G/SCM/Q2/USA/59  
 
18 April 2013  
(13-2030)  Page: 1/5  
Committee on Subsidies and  
Countervailing Measures 
 Original: English  
 
SUBSIDIES 
QUESTIONS POSED BY INDIA TO THE UNITED ST ATES UNDER ARTICLE 25.8 OF THE AGREEMENT 
ON SUBSIDIES AND COUNTERVAILING MEASURES - STATE LEVEL RENEWABLE ENERGY  
SECTOR SUBSIDY PROGRAMMES WITH LOCAL CONTENT REQUIREMENTS 
The following communication, dated 15 April 2013, is being circulated at the request of the 
Delegation of India. 
 
_______________ 
 
 I. INTRODUCTION  
India would like to thank the United States for its subsidy notifications from time to time and in 
particular the notification G/SCM/N/220/USA, wh erein the United States notified a number of 
federal and  sub-federal subsidy programs. India notes that in addition to these programs, a 
number of states, local governments and authorities of the United States maintain subsidy 
programs to promote renewable energy. India is concerned that some of these subsidy schemes 
have provisions relating to local or domestic content requirements which raises issues of 
consistency with Article 3.2 read with Article 3.1 (b) of the ASCM. There are issues of consistency 
with TRIMs Agreement read with relevant provisions of GATT 1994 as well.   Question 1  
 
The United Sates is requested to provide details as to which of the state or regional or local level renewable energy programs  provide subsidies including incentives or additional incentives or 
rebates or credits, contingent upon compliance  of domestic content requirements such as 
equipment manufactured or principally manufactured in certain parts of the state or specific percentage of manufacturing or assembling to be done in a particular region or manufacturing to 
be done by companies having significant presence in a particular region or using domestic 
feedstock, etc.   Question 2 
 
Having made the general query above, India would request the United States to provide information as detailed  below with respect to the specific renewable energy sector subsidy 
programs of the four States in the United States namely the States of Delaware, Minnesota, 
Massachusetts and Connecticut. Specific questions follow after a brief description of the programs state-wise.  
 
Question 3  In addition to the specific questions, the United  States is requested to provide details regarding 
the current status of each of the programs, policy or implementing measure listed below in terms 
of its duration and/or any other time-limits attached to it.   G/SCM/Q2/USA/59 
 
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  II. Delaware: Solar Renewable Energy Credits 
 The Delaware Code, Title 26- Public Utilities, Ch.1.- Public Service Commission, Subchapter III-A - Renewable Energy Portfolio Standards (Renewable Energy Portfolio Standards Act), provides that: 
 
"§356. Multiple credits for specific energy sources 
…… 
(d) A Retail Electricity Supplier or a Rural Electric Cooperative shall receive an 
additional 10% credit toward meeting the RPS for solar or wind energy installations sited in Delaware, provided that a minimum of 50% of the cost of the renewable 
energy equipment, inclusive of mounting components, relates to Delaware 
manufactured equipment. " (emphasis provided) 
Question 1 
 
In view of the local content requirement (underlin ed above), the United States is requested to 
clarify as to how this provision is not in violation of Article 3.2 read with Article 3.1 (b) of the ASCM. The United States is also requested to info rm if the additional 10% credit will be provided 
to the applicant in case the requirement indicate d in the text underlined above is not fulfilled. 
 Question 2  
The United States is requested to clarify the meaning of the phrases ‘ a minimum of 50% of the 
cost of the renewable energy equipment, inclus ive of mounting components, relates to Delaware 
manufactured equipment’ and ‘derived  from eligible energy resources’  occurring in the definition of 
‘renewable energy credits’ under the Delaware Code, Title 26- Public Utilities, Ch.1. Public Service 
Commission, Subchapter III-A Renewable Energy Portfolio Standards.   
Question 3 
 The United States is also requested to explain whethe r an entity is required to fulfill any additional 
condition apart from 'a minimum of 50% of the cost of the renewable energy equipment, inclusive 
of mounting components, relates to Delaware manufactured equipment' , in order to avail the 
additional credit under Delaware Code, Title 26- Public Utilities, Ch.1. Public Service Commission, Subchapter III-A Renewable Energy Portfolio Standards §356 (d). If yes, the United States may 
please provide information regarding these additional conditions. Please also specify as to under 
what circumstances, can the granting authority deny applications for grant of additional credit, despite fulfilling the laid down criteria.  
 
