The United States Energy Association (USEA), in cooperation with the U.S. Department of Energy Office of Fossil Energy (DOE), seeks proposals for a consultant to undertake a review of Class VI permits, both finalized and permits which were not completed, to assess methods which companies have used or could potentially use to demonstrate financial responsibility.  A component of this project will also be to engage with project developers, as well as financial entities, to assess the viability and applicability of a number of available mechanisms, including how they apply to Class VI requirements and any recommendations for future permit applications under Class VI regulations.  The intention of this study is twofold: first, to inform future geologic storage demonstration programs through a refining of costs which will aid the Department of Energy in assessing future projects, and second to provide potential projects with a list of mechanisms beyond those which they may already consider.

 In doing so the Consultant will perform the following tasks:

TASK 1.            REFINE PROPOSED SCOPE OF WORK 

• The Contractor will facilitate a face-to-face or electronic meeting of the parties participating in or supporting this contract. 
  • Parties shall include: members of the Insurance industry who have shown interest in insuring geologic storage projects; potential project managers or participants, including members of the Regional Carbon Sequestration Partnerships and any projects who have applied for Class VI permits, representatives from the US Department of Energy’s Office of Fossil Energy, and any other research or financial organizations who may have interest in UIC Class VI permits. 
  • Prepare letters of invitation to selected meeting participants
    • The invitation list shall be shared with input requested from representatives from DOE’ s Office of Fossil Energy, and be limited to a reasonable number to be identified, based on schedule, availability, and meeting space.
    • Identify meeting location
  • Must be done in coordination with USEA and USEA retains final approval.
  • If and when possible, meetings will be held at the USEA office conference room at 1300 Pennsylvania Ave NW, Washington DC 20004.
    • If there is no space available or if there is ample justification for a meeting outside of Washington, then with USEA’s approval an alternative location can be considered.
    • Work in close cooperation with USEA to ensure it is actively involved in developing and approving meeting materials and develop an agenda that covers the following goals and outcomes:
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• Summarize EPA’s Guidance document, dated December 2010 titled Research and Analysis in Support of UIC Class VI program: Financial Responsibility Requirements and Guidance Pro-forma business models for sub-regional ICCUS pilot projects;
• Present the Scope of Work for this effort;
• Seek input from meeting participants regarding the methodology and approach proposed to be used to execute Task 2 and Task 3 (below) and facilitate a discussion of mechanisms that might be analyzed to a greater extent in Tasks 2 and 3 that, in the judgment of the meeting participants, might be used to address and overcome the identified  barriers.
  • Meeting participants will be asked to identify industry participants who might be able to provide expertise on financial responsibility aspects being addressed in Task 3. 
• Working in close cooperation with USEA, prepare a summary report detailing meeting proceedings containing a list of participants, complete with contact information. This meeting summary will be included in the interim and final reports.

TASK 2.            REVIEW OF FINANCIAL RESPONSIBILITY IN EXISTING PERMIT ACTIONS

• Review and assess the financial responsibility mechanisms used in finalized or pending Class VI permits, and prepare a white paper in order to better enable the planning of future Class VI projects undertaken by the DOE or industry participants.  Specific aspects of the report shall include:
• • An assessment of mechanisms which have been (or proposed to have been) used to demonstrate financial responsibility for Class VI permits
  • A review of other potential mechanisms available and their appropriateness in Class VI permits
  • An assessment of the costs of financial responsibility mechanisms which have been used and assessment of potential future options
  • Recommendations for addressing financial responsibility for future projects, delineated based on project structure
  • Recommendations for next steps, including potential policy solutions to any identified issues, follow up studies, or potential research and development
• In addition, the scope of work may be adjusted to include other mechanisms which the Contractor may find useful in determining financial responsibility, including methods used to complete the permit process.  The scope of work will be reviewed with the contractor, as stated in Task 1 above.

TASK 3.            ROUND TABLE DISCUSSION WITH MEMBERS OF FINANCIAL INSTITUTIONS

• Identify members of the finance community and facilitate a round table discussion to illicit options which may provide financial responsibility for Class VI permits. The consultant will:  
• • Identify meeting location 
    • Must be done in coordination with USEA and USEA retains final approval. If in Washington, DC the meeting will be held at USEA’s office.
  • Invite participants drawn from the finance community, including insurance professionals, finance specialists, and project developers
  • Facilitate discussions on the mechanisms and options that may be used to demonstrate financial responsibility, with the goal of establishing recommendations for future projects which may need to procure Class VI permits
  • Prepare a report summarizing the meeting proceedings with recommendations for next steps to be presented along with the report developed in Task 2