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systems are more affected by factors that influence hydrology, stream characteristics, <br />and temperature. Reduced stream flow diminishes aquatic habitat and degrades water <br />quality. Those changes reduce the habitability of the ecosystem for fish and increase <br />the vulnerability of species populations up and down the food chain. The National <br />Drought Policy Act of 1998 recognizes the need to prepare for and lessen the severe <br />impacts of drought. The National Drought Policy Commission has stated that effective <br />drought plans should consider the allocation of water to meet the need to protect the <br />environment and to meet immediate human needs. <br />Indirect Societal Effects: Local, regional, and statewide economies are vulnerable to <br />drought impacts. Economic impacts of drought include decreased land value, reduced <br />economic development, higher food costs, loss of revenue to federal, state and local <br />governments, unemployment, and rural population loss. Socially, drought negatively <br />impacts human health, increases conflicts among water users (especially those with <br />differing water values), reduces the quality of life, and can ultimately result in changes in <br />lifestyle. Droughts disrupt cultural belief systems, and bring re- evaluation of social <br />values to the forefront. <br />Power: The hydropower sector in Colorado is vulnerable to drought. As the flow of <br />water diminishes during drought, the hydropower sector can incur severe economic <br />losses. Lower water flows reduce the amount of power generated and the revenues for <br />the industry, increasing costs associated with purchasing replacement power, and <br />increasing electricity rates for the customer. Fossil fuel and nuclear plants typically <br />require large volumes of water to generate steam for turbines and to use as cooling <br />water. When in- stream flow is lowered by drought, thermal discharge limits can <br />potentially limit the operating capacity of some of these plants. <br />The following work plan describes how we propose to accomplish the development of <br />the vulnerability assessment to meet FEMA requirements and to guide the State in <br />determining risk and vulnerability of assets. Excerpts of specific points taken from the <br />RFP are noted where they coincide with the scope of work. <br />AMEC's approach will be to develop a rigorous yet flexible vulnerability assessment <br />approach that will allow us to meet FEMA requirements, but also to determine the risk <br />and vulnerability of assets to drought across sectors and physiographic provinces of the <br />state. Outputs from this analysis will be used to support an updated drought mitigation <br />plan that incorporates adaptive capacity actions that integrate measures to compensate <br />for climate change, identifies hazard mitigation goals, and provides recommendations <br />for improved drought policies and mitigation efforts. Our approach is based on a strong <br />and proactive process that will fully incorporate the state drought planning team in <br />development of the vulnerability assessment approach while engaging stakeholders and <br />the public. Interim deliverables and timeframes are identified at the end of each task. <br />Task 1: Organize Resources <br />Upon award of the contract, key members of the AMEC Team will meet with the CWCB <br />project manager to refine the project scope and schedule, gather initial data and <br />documents, and plan the project kickoff meeting. <br />