III. Minnesota : Xcel Energy- Solar Rewards Program and MN Made PV Rebate Program 
 The Xcel Energy Solar Rewards Program enables customers to access the Minnesota Bonus PV 
Solar Rebate Program. The Minnesota Bonus PV Solar Rebate Program
1 under the heading 
‘Program Qualifications’  states that: 
 
“To qualify for the Minnesota Bonus incentive program, an applicant must: 
… Install qualified “Minnesota Bonus” PV modules  as defined by state statute.”   
(emphasis provided) 
Furthermore, the 2012 Minnesota Statutes, Chapter 116C, section 7791, subd. 3 states that: 
 
“Subd. 3. Rebate eligibility. (a) To be eligible for a rebate under this section, a solar photovoltaic module: 
must be manufactured in Minnesota;”  (emphasis provided) 
                                               
1 
"http://www.xcelenergy.com/Save_Money_&_Energy/For_Your_Home/Solar*Rewards/Bonus_PV_Solar_Rebate
_-_MN"  G/SCM/Q2/USA/59 
 
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  Question 1 
 In view of the local content requirements (under lined above), the United States is requested to 
clarify as to how these provisions are not in violat ion of Article 3.2 read with Article 3.1(b) of the 
ASCM. The United States is also requested to inform if the incentive under the Minnesota Bonus 
Program will be provided to the applicant in case the requirement indicated in the text underlined above are not fulfilled. 
 
Question 2  The United States is requested to confirm if the 2012 Minnesota Statutes, Chapter 116C, section 
7791 mandatorily requires utilities, such as the Xcel Energy to provide rebates to an owner of a 
qualified property for installing solar photovoltaic modules manufactured in Minnesota after 31 December 2009. The United States may please provide a list of such utilities mandated under 
the 2012 Minnesota Statutes, Chapter 116C, section 7791.  
 Question 3 
 
What is the role of the Minnesota Department of Commerce in the formulation, approval, implementation, enforcement, funding, etc. of the Xcel Energy- Solar Rewards Program and MN 
Made PV Rebate Program? Please provide relevant details. 
 
Question 4  
What are the conditions to be fulfilled by the applicant in order to avail the ‘ Minnesota Bonus’ ? The 
United States is also requested to inform whether an entity is required to fulfill any additional 
condition apart from installing " qualified ‘Minnesota Bonus’ PV modules as defined by state 
statute ", in order to avail the additional incentive. If yes, the United States may please provide 
information regarding these additional conditions. Please also inform as to which is the relevant ‘state statute’  referred above. The United States is also requested to specify as to under what 
circumstances, can the granting authority deny app lications for the grant of additional incentive, 
despite fulfilling the laid down criteria.  
 IV. Massachusetts: Commonwealth Solar II Photovoltaic Rebate Program 
 
The Program Manual of the Commonwealth Solar II Photovoltaic Rebate Program (Solicitation No. 2013 CSII-Version 13.0) provides the following additional rebate for both commercial as well 
as residential projects: 
 
"Massachusetts Company Components Adder  
To qualify for this adder, the System Owne r must provide evidence that the modules, 
the inverter(s), and any other significant component which is important to the 
electricity production of the project are manufactured by a company with a 
significant Massachusetts presence , as determined at the sole discretion of 
MassCEC."  (emphasis added) 
Question 1 
 
In view of the local content requirement (underlin ed above), the United States is requested to 
clarify how this provision is not in violation of Article 3.2 read with Article 3.1(b) of the ASCM. The United States is also requested to inform if th e Massachusetts Company Components Adder will be 
provided to the applicant in case the requiremen t indicated in the text underlined above is not 
fulfilled. 
 Question 2 
 
What are the conditions under which a component would be regarded as ‘ any other significant 
component which is important to the electricity production of the project ’, as used in the Program 
Manual of the Commonwealth Solar II Photovoltaic Rebate Program (Solicitation No. 2013 CSII-
Version 13.0). Please inform if there is a list of such components. If yes, the United States is requested to provide the same.  G/SCM/Q2/USA/59 
 
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  Question 3 
 What are the criteria used by MassCEC in determining whether the modules, the inverter(s), and any other significant component are "manufactured by company with a significant Massachusetts 
presence". The United States is also requested to clarify whether the place of manufacture of the 
modules, the inverter(s), and any other significant component is taken into consideration by the MassCEC in determining whether a company has a "significant Massachusetts presence"? 
 
