Santa Fe Community College Sustainable Technologies Center Workforce Training for the Green Economy

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Santa Fe Community CollegeSustainable
Technologies CenterWorkforce Training for the
Green Economy26 June 2008

• The Rapidly Changing Energy Landscape
  Opportunities for Green Collar Jobs in New Mexico
• Craig OHare, Special Assistant for Renewable
  Energy
• New Mexico Energy, Minerals and Natural
  Resources Department

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Presentation Outline National and Global Energy
Trends are Setting the Stage for the Green Jobs
of the Future

• Major trends in the global and national energy
  arena
• Climate change is now (finally!) driving national
  energy policy
• Energy resource prices, outlook and availability
• Energy Usage and Efficiency in the Building
  Sector
• Vehicle Efficiency and Transportation Sectors
• The Challenges Economic development
  opportunities for NM to respond to these trends
• Keep NM consumers energy expenditures manageable
• Begin the conversion from a fossil fuel-based
  energy economy to a clean energy/clean tech-based
  energy economy.
• Job creation and workforce training go
  hand-in-hand
• NM clean energy actions taken ? Green workforce
  implications
• A Timely Topic! Green Workforce Agencies and
  Reports

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Climate Change

• Federal legislation regulating GHGs is expected
  in the next 2-4 years
• Virtually all future energy policies will need to
  have a carbon neutral focus.
• Renewable Energy Jobs
• Utility-scale
• Distributed-scale
• Energy Efficiency Jobs
• Building Sector
• Transportation Sector

Debunking the Preventing Climate Change Will
Destroy Our Economy Myth International
economic studies (Stearns McKinsey Reports) ?
substantial economic and job creation potential
associated with reducing GHGs
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New Mexico Not Waiting for the Feds2005
Governors Climate Change Executive Order

• Set state GHG reduction targets
• 10 below 2000 by 2020
• 75 below 2000 by 2050
• Created the Climate Change Advisory Group (CCAG)
  to make recommendations for meeting targets
  finalized December 2006
• Mandated a state inventory and the development of
  an impacts report

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Fall 2006 NM Climate Change Advisory Group
Recommendations

• 69 CCAG recommendations
• If all policies are implemented the state will
  exceed the Governors GHG emission reduction
  target for 2020
• Policies are projected to create a net economic
  savings for the states economy and stimulate new
  job sectors
• Many actions already implemented since CCAG
  Report Renewable Energy Transmission Authority,
  Renewable Portfolio Standard, Efficient Use of
  Energy Act, Executive Orders.
• EO 06-69, Climate Change Action Mandates
  implementation of 20 CCAG recommendations.
  Identified policies and programs imply a need
  for a new, trained, green collar jobs workforce.

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The Global Energy World Costs and Resource
Availability Weve never been here before

• Globalization rules the day ? energy resource
  availability and prices are driven by global
  factors
• Huge increase in global energy demands (China,
  India, etc.) as energy supplies remain
  essentially static and are likely to decrease
  over time ? putting intense upward pressure on
  prices
• All bets are off behavior of energy markets in
  the past century give limited insight into how
  they will behave in the future.
• Huge uncertainty in cost projections beyond a
  couple of days!
• High energy costs ? accelerating the need for a
  trained, certified, and/or degreed workforce in
  building and transportation-related energy
  efficiency technologies

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Global Competition for All Input Resources has
never been greater ? water, arable land,
minerals, energy, etc.
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Global Trends - Money Talks Investors
venture capitalists want to fund the new not
the old energy economy ? concerned about carbon
risk exposure

• heavyweight investors around the world have
  made clear that they want policies favouring a
  shift to fossil fuel alternatives, and they want
  them now.
• Last week, 53 investors wrote to leaders of the
  US Senate asking it to push clean energy
  investment and to make companies disclose the
  risks they face from climate change.
• Growing ranks of Exxon investors complain that
  the company is losing ground to competitors with
  more aggressive renewable-energy strategies.
• Clean tech jobs follow where the investors
  invest!

