Manufacturing and Services in the TPCC: Promoting the Competitiveness of the RE&EE Industry through Interagency Collaboration Ryan Mulholland Renewable Energy Trade Specialist U.S. Department of Commerce

International Trade Administration U.S. Department of Commerce Industry Expertise Subsector analysis Market research Advisory committees USG Coordination Market Access Country expertise Trade agreements Bilateral dialogues IPR protection Trade Promotion Export assistance Trade missions In-country expertise Firm–specific advocacy AD/CVD Anti-dumping duties Countervailing duties Protection against unfair trade practices Working with the International Trade Administration ITA is organized into four business units – each offering programs and services to U.S. companies involved in trade. The four business units include Manufacturing and Services; Market Access and Compliance, the U.S. Foreign and Commercial Service; and the Import Administration. TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce National Export Initiative (NEI) ITA is focused on achieving the goals of the President’s National Export Initiative to double total U.S. exports by The NEI has redoubled efforts to promote high-growth industries like renewable energy and to focus on small-and- medium-sized enterprises. The NEI is continuing to make historic progress toward achieving President Obama’s goal of doubling exports by The NEI is focused on five key principles: 1.Improving trade advocacy 2.Increasing access to credit 3.Removing trade barriers 4.Robustly enforcing trade rules 5.Pursuing policies that promote sustainable, balanced growth FACT #1: Most American businesses do NOT export their products or services. FACT #2: 95% of consumers live outside the United States. FACT #3: 87% of the world’s economic growth will occur outside the United States to FACT #4: Exports supported 9.7 million jobs in 2011, an increase of 1.2 million jobs since TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce Targeting a Fast-Growing Sector with Strategic National Importance International Trade Administration U.S. Department of Commerce Renewable energy costs more than traditional fossil fuels, but prices continue to decline. As a result, the industry is still reliant on government policy to be competitive. President Obama has challenged the U.S. Government to position the country as a leading exporter of clean energy technologies and has called for ending subsidies to fossil fuels. “The nation that leads the world in creating new energy sources will be the nation that leads the 21st-century global economy.” -- President Obama TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce Global Growth Remains Positive International Trade Administration U.S. Department of Commerce Bloomberg New Energy Finance predicts $7 trillion will be invested in renewable energy globally by Growth is expected in every subsector and offers the ability to support significant job creation in the United States. Global Wind Capacity (GW) Global Solar Capacity (GW) Global Geothermal Capacity (GW) Global Biofuels Capacity (Ktoe) Source: BP Statistical Review of World Energy June 2011 Global Biomass Capacity (GW) Global Hydropower Capacity (GW) 238 GW 70 GW 11.2 GW 970 GW 56,000 Ktoe 72 GW Global Capacity of Renewable Energy Technologies TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce The Global Renewable Energy Opportunity $36 bn $43bn $68bn $97bn $130bn $135bn $188bn $230 bn Global Private Sector Investment in Renewable Energy Source: Bloomberg New Energy Finance Global renewable energy investment has grown 30% annually since 2004, even during a strong recession. As economic growth continues to expand globally, further investment is likely. Much of the industry’s growth will occur outside of the United States. China to lead global investment While the United States attracted the most global investment in renewable energy in 2011, China should attract the most investment to 2015 and beyond. Most rapid growth to occur in developing world The Middle East, Africa and Latin America should see growth rates of 10-18% per year in the decade between 2010 and Off-shore wind to lead other technologies On a percentage basis, off-shore wind is expected to grow faster than any other renewable energy technologies globally. TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce The Global Renewable Energy Opportunity Source: Bloomberg New Energy Finance $395bn China to lead global investment While the United States attracted the most global investment in renewable energy in 2011, China should attract the most investment to 2015 and beyond. Most rapid growth to occur in developing world The Middle East, Africa and Latin America should see growth rates of 10-18% per year in the decade between 2010 and Off-shore wind to lead other technologies On a percentage basis, off-shore wind is expected to grow faster than any other renewable energy technologies globally. Global Private Sector Investment in Renewable Energy Global renewable energy investment has grown 30% annually since 2004, even during a strong recession. As economic growth continues to expand globally, further investment is likely. Much of the industry’s growth will occur outside of the United States. TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce Renewable Energy and Energy Efficiency Export Initiative (RE4I) The Renewable Energy and Energy Efficiency Export Initiative (RE4I) is a “principal component” of the larger National Export Initiative. Developed through the TPCC Working Group on Renewable Energy and Energy Efficiency, the initiative involves 8 separate agencies and includes 23 deliverables across four issues areas. Increased Financing for RE&EE Exporters ExIm Renewables Express OPIC energy efficiency debt product Budget support from USTDA Improved Trade Promotion to Link Buyers and Sellers Additional RE&EE reverse trade missions Increased RE&EE trade missions Green Embassies Program Strengthened Export Promotion Services RE&EE Advisory Committee Export.gov/reee RE&EE Exporters’ e-newsletter Enhanced Market Access for U.S. RE&EE Products and Services Trade Policy Staff Committee RE trade policy missions USTDA Capacity Building RE4I TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce MAS’ Contribution to the RE4I – Leadership and Action MAS leads the implementation of the interagency Renewable Energy and Energy Efficiency Export Initiative (RE4I) through the TPCC Working Group on RE&EE. In total, the RE4I includes 23 commitments from 8 separate U.S. Government agencies designed to significantly increase U.S. renewable energy and energy efficiency exports. RE&EE Top Prospects Study: MAS’ RE Top Prospects Study identifies those markets and technologies most likely to result in U.S. exports over the NEI time frame. RE&EE Advisory Committee: MAS manages the Secretary’s RE&EE Advisory Committee, which announced 22 recommendations in its first charter. RE&EE