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Gold Circuit E-Cycling Carves Out a Unique Niche

Matt Pronovost

Matt Pronovost says the mission at Gold Circuit E-Cycling is controlled growth.

Matt Pronovost calls it his “museum wall.”
It’s little more than a few wooden shelves in the back of the room cluttered with what could only be described as electronic artifacts, especially if you’re under age 40. There are a few 8-track players in the mix, two movie projectors, a ’60s-era console television (a model that sat on the living room floor), a turntable, an old Atari system, several beta camcorders and transistor radios, and maybe a half-dozen rotary telephones of various colors and shapes.
And then, there are the computers, most with brand names and model numbers that achieved fame (or infamy) but disappeared from the landscape decades ago. A Commodore 64 sits between a Digital UT102 and a Radio Shack TRS-80 Model III microcomputer. All three probably came out of the box 30 years ago, and they certainly look their age.
Pronovost said it takes something really unique to make the wall these days — like the old washboard and basin that came in a few weeks ago — partly due to the fact that he’s just about out of display space. But it’s mostly because he’d rather devote his time to the 99.9% of the stuff that comes in his door that he doesn’t even think about keeping.
This is what Gold Circuit E-Cycling is really all about.
This bin of circuit boards

This bin of circuit boards is one of many crowding the floor at Gold Circuit E-Cycling.

It’s a three-year old enterprise devoted to the recycling of computers and electronic equipment, an intriguing and fast-growing venture now occupying roughly half of one of the dozens of buildings comprising the sprawling Ludlow Mills complex. And it would seem to be the right business in the right place at the right time.
Indeed, as technology advances at a rate so rapid that it seems like a 40-inch flatscreen TV or five-year-old PC might soon be candidates for the museum wall (and there are more than a few of both on the floor waiting to be dismantled and recycled), area business owners and residents are increasingly challenged by the question of what to do with yesterday’s electronics as they acquire tomorrow’s products.
And Gold Circuit was created to provide an answer.
“Increasingly, people are realizing that there’s a solution to their problem, and it’s not the garbage can,” said Pronovost, adding that the business of e-cycling, as it’s called, is not exactly new, but it is picking up steam in the Northeast after migrating from the West Coast (as many trends do) a decade or so ago. “We’re here to help people make the responsible choice when it comes to unwanted electronic equipment.”
This venture, which recorded 25% growth in its first full year in business and will likely double its volume this year, collects or ‘demanufactures’ computers, electronics, batteries, home appliances, lawn equipment, metal furniture, copiers, printers, medical equipment, power tools, tires, fluorescent bulbs, styrofoam, pellet-fuel bags, and more, and sells the parts and material for scrap, thus keeping such items out of the waste stream.
There are charges for some products that are dropped off at the facility — anything with glass or refrigerant, for example, and tires as well — but many items can simply be left free of charge. And the company is making it even easier by staging collection events, such as one held recently at East Longmeadow High School.
Several dozen pieces of equipment arrive at the Gold Circuit facility each day, meaning the company is already essentially at full capacity in a 15,000-square-foot location it moved into just last year after outgrowing its original, 6,000-square-foot home in the Ludlow Mills complex.
When, how, and where the company next expands is a critical question, said Pronovost, adding that at present, the goal — and the challenge — is controlled, smart growth.
“I don’t want to grow too fast because expenses can really take off if you’re not careful,” he explained. “Like any business, we have to stay within ourselves and expand in a smart way.”
For this issue and its focus on green business, we look at a company that is certainly larger than the sum of all those parts amassed on the Gold Circuit floor.

Here’s the Breakdown
As he gave BusinessWest a tour of his facility, Pronovost stopped briefly at the museum wall — he tried, unsuccessfully, to find a date on that washboard — but quickly moved on to several large cardboard boxes, each destined for a vendor that would recycle the material in question and/or extricate the more valuable materials from them.
There was one for clean (as in unpainted) aluminum, a material that will fetch 65 cents a pound, he said, and another for ribbon wire, most of it from PCs. Three boxes contained low-grade, medium-grade, and high-grade circuit boards, respectively, designations that indicate that amount of gold in each one. And there were others for everything from transformers (separated by size) to plastic (one for lighter colors and one for black).
Meanwhile, there was a huge box filled with Styrofoam that was used to keep many of these products safe in their boxes. Sold by the bale, this material has a number of potential future uses, said Pronovost, especially as a composite material used in everything from furniture to picture frames.
How he came to be an expert on the future lives of such materials — and to create a business focused on e-cycling — is an intriguing story based on the most basic principles of entrepreneurship: seeing a need and creating a service to meet it.
“To be honest, I pretty much fell into this,” he explained, while retracing a career that started with work supporting those using computers, not breaking them down into component parts.
He started in what he called the “desktop-support field,” working at MassMutual for a few years before moving to a firm in Connecticut where he handled hardware setup and configuration work, as well as equipment auditing. As that company was repeatedly sold to larger corporations, with each transaction accompanied by a change in equipment, Pronovost segued into resale of the old hardware and, eventually, into selling parts and material for scrap, an operation carried out in-house.
“I had the right background to distinguish whether the parts I was looking at had value outside of scrap — whether they could be wholesaled out or brokered out, whether we tear it down or not tear it down,” he noted, adding that he quickly moved up the ranks within this division. “I made the transition from technician into sales, and was doing well with generating revenue.”
However, the Great Recession changed the equation quickly, he went on, adding that he was one of many to be laid off and forced to settle on a new career path. His was entrepreneurship.
“I decided to do it myself,” he said, with the ‘it’ being e-cycling. “I could see that there was a lot of opportunity, especially here in Western Mass.”
Elaborating, he said that there were, and still are, national outfits that would work with large corporations, such as MassMutual and Aetna, to help them scrap electronic equipment, but such operations historically haven’t had much interest in small businesses or residents. Meanwhile, some communities had collection operations (most of them pricey) at their transfer stations, he went on, but there was a definite void in service to large portions of the local market, and this was the need he set out to address with Gold Circuit.
He opened the doors in October 2010 and started small, handling the bulk of the work, including most of the demanufacturing, himself. Growth, he noted, has come through awareness — of both his company’s services and the need to seek out earth-friendly ways of dealing with yesterday’s electronic devices.

