Energy Workforce Trends and Training Needs in Appalachia Prepared for:  The Appalachian Regional Commission  Contract CO – 16502‐09  December 2011  Regional Technology Strategies, Inc.  with  Penn State University    www.rtsinc.org Acknowledgements This report is the product of a team that includes, or has included, Chris Beacham, Jenna Bryant, Corinne Cain, Trent Williams, Dan Broun, Dana Archer-Rosenthal, Stuart Rosenfeld, and Jim Lott from RTS, Cynthia Liston from CD Liston Consulting and Rose Baker and David Passmore from Penn State University. Beth Williams at RTS helped with editing and proof reading in addition to the contractual and financial issues. An advisory panel (shown in Appendix D) influenced the original design and reviewed the final draft: John Carrese, Director, Bay Region Center of Excellence, City College of San Francisco; Dr. Amy Glasmeier, Head of Department of Urban Studies and Planning, MIT; Dr. Michael Karmis, Director, Virginia Center for Coal and Energy Research (VCCER), Virginia Tech; Dr. Calvin Kent, Vice President, Center for Business and Economic Research, Marshall University; and James F. McKenney, Vice President for Economic Development, American Association of Community Colleges. We also want to express our appreciation to the many people at colleges and universities who spoke so candidly with interviewers conducting case studies and the many more who completed the online survey. Finally, at the Appalachian Regional Commission we wish to thank our program officer David Carrier for his insights and advice on methodological issues and for ensuring rigor and Ray Daffner and Jeff Schwartz for their helpful critiques of the draft report. Dr. Stuart Rosenfeld May 25, 2011 Cover photos used under a Creative Commons license: Windmills – Janie Hernandez Coal Miner – Big Ed Solar Cells – JD Lasica RTS Inc. ARC Energy Workforce Trends and Training Needs ii Table of Contents Executive Summary ....................................................... viii   INTRODUCTION ........................................................................................................................................................ VIII  EMPLOYMENT BY ENERGY SECTOR.......................................................................................................................... VIII  EDUCATION AND TRAINING OPPORTUNITIES ........................................................................................................... IX  ENROLLMENT IN PROGRAMS ...................................................................................................................................................... XI  GAP ANALYSIS ........................................................................................................................................................... XII  CASE STUDIES ........................................................................................................................................................... XIV  POLICIES AFFECTING THE ENERGY INDUSTRY ....................................................................................................... XVII  RECOMMENDATIONS ............................................................................................................................................. XVIII  INSTITUTIONS AND TRAINING PROGRAMS ............................................................................................................................ XIX  ECONOMIC DEVELOPMENT ........................................................................................................................................................ XX  FINAL THOUGHTS...................................................................................................................................................... XX  1. Introduction ................................................................. 1   1.1 PURPOSE ............................................................................................................................................................... 1  1.2 GENERAL APPROACH ........................................................................................................................................... 2  1.3 REVIEWING THE LITERATURE ............................................................................................................................. 2  1.3.1 FINDINGS FROM THE LITERATURE .................................................................................................................................. 3  1.4 REPORT FORMAT ................................................................................................................................................. 4  2. Employment by Energy Sector in the Appalachian Region ............................................................................... 5   2.1 CURRENT EMPLOYMENT BY INDUSTRY ............................................................................................................... 5  2.1.1 ALL OF APPALACHIA ......................................................................................................................................................... 5  2.1.2 GAS & OIL ........................................................................................................................................................................... 8  2.1.3 COAL .................................................................................................................................................................................... 