NetZero is an ad hoc committee of members from Richmond Hill United Church (RHUC) who want to reduce the carbon footprint at RHUC.  A net zero energy building has zero net energy consumption and zero carbon emissions annually.  While it is a considerable challenge to make RHUC truly net zero, it is a worthwhile effort.

The committee is looking for more volunteers to help with a variety of tasks from technical to financial. If there are individuals interested in the environment and want to get involved we will find ways to make use of whatever talents they have. Our discussion today is looking at how we might get youth involved in some real activities - like examining energy use of various light bulbs and the most appropriate type per room; then do the actual work to replace bulbs in one or more rooms.

RHUC's Net Zero Committee and

Sustaining Creation Renewable Energy Co-operative Inc.

The Net Zero Committee of Richmond Hill UC was established over 3 years ago with the objective of reducing carbon emissions to zero (0) by the end of 2013. After exploring possibilities, the committee produced a concept proposal in Feb 2009 and it was accepted by RHUC’s Council on major thrusts required to meet our objective. This has evolved to include three planks:

1.  An electricity oriented initiative focused primarily on installing a Photo Voltaic System on the church’s roof;

2. 2.  A heating/cooling oriented initiative focused on the use of Geo Thermal Exchange heat pumps; and,
   

3.  Conservation measures to reduce energy consumption but with the same or better level of comfort.

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In May 2009, the Ontario government passed its Green Energy and Green Economy Act radically changing the face of renewable energy generation in this Province. This Act also promotes the concept of Community Power owned by the citizens. To further this end, other Acts were amended to support the Green Energy Act including amending the Co-op Corporation Act to establish ‘Renewable Energy Co-operatives’ as a new type of Co-op.  It seemed logical that the Net Zero Committee follow the government’s lead and investigate how and what a Co-op might mean to further our objectives.

International Principles of Co-operatives

Co-operatives are a very different kind of entity to organize economic activity. Unlike typical businesses that focus on the financial bottom line, co-operatives are primarily set up for a different objective. Financial considerations are only for maintaining the viability of the Co-operative so it can continue to fulfill its main purpose.

The Co-operative movement has spread around the world from its beginnings in England in 1844. In a town called Rochdale, a group of weavers came together to address the terrible conditions they were subjected to and take more control of their lives. From this start, the following seven (7) principles of co-operatives were established:

1.  Voluntary and open membership

2.  Democratic member control

3.  Member economic participation

4.  Autonomy and independence

5.  Education, training, and information

6.  Cooperation among cooperatives

7.  Concern for community

These principles are in total harmony with beliefs of most all faith communities.

The renewable energy Co-ops are restricted in their business to making and selling electricity from renewable energy sources. The exact words in the Act are:

“The business of the Co operative is restricted to:

a.   generating, within the meaning of the Electricity Act, 1998, as amended, electricity produced from one or more sources that are renewable energy sources for the purposes of that Act, and

b.   selling, as a generator within the meaning of that Act, electricity it produces from one or more renewable energy sources.”

Why use the Co-op approach?

It is possible for a faith community to directly fund a Photo Voltaic project. However, these are expensive, typically $100,000 or more in costs. Funds for religious communities are always in short supply. There is always some new cause to help others in need.

The United Church’s General Council and our current moderator have gone on record to set carbon emission reductions as our top moral objective. In the face of such sentiments, then, the questions must revolve around HOW we can achieve these goals.

1.   The Green Energy Act introduced the Feed-in-Tariffs (FIT) permitting a reasonable return on investing in renewable energy projects. Hence, issuing a debenture offering can be used to fund a PV project without any severe hardships on a faith committee or individual members. Such debentures could be issued directly by the church or via a separate Co-op.

2.   Using the Co-op structure is an easy way to separate the financing of a renewable energy system and paybacks to investors from the finances of a congregation.

3.   As an added advantage of a Co-op, the act envisages multiple points of generation. In other words, it is possible for the Co-op to rent roof space from members to install a PV system. Indeed, it is also possible, and anticipated in the larger provincial context, that a Co-op would assemble lands to set up PV or Windmill generation facilities.

4.   There is an added incentive for Co-op based power with the government adding 1 cent per kW-hr generation.

5.   The Co-op provides the mechanism to separate the operations and liability of Power generation from a congregation. Even though volunteers may be used, a separate corporation helps to keep accounts clean and distinct.

The Sustaining Creation Co-op

RHUC Council directed the Net Zero Committee to setup the Co-operative as a fully open membership, much in the spirit of the 7 co-op principles. It is now possible for individuals of any faith community to join this co-op.

How does it work?

To become a full member of the Co-op, a person 16 years of age or older must complete an application form and, upon acceptance by the Board, pay $100.00 for a membership share. This entitles an individual to full voting rights and participation within the Co-operative.

To actually finance a renewable energy project requires the issuing of a Debenture tied to the project. The debenture is a loan, set up like a mortgage, paying principle and interest annually. The funds are used to pay for the equipment to setup a new renewable energy generation system. The sale of the energy produces the revenue to pay back the investors.

It is possible for a church/congregation to collectively own a share in the co-operative (only one vote per share).

It is also possible for the collective congregation to purchase one or more debentures should it believe that this would be a good long term investment for their funds.

How Can a new Congregation Join in?

Given the structure of the Co-op and the ability to separate individual projects, it is a simple matter for others to join. The following is an example of a workable sequence:

a)   One or more members of the new congregation join the Co-op and indicate their interest in establishing a new generating location.

b)   The governing body of the congregation obtains all the internal approvals required to rent or provide space suitable for a generation system (roof or ground space).

c)   Complete an application form and space use contract with the Co-operative.

d)   The Co-operative will then issue a new debenture series with first preference to members of the joining congregation. Those buying debentures must also become members of the Co-op.

Members of a congregation can follow a similar sequence to become a location provider using their house/property for a renewable energy generation facility.

In all cases, a location provider can purchase some or even all of the debentures in the series issued for their location.

The Co-op will then manage the process of applying for all relevant permits and contracts, issue requests for quotations and choose a suitable contractor to install the system. After installation, the Co-op will manage all funds and ensure that suppliers, investors and location providers receive their respective payments.

For more information contact

Peter M DeVita,

MASc, MBA, P.Eng., FEC,

At: peterdev@rogers.com

Mail to:

Sustaining Creation Co-op

10201 Yonge St.,

Richmond Hill Ontario, L4C 3B2

Web site at:

http://rhuc.org/RHUC_NetZero/About_NetZero.html

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