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Worker-owned Cooperatives
           for Energy Efficiency Remodeling
          to provide meaningful jobs for returning veterans


        A project of the NY Building Performance Contractors Association
                    and the Cooperative Development Institute

 Proposed Project Introduction
 February 2013                 CONFIDENTIAL


Building Performance Contractors Association of NYS
Quick Intro to BPCA
  BPCA-NYS is a 10-year-old non-profit trade association whose
  members are primarily energy efficiency contracting companies,
  building science consultants, & Energy Star® raters.
  We offer the following services:
  •Advanced Training
     – Classroom events at non-profit rates
     – Online webinars for continuing ed credits
     – Two-way interactive video training events
  •Field Mentoring
  •Testing for Certification
  •Energy Star® Ratings Provider
  •Speaker/Trainers’ Bureau
  •Back-office Software Services Exchange           Conrad Metcalfe – Executive Director




  Building Performance Contractors Association
Building Performance Contractors Association of NYS                  of NYS
Executive Summary
    As energy prices become more volatile, a new market is emerging for
     residential remodelers and building contractors to provide affordable, clean,
     secure energy efficiency services.
    BPCA wants to support the creation of jobs for returning veterans by helping
     them to form worker-owned cooperative businesses that perform energy
     efficiency remodeling services in underserved areas of New York State.
    BPCA is already focused on building up the marketplace and energy
     efficiency businesses through market transformation for their services.
    BPCA is partnering with the Cooperative Development Institute (CDI) to
     help make this vision a reality.
    CDI's mission is to build a cooperative economy through the creation and
     development of successful cooperative enterprises and networks.




Building Performance Contractors Association of NYS                              3
Energy Costs will Continue to Rise
  •   Competition is growing for available energy resources
  •   Tensions in Middle East & South America have impacted
      energy supplies and production costs
                                                   Global Petroleum Production
  •   Peak oil production                    US Global Change Research Program

      may have already
      occurred


  The constant exporting
     of our energy dollars is
     killing our local (and
     national) economy!
                                                            2010




Building Performance Contractors Association of NYS
Longer Term Driving Forces?




Building Performance Contractors Association of NYS
                       US Global Change Research Program
Energy Efficiency Contracting
   • The convergence of two remodeling niches
      – Whole House Diagnostic Analysis
      – Energy Efficiency Renovations


   • Unique selling process of
     whole house energy analysis
     to determine the sources of
     building performance issues

   • Establish “life time” customer relationships
     to further improve Energy Efficiency behavior
     over time through sophisticated feedback
     mechanisms


Building Performance Contractors Association of NYS   6
The Deep Green Retrofit Business Model for
  Veteran-owned Cooperative Businesses
    1.   Starts with energy audit
    2.   The sale and proposal
    3.   The software model
    4.   The renovation work
    5.   Test-out and tracking
    6.   Ongoing consulting




Building Performance Contractors Association of NYS   7
Or Perhaps Two Business Models?
 .
 • Deep Green Retrofit Sales: An in-
   home sales organization that will
   provide energy audits and consulting
   services. This group will use standard
   energy audit best practices and
   computer-based analysis software.

 • Deep Green Retrofit Contractor
   Services: A team of contractors
   will provide energy efficiency
   installation and renovation
   services based on energy audit
   recommendations.



Building Performance Contractors Association of NYS
 8
In Home Sales & Services
 Deep Green Retrofit Sales
    Building Analysts that identify
    home performance issues using
    Building Science and testing
     – Comprehensive Energy
        Assessment and Testing
     – In Home Professional Service
        • Helpful, Friendly, Courteous,
          Respectful, Clean & Efficient
    – Quality Assurance
        • Testing in and testing out
    – Deep Green Retrofit Image
      and Brand Development




Building Performance Contractors Association of NYS   9
Contractor Retrofit Services
 Deep Green Retrofit Contractor Services
 • Teams of in-house (and when necessary outsourced) contractors will
   provide installation of more sophisticated products and services
   including PV, solar, geo-thermal and wind energy systems, as well as
   contractor-based insulation and HVAC services and products.
     – Air Sealing
     – Insulation Installation
     – Ventilation
     – Windows and Doors
     – HVAC Replacement
     – Ducting Rework
     – Automation for Lighting
       & Load Control
     – PV and Solar systems
     – Deep Green Retrofit Appliance Delivery and Installation



Building Performance Contractors Association of NYS                  10
Returning Veterans are Well-Positioned for
        Energy Efficiency Contracting
        •   Used to working as a team
        •   Used to using both mind and body to get things done
        •   Used to a certain level of discipline and loyalty
        •   Not easily deterred by adverse conditions




Building Performance Contractors Association of NYS               11
The market for energy efficiency is well positioned
                                                  for growth




