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The New Green Energy EconomyThe New Green Energy Economyand Workforce Developmentand Workforce Development

Commissioner Timothy Alan SimonCommissioner Timothy Alan Simon

California Public Utilities CommissionCalifornia Public Utilities Commission

August 7, 2008August 7, 2008

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Commissioner Timothy Simon’s Leadership in Commissioner Timothy Simon’s Leadership in

Green Energy Economy Workforce DevelopmentGreen Energy Economy Workforce Development

The New Green Energy Economy SummitThe New Green Energy Economy Summit

Over 800 participants in San Francisco, including elected officials, Over 800 participants in San Francisco, including elected officials, investors, renewable developers, workforce strategists, educators, faith investors, renewable developers, workforce strategists, educators, faith and community based organizations.and community based organizations.

The California Workforce Advisory Board proposal was spawned out The California Workforce Advisory Board proposal was spawned out of this New Green Energy Economy Summit.of this New Green Energy Economy Summit.

Sponsors included the Willie Brown, Jr. Institute, the Ella Baker Center Sponsors included the Willie Brown, Jr. Institute, the Ella Baker Center for Human Rights, and the Apollo Alliancefor Human Rights, and the Apollo Alliance

Subsequent Summits will be held in New Orleans in November 2008 Subsequent Summits will be held in New Orleans in November 2008 and in Long Beach in February 2009.and in Long Beach in February 2009.

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California Energy Sector Workforce NeedsCalifornia Energy Sector Workforce Needs

Expanding workforce investment needs are being driven by the following:Expanding workforce investment needs are being driven by the following:

Significant utility workforce retirement on the horizon: an estimated 43% Significant utility workforce retirement on the horizon: an estimated 43% will be retirement-eligible over the next five yearswill be retirement-eligible over the next five years

New and increasing energy resource supply needsNew and increasing energy resource supply needs

Transmission and reliability needs to meet load growth projectionsTransmission and reliability needs to meet load growth projections

Climate Change and Assembly Bill (AB) 32 ImplementationClimate Change and Assembly Bill (AB) 32 Implementation

The California Energy Action PlanThe California Energy Action Plan

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The Energy Action PlanThe Energy Action Plan The first Energy Action Plan (EAP) was adopted in 2003 by the CPUC, the CEC, and the California The first Energy Action Plan (EAP) was adopted in 2003 by the CPUC, the CEC, and the California

Power Authority in order to implement a more unified plan for meeting California’s energy needs. Power Authority in order to implement a more unified plan for meeting California’s energy needs.

The EAP II emerged in 2005, which updated the original plan to reflect Climate Change concerns The EAP II emerged in 2005, which updated the original plan to reflect Climate Change concerns and other policy developments. The EAP was again updated in 2008 to incorporate AB 32 goals.and other policy developments. The EAP was again updated in 2008 to incorporate AB 32 goals.

Loading OrderLoading Order: The EAP established a clear set of program priorities as a guideline for energy : The EAP established a clear set of program priorities as a guideline for energy resource procurement:resource procurement:

Energy EfficiencyEnergy Efficiency Demand ResponseDemand Response RenewablesRenewables Electricity adequacy, reliability, and infrastructureElectricity adequacy, reliability, and infrastructure Electricity market structureElectricity market structure Natural gas supplyNatural gas supply

Workforce investment and development is required to help fulfill these priorities and policy goals.Workforce investment and development is required to help fulfill these priorities and policy goals.

