UNITED STATES – CERTAIN MEASURES RELATED TO RENEWABLE ENERGY REQUEST FOR CONSULTATIONS BY CHINA
Document: REQUEST FOR CONSULTATIONS BY
Date: 16 August 2018
Document codes: WT/DS563/1; G/L/1258; G/TRIMS/D/43; G/SCM/D120/1
Complainant: China
Respondent: U.S.
Dispute stage: Consultation
Agreements cited: Art. III:4  GATT 1994Art. 2.1, 2.2  Trade-Related Investment Measures (TRIMs)Art. 3.1(b), 3.2  Subsidies and Countervailing Measures (SCM)

UNITED STATES – CERTAIN MEASURES RELATED TO RENEWABLE ENERGY
REQUEST FOR CONSULTATIONS BY CHINA
The following communication, dated 14 August 2018 , from the delegation of China to the
delegation of the United States , is circulated to the Dispute Settlement Body in accordance with
Article 4.4 of the DSU.

States of Ameri ca ( "US") pursuant to Article s 1 and 4 of the Understanding on Rules and
Procedures Governing the Settlement of Disputes ("DSU"), Article XXII of the General Agreement
on Tariffs and Trade 1994 ("GATT 1994"), Article 8 of the Agreement on Trade-Related Investment
Measures ("TRIMs Agreement") , and Articles 4 and 30 of the Agreement on Subsidies and
Countervailing Measures ("SCM Agreement"), with respect to certain measures adopted and
maintained by the governments of certain U.S. states and municipalities in relation to subsidies
and/or domestic content requirements in the energy sector.
2. This request identifies the measures at issue in Section I, and indicates the legal basis for
China's complaint in Section II.
I. MEASURES AT ISSUE
A. The Renewable Energy Cost Recovery Incentive Payment Program ("RECIP")
of the State of Washington
3. The RECIP is maintained under the legal authority of the Revised Code of Washington ( "RCW")
Chapters 82.16.110 through 82.16.180 . The RECIP is further implemented through Washington
Administrative Code ("WAC") Section 458-20-273.
4. Under Chapter 82.16.120 of the RCW, qualifying customers of light and power businesses are
provided by their light and power business with investment cost recovery incentives for generating
electricity from a customer -generated electricity renewable energy system. Similarly, Chapter
82.16.165 of the RCW authorizes qualifying customers to receive from relevant utilities an annual
production incentive for each kilowatt -hour of electricity generated by a r enewable energy
system.
5. As specified in Chapter 82.16.120 and 82.16.165 of the RCW, the incentive rate increases in
certain cases where the renewable energy system uses specified parts manufactured in the State
of Washington. The incentive payment rate is then multiplied by the system's gross kilowatt-hours
generated to determine the incentive payment. The light and power businesses and utilities that
have provided incentive payments to qualifying customers are allowed a tax credit for the
incentive payments made and various related fees, subject to certain specified limits.
B. The Self-Generation Incentive Program ("SGIP") of the State of California
6. The SGIP is maintained under the authority of Sections 360 - 380 of the California Public
Utilities Code and the authority vested in the California Public Utilities Commission ("CPUC") by
Article XII of the California Constitution and the California Public Utilities Code. The SGIP is further
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implemented through the 2017 SGIP Handbook and a series of CPUC Decisions, including but not
limited to CPUC Decision 17-04-017.
7. The SGIP provides financial incentives to users that install r enewable energy distributed
generation technologies that are installed to meet all or a portion of the electric energy needs of a
facility. Pursuant to Section 379.6 of the Public Utilities Code, i n administering the SGIP, an
additional incentive is provid ed for the installation of eligible distributed generation resources
manufactured in California.
C. The Solar Photovoltaic Incentive Program ("SIP") implemented by the Los
Angeles Department of Water and Power ("LADWP")
8. The SIP is a performance-based incen tive program maintained by the LADWP under the
mandate of the California Solar Initiative established in California Public Utilities Code Section
2854. The SIP is administered through program guidelines issued by LADWP.1
9. Under the SIP, the LADWP provides one-time incentives to its customers who purchase/lease
and install solar photovoltaic systems. A n additional incentive payment is provided to qualifying
and approved photovoltaic equipment manufactured in the City of Los Angeles , termed as the Los
Angeles Manufacturing Credit ("LAMC") pursuant to Section 8.1 of the LADWP guidelines.
