Intro To Co-op Power 2 Sept 2007

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Intro To Co-op Power 2 Sept 2007

  1. 1. Co-op Power
  2. 2. Co-op Power Building a multi-racial, multi-class movement for a sustainable and just future
  3. 3. We’re now using more than one year’s worth of renewable natural resources each year, depleting our natural capital.
  4. 4. US Share of the World, 2004 Source: US EIA.gov
  5. 5. In August of 2001, New England Governors and Eastern Canadian Premiers (NEG/ECP) signed the Climate Change Action Plan which called for reducing greenhouse gas emissions 80% below 2000 levels by 2050. Source: American Solar Energy Society, Jan 2007
  6. 6. Source: American Solar Energy Society, Jan 2007
  7. 7. Source: American Solar Energy Society, Jan 2007
  8. 8. WHAT COULD BE THE IMPACTS OF CLIMATE CHANGE ON MASSACHUSETTS? WEATHER EVENTS – More frequent, more damage, downed power lines, over burdened septic systems, travel delays COASTAL IMPACTS – Loss of beachfront with rising sea levels and stronger coastal storms ECONOMIC IMPACTS – Negative impact on tourism and agriculture WATER RESOURCES – Higher temperatures accelerate evaporation and cause drier conditions and draughts; water shortages would then alter rivers, lakes and streams FISH AND OCEAN IMPACTS – Warmer, saltier ocean and changing currents will affect fish, shellfish, and lobsters and the fishing industry HUMAN HEALTH AND COMFORT - More heat waves, more frequent periods of harmful outdoor air quality, spread of certain diseases NATURAL RESOURCES – Warming could have a serious impact on our ecosystem; Non-native species may be encouraged; long term, warming could intensify droughts and damage forests. Source: Mass. Climate Action Plan, 2004
  9. 9. Other Reasons Propelling Us Forward In addition to Climate Protection… The End of Cheap Oil – Time to transition now when we have time and money to do it! Air and Water Quality Concerns – To preserve the resources we have. Energy Independence – So our way of life isn’t dependent on oil from across the globe. The desire to create good new jobs to replace the jobs we’ve lost. The desire to create a way of life that brings us together, treats people fairly, and preserves our natural resources for our children and their children.
  10. 10. There is no silver bullet.
  11. 11. We must be the change we want to see in the world! How can we maximize the use of clean, healthy energy where we live? • Here in our homes • Here in our neighborhood, our schools, municipal buildings & while providing city services • Here in the Pioneer Valley • Here in Massachusetts • Here in the Northeast?
  12. 12. Bad News: Not home to Fossil Fuels Largely Dependant on Context Coal, Gas & Nukes for Electricity Oil and LNG for home heating Good News: • MTC offers assorted educational & Grant programs • Strong academic research ties & investment • Has established Renewable Portfolio Standards • High Motor Vehicle Emissions Standards
  13. 13. Potential Energy Savings FROM INDUSTRY – 30% • Heat recovery FROM BUILDINGS – 40% • More efficient motors and drives, • Better building envelope • The use of cogeneration (also design, called combined heat and • Daylighting, power or CHP) systems that • More efficient artificial provide both heat and lighting, and electricity • Better efficiency standards for building components and FROM TRANSPORTATION– 30% appliances • Lighter-weight vehicles, • Public transit, • Improved aerodynamics, and • More efficient propulsion systems Source: American Solar Energy Society, Jan 2007
  14. 14. Energy Flow in the US in 2005 Source: US EIA.gov
  15. 15. Imagining a Sustainable World Sustainable Primary Secondary Human Resources Intermediates Intermediates Needs Sunlight Animals Food Energy Wind Organic Biomass Motors/ Fuels Lights Ocean/hydro Heat Transportation Geothermal Electricity Nuclear Hydrogen Materials Organic Batteries Minerals Inorganic Sole Source Lee Lynd, Engineering/Biology Prof. Dartmouth, ASPO Conference, Oct 2006
  16. 16. Solar Electricity
  17. 17. Electric Vehicles Powered by Solar Electricity Carbon savings from Electric Vehicles for operating a vehicle on electricity versus gasoline by state. The national average savings is 42%.
  18. 18. Electricity from Wind
  19. 19. Biomass for Electricity and Heat
  20. 20. Geothermal
  21. 21. Biodiesel
  22. 22. The biodiesel plant proposed for Greenfield will make 10 million gallons a year from recycled oil; an equivalent of 380 megawatt hours.
  23. 23. Source: American Solar Energy Society, Jan 2007
  24. 24. Who Owns it Matters What are the things communities could decide if they owned their own sustainable energy resources?