Hard-driving Entrepreneur

Employees at Gold Circuit

Employees at Gold Circuit ‘demanufacture’ a wide array of computers and electronics, with parts and materials sold as scrap.

Using an old laptop as an example, Pronovost said there is a good deal of scrap value in such devices, and his company has become adept at squeezing every cent from them.
“The screen, if it’s unbroken, can be torn down and reused,” he told BusinessWest. “The main [circuit] board probably has the most scrap value in that laptop, but the hard drive comes out to be shredded, and there’s a lithium battery — and right now, lithium is one of those commodities that’s sought after. Everything has scrap value.”
On the day BusinessWest visited the operation, there were several dozen old laptops awaiting their fate. A few of them might actually be sold to resellers if they are in very good condition, said Pronovost, as will the various pieces of equipment — computers, printers, VCRs, phones, air conditioners, toaster ovens, and more — crammed into the 20 or so large boxes on the shop floor.
This is a busy time of year — good weather inspires people to clean out their homes and businesses, apparently — and the floor is crowded with “inventory,” he went on, adding that Gold Circuit currently has several days worth of devices to demanufacture, and more comes in every day.
Pronovost has tweaked his original business plan slightly, but for the most part, the document’s projections for volume, or weight (400,000 pounds of material in 2012), revenue, growth, and employment have been on the money.
They were based on a number of factors, but mostly the incredibly fast pace of progress with computers, cell phones, and other electronic equipment, and the market for used items — or the lack thereof, as the case may be.
Indeed, he said that PCs more than seven years old, and some much younger than that, have little value other than as scrap when their owners decide to upgrade. And the same is largely true for today’s televisions.
“The older ones, those 20 or 25 years old, are still working,” said Pronovost with a laugh. “The newer HD models … they don’t work. And when they break, you generally have to replace them.”
This phenomenon is one of the many factors contributing to the company’s impressive growth rate, he continued, adding that others include everything from a lack of competition locally to strong word-of-mouth referrals, to heightened efforts in recent years to market the company.
But much of it comes down to partnerships, or working with a host of constituencies, from individual communities to area colleges and universities, to encourage responsible disposal of unwanted electronic items.
When the town of Longmeadow opened its new high school, Gold Circuit took roughly 12,000 pounds of old computers and other electronic equipment from the old one free of charge, said Pronovost, adding that another example of such partnership-building was the recent collection drive at Holyoke Community College to benefit a scholarship fund at the school. Participants paid a small fee to organizers to have everything from an old cell phone to a garage-cluttering air conditioner hauled away by Gold Circuit.
Such events are win-win-wins, said Pronovost, noting that the scholarship fund grows, the planet benefits because such items don’t wind up in area landfills, and Gold Circuit gains some invaluable exposure.
Looking ahead, he said the company, which now has four full-time employees, and several part-timers, will continue its efforts to chart steady but controlled growth.

Parting Thoughts
Pronovost said his museum wall often generates interest and conversation.
“People will say, ‘holy smokes, a Commodore 64 — I had one of those back in…,’ and they start adding up in the years,” he said, adding quickly that, while nostalgia is fine, it’s not what this business is all about.
Instead, it’s about meeting a growing need among area businesses and communities, and a desire to do the right thing when it comes to disposing of old equipment, styrofoam, and more.
“People are learning … they’re understanding that you can’t just throw things like this away,” he said, sweeping his hand across the shop floor. “And we’ve become an answer to their problem.”

George O’Brien can be reached at [email protected]

Green Business Sections
‘Going Green’ Investment-tax Credits Have Many Benefits

Kristi Reale, CPA, CVA

Kristi Reale

‘Going green’ is a term that is rapidly gaining momentum in our economy. No longer an ideal for just the early adopters or the environmentally conscientious, going green, or investing in processes, equipment, and energy that are environmentally sustainable, is becoming a distinctive tool for many businesses.
Customers like to see that their products were made in a green environment, prospective employees see energy-efficient and environmentally sustainable workplaces as being preferable to the traditional workplace, and, more than anything, companies are choosing to do business in an environmentally sustainable way — a triple bottom line. And as the trend to go green becomes more and more prevalent in our economy, there is a lot of information suggesting that the fiscal and tax benefits of investing in green energy and equipment are significant. However, these benefits are not always clearly outlined in black and white. It’s important to understand how the credits work and, more importantly, how they apply to you and the investment that you’re planning to make.
Income-tax credits are direct reductions of a taxpayer’s income-tax liability. Generally, the investment-tax credit permits a reduction in tax liability based upon the taxpayer’s qualified investment in certain kinds of property placed in service during the taxable year. Thus, the investment credit is an incentive device, intended to stimulate the purchase or modernization of certain kinds of productive assets. This intent is achieved by permitting the purchaser or constructor of qualified property to reduce their federal income-tax liability by a percentage of the amount they spend for the assets. To this extent, it departs from the concept of a tax imposed on net income.
Form 3468 is used to claim the investment-tax credit. Investment-credit property is any depreciable or amortizable property that qualifies for the rehabilitation credit, energy credit, qualifying advanced coal project credit, qualifying gasification project credit, or qualifying advanced energy project credit. The energy credits are detailed below.
You cannot claim the credit for property that is:
• Used mainly outside the U.S.;
• Used by a governmental unit or foreign person or entity;
• Used by a tax-exempt organization unless the property is mainly used in an unrelated trade or business;
• Used for lodging or in the furnishing of lodging; or
• Property that has been expensed under section 179 accelerated depreciation.

