Southern Appalachian Mountains Initiative, 57 Woodfin Place, Asheville, NC 28801

B -- RFP FOR SOCIOECONOMIC ANALYSIS OF AIR QUALITY ACTIONS SOL se0700 DUE 072700 POC Sharon Fahrer (828) 251-6889 and Faye Keanum (828) 251-6000 WEB: RFP for Socioeconomic Analysis of Air Quality Actions, http://www.saminet.org. E-MAIL: Contact for Information, Sharon.Fahrer@ncmail.net. REQUEST FOR PROPOSALS BY THE SOUTHERN APPALACHIAN MOUNTAINS INITIATIVE TO MODEL THE SOCIOECONOMIC CONSEQUENCES OF AIR QUALITY MANAGEMENT ACTIONS June 19, 2000 I. SUMMARY This document requests assistance to model the socioeconomic consequences of air quality management actions and the changes in air quality that may result from those actions. The request is issued by the Southern Appalachian Mountains Initiative (SAMI), an eight-state nonprofit organization composed of a variety of stakeholders including regulators, permit holders, federal land mangers, and environmental organizations. The budget for this work has a maximum of $520,000, although contractors may bid on portions of the work. Proposals are due July 27, 2000 by 4:00 p.m. EDT. They should be sent to: SAMI The Interchange Building 59 Woodfin Place Asheville, North Carolina 28801 Attention Sharon Fahrer Sharon.Fahrer@ncmail.net The project is expected to be complete by August 2001. A preliminary study on this topic (enclosed) indicated that six socioeconomic topics should be modeled. These are: fishing hiking/enjoying scenery sense of place/stewardship mortality competitiveness effects and jobs in at risk sectors and lifestyle changes Although SAMI's assessment of socioeconomic indicators is not comprehensive, it will provide detailed regional information for the topic areas analyzed. SAMI policy makers will use socioeconomic information in addition to the results of air quality and ecosystem modeling to select the most promising air quality management strategies for recommendation to the eight states that SAMI includes. If you or your organization intend to respond to this request for proposals, please inform Faye Keanum by phone or voice mail message at (828) 251- 6000 (extension 100) no later than 4:00 p.m., July 10, 2000. Provide the name and telephone number of the individual coordinating the response, as well as the firm's name, if applicable. Please read the qualifications section below before responding. If you or your organization is interested in and qualified to respond to this RFP, please arrange to have representation on a July 12, 2000 conference call. The call will begin at 2:30 p.m. EDT and end no later than 4:30. The call-in number is 202-260- 1015 followed by the access code 6659#. So that all interested responders have equal access to information, this call will be your ONLY opportunity for asking questions. SAMI staff, along with Socioeconomic Work Group members will be on the call to answer your questions. II. SAMI BACKGROUND SAMI is a non-profit organization, whose goal is to provide a regional strategy for assessing and improving air quality, based on sound science, through a public and private partnership. This organization with voluntary membership focuses on regional air quality issues in the Southern Appalachian Mountains. SAMI consists of eight state environmental regulatory agencies (AL, GA, KY, NC, SC, TN, VA, WV), several federal agencies, industries, academia, environmental organizations, and other stakeholders across the region. (Map attached). SAMI's mission is: Through a cooperative effort, identify and recommend reasonable measures to remedy existing air pollution and to prevent future adverse effects from human-induced air pollution on the air quality related values of the Southern Appalachians, primarily those of Class I parks and wilderness areas, weighing the environmental and socioeconomic implications of any recommendations. SAMI is in the process of building an integrated assessment composed of a series of computer models that will project the environmental responses to compliance with the Clean Air Act Amendments of 1990 and responses to additional changes in air emissions resulting from various emission management scenarios. The assessment will endeavor to estimate the social and economic consequences of various control alternatives. The assessment is divided into six linked modules: 1. Base year Emission Inventory, Emission Projections through 2040, and Control Costs for Alternative Emission Management Actions 2. Air Chemistry and Transport 3. Effects of Acid Deposition 4. Effects of Ozone 5. Effects of Visibility 6. Socioeconomic Consequences The first five modules will project emissions and the movement of pollutants to Class I parks and wilderness areas in the Southern Appalachians. As they move, primary pollutants may react to form secondary pollutants such as ozone. Other separate but linked computer models will examine the effects of acid deposition (both aquatic and terrestrial), and ozone on ecosystems in the area. Visibility impairment will also be examined. The recommendations made as a result of this RFP will lead to an assessment of the socioeconomic consequences (the sixth module) both of the management actions that SAMI will recommend and of the resulting changes in air quality. The direct costs of installing controls such as construction and operations and maintenance costs will be evaluated by the contractor that is assisting SAMI with the emissions inventory. That information will be available to the Phase II socioeconomics contractor. The Social and