Question 4  The United States is requested to provide details relating to the establishment, purpose, sources of 
funds and the administration of the Renewable Energy Trust Fund. What is the role of the 
Renewable Energy Trust Fund in the administration of Commonwealth Solar II Photovoltaic Rebate Program ? 
 
Question 5  
The United States is requested to provide details regarding the legal status, constitution, 
composition, purpose, functions and sources of funds of MassCEC?  V. Connecticut: S.109 Of The Public Act No.11-80 Read With The Residential Solar 
Investment Program 
 The Residential Solar Investment Program enables the eligible recipients to access an 
additional incentive provided in s.109 of the Public Act No.11-80, which states that: 
“Sec.109. The Public Utilities Regulatory Auth ority shall provide an additional incentive 
of up to five per cent of the then-applicable incentive provided pursuant to section 106 
of this act for the use of major system components manufactured or assembled 
in Connecticut , and another additional incentive of up to five per cent of the then 
applicable incentive provided pursuant  to section 106 of this act for the use of major 
system components  manufactured or assembled in a distressed municipality , 
as defined in section 32-9p of the general statutes, or a targeted investment 
community , as defined in section 32-222 of the general statutes.” (emphasis 
provided)  
Question 1 
 In view of the local content requirement (underlin ed above), the United States is requested to 
clarify how this provision is not in violation of Article 3.2 read with Article 3.1(b) of the ASCM. The 
United States is also requested to inform if the additional incentive will be provided to the applicant in case the requirement indicated in  the text underlined above are not fulfilled. 
 
Question 2 
 The United States is requested to clarify which components are considered as major system 
components. If there is a list of such components, the same may also be provided. The 
United States is also requested to specify the conditions under which such  major system components would be regarded as ‘major system components manufactured or assembled in 
Connecticut’ as used in s.109 of the Public Act No.11-80? Who makes this determination. What are 
the conditions under which a municipality would be regarded as a ‘ distressed municipality’ , and a 
community would be regarded as a ‘ targeted investment community’ , as used in s.109 of the 
Public Act No.11-80?  
 
Question 3  
The United States is requested to provide details regarding the legal status, constitution, 
composition, objectives, functions and sources of f unds of the Public Utilities Regulatory Authority 
and the Clean Energy Finance and Investment Authority. How does the Clean Energy Finance and 
Investment Authority relate to the Public Utilities Regulatory Authority and what are their 
respective roles in the formulation, administration and implementation of the Residential Solar Investment Program? G/SCM/Q2/USA/59 
 
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  Question 4 
 The United States is also requested to specify the conditions to be fulfilled by the applicant in order to avail the incentive of 5% over and above the incentive received under the Residential Solar 
Investment Program, for the use of major syst em components manufactured or assembled in 
Connecticut, as provided in s.109 of the Public Act No.11-80.  
Question 5 
 The website of the Clean Energy Finance and Investment Authority
2 states that in relation to the 
Residential Solar Investment Program:  
 
"…there is a 5% bonus for projects that use major system components principally 
manufactured in Connecticut.  An additional bonus is available if these components 
are principally manufactured in a Connecticut distressed municipality" (emphasis 
provided) 
The United States is requested to clarify if th e incentive stated above is different from that 
provided in s.109 of the Public Act No.11-80.  
 Question 6  
The United States may please specify the cr iteria for determining whether major systems 
components are " principally manufactured in Connecticut ". Please also provide information as to 
who makes this determination and how are these criteria different from the criteria used for 
determining " major system components manufactured or assembled in Connecticut " as used 
in s.109 of the Public Act No.11-80.  
__________  
                                               
2 
"http://www.ctcleanenergy.com/YourHome/ResidentialSolarInvestmentProgram/ResidentialSolarIncentives/tabi
d/617/Default.aspx"