Thank you for inviting me to speak at your last WIB meeting.  Jobs are the topic of the day and capitalizing on an expanding green economy is an opportunity we must not miss.  There is a lot of activity in this area and the base of information grows daily.  It is important that those of us involved in workforce development have a clear understanding of what “green” is and where are the opportunities.  A lot of policy work was accomplished this past session; however, my brief report at the meeting did not come close to addressing the scope and the urgency of the issue.

The most recent jobs numbers show the U.S. now approaching 10% unemployment and getting very near the all-time high water mark since the Great Depression.  With the severity of this economic downturn, the mission of the Workforce Investment Board has never been more important.  A focus on the “green” areas of our economy is critical.  While many sectors of the economy are rapidly losing jobs, the jobs and businesses in the emerging “green” or clean energy economy have been growing.  This sector is poised for even greater growth due to increasing consumer demand, federal stimulus and venture capital infusions, and policy reforms by federal and state lawmakers.  A recent Pew Charitable Trust report showed Minnesota’s job growth in the green economy over the past 10 years has been 11.9% compared to 1.9% for the economy overall. 

While green jobs alone won’t restore economic health to the U.S. , the next few years will be pivotal as the United States undergoes a massive shift in the way energy is produced and consumed.  This transformation to a green economy will create millions of jobs nationwide, so it is essential to identify the occupations and skills most in demand to support the energy revolution.

The very good news is that in Minnesota , with its Renewable Energy Standard and its commitment to energy conservation, the job growth outlook is excellent.

Opportunities abound in the emerging “green” economy for all educational backgrounds and all skill levels. There will be many well-paying jobs available for engineers and scientists, energy auditors and cost estimators, plumbers and electricians, accountants and financial analysts, computer technicians, manufacturing workers and construction workers, marketing consultants and administrative assistants, truck drivers, salespersons, and many others.

 Many of the jobs will be available to individuals with 2 years of college or less, though the largest number of green jobs will be in occupations that require an apprenticeship, professional certificate, or one to two years of postsecondary education.  It is important for workforce and education professionals to understand the needs and nuances of the mix of occupations and employers in these sectors, and the green skills and certifications needed to obtain these jobs.  The majority of the immediate green jobs will not be new occupations, but rather traditional occupations that may require an additional layer of “green skills and knowledge.”

We also cannot forget that this revolution in our economy can be joined by many existing businesses as they adapt their practices and product mix and contribute to the supply chain of green products and services.  To have the greatest impact, green-collar job training initiatives should be developed in concert with existing workforce and economic development strategies, not as stand-alone, boutique programs.

This approach requires a coalition of educational institutions (from high school to university), workforce and economic development system stakeholders, labor unions, community-based organizations, utilities and green energy companies, and industry associations in order to provide and support a trained and job-ready workforce for green jobs.  To function effectively with this coalition it is essential to understand what qualifies as a “green job”?

Pew’s definition of the “green” or clean energy economy as based on research and input from experts in the field is one that “generates jobs, businesses and investments while expanding clean energy production, increasing energy efficiency, reducing greenhouse gas emissions, waste and pollution, and conserving water and other natural resources.”

It comprises five categories:

(1) Clean Energy, 
(2) Energy Efficiency, 
(3) Environmentally Friendly Production, 
(4) Conservation and Pollution Mitigation, and 
(5) Training and Support. 

The definition provides a framework for tracking jobs, investments and economic growth over time, allowing the public and private sector to evaluate the effectiveness of policy choices and investments.  

In Minnesota ,  Green Economy is defined in Minnesota Statute Section 116J.437 as follows:

"Green economy" means products, processes, methods, technologies, or services intended to do one or more of the following:

 (1) increase the use of energy from renewable sources, including through achieving the renewable energy standard established in section 216B.1691;

 (2) achieve the statewide energy-savings goal established in section 216B.2401, including energy savings achieved by the conservation investment program under section 216B.241;

 (3) achieve the greenhouse gas emission reduction goals of section 216H.02, subdivision 1, including through reduction of greenhouse gas emissions, as defined in section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, but not limited to, carbon capture, storage, or sequestration;

 (4) monitor, protect, restore, and preserve the quality of surface waters, including actions to further the purposes of the Clean Water Legacy Act as provided in section 114D.10, subdivision 1; or

 (5) expand the use of biofuels, including by expanding the feasibility or reducing the cost of producing biofuels or the types of equipment, machinery, and vehicles that can use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections 41A.10, subdivision 2, and 41A.11.

For the purpose of clause (3), "green economy" includes strategies that reduce carbon emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass transit or otherwise reducing commuting for employees.

The Green Jobs Task Force categorized green jobs and entrepreneurial opportunities as falling into four industry sector:

Green products –High efficiency appliances, low VOC paint, solar panels, electric vehicles, CFL/ LED lighting, etc.

Green services – Energy management services, weatherization, LEED certified construction, etc.

Renewable energy - Wind power, solar power, geo-thermal, hydro, bio-fuels, etc.

Environmental conservation – Recycling services, CO2 sequestration, water filtration, low-impact farming, etc.

There will be businesses directly involved in these categories and there will be businesses indirectly involved through their support of the direct businesses.  Both are necessary to achieve our statewide policy objectives of reducing energy usage and lowering carbon emissions, reducing pollution or waste, or protecting our environment and job creation. 

This broad range of green topics provides ample opportunity to create jobs that qualify for federal stimulus and state incentive dollars. 

 The areas receiving the most attention at this time are: Energy efficiency, renewable energy and natural resource protection. Energy efficiency generally involves retrofitting homes, schools and businesses to use less energy, as well as developing and manufacturing products that save energy. The renewable and clean energy sectors focus on creating, installing, and maintaining technologies that generate energy from resources that are naturally replenished and generally do not emit greenhouse gasses. The other major types of businesses are those that monitor, protect, restore and preserve the quality of our surface waters.

As time goes on and the green economy further develops, the definition of “green” may evolve as well.  For now, I hope that some of the above information gives all involved a better understanding about what “green” is, so we can advance our efforts on developing a workforce for the above industries.

This last thing I want to share with you is some of the Minnesota initiatives that may be helpful.  As mentioned at the meeting nearly $200 million is coming to Minnesota for energy efficiency and renewable energy projects.  The state legislature also made a commitment to advancing these issues.  Of the $200m, $132m is devoted to weatherization. It is important to note than MN utilities continue to have an aggressive CIP program pursuing energy efficiency. Partnering with the energy generators and distributors in our jurisdiction is essential to success.  Also passed into law in 2009 is $7m for solar projects, $3m of which is for the Central Corridor. In the latter example, Xcel Energy will be the lead utility.   More state dollars are headed toward solar projects and enabling language has been enacted to advance projects.  This is an exciting time to move forward some innovative projects that will make Minnesota a stronger, healthier state and put people back to work. 

Creating a new energy economy will be challenging, yet very rewarding.  We have the commitment, the policies, the infrastructure, private and public sector support and now we have a boat load of federal dollars moving into the state.

Thank you again for your commitment to serving.  I look forward to working with you.  Please feel free to contact me should have any questions.

John Doll