Energy Policy s. Future Energy Jobs. David Rosner Senior Policy Analyst, National Commission on Energy Policy. May 14, 2010

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1 National Commission on Energy Policy s Task Force on America s Future Energy Jobs David Rosner Senior Policy Analyst, National Commission on Energy Policy May 14, 2010

2 About The National Commission on Energy Policy (NCEP) Launched in , the Commission is bipartisan & multisectoral: members with backgrounds in business, gov t t, academia, and labor; NCEPi is a project of the Bipartisan Policy Center, which was founded by four former Senate majority leaders Senators Daschle, Dole,Baker, and Mitchell org 2

3 Agenda This Morning 1. Overview & Motivation of the Task Force on America s Future Energy Jobs. 2. Report Highlights and Key Insights: Moving Beyond Green Jobs: Future Energy Jobs Twin Challenges Facing the Electric Power Sector Analysis Methodology How Many Jobs, What Types of Jobs, and Where? The Energy Sector Work Force Pipeline 3. Policy Recommendations 3

4 Motivation of the Task Force on America s Future Energy Jobs The United States is facing a critical shortage of trained professionals to maintain the existing electric power system and to design, build, and operate the future system This shortage has potential to jeopardize: Reliability and cost effectiveness of current system Ability to transition to a low carbon electricity system 4

5 Three Key Task Force Goals 1. Review the workforce impacts of a major domestic effort to reduce greenhouse gas emissions in power sector. Move beyond anecdotes on green jobs. 2. Examine current labor market and workforce training mechanisms to assess the system s capacity to meet this demand in a timely manner. 3. Develop recommendations to help align the workforce pipeline, or supply, with the anticipated workforce demand. 5

6 Task Force Membership Task Force Participants Industry Labor Education and Training AEP AFL CIO Center of Excellence for Energy Technology, Centralia College (WA) Constellation Energy International Brotherhoodofof Green For All Boilermakers Edison Mission Group IBEW Johns Hopkins University Entergy United Mine Workers JFY Networks Exelon National Grid PG&E Building and Construction Trades (AFL CIO) LA Trade Technical College Portland Community College University of Maryland, Baltimore County (UMBC) Task Force Advisors CEWD, EEI, NEI, U.S. Chamber of Commerce Bechtel Power Corporation Maryland State Superintendent of Schools Staff of EPA and DOE 6

7 Report Highlights and Key Insights

8 Beyond Green Jobs: What Is a Future Energy Job? A future energy job is defined as: All types of jobs that support an energy system consistent with a long term goal of reducing greenhouse gas emissions. Some of these jobs will be new and will require new skill sets. Many more will use skills that are already in demand today, such as those required for sheet metal workers, welders, transmission lineworkers, and electricians. 8

9 Twin Challenges (Opportunities?) Facing the Electric Power Sector Near Term Retirements 30 to 40 percent, or roughly 150,000 of the 400,000 workers employed in the electric power sector are eligible for retirement or will leave the sector in the next 5 years. Replacing these workers is imperative to maintaining the integrity of the current system. Long Term Transition to a Low Carbon Economy De carbonizing the electric power sector will require roughly 150,000 workers to design, construct, and operate the next generation of electric sector infrastructure. Combined, these challenges represent replacement of 80% of the current electric power sector work force 300,000jobs. 9

10 Analysis Methodology The EPRI Prism Scenario The Task Force utilized the EPRI Prism as a scenario to estimate potential workforce demands from building a balanced portfolio of technically feasible technologies for reducing CO 2 emissions to 1990 levels. 2 The Prism includes diverse mix of technologies, including not just energy efficiency i and renewables, but also nuclear power, advanced coal, carbon capture and storage, and plug in hybrid vehicles. 10

11 Analysis Methodology (con t) The Task Force worked with Bechtel Power Corporation, the largest builder of power plants in the United States. Bechtel Power took the EPRI prism scenario and estimated the number of workers required to build new power plants using data from Bechtel builds and bids of actual power plants. Result: work force estimates based on real world data, rather than economic modeling. 11

12 How Many Jobs? Job Type Estimated Work Force Required Year Operations and Maintenance of existing generating assets and transmission lines Design and construction of new low carbon generating assets Operations and maintenance of new low carbon generating assets Design, construction, and operations and maintenance of supporting infrastructure (new transmission lines, smart grid technologies, CO2 pipelines) Near term deployment of energy efficiency technologies and measures 120,000 to 160,000 By ,000 to 189,000 By ,500 to 105,000 By ,000 to 136,000 By ,000 By

13 What Types of Jobs? Design and Construction of Power Plants Design and construction of new power plants will require a wide range of skilled craft labor and technicians. Work Force Demand in 2022 to Design and Construct New Power Plants in the EPRI Prism Construction Job Categories Estimated Work Force Required Electricians 47,800 to 79,600 Pipefitters 16,900 to 28,100 Ironworkers 7,900 to 13,000 Boilermakers 5,200 to 8,700 Millwrights 1,500 to 2,500 Other Skilled Craft/Technicians 33,200 to 56,400 TtlSkill Total Skilled Construction ti Crafts 81,000 to 136,000 13

14 What Types of Jobs? (con t) High Voltage Transmission The ARRA is expected to accelerate the construction of approximately 3,000 miles of high voltage transmission lines by 2012 a near term challenge. 10,100 to 16,400 workers needed by Work Force to Design and Construct, Operate, and Maintain High Voltage Transmission Needed to Support EPRI Prism 14

15 What Types of Jobs? (con t) CO 2 Pipeline Construction Deploying the carbon capture and storage technology in the EPRI Prism will require 7,500 miles of new CO 2 pipelines, and at its peak, will employ 830 to 1,400 workers Work Force to Design and Construct CO2 Pipelines to Support EPRI Prism Carbon Capture and Storage Deployment 15

16 What Types ofjobs: Summary Comparison of Major Sources of Worker Demand to Existing Employment Levels Note: Energy efficiency worker demand are for direct-utility employees. The number of workers employed by third party contractors likely greatly exceeds these levels. 16

17 The Electric Sector Workforce Pipeline 17

18 Policy Recommendations

19 Recommendations Recommendation 1: Evaluate regional training needs and facilitate multi stakeholder energy sector training programs across the country Recommendation 2: Improve energy sector data collection and performance measurement metrics and tools Recommendation 3: Identify training standards and best practices for energy sector jobs 19

20 Recommendations Recommendation 4: Provide funding support for individuals seeking energy sector related training and education Recommendation 5: Aggressively focus on revitalizing the math and science skills, education, and career counseling of individuals who have the interest and skills to work in the energy sector 20

21 Report Download and Contact Information Download the full report and executive summary: For additional information contact: David Rosner Senior Policy Analyst National Commission on Energy Policy g (202)