D. The Renewable Energy Credits ("REC") requirements of the State of Michigan
10. The REC requirements are prescribed in the Clean and Renewable Energy and Energy Waste
Reduction Act ("CREEWRA") of the State of Michigan as codified in Chapter 460 of Public Utilities of
the Michigan Compiled Laws ("MCL"), and are implemented through orders of the Michigan Public
Service Commission (“MPSC”). Renewable energy credits are collected, issued, and tracked by the
Michigan Renewable energy Certification System, as provided in the Michigan Renewable Energy
Certification System Operating Procedures.
11. Section 1039 of Chapter 460 of the MCL provides that one renewable energy credit shall be
granted to an owner of a renewable energy system for each megawatt hour of electricity
generated from the renewable energy system, subject to certain conditions. Section 1028 of
Chapter 460 of the MCL requires Michigan electric providers to achieve a rene wable energy credit
portfolio that consists of a proportion of renewable energy credits that increases over time and
reaches 15% by 2021 . Michigan electric providers may meet this standard by generating
electricity from renewable energy systems or through the purchase of renewable energy credits.
12. Pursuant to Section 1039 of Chapter 460 of the MCL, a dditional RECs known as "Michigan
incentive renewable energy credits" are granted for electricity generated from a renewable energy
system constructed using equipment made in the State of Michigan as determined by the Michigan
Public Service Commission ("MPSC").
E. The Experimental Advanced Renewable Program ("EARP") proposed by
Consumers Energy Company and approved by the Michigan Public Service
Commission ("MPSC")
13. The EARP is administered by Consumers Energy, Michigan’s largest utility provider pursuant to
Section 460 of the CREEWRA identified in Part D above, as found in Chapter 460 of the MCL. The
EARP was approved by the MPSC in its order in Case No. U -15805. Expansion s and/or
modifications of the EARP have been approved by subsequent orders issued by the MPSC .2 The
EARP is further incorporated in Section C10.3 of the Rate Book for Electric Service ("Rate Book") of
Consumers Energy, versions of which have been approved by the MPSC in cases including but not
limited to Case No. U-15805, U-16543, U-16581, U-17301, and U-17709.

1 For example, see the Net Energy Metering and Solar Photovoltaic Incentive Program Guidelines dated
4 December 2015.
2 The MPSC’s approval of Consumers Energy’s renewable energy plans establishing and expanding EARP
occurred when CREEWRA’s predecessor statute, the Clean, Renewable and Efficient Energy Act ("CREEA") was
still in force. Pursuant to Section 460.1022 of CREEWRA, all renewable energy plans approved under CREEA
and in force on the date CREEWRA came into effect (20 April 2017) remain in effect, subject to review and
amendment within one year of the effective date of CREEWRA.
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14. Under Section C10.3 of the Rate Book, a customer participating in the EARP is required to
install and operate an eligible photovoltaic solar electricity generating system constructed using
Michigan workforce labor or using equipment made in the State of Michigan . The customer must
transmit all energy generated by eligible renewable energy equipment to Consumers Energy,
which shall own and use RECs created therefrom. In return, Consumers Energy offers a fixed rate
for electricity transmitted from the customer. In addition, customers providing electricity with a
generating system constructed after October 1, 2011 that qualif ies for both the Michigan Labor
and Michigan Material requirements shall be awarded an extra incentive.
15. In addition to measures identified in sub -sections A through E above, t his request for
consultations also concerns any amendments, or related, successor, replacement, or implementing
measures, as well as any closely connected, subsequent measures of the above mentioned
programs providing subsidies and/or prescribing domestic content requirements in the energy
sector.
