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ReportDelaware Energy Partnership Team Report

September 15, 2009

Delaware Energy Partnership Team ReportSeptember 15, 2009

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Background

The Delaware Workforce Investment Board seeks to apply to a Department of Labor/ Employment and Training grant opportunity titled: “State Energy Sector Partnership (SESP) and Training Grants.” To establish direction and build partnerships for the grant and for Delaware’s long term policies regarding energy and workforce, the Board has established the Delaware Energy Partnership Team.

This report represents key discussion and action items from the Team’s second meeting conducted September 15, 2009 and includes documents distributed at the meeting and a contact list of attendees.

Meeting Objectives Continue State Energy Partnership Team’s Planning Process Review Discussion Draft of Team Deliverables; Assign responsibly Establish schedule to fulfill planning deliverables as well as to finalize

grant document for submission

Meeting’s Agenda (attached):I. Welcome and Introductions

State one goal you think this partnership should focus on.II. Staff UpdateIII. Review of Deliverables and Discussion

Discuss Deliverables and Determine AssignmentsIV. Review Draft Charter OutlineV. Establish planning/grant development scheduleVI. Next Steps


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Meeting Report

Welcome and IntroductionsMembers were welcomed by Gwen Jones, DWIB Executive Director, and she introduced Patrick Cassidy, a facilitator engaged by the DWIB to facilitate the Energy Partenrship Team meetings and to support the grant devlopment process.

The attendees introduced themselves and shared “one goal you think this partnership should focus on.’ Those statements are listed below:

Determine the training needed to facilitate energy industry growth Identify new ”green” jobs so training can be in place to attach the large

unprecedented number of dislocated workers Anticipate training needs necessary to sustain green efforts Lend definition to industry opportunities Mobilize Delaware to spend money wisely and quickly Accelerate training for industry. Educate manufacturing community on

how to conserve resources. Take lead in development and training strategies Develop core partners, agency and industry Build infrastructure so Delaware can be a national leader. Assure effort is

driven by industry Identify near term and long term jobs; Identify training to fit jobs Draft action plan that is agile plus create a system that is integrated and

nimble. Provide job search/readiness skills as well as training. Make the effort

sustainable [even after the grant] Identify energy savings in manufacturing. Connect workers with skills and

jobs – grow energy saving industry. Near term focus– weatherization, connect R&D with industry.

Help industry develop products that conserve energy and that are sustainable

Jeff Bross commented that his concern was that once people are trained that they end up in meaningful jobs.

Staff and Pat Cassidy emphasized that the Team needs to focus itself on specific grant deliverables now. In context of this emphasis, longer term objectives (e.g. industry economic development, emerging energy product development) can be incorporated into the grant as feasible. That said, the Team needs to take a long term approach in its discussions so that energy policies and initiatives are developed that systemically lead


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Delaware where it needs to go, regardless of the immediate requirements of the grant.

Staff UpdateGwen Jones provided an update:

Focus groups scheduled for September 22nd in Dover were revamped to combine Alternative Energy and Energy Efficiency into one focus group named: Energy Services. Research and Development and Deconstruction are the other two focus groups.

Phil Cherry shared an updated list of questions that would be used at the focus groups and asked members to submit any ideas or feedback to him.

Later in the meeting a member suggested that all focus group participants be asked ‘where do they think future growth will be in the energy industry.’

Agency staff had met and reviewed a list of tasks that were necessary and made assignments. (attached)

To fulfill the requirements of the grant and to provide continuity, Team members need to be formalized and designees identified.

A member commented that it was important that the Team membership be expanded to include more industry representatives and that the focus groups would present a good opportunity to recruit those members.

Phil Cherry distributed a list of invitees and asked that Team members let him know if they want others invited.

