G/SCM/Q2/USA/71  
 
24 April 2017 
(17-2233) Page: 1/4 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
REPLIES TO QUESTIO NS1 FROM THE SEPARATE CUSTOMS TERRITORY OF  
TAIWAN , PENGHU , KINMEN AND  MATSU  REGARDING  THE NEW AND  
FULL NOTIFICATION  OF THE UNITED STATES2 
The following communication, dated 24 April 2017, is being circulated at the request of th e 
Delegation of  the United States . 
 
_______________  
 
 
Energy Supply – Renewable Energy Resources (p.  14) 
 
Question 1  
 
What is the definition of "various competitive procedures"? Could the United States 
please also provide more detailed information on the p rocedures themselves?  
 
Question 2  
 
What constitutes "eligibility" for private parties?  
 
Reply  
It is the policy of the Department of Energy (DOE) to use competition in the award of grants and 
cooperative agreements to the maximum extent feasible. This polic y conforms with the legal 
requirements of 31 USC 6301(3) which encourages the use of competition in awarding all grants 
and cooperative agreements. "Contracting Officers " must use merit -based, competitive procedures 
to award grants and cooperative agreemen ts to the maximum extent feasible.  More specifically, it 
is DOE policy that all discretionary financial assistance, competitive or noncompetitive, be awarded 
through a merit -based selection process. Merit review means a thorough, consistent, and objective 
examination of applications based on pre -established criteria by persons independent of those 
submitting the applications and knowledgeable in the field of endeavor for which support is 
requested. Each "Program Office " conducting reviews must ensure (1) th eir merit review 
implementation policies require an objective merit review of noncompetitive as well as competitive 
applications, and (2) the policy is implemented for all discretionary financial assistance activities 
under their cognizance whether conduct ed in headquarters or at a field activity.  Eligibility is based 
on the pre -established criteria for all applicants for each individual award.  For further information 
please see the DOE "Guide to Financial Assistance " which can be found at: 
https://energy.gov/sites/prod/files/GuidetoFinancialAssistance.pdf . 
 
                                                
1 G/SCM/Q2/USA/68.  
2 G/SCM/N/2 84/USA.  G/SCM/Q2/USA/71  
 
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  Fossil Energy Research and Development (p.  20) 
 
Question 3  
 
Could the United States please provide further information and/or a more detailed 
description of cost -shared contracts (CRADAs), in particular the proportion of costs 
shared by each party?  
Reply  
 
A Cooperative Research and Development Agreement, or CRADA, has a specific meaning as a 
result of legislation and regul ations developed to implement a variety of U.S. technology 
promotion and commercialization programs.  Generally, however, a CRADA is a negotiated, 
contractual agreement between a federal agency or agency laboratory and a private sector partner 
or partners ( including universities and independent research institutions) in which the parties 
agree on the designation of personnel, facilities, equipment and other resources to a collaborative 
R&D activity, as well as to the disposition of any intellectual property which the R&D yields.  
Because CRADAs are negotiated, contractual agreements, each is relatively unique  as to the 
proportion of costs effectively shared by each party. (See, for example, 
https://energy.gov/sites/prod/files/gcprod/documents/m4831 -1.pdf.) 
 
Question 4  
 
Could the United States please provide details of the amounts of annual appropriations 
made by the Congress to the programme over the last three years, and/or some t rend 
analysis of the appropriations over the longer term?  
 
Reply  
 
The total budget for the Fossil Energy Research and Development program was as follows: $585.1 
million, FY 2011; $533.7 million, FY 2012; $498.7 million, FY 2013; and $570.4 million, FY  2014. 
 
Sea Grant (p.  34) 
 
Question 5  
 
Is the subsidy programme still in operation or has it been terminated?  
 
Reply 
 
Yes, the programme is still in operation.  The programme is a federal -state partnership that 
provides funding to universities to address divers e issues related to ocean, coastal & Great Lakes 
science, as defined by four National Focus Areas (Healthy Coastal Ecosystems, Resilient 
Communities and Economies, Sustainable Fisheries and Aquaculture, and Environmental Literacy 
and Workforce Development) . The Federal partner is the National Oceanic & Atmospheric 
Administration, and addresses scientific issues via research, extension, and outreach through our 
34 university -based programs.   
 