II. LEGAL BASIS OF THE COMPLAINT
16. China considers that each of the measures at issue is inconsistent with the following
provisions of the WTO covered agreements:
 Article III:4 of GATT 1994 , because the measures at issue appear to embody laws,
regulations and /or requirements affecting the internal sale, off ering for sale, purchase,
transportation, distribution or use of products which provide less favourable treatment to
products imported into the U.S. than that accorded to like products originating in the U.S.;
 Article 2.1 of the TRIMs Agreement , because the measures at issue appear to be
investment measures related to trade in goods that are inconsistent with Article III:4 of
GATT 1994;
 Article 2. 2 of the TRIMs Agreement , because the measures at issue appear to be
investment measures related to t rade in goods which are mandatory or enforceable under
domestic law or under administrative rulings, and/or compliance with which is necessary
to obtain an advantage, and which require the purchase or use by an enterprise of
products of U.S. origin, as pro vided for in paragraph 1(a) of the Annex to the TRIMs
Agreement;
 Articles 3.1(b) and 3.2 of the SCM Agreement because they appear to grant and maintain
subsidies contingent upon the use of domestic over imported goods.
17. As a result of the foregoing, the mea sures at issue appear to nullify or impair the benefits
accruing to China directly or indirectly under the above-mentioned WTO covered agreements.
18. In accordance with Article 4.2 of the SCM Agreement, China attaches to this request a list of
evidence related to the measures at issue and presently available to China. China reserves its
right to raise additional factual matters and/or legal claims during the course of the consultations
and in any future request for panel proceedings.
19. China looks forward to receiving a reply to the present request from the U.S. and to setting a
mutually acceptable date and venue for consultations.

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Statement of Available Evidence

A. The Renewable Energy Cost Recovery Incentive Payment Program ("RECIP") of the
State of Washington
1. Wash. Rev. Code §§ 82.16.110-180
2. Engrossed Substitute Senate Bill 5939, State of Washington, 65th Legislature (2017).
3. Wash. Admin. Code, § 458-20-273
4. Revised Code of Washington, Energy Independence Act, Chapter 19-285 RCW (2007).
5. Washington Administrative Code, Energy Independence, Chapter 194-37 WAC (2008).
6. Washington Administrative Code , Manufacturing, Processing for hire, fabricating, WAC 458 -20-
136 (2005).
7. Washington State Register , Emergency Rules, Rule Ma king Order – Department of Revenue,
WSR 12-16-046 (July 27, 2012).
8. Substitute Senate Bill 5101, State of Washington, 59th Legislature (2005).
9. Engrossed Substitute Senate Bill 6170, State of Washington, 61st Legislature (2009).
10. Engrossed Substitute Senate Bill 6658, State of Washington, 61st Legislature (2010).
11. Senate Bill 5526, State of Washington, 62nd Legislature (2011).
12. Engrossed Senate Bill 5128, State of Washington, 65th Legislature (2017).
13. Engrossed Second Substitute House Bill 1301, Amending RCW 82.16.110, RCW 82.16.120,
RCW 82.16.130 (2013).
14. Washington State Department of Revenue, Renewable Energy System Cost Recovery - Annual
Incentive Payment Application, REV 41 0100e (2011).
15. Washington State Department of Revenue, Community Solar Project Renewable Energy
System Cost Recovery- Annual Incentive Payment Application, REV 41 0111e (2015).
16. Washington State Department of Revenue, Renewable Energy System Cost Recovery
Certification, 82.16 RCW, REV 41 0094 (2015).
17. Washi ngton State Department of Revenue, Community Solar Projects Renewable Energy
System Cost Recovery Certification, REV 41 0110 (2015).
18. Washington State Department of Revenue, Special Notice, Solar Stirling Converter
Manufactured in Washington Added to Re newable Energy Cost Recovery Incentive Payment
Program (August 30, 2011).
19. Washington State Department of Revenue, Growth from Renewable Energy Cost Recovery
Program (October, 2016).
20. Washington State Department of Revenue, Evaluation of Tax Incentives- Analysis of
Renewable Energy System Program: Report to the Legislature (December, 2009).
21. Washington State Department of Revenue, Special Notice -Renewable Energy Cost Recovery
Incentive Program-Modifications to Program (May, 2010).
