About twenty of us met in the Plant Kitchen the other day to pulverize the idea of becoming one entity.
For a while now we have been operating as two entities. Piedmont Biofuels Coop, on a bend of the Pittsboro Moncure Road, and Piedmont Biofuels Industrial, on the eastern edge of Pittsboro.
One collects feedstocks from area eateries. One buys feedstock from global commodity markets. One does tours every Sunday the other does tours once a month. One makes four thousand gallons of on spec. fuel a month. The other does that in a day.
To adequately describe the entangled web between the two is high on impossible-or would take an entire book. All we know for sure is that occasionally the two entities find themselves working at cross-purposes. Out of alignment. One hurts the other.
Moya has introduced us all to the concept of “personal BTUs,” which is a unit of energy we all spend talking amongst ourselves. See is a fan of Coop structure. And she is a fan of alignment. As the Grease Goddess on project, she also holds the cards to everybody’s future.
At the heart of “alignment” discussions is the idea that we can stop squandering personal BTUS negotiating with one another, and instead turn that energy to the outside world.
After a month of discussions, passionate arguments, and pulverization, we have decided to join forces. Forget Coop. Forget Industrial. We have elected to enter the future as simply Piedmont Biofuels. We are going to take the personal BTUs saved in the process, and invest them in more meaningful things.
Like the membership. Or is increasing grease collections. Or in eliminating debt. And expenses.
As far as we can tell, we have four constituencies to serve. We need to take care of the members. And the employees. And the investors. And the creditors.
Easy. As long as we have all oars in the water, and as long as we are all pulling in the same direction, everyone can win by becoming one Piedmont.
Members first. We think we can do better here. It appears the universal truth behind Cooperative endeavors is that they line up like a pyramid-or Maslow’s hierarchy. At the base, the overwhelming numbers of members just want biodiesel. They want the B100 Community Trail to be stocked and working, they have never visited our Moncure location, they don’t come to annual meetings, they just want to fill up and drive. They like being free of the petroleum grid.
For them, as we move forward together as one Piedmont, we are going to cut the Trail price back to 3.50 a gallon. That’s a one-dollar drop, and we will make it happen as soon as we can get new signage and the programming done.
The next tier of the triangle of members-smaller and mysterious-is those people who just want to belong. We have long sold memberships to faraway people, and we have never understood why. Why would someone in St. Louis mail in 50.00 a year? We have never understood it, until now. People have been cheering for us, people want to belong to us, and we are going to broaden this part of our member base.
More parties. More member events. More communication. We are going to continue to escort North Carolina into the low carbon future that awaits us, and we are happy to expand as a membership organization. It appears we will be going beyond biodiesel. The Abundance Foundation has agreed to offer a discount on its workshops to Piedmont members. “Belonging” is something we can deliver. Screech is about to erect five new greenhouses. He’ll be looking for volunteers who want to get their head around greenhouse construction.
At the pinnacle of the triangle are those who care deeply about Coop governance, and who run for the board and are fully engaged. That’s us. And we will leave that in tact. Members will elect a Board of Directors who will advise management on how to proceed in the best interest of the membership.
There are a bunch of us who are personally looking forward to interacting with members again.
Next there are the employees. For them we are converting twenty five percent of our stock into an employee equity compensation plan so that we can be employee owned. We will be rolling out option agreements in the next quarter. Preliminary plan is in place, and is modeled in part on the plan done by our friends at Southern Energy Management.
Next there are the investors. On the one hand they have agreed to being diluted, on the other hand they stand to benefit from alignment. They are good.
And finally there are our creditors.
This fusion of organizations will improve our fiscal health. Losses will end. Assets will mop up liabilities. Those activities that cash flow will be nourished to flourish, and those expenses that were holding us back will go away.
No jobs are lost. Momentum is gained. All lenders will continue to get paid, and some stagnant debt will go away. Creditors will love this union.
That bend in the Moncure Road that has long been the home to our small scale biodiesel plant will convert back to farming and human habitation. That will align us with landowners and neighbors and regulators-many of whom have felt our activities were exceeding what the space could metabolize.
In the grand experiment that is Piedmont Biofuels, this isn’t our first circuitous route. Distribution began over here, was transferred over there, and back again, before realizing that really it should have been like “this” in the first place.
Same with education. Started at the College, headed to the Coop, got picked up by Abundance, and back to the College it went. Not bad. Just not linear. My guess is that education will go up a notch by having us all under one roof.
Workforce development is the same way. Many of us believe deeply in the internship program. And it will live on. All current internship commitments are being met as we become one.
I would dearly like to say there are no losers here, but it appears home brewing will incur a setback. That could be a temporary thing (all aspects of our project have endured temporary setbacks in the past), or it could be permanent-based on the passion and the viability of the homebrew enthusiasts. We are open.
Tours will live on-only the tchotche will not have to be toted around. The project will benefit greatly from a unified fleet, with one insurance policy, and a unified payroll, with one health plan for employees. It will enjoy reduced rent, reduced utilities, and reduced taxes.
One Piedmont Biofuels is just a good thing.
I should note that this idea has been perennial. In this iteration it traveled around the project for about a month and a half before reaching consensus. After endless lunches and meetings and emotional discharges we forged agreement with the Coop Board of Directors, Industrial investors, landowners, and employees to put together a picture that creditors would simply love.
Whew. Big job. Feels good. Everyone involved has done lots of work.
I feel like the Zen priest approaching the hot dog wagon on the street corner. When it is my turn to order, I simply ask the vendor to “Make me one with everything.”
While I have tried to make this entry as clear as possible, I’m guessing I have failed to answer all questions from all comers. I’ll be in the Control Room all week, and the fusing of our two organizations is underway now. Email me. Or call me. 919-321-8260 if you would like clarification on any part of this fusion….
Original post by Lyle