  25. 25. Privileges of Ownership When you own it, you decide: – Equipment and raw materials to use – Sustainability of production process – Who gets what you make – How much profit to make – How workers are treated – What R&D to invest in – Where to spend your profits
  26. 26. Ingredients for Community- Owned Sustainable Energy Resources • Powerful community outreach and participatory planning • Successful replicable models and technical support • A good site • A great business plan • $ from community members, grants, investors, and loans
  27. 27. Local and Regional Sustainable Energy Solutions are Needed
  28. 28. Comparison of Legal Structure Options Owners who get Can take Can take Likely to protect the Profits investments from investments from local ownership people with > $1 everyday folks over time million and give a and give benefits return in return Sole Proprietor Individuals or No No – owners can or Partnership partners sell anytime For-Profit (C- Shareholders Yes; Costs No Not unless the Corp or LLC) $300,000 for LLC is community public offering or controlled $30,000 for private placement
  29. 29. Comparison of Legal Structure Options Owners who get Can take Can take Likely to protect the Profits investments from investments from local ownership people with > $1 everyday folks over time million and give a and give benefits return in return Non-Profit Profits stay in the Can take Can take Yes non-profit; can’t donations only donations only be distributed Co-op Profits are given to No Yes; Members get Yes members who use Member Benefits the co-op in return Municipality Profits support No, but can raise Only through Yes or Govt. Entity other govt. money with bonds taxation activities
  30. 30. Results of Community Ownership Increased Job Security Community Increased Food, Housing, & Assets are retained - Ownership of Energy Security not easily sold for cash ASSETS Public Investment is Retained for Ongoing Public Benefit
  31. 31. Results of Community Ownership Increased Community Leadership Development Attention to member, worker, and Democratic Community voice is community needs Control gathered and raised Decision making focused on meeting needs vs making profits Increased Stewardship of Natural Resources
  32. 32. Results of Community Ownership Stronger Local Economy PROFITS Profits are distributed More Community Needs Met decisions made to community members More Stable Local Economy by Community and/or used to build other Increase in Community- Members community resources Owned Assets Increased Standard of Living
  33. 33. Requirements of Ownership and responsibility
  34. 34. Options for Raising the Money #1 – Municipal Utility Ownership – Have your town become a municipal utility; raise government grants, bonds, tax revenues, and co-op member equity to buy your lines and build your energy plant
  35. 35. Options for Raising the Money #2 – Municipal Ownership – Get permission from the legislature to own generation (and change the laws so you don't need to get permission); Raise grants, bonds, tax revenues, and co-op member equity to build your energy plant
  36. 36. Options for Raising the Money #3 – LLC or C Corporation Ownership – Incorporate a business with majority ownership held by a co-op, a non-profit and/or municipality committed to long- term stewardship of the generation resource; raise co-op member equity, grants, and investments to build your energy plant
  37. 37. Co-op Power’s Mission To build a multi-class, multi-racial movement for a sustainble and just energy future
  38. 38. Co-op Power STRATEGY • Build community-owned sustainable energy resources • Make sustainable energy products and services more affordable and accessible through group purchasing
  39. 39. Why Join Co-op Power? Save Money and Save the Environment Biodiesel Plant $750,000 - $975 member equity - Volunteer energy Co-op Biodiesel and Power dividends -Discounts on products & services $1,000,000 -Profits returned as Co-op steep product discounts Electricity RECs Power - Energy education and dividends Member - Learning Community Community Wind - Public policy advocacy & other - Regional/local control renewable energy projects
  40. 40. Co-op Power members save money now. Members receive: 2% off solar installations – either solar hot water or solar electric 15% off Econoheat’s Omni flexible fuel burners, furnaces, space heaters, and air conditioners 10% off solar hot water equipment from Stiebel Eltron 10% off hundreds of conservation and efficiency purchases online at efi.org (Energy Federation Inc) 2-5 cents off a gallon on heating oil (either a 3% or 20% blend of biodiesel) bringing your cost for B3 heating oil below the going market price for home heating oil in more than 100 towns
  41. 41. Discounts on solar electric & solar hot water packages Arrange Site Assessment Help with Federal, State & Co-op Power Rebates
  42. 42. Co-op Power member, Jonathan Woodbridge, on his roof with his solar hot water system installers from Kosmo Solar. Jonathan’s Co-op Power rebate: $95 on his $4,760 system.
  43. 43. Co-op Power members, the O’Neils, with their solar electric system installer from (PV)2. The O’Neils’ Co-op Power rebate: $481 on their $24,058 system. They were also able to secure a $9,990 from the MTC and $1,000 in state income tax credits for a final cost to them of $12,587 for their 2 kW system. (2004 programs and pricing)
  44. 44. Co-op Power Member Rebate: 5% off selected items
  45. 45. Omni’s Econoheat Burners, Furnaces, Air Conditioners and Space Heaters take recycled vegetable oil, biodiesel, and heating oil for the ultimate in fuel flexibility. For those who like to work for their fuel, you can stay warm burning free fryolator oil from a local restaurant. Co-op Power Discount: 15% off Retail Prices – For example, Co-op Power members receive a discount of $600 off a $4,000 furnace
  46. 46. Savings at Energy Federation Incorporated Web Site Hundreds of Energy Conserving Items Discounted 10% www.efi.org
  47. 47. Joyce Palmer-Fortune and her sons show the energy efficient attic cap they purchased online through the Energy Federation, Inc. (EFI.org) Joyce’s Co-op Power Discount: 5% off their $119.50 purchase
  48. 48. Heat your home with 3% or 20% Biodiesel Blends No need to buy new equipment! Get 2-5¢ a gallon rebate
  49. 49. Co-op Power members, the Rottenbergs, receive a delivery of bioheat from Rice Oil. The Rottenberg’s Co-op Power discount: $100 off 1,000 gallons of their bioheat purchases.
