1. 3/24/16
1
The Roller Skating
Association of America
Sustainability and the Future
Christopher Castro
Lean Six Sigma Green Belt Candidate
Overview

2. 3/24/16
2
Define
Scope, Goals, Financial Targets
1,000 Member Centers
National Office:
Indianapolis, IN
Roller Skating Association Section Map
1
2
4
5
3
7
8
13
12
11
9
6
10
Define

3. 3/24/16
3
Skate
Center
Facility
Mgmt.
S.T.E.M.
Education
Program
Sustainability
Non-Profit
Sponsors /
Partners
Skate Center
Admin
Community
Grounds-
keeping
Supply
Delivery /
Pickup
Material
Recovery
Facility
Custodial
Services
Waste
Mgmt.
Buildings
& Energy U.S. EPA
Rink
Owners /
Employees SRSTA
Skating
Coaches
Athletes
Children
Green
Sports
Alliance
NRDC
Adults /
Parents
Fans
Concessio
n
Pepsi Cola
Local
Conservati
on Groups
Skate
Suppliers
USGBC /
LEED
Skate
Apparel
Suppliers
Dept. of
Energy
Educators
Skate
Floor
Covering
Non-Profit
Skate
Centers
Sanctioned
Competitions
Hybrid or
Electric
vehicle
mfg.
Stakeholder
Legend
Funding
Expertise
Legitimacy
Connections
Outreach/
Marketing
Support
Sponsorship
Infrastructure
Recycle
Mania
Eco-
Products,
Inc.
White
Wave
Foods
Define
The Sigmoid Curve
Define

4. 3/24/16
4
Define
Return on Investment
• If a broker said, “I could make you 650% to 1,000% return on your
investment money,” would you be interested?
• Stated another way, “Would you like to earn $6.50 to $10.00 for every
dollar you invest?”
• What if I said, “You cannot afford to NOT make the investment
because your business may ultimately generationally fail.” would you
be interested to know why?
Define

5. 3/24/16
5
Challenges Ahead
(Further Defining)
• The U.S. Energy Information Administration (EIA) projects annual electricity price
increases in the range of 1.9 to 3.4% through 2040 (Cook, 2013, p. 5)
• By the year 2060, a global population near 10 billion will have higher median incomes
and consume 350% more electricity than current levels (Adamec et al., 2009, p. 23).
Define
Our Energy Future:
Demand vs Supply
0
100
200
300
400
500
600
700
800
900
1000
2011 2052 2060 2088
Energy Reserves (Billion Tons Oil Equivalent)
CIA Fossil Fuel Reserve Estimate 2011 – 2088
Coal
Gas
Oil
Define

6. 3/24/16
6
Fuel Mix for Electricity Generation
Define
Regional Fuel Mixes
Define

7. 3/24/16
7
Historical Energy Costs
Electricity Price – cents per kilowatt-hour (kWh)
Define2000 – 2015 3.03% + Inflation
Measure
Thoroughly understand the current state
and collect reliable data on costs.

8. 3/24/16
8
Energy Requirements
Year Mo. Cost kWh Rate Mo kWh Yr kWh Yr Cost
2016 $3,000 $0.1320 22,727 272,727 $36,000.00
kWh Savings
LEDs 10% 20,455 245,455
Measure
$0.0000
$0.1000
$0.2000
$0.3000
$0.4000
$0.5000
$0.6000
2000 2010 2020 2030 2040 2050 2060 2070 2080
kWh Rate Increase 2.0% per year + 3.24% Inflation
$0.0000
$0.2000
$0.4000
$0.6000
$0.8000
$1.0000
$1.2000
$1.4000
2000 2010 2020 2030 2040 2050 2060 2070 2080
kWh Rate Increase 3.1% Per Year + 3.24% Inflation
Projected Rate Increases
(EIA, 2016, p. 120)
Measure
8.1 12.8 32.5 57.5 8.1 12.8 52.8
127.5