9  2.1.4 NUCLEAR ........................................................................................................................................................................... 10  2.1.5 HYDROELECTRIC .............................................................................................................................................................. 12  2.1.6 SOLAR ................................................................................................................................................................................ 13  2.1.7 WIND ENERGY .................................................................................................................................................................. 15  2.1.8 BIOMASS ............................................................................................................................................................................ 16  2.1.9 GEOTHERMAL ................................................................................................................................................................... 18  2.1.10 FUEL CELLS .................................................................................................................................................................... 19  2.1.11 ENERGY EFFICIENCY .................................................................................................................................................... 21  2.2 FINDINGS FROM THE EMPLOYMENT ANALYSIS ............................................................................................... 22  RTS Inc. ARC Energy Workforce Trends and Training Needs iii 3. Current and Future Energy Programs in Higher Education ....................................................................... 24   3.1 SOURCES AND METHODOLOGY ......................................................................................................................... 24  3.2. OVERVIEW OF EDUCATION AND TRAINING OPPORTUNITIES IN THE ARC REGION .................................... 24  3.2.1 DATABASE OF CREDIT PROGRAMS IN HIGHER EDUCATION ..................................................................................... 24  3.3 RESULTS FROM A SURVEY OF COMMUNITY AND TECHNICAL COLLEGES ....................................................... 33  3.3.1 PROGRAMS IN ENERGY ................................................................................................................................................... 33  3.3.2 ENROLLMENT IN PROGRAMS ......................................................................................................................................... 36  3.3.3 NONCREDIT OR CUSTOMIZED TRAINING ..................................................................................................................... 38  3.3.4 GENERAL CUSTOMIZED TRAINING ............................................................................................................................... 39  3.3.5 WORKFORCE SKILL NEEDS AS REPORTED BY COMPANIES ...................................................................................... 40  3.3.6 OPEN ENDED RESPONSES .............................................................................................................................................. 40  3.4 FINDINGS ON PROGRAMS IN HIGHER EDUCATION ......................................................................................... 41  4. Gap Analysis ............................................................. 43   4.1 METHODOLOGY ................................................................................................................................................ 43  4.2 THE STATES ....................................................................................................................................................... 44  4.2.1 ALABAMA .......................................................................................................................................................................... 45  4.2.2 GEORGIA ............................................................................................................................................................................ 47  4.2.3 KENTUCKY ........................................................................................................................................................................ 48  4.2.4 MARYLAND ....................................................................................................................................................................... 49  4.2.5 MISSISSIPPI ....................................................................................................................................................................... 50  4.2.6 NEW YORK ........................................................................................................................................................................ 51  4.2.7 NORTH CAROLINA ........................................................................................................................................................... 52  4.2.8 OHIO .................................................................................................................................................................................. 54  4.2.9 PENNSYLVANIA ................................................................................................................................................................ 