  50. 50. Energy Education: Co-op Power Manager, Lynn Benander, meets with a group of local high school students to make their own jars of biodiesel and tour her co-housing community’s solar homes.
  51. 51. Uniting Environmental Justice with Community Ownership of Clean Energy Resources
  52. 52. Why Join Co-op Power? Save Money and Save the Environment Biodiesel Plant $750,000 - $975 member equity - Volunteer energy Co-op Biodiesel and Power dividends -Discounts on products & services $1,000,000 -Profits returned as Co-op steep product discounts Electricity RECs Power - Energy education and dividends Member - Learning Community Community Wind - Public policy advocacy & other - Regional/local control renewable energy projects
  53. 53. Co-op Power members, board and staff worked together with Congressman Olver and the National Renewable Energy Laboratory to research which renewable energy resource to develop. Biodiesel production emerged as the business that would have the greatest likelihood of success and the largest environmental impact.
  54. 54. Right Time Right Place for Biodiesel Biodiesel is a clean fuel for Strong business transportation and heating - the plan with only clean fuel for diesel school skilled buses, tractors, and trucks. leadership Greenfield MA Co-op Power is building a Industrial Park biodiesel refinery in Greenfield Mass. called Northeast Biodiesel. It will produce ten million gallons a year of biodiesel from yellow grease and recycled vegetable oil beginning in 2008 and Innovative provide 22 quality jobs. Technology using High Market recycled oil Demand
  55. 55. How is Biodiesel different from recycled oil and biodiesel blends? Recycled chemical Vegetable process to Oil remove blending (from restaurants and glycerin Biodiesel with petro- Biodiesel diesel or #2 cafeterias) (B100) heating oil Blends (Blended with petro-diesel to make: B2 (2%) B3, B10, B20) Converted diesel vehicles Special Any diesel with special recycled oil vehicle in Any handling furnaces and warm Any furnace diesel boilers with weather or boiler in vehicle special Any warm furnace or handling weather boiler
  56. 56. An Engine for Building Renewable Energy Resources From 2008-2016 Northeast Biodiesel Company will give Co-op Power a $300,000 annual dividend After 2016, once the outside investors have been bought out, the bottom line of Northeast Biodiesel will all flow to Co-op Power, now estimated at $4.5 million a year These funds will be used to reinvest in Northeast Biodiesel, build new renewable energy resources, and bring deeply discounted energy products and services to our members.
  57. 57. How Co-op Power is building Northeast Biodiesel Company, LLC Capitalization Plan for Northeast Biodiesel $125,000 $625,000 Co-op Power Member Equity Federal Grants $1,866,000 Equity Investors $4,000,000 Loans
  58. 58. How Co-op Power is building Northeast Biodiesel Company, LLC At the end of ten years, Co-op Power and the biodiesel plant staff will own 100% of the biodiesel plant. Ownership at Business Launch Ownership after Ten Years Staff + 13% Staff 30% Investors 28% Co-op Power Co-op Power 70% 59% Investors are looking to get their money back, not to keep it tied up in a business for a long time, so they were pleased with a ten year exit strategy.
  59. 59. Northeast Biodiesel Cash Disbursement Projections Co-op Power members will decide how much of the Co-op Power disbursement (approximately $1.5 million/year) will be invested in building new renewable energy resources and how much will be distributed back to members in the form of discounts and rebates on energy products and services.
  60. 60. Partnering with Co-op Power There are several ways you might consider partnering with Co-op Power . . . . #1) Join this regional effort to build community- owned sustainable energy resources – raise Co- op Power member equity for your projects – leverage Co-op Power’s resources #2) Create a consumer-owned cooperative like Co-op Power for your community #3) Partner with Co-op Power to support your efforts
  61. 61. Efficiencies of Partnering with Co-op Power • You’ll save time building the residential retail products and services that encourage people to invest their equity; just start signing on members and raising your equity. • You’ll have support for your business development efforts from a large group of people with energy and business development expertise. • You’ll have access to Co-op Power’s pool of investors, grantors, and lenders to help you raise capital to launch your sustainable energy business. • You’ll save money and time, get more done, and be part of a large group of like-minded people and organizations in the region that will help you sustain your efforts.
  62. 62. Co-op Power Building a multi-racial, multi-class movement for a sustainable and just future

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