENTS IN SOME OF THE 
RENEWABLE ENERGY SECTOR PROGRAMS  
FOLLOW-UP QUESTIONS POSED BY INDIA TO THE UNITED STATES1 
The following communication, dated 1 October 2014, is being circulated at the request of the 
Delegation of India.  
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  India appreciates the responses the United Stat es has provided in document G/TRIMS/W/129 
(4 October 2013) and G/TRIMS/W/129/Rev.1 (29 October 2013) in answer to the questions posed 
by India in document G/TRIMS/W/117 (17 April 2013) on four of the Renewable Energy programs maintained at the Sub Federal Level in the US. The exchange of information notwithstanding, India 
continues to have a number of questions on the schemes as the US has provided general 
comments on these schemes, certain issues remain unanswered and certain points would require further clarification from the US.  
 
A. Michigan: Renewable Ener gy Credits under the Clean, Renewable, and Efficient 
Energy Act (Public Act 295) 
 
Question 1 
 The comments provided by the United States do not clarify as to what is the legal status, 
constitution, composition and functions of the Michigan Public Service Commission. What is the 
role of the Michigan Public Service Commission in the formulation, approval, implementation, grant and allotment, etc. of the Renewable Energy Cred its? (Note: This was India's question No. 3.) 
 
Question 2  
 Under question No. 6, India had requested the Un ited States to provide details regarding the 
method of grant, transfer and trading of rene wable energy credits granted under the Clean, 
Renewable, and Efficient Energy Act (Public Act 295). India requests the United States once again to provide the information. 
 
B. California: LADWP – Solar Ph otovoltaic Incentive Program 
 
On its website, while describing the program status and incentive levels for the solar incentive 
program, the LADWP notes that:  
"*LAMC – Los Angeles Manufacturing Credit: Customers who purchase & install 
PV components from a manufacturing facility located within the City of Los Angeles or 
who install building integrated photovoltaic systems (BIPV) may qualify for a higher incentive rate." 
The LADWP Solar Photovoltaic Incentive Program Guidelines states that: 
 
                                               
1 G/TRIMS/W/129/Rev.1. G/TRIMS/W/144 
 
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  "… Additionally, the LADWP currently prov ides a Los Angeles Manufacturing Credit 
(LAMC) for qualifying PV equipment manufactured in Los Angeles as approved by the LADWP according to Section 8.0 of these gu idelines. The goal of the LAMC is to 
promote local economic development through manufacturing and job creation within 
the City of Los Angeles and to reduce costs through increased volume and competition 
…". 
The guidelines further provide as follows: 
"8.3 Minimum Requirements to Qualify for LAMC 
8.3.1 Manufacturing Location and Controls 
 To qualify for the LAMC, PV modules and solar power equipment must be 
manufactured within the limits of the City  of Los Angeles. The manufacturer must 
have received written approval from the LADWP as qualifying for the LAMC. 
 For installations that use this product, the manufacturer must certify to LADWP 
by means of documentation, inventory control summaries, physical plant visits, and 
other means necessary, as determined by LADWP, sufficient to document local 
manufacturing before any LAMC payment will be made. The LADWP reserves the right 
to audit the records and inspect the premis es of manufacturers requesting the LAMC. 
 To qualify for the LAMC and be consider ed locally manufactured, a minimum of 
50% of the components of the finished PV modules or qualifying equipment must have 
been manufactured and/or assembled within the City of Los Angeles. 
 Alternatively, LAMC status may be obtained through the submission of and 
acceptance of the manufacturer's local busi ness plan by LADWP. Such local business 
plan should clearly demonstrate and document the use of local workforce, locally-manufactured components, or other local economic resources such that 50% or more 
of the manufactured product's wholesale value is derived from the aforementioned 
local resources. Business plans submitted shall be current, and must be renewed 
annually. Quarterly financial and labor business reports may be required." (Emphasis added). 
Question  3 
 In light of the above, India would request the US  to provide the following information on this 
program: 
 
a. Whether the LAMC is provided to the applicant when all requirements indicated in the 
text underlined above are fulfilled or whether the LAMC may be granted when any of the 
requirements are fulfilled by the applicant. 
b. The LADWP Solar Photovoltaic Incentive Pr ogram Guidelines state that 'The LADWP 
retains sole discretion to determine if a manufacturing process or manufactured 
equipment qualifies for the LAMC and only those that receive written approval from 
LADWP may receive the LAMC'. In the exercise of its 'sole discretion', what criteria does 
the LADWP use in its determination of a qualifying 'manufacturing process' and 
qualifying 'manufactured equipment'? Are these cr iteria or any other criteria listed out in 
any other document, or anywhere else apart from 8.3 of these Guidelines? If yes, the United States is requested to supply details of the same. 
c. What are the conditions for fulfillment of criteria of ' PV modules and solar power 
equipment must be manufactured within the limits of the City of Los Angeles ' as used in 
the LADWP Solar Photovoltaic Incentive Program Guidelines? Specifically, the United States is requested to explain how it determines " manufactured " for the purposes of 
these guidelines. G/TRIMS/W/144 
 