The program does not provide direct subsidies to commercial fisher ies (or any other industry). 
Work on commercial fisheries occurs primarily through the Sustainable Fisheries and Aquaculture 
focus area, which also covers recreational fisheries, subsistence fisheries, and aquaculture. As part 
of the grant process, funding  is occasionally awarded to researchers directly associated with the 
commercial fishing industry through fair and open competitions.  
 
Question 6  
 
What is the definition of 'commercial fisheries' in this programme?  
 
Reply  
 
In Sea Grant, "commercial fisherie s" are those in which wild fish and other seafood are caught for 
commercial profit.  It is related to, but not identical to, recreational fisheries (where fish & seafood G/SCM/Q2/USA/71  
 
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  are caught for sport and personal consumption), subsistence fisheries (where seafood is  obtained 
for direct consumption), and aquaculture (where seafood is cultivated for direct consumption or 
commercial profit).  
 
Question 7  
 
What is the scope of 'commercial fisheries' in this programme?  
 
Reply  
Specific projects funded since 2013 are in the areas of ecosystem -based fisheries, management, 
improving fishing industry business practices, understanding fisheries social and economic 
impacts, reducing bycatch and enhancing wild stocks through aquaculture.  The funding devoted to 
commercial fisheries by the National Sea Grant College Program was $5.4 million in  2014, and 5.6 
Million in 2015.  2016 actuals are not yet available but are expected to be similar.  
New Markets Tax Credit  (p. 47) 
 
Question 8  
 
Is a Community Development Entity (CDE) a public or  a private enterprise? Is there an 
upper limit to the size of public or private shareholding in a CDE?  
 
Reply  
 
A CDE is a private entity, though it can be established by a local government.  The equity investors 
in the CDE that ultimately receive the New Ma rkets Tax Credit must be private taxpayers.  
 
Question 9  
 
Is there an exit mechanism by which the government can terminate its participation in 
the CDE programme?  
Reply  
A Community Development Entity (CDE) is a domestic firm that is an intermediary vehicle for the 
provision of loans, investments, or financial counselling in low -income communities.  To become a 
CDE, a firm must have a primary mission of serving low -income communities, maintain 
accountability to residents of low -income communities, and be certi fied by the U.S. Department of 
the Treasury.  For each authorization round, CDEs apply for an allocation of credit and the U.S. 
Department of the Treasury chooses which CDEs receive an allocation and the allocation amount.  
The credit amount flowing to inves tors can be recaptured if rules for the credit are not followed, 
such as an entity losing its status as a CDE.  
Commercial Fishing Revolving Loan Fund (Alaska/p.  56) 
Fisheries Enhancement Revolving Loan Fund (Alaska/p.  57) 
 
Question 10  
 
Will these programm es affect in any way the risks of over -fishing or overcapacity?  
 
Reply  
 
Alaska 's Office of Fisheries Development oversees a number of functions related to the economic 
development of Alaska 's commercial fishing and seafood industry. Working in conjunction with 
industry, state, federal, and local agencies, this office serves as a catalyst for fisheries related 
economic development projects in Alaska to ensure economic benefits with sustainability 
principles. These programs do not risk of over -fishing or over capacity.  
 G/SCM/Q2/USA/71  
 
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  Gasoline & Special Fuel Taxes for Commercial Fisherman (Louisiana/ p.  156) 
 
Question 11  
 
What was the total amount of tax credit granted by this programme over the period 
2013 to 2015?  
 
Reply  
 
In 2016, the year for which data is readily availab le, the total cost of this program was $23,374.  
 
Fishing Boat Fuel (Washington/p.  288) 
 
Question 12  
 
What was the total amount of tax exemption granted by this programme over the period 
2013 to 2015?  
 
Reply  
 
According to a recent study by the State of Was hington, for 2016, the estimated cost of this 
program was $2.769 million.  
 
 
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