22. Washington State Department of Revenue, Washington Manufacturers Equipment Approved for
"Made in Washington" Renewable Energy Systems Cost Recovery Incentive Payments (September
28, 2016).
23. U.S. Department of Energy, Office of Scientific and Technical Inform ation, 201 1 Wind
Technologies Market Report, DOE/GO-102012-3472 (August, 2012).
24. Shoreline Community College Office of the President, Notice of Intent addressed to
Superintendent, Seattle City Light (August 12, 2009).
25. Mason County PUD No. 1, In-State Production Incentives for Renewable Energy Development
Program Overview, State Doc #1 (December, 2013).
26. American Council on Renewable Energy, Renewable Energy in Washington (September, 2014).
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27. Washington State Department of Revenue, Summary of 2009 Tax Legislations (May, 2009).
28. U.S. Energy Information Administration, State of Washington Electricity Profile (2014).
29. U.S. Energy Information Administration, State of Washington Electricity Profile (2017).
30. U.S. Energy Information Administration, State of Washington Energy Profile (2015).
31. U.S. Energy Information Administration, State of Washington Energy Profile (2016).
32. U.S. Energy Information Administration, State of Washington Renewable Electricity Profile
(2012).
33. Clark Public Utilities, Steps for Participation in Washington State's Renewable Energy
Production Incentive Program Production Metering Agreement.
34. Washington State Department of Revenue, Special Notice, Renewable Energy System Cost
Recovery Program – Production Incentive (September 23, 2009).
B. The Self-Generation Incentive Program ("SGIP") of the State of California
1. State of California Public Utilities Code, Division I, Part I, Chapter 2.3, Article 6.
2. California Constitution, Article XII Public Utilities.
3. California Assembly Bill no. 970 , an Act to amend , inter alia, Section 372 of the Public Utilities
Code (September 7, 2000).
4. California Assembly Bill no. 2267, an Act to amend , inter alia , Section 37 9.6 of the Public
Utilities Code (September 28, 2008).
5. Senate Bill no. 412 , an Act to amend , inter alia , Section 379.6 of the Public Utilities Code,
relating to electricity, Chapter 182 (October 11, 2009).
6. Senate Bill no. 861 , an Act to amend , inter alia , Sections 379.6 of the Public Utilities Code
(June 20, 2014).
7. California Assembly Bill no. 1478 , an Act to amend, inter alia , Section 379.6 of the Public
Utilities Code (September 27, 2014).
8. California Assembly Bill no. 1637 , an Act to amend, inter alia , Section 379.6 of the Public
Utilities Code (September 26, 2016).
9. California Public Utilities Commission Decision 01-03-073, Interim Opinion: Implementation of
Public Utilities Code Section 399.15(b), Paragraphs 4 -7; Load Control and Distributed Generation
Initiatives (March 27, 2001).
10. California Public Utility C ommission Decision 08 -11-044, Decision Addressing Eligible
Technologies under the Self -generation Incentive Program (SGIP) and modifying the process for
evaluating SGIP Program change requests Decision on Advanced Storage Technologies (November
21, 2008).
11. California Public Utility Commission Decision 11 -09-015, Decision Modifying the Self -
Generation Incentive Program and Implementing Senate Bill 412 (September 8, 2011).
12. California Public Utility Commission Decision 11 -12-030, Decision Adopting SGIP Annual
Budget for 2012, 2013 and 2014 (December 15, 2011).
13. California Public Utilities Commission Decision 14-12-033, Decision Authorizing Pacific Gas and
Electric Company, Southern California Edison Company, San Diego Gas & Edison Company, San
Diego Gas & Electric Company, and Southern California Gas Company to Continue to Collect Funds
for the Self Generation Incentive Program Pursuant to Public Utilities Code Section 379.6 as
Amended by Senate Bill 861 (December 8, 2014).
14. California Public Utilities Com mission Decision 15 -12-027, Decision Partially Suspending
Disbursement Of 2016 Program Year Funds and Acceptance of New Applications for the Self -
Generation Incentive Program (December 17, 2015).