Energy Credits
The business energy credit is either 10% or 30% of the basis of energy property placed in service during the tax year. To qualify as energy property, the property must meet the performance and quality standards that have been prescribed by regulations in effect at the time the property is acquired; be depreciable or amortizable property; be constructed, reconstructed, or erected by the taxpayer; or acquired for original use by the taxpayer.
Energy property that qualifies for the 30% credit is listed at Internal Revenue Code §48(a)(2)(A)(i), such as:
• Solar: the credit is equal to 30% of expenditures with no maximum credit and includes equipment that uses solar energy to generate electricity or heat and cool a structure.
• Fuel cells: the credit is equal to 30% of expenditures with no maximum credit; however, the credit is capped at $1,500 per 0.5 kilowatt of capacity.
• Small wind turbines: the credit is equal to 30% of expenditures with no maximum credit for small wind turbines placed in service after Dec. 31, 2008.
Other energy property qualifies for the 10% credit, such as:
• Geothermal systems: the credit is equal to 10% of expenditures with no maximum credit and includes geothermal equipment and heat pumps used to produce, distribute, or use energy derived from a geothermal deposit.
• Microturbines: the credit is equal to 10% of expenditures with no maximum credit; however, the credit is capped at $200 per kilowatt of capacity.
• Combined heat and power: the credit is equal to 10% of expenditures with no maximum credit, and applies to property placed in service after Oct. 3, 2008.
The basis of the energy property must be reduced by 50% of the energy credit determined. The business energy credit is not allowed for any portion of a property that also qualifies for the rehabilitation credit. Energy property that qualifies for a grant under §1603 of the American Recovery and Reinvestment Act of 2009 is not eligible for the energy credit for the tax year the grant is made or any subsequent tax year.

Renewable-energy Facilities
On Feb. 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009. The purpose of the act was to preserve and create jobs, promote economic recovery, and invest in infrastructure that will provide long-term economic benefits. Provisions in the recovery act allow for irrevocably electing an investment-tax credit under §48 rather than a production tax credit under §45 for specified renewable energy facilities.
These provisions allow the taxpayer to make an election to receive an income-tax credit calculated at 30% of the cost of the qualifying property in the year it is placed in service, as opposed to the production-tax credit claimed over a 10-year period based on the electricity produced.
To qualify, this property must be tangible personal property (not including a building or structural components); constructed, reconstructed, or acquired by a taxpayer; depreciable; and for original use. The taxpayer must make a separate, irrevocable election for each qualified investment-credit facility.

Credit Recapture
Recapture of either all or a portion of the credit applies if, in the first five years, the investment-tax-credit property is disposed of, the use of the property changes so it no longer qualifies, the business use of the property decreases so it no longer qualifies, leased property is returned to the lessor, or the taxpayer receives §1603 grant money for the property.
Some exceptions to the recapture are death of the taxpayer, transfer between spouses in a divorce under §1041, and a mere change in the form of business in which the property is retained as investment-credit property, and the taxpayer retains a substantial interest in the business.
In summary, these credits appear extremely favorable. However, there are limits that apply, such as passive-activity limitations for certain pass-thru entities, basis limitations, and the effect of alternative minimum taxes.
Before embarking on projects based solely on the benefits of credits, you should consult your tax advisor. n

Kristi A. Reale, CPA, CVA is a senior manager with the Holyoke-based public accounting firm Meyers Brothers Kalicka, P.C.; (413) 322-3533; [email protected]

Green Business Sections
Recent Developments Spur New Solar-energy Projects In Massachusetts

Nicholas Lata

Nicholas Lata

Massachusetts has experienced rapid growth in its solar-energy sector in recent years.  The total capacity generated by solar energy in Massachusetts has doubled in the last two years, reaching 105 megawatts (enough to power more than 15,000 homes) in 2012, a figure that is forecasted to quadruple by 2020.
Massachusetts’ renewable-energy sector now employs more than 64,000 people statewide (including nearly 10,000 in Western Mass.) and is projected to grow 15% per year. Massachusetts is now considered to be one of the best states in the country for solar development, a phenomenon driven largely by the state’s numerous initiatives to promote clean, renewable energy.
What follows is a rundown of these incentives and other issues involved with the development of solar-energy projects.

Massachusetts Incentives
The Massachusetts solar market is driven by a statutory requirement for utility companies to generate a percentage (7% in 2012) of their electricity from renewable sources. This figure is scheduled to rise 1% per year until 2030, when it will reach 25%.
Utility companies that fail to generate sufficient electricity from renewable sources are required to pay a fine equal to $600 per Megawatt hour (MWh) the utility company falls below the requirement. In lieu of paying this fine, utility companies may purchase solar renewable energy credits (SRECs) from solar developers. Eligible solar developers receive one SREC for every MWh of electricity generated. Solar developers seeking to earn SRECs must apply through the Mass. Department of Energy Resources, and certain restrictions apply.
In 2011, solar developers produced only one-third of the 78,577 SRECs demanded by utility companies. As a result, there was a ready market for SRECs, which traded at approximately $550 per credit. The proliferation of solar development caused the supply of SRECs to exceed demand in 2012. In response, most solar developers have begun entering into futures contracts with utility companies, assigning all SRECs earned in the future for approximately $200 to $250 per SREC.
Finally, for projects that produce more electricity than is consumed on site, Massachusetts provides two options for solar developers to market excess electricity. The first is simply to sell the excess electricity to the local utility at the ‘dump rate’ (about $0.035 cents per kilowatt hour, or kWh). The second is to apply for net metering with the state Department of Public Utilities (DPU). Net metering entitles the solar developer to sell the electricity at a slight discount below the market rate to electricity consumers, typically at a slight discount below the market rate, which is usually $0.12 to $0.15 per kWh for commercial consumers.
A recent DPU order added a few wrinkles to the process for qualifying for net metering, particularly where the property being developed consists of multiple parcels of land.

Federal Incentives
The federal government allows an investment-tax credit equal to 30% of the investment in qualifying solar-energy property. Combined with accelerated cost-recovery rules under the tax code applicable to solar-energy property, this may allow solar developers to operate tax-free for many years.
The issue for many solar developers is that they do not have sufficient income to monetize the full value of the credits and deductions. Many solar developers have sought to bring in outside investors with greater ‘tax appetites,’ which has led to the formation of joint ventures and other arrangements.