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ENERGY ACTION ENERGY ACTION PLANPLAN

Loading OrderLoading Order

DemandDemandResponseResponse Energy EfficiencyEnergy Efficiency RenewablesRenewables

AdvancedAdvancedMetering Metering SmartGridSmartGrid EE StrategiesEE Strategies RPSRPS

California Solar California Solar InitiativeInitiative

InstallationInstallation New ConstructionNew Construction ConstructionConstruction

Technical SupportTechnical Support WeatherizationWeatherization Operations & MaintenanceOperations & Maintenance

ManufacturingManufacturing Other Building CodesOther Building Codes ManufacturingManufacturing

EAP Loading Order, Priority Proceedings, and JobsEAP Loading Order, Priority Proceedings, and Jobs

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Energy Efficiency Goals and Green Collar JobsEnergy Efficiency Goals and Green Collar Jobs

The top priority resource of the CPUC is Energy Efficiency, the least The top priority resource of the CPUC is Energy Efficiency, the least expensive and most reliable resource for meeting procurement needs and expensive and most reliable resource for meeting procurement needs and helping to reduce Greenhouse Gas emissions.helping to reduce Greenhouse Gas emissions.

““Big Bold” Energy Efficiency StrategiesBig Bold” Energy Efficiency Strategies: Though it has yet to be fully : Though it has yet to be fully vetted and adopted, the California Energy Efficiency Strategic Plan vetted and adopted, the California Energy Efficiency Strategic Plan (CEESP) provides a roadmap for achieving long term EE strategies. These (CEESP) provides a roadmap for achieving long term EE strategies. These include a “zero net energy” plan for all new residential construction by include a “zero net energy” plan for all new residential construction by 2020, and for all new commercial construction by 2030.2020, and for all new commercial construction by 2030.

WE&TWE&T: The CEESP also contemplates a Workforce Education and : The CEESP also contemplates a Workforce Education and Training plan for the education sector, including a WE&T Task Force to Training plan for the education sector, including a WE&T Task Force to develop and train people for technical and construction related careers. develop and train people for technical and construction related careers. This proposal will likely be refined.This proposal will likely be refined.

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The Renewable Portfolio Standard (RPS) The Renewable Portfolio Standard (RPS) and Workforce Needsand Workforce Needs

RPS GoalsRPS Goals: To achieve 20% renewable supply by 2010. The feasibility of : To achieve 20% renewable supply by 2010. The feasibility of a 33% RPS is being evaluated.a 33% RPS is being evaluated.

Emerging Renewable Resource Program (ERRP)Emerging Renewable Resource Program (ERRP):: This program, if adopted This program, if adopted by the Commission, will facilitate renewable generation deployment. by the Commission, will facilitate renewable generation deployment.

Wind, solar, biomass, biogas, geothermal, and other renewable projects are Wind, solar, biomass, biogas, geothermal, and other renewable projects are being implemented and more are on the horizon.being implemented and more are on the horizon.

As more eligible renewable resource projects are approved to meet RPS As more eligible renewable resource projects are approved to meet RPS targets,targets, additional workforce will be critical for construction, operation, additional workforce will be critical for construction, operation, and maintenance.and maintenance.

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Current and Future Projects and Current and Future Projects and Potential Green Collar Job GrowthPotential Green Collar Job Growth

Pending before the CPUCPending before the CPUC::

Ruby Pipeline ApplicationRuby Pipeline Application Advanced Metering InfrastructureAdvanced Metering Infrastructure Sunrise PowerlinkSunrise Powerlink Tehachapi Wind FarmTehachapi Wind Farm California Institute for Climate Solutions (CICS)California Institute for Climate Solutions (CICS)

Future possibilities to be exploredFuture possibilities to be explored::

SmartGrid SmartGrid Other transmission projectsOther transmission projects

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The Ripple Effect of Economic Growth and Job NeedsThe Ripple Effect of Economic Growth and Job Needs

As we increase renewable resources in California, the demand for the components As we increase renewable resources in California, the demand for the components that comprise renewable generation will increase, resulting in more green collar that comprise renewable generation will increase, resulting in more green collar manufacturing jobs along the supply chain.manufacturing jobs along the supply chain.

California has a strong manufacturing base for most industries relevant to the California has a strong manufacturing base for most industries relevant to the production of renewable energy components.production of renewable energy components.[1][1] The proliferation of renewable The proliferation of renewable generation supply chain jobs will therefore increase not only as a result of new in-generation supply chain jobs will therefore increase not only as a result of new in-state renewable projects, but also for projects around the country. state renewable projects, but also for projects around the country.