Building Performance Contractors Association of NYS            12
Small Business Dominates this Space




Building Performance Contractors Association of NYS   13
Underserved Areas of New York State


 1.   Western Southern Tier
 2.   Southern Catskills
 3.   The Adirondacks
 4.   New York City!




Building Performance Contractors Association of NYS   14
Principles of Co-op Businesses
  •   Voluntary and Open Membership
  •   Autonomy and Independence
  •   Transparent Operations
  •   Concern for Community
  •   Democratic Member Control
  •   Access to Training & Information
      The cooperative form of business is a unique model that has been
      extensively used all over the world to help groups of people obtain
      things that would otherwise not be available to them, and to do so
      in a fair and equitable way. (Cooperative Development Services)

      The cooperative employee-owned business is expected to be
            the world’s fastest growing business model by 2025


Building Performance Contractors Association of NYS                         15
BPCA Support to Businesses
     1.   Industry Orientation
     2.   Technical Training
     3.   Field Mentoring
     4.   Certification Support
     5.   Just-in-Time Tech Support
     6.   Business Process Development
     7.   Market Development
     8.   Encouragement




Building Performance Contractors Association of NYS   16
Additional Resources are Available
         • Cooperative Development Services (CDS)
         • Green Worker Cooperatives (GWC) and Academy
         • National Cooperative Business Association
           (NCBA)




Building Performance Contractors Association of NYS      17
Management Team
     BPCA
     Conrad Metcalfe – Executive Director
     Jody Schwan – Operations Manager
     Frederick Terry – Quality Assurance

     CDI
     Noemi Giszpenc – Executive Director
     Kathleen Fekete Bauerlein – Grants and Projects Coordinator



      For more information, call Conrad Metcalfe 607-327-0583



Building Performance Contractors Association of NYS             18

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Deep green vets introduction 030113 for public distribution