9. 3/24/16
9
2% Annual Increase
3.24% Inflation
3.1% Annual Increase
3.24% Inflation
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
$160,000.00
2088 = $151,840
2060 = $85,675
2016 = $34,848
2000 = $21,384
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
2088 = $336,705
2060 = $139,370
2015 = $33,805
2000 = $21,385
Projected Increase Comparison
264,000 kWh / Year
Measure
Total Cost = $6.25M Total Cost: $10.2M
$1 (2016) = $4.36 (2088) $1 (2016) = $9.66 (2088)
Operating Cost Breakdown (%)
Measure
0.13%
0.18%
0.18%
0.44%
0.53%
0.62%
0.71%
1.06%
3.47%
4.44%
4.44%
5.32%
7.10%
7.86%
8.09%
14.78%
32.82%
7.83%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%
RSA Dues
ASCAP/Music
Security
Cleaning/Bathroom supplies
Admin Supplies
Water / Waste
Transportation
Medical
Property Taxes
Concession supplies
SBA Short term loan
Electric
Building Lease
Hourly Wages
Sales Tax 8.7%
Salaries
Taxes (Federal)
Profit

10. 3/24/16
10
Analyze
Pinpoint and verify causes affecting the input and
output variables related to project goals.
Analyze
Analyze
2% + 3.24%
The Rub
(Harvey, 2011)(CIA & DOE, 2016)
(Adamec et al., 2009) (Cook, 2013)

11. 3/24/16
11
Improve
Learn from pilots of possible solution(s)
and execute full-scale implementation
Wind Turbine Goods & Others
• An average onshore wind turbine with a capacity of 2.5–3 MW can
produce more than 6 million kWh in a year
• Wind turbines under 100 kilowatts cost roughly $3,000 to $8,000 per
kilowatt of capacity. A 10 kilowatt machine (the size needed to power
a large home) might have an installed cost of $50,000-$80,000
($65,000 Median).
• The costs for a utility scale wind turbine range from about $1.3
million to $2.2 million per MW of capacity installed. Most of the
commercial-scale turbines installed today are 2 MW in size and cost
roughly $3-$4 million installed.
Improve

12. 3/24/16
12
Wind Turbines
• Cost $1.4 - $4M
• Real Estate
• Aesthetics
• Complexity
• Noise (40-90dB)
• Maint. Safety
• Predictable Wind
• Net Metering Cap
Improve
ROIC 28.46 x $580,000 = $16.5M
($6.25M Savings + $10.26M NetM)
Improve

13. 3/24/16
13
Tesla Powerwall
Improve
How Long Do They Last?
• The majority of manufacturers
offer the 25-year standard solar
panel warranty, which means
that power output should not be
less than 80% of rated power
after 25 years.
Improve

14. 3/24/16
14
Typical Rink 100 ft x 220 ft
22,000 ft2
Improve
Risk Assessment
Risk Description
Business
Impact
Probability of
Occurrence
Priority
(1,3, 5) (1,3, 5)
Engineering Investigation (Weightvs.Wind) 5 3 15
RoofCollapse 5 3 15
Installation (Roofvs.Ground vs.Carport) 25 - 33,000 lbs. 3 3 9
Maintenance 3 3 9
Upkeep - Cleaning 1 5 5
Theft 5 1 5
Panel Failure (Parallel vs.Series) 1 3 3
Complete Solar Failure 3 1 3
Vandalism 1 3 3
Capture Rate 1 1 1
Power Loss on Commercial Grid 1 1 1
0
0
1-low,5-high
Improve