Development Issues
On its face, Massachusetts law exempts solar-energy systems from local property taxes. Recently, however, several bills have proposed carving large-scale commercial systems out of the exemption, particularly ground-mounted systems. Although none of the bills passed, the state Department of Revenue has taken the position that systems are exempt only if all of the electricity is used on site.
In response, many developers have either sought properties occupied by businesses with great energy needs (i.e. manufacturers) or negotiated payment-in-lieu-of-taxes (PILOT) agreements with towns in order to fix payments over the lives of projects. In addition, landowners selling or leasing land which is currently taxed as agricultural or forest property to solar developers may be subject to conveyance taxes, rollback taxes, and a town right of first refusal.
Meanwhile, Massachusetts law prevents towns from passing zoning bylaws that preclude the installation of solar-energy systems. Initially, developers interpreted this law to provide as-of-right siting for solar projects, which would allow projects to progress without the issuance of special permits.
Nevertheless, most towns have interpreted the as-of-right siting to apply only to small, roof-mounted systems, and have passed zoning bylaws that restrict the installation of larger, ground-mounted systems (especially systems exceeding 250 kW). Even where a friendly bylaw is in place, the permitting phase for large-scale projects generally takes at least six months.  Robinson Donovan is currently assisting a national solar developer in the development of a proposed 14-MW solar-energy system on 160 acres of land in Monson.

Project Economics
In general, the cost of installing a solar-energy system is based on its energy-generating capacity, ranging from under $3 per watt for large-scale commercial systems to as much as $6 per watt for smaller residential systems. Although the amount of electricity generated by solar-energy systems is relatively low compared to the investment required, projects can be profitable when incentives are taken into consideration.
When SREC values were at peak levels in 2011, solar projects frequently had rates of return in the range of four to six years. Returns have declined to where rates of return in the range of seven to nine years have become more realistic. Returns may be substantially lower for projects which fail to qualify for SRECs and/or net metering, as described above.
Nevertheless, with the Bay State’s commitment to renewable energy, it is likely that solar incentives are here to stay. Furthermore, advancements in solar-energy technology are simultaneously reducing costs and creating new applications.

Nicholas Lata is an associate with the Springfield-based law firm Robinson Donovan. He has been involved with several projects involving solar power; [email protected]; www.robinson-donovan.com

Green Business Sections
Scuderi Group Continues to Seek Its Next Breakthrough

A prototype of the Scuderi split-cycle engine.

A prototype of the Scuderi split-cycle engine.

Changing the world isn’t easy. But the Scuderi family never expected that it would be.

“Our biggest hurdle, basically, was getting the engine to work. That took a lot of engineering,” said Bill Wrenn, director of marketing for the Scuderi Group, the West Springfield-based company that has spent the past decade attempting no less than a revolution in energy-efficient automotive technology.

“We first fired it up on June 25, 2009; that’s when we got the prototype up and running for the first time,” Wrenn continued. “And that really was the biggest question leading up to that point: will this work? Well, it not only works, but it has worked a lot better than anyone had thought originally.”

The promise of the Scuderi split-cycle engine, as it’s called, is that it could dramatically increase the efficiency of a machine — the internal-combustion engine — that has been notoriously resistant to such efforts in the more than 130 years since it was invented.

It all began in the mind of Carmelo Scuderi, who developed the concept shortly before he died in 2002. His sons — Sal, Stephen, and Angelo — have spent the years since honing the idea, raising millions of dollars in research funding, and preparing to market the final product. They were aided in building a prototype by Southwest Research Institute in San Antonio, Texas., and have since opened offices in the automotive hotbeds of Germany and Japan, making the Scuderi brand an international presence.

But the amount of hype surrounding the engine has some wondering when it might finally appear in a marketable vehicle. To which Wrinn urges patience, while fully acknowledging the complicated nature of the Scuderis’ efforts.

“Anyone who’s not skeptical about this engine doesn’t understand the complexity of the combustion engine,” he told BusinessWest. “It’s not like trying to build new office furniture and sell it; these are very scientific processes we’re working on.”

But he pooh-poohs any notion that the auto or energy industry has hindered progress on a more energy-efficient machine. “We’ve had no visits from men in dark blue suits telling us to go away,” he said with a laugh. “But the attraction has varied from continent to continent and continues to change.”

 

Change Resistant

The first four-stroke piston engine was developed in 1876, and remains the primary design of engines today. And despite the myriad changes to automotive technology over the past century-plus, the efficiency of this engine design has remained largely unchanged. Specifically, it operates at about 33% efficiency, meaning that only one-third of the energy in each gallon of fuel is used to power the machine, and the rest is lost through friction and heat.

The Scuderi Group believes their model could finally change that equation. They note that the heart of the internal-combustion engine is a piston connected to a crankshaft, moving up and down in a cylinder through the intake, compression, power, and exhaust strokes. In a typical four-stroke cycle engine, power is recovered from the combustion process in these four separate piston strokes within each single cylinder.

The Scuderi split-cycle engine changes the heart of the conventional engine by dividing the four strokes of this cycle over a paired combination of one compression cylinder and one power cylinder. Gas is compressed in the compression cylinder and transferred to the power cylinder through a gas passage.

The gas passage includes a set of uniquely timed valves, which maintain a precharged pressure through all four strokes of the cycle. Shortly after the piston in the power cylinder reaches its top, center position, the gas is quickly transferred to the power cylinder and fired (or combusted) to produce the power stroke.

By splitting the strokes of the cycle over a pair of dedicated compression and power cylinders, the design of each cylinder can be independently optimized to perform the separate tasks of compression and power.

Stephen Scuderi briefs Japanese media about the Scuderi split-cycle engine.

Stephen Scuderi briefs Japanese media about the Scuderi split-cycle engine.

The Scuderis have called the engine “disruptive technology,” meaning it has the potential to shake up an industry. Wrenn said the family has been pleased with the engine’s performance so far.

“To put it in perspective, we’re at the genesis of a new thermodynamic process, a new way of creating combustion that has never been discovered before,” he said. “We’re discovering interesting new facts about the engine’s potential ability to do certain things and how much power it can produce.”

Since the prototype was completed, Wrenn said, “we’ve spent a lot of time collecting statistics and measurements and simulating how the engine would work in typical vehicles. One test took a typical European economy-class vehicle — these are some of the most efficient vehicles in the world — and, with the Scuderi engine, took the car through a typical drive cycle in various driving modes. What we found was, where normally those cars would get 52 miles to the gallon, the Scuderi engine got more than 65. On the emissions side, we emitted 85 grams of CO2 per kilometer, compared to a conventional engine with 104 grams per kilometer.”