Review of Deliverables and Discussion

Pat Cassidy reviewed the attached document titled, “State Energy Sector Partnership Team - Deliverables for Discussion.” (Members who did not attend the meeting are encouraged to read the document.) This document was developed to respond to the recommendations in the grant solicitation regarding the Sector Team’s strategic planning process.

Section 1 (Energy and Workforce Policy)comments

The document was introduced as a way to share grant requirements and Team respoinsibilities. The members of the Team should consider this grant as just the Team’s initial task and that the Team can use this grant opportunity to develop a long term private/public partnership to lead Delaware’s energy and workforce policies. Members concurred with the grant and long term objectives.

The core of the grant is to develop a strategy that provides training to workers to meet the energy industries’ needs and provide careers to citizens and many of the members’ goal statements mirror that core.

Phil Cherry introduced a document he developed which represented Delaware’s energy policy (attached). He emphasized the document was a synthesis of a year long information gathering and analysis process that was reflected in a report to the Governor (March 2009) and updated


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by Secretary O’Mara. The goal of his department is to create a comprehensive ‘Climate Prosperity Policy’. Mr. Cherry reviewed a few key points and pointed out a chart [last page] that depicted estimated jobs created by the actual investments already earmarked for deployment. The comment was made that the grant could facilitate the inclusion of research focused upon practical applications.

Pat Cassidy asked the Team if they could stipulate that this document and the broader Governor’s report be the basis for the energy policy and process description required by the grant. All affirmed.

The grant requires that other ARRA grants and linkages be described and Pat Cassidy asked staff to forward brief descriptions (amount, purpose, etc.) and any linkage opportunities between agency grants and the State energy Sector grant. (Information to Bill Potter/ Gwen Jones). Members suggested that clearing house and recovery website be reviewed to assure that Delaware grants are identified. DWIB will do this.

Leveraging resources is a success factor in the grant. Staffs need to identify ARRA funds and especially non-federal funds that could be leveraged. (E.g. Employer contributions, WIA support/training, economic development and other partner funds.)

Identifying some of the Blue Collar training funds for inclusion in the grant may be beneficial to the grant and also aligned with Delaware’s Climate Prosperity strategy. RFP may need to be revised to accommodate this new focus.

Section 2 Comments (Sector Investments)

The grant requires that the sectors, occupations and skill needs be identified where training investments will be made. To be successful both in securing a grant and in delivering a program that helps citizens and industry the Team will need to prioritize where it will make its training investments.

Bob Clarkin suggested that the focus did not have to be only industry based but that occupations that lent themselves to “Quick Hits” (i.e. short term interventions), intermediate (employers with innovative products and who need trained employees) and long term training be identified. It is urgent that, due to the number of unemployed individuals, to craft approaches that focus on those occupations that have job openings now. Though not precluded, initiatives that are dependent on the development of viable ‘green’ products should not be the grant’s immediate priority.

Members suggested that manufacturing and energy retrofit and construction represent industries and occupations that offer employment now.


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Section 3 Comments (Who will be served – Eligibility)

Grant allows great flexibility regarding eligibility that includes incumbent workers, the unemployed, individuals impacted by energy policy, and special populations (e.g. adjudicated, veterans, etc.).

A discussion about wages and support services clarified that wages could not be paid by grant funds, but that training could be funded. Support services (e.g. client stipends, tools, books, child care, etc) are allowable and the grant language limits these costs to 5% of the grant. Workforce Investment Act (WIA) and the National Emergency Grant (NEG) are also available to provide support. It is expected that Unemployment benefits may be extended nationwide and represents another support resource.

Delaware’s New Castle County is eligible under this grant for additional funds related to training and reengaging auto workers. It was suggested that Team leadership establish a dialogue with industry partners to reconnect these workers. Bob Clarkin pointed out that Delaware had already received a NEG grant for this population (3 years; $1.1 M now with up to $3.8 M available). The grant provides assessment, training, job search and work readiness services. He reiterated that he needs to understand where the jobs are now to help and train this group as well.

Section 4 Comments