15. 3/24/16
15
Risk: Roof Collapse
New Jersey
Massachusetts
Improve
Reminder

16. 3/24/16
16
Cost / Net Metering Comparison
75kW systems
kWh/yr
needed
Capt.
rate
Req.
kWh
kWh/k
W-yr
kW
system
Panel
(kW)
Panels
needed
Unit cost
(60 panels) Total Cost
WA Sales Tax
8.75% Total
Fed
Income
Tax
Credit
MACRS
IRS
deductio
n
WA Sales
tax 75%
exempti
on
WA Net
sales tax
owed
WA Net
Metering
1 88,000 0.90 97,778 1,300.00 75.00 0.31 241. $48,000.00 $(192,800.00) $(16,870.00) $(209,670.00) $19,280 $38,560 $12,653 $(4,218) $47,520
2 176,000 0.90 195,556 1,300.00 150.00 0.31 483. $48,000.00 $(386,400.00) $(33,810.00) $(420,210.00) $38,640 $77,280 $25,358 $(8,453) $95,040
3 264,000 0.90 293,333 1,300.00 225.00 0.31 725 $48,000.00 $(580,000.00) $(50,750.00) $(630,750.00) $58,000 $116,000 $38,063 $(12,688) $142,560
Wind Turbine Systems
kWh/yr
needed
kW
system
Output
(kW)
Turbines
Needed
10kW
system Total Cost
264,000 225 10 23 $65,000 $1,495,000
Commercial 2MW $3,500,000
Improve
Maximum Net Metering
Revenue: $47,520
Year Mo. Cost kWh Rate Mo kWh Yr kWh Yr Cost
2016 $3,000.00 $0.1320 22,727 272,727 $36,000.00
kWh Savings
LEDs 10% 20,455 245,455
Recommended Installation
• Minimal Engineering Investigation
vs. Roof Install
• Easier/Safer Installation
• Maintenance Safer and Easier
• Dual Purpose Vehicle Shelter
• Vandalism Deterrent (vs. Ground)
250kW system as low as $422,800 (Non-WA Manufacturer)
75% Less Net Metering Revenue
Improve

17. 3/24/16
17
Immediate ROIC
Loan Cost vs. Electric Cost
$2,295
$667
$8,004
$2,581
$381
$4,572
$2,725
$237
$2,844$2,952
$10 $120$0
$2,965
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Monthly Payment Electricity Savings Annual Savings
$630,000 – 30 Year v s. 20 Year F ixed @ 3.61% v s. Cash
Mont hly Payment vs. Elect ric Cost
$630,000 20% Down / 30 Year Fixed $630,000 10% Down / 30 Year Fixed $630,000 5% Down / 30 Year Fixed $630,000 20% Down / 20 Year Fixed $630,000 Cash
$35,580
Improve
Tax Structure / Incentives
CORPORATE FEDERAL TAX TABLE
If taxable income is Of the
over but not over The tax is amount over
$0 $50,000 $ 0 + 15% $0
50,000 75,000 7,500+25% 50,000
75,000 100,000 13,750 + 34% 75,000
100,000 335,000 22,250 + 39% 100,000
335,000 10,000,000 113,900 + 34% 335,000
10,000,000 15,000,000 3,400,000 + 35% 10,000,000
15,000,000 18,333,333 5,150,000 + 38% 15,000,000
18,333,333 — 35% 0
Analyze
$97,440
$64,256
$37,901
$22,717
$22,717
$11,358
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2017 2018 2019 2020 2021 2022
Total Tax Incentives = $256,000
Improve

18. 3/24/16
18
$70,030
$103,214
$129,569
$144,753 $144,753
$156,112
$167,470$167,470
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
2017 2018 2019 2020 2021 2022 2023
Fe de ral Income Taxes Bas ed on $ 350,000 annual gross + $ 1 42,500 net
me te ring Total Fed Income Tax
Total - No Deductions
Income Tax
6 Year IRS Incentives = $256,000
Improve
Solar Net Energy Savings
$631,000 (30 years)
$27,540
$8,028
$8,762
$9,512
$10,277
$11,057
$11,854
$12,668
$13,498
$14,345
$15,210
$16,093
$16,994
$17,913
$18,852
$19,810
$20,787
$21,785
$22,804
$23,843
$24,904
$25,987
$27,092
$28,220
$29,372
$30,547
$31,746
$32,970
$34,220
$35,495
$36,797
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
30 Year Note – Annual Loan Cost vs. Solar Net Savings
264,000kWh
2017 –2046 (2%)(3.24%)
Loan Net Savings
Improve

19. 3/24/16
19
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
20 Year Note – Annual Loan Cost vs. Solar Net Savings
264,000kWh
2017 –2046 (2%)
Loan Net Savings
Annual Loan Cost: $35,424 Total Net Savings: $750,000
Solar Net Energy Savings
$750,000 (30 years)
Loan Net Savings: $62,430
Improve
Electricity Net Savings
after Loan Payoff
30 Year Fixed @ 3.61% 20 Year Fixed @ 3.61%
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
$160,000.00
2037 2042 2047 2052 2057 2062 2067 2072 2077 2082 2087
264,000kWh
2037 – 2088 (2%)(3.24%)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
2047 2052 2057 2062 2067 2072 2077 2082 2087
264,000kWh
2047 – 2088 (2%)(3.24%)
$4.912M
$5.17M
(Tax Incentives)
$4.325M
$4.58M
(Tax Incentives)
Improve

