[Federal Register Volume 77, Number 24 (Monday, February 6, 2012)]
[Notices]
[Pages 5770-5773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2546]


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DEPARTMENT OF COMMERCE

International Trade Administration


Energy Efficiency Trade Mission to Russia

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce (DOC) International Trade 
Administration (ITA), U.S. Commercial Service (CS) and Department of 
Energy (DOE) are organizing an Energy Efficiency Trade Mission to 
Moscow and St. Petersburg on June 4-7, 2012, to be led by a senior-
level U.S. government official. Participating entities will have the 
option of additional meetings with business prospects in cities nearby 
Moscow and St. Petersburg.
    Russia, with a population of over 140 million and a seriously 
inefficient energy infrastructure, is a promising market for the sale 
of U.S. energy efficiency products and services. Russia presents 
lucrative opportunities for U.S. energy efficiency companies due to a 
critical need for significant investments in the sector. The trade 
mission will target a broad range of technologies to improve energy 
efficiency including electricity transmission infrastructure, smart 
grids, energy storage, road construction materials and green building. 
Companies which provide environmental goods and services (especially 
for water treatment and water efficiency) that reduce the environmental 
impact of industrial processes and energy generation are encouraged to 
apply for this mission.
    This mission will contribute to the efforts of Business Development 
and Economic Relations and Energy Working Groups of the U.S.-Russia 
Bilateral Presidential Commission (https://www.usrbc.org/goverment/presidential_commission/).
    This mission will help participating firms gain market insights, 
make industry contacts, solidify business strategies, and advance 
specific projects, with the goal of increasing U.S. exports to Russia. 
The mission will include one-on-one business appointments with pre-
screened potential buyers, agents, distributors and joint venture 
partners; meeting with national and regional government officials; and 
networking events. Participants in this official U.S. industry 
delegation will enhance their ability to secure useful meetings in 
Russia.

Commercial Setting

    Russia, one of the world's fastest growing developing economies, 
presents promising opportunities for U.S. companies that offer products 
and services in the clean technologies industries. New legislation and 
national goals addressing energy inefficiency and climate change, and 
the need to improve environmental services to the general public are 
creating a demand for energy efficient products and services.

Energy Efficiency

    Russia's President Dmitry Medvedev identified energy efficiency as 
a top priority for modernizing the Russian economy and affirmed that 
energy efficiency and conservation are among the five strategic 
priorities for Russia's technological development.
    Russia is aiming to reduce GDP energy intensity 40% by 2020 from 
its 2007 level. GDP energy intensity is currently 2.5-3.5 times higher 
than countries in Europe. Russia currently ranks among the top 25 
energy intensive countries in seven major areas of economic activity: 
Agriculture, hunting and forestry, construction, manufacturing, 
transport, storage and services. Russia is seeking to diversify and 
grow its energy sources for these sectors.
    New energy efficiency legislation in Russia passed in 2009, which 
established standards for the regulation of energy consumption to 
increase efficiency and encourage energy savings. For example, the law 
introduced restrictions on the sale of incandescent light bulbs, set 
requirements for providing energy efficiency information on product 
labels, and also set guidelines on mandatory commercial inventories of

[[Page 5771]]

