[Federal Register Volume 77, Number 202 (Thursday, October 18, 2012)]
[Notices]
[Pages 64106-64108]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25647]


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DEPARTMENT OF COMMERCE

International Trade Administration


Renewable Energy and Energy Efficiency Trade Policy Mission to 
Chile

AGENCY: International Trade Administration, Commerce.

ACTION: Notice.

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    Mission Description:
    The U.S. Department of Commerce's International Trade 
Administration (ITA) is organizing a Renewable Energy and Energy 
Efficiency (RE&EE) Trade Policy Mission to Santiago, Chile from April 
15-16, 2013. The mission is designed to be led by a senior Department 
of Commerce official, and will focus on: (1) Creating a policy 
environment conducive to growth in Chile's RE&EE market; and (2) 
introducing U.S. RE&EE exporters to key Chilean Government officials. 
Mission participants will also be invited to showcase their U.S.-made 
RE&EE technologies at an important industry-specific trade show 
following the trade policy mission at their own expense.
    The RE&EE trade policy mission will promote the competitiveness of 
U.S. wind, solar, geothermal, biomass, hydropower, waste-to-energy, 
smart grid, and energy efficiency exporters in a key emerging market 
and demonstrate U.S. Government support for Chile's renewable energy 
goals. The mission supports ITA's commitments contained in the 
Renewable Energy and Energy Efficiency Export Initiative (RE4I), which 
aims to significantly increase U.S. RE&EE exports by the end of 2014, 
the National Export Initiative time frame.
    If firms decide to participate in the International Fair of 
Technologies (IFT) Energy 2013 trade show immediately following the 
trade mission (April 17-19, 2013), which is encouraged by the 
Department, they will be expected to register and pay for their 
participation in the show separately from their trade policy mission 
participation fees.
    Commercial Setting:
    Chile's fast growing economy and business friendly environment 
provide an attractive market for U.S. exporters. The rapidly expanding 
Chilean economy, which grew 6.1% in 2011, has caused a dramatic 
increase in the country's energy demand. Estimates indicate that Chile 
must install an additional 8 gigawatts (GW) of generating capacity by 
2020 to meet its growing demand. Currently, Chile is dependent on 
imported fossil fuels for a large portion of its power generation 
(imported natural gas accounts for a third of the country's power 
capacity). As a result, energy prices have increased along with energy 
demand, incentivizing the development of the country's renewable energy 
resources. In fact, renewable energy technologies are much closer to 
``grid parity'' in Chile than in most markets, enhancing their 
competitiveness.
    Chile has a strong and growing energy industry. The country 
privatized its power sector in 1982, and today, has 70 power generation 
companies (4 dominant firms), five transmission operators (1 dominant), 
and 34 distribution companies (4 dominant). In renewable energy, Chile 
led Latin America in implementing a renewable energy portfolio standard 
(RPS). By 2011, Chilean utilities were required to produce 5% of their 
output from renewable energy sources; the quota increases by 0.5% 
annually from 2015 until 2024. Despite the RPS, renewable energy (aside 
from large hydropower) contributed just 2.7% of Chile's power capacity 
at the end of 2011. As a result, Chile must make a substantial 
investment in the sector to achieve its goal of 20% renewable energy 
capacity by 2020.
    Fortunately, Chile possesses some of the world's largest potential 
for renewable energy. By 2011, Chile had installed only 0.198 GW of 
wind capacity, for example, despite an estimated potential of up to 10 
GW. Likewise, Chile has developed only about half its biomass potential 
and has a small fraction of at least 2 GW of geothermal potential under 
development. Chile's solar potential is one of the largest in the world 
and--like other renewable energy technologies--has been largely 
undeveloped.
    Chile's new National Energy Strategy contains six pillars: Energy 
efficiency; renewable energy; traditional fossil fuels; smart grid; 
competition in electricity distribution; and regional electricity 
distribution. In a speech on February 28, 2012, President Pi[ntilde]era 
announced the Government of Chile (GoC) would introduce 100 laws and 
administrative measures to implement the new strategy.
    The mission will occur at an opportune time, as Chilean policy 
makers seek to establish policy to support the growth of renewable 
energy in their country. By facilitating high-level discussions between 
U.S. exporters and Chilean officials, the mission will help create a 
burgeoning export market for U.S. RE&EE companies, substantially 
increasing U.S. exports to a country whose resource potential and 
business environment portends significant growth for years to come.
    ITA's U.S. and Foreign Commercial Service (US&FCS) at the U.S. 
Embassy in Santiago reports that U.S. companies are well positioned to 
meet export orders; and that potential policy incentives could strongly 
catalyze additional development. Opportunities are expected in the 
wind, solar, geothermal, biomass, hydropower, and energy efficiency 
sectors. Several U.S. firms have already made investments in Chile's 
renewable energy sector.
    Mission Goals:
    The RE&EE trade policy mission will facilitate the development of 
an export market by supporting the establishment of policy incentives 
in Chile's RE&EE market. The mission will combine the policy 
development and advocacy efforts of a traditional trade policy mission 
with networking and business outreach opportunities for participating 
firms.. The delegation will have a unique opportunity to meet 
government officials, discuss policy concerns, and suggest creative 
solutions to Chile's energy challenges. Several topics pertinent to the 
creation of a thriving renewable energy market will be addressed, 
including:
     Establishment of incentives to help Chile meet the goals 
of its National Energy Strategy;
     Development of interconnection standards and feed-in 
tariffs that would attract global investment and provide an incentive 
for development;
     Mapping of renewable energy resources;
     Strengthening of policy and regulatory cooperation between 
the United States and Chile; and
     Development of local financing institutions to further 
encourage development.
    Trade policy mission participants are also encouraged to exhibit at 
the IFT Energy 2013 trade show immediately following the trade policy 
mission. Participation in IFT Energy 2013 is not mandatory and firms 
that exhibit will be expected to make arrangements with the conference 
organizer separate from their participation in the trade policy 
mission.
    Mission Scenario:
    The Renewable Energy and Energy Efficiency Trade Policy Mission 
will provide several opportunities for participants to discuss policy 
challenges