26 May 2008
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Trends in Electric Power Generation

• U.S. new coal-fired baseload electric
  generating plants are essentially on hold due
  to cost risks associated with future carbon
  regulation
• CO2 emissions costs of 40-70/ton would increase
  coal generation costs by 4-6/kwh
• Advanced coal with carbon capture and
  sequestration ?
• Years away from coming on-line
• Operational risks make financing entities
  hesitant to fund
• New nuclear baseload plants considered at least
  15 years out.
• Leaving primarily only two main options to
  generate new baseload power in the next decade
• Natural gas power plants - generate 40 less CO2
  than coal plants. Expanded reliance on NG for
  electric power generation will send prices
  skyward
• Solar thermal power plants, with thermal storage
  ? dispatchable quasi-baseload

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High NG prices beg for a trained workforce of
energy efficiency building retrofit technicians
1998 2/MMbtu
June 2008 13/MMbtu
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Transportation Sector Oil Price Trends
2000-2008 Is oil over-valued due to speculation
or is this the beginning of a long-term upward
trend as peak oil approaches? Perceptions of
scarcity can drive prices as much as actual
scarcity. Concern is that exporting countries
will begin to hoard for themselves as scarcity
concerns heighten.
U.S. produces less than 7 million barrels/day of
its 21 million barrel per day habit.
2008 136/barrel
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We cant drill our way to oil production
sustainability

• New oil drilling/production buys some time, but
  does not create new oil.
• Arctic National Wildlife Refuge approximately 1
  year supply of U.S. oil consumption
• Trade-offs The sooner we extract the worlds
  finite oil supplies, the sooner oil will be fully
  depleted. i.e. A barrel of oil produced and
  consumed today, is a barrel not available to
  future generations.
• Starting a gradual oil weaning strategy will
  avoid a huge economic hardship of losing the
  majority of oil production in as little as a
  decade.
• New oil field discoveries are a fraction of the
  size of the colossal fields discovered in the
  1950s-70s.
• Brazils new 8 billion barrel oil field amounts
  to less than 4 months of world oil demand.
• Arctic Natl Wildlife Refuge is oil demands
• As the colossal fields play out, there are no new
  colossal fields to replace them.

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May 22, 2008

• Energy Watchdog Warns of Oil-Production Crunch
• International Energy Administration Says Supplies
  May Plateau Below Expected Demand
• Goldman Sachs Oil could top 140 a barrel this
  summer and could average 200 a barrel next year.
  
• Green collar job implications of high oil prices
  ?
• A new fleet of trained mechanics ?
  hybrid-electric vehicles, plug-in hybrids,
  all-electric vehicles, bio-fuels driven engines,
  hydrogen/fuels cells, etc.
• Construction jobs densifying suburbia
• Public transit operations and mechanics
• Bicycles, electric-bicycles, scooters

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The Hardest Hit ? Low Income Families

• Low Income Home Energy Assistance Program
  (LIHEAP) state has periodically supplemented
  federal funds (HSD administered)
• Note LIHEAP is an energy utility bill assistance
  program. It does not address reducing low income
  families energy usage and, therefore, utility
  bills.
• Weatherization Assistance Program (WAP) - state
  has periodically supplemented federal funds
  (NMMFA administered)
• Approximately 1000 homes/year.
• MFAs Energy avers Program - funding energy
  efficiency improvements for low-to-moderate
  income households around the state.
• Future
• How/where can funds be identified to
  achieve/incentivize energy efficiency renovations
  on 80,000 low income households in the next
  decade?
• Do we have a trained workforce to do all of the
  renovations?