energy resources, energy efficiency of new buildings, and reductions in 
spending on energy resources. The law also introduced mandatory energy 
evaluations for the most energy-intensive entities and set out 
guidelines for transition to long-term tariff regulation and the 
establishment of a common inter-ministerial energy efficiency 
information and analysis system.
    Also in 2009, the Russian Government implemented a new climate 
change policy. With the primary goal of lowering greenhouse gas 
emissions, the policy acknowledged the mitigation of climate change as 
one of the major long-term elements of security of the Russian 
Federation and placed global climate change, both in its national and 
international dimensions, among the Russian Federation's policy 
priorities. In accordance with this policy, all regional and municipal 
programs must increase the use of energy efficient technologies and 
secondary energy sources and/or renewable energy sources with specific 
energy saving targets to be met within the next 15 years.
    Smart Grids: Russia is demonstrating its interest in implementing 
smart grid technology through cooperation with the United States under 
the auspices of the U.S.-Russia Bilateral Presidential Commission's 
Energy Working Group. This cooperation aims to help Russian utilities 
reduce harmful emissions by enhancing their ability to help consumers 
use energy more efficiently; integrate and deliver renewable energy; 
and more efficiently generate, transmit, and deliver electricity to 
consumers.
    In 2010, the Energy Working Group, including the U.S. Agency for 
International Development and the U.S. Department of Energy and their 
Russian counterparts, developed a two-year work plan during a visit by 
Russian industry, technical and government officials to Texas and 
Washington, DC. The work plan encompasses utility partnership 
exchanges, business roundtables, and a joint assessment of regulatory 
and other barriers to the introduction of smart grid technologies and 
systems. From these exchanges, it became clear that U.S. companies are 
enthusiastic about exploring opportunities in Russia as this large 
system modernizes its transmission and distribution infrastructure.
    In addition to work on capacity building and policy development 
that is already underway in Russia, a number of recent agreements and 
investments reflect the emerging opportunities in the electricity 
infrastructure sector. In the run-up to the 2014 Sochi Games and 
beyond, Russia will look to invest in technologies, equipment, and 
services that will ensure needed improvements to the efficiency, 
reliability, and reach of its transmission and distribution system.
    In May 2011, San Diego Gas & Electric Company, the city of San 
Diego, Belgorodenergo, (the Belgorod region energy company) and the 
Belgorod Regional Administration signed a Memorandum of Understanding 
to cooperate on the deployment of smart grid technologies. Also in 
2011, U.S. Secretary of Energy Dr. Steven Chu and Russian Minister of 
Energy Sergie Shamtko agreed to expand the program.
    The Interregional Grid Distribution Company (MRSK), a major Russian 
electricity distributor, is running and developing a smart grid as a 
pilot project. This project in the city of Belgorod in Belgorod Oblast 
near the Ukranian border, builds on MRSK's project of the past few 
years of improving city street lighting controls, automating 
distribution networks, and installing neuron automated electricity 
metering systems. The project began with two districts of Belgorod and 
will expand to the entire city in three to five years, and eventually 
smart grid elements will be installed throughout the Oblast. 
Representatives from Moscow's Information Technologies Company note 
that Belgorod now has 35,000 smart meters and an installed system 
integrator.
    The major Russian transmission grid operator, Federal Grid Company 
of Unified Energy System, (FSK) has developed a five-year plan, the 
first three years of which will be dedicated to developing a smart grid 
systems model, along with a regulatory framework, and new equipment and 
training. In the second phase of the plan, FSK will develop several 
pilot projects.
    Green Building: Green building is a nascent sector in the Russian 
economy, though interest in these technologies is rising as domestic 
consumer energy prices rise and people and organizations become more 
conscious of spending and the positive effects of a healthier 
environment. Green industry experts believe that 2010 marked a 
significant increase in green building activity in Russia. Following 
approval of the energy efficiency legislation, the Russian green 
building community has been playing an increasingly active role in 
promoting awareness of green building concepts in the traditional 
construction sector, and supporting expansion of green standards.
    There is great potential to improve efficiency in Russia's 
residential, commercial and public buildings. Energy used in buildings 
is directly responsible for \1/3\ of energy end-use in Russia. New 
thermal insulation standards have been put into place to meet thermal 
performance and heat efficiency requirements. Opportunities exist in 
the rehabilitation of existing buildings for products in heat and water 
saving technologies including wall insulation, efficient faucets and 
windows, window heat reflecting films, door weather stripping, 
insulation for pipes, radiator heat mirrors and lighting systems in 
public buildings. Green building construction and practices are 
becoming more popular in the planning, design and construction of 
infrastructure, road building and other construction and building 
projects.
    Some of the perceived drivers of sustainable property development 
in Russia include: the increasing perception by investors that green 
certification (BREEAM, LEED or DGNB) represents lower investment risk 
in these buildings; demand from international corporations for green 
offices due to international policies and standards; increasing 
government-led initiatives towards sustainability--energy efficiency 
and innovation; the attractive prospect of higher rental and sales 
levels in green certified buildings due to a growing demand, following 
increased awareness of green building concepts and anticipated 
increases in energy prices.
    Road Infrastructure: Due to the rapid increase in the number of 
private vehicles in Russia, road transportation is a growing energy 
consumer. Products needed include road surfaces that lower CO2 
emissions, mass transit systems traffic management and sustainable 
asphalt paving.

