Economic Analysis Forum Background –EAF History & Status Membership & Recruitment Mission & Job Supporting & Cross-cutting Activity Follows Strategy Formulations Changing & Evolving Requirements of “Stakeholders” (Impacts Today & Tomorrow)

Economic Analysis Forum Proposed Tasks & Activities –Establish Evaluative Framework –Identify Analysis Requirements –Product Review, Use and Possible Extensions –Assist Other Forums –Synthesis of Existing Products –Tailored Summaries for SIP/TIP

Economic Analysis Forum Proposed Tasks & Activities (Cont) –Establish Evaluative Framework Approaches & Assessment Tools Identification Standard Analysis Packages Strengths & Weaknesses (biases and uncertainties) Capabilities to Use (mechanics, data development, results interpretation, SIP/TIP application) Narrow vs broad view of costs and benefits

Economic Analysis Forum Proposed Tasks & Activities (Cont) –Identify Analysis Requirements Identify Requirements for Analysis Support Establish Timeline for Support May Include Review, Interpretative Assistance Might Include Analytical Support, Actual Analysis, Product Development Interface with Other Forums (OBE?)

Economic Analysis Forum Proposed Tasks & Activities (Cont) –Product Review, Use and Possible Extensions Understand Principal Approaches & Resultant Outputs Identify Key Model Assumptions & Uncertainties Reconcile Differing Data and Scenario Specification (where needed & appropriate) Assist States & Tribes in Product Use Probable Emphasis on Costs and Impacts

Economic Analysis Forum Proposed Tasks & Activities (Cont) –Assist Other Forums Determine Their Individual and Collective Needs Provide Focal Point for Synthesis and Adaptation Identify Opportunities for Creative Use and Further Applications Possible Role as SIP/TIP Product Integration

Economic Analysis Forum Proposed Tasks & Activities (Cont) –Synthesis of Existing Products Prepare Regional & State Summaries in Common Format Construct Consistent Cost and Impact Information for Use in SIPs/TIPs Extract Additional Information from Analyses Results Propose, and Conduct Where Possible, Extended Assessments Supporting Cost and Benefit Estimates

Economic Analysis Forum Proposed Tasks & Activities (Cont) –Tailored Summaries for SIP/TIP Significant Economic Results for Each Stakeholder Discussion of Major Uncertainty Implications Standard Economic “Cost” Categories -- Production, Jobs & Income, Industry Health, Taxes, Other Economic Impact/Benefit Categories -- Health, General Welfare, Preservation

Economic Analysis Forum Workload Allocation Assist States/Tribes in Economic Assessments for SIPs/TIPs (including translating WRAP studies & other economic products) [EAF] –Determine State/Tribe Requirements [EAF] –Where Appropriate, Extend Existing Studies to Meet State’s/Tribe’s Needs [EAF/Contractor(s)]

Economic Analysis Forum Reconcile Differences in Methods, Assumptions, Data, & Results Among Studiests [Contractor(s)] Assess Overall Benefits & Costs of Meeting Regional Haze Rule at Both a Regional and State Level [Contractor(s)/EAF]

Economic Analysis Forum Identify Tools, Past Studies, & Evaluative Frameworks to Perform Needed Assessments at Both Regional & State/Tribe Levels [Contractor(s)/EAF] Assist States/Tribes to Assess Costs, Benefits & Impacts on Their Respective Budgets and Economies [Contractor(s)/EAF]

Economic Analysis Forum Use Past Studies and Existing Materials, Whenever Possible, to Meet Stakeholder Needs [EAF/Contractor(s)]

Economic Analysis Forum Benefits of meeting Regional Haze Rule –Health (mortality, morbidity, lost work days) –Recreation quality in state –Intrinsic benefits: Quality of life, environment Costs of meeting Regional Haze Rule –Regulatory costs to local and state government –Economic costs to affected sources –Secondary effects: Lost jobs, electricity rates

Economic Analysis Forum Benefits and Costs of 309 over 308 –Benefits include flexibility in abatement, potentially lower costs and greater reductions, abatement innovation encouraged. –Costs include uncertainty as to how other states affect costs, potentially higher abatement costs, administrative/transaction costs of trading

Economic Analysis Forum How to get states/tribes involved in EAF –Contact each party by phone –Explore with each party where & why economics is important to SIP/TIP –Discuss available studies, what they say (and do not say), and how those studies can help states –Arrange conference calls for consistency

Economic Analysis Forum Contracting Options to assist EAF –Single Contract (Integrated) –Split Contracts (Specialized) –BOA/TOA –Extension of Current (MTF, APP, EM, …) Schedules –EAF Growth –Task 2 Now

Economic Analysis Forum Schedules –Task 2 Now –Tasks 1 & 3 Next –Tasks 4, 5, & 6 Follows