Startup AppalachiaAccelerating the Entrepreneurial Economies in Appalachia

Project Narrative

Startup Appalachia aims to (1) identify promising efforts that could produce larger results for the economic transition of Central Appalachia, (2) encourage direct organizing by foundations to fund around the most promising work in the region, (3) leverage additional resources to scale projects, and (4) offer funders insight on how to capitalize on the investments they have made to date.

Section I: Project Identification

Project Title: Community-Based Renewable Energy for West Virginia

Identify the name, contact number and email address of the following Startup Actors:

Supportive Coach: Wayne Fawbush, W.Fawbush@fordfoundation.org, (212)573-5000

Nominator: Stefan Jirka, Stefan.jirka@bluemoonfund.org (434) 295 5160 x203

Project Leader: Aaron Sutch, asutch@mountain.org, (304) 413-0112

Section II: To be completed by the Nominator

1. Please provide a short summary of your motivations for funding this project and what you hope to gain out of participating in Startup Appalachia. In central Appalachia and West Virginia in particular there is a noticeable lag in terms of installation and promotion of alternative energy policies and projects. This is no surprise in a state that is dominated by the coal and, increasingly, natural gas industries. Blue moon has supported TMI over the last several years to scope community-based renewable energy projects, particularly landfill gas. Through the course of that work TMI has made inroads in understanding decision-making structures for energy policy at the local and state level. With this in mind, blue moon made a grant to TMI in 2011 to expand its programmatic focus on energy in WV. TMI, with its expanded focus, developed the Community Solar project which represents an innovative approach to promoting renewables and community engagement. If successful it would not only serve as a demonstration of scaled renewable energy technologies but, perhaps more importantly, an educational tool and entrée into broader discussions about WV’s energy future.

My main interest in participating in StartUp Appalachia is to actively collaborate with other funders. In particular, I’m interested to work with USDA, ARC and other government—local, state and/or federal—agencies to

Startup AppalachiaAccelerating the Entrepreneurial Economies in Appalachia

Project Narrativeunderstand how they operate and to leverage blue moon assets towards putting public resources to work for a more sustainable future.

Section III: To be completed by the Project Leader

1. Clarify the short-term and long-term results of the project. In the short term, the project will create a model for investment by individuals in community-based renewable energy projects in West Virginia. Regulatory and legal barriers (federal and state) limit the rapid deployment of locally-based investment opportunities, requiring creative project structures. TMI is networking with successful projects in other states, and will apply lessons learned to establish a working structure that offers investment opportunities in solar energy production that yield a return to investors. Simultaneously, it will document regulatory barriers and work with partner organizations to recommend regulatory reform. With the creation of its first energy production facility, the project will demonstrate solar’s potential to create local jobs, mitigate rising energy costs, and empower communities to generate clean energy. TMI will initiate construction with its funds; as investors join the project, those funds will be repaid, and enter into a revolving fund that will create additional projects in other locations and communities.

Over the long term, highly visible and replicable solar projects will build support for legislation promoting the continuing growth of an economically viable solar sector in West Virginia. Community ownership will be assured by use of the revolving fund.

2. Please provide a detailed description of how this project could be expanded. Local projects would be expanded to a state or regional level using a replicable investment structure and money from a revolving fund to invest in new solar projects. This revolving fund from TMI or its LLC would support the up-front construction and administrative costs of new community-owned projects. Investment from community members who join those projects will return the up-front funds to TMI, and those funds will be applied to future community-owned projects in other locations.

3. What resources are needed to assist in this expansion? To expand this project, resources are needed to pay for professional legal and financial services. Due to the complexity and legal nature of community solar investment structures, expertise is needed to draft legal and financial documents including operating agreements, financial prospectus, subscription agreements, etc. In addition, resources will be necessary to manage and administrate project LLC’s once projects are initiated. This

Startup AppalachiaAccelerating the Entrepreneurial Economies in Appalachia

Project Narrativewould include general accounting for the revolving fund and management of investor information.

4. Please list the specific activities that will lead to this expansion. (Provide a timeline for these activities.) Expansion will be prompted by the finalization of the first community investment model in Morgantown in October of 2012. This project will be used as the model for future expansion into the town of Alderson which will begin its project implementation stage the first quarter of 2013. During the remainder of 2013, both Alderson and Morgantown projects will be heavily promoted via a high profile media and outreach campaign highlighting their replicable ownership structures and benefits to stakeholders. This outreach will be used to solicit other projects and engage prospective stakeholders. Section IV: To be completed by the Nominator and Project Leader

1. How does this project contribute to the economic transition of Central Appalachia? As Central Appalachia transitions away from coal, the increasing deployment of solar energy creates a non-extractive and sustainable economic sector that will benefit local workers and impose minimal social and environmental costs. Solar will fill the economic void of decreasing coal production while creating a more robust and sustainable economic infrastructure in its place. Solar photovoltaic energy (PV) has been found to generate more than twice as many jobs per unit as coal and natural gas. These jobs (which include well-paying positions in construction, administration and product distribution) stay in the community and produce a positive economic multiplier effect.

TMI’s project model will increase deployment of solar in Central Appalachia by allowing communities to have an economic stake in generating cost-effective, clean energy. By addressing up-front cost and other barriers to solar participation, TMI’s project model allows community members to economically benefit from solar projects. These benefits include returns on investments, mitigation of rising energy costs and local job creation in support of solar projects. These local solar projects will build support for legislation promoting the continual growth of an economically-viable solar sector in Central Appalachia.

2. Provide a 1-paragraph summary of your project to share on the Appalachia Funders Network website. The Mountain Institute is developing a community solar project offering individuals the opportunity to invest in, and benefit from, an electricity-producing solar installation. The project aims to create a replicable model for investment and a highly visible structure in which community investors

Startup AppalachiaAccelerating the Entrepreneurial Economies in Appalachia

Project Narrativefinance a portion of the construction costs of a solar photovoltaic system and receive a return on their investment. Our community solar model will help overcome traditional cost and administrative barriers to increased participation in solar energy while empowering communities to benefit economically from the generation of clean, locally-produced energy.

Section V: Conditions for ParticipationDue to the educational nature of this initiative, your participation in Startup Appalachia confirms your willingness to publically share and encourage the use of the ideas and strategies behind your organization’s project.