Growing Green Jobs in the Construction Sector

Growing Green Jobs in the Construction Sector July 19, 2008 Downtown Labor Center Los Angeles, California Renewable Energy & Energy Efficiency Economic Drivers for the 21st Century Roger Bezdek, Principal Investigator, Management Information Services, Inc. for the American Solar Energy Society Used with permission of the American Solar Energy Society, www.ases.org, copyright © 2007 American Solar Energy Society (ASES) All rights reserved. Definition of the RE&EE Industry • Finding: Vast majority of the jobs created by RE&EE are standard jobs for tradesmen, accountants, engineers, computer analysts, clerks, factory workers, truck drivers, mechanics, etc. • Definition used: the RE&EE industry encompasses all aspects of renewable energy and energy efficiency, and includes both the direct and indirect jobs created in both sectors. The Study’s Most Striking Findings • The size of these industries • Broad economic benefits that could accrue if regulators and policymakers support aggressive growth in these sectors. • In 2006, more than 8 million Americans worked in these industries • RE&EE generated $933 billion of revenue. RE & EE are Driving Significant Economic Growth in the U. S. • In 2006, these industries generated 8.5 million new jobs • Nearly $970 billion in revenue, more than $100 billion in industry profits, and … • More than $150 billion in increased federal, state, and local government tax revenues. RE&EE Provided Important Stimulus to Slumping U.S. Manufacturing Industry • Displaced imported oil, and helped reduce the U.S. trade deficit • Put into perspective, RE&EE sales outpaced the combined sales of the 3 largest U.S. corporations. • Total sales for Wal-Mart, Exxon-Mobil, and General Motors in 2006 were $905 billion (vs. $970 for RE & EE). “Many RE & EE Jobs Can Not Be Easily Outsourced Offshore” -- -- Summary of the U.S. Renewable Energy and Energy Efficiency Industries in 2006 Industry Renewable Energy Energy Efficiency Revenues (billions) $39.2 $932.6 Direct Jobs 196,000 3,498,000 Total Jobs Created (direct plus indirect) 452,000 8,046,000 TOTAL $971.8 3,694,000 8,498,000 U.S. Renewable Energy and Energy Efficiency Industries in 2030 Revenues (Billions of 2006 Dollars) Total Jobs Created (Direct Plus Indirect) RE EE Moderate Case $227 $2,152 Advanced Case $597 $3,933 Moderate Case Advanced Case 3,138,000 17,825,000 7,918,000 32,180,000 Total $2,379 $4,530 20,963,000 40,103,000 California Renewable Energy and Energy Efficiency Industries in 2030 At 20% of U.S. (PV now at 70%) Revenues (Billions of 2006 Dollars) Total Jobs Created (Direct Plus Indirect) RE EE Total Moderate Case $46B $430B $476B Advanced Case $120B $800B $920B Moderate Case Advanced Case 600,000 3,600,000 4,200,000 1,600,000 6,400,000 8,000,000 Finding: “Renewable energy and energy efficiency reduce the risks associated with fuel price volatility and can facilitate an industrial boom, create millions of jobs, foster new technology, and revitalize the manufacturing sector.” Primary Market Vectors • Cost of Energy • Climate Change • National Security Cost of Energy • • • • • Instability in Middle East Rise of Russia Venezuelan Politics Instability in Africa Booming China and India National Security • 2006: $320 billion to Mideast Oil States • 2007: Half a Trillion $ • $25 million per Hour of American Money Goes to Pay for Foreign Oil Policy Translation • • • • • • City County State Federal International Public and Private California Public Utilities Commission (PUC) Advisory Committee on Energy Efficiency and Training California, a Bell Weather State PUC Policy on Energy Efficiency (“EE”) • EE is CA’s Highest Energy Priority - the Resource of First Choice to meet CA’s growing Energy demand • PUC Directs the IOU’s to achieve market transformation through continual incorporation of EE gains into codes and standards • Use all available regulatory & market based tools. • Employ R&D, Emerging Technologies, codes and standards, public education and marketing, rebates and subsidies, and market transformation Energy Efficiency Policy PUC Goals: ALL New Construction ZERO Net Energy by • 2020 Residential • 2030 Commercial • Optimal EE Performance of HVAC Equipment / Industry • Beginning Implementation in 2008 and 2009 • Agrees with CEC goals of Zero Net E. to be accomplished through CEC building standards Cities Los Angeles, New York, Washington, D.C., San Francisco, Chicago, Philadelphia, and many other cities now require new public buildings to be designed and constructed to LEED standards. New Federal Energy Bill • Sec. 422: