United States
— Certain Measures Relating
to
the Renewable Energy Sector
report of the PANEL
TABLE OF
CONTENTS
1 Introduction.. 12
1.1
Complaint by India. 12
1.2
Panel establishment and composition. 12
1.3
Panel proceedings. 12
1.3.1
General 12
1.3.2
Preliminary ruling on the Panel's terms of reference. 13
2 Factual aspects. 14
2.1
Measure 1: Washington State additional incentive. 15
2.2
Measure 2: California Manufacturer Adder 18
2.3
Measure 4: Montana tax incentive. 19
2.4
Measure 5: Montana tax credit 20
2.5
Measure 6: Montana tax refund. 21
2.6
Measure 7: Connecticut additional incentive. 22
2.7
Measure 8: Michigan Equipment Multiplier / Michigan Labour Multiplier 24
2.8
Measure 9: Delaware Equipment Bonus / Delaware Workforce Bonus. 26
2.9
Measure 10: Minnesota production incentives and rebates. 27
2.9.1
Minnesota solar energy production incentive (SEPI) 27
2.9.2
Minnesota solar thermal rebate. 28
2.9.3
Minnesota solar photovoltaic (PV) rebate. 29
3 Parties' requests for findings and
recommendations. 30
4 Arguments of the parties. 30
5 Arguments of the third parties. 30
6 Interim review.. 30
7 Findings. 30
7.1
Measures amended or repealed following the establishment of the Panel 30
7.1.1
Measures amended following the establishment of the Panel 31
7.1.1.1
Overview of applicable principles. 32
7.1.1.2
Measure 1: Washington State additional incentive. 34
7.1.1.3
Measure 2: California Manufacturer Adder 36
7.1.1.4
Measure 8: Michigan Equipment Multiplier / Michigan Labour Multiplier 38
7.1.1.5
Conclusion on measures amended following panel establishment 39
7.1.2
Measures repealed following the establishment of the Panel 40
7.1.2.1
Overview of applicable principles. 40
7.1.2.2
Minnesota solar energy production incentive (SEPI) under Measure 10. 41
7.1.2.3
Minnesota solar thermal rebate under Measure 10. 42
7.1.2.4
Conclusion on measures repealed following the establishment of the Panel 43
7.2
Order of analysis. 44
7.3
India's claims under Article III:4 of the GATT 1994. 45
7.3.1
Introduction. 45
7.3.2
Products at issue and "likeness" 45
7.3.2.1
Measure 1: Washington State additional incentive. 46
7.3.2.2
Measure 2: California Manufacturer Adder 47
7.3.2.3
Measure 4: Montana tax incentive. 48
7.3.2.4
Measure 5: Montana tax credit 49
7.3.2.5
Measure 6: Montana tax refund. 50
7.3.2.6
Measure 7: Connecticut additional incentive. 50
7.3.2.7
Measure 8: Michigan Equipment Multiplier / Michigan Labour Multiplier 51
7.3.2.8
Measure 9: Delaware Equipment Bonus / Delaware Workforce Bonus. 52
7.3.2.9
Measure 10: Minnesota production incentives and rebates. 53
7.3.2.10
Conclusion on likeness. 54
7.3.3
"Laws, regulations and requirements affecting the[] internal sale,
offering for sale, purchase, transportation, distribution, or use" of
relevant products. 54
7.3.3.1
"Laws, regulations and requirements" 54
7.3.3.2
"Affecting the[] internal sale, offering for sale, purchase,
transportation, distribution or use" of relevant products. 56
7.3.3.2.1
Measure 1: Washington State additional incentive. 58
7.3.3.2.2
Measure 2: California Manufacturer Adder 59
7.3.3.2.3
Measure 4: Montana tax incentive. 60
7.3.3.2.4
Measure 5: Montana tax credit 62
7.3.3.2.5
Measure 6: Montana tax refund. 63
7.3.3.2.6
Measure 7: Connecticut additional incentive. 64
7.3.3.2.7
Measure 8: Michigan Equipment Multiplier / Michigan Labour Multiplier 67
7.3.3.2.8
Measure 9: Delaware Equipment Bonus / Delaware Workforce Bonus. 68
7.3.3.2.9
Measure 10: Minnesota production incentives and rebates. 71
7.3.3.3
Conclusion on "laws, regulations, and requirements affecting the[]
internal sale, offering for sale, purchase, transportation, distribution or
use" of relevant products. 72
7.3.4
Less favourable treatment 72
7.3.4.1
Measure 1: Washington State additional incentive. 74
7.3.4.2
Measure 2: California Manufacturer Adder 75
7.3.4.3
Measure 4: Montana tax incentive. 77
7.3.4.4
Measure 5: Montana tax credit 79
7.3.4.5
Measure 6: Montana tax refund. 81
7.3.4.6
Measure 7: Connecticut additional incentive. 83
7.3.4.7
Measure 8: Michigan Equipment Multiplier / Michigan Labour Multiplier 85
7.3.4.8
Measure 9: Delaware Equipment Bonus / Delaware Workforce Bonus. 88
7.3.4.9
Measure 10: Minnesota production incentives and rebates. 89
7.3.4.10
Conclusion on less favourable treatment 91
7.3.5
Conclusion on India's claims under Article III:4 of the GATT 1994. 91
7.4
India's claims under the TRIMs and SCM Agreements. 91
7.4.1
India's claims under the TRIMs Agreement 93
7.4.2
India's claims under the SCM Agreement 94
7.4.2.1
Articles 3.1(b) and 3.2 of the SCM Agreement 94
7.4.2.2
Article 25 of the SCM Agreement 97
7.5
India's claim under Article XXIII:1(a) of the GATT 1994. 98
8 Conclusions and recommendations. 98