Beyond the basic concept, the company is generating additional energy savings from an innovation it calls the air hybrid, in which it stores energy as compressed air during braking and feeds it into the combustion cylinder when the car is accelerating. Electric hybrids also use braking force to store energy, but in a battery, and the Scuderi Group points out that batteries are costly, heavy, and wear out — and are hazardous to dispose of.

Sal Scuderi told the Wall Street Journal recently that the company is getting close to licensing its technology for production, but scoring an automotive customer is challenging. “You can’t beat [incumbent engine designs] by a little bit. You have to beat them by a lot.”

The test Wrenn cited may fall under the ‘little bit’ category, but, “since then, the data has gotten even better,” he told BusinessWest. “Since then, we’ve made tweaks on our valve systems, and we’ve found that we can manipulate it even more, increasing power and also bringing down fuel combustion. That has been an extremely exciting discovery.”

 

The Next Phase

Wrenn said the Scuderi family is fond of the quote often attributed to Mahatma Gandhi: “first they ignore you, then they ridicule you, then they fight you, then you win.”

“We’re definitely going through those stages right now, and we’re turning a corner where it’s becoming more accepted,” he said. “It’s been really interesting.”

For example, “our engine has applications in other industries,” he noted. “I think everyone has associated us with the automotive industry. Yes, it’s a car engine, but we are now being looked at as a solution not just for automotive applications, but power generators, compressed-air energy-storage solutions, and distributed power.”

He said the Scuderi Group has negotiated with multiple manufacturers in more than one industry and could be close to a licensing deal, although he could share no details yet. But he said the confidence of the family in their father’s dream has never wavered.

“As new discoveries have created new opportunities for success, we’re even more excited about it,” Wrenn said, adding that one of the most intriguing parts of the process has been opening up the concept to engineers of all stripes.

“The family chose long ago to begin to promote the technology, but at the same time it’s being developed, we wanted to bring the engineering community along for the ride,” he explained. “We’ve always known that, once the engine starts to get worked on by the greater engineering community around the globe, they’re going to discover a few new things and make it better. We think that’s fascinating and a great thing.”

In other words, the biggest news with the Scuderi split-cycle engine is still a ways down the highway — and this globetrotting family is enjoying the ride.

 

Joseph Bednar can be reached at [email protected]

 

Green Business Sections
PeoplesBank Branch Achieves Gold Status for Green Design

The branch pre-treats stormwater runoff

The branch pre-treats stormwater runoff with a landscaped and vegetated rain garden, so that about 80% of suspended solids in the water are removed on site before entering the stormwater system.

In the world of banking, the terms green, silver, and gold have always signified wealth. But locally PeoplesBank is changing that perception — and President Doug Bowen says the institution, and its customers, are richer for it.

Peoples made news in 2011 when its new branch on St. James Avenue in Springfield received Silver certification from Leadership in Energy and Environmental Design (LEED), a program of the U.S. Green Building Council that promotes energy-efficient and ecologically friendly construction across the country.

This summer, PeoplesBank exceeded that benchmark with its new branch on Memorial Avenue in West Springfield, to which LEED has awarded Gold certification, only the second community-bank branch in Massachusetts to achieve that status. Bowen says it won’t be the last.

“For years, PeoplesBank has been supporting the community in a variety of ways. That’s what community banks do,” Bowen said. “We have taken that thought — supporting the community — and extended it to the environment.

“These green branches, built in a very responsible way, are a natural progression for us,” he added, noting that customers have been receptive to a host of environmentally conscious efforts — including the bank’s financing of more than $50 million in wind, hydroelectric, and solar-energy projects throughout the region.

“They’re a key part of why we do this. It’s a value that’s important to our customers, and whenever we can, as a company, we try to align our corporate values with those of our customers, community, and employees.”

 

On Point

LEED operates on a system of points, which developers amass with each ‘green’ feature implemented in a building project. Among the amenities at the new PeoplesBank branch in West Springfield are:

• A healthy interior space that utilizes low-VOC paints, coatings, adhesives, sealants, furniture and carpets. VOC stands for volatile organic compounds, which can be unhealthy to breathe in;

• Improved indoor air quality using high-efficiency air filters and dedicated room exhaust systems;

• Cool-roof materials that reduce the amount of solar heat absorbed and radiated back into the environment;

• Increased natural daylight in the building, reducing the need for interior lighting;

• Installation of recycling bins for metal, plastic, glass, paper, and cardboard;

• Drought-resistant landscaping and irrigation systems to reduce water consumption;

• Systems that reduce clean-water usage by more than 44%;

• Energy-saving HVAC and lighting systems; and

• More than one-third of all building materials were extracted, harvested, recovered, or manufactured within 500 miles of the project site, reducing the need for fossil-fuel-consuming transportation.

The building also scored points for replacing an existing structure, rather than using undeveloped land, Bowen explained.

“West Springfield is not a new construction,” he said. “We used the footprint of a building which had been at that location, and when you reuse land, reuse an existing property, you’re keeping waste and demolition material from landfills. In fact, we recycled 95% the [demolition] material that was there. By reusing materials and recycling, it certainly reduces the impact on the landfill, and that gets greater credit in the LEED process.”

Because the building operates more efficiently than a conventional bank branch, the improvements will pay off over time in cost savings. That’s true of the St. James Avenue site as well, but the West Springfield site went beyond that first LEED project in other ways, contributing to its Gold status.

“Here, we’ve got a rain garden that collects water runoff, and we’ve got drought-resistant landscaping. Those were two features not fully implemented with St. James Avenue,” Bowen said. “And then we’ve got the usual high-efficiency water, and we’ve made strategic use of lighting, which reduces utility costs. And the low-emitting paint is also a green element — all these things make buildings better and healthier for people to work in.”

 

LEED by Example

Ludmilla Pavlova-Gillham, chair of U.S. Green Building Council, Massachusetts Chapter, West Branch, noted that PeoplesBank is in many ways a community organization with responsibilities in its cities and towns. “It is a bank that supports local investment is already tied to the community in a big way. So when then choose to do something better, everyone benefits.”