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  d. What are the conditions for fulfillment of criteria of 'a minimum of 50% of the 
components of the finished PV modules or qualifying equipment must have been manufactured and/or assembled within the City of Los Angeles', as used in the LADWP Solar Photovoltaic Incentive Program Guidelines? How does the LADWP determine when 
"50% of the components … have been manufac tured and/ or assembled within the City 
of Los Angeles"? What is the 'qualifying equipm ent'? If there is a list of such qualifying 
equipment, the same may kindly be provided. 
e. What are the conditions for fulfillment of criteria of 'other local economic resources such 
that 50% or more of the manufactured prod uct's wholesale value is derived from the 
aforementioned local resources' as used in the LADWP Solar Photovoltaic Incentive Program Guidelines? What can be 'other local economic resources' other than local 
workforce and locally-manufactured components? 
f. Is an applicant required to fulfill any additional condition apart from those stated in 
LADWP Solar Photovoltaic Incentive Program Guidelines 8.3 to be eligible for the LAMC? 
If yes, the United States is requested to provide information regarding those additional 
conditions. 
g. What is the amount/rate/percentage of ince ntive payment available for each applicant, 
with respect to LAMC and the method of determination of the same? If feasible, kindly 
provide the information as to what is the financial contribution made on this account by LADWP for the years 2010-11, 2011-12, 2012-13 and 2013-14, including the method of transfer (cash, cheque, bank transfer, credit on customers' bill, set-off etc.)? 
h. In its response vide document G/TRIMS/W/129/Rev.1, the United States has provided a 
link which requires a user to log-in in order to access any information. Since no log-in 
information has been supplied, it is not possible for India to access the information. The 
United States is requested to supply a log-in account, or an alternative means to access 
the information provided on the Website. 
C. California: Self-Generatio n Incentive Program / SGIP 
 
Initiated in 2001, the SGIP offers incentives to customers who produce electricity with wind turbines, fuel cells, various forms of combined heat and power and advanced energy storage. Originally set to expire at the end of 2011, SB 412  of 2009 amended the Public Utilities Code to 
allow incentives to be available through 1 January 2016. 
 The handbook for SGIP provides that: 
 
"3.1.1 Incentives for Technolo gies from a California Supplier 
An additional incentive of 20 % will be pr ovided for the installation of eligible 
distributed generation or Advanced Energy Storage technologies from a California 
Supplier. "California Supplier" means any sole proprietorship, partnership, joint 
venture, corporation, or other business entity that meets the following criteria: 
A) The owners or policymaking officers ar e domiciled in California and the permanent 
principal office, or place of business from which the supplier's trade is directed or 
managed, is located in California. 
Or 
B) A business or corporation, including those owned by, or under common control of, 
a corporation that meets all of the following criteria continuously during the five years prior to providing eligible distributed generation technologies to an SGIP recipient: 
i) Owns and operates a manufacturing facility located in California that builds or 
manufactures eligible distributed generation technologies. 
ii) Is licensed by the state to conduct business within the state. G/TRIMS/W/144 
 
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  iii) Employs California residents for work within the state. 
For purposes of qualifying as a California Supplier, a distribution or sales management 
office or facility does not qualify as a manufacturer." 
Question  4 
 