15. California Public Utilities Commission Decision 16 -06-055, Decision Revising the Self -
Generation Incentive Program Pursuant to Senate Bill 861, Assembly Bill 1478, and Implementing
Other Changes (June 23, 2016).
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16. California Public Utilities Commission Resolution E -4824, Adoption of revised Self -Generation
Incentive Program Rules pursuant to Decision (D.) 16-06-055 (February 9, 2017)
17. California Public Utility Commission Decision 17-04-017, Decision Revising the Self-Generation
Incentive Program Pursuant to Assembly Bill 1637 and Granting the Petition for Energy Indust ry
Association (April 6, 2017).
18. Advice Letter of Southern California Edison Company, Pacific Gas and Electric Company,
Southern California Gas Company, and Center for Sustainable Development, Revisions to the Self-
Generation Incentive Program Handbook Pursuant to Resolution E-4824 (February 23, 2017)
19. Advice Letter of Southern California Edison Company, Pacific Gas and Electric Company,
Southern California Gas Company, and Center for Sustainable Development, Revisions to the Self-
Generation Incentive Progra m Handbook Pursuant to D.17 -04-017 Implementing Assembly Bill
1637 and Granting the Petition for Modification of D.16 -06-055 by the California Solar Energy
Industries Association (May 17, 2017)
20. California Public Utility Commission Resolution E -4887, Adoption of revised Self -Generation
Incentive Program developer definition pursuant to Decision (D.) 16 -06-055 and other revisions to
the SGIP Handbook (October 12, 2017)
21. California Public Utility Commission Decision 17 -10-004, Decision Establishing Equity Budget
for Self-Generation Incentive Program (October 13, 2017).
22. Self-Generation Incentive Program Handbook, 2016 (February 8, 2016).
23. Self-Generation Incentive Program Handbook, 2017 (February 23, 2017).
24. California Public Utilities Commission official webs ite, 2016 Incentive Rates by Eligible
Technologies under SGIP.
25. California Public Utilities Commission, Request for California Supplier status under SGIP Form.
26. California Public Utilities Commission, California Manufacturer Application Form.
27. California Public Utilities Commission, List of SGIP approved California Suppliers (2016).
28. Application Forms available on the website of Pacific Gas and Electric Company, V.2 (2015).
29. Application Forms available on the website of Southern California Gas Company, SGIP
Incentive Claim Form, V. 3 (2015).
30. Application Forms available on the website of Centre for Sustainable Energy California, SGIP
Incentive Claim Form, V. 3 (2015).
31. Application Forms available on the website of South California Edison, SGIP Incentive Claim
Form, V.3 (2015).
32. California Public Utilities Commission, Self-Generation Incentive Program Modification
Guideline (PMG) (July 1, 2006).
33. California Public Utilities Commission, 2012 SGIP Impact Evaluation Program Outlook
(February, 2014).
34. California Public Utilities Commission official website, History & Organizational Structure.
35. Itron, Final Report: 2014-2015 SGIP Impact Evaluation (November 4, 2016).
36. American Council on Renewable Energy, Renewable Energy in California (September, 2014).
37. U.S. Energy Information Administration, California State Electricity Profile (2015).
38. U.S. Energy Information Administration, California State Electricity Profile (2017).
39. U.S. Energy Information Administration, California Renewable Electricity Profile (March,
2012).
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C. Solar Photovoltaic Incentive Program ("SIP") implemented by the Los Angeles
Department of Water and Power ("LADWP")
1. Senate Bill 1, Chapter 132- Electricity: Solar Energy: Net Metering (Approved 2006 and codified
in California Public Resources Code , Sections 25780 -25783 and California Public Utilities Code ,
Sections 2851-2854).
2. California Assembly Bill no. 2227 , an Act to amend and renumber, inter alia, Section 2854 of
California Public Utilities Code (September 27, 2012).
3. Los An geles Department of Water and Power, the Net Energy Metering and Solar Photovoltaic
Incentive Program Guidelines (December 4, 2015).
4. Los Angeles Department of Water and Power, Solar Photovoltaic Incentive Program Guidelines
(January 1, 2017).