The bank’s environmental investments have far-reaching effects, Bowen said. For instance, the hydroelectric power generation financed by Peoples will help supply energy to the Massachusetts Green High Performance Computing Center in Holyoke.

“We want to bring that care for the environment into our core banking activities,” he told BusinessWest, and so the green branches are an expression of that.”

Expect such branches to become the norm, too, as PeoplesBank expands. It has already broken ground on a new branch in Northampton which will seek LEED certification, and another to follow in Wilbraham will do the same.

“We’re committed to building all our branches green” going forward, Bowen said. In addition, the bank is installing electric car charging stations at its West Springfield and Northampton locations, as well as its corporate headquarters in Holyoke — reflecting what the president calls a green-centric culture throughout the company.

“We have an active environmental committee that runs an Earth Day Fair every year, in addition to many other activities, to keep us focused on being green at home and work,” he said.

“Being green and doing business in an environmentally friendly way and supporting energy efficiency and community efforts that accomplish these same efforts — that’s all part of our values. That’s where our passion lies, and it’s that passion that makes PeoplesBank unique.”

Joseph Bednar can be reached at [email protected]

Green Business Sections
Initiatives Strive for Success Far Beyond the Classroom

Bill Woolridge

Bill Woolridge says the management curriculum at UMass has become more attuned to green issues.

As the chief coordinator of Greenfield Community College’s Renewable Energy/ Energy Efficiency Program, Teresa Jones told BusinessWest that these are exciting times to be in higher education.
Speaking to the ‘community’ component of her school, where she is also an associate professor, Jones said that “our economy in Greenfield and the surrounding area is a step ahead of many other areas with regard to sustainability and green thinking.
“But as an educator,” she continued, “I think the question I always go back to is, how does a community college contribute to job growth and economic development?”
GCC is one of the Pioneer Valley’s green beacons in developing student programs that strive for a role not just in the evolving green economy, but also in the much-needed pragmatism of job creation.
UMass Amherst has embraced sustainability on all levels, from the administration to the student body. The university has set a goal to become carbon-neutral by the year 2050, and over the last decade has reduced greenhouse-gas emissions by 30%. Within the academic departments, a notable example is the Green Building program in the Department of Environmental Conservation, which has been actively involved with students and the region’s construction sector.
At the Isenberg School of Management, Bill Woolridge is the chair of the Management Department, and he told BusinessWest how the class he teaches has evolved over the years to become more attuned to the changing priorities of green consciousness.
He carefully stressed the Amherst campus’s thorough approach to sustainability. But his department is aware of what he called “the bigger picture.”
“In most schools’ management curriculum,” he explained, “there’s that course that speaks to the role of business in the broader social environment.
“I hadn’t taught that in quite a while,” he went on, “and about six years ago decided that I would. As I started to become reacquainted with that material, I realized that addressing sustainable issues is really the challenge of the current generation of students.”
Keith Hensley

Keith Hensley says green-business programs, at their most effective, will drive job opportunities in the regional economy.

The area’s ivory towers don’t envision a role in a green economy that is relegated only to the classroom, however. At Holyoke Community College, Keith Hensley is the executive director of Workforce and Economic Development, and he has designs on nothing short of transformative educational roles for both the school and its students.
HCC has partnered with two organizations to broaden the school’s certificate and training programs within a green economy — with both real-time results for jobs in the marketplace and opportunities for businesses to embrace sustainable practices that also help the bottom line.
For this article, BusinessWest asked people within these schools to explain their own green report cards. Jones was speaking of her own school specifically, but could just as easily been including the goals of her colleagues at other colleges, when she noted that “GCC, above all, serves as a convener for the community. We bring together diverse interests, talents, energies, concerns, ideas, and insights.” It’s that type of thinking that’s making this green curriculum as successful in the job market as it is in the classroom.

Certifiably Green
Hensley said that HCC’s current roster of green programs took root a few years back.
“About two years ago, we partnered with the Hampden County Regional Employment Board,” he explained. “They had applied for a workforce grant from the state for energy conservation — for certain types of training, such as weatherization and insulation, solar-boiler technician training, and energy-auditor training.”
The projected outcomes for the grant were job placements, he said. While the school charted the most success of any institution in the Commonwealth also receiving those funds, “it still wasn’t as much as I would have liked to see.
“What that told us, when everything shook out, is that there currently are not enough jobs in those particular occupations in the state,” he said. “And what we did was take a look at the entire sustainable, energy-efficiency, renewable-energy field as it stands right now, and we homed in on a few things.”
The Green Communities Program, from the state’s Department of Energy and Environmental Affairs, strives for signatory cities and towns to reduce their overall carbon footprint. Among 72 others, Holyoke and Springfield have signed on. Hensley cited that legislation, as well as an overall environmentally minded population in the Pioneer Valley, as two factors in HCC’s redesign of its green programming.
“And we also looked at the economy as it stands right now,” he said. “Unlike other parts of the country, our manufacturing base is still there. So, with decreased product demand that comes from a bad economy, it’s pushing manufacturing employers to think innovatively, figure out how they can cut costs.”
To meet these needs, HCC has forged partnerships with two organizations: HospitalityGreen LLC, a New York-based consulting firm, and the Energy Conservation Training Co., which specializes in numerous aspects of professional training and certification.
With HospitalityGreen, there are four short yet intensive courses: “Green Facilities Training for Managers,” “Introduction to Green Purchasing,” “Getting to Sustainability Through Changes in Waste Contracting,” and a “Green Custodial and Janitorial” course.
“Participants get a ton of online tools when they go back to their own facilities,” Hensley added. “And we also advise them on how to approach owners and managers of the company, to get their suggestions through.”
Also with HospitalityGreen are two full-day classes for the restaurant and hospitality industries. A core of information will tell participants what it means to be green, and how sustainability affects business.
“The attendees from the companies will get a few days of training, and they go back out to their employers and start doing their audit,” he said. “The bottom line here is to save the businesses money, but also to get a designation as a green restaurant or a green hotel. That has huge implications, especially in this area, where people are environmentally conscious.”
With ECONTC, Holyoke Community College has implemented a series of courses for the building trades. Using metrics set by the Building Performance Institute, a national organization for energy-efficient standards, the classes include “BPI Building Analyst/Envelope Training,” “BPI Heating Professional Training and Certification,” and “Residential Energy Services Network and Home Energy Rating Systems Rater Training and Certification.”
“For all this new programming,” Hensley said, “our mission is twofold. It’s to help companies save money, or make more money, in the case of green-lodging and green-restaurant certification. We expect that those companies who get certified will get more business. And on the other hand, it’s to help companies and homeowners who will be impacted by these trained people, to be included in what it means to be a green community in this region.”