  • 1. Worker-owned Cooperatives for Energy Efficiency Remodeling to provide meaningful jobs for returning veterans A project of the NY Building Performance Contractors Association and the Cooperative Development Institute Proposed Project Introduction February 2013 CONFIDENTIAL Building Performance Contractors Association of NYS
  • 2. Quick Intro to BPCA BPCA-NYS is a 10-year-old non-profit trade association whose members are primarily energy efficiency contracting companies, building science consultants, & Energy Star® raters. We offer the following services: •Advanced Training – Classroom events at non-profit rates – Online webinars for continuing ed credits – Two-way interactive video training events •Field Mentoring •Testing for Certification •Energy Star® Ratings Provider •Speaker/Trainers’ Bureau •Back-office Software Services Exchange Conrad Metcalfe – Executive Director Building Performance Contractors Association Building Performance Contractors Association of NYS of NYS
  • 3. Executive Summary  As energy prices become more volatile, a new market is emerging for residential remodelers and building contractors to provide affordable, clean, secure energy efficiency services.  BPCA wants to support the creation of jobs for returning veterans by helping them to form worker-owned cooperative businesses that perform energy efficiency remodeling services in underserved areas of New York State.  BPCA is already focused on building up the marketplace and energy efficiency businesses through market transformation for their services.  BPCA is partnering with the Cooperative Development Institute (CDI) to help make this vision a reality.  CDI's mission is to build a cooperative economy through the creation and development of successful cooperative enterprises and networks. Building Performance Contractors Association of NYS 3
  • 4. Energy Costs will Continue to Rise • Competition is growing for available energy resources • Tensions in Middle East & South America have impacted energy supplies and production costs Global Petroleum Production • Peak oil production US Global Change Research Program may have already occurred The constant exporting of our energy dollars is killing our local (and national) economy! 2010 Building Performance Contractors Association of NYS
  • 5. Longer Term Driving Forces? Building Performance Contractors Association of NYS US Global Change Research Program
  • 6. Energy Efficiency Contracting • The convergence of two remodeling niches – Whole House Diagnostic Analysis – Energy Efficiency Renovations • Unique selling process of whole house energy analysis to determine the sources of building performance issues • Establish “life time” customer relationships to further improve Energy Efficiency behavior over time through sophisticated feedback mechanisms Building Performance Contractors Association of NYS 6
  • 7. The Deep Green Retrofit Business Model for Veteran-owned Cooperative Businesses 1. Starts with energy audit 2. The sale and proposal 3. The software model 4. The renovation work 5. Test-out and tracking 6. Ongoing consulting Building Performance Contractors Association of NYS 7
  • 8. Or Perhaps Two Business Models? . • Deep Green Retrofit Sales: An in- home sales organization that will provide energy audits and consulting services. This group will use standard energy audit best practices and computer-based analysis software. • Deep Green Retrofit Contractor Services: A team of contractors will provide energy efficiency installation and renovation services based on energy audit recommendations. Building Performance Contractors Association of NYS 8
  • 9. In Home Sales & Services Deep Green Retrofit Sales Building Analysts that identify home performance issues using Building Science and testing – Comprehensive Energy Assessment and Testing – In Home Professional Service • Helpful, Friendly, Courteous, Respectful, Clean & Efficient – Quality Assurance • Testing in and testing out – Deep Green Retrofit Image and Brand Development Building Performance Contractors Association of NYS 9
  • 10. Contractor Retrofit Services Deep Green Retrofit Contractor Services • Teams of in-house (and when necessary outsourced) contractors will provide installation of more sophisticated products and services including PV, solar, geo-thermal and wind energy systems, as well as contractor-based insulation and HVAC services and products. – Air Sealing – Insulation Installation – Ventilation – Windows and Doors – HVAC Replacement – Ducting Rework – Automation for Lighting & Load Control – PV and Solar systems – Deep Green Retrofit Appliance Delivery and Installation Building Performance Contractors Association of NYS 10
  • 11. Returning Veterans are Well-Positioned for Energy Efficiency Contracting • Used to working as a team • Used to using both mind and body to get things done • Used to a certain level of discipline and loyalty • Not easily deterred by adverse conditions Building Performance Contractors Association of NYS 11
  • 12. The market for energy efficiency is well positioned for growth Building Performance Contractors Association of NYS 12
  • 13. Small Business Dominates this Space Building Performance Contractors Association of NYS 13
  • 14. Underserved Areas of New York State 1. Western Southern Tier 2. Southern Catskills 3. The Adirondacks 4. New York City! Building Performance Contractors Association of NYS 14
  • 15. Principles of Co-op Businesses • Voluntary and Open Membership • Autonomy and Independence • Transparent Operations • Concern for Community • Democratic Member Control • Access to Training & Information The cooperative form of business is a unique model that has been extensively used all over the world to help groups of people obtain things that would otherwise not be available to them, and to do so in a fair and equitable way. (Cooperative Development Services) The cooperative employee-owned business is expected to be the world’s fastest growing business model by 2025 Building Performance Contractors Association of NYS 15
  • 16. BPCA Support to Businesses 1. Industry Orientation 2. Technical Training 3. Field Mentoring 4. Certification Support 5. Just-in-Time Tech Support 6. Business Process Development 7. Market Development 8. Encouragement Building Performance Contractors Association of NYS 16
  • 17. Additional Resources are Available • Cooperative Development Services (CDS) • Green Worker Cooperatives (GWC) and Academy • National Cooperative Business Association (NCBA) Building Performance Contractors Association of NYS 17
  • 18. Management Team BPCA Conrad Metcalfe – Executive Director Jody Schwan – Operations Manager Frederick Terry – Quality Assurance CDI Noemi Giszpenc – Executive Director Kathleen Fekete Bauerlein – Grants and Projects Coordinator For more information, call Conrad Metcalfe 607-327-0583 Building Performance Contractors Association of NYS 18