Economic Responses portion of the assessment may be driven by outputs from any or all of the other computer models. For example, a human health analysis may be determined using exposure information generated by the air chemistry and transport model. Tourism implications may be based, in part, on the effects of acid deposition on fishery resources. Regional economic impacts may be influenced by the direct cost of recommended emission controls. The enclosed flow chart (Enclosure A) describes some of these relationships. SAMI is particularly interested in analyzing the socioeconomic effects related to the SAMI mission. Where possible connections should be made in the analysis to results from other SAMI analyses such as direct cost of controls or ecosystem effects. More information on SAMI and the Integrated Assessment are available at the SAMI website at www.saminet.org. III. OBJECTIVE This RFP seeks an assessment of the socioeconomic consequences (both costs and benefits) of a series of hypothetical air quality management actions. IV. METHOD A successful proposal will describe how the six socioeconomic factors described in the Phase I Socioeconomic Report (attached) will be analyzed to determine how they will change in response to a series of hypothetical emission management strategies. Depending on the topic or the resources available, the analyses may be either qualitative, quantitative or both. Wherever possible the proposed socioeconomic analyses should be linked to other parts of the Integrated Assessment described in the Background section above. Proposals may suggest other topics to include in the analysis, as well as exclusion of topics from the six listed. For exclusion of any of the six topics or suggested added topics, a compelling rationale for change, tied to the SAMI mission (above) will be required. Costs for extra topics should be clearly identified in the proposal so they can be compared to the costs in other proposals. Proposals should address three levels of effort for each of the six socioeconomic topics addressed and define what is included in each level. The sum of the base level task costs should not exceed $155,000, the sum of the midlevel task costs should not exceed $265,000 and the sum of the high level tasks should not exceed $520,000. Please provide a cost for each level of effort and each topic area, resulting in 18 costs. Discuss interaction effects between the topic areas. These costs should be "fully loaded" with any administrative costs, profit, or other charges that normally apply to the cost of an entire contract. Please break out relatively fixed costs related to the proposed work such as travel and coordination costs. SAMI reserves the right to select any of the eighteen elements and costs and to mix high, medium and low effort levels. The total awarded may be less than $520,000. SAMI prefers to select a single consulting team to address all socioeconomic issues, but we reserve the right to select morethan one team if SAMI's review indicates that approach will provide a stronger final product. Please note that the low level total of $155,000 exceeds the low level target in the enclosed Phase I report by $25,000 which was provided to SAMI for this work since that report was prepared. The SAMI Policy Committee is developing strategy descriptions to run in the SAMI Integrated Assessment Model, including the socioeconomic component that is the topic of this request for proposals. Four strategies of a possible nine strategies have been identified. Expressions used to describe these strategies by the SAMI Policy Committee are "On the Books" (OTB), "On the Way"(OTW), "Bold", and "Bold with Constraints". OTB corresponds in general with the emissions controls that are now in place (year 2000). OTW adds controls such as Tier II auto controls, low sulfur gas, and the NOx SIP call. The Bold strategy applies state-of-the-art controls to all sources as soon as possible -- "off the shelf" controls for 2010 and existing prototypes for 2040. Bold with Constraints introduces logistic constraints and other practical considerations to the same general controls described in Bold. Up to five other strategy scenarios will be defined as the socioeconomic work proceeds. The scenarios selected will need to be sufficiently different for the proposed modeling approach to detect a change. Contractor guidance is welcome in selecting which strategies and how many strategies to analyze. SAMI now envisions approximately six strategies for analysis. In your RFP, please specify a cost per scenario for each topic and the number of scenarios proposed to be analyzed for each topic area at each of the three levels of effort. Be clear about which strategies they will include e. g. OTW, OTB etc. Please specify the cost of adding or subtracting a strategy for analysis. SAMI proposes a geographic coverage for the analysis as described in the Phase I report and summarized in Appendix G. A proposal for a different coverage should be highlighted and justified. Please provide a table similar to the example provided below to assist SAMI in evaluating your proposal. Also provide more detail in the proposal narrative including the degree of specificity or uncertainty involved. Topic Level of Effort Method Qualitative or Quantitative* GeographicalScope/Data Source Strategies Analyzed(OTB. OTW. Bold etc.) Cost Fishing High Willingness to pay analysis 3 sites* Quantitative SAMI region & Class I six $87k Medium Benefits transfer 5 studies* Quantitative SAMI region & Class I four $52k Low Benefits transfer one study* Quantitative SAMI region & Class I two $23k Hiking/Enjoying Scenery High Medium Low Sense of Place/Stewardship High Medium Low Mortality High Medium Low Competitiveness and Jobs High Medium Low Lifestyle Changes High Medium Low Total High $520,000 Medium $265,000 Low $155,000 * Please note that the entries provided opposite the fishing category are hypothetical and are intended to illustrate the type of information and level of detail desired by SAMI. V. DELIVERABLES 1. A detailed plan of work subject to approval by the Work Assignment Manager with guidance from the Socioeconomic Workgroup. 