Talkin’ ’bout an Evolution
Back in the 1970s, Woolridge said, when he was the age of his students now, environmental issues were an academic niche in business schools.
“We would talk about EPA rules and so forth,” he said. “It was seen as a compliance issue — an obligation. One of the costs of doing business was to adhere to these government strictures. But that has all moved to the front burner. It’s something we can’t put off anymore.”
Meanwhile, the class he has been teaching is constantly evolving. “The way I teach the course, and the way many others around the country do, is that it’s more an opportunity than an obligation,” he explained. “This is a challenge for this generation and the next generation of business leaders as to what is going to fuel economic growth over the next decades — solving our social and environmental problems on a global scale.”
When asked the name of the class, Woolridge laughed. “Even that’s in flux. It has officially this year been called ‘Social Responsibility and Sustainability.’ This semester on the syllabus, I’m tweaking it, though, looking for the right label. Some of us are calling this ‘Sustainable Enterprise.’
“It has some historic analysis,” he explained, “but it has more of what I would call an examination of sustainable business practices. We use something known as the Socrates database that has 2,500 large businesses profiled, and they have done pretty comprehensive analysis in many areas, particularly with regard to the natural environment, social issues, their governing structures, and so forth. So we look there to get a sense of how industries are doing, relative to these dimensions, and how specific businesses within those industries are doing.
The other important component in the class is to identify the business opportunities presented by these challenges, he added. “This is the challenge for the next generation of business leaders.”
Ideally, Woolridge envisions a certificate program in the undergraduate Business school for Sustainable Practices. “Fairly soon,” he said. “Maybe at the beginning of the next academic year.”
Add to that a class in social entrepreneurship. “This concept is generally about creating new enterprises to solve social issues. Overall, our goal here is to give students perspective, skills, and, for those students going on to small business or entrepreneurship, a sense of the opportunities that do exist.”
UMass Amherst has the critical mass of demand for classes in this field, he said, and a labor market which will support this in future job placements. “It’s impossible to quantify in any real numbers,” he said, “but I know, if we build it, they will come.”

Community Action Plan
An important aspect of GCC’s green classwork translating into actual jobs, Jones said, is that those same employers were part of the original team helping to create the program.
The RE/EE Program at GCC originally started as a $372,000 Workforce Competitive Trust Fund grant, in partnership with the Franklin/Hampshire Regional Employment Board. However, more than 40 regional organizations, from nonprofits to small businesses, also collaborated on the course design for certificate and degree programs.
“The businesses know the program intimately, but also the people that are coming through it,” she explained. “My husband is a small-business owner, and I know for a fact that this is absolutely critical. Here, a business knows who they’re getting, what they know academically, and what their capacities are. A lot of businesses in our area are pretty small, so in the hiring of even one employee, you want to make sure that the match is pretty good.”
Jones cited two examples of substantial outcomes from the GCC program. NorthEast Solar Design Associates in Hatfield started out, she said, with “a really smart husband-and-wife team.” They were one of the businesses involved in developing the school’s curriculum and, in short time, hired students from the program. In the last five years they have expanded to six full-time workers.
“Prior to their involvement here,” Jones said, “they were an established solar company, but not really growing. They are doing major commercial photovoltaic installations. And when in short time you grow to six employees, that is huge growth for a small company. Even though it may be small for some people, this amounts to a massive repositioning of their company.” And the business is expected to hire three more in the near future.
Another key partner with GCC has been the 82-year old Sandri Companies, based in Greenfield. A number of GCC students have gone on to work for Sandri, and Jones cited the company as an example of keeping up with the changing face of a traditional industry.
“They are adding whole new divisions to their enterprise, from wood-pellet burners, weatherization, and solar to energy audits,” Jones explained. “When a company of their size looks into the future to determine how they will continue to stay relevant, this is how you do it. You bring people into your company who know these technologies. You don’t just pay lip service, but get people who can manage these technologies and continue to expand your market.”
And that same logic, she said, applies to her department at GCC. “As we head into the future, it’s a much broader market than I think anyone could have thought.”
Expanding on the role her school plays in the realm of sustainable practices and green initiatives, Jones gives GCC good marks. But the work continues to evolve, and to stay successful and viable in the unfolding green economy, schools need to be as responsive as the business community.
“We listen for where there are places we might contribute directly, for ways that our faculty, staff, and administration can catalyze the creative and entrepreneurial energy that resides in our region,” she said. “Our program is a reflection of that vibrant energy, and continues to respond and change with the rapidly emerging green industries of the 21st century.”

Green Business Sections
In Its New Home, EcoBuilding Bargains Models Its Mission

For the past decade, the ReStore has been an increasingly popular source of recycled building materials, saving money for professional contractors and do-it-yourselfers alike, all while easing the burden on landfills. The store, now renamed EcoBuilding Bargains, has outgrown that space and will soon move into a much larger building nearby. And the way that structure is being renovated provides an effective case study in the value of green construction and energy efficiency.

John Majercak wants to lead by example.
And when EcoBuilding Bargains — formerly the ReStore — opens its vastly expanded retail center in Springfield later this fall, he’ll have the ideal showcase to demonstrate how homeowners and contractors can make profitable use of recycled materials and save money through energy efficiency.
Because that’s how the new store is being built.