20. 3/24/16
20
Non – Solar Projections
$350,000/yr
30 Year
2% Annual Increase /3.24% Inflation
$10,500,000
$5,487,844
Electric
Taxes
Gross
Net Profit
$(1.44M)
$(3.57M)
72 Year
2% Annual Increase /3.24% Inflation
$(6,251,972)
$(8,568,000)
$25,200,000
$10,380,028
Electric
Taxes
Gross
Net Profit
Improve
30 Year
Net Solar Projection
Washington State Non – Washington State
$(951,928)
$631,000
$256,389
$4,276,800
$15,407,800
$9,688,151
Taxes
Electricity Net Savings
Federal Tax Savings
Net Metering Revenue
Gross
Net Profit
($4.77M)
$(951,928)
$(3,279,726)
$631,000
$256,389
$0
$11,387,389
$7,155,735
Taxes
Electricity Net Savings
Federal Tax Savings
Net Metering Revenue
Gross
Net Profit
Improve

21. 3/24/16
21
72 Year Net Solar Projection
(2% Annual Increase /3.24% Inflation)
Washington State Non – Washington States
$(951,928)
$256,389
$6,251,972
$31,708,361
$22,188,433
Taxes
Federal Tax Savings
Electricity Net Savings
Gross
Net Profit
$(951,928)
$256,389
$6,251,972
$10,264,320
$41,716,292
$28,962,884
Taxes
Federal Tax Savings
Electricity Net Savings
Net Metering Revenue
Gross
Net Profit
($11.8M)
($8.57M)
Improve
Net Profit Comparison
$5,487,844
$7,155,735
$9,688,151 $10,380,028
$22,188,433
$28,962,884
No Solar Non – WA State Solar WA State Solar No Solar Non – WA State Solar WA State Solar
30 Year Projection 72 Year Projection
Improve

22. 3/24/16
22
Enterprise Impact:
715 RSA Skate Centers
$7.422
$16.000
No Solar Solar
72 Year Projections
2016 – 2088
RSA Enterprise Wide (2016 Billions)
Improve
Control
Control
Complete project work and hand off improved process to owner,
with procedures for maintaining the gain.

23. 3/24/16
23
Sustainability Strategy
Milestones
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Begin Carbon Footprint Reduction
Begin Recycling / Composting
Begin Energy Conservation LEDs
Begin Water Conservation
Define Metrics / Measurements
Implement Metrics/Measurements
Develop eSTEM curriculum
Begin Solar Installs
Review Metrics / Data collected
Evaluate Progress/update metrics
Present updated plan to board
60% Waste Diversion
2028 H20 consumption = 2018 lvl
2030 Net ZeroCarbon emissions
2030 100% Waste Diversion
Control
Reporting / Marketing
• Individual Centers Report Quarterly to RSA for Consolidation
• RSA Publish Annual Results IAW Global Reporting Initiative (GRI)
Standards
• RSA develop and roll out National Strategic Messaging Campaign for
RSA Center’s local marketing deployment
Control

24. 3/24/16
24
Interconnected System Messaging
Circular
Economy
Focus
Sustainability
Economy Focus
Control
References
Adamec, C. J., Arinci, Y., Austin, M. R., & Bain, E. W. (2009). The Future of Electricity:
Electricity Today, Drivers of Change, and Electricity Tomorrow. Retrieved from
Bloomington, IN:
http://www.indiana.edu/~cree/documents/V600_Capstone_Future_of_Electricity_20
09.pdf
Cook, J. (2013). The Future of Electricity Prices in California. Retrieved from Davis, CA:
http://eec.ucdavis.edu/files/02-06-2014-The-Future-of-Electricity-Prices-in-
California-Final-Draft-1.pdf
Harvey, J. T. (2011). What Actually Causes Inflation (and who gains from it). Retrieved from
http://www.forbes.com/sites/johntharvey/2011/05/30/what-actually-causes-
inflation/#3e2403a04ad2
U.S. Energy Information Administration (2016). Electric power monthly: With data for
December 2015. Washington, DC: U.S. Department of Energy Retrieved from
http://www.eia.gov/electricity/monthly/current_year/february2016.pdf