2. A one to two-day workshop describing the proposed assessment methodology for each topic that will be analyzed. 3. A preliminary report describing the results of the socioeconomic analysis for the first two strategy scenarios. 4. A one to two-day workshop on the preliminary report (item 3). 5. A draft final report which includes all scenarios and strategies. 6. A workshop on the draft final report. 7. A final report incorporating all SAMI comments. VI. PROPOSAL OUTLINE The following outline should be used. The proposal should be 20 pages or less, excluding appendices. The proposal should stand-alone and refer to appendices as needed for more detail. Please include: First page or transmittal letter with contact person, address, phone, fax and email. Also include a proposal abstract that identifies total cost, schedule, and general approach. Qualifications and Experience Summary (one page) Approach Schedule, including deliverables, milestones, and a graphic timeline Budget, by task and by level of effort, by key staff assigned to the project (as shown in the table of Scenarios) Appendices Resumes of key staff assigned to the project Clients from 1997 to present (in order to eliminate the possibility of conflict of interest) Table describing alternate approaches, if any Other materials Suggested report section lengths VII. CONTENTS OF PROPOSAL Technical Proposal The requirements of this RFP should be carefully followed so that the proposals may be evaluated with consistency and so that misinterpretation is minimized. Responders are invited to raise issues and challenges related to tasks required by the RFP. If a respondent cannot fulfill a stated task or if that task is not feasible within SAMI's expectations for time and cost, clearly state a reason for these opinions. Alternative approaches are welcome, but at least one proposed approach must meet the SAMI schedule and budget. The entire technical proposal should not be more than 20 pages, plus appendices, and its preparation shall be at the expense of the respondent. Once submitted, the proposal becomes the property of SAMI. Summary of Qualifications and Experience SAMI will consider proposals only from organizations with demonstrated experience in assessing the socioeconomic consequences of environmental management actions. Team proposals involving more than one organization are welcome. Team proposals should indicate any prior experience working as a team. A concise statement, not to exceed one page, of relevant experience must be included for any proposal to receive further consideration. More detailed descriptions of previous work and qualifications may be appended. SAMI is composed of organizations and individuals with a variety of perspectives (environmental and industrial representatives for example). We are also composed of people from a variety of disciplines. Experience with selecting a Phase I contractor suggests that it will be critical that each proposal team be "balanced" in terms of the disciplines represented (both sociologists and economists) and also balanced in their work experience (industrial, regulatory and public interest clients for example). Balance in these two areas should be explicitly addressed in the proposal. Appended information related to contractor experience and qualifications should include: in 5 pages or less per individual, the resumes of key personnel who are proposed to perform work on this contract. A description of previous work performed by the firm or any key personnel working on the regional socioeconomic analysis is expected. This information should be summarized in the body of the proposal with attachment of additional materials if needed. Also provide the name of the organization for which the work was performed as well as a client contact name and phone number. SAMI reserves the right to contact any firm or person supplied as a part of this information. Personnel Commitment Please provide information in the proposal as to which personnel will be assigned to each task and their level of effort on that task. VIII. PROPOSED SCHEDULE This RFP released June 28, 2000 Clarification of RFP Conference Call July 12, 2:30-4:30 p.m. EDT Proposals Due (see specific deadline) July 27, 4:00 p.m. EDT Selection of Preferred Proposal August 31 Contract Award Early September Detailed Scope of Work Approved September 15 Workshop on proposed Approach Early October Workshop on results for two scenarios January 2001 Workshop on draft final report April 2001* Final Report June 2001 * * The timing of these last two milestones will depend on the availability of products from other SAMI contractors. Please indicate in the proposal your ability to be flexible on these dates and any affect that flexibility may have on costs. Posted 06/22/00 (W-SN467504). (0174)

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