Zero-Net-Energy Commercial Buildings Initiative • All New commercial buildings by 2030 • Half of commercial building stock by 2040 • All commercial buildings by 2050. Building Operators & Managers Association (BOMA) • Founded in 1907, the Building Owners and Managers Association (BOMA) is a federation of more than 90 local associations and affiliated organizations. The 19,000plus members own or manage more than 9 Billion square feet of commercial properties • BOMA Goal for 2012: 30% Energy Load Reduction in BOMA Managed Buildings Where Does Solar Energy Fit In? After Reducing Energy Consumption Benefits of Energy Efficiency • Costs 2.5 Cents / KWH (vs. 6 - 8) • No Polluting Power Plants, No Transmission Lines, No NIMBY’s • Required for Solar PV Rebates • Additional Rebates for EE Equipment Total Jobs Created (direct plus indirect) 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Renewable Energy Energy Efficiency Total Economic Translation PV SOLAR Growth of California’s Solar Market 3,000 MW 71 MW 2016 or Earlier 2006 CA MW Installed /Yr. (8 Yrs@46%) 1,000 900 800 700 600 500 400 321 220 684 998 468 300 200 100 - 71 2006 150 103 2007 2008 2009 2010 2011 2012 2013 Projected Growth of California’s Solar Market 40 35 $ in Billions 30 25 20 15 10 5 0 $88 Billion over 8-10 Years 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 Year CA MW Installed /Yr. (8 Yrs@46%) Translating MW into Work Hours • 50 Watts Installed / Hour, or • 20 Hours / kW Installed • 1000 Hours / Installer Year (Weather, Down Time Between Jobs, Permit Delays, Equipment Deliveries, Scheduling with other Trades, and other Typical Construction Delays) CA Total Installers (8 Yrs) How Do We Train That Many Installers That Fast? • Large Labor Pool - 50,000 IBEW Electricians in California, and 700,000 in U.S. • Comprehensive Electrical Skills • Already Certifed to do all Electrical Work • Utilize Existing Educational Institutions and Infrastructure • 26 JATC’s in California, 275 in U.S. Well Trained Electricians • • • • • • Over 8,000 Hours Of Training Classroom Education On The Job Training Continuing Education Safety, Safety, Safety Know National Electrical Code Existing Institutions & Infrastructure • California IBEW Electricians ….….. 50,000 • California JATC’s…………………….….. 24 NJATC Photovoltaic Systems Curriculum • • • • Used by nearly 300 JATCs nationwide Over 1500 Copies in California Already Core Curriculum Nationwide for 2008-9 Numerous JATC instructors attending NJATC Train the Trainer courses • Also extensively used in journeyman upgrade and contractor training programs 35 NJATC Photovoltaic Systems Textbook • 452 pages on the fundamentals, design and installation of PV systems • Emphasis on high quality, safe, code-compliant installations 36 NJATC Photovoltaic Systems Workbook PV Text Book Covers • Solar Radiation • Site Surveys & Planning • PV Systems & Components • PV Cells, Modules & Arrays • Batteries • Charge Controllers • Inverters • • • • • • System Sizing Mechanical Integration Electrical Integration Utility Interconnection Permitting & Inspection Operations & Maintenance • Economic Analysis 38 Plus Advanced PV Training … Advanced PV Technical Training for California IBEW Wireman & Contractor Staff • Built Upon Solid JATC PV Foundation • Latest PV Solar Technology • Latest in PV Equipment • Latest in National Electrical PV Code • Safety, Safety, Safety Advanced PV “Installation” Training for P.M’s, Estimators, Engineers, Sales Staff (and Wireman, too) ~ Hands-On Classes ~ Advanced PV Hands-on Immersion Training • Los Angeles • San Francisco • Sacramento • San Luis Obispo, Santa Barbara, Fresno, Bakersfield, Monterey, Ventura • Riverside / San Bernardino • Santa Rosa • San Jose Example: San Luis Obispo Graduating Class: 185 IBEW PV Installers Tough Critics Rate the … Value of the Training, Overall Value of Training, Overall: 88% California IBEW - NECA Journeyman Advanced PV Training - Original Projected Capacity Site Los Angeles San Francisco Sacramento San Jose San Diego Central CA Times / Year 4 2 2 2 2 2 Per Class 200 100 100 100 100 50? Total / Year 800 200 200 200 200 100? Total Advanced PV Technical Training for 1,800 California IBEW Wireman & Contractor Staff in 12 Months … Advanced PV Training Capacity 2007-2016 Total 17,000 JATC PV Training Capacity (Conservative) 2007-2016, JATC’s Only Total 34,000 PV Installer Training Capacity California, 10 Years • Highest Projected Demand …… 20,000 • JATC Integrated PV Training.…. 