Editor's Notes

  • #2: BPCA wants to support the creation of jobs for returning veterans by helping them to form worker-owned cooperative businesses that perform energy efficiency remodeling services in underserved areas of New York State. The BPCA training trailer is a significant component of this effort.
  • #3: For those of you that are unfamiliar with BPCA, we are a 501c6 whose members are primarily energy efficiency contracting companies, building science consultants, and Energy Star raters. BPCA is focused on building up the marketplace and the businesses of our members through market transformation for energy efficiency services. Within this context, we function mostly as an training organization – specifically addressing advanced topics on energy efficiency diagnostics, deep retrofits, and building performance. I’ve been in this role as Executive Director for about 6 months, so some of the things on this list are new directions for BPCA, while some of them we have been doing since our inception. For example, we have offered classroom training with some of the biggest names in the building performance industry since day one. Due to the rising costs of travel - and the fact that everyone is so damn busy these days – we are now transitioning more to offering webinars, and also two-way interactive video-conference training – where we’ll have a day of training that involves a stream of experts interacting from their offices – talking directly with small groups of trainees through two-way video-conference – so the trainees can see the trainer at the front of the room – larger than life, and the trainer can see the class through a fish-eye webcam set up in the front of the room. Very personal, very interactive – very green. But many of the skills required by this industry can only be acquired in real-time –in the field, and so we are building this mobile training lab so we can offer individualized field mentoring around the state in conjunction with actual projects that are underway. We have always worked closely with the Building Performance Institute, and we are in the process of becoming a BPI test center under their new guidelines, so we are building a network of proctors around the state. And we are starting to offer training and testing services for RESNET – the Residential Energy Services Network – and BPCA is one of the oldest and largest ratings providers in the country supporting the EPA’s Energy Star Homes program. We are getting more vocal in the public arena, building up our brand with consumers by offering a speakers bureau that brings energy efficiency closer to home in communities around the state and beyond And coming soon, BPCA will be offering a clearinghouse for back-office software services which will allow small companies to ramp up without having to add staff (until they are ready). Services will include: - Manual J / D / S / T - TREAT - REM/Rate plan reviews - ResCheck - Code compliance plan checks - and others as requested… We are working to create a network of BPCA members that are interested in doing this type of work – and a chat-room type interface where these sorts of transactions can occur. So that’s just a quick introduction to BPCA and what we are up to – so, we got that out of the way, now lets move on to talk about mold.
  • #4: In September 2012, group of US legislators opposed a non-partisan bill to create jobs for integrating returning veterans into the workforce. There’s no need to wait for their permission. We have a critical need to reduce our nation’s dependence on fossil fuels. Returning veterans give us the manpower to get the job done. We need a realistic and immediate path forward. With the NYSERDA mobile training lab, BPCA has all the equipment and business support tools necessary to train veterans and grow these businesses. BPCA has a mobile training lab and a lot of heart.  
  • #5: On a national (and global) level, these are the forces driving the market. As reported by the Energy Information Administration (EIA), the daily global consumption of crude oil has risen by 22 percent in the past 16 years, and the price of crude has increased nearly eightfold in the same period. Gasoline demand in the same period jumped approximately 44 percent – as the traded futures price of gasoline increased six times. Clearly, the amount by which the price has risen seems to have exceeded the degree by which demand has grown. There are several reasons why the fuel prices will continue to rise. First, one of the reason for prices remaining high is the upward pressure for gasoline during its peak demand season. Apparently, gasoline supplies in the United States is inadequate to get through the peak season, as indicated by the continuous falling gasoline inventory. This summer America's gasoline demand continued to increase at such a speed that the existing refining capacity found it hard for supply to keep pace with demand. Even though the peak driving season is now behind us, with the peak heating fuel season approaching, the market may continue to experience upward product price pressures. Second, the oil market is a global one, and America is not the only large consumer. With countries like China and India consuming an increasing amount of oil, global demand for oil is rising faster than global supply. As a result, oil prices are rising throughout the world, which leads to higher gas prices in America. Third, the ongoing battles and volatility in Iraq have a tremendous impact on the oil market. Furthermore, the loss of production in Iraq is an unsettling example of the disruption a small group of guerrillas can create. It sparks global fears that the same type of disruption could happen to Saudi Arabia or Russia. For a market already facing a tight fuel supply, that would represent a huge challenge and strain. To solve the problem, we must undergo a rapid change.
  • #6: While the causes of climate change is still subject to debate, the statistics are real. And the response world-wide has been decisive. We in the U.S. have been shielded from this by a federal government heavily influenced by the oil industry – but now the Obama administration is taking climate change seriously – and yet unwilling to take significant measures due to the current state of the economy. Eventually, the cost of producing carbon will start to be reflected somewhere. It is not exactly clear where, but it will further drive the momentum to avoid waste and promote efficiency.
  • #8: Pictures used with acknowledgement to Alleghany Power, PAHomeEnergy and PSD. They will be changed out with other non-proprietary images before this document is finalized.
  • #9: Pretty standard HP business model here, which we are pushing in underserved areas on NYS. One thing I learned as part of Performance Systems contracting company - if you want that guy to do the best job in the very back corner of the attic, it helps a great deal if he's some sort of vested interest in the company.
  • #12: Will have a vested interest in properly addressing every corner of the attic ONLY if they have a stake in the company!
  • #15: Home Performance audits and projects as per NYSERDA 2012 Energy efficiency craftsman will have more vested interest in properly addressing every corner of the attic if they have a stake in the company!
  • #16: co-operative principles are guidelines by which co-operatives put their values into practice. 1st Principle: Voluntary and Open Membership Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. 2nd Principle: Democratic Member Control Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organised in a democratic manner. 3rd Principle: Member Economic Participation Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership. 4th Principle: Autonomy and Independence Co-operatives are autonomous, self-help organisations controlled by their members. If they enter to agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy. 5th Principle: Education, Training and Information Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of co-operation. 6th Principle: Co-operation among Co-operatives Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures. 7th Principle: Concern for Community Co-operatives work for the sustainable development of their communities through policies approved by their members.
  • #17: BPCA has 178 member companies – most of which will be actively supportive of this effort. Just-in-time building science tech support is on the horizon, but probably farther off than the consideration of this business plan will allow. Nonetheless, it is currently a missing component of the “marketplace transformation continuum” that I hope to add at some point. Pictures belong to PA Home Energy program and Performance Systems
  • #18: These are resources that are available to BPCA to support this effort.