Analysis Of Financial Responsibility Options As Part Of The Underground Injection Control Program's Class VI Regulations
PDF of Proposal
In 2010, the Environmental Protection Agency (EPA) moved to regulate the geologic storage of carbon dioxide (CO2) through the Safe Drinking Water Act (SDWA)’s Underground Injection Control (UIC) program. The new category of well, known as Class VI wells, are used to inject CO2 into deep rock formations. These requirements, also known as the Class VI rule, are designed to protect underground sources of drinking water.
The Class VI rule builds on existing UIC program requirements, with extensive tailored requirements that address carbon dioxide injection for long-term storage to ensure that wells used for geologic sequestration are appropriately: sited, constructed, tested, monitored, funded, and closed. A requirement of obtaining a Class VI permit is a demonstration of financial responsibility. Financial responsibility requirements are designed to ensure that owners or operators have the resources to carry out required Geologic Storage (GS) activities related to closing and remediating GS sites if needed, during injection or after wells are plugged, so that they do not endanger Underground Sources of Drinking Water (USDWs). These requirements are also designed to ensure that the private costs of GS are not passed along to the public.
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
TASK 2. REVIEW OF FINANCIAL RESPONSIBILITY IN EXISTING PERMIT ACTIONS
TASK 3. ROUND TABLE DISCUSSION WITH MEMBERS OF FINANCIAL INSTITUTIONS
Interested parties are requested to submit a cost proposal and a brief technical proposal of 4-5 pages, including the following:
Note: The proposal should also include, as an appendix, copies of the resumes of the individuals nominated to work on this project, indicating the specific tasks they will be performing through the scope of work outlined in this RFP.
The sub-agreement between USEA and the winning offer will be structured as a fixed sub-agreement for labor, fringe benefits and overhead. USEA will fund other direct costs, including travel (transportation, lodging and a U.S. Government approved daily meals and incidental allowance) directly. USEA will also fund directly all costs necessary to conduct the meetings. The cost proposal should include an estimate of the number of trips required to organize and conduct each of the two meetings. Labor costs should include a level of effort for each person proposed to work on this assignment, their daily loaded rate, and the total estimated charge for each individual proposed.
The following criteria will be used to evaluate proposals:
20% -- Proven experience in, and knowledge of, geologic storage of CO2 and the EPA’s UIC program requirements including an understanding of the technology and the financial, commercial, environmental, regulatory and technological impacts associated with it.
20% -- Strong financial understanding with ability to assess and recommend proper mechanisms for demonstrating financial responsibilities
20% -- Familiarity with the relevant stakeholders and financial community with a proven network of contacts with organizations who may have interest in UIC Class VI permits
35% -- Price
5% -- Attention to detail
Interested parties are requested to register their interest prior to March 19, 2018 via email to the following mailbox: [email protected]. Registering interest will ensure you receive all questions submitted by interested parties and the corresponding responses from USEA.
Questions on the terms of this request for proposals must be submitted prior to March 19, 2018 by email to the following mailbox [email protected].
All questions received and their corresponding responses will be distributed to all parties registering interest in this request for proposals.
Final proposals must be submitted by email by the close of business on April 13, 2018 to the following mailbox [email protected].