34,000 • Plus Advanced Journeyman …...17,000 PV Business Development Contractor Seminars … Putting the Puzzle Pieces Together Engineering Resources Product Supply Marketing & Sales PV Business Development Finance Incentives Liability and Insurance Software PV Business Development Contractor Seminars • • • • Los Angeles San Francisco Sacramento San Luis Obispo, Santa Barbara, Fresno, Bakersfield, Monterey, Ventura Eastern Washington San Jose Riverside / San Bernardino San Diego • • • • PV Business Development Contractor Seminars • 215 Contractor Graduates to Date • Possible Upcoming Seminars - Santa Rosa / Napa - Castroville / Monterey - East Bay . We Have the Opportunity to Position our Industry Now for a Doubly Green Future. NECA Contractors are Responding to the Green Jobs Opportunity. . CSI Electrical Contractors, Inc. • Green Energy Solutions Green/High-Performance Buildings function to reduce energy consumption while simultaneously addressing wider environmental concerns. CSI is at the forefront of Green innovation, and is prepared and capable to develop green energy solutions to fit any budget with a commitment to education, knowledge, and partnership. Alternative Energy Solutions CSI has a wealth of experience in developing and implementing alternative/renewable energy solutions such as solar, wind, and co-gen technologies. Whether the goal is to minimize energy consumption or reduce energy costs, CSI can help you determine which technology best fits your needs, which incentives you can benefit from, and then design and install the system to suit your project and implement all of your alternative energy strategies. • Advanced Lighting & Lighting Renovations Lighting is often the biggest consumer of energy in a building, and CSI has the experience and capabilities to create lighting solutions that minimize energy consumption while maximizing interior comfort. Further, CSI's capabilities include integrating advanced lighting/daylighting controls, utilizing recycled materials, and installing energy efficient fixtures. • LEED Consulting & Strategy CSI is a proud member of the U.S. Green Building Council, and has experienced LEED Accredited Professionals on staff to help guide any green project. Taft Electric Company “We can design, build and install photovoltaic electric power generation systems for all you commercial or industrial needs. Taft Electric is a member of the Solar Energy Industries Association (SEIA)”. Cupertino Electric, Inc. Solar Photovoltaic • AT&T Ball Park | San Francisco, CA Owner | PG&E • Berlex | Richmond, CA General Contractor | EI Solutions • Cypress Semiconductor Photovoltaic | San Jose, CA Owner | Cypress Semiconductor • Google Photovoltaic | Mountain View, CA General Contractor | EI Solutions, Inc. • PG&E Harrison | San Francisco, CA Owner | PG&E Bass - General Hydroponics, 101kW San Francisco International Airport Bass Electric .5 MW San Francisco International Airport Bass Electric .5 MW Strong Green Actions Do = Green Jobs In California We Faced a Challenge • Recognized energy landscape is CHANGING VERY FAST – like the internet • Knew we must act and implement quickly • We needed to educate, train, and press the flesh • So, We Re-made the California NECA-IBEW image in one year • From old trade, to Green Building Leaders by recognizing the challenge and taking action One Year Ago We Had Little We Could Call Green How NECA-IBEW Has Responded in California • • • • • • • Made the Commitment to Green Energy Trained Installers Trained Contractors Deployed Business Developers Promoted at Trade Shows Promoted with Government Promoted with Institutions Now We Are Well On Our Way, Creating New Green Energy Jobs. . LA Community College District • Total of $3.8 Billion bond for 100 new bldgs • Bond campaign supported by LA LMCC and LA Building Trades • Energy upgrades on existing bldgs • More than $1B for LACCD Green Energy projects by 2012 • Including $300+ Million for 43 MW of PV City of Los Angeles • PV Solar Plans (only) • Goal of 100MW/year for 4 yrs = 400 MW • 400 MW = $3.2 Billion • Plus EE work Southern California Edison • PV Solar Plans (only) • Primarily in Inland Empire, Some in LA • 250 MW = $2 Billion • Beginning this year (2008) Los Angeles Unified School District • PV Solar Plans (only) • Phase 1 = 15 MW within 2 years • 245 locations, av. Of 200 KW per school • 15 MW = $120,000,000 • Plus EE work Metropolitan Water District • Estimate up to $9B in energy related work over next 5 to 10 years • Work throughout Southern CA • Electrical alone estimated to be 20% • Total electrical in range of $2 Billion By Working Together Collectively We Can Capture Our Share of The Enormous Green Energy Opportunity Thank You. L.M.C.C. Greater Los Angeles