55  4.2.10 SOUTH CAROLINA ......................................................................................................................................................... 56  4.2.11 TENNESSEE .................................................................................................................................................................... 57  4.2.12 VIRGINIA ......................................................................................................................................................................... 59  4.2.13 WEST VIRGINIA ............................................................................................................................................................. 60  4.3 FINDINGS FROM THE GAP ANALYSIS ................................................................................................................ 61  5. Learning from the Case Studies .............................. 62   5.1 CAPSULIZED SUMMARIES ................................................................................................................................. 62  5.2 FINDINGS FROM THE CASE STUDIES ................................................................................................................. 68  RTS Inc. ARC Energy Workforce Trends and Training Needs iv 6. Policies Affecting the Energy Industry .................... 70   6.1 FEDERAL POLICY ............................................................................................................................................... 70  6.1.1 ENERGY TRAINING FUNDING PROVIDED TO STATES FROM THE AMERICAN RECOVERY AND REINVESTMENT ACT ............................................................................................................................................................................................... 71  6.2 STATE POLICY TRENDS ..................................................................................................................................... 76  6.2.1 ENERGY EFFICIENCY AND RENEWABLE ENERGY ....................................................................................................... 76  6.2.2 COAL, NATURAL GAS, OIL AND NUCLEAR ................................................................................................................... 77  6.2.3 WORKFORCE IMPLICATIONS .......................................................................................................................................... 78  6.3 FINDINGS ON FEDERAL AND STATE POLICY .................................................................................................... 78  7. Key Findings ................................................................ 79   7.1 FINDINGS RELATED TO EDUCATIONAL INSTITUTIONS AND TRAINING PROGRAMS ..................................... 79  7.2 FINDINGS RELATED TO ECONOMIC DEVELOPMENT ........................................................................................ 80  8. Recommendations .................................................... 83   8.1 EDUCATIONAL INSTITUTIONS AND TRAINING PROGRAMS ............................................................................ 83  8.2. ECONOMIC DEVELOPMENT .............................................................................................................................. 85  9. Final Thoughts ............................................................. 86       RTS Inc. ARC Energy Workforce Trends and Training Needs v APPENDICES  APPENDIX A: LITERATURE REVIEW APPENDIX B: FULL CASE STUDIES AND PROTOCOL APPENDIX C: WORKFORCE SURVEY FORM APPENDIX D: ENERGY WORKFORCE IN THE ARC REGION ADVISORY PANEL APPENDIX E: LIST OF ARC POSTSECONDARY INSTITUTIONS APPENDIX F: DATA SOURCES AND METHODOLOGY APPENDIX G: DESCRIPTION OF ENERGY RELATED INSTRUCTIONAL PROGRAMS BY CLASSIFICATION OF INSTRUCTIONAL PROGRAM (CIP) APPENDIX H: LIST OF OCCUPATIONS USED FOR GAP ANALYSIS APPENDIX I: WORKFORCE GAPS AND SHORTAGES BY STATE APPENDIX J: OCCUPATIONAL SUPPLY AND DEMAND ANALYSIS OPERATING INSTRUCTIONS APPENDIX K: NAICS CODES BY ENERGY SECTOR   RTS Inc. ARC Energy Workforce Trends and Training Needs vi This page left intentionally blank RTS Inc. ARC Energy Workforce Trends and Training Needs vii EXECUTIVE SUMMARY  Introduction Appalachia and energy have been closely linked throughout their history, from the first discovery and production of oil, to the mining of coal to fuel the nation’s industrial growth, to the development of hydropower to bring prosperity and progress to remote rural communities. By using its full range of energy resources and staying at the forefront of emerging energy technologies and practices, Appalachia has the potential to increase the supply of locally produced clean energy. All of this has significant ramifications for both expanding and changing the region’s labor market. Many of the jobs will require different proficiencies. Many others, such as construction and maintaining transmission lines to connect rural wind energy farms to cities, will require primarily conventional skills but with new adaptations. This study uses the best available national data to project future supply and demand for occupations associated with the energy industry for each ARC state and the number of people enrolled in and graduating from programs in the region’s institutions of higher education that will be available to meet or exceed the demand. In addition, information from a survey of educational institutions complements the national database with more detailed information about skill sets and non-credit programs. Finally, brief case studies of 13 educational institutions, one in