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Statewide Economy Challenge

• Development of NMs renewable energy for export
  to out-of-state markets
• Renewable Energy Production Tax Credit (2002,
  subsequently amended)
• Stimulated 500 megawatts of wind farm
  development in NM
• Significant interest in developing hundreds of
  MWs of NMs solar resource by utility-scale solar
  developers (including Spanish energy giants
  Acciona and Abengoa). The solar PTC is the best
  solar incentive in the country.
• SkyFuel, a start-up utility-scale solar developer
  located in ABQ in response to NMs strong solar
  incentives.
• NM Renewable Energy Transmission Authority
  mission is to address transmission infrastructure
  needs associated with developing 1000s of MWs of
  renewable power for export to out of state
  markets.
• Energy Innovation Fund and Clean Energy Grants
  Program 3.5 million FY 09
• EIF Facilitate bringing promising technologies
  from RD phase to commercialization
• CE Grants local governments, public schools,
  tribal governments. Over 60 proposals submitted
  under competitive selection process.
• Solar Tax Credit 30 small-scale solar tax
  credit helps stimulate existing installation
  business expansions and attract manufacturing
  entities.

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NM world class energy resources below our feet
(coal, oil and gas, geothermal) above our heads
(solar and wind)!! Need to accelerate economic
conversion from fossil fuel-based jobs to clean
energy jobs.
2nd in Nation Solar Resource
1000s of MWs of Wind!
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Carbon Friendly Power GenerationConcentrating
Solar Power (CSP)Using the Sun to Boil Water and
Make Steam!
Advanced " Power Tower Design New Demo Projects
in Spain
350 MW of Parabolic Trough Operating 15
Years Mojave Desert, Calif.
New Mexico could become an industry hub
for large utility-scale solar power development ?
Manufacturing, construction and facility
operations jobs.
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Statewide Economy Challenge contd

• Alternative Energy Manufacturers Tax Credit 5
  tax credit was instrumental in landing Schott
  Solar to ABQ a large German solar company that
  will manufacture both PV modules and large-scale
  solar receiver tubes at Mesa del Sol site.
• Advanced Energy Tax Credit 6 tax credit for
  advanced coal and large-scale solar thermal power
  plants.
• Future
• Solar PTC will stimulate 180 MWs of utility-scale
  solar projects before cap is reached. PNM is
  issuing an RFP for large-scale solar.
• New technologies suggest that NM may have
  substantial geothermal resources for electric
  power generation. Existing oil and gas wells
  could be used to extract the resource saving
  1/3 or more of project development costs.
• Carbon sequestration NMs depleted oil and gas
  basins are promising sites for large-scale carbon
  sequestration. New job opportunities for oil
  industry workers?

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No Shortage of Green Workforce Agencies, Reports
and Activities Throughout the Nation!!

• Federal Green Jobs Act and the "Green Block
  Grant" program ? if fully funded, would
  distribute 125 million toward green-collar job
  training
• a national organization
• dedicated to building an inclusive green
• economy strong enough to lift people
• out of poverty. www.greenforall.org

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Apolloalliance.org
Green WorksNew Reports on Green Collar Jobs Give
Cities, States Path to Clean Energy Economy By
Keith Schneider Apollo News Service , March 13,
2008
http//www.apolloalliance.org/resources_greencolla
rjobs.php
Coming Soon! ? Green Jobs Policy Book 
www.bluegreenallliance.org
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Growing Green Collar Jobs Energy Efficiency,
2007
Greener Pathways Jobs and Workforce Development
in the Clean Energy Economy, 2008
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Whats at Stake..Competing for the 21st Century
Energy Economy

• NM is competing with other countries and states
  (CA,TX, PA, NY, NJ, AZ) for this emerging
  economic pie. All are jockeying for position
  right NOW!!
• Clean energy projects and related manufacturing
  offer significant economic stimulus and job
  creation
• Year 2100 the nations energy-based economy
  wont look much like todays energy economy
• Renewables with energy storage, state-of-the-art
  efficiency, fuel cells, plug-in hybrid vehicles,
  nanotechnology, etc.
• As this transition unfolds ? winners and losers
• States, countries, multi-national companies,
  small start-ups ? economic diversification and
  job creation
• Not unlike ? transition in transportation-related
  economy in first decade of 1900s (horse buggy
  ? automobile)
• 20th Century NM was a national leader in energy
  development.
• Will we maintain our leadership position in the
  21st century? Time to begin the economic
  transition is NOW!

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Green Energy JobsAn Ocean of Possibilities!
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Thank you!