In light of the above, India would request the US  to provide the following information on this 
program: 
 
a. Is there an approved list of 'California Suppliers'? If yes, the same may kindly be 
provided. Which authority is responsible for approving status as 'California Supplier'? 
b. Is there a list of 'eligible distributed generation or Advanced Energy Storage 
technologies'? If yes, the same may kindly be provided. Which authority is responsible 
for maintaining or making changes to this list? 
c. What is the meaning of 'installation' in th e above guidelines? Does it mean that the 
various equipment or components of the el igible distributed generation or energy 
storage technologies should be manufactured or assembled by the approved supplier in California? Is it possible to source the physical systems components from out of 
California and still be eligible for this 20% additional incentive? If yes, under what 
conditions? 
d. In its response vide document G/TRIMS/W/129/Rev.1, the United States has stated that, 
"The California Public Utilities Commission (CPUC) oversees the Self-Generation 
Incentive Program (SGIP)". What is the legal status, constitution, composition and 
functions of the California Public Utilities Commission? What is the role of the California Public Utilities Commission in the formulation, approval, implementation, grant and 
allotment, etc. of the SGIP? 
e. In its response vide document G/TRIMS/W/129/Rev.1, the United States has stated that 
"The SGIP – with 627 completed projects for a total capacity of 299 megawatts - is one 
of the longest-running and most successful distributed generation incentive programs in 
the United States". The United States is requested to provide details of the budget outlay (specifically, for the past three financial years) for the program and the department of the California State that the same is allocated by. Further, kindly provide the information 
as to the method of transfer of the mentioned incentive (cash, cheque, bank transfer, 
credit on customers' bill, set-off etc.)? 
f. In its response vide document G/TRIMS/W/129/Rev.1, the United States has provided a 
link which is not available and leads to an Error Page. The United States is requested to 
supply a copy of the document mentioned in the aforementioned document. 
D. Texas Austin Energy: Commercial So lar PV Performance Based Incentive 
Program & Residential Solar PV Rebate Program. 
 D.1 Commercial Solar Photovoltaic Pe rformance-Based Incentive Program 
 
The United States in its reply has stated that: 
 
"A previously mentioned incentive for use of equipment manufactured or assembled in 
the Austin Energy service area has subseq uently been removed from the guidelines 
for qualification for the rebates." 
Further, the United States has also supplied the following link which is not available and leads to 
an Error page: 
 
https://www.austinenergy.com/E nergy%20Efficiency/Pro grams/Rebates/Sola r%20Rebates /solarRe
bateGuidelines.pdf 
 G/TRIMS/W/144 
 
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  Question 5  
 In light of the above, India would request the US to provide a copy of the document mentioned by 
the US in support of the Amendment to the program under D.1.  
 
D.2 Austin Energy Residentia l Solar PV Rebate Program 
 
Question 6  
 The US has stated that "A previously mentione d incentive for use of equipment manufactured or 
assembled in the Austin Energy service area has subsequently been removed from the guidelines 
for qualification for the rebates." in response to a question raised under D.1. Does the 
aforementioned amendment removing the incentive for ' use of equipment manufactured or 
assembled in the Austin Energy service area ' also apply to the program under D.2? 
 
Question 7  
If the amendment mentioned at question 1 does no t apply to D.2, the United States is requested 
to please provide supplemental information with regard to the following:  The Austin Energy Residential Solar PV Rebate Program Guidelines under the heading ' Rebate 
Funding ' states that: 
 
"The standard rebate level for qualifying equipment is $2.00 per Watt. In an effort to 
promote solar technologies and economic growth, qualifying equipment at least 60% 
manufactured or assembled in AE's electric service area may qualify for rebates at a 
level not to exceed $2.50 per watt. "Manufactured or Assembled" does not include 
installation of the system." (Emphasis added). 
Question 8 
 In light of the above, India would request the US  to provide the following information on this 
program: 
 
a. Whether the above mentioned rebate at a level not exceeding $2.50 per watt will be 
provided to the applicant in case the requirement indicated in the text underlined above 
is not fulfilled. 
b. Whether this incentive program is backed by some federal or state or local public law or 
by some mandate/guidelines of the electricity regulator. If yes, details of the same may 
kindly be provided. 
c. What is meant by 'qualifying equipment' ? What are the conditions that an 'equipment' 
has to fulfill to be recognized as 'qualifying equipment' ? Is there a list of 'qualifying 
equipment' ? If yes, the same may kindly be provided.  
d. Whether an entity is required to fulfill any additional condition apart from ' qualifying 
equipment at least 60% manufactured or assemb led in Austin Energy's electric service 
area' in order to avail the additional rebate under this provision. If yes, please provide 
information regarding these additional conditions. Under what circumstances can the granting authority deny applications for grant of additional rebate, despite fulfilling the 
laid down criteria?  
e. The United States is requested to provide information regarding budget allocation and 
disbursement by the Austin Energy towards, the residential Solar PV Rebate Program for the years 2010-11, 2011-12, 2012-13 and 2013-14, in particular with respect to the 
additional rebate up to $2.50 per watt. 
 
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