each ARC state, is used to provide more contextual analysis. The energy sector is defined by non-renewable sources (coal, oil, natural gas, and nuclear), renewable sources (solar, wind, hydroelectric power, geothermal, biomass, and fuel cells), and industries that promote energy efficiency. The report includes analyses of employment by energy sector by state that include projected job replacement needs; current and future energy training programs; gaps in trained workers in each state by occupation; case studies of educational institutions in the region; state and Federal policies that impact the energy sectors; and key findings and recommendations. Employment by energy sector Energy employment in Appalachia totaled close to one million jobs in 2009 with the energy efficiency sector having the largest employment (Table A).i Employment in non- renewable sectors shows slow growth, but in renewable energy sectors it is projected to decline. The drop in employment in solar energy and stagnation in wind energy is due to the fact that a large proportion of jobs are in manufacturing of equipment, not installation, and manufacturing has been moving off shore. The bulk of the growth in employment is in energy efficiency, buttressed by government programs to accelerate conservation. A large proportion of the energy efficiency employment is in the construction industry. RTS Inc. ARC Energy Workforce Trends and Training Needs viii Table A. Energy Employment By Source, All Appalachia, 2002 to 2013 2002 – 2007- 2009 - Source 2002 2007 2009 2013 2007 2009 2013 Biomass 44,006 42,842 37,380 35,304 -2.6% -12.8% -5.6% Coal 107,905 120,537 122,873 125,399 11.7% 1.9% 2.1% Efficiency 418,537 478,222 421,108 474,288 14.3% -11.9% 12.6% Fuel cells 2,700 2,145 1,830 1,465 -20.6% -14.7% -19.9% Gas oil 190,893 205,295 210,037 217,139 7.5% 2.3% 3.4% Geothermal 9,803 8,003 7,014 6,261 -18.4% -12.4% -10.7% Hydroelectric 9,032 6,864 7,161 7,015 -24.0% 4.3% -2.0% Nuclear 24,840 25,041 25,195 26,509 0.8% 0.6% 5.2% Solar 39,061 32,756 30,313 29,134 -16.1% -7.5% -3.9% Wind 111,106 117,724 106,911 111,471 6.0% -9.2% 4.3% Total 959,885 1,041,436 971,831 1,035,998 8.5% -6.7% 6.6% Source: EMSI and Pennsylvania State University, historical complete employment (2002 to 2009) and projected employment (2010 to 2013). Findings  Total energy related employment and many individual energy sectors experienced severe job losses during the recent recession with renewable energy sectors bearing most of the declines. Employment in non-renewable energy sectors was more stable between 2007 and 2009.  Energy efficiency is expected to make a full recovery from the recession by 2013, with much of the job increases in the specialty contractor industries that retrofit existing and new residential and non-residential infrastructure.  Although the manufacturing portion of solar energy is declining, increased consumer demand for solar energy products is resulting in increases in employment in retail and installation.  Most of the forecast growth in the gas and oil sector is due to drilling and extraction activities primarily related to the extraction of natural gas in Appalachia.  Outside of natural gas exploration and extraction employment overall employment in the coal and gas and oil sectors is expected to decline or grow slowly between 2009 and 2013. Education and training opportunities There are more than 180 public and private educational institutions – community colleges, career and technical education centers, and universities – and 82 programs RTS Inc. ARC Energy Workforce Trends and Training Needs ix related to the specific training of workers in the energy sector located in the ARC region. Information about current and future energy programs in higher education are based on (1) Federal data on higher education programs and graduation and completion rates from relevant programs, and (2) an online survey of community and technical colleges to identify programs teaching skills relevant to the energy sectors. The survey (Table B) revealed that only small numbers of community or technical colleges had programs of study that targeted an energy-specific occupation. Instead, most learning was embedded in existing occupational programs as elective or minors. The largest number of customized training programs for energy industries were for the utility companies, with energy efficiency next. Only 18 percent of the colleges offered entrepreneurial education with nearly none targeting the energy sector. Table B. Percent of ARC Colleges with Energy Programs, by Level, 2009 Less than 1 1-year 2-year Elective Noncredit Contract Programs in Energy year Certificate AAS Courses Courses Training None Coal Mining 7.1 2.0 2.0 2.0 5.1 6.1 86.7 Operation of Coal Utility 1.0 3.1 7.1 0.0 3.1 3.1 79.6 Nuclear Plant Operation 1.0 1.0 3.1 0.0 0.0 1.0 89.8 Biofuels 2.0 2.0 1.0 5.1 7.1 2.0 86.7 Solar Installation/Repair 12.2 4.1 5.1 5.1 14.3 5.1 70.4 Solar Manufacturing 2.0 2.0 1.0 0.0 3.1 2.0 89.8 Wind Power Installation/Repair 6.1 6.1 5.1 3.1 6.1 1.0 83.7 Wind Power Manufacturing 1.0 1.0 1.0 0.0 3.1 2.0 89.8 Energy Auditor 6.1 1.0 2.0 1.0 24.5 8.2 65.3 Energy Efficiency Analysis 6.1 1.0 1.0 4.1 20.4 8.2 65.3 Energy Management Systems 3.1 0.0 1.0 3.1 11.2 11.2 76.5 Weatherization 9.2 2.0 1.0 2.0 21.4 4.1 66.3 Other Alternative Energy 5.1 3.1 2.0 3.1 8.2 3.1 79.6 Other Fossil Fuels 4.1 1.0 4.1 2.0 5.1 6.1 85.7 Introduction to Energy 6.1 1.0 3.1 8.2 12.2 4.1 70.4 Source: Online survey of Appalachian educational institutions conducted by RTS, Inc., 2009-2010 RTS Inc. ARC Energy Workforce Trends and Training Needs x