Trade Policy Missions: MAS organizes RE&EE trade policy missions to create future export markets through policy development. Information Resources: MAS manages export.gov/reee and a monthly e-newsletter on upcoming events, research, and trade leads. RE&EE Exporters Web Portal News, information, market research from across the U.S. Government specific to RE&EE exporters Monthly RE&EE Exporters’ Update Provides links to registration for upcoming events, as well as reports and market research on export opportunities abroad MAS’ Market Intelligence Briefs Country-specific renewable energy market reports with detailed information on market structure, as well as opportunities and challenges for U.S. exporters. TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce Renewable Energy Top Prospects Study Goals: Target trade promotion activities at those markets most likely to result in exports Provide a tool that TPCC agencies can use for all renewable energy technologies, or by subsector Provide an assessment tool for identifying markets on which to focus market access work Benefits: In a time of limited resources, allows U.S. Government to focus on most promising export markets Brings a methodological approach to export promotion Improves the effectiveness of U.S. Government efforts In the RE4I, ITA committed to developing a top market prospects study to aid in the targeting of trade promotion activities. The first edition of the prioritization has been presented to the Principals of the TPCC Working Group on RE&EE. ITA has begun work on the second edition of the study to be released in Spring TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce Combating Negative Short-Term Trends International Trade Administration U.S. Department of Commerce Persistent over-supply of renewable energy equipment globally and the reduction of policy support both in the United States and around the world has led to falling prices and increased competition between firms and between governments. Key Global Trends: Feed-in tariffs and fiscal issues in Europe causing incentives to be reduced Growing interest in deploying renewable energy as a job-creating technology Over 100 countries now have incentives, but many are tying incentives to domestic production requirements Price declines in wind and solar are significant Manufacturers are being squeezed by price declines, causing many firms to turn to governments for support. Many countries now act inconsistently with their trade obligations. Trade enforcement measures have therefore become an important facet of the industry’s near-term calculations. Key Domestic Trends: Exhaustion of Section 1603 Treasury Cash Grant Program Manufacturing Tax Credit (48c) no longer available No national level energy policy in foreseeable future Production Tax Credit set to expire (could severely limit wind industry) Natural gas limiting investment in renewables TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce Positioning U.S. Exporters for Success Requires Coordinated Government Action International Trade Administration U.S. Department of Commerce The short-term challenges faced by U.S. RE&EE exporters requires tight coordination across agencies and the nuanced understanding of how policy and promotion fit together to create opportunities for U.S. firms. Domestic Manufacturing Capacity Must ensure that the United States produces the technologies being bought and sold worldwide. Open and Growing Global Markets Markets must be kept open to U.S. products and, when possible, future markets should be seeded for growth with policy development. Competitive U.S-Based Exporters When markets are open, U.S. exporters must have the tools necessarily to be competitive in foreign markets. Three Pillars of a Globally Competitive U.S. RE&EE Industry Tax Credits (ex: 48c; 1603; PTC; ITC) State level incentive programs Renewable portfolio standards Net-metering/interconnection Manufacturing Extension Partnership Loan guarantees R&D programs Free trade agreements Bilateral dialogues Energy policy dialogues Trade policy missions Technical assistance Feasibility studies Market Access Program MDCP Program Export credit loans Working capital loans Political risk insurance Investment support Trade missions Reverse trade missions Websites/Trade leads Exporters’ guides Congress, State Governments, DOE, Treasury, Commerce (NIST), SBA USTR, Commerce (ITA), USTDA, USDA, State, DOE ExIm, OPIC, Commerce (ITA), USTDA, State, DOE, SBA What and Why? Examples of Interagency Tool Kit Key Agencies TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce Current RE Trade Promotion Process International Trade Administration U.S. Department of Commerce Unfortunately, when the competing goals of USG agencies collide, policy paralysis is too-often the result and U.S. exporters are not as empowered as they otherwise could be. Connect R&D to job creation in the United States Manage WTO challenges Negotiate TPP, APEC EGSA EnergyUSTR Stop LCR proliferation globally Address IPR violations Maintain positive foreign relations with key markets USTRState AD/CVD ruling against Chinese solar panels and wind towers Millions of dollars invested using Chinese panels ITAOPIC Desire to increase use of tied-aid war chest to aid RE&EE exports Maintain laissez-faire economic system globally ExImTreasury Policy Paralysis TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce TPCC Role in Promoting RE Export Competitiveness through Collaboration International Trade Administration U.S. Department of Commerce TPCC leadership can create a cross-government strategy centered on U.S. competitiveness. TPCC collaboration can bring disputes to resolution and can facilitate high-level engagement when necessary. Anchors R&D programs with domestic competitiveness goals Articulates global need to arrest global LCR trends Works with TPCC on strategy When AD/CVD case is finalized, alerts other agencies so others can adjust accordingly EnergyUSTR State ITAOPIC Works with DOE to craft policy that is defensible within WTO Helps develop strategy and delivers messages to local government officials Maintains development bent, but not at expense of trade rules TPCC Role: Bring parties together and push interagency process. Provide advice to both agencies, recognizing both importance of competitiveness and trade rules. TPCC Role: Develops strategy, working with all sides to gain approval for WTO action while being mindful of commercial consequences in other sectors. TPCC Role: Educate OPIC on AD/CVD ruling, informing future transactions. TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration

International Trade Administration U.S. Department of Commerce Thank You International Trade Administration U.S. Department of Commerce Ryan Mulholland Renewable Energy Trade Specialist U.S. Department of Commerce (202) TPCC Officer Training, September 25, 2012 Manufacturing and Services – International Trade Administration