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
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. 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.
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. 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. 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
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%.
24. Who Owns it Matters
What are the things communities
could decide if they owned their own
sustainable energy resources?
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. 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
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. 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. 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. 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. 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
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. 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. 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. Co-op Power’s Mission
To build
a multi-class, multi-racial movement
for a sustainble and just
energy future
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. 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. 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. Discounts on
solar electric &
solar hot water
packages
Arrange Site Assessment
Help with Federal, State &
Co-op Power Rebates
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. 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)
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. Savings at Energy Federation Incorporated
Web Site
Hundreds of Energy Conserving Items Discounted 10%
www.efi.org
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. Heat your home with
3% or 20% Biodiesel Blends
No need to buy new equipment!
Get 2-5¢ a gallon rebate
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. 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.
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Co-op Power
Building a multi-racial, multi-class movement
for a sustainable and just future