Mission Goals

    The goal of the Energy Efficiency Trade Mission to Russia is to 
promote the export of U.S. goods and services of the energy efficiency 
sector by: (1) Introducing U.S. participants to industry 
representatives and potential clients and partners; and (2) introducing 
U.S. participants to Russian government officials in Russia to learn 
about policy initiatives that will impact the implementation of energy 
generation, energy conservation and environmental projects.

Mission Scenario

    In Moscow, the U.S. mission participants will receive an Embassy 
briefing, meet with Government of Russia officials and take part in 
one-on-one business appointments with private-sector organizations. In 
addition,

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they will enjoy a networking event with industry leaders and 
multipliers. In St. Petersburg, all of the delegates will attend a 
networking reception and have customized one-on-one business 
appointments. CS staff will support U.S. participants before and after 
the mission.

                           Proposed Time Table
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Monday, June 4, Day 1..................  Moscow.
                                         Welcome briefing by the U.S.
                                          Embassy.
                                         One-on-one business
                                          appointments.
                                         Ministry meetings.
                                         Networking reception.
Tuesday, June 5, Day 2.................  Moscow.
                                         One-on-one business
                                          appointments.
Wednesday, June 6, Day 3...............  Depart for St. Petersburg.
                                         Welcome briefing by the U.S.
                                          Embassy.
                                         One-on-one business
                                          appointments.
                                         Networking reception.
Thursday, June 7, Day 4................  St. Petersburg.
                                         One-on-one business
                                          appointments.
Friday, June 8, Day 5..................  Potential Non-U.S. Commercial
                                          Service Program.
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Participation Requirements

    All entities interested in participating in the trade mission must 
complete and submit an application package for consideration by the 
DOC. All applicants will be evaluated on their ability to meet certain 
conditions and best satisfy the selection criteria as outlined below. A 
target of 15 applicants will be selected to participate in the mission 
from the applicant pool. U.S. companies already doing business in 
Russia as well as U.S. companies seeking to enter to the Russian market 
for the first time may apply.
    Fees and Expenses: After an applicant has been selected to 
participate on the mission, a payment to the DOC in the form of a 
participation fee is required. The participation fee will be $3,200 for 
large firms and $2,650 for a small or medium-sized enterprise (SME) or 
small organization, which will cover one representative.* \1\ The fee 
for an additional representative (SME or large) is $500.
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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/contractingopportunities/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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    Expenses for travel, lodging, meals and incidentals will be the 
responsibility of each mission participant, except for transportation 
from Moscow to St. Petersburg, which will be included in the mission 
fee. Delegation members will be able to take advantage of U.S. Embassy 
rates for hotel rooms. It is our understanding that the Department of 
Energy may have funds available to offset a portion of these personal 
expenses for the trade mission. The Department of Commerce will not be 
administering this potential offset, but will forward the contact 
information on it to mission participants.
    Conditions for Participation: An applicant must submit a completed 
and signed mission application and supplemental application materials, 
including adequate information on the applicant'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 and 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 have 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 applicant's products or services to the 
market.
     Applicant's potential for business in Russia 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.
    Diversity of entities participating in the mission with respect to 
company size, sector or subsector, and location may also be considered 
during the review process.
    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. The sender will be notified of 
these exclusions.

Timeframe 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 calendar (http://export.gov/trademissions/eg_main_023185.asp) and other Internet Web sites, 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 30, 
2012. The U.S. Department of Commerce will review applications from the 
applicant pool on a first come first-served basis beginning March 30, 
2012. Applications received after March 30, 2012 will be considered 
only if space and scheduling constraints permit.

Contacts

Anne Novak, U.S. Commercial Service, Washington, DC. Tel: (202) 262-
7764. [email protected].
Bridgette Clark, U.S. Commercial Service, Moscow, Russia. Tel: +7 (495) 
728-5398. [email protected].
Anna Avetisyan, U.S. Commercial Service, Moscow, Russia. Tel: +7

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(495) 728-5398. [email protected].

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-2546 Filed 2-3-12; 8:45 am]
BILLING CODE 3510-FP-P