According to the 2006 REPP Report, California then stood to gain approximately According to the 2006 REPP Report, California then stood to gain approximately 95,600 new jobs and $20.9 billion dollars of investment in manufacturing 95,600 new jobs and $20.9 billion dollars of investment in manufacturing components to supply this national development of renewable projects.components to supply this national development of renewable projects. [2][2]

[1] Sterzinger, George and Jerry Stevens, the Renewable Energy Policy Project. “Renewable Energy Sterzinger, George and Jerry Stevens, the Renewable Energy Policy Project. “Renewable Energy Demand: A Case Study of California,” (REPP California Report), at 4.Demand: A Case Study of California,” (REPP California Report), at 4.[2] [2] Id.Id. at 5. at 5.

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Potential Jobs in California in Renewable Generation Potential Jobs in California in Renewable Generation Component Manufacturing Component Manufacturing

Source: Source: “Component Manufacturing: California’s Future in the Renewable Energy Industry”, Renewable Energy Policy Project“Component Manufacturing: California’s Future in the Renewable Energy Industry”, Renewable Energy Policy Project

0

5,000

10,000

15,000

20,000

25,000

Counties

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Biomass

Geothermal

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Top 10 California Counties Investment and Job Estimates in Renewable Energy Component Manufacturing

Top 10 Counties in California for Renewable Manufacturing Investment and Jobs

  Wind Solar Geothermal Biomass Totals

County Millions ($) Jobs Millions ($) Jobs Millions ($) Jobs Millions ($) Jobs Millions ($) Jobs

Santa Clara $623 3,351 $5,139 16,616 $295 993 $108 445 $6,166 21,405

Los Angeles $1,229 7,816 $1,839 8,955 $311 1,413 $270 1,662 $3,648 19,846

San Diego $949 4,352 $781 4,032 $816 2,821 $277 1,125 $2,823 12,330

Orange $712 4,914 $1,230 6,546 $76 445 $89 603 $2,107 12,508

Alameda $282 1,859 $533 2,012 $12 81 $14 95 $840 4,047

San Bernadino $292 1,895 $377 1,770 $22 114 $26 171 $718 3,950

Ventura $174 1,191 $366 1,373 $18 115 $26 186 $584 2,865

San Mateo $33 225 $499 2,234 $0 3 $4 22 $536 2,484

Riverside $151 1,115 $290 1,114 $8 47 $14 89 $462 2,365

Fresno $85 540 $196 880 $40 229 $15 93 $335 1,742

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Concluding RemarksConcluding Remarks

• California is heading in the right direction in its policy endeavors under the guidance of the California is heading in the right direction in its policy endeavors under the guidance of the Energy Action Plan, and has all of the pieces in place to usher in a sustainable and unified Energy Action Plan, and has all of the pieces in place to usher in a sustainable and unified workforce development program.workforce development program.

• California should take a leadership role in cultivating a diverse and skilled workforce in the California should take a leadership role in cultivating a diverse and skilled workforce in the utility sector by adopting a program that can be emulated in other states across the nation. utility sector by adopting a program that can be emulated in other states across the nation. Continued development of the California Workforce Advisory Board or a similar Public Continued development of the California Workforce Advisory Board or a similar Public Purpose Program would be beneficial to all stakeholders and the economy at large.Purpose Program would be beneficial to all stakeholders and the economy at large.

• Workforce development in the new green economy must be brought to the forefront if we Workforce development in the new green economy must be brought to the forefront if we are to bring green collar job opportunities to underserved communities that are most in need are to bring green collar job opportunities to underserved communities that are most in need of economic stimulus. of economic stimulus.

ContactContact::Commissioner Timothy SimonCommissioner Timothy Simon

California Public Utilities CommissionCalifornia Public Utilities Commission505 Van Ness Avenue, Room 5213505 Van Ness Avenue, Room 5213

San Francisco, CA  94102 San Francisco, CA  94102 Telephone: 415-703-1407  Telephone: 415-703-1407