History

Awakened by the Western U.S. power crisis of 2000-2001 and its effects on the local economy, the Spokane Alliance began to explore a shifting economic landscape to locate alternative employment opportunities for its members. When Kaiser Aluminum locked out United Steelworkers of America from their jobs, the Alliance moved quickly to represent its member groups and secure new employment prospects. The Alliance entered into discussions with the Bonneville Power Administration (BPA) and negotiated a contract for a $1.6 billion project to upgrade transmission lines. Creative incentives from BPA enabled the project to achieve 90% local hiring of contractors, labor, and vendors.

This conversation eventually expanded to include the role of energy efficiency retrofits to meet the economic and environmental challenges of the 21st century. In a proposal to BPA, the Alliance introduced StewardshipWorks, a program designed to lower operating costs of non-profit businesses, protect the environment, and create living wage jobs. Over the next two years, the business plan evolved, but the initial conceptualization was found to be unsustainable. StewardshipWorks’ mission to provide retrofits exclusively to the non-profit sector was not practical because typical non-profits do not utilize their buildings enough to realize extensive energy savings. Ultimately, the cost of the retrofits was more than the price tag of energy efficient new construction.

Due to the social and  economic benefits promised by energy efficiency, the Spokane Alliance began to explore potential partnerships in new construction opportunities. Using the Alliance to Save Energy’s Green Building/Green Learning Campaign recommendations, the Spokane Alliance, church pastors and labor business agents sent a letter to the Spokane Public School District superintendent outlining recommendations: LEED Silver or equivalent standard as a minimum target for construction; 15% apprentice utilization for all construction projects over $1 million; and integrating job shadowing and other learning opportunities for Spokane Public School students. And, an upcoming $164 million Spokane Public School Construction Bond was the perfect place to begin.

The School District showed positive interest in the recommendations, but the apprenticeship utilization was more controversial. Unions had been in conversation with the District for two years without positive outcomes. The Alliance’s interest in apprenticeship was not only the issue of living wages and benefits. It was also to educate those entering the workforce in green building techniques and materials. In December 2003, the Spokane School Board decided to move ahead with the apprentice utilization standard, provided the Alliance could broker a deal between the non-union contractors and union apprenticeship directors. It took four months, but solutions and compromises were found. In June 2004, the School Board unanimously passed a 15% apprenticeship utilization agreement.

During that same period the Alliance had a conversation with Avista Utilities, which serves about 80% of gas and electric customers in Spokane County. Avista told the Alliance representatives about their inability to penetrate the small commercial retrofit market. This opened up a whole new realm of possibilities for a self-sustaining enterprise. In Spokane County there are fewer than 1,000 non-profits, but there are thousands of small businesses often with high building usage rates. The Alliance reworked its business plan to expand beyond the original scope of non-profits. With a new business plan including a vastly expanded market potential, the Alliance gave birth to SustainableWorks.

With the financial assistance of a $280,000 Surdna Foundation grant, the Spokane Alliance began to enact its business plan. A project manager was hired in March 2007 and, at its Action Assembly the next month, the Alliance got commitments from both Avista and building owners interested in retrofits. The Alliance leaders systematically surveyed non-profits and small commercial building owners and secured the commitment of 35 building owners for initial stages of energy efficiency retrofits. Avista agreed to provide free energy audits as specified by SustainableWorks so that energy savings could be maximized.

Because finding upfront capital is a challenge for many small businesses, the Alliance negotiated with two local credit unions to provide more than $500,000 in financing for energy efficiency work. Member institutions shifted savings to those credit unions to expand that loan pool. Members also started a permanent investment in a loan-loss reserve to provide collateral for small businesses that don’t own their own buildings.

Education to retool the workforce and replace those retiring is the highest priority to keep the retrofit process going. In the next 10 years, one-half of the skilled workers will be eligible to retire. To meet the demand, SustainableWorks has provided curriculum and instructors to apprentice programs in the three trades—electricians, plumbers and sheet metal workers—outlining upgrades in energy efficiency skills. The leadership for the Building Trades Apprentice team has come largely from those who received direct entry to apprenticeship from the 2004 Spokane Public Schools agreement.

SustainableWorks created contractor collaborations to coordinate work between the various trades, to decrease expenses, and to shorten the return on investment. They found that teams of skilled workers who consistently worked together were more efficient with their retrofit tasks. They conducted their work knowing which space and sequencing plans would be most effective for everyone. For example, contractors scheduled cranes and other equipment for common, not exclusive use. Through the combination of creatively engaging prospective building owners, cultivating the conditions to accomplish meaningful work, and establishing energy efficiency work training, the Spokane Alliance has built an impressive infrastructure that is ready to expand.