[[Page 64107]]

with Chilean Government officials. In addition, mission participants 
will have an opportunity to showcase their products in a U.S. Pavilion 
during the IFT Energy 2013 trade show.
    During the trade policy mission, participants will:
     Receive market briefings on the status of the renewable 
energy market in Chile, including an assessment of upcoming 
opportunities;
     Receive a Market Assessment Report on opportunities in 
Chile's renewable energy market;
     Be introduced to key Chilean government officials and 
decision-makers during government-to-government meetings for 
opportunities to discuss policies and the business environment; and
     Attend a networking reception with Chilean business 
persons and government officials organized by the U.S. Foreign and 
Commercial Service.

                           Proposed Timetable*
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             Date                      Day                Activity
------------------------------------------------------------------------
April 14......................  Sunday...........  Arrive in Santiago,
                                Santiago, Chile..   Chile.
April 15......................  Monday...........   Market
                                Santiago, Chile..   briefing on RE&EE
                                                    industry in Chile
                                                    for mission
                                                    participants by
                                                    US&FCS Santiago and
                                                    Embassy staff.
                                                    Meetings
                                                    with key GoC
                                                    officials and
                                                    stakeholders.
April 16......................  Tuesday..........   Lunch and
                                Santiago, Chile..   seminar at AmCham
                                                    Chile.
                                                    Networking
                                                    and exchange with
                                                    key private sector
                                                    contacts.
                                                    Networking
                                                    reception at
                                                    Ambassador's
                                                    Residence.
                                                    Mission
                                                    ends.
April 17......................  Wednesday........   [OPTIONAL]
                                Santiago, Chile..   Opportunity to
                                                    attend/exhibit IFT
                                                    Energy 2013.
April 18......................  Thursday.........   [OPTIONAL]
                                Santiago, Chile..   Opportunity to
                                                    attend/exhibit IFT
                                                    Energy 2013.
April 19......................  Friday...........   [OPTIONAL]
                                Santiago, Chile..   Opportunity to
                                                    attend/exhibit IFT
                                                    Energy 2013.
------------------------------------------------------------------------
*Note: The final schedule will depend on the availability of local
  government and business officials, specific goals of the mission
  participants, and air travel schedules.