The building in question — a century-old structure on Warwick Street that was originally home to the National Biscuit Co., then Steiger’s, and most recently a warehouse for Kavanagh Furniture — is being expanded and renovated from top to bottom, eventually tripling the retail space of the ReStore’s original Albany Street site and quadrupling its total area.
“When we purchased this property,” said Majercak, executive director of the Center for EcoTechnology in Northampton, which operates EcoBuilding Bargains, “we undertook an environmental remediation process. It was built at a time when energy costs were not a big deal, but were an afterthought. Now, it’s a modern building that’s going to use, by the time we’re done, about a third of the energy a building this size would normally use.”
That feat will be accomplished with an array of improvements — encompassing roofing and siding materials, insulation, and the systems that heat, cool, and illuminate the space — that promote cost savings through energy efficiency. Those strategies, combined with the copious use of recycled materials throughout the building, effectively turn it into an educational model of the store’s very mission.
At the Center for EcoTechnology, a 65-employee, 35-year-old nonprofit that provides practical solutions for going green at home and work, “our motto is, ‘we make green make sense,’” Majercak said. “And this is one example of that. By lowering our own operating costs and teaching people who come through here why we made these green improvements — and what they can do in their own homes — we’ve made this a teaching store as well.”

Do It Yourself

John Majercak

John Majercak says the store will be lined with cutting-edge insulated panels that seal in air, one of many facets of the building’s energy retrofit.

In the decade since it opened, the ReStore — which, at its core, trades in recycled building materials, with the twin goals of saving contractors and do-it-yourselfers money and reducing the burden on landfills — has become increasingly popular, to the point where it has outgrown its space on Albany Street.
“The store sells low-cost building materials so people can fix up their homes,” Majercak said. “We get all kinds of stuff from other people’s homes and remodeling jobs; they donate it or hire us as a contractor to do the deconstruction ourselves.
“Over the years, we’ve just seen an incessant demand for what we do,” he continued. “Our store is now so stuffed, you can barely walk through. We know we can serve more people in a bigger facility and do more of our mission. Customers are going to be much better served by this building, which will have more parking and wider aisles. And with a new, computerized inventory system, we know what we have; it’s much easier for the customers and donors who work with us.”
The efficiency improvements — part of a $900,000 energy retrofit, a significant portion of the total $3.1 million project cost — begin on the exterior of the building, including a white roof to deflect heat and insulated panels lining the building that interlock in a way that seals out all air leakage. EcoBuilding Bargains will also “superinsulate” its roof, Majercak explained, using insulation donated from MassMutual when that company installed a solar array on its roof.
“They took their old insulation off because they needed to use a different system, but it’s fine, and they donated that to us, saving us at least $40,000 in insulation costs, and it’s helping us save a lot of energy,” he said. “There are all kinds of different details that all tie together to make the building really well-insulated.”
In addition, the 3 million-BTU, oil-fired boiler in the basement is being replaced with a 500,000-BTU gas unit, while infrared tube heaters located throughout the structure will heat building occupants but not the air.
“Say you’re in the sun, with the radiant heat — that’s what this feels like, the sun hitting you,” Majercak said. “For a big, open space, it’s very efficient because it allows the air temperature to be lower even though you feel comfortable. And in the offices, we’re using heat pumps to take advantage of the difference between outside and inside air.”
That model of efficiency extends to lighting as well; much of the store will feature sensor-controlled lights that maintain a low level when no one is around them, but become brighter when someone walks in. “That saves energy, too,” Majercak said.
In addition, “we’re using reused materials everywhere — we reused timbers, sliding glass door panels, the flooring is recycled … these are all examples of reuse, and that’s what we’re all about.”
The goal, besides reducing costs while greatly expanding floor space, is to demonstrate the types of changes people who visit the store can make in their own homes.
“It’s been a lot of fun, actually,” Majercak said. “We can walk around and talk to people and show them it is possible, and there are benefits to it. We use household examples, too — no one uses infrared tube heaters, but for homeowners, we have workshops and examples of products they can use in their homes, as opposed to stuff used at the commercial level.”

Dollars and Sense
The simple fact that the ReStore needed a new home testifies to the growing popularity of its ‘reduce, reuse, recycle’ model.
“People who shop here do so because of the great deals, or they believe in the mission of keeping stuff out of landfills, or both,” Majercak said. “When we opened this up 10 years ago, there were maybe a dozen or two stores like it in the country. There are about 800 now, and we have our own association; I’m on the board of it.
“It just makes sense on so many levels,” he continued. “People — we Yankees, especially — are frugal and don’t want to throw something out if someone else wants to use it, but they also don’t want it sitting around their basement, either. What’s caught on is the whole concept of going green and the fact that there are societal benefits to doing those things. That’s exciting to me because, at the Center for EcoTechnology, we have a host of green services we can offer people, and now we can showcase them and tell people about them using this facility.”
Majercak expects the business to continue to grow, both through public awareness of the store and in its deconstruction efforts, which have “really taken off” in recent years.
“We’ve worked with Kent Pecoy, R.J. Chapdelaine, Dan Roulier, and some the other big builders around the area. They’ve used us for deconstruction, and we’re working throughout Southern New England and New York now, doing jobs,” he told BusinessWest.
“I think it’s something whose time has come. People shouldn’t just crunch up their house and throw it away. That’s catching on, and will be a big source of material for us over the next couple of years.”
EcoBuilding Bargains is reaping more than just new business, however. About one-third of the $3.1 million building rehabilitation is being funded by a capital campaign, while another third has come in the form of a low-cost mortgage from Westfield Bank; government funding covers a little less than one-third as well.
“The amount of support we’ve gotten to do this project is pretty phenomenal,” Majercak said. “We’ve always tried to operate this store as a self-sufficient nonprofit, so we can cover our costs through the revenue we generate.”
In addition to the capital-campaign support, “a number of businesses have contributed monetary resources or products or in-kind services — lawyers, architects, all kinds of vendors,” he noted. “All the gas pipe was donated from local pipe suppliers. People have been very kind and very supportive.
“When we knew we were going to expand,” he continued, “we chose purposely to stay in Springfield because this is our target market, and it’s also mission-consistent to fix up an older building — but also because we have such great support from the community, the government, and residents. It’s just a great place to do business.”

Joseph Bednar can be reached at [email protected]