5. California Energy Commission, Guidelines for California's Solar Electric Incentive Programs, Fifth
Edition (January, 2013).
6. Los Angeles Department of Water and Power - Solar Incentive Program Info, energy.gov.
7. Los Angeles Department of Water and Power, Members of the Board of Water and Power
Commissioners.
8. Los Angeles Department of Water and Power, Rules of the Board of Water and Power
Commissioners.
9. Los Angeles Department of Water and Power, Customer Guide to using Powerclerk (December
4, 2015).
10. Los Angeles Department of Water and Power, LADWP Solar Incentive Program Calculator User
Guide (October, 2011).
11. Los Angeles Department of Water and Power, PV Preliminary Review Information Sheet ,
LADWP – PR (02-2013).
12. Los Angeles Department of W ater and Power, Solar Inspection Agreement, LADWP – SA (09-
2012).
13. Los Angeles Department of Water and Power, Residential Disclosure Agreement, LADWP – RD
(09-2012) and a Non-Residential Disclosure Agreement, LADWP – ND (09-2012).
14. Los Angeles Depart ment of Water and Power, Request to Forward Reservation Payment ,
LADWP – PF (04-2016).
15. Los Angeles Department of Water and Power, Powerclerk User Account Request Form , LADWP
– (07-2013).
16. Los Angeles Department of Water and Power, Solar Incentive Program Report (April 2015).
17. California Public Utilities Commission Decision 06 -01-024, Interim Order Adopting Policies and
Funding for the California Solar Initiative (January 12, 2006)
D. The Renewable Energy Credits (“REC”) requirements of the State of Michigan
1. Clean and Renewable Energy and Energy Waste Reduction Act, Mich. Comp. Laws §§460.1001-
460.1099 (2017).
2. Mich. Comp. Laws § 460.1191 (2009).
3. Senate Bill 438, State of Michigan, the 98th Legislature (December 21, 2016)
4. Michigan Renewable Energy Certification System Operating Procedures.
5. Michigan Public Service Commission, Temporary Order in Case No. U -15800 (December 4,
2008).
6. Michigan Public Service Commission, Notice of Hearing Regarding the Promulgation of
Administrative Rules Governing Renewable Energy Plans and Energy Optimization Plans Case No.
U-15900 (April 27, 2010).
7. Michigan Public Service Commission, Order in Case No. U-15900 (April 27, 2010)
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E. The Experimental Advanced Renewable Program ("EARP") proposed by Co nsumers
Energy Company and approved by the Michigan Public Service Commission ("MPSC")
1. M.P.S.C. No. 13 – Electric, Consumers Energy Company, Rate Book for Electric Service.
2. Michigan Public Service Commission, Order in Case No. U-15805, U-15889, May 26, 2009.
3. Michigan Public Service Commission, Order in Case No. U-16543, May 10, 2011.
4. Michigan Public Service Commission, Order in Case No. U-16543, May 26, 2011.
5. Michigan Public Service Commission, Order in Case No. U-16543, July 26, 2011.
6. Michigan Public Service Commission, Order in Case No. U-16581, May 1, 2012.
7. Michigan Public Service Commission, Order in Case No. U-17301, June 19, 2014.
8. Michigan Public Service Commission, Order in Case No. U-17709, November 6, 2014.
9. Michigan Public Service Commission, Order in Case No. U-17301, February, 2015.
10. Michigan Public Service Commission, Order in Case No. U-17752, May 14, 2015.
11. Michigan Public Service Commission, Order in Case No. U-17771, December 22, 2015.
12. Michigan Public Service Commission, Order in Case No. U-17792, March 29, 2016.
13. Consumers Energy – Experimental Advanced Renewable Program Info, energy.gov.
14. Consumers Energy, Corporate Overview.
15. Consumers Energy, Experimental Advanced Renewable Program Brochure.
16. Consumers Energy, Common questions concerning the Experimental Advanced Renewable
Program.
17. Consumers Energy, Experimental Advanced Renewable Program Non -Residential Application
and Instructions.
18. Consumers Energy, Experimental Advanced Renewable Program Residential Application and
Instructions.