    Participation Requirements:
    All parties interested in participating in the trade mission must 
complete and submit an application package for consideration by the 
Department of Commerce. All applicants will be evaluated based on their 
ability to meet certain conditions and best satisfy the selection 
criteria as outlined below. A minimum of 15 and maximum of 25 companies 
will be selected to participate in the mission from the applicant pool. 
U.S. companies already doing business in Chile as well as U.S. 
companies seeking to enter to the Chilean market for the first time may 
apply.
    Fees and Expenses:
    After a company or organization has been selected to participate on 
the mission, a payment to the Department of Commerce of a participation 
fee is required. The participation fee for the Trade Mission will be 
$1,100 for a small or medium-sized firm (SME) \1\, and $1,400 for large 
firms. The fee for each additional firm representative (large firm or 
SME/trade organization) is $500. Expenses for travel, lodging, meals, 
and incidentals will be the responsibility of each mission participant. 
Delegation members will be able to take advantage of U.S. Embassy rates 
for hotel rooms. The cost to exhibit at the show is $575 per square 
meter of booth space; this will be paid by the trade mission 
participant directly to the show organizer.
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    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contracting_opportunities/sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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    Exclusions:
    The mission fee does not include any personal travel expenses such 
as lodging, most meals, local ground transportation, except as stated 
in the proposed timetable, or air transportation to and from the United 
States. Business visas are not required. Participants will be expected 
to register and pay for the IFT Energy 2013 trade show separately from 
their trade policy mission registration and dues, if they decide to 
participate in the show following the mission.
    Conditions for Participation:
    An applicant must submit a completed mission application signed by 
a company officer, together with supplemental application materials, 
including adequate information on the company's products and/or 
services, primary market objectives, and goals for participation. If 
the Department of Commerce receives an incomplete application, the 
Department may reject the application, request additional information, 
or take the lack of information into account when evaluating the 
applications.
    Each applicant must also certify that the products or services it 
seeks to export through the mission are either produced in the United 
States, or, if not, marketed under the name of a U.S. firm and has at 
least 51 percent U.S. content of the value of the finished product or 
service.
    Selection Criteria for Participation: Selection will be based on 
the following criteria:
     Suitability of the company's products or services to the 
market;
     Applicant's potential for business in Chile and in the 
region, including likelihood of exports resulting from the mission;
     Consistency of the applicant's goals and objectives with 
the stated scope of the mission;
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process. Diversity of company size and 
location may also be considered during the review process.
    Timeline for Recruitment and Applications:
    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register, posting on the Commerce 
Department trade mission

[[Page 64108]]

calendar (http://export.gov/trademissions) and other Internet Web sites 
(including the Renewable Energy & Energy Efficiency Exporters Portal at 
www.export.gov/reee), press releases to general and trade media, direct 
mail, notices by industry trade associations and other multiplier 
groups, and publicity at industry meetings, symposia, conferences, and 
trade shows. Recruitment for the mission will begin immediately and 
conclude no later than March 1, 2013. The U.S. Department of Commerce 
will review applications and make selection decisions on a rolling 
basis beginning in November 1, 2013. Applications received after March 
1, 2013 will be considered only if space and scheduling permit.
    Contacts:
Ryan Mulholland, Renewable Energy Trade Specialist, MAS--Office of 
Energy and Environmental Industries, Phone: (202) 482-4693, Email: 
Ryan.Mulholland@trade.gov;
Ellen Lenny-Pessagno, Senior Commercial Officer, U.S. Commercial 
Service--Santiago, Chile, Tel: (56) 2-330-3610, Email: Ellen.Lenny-Pessagno@trade.gov.

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-25647 Filed 10-17-12; 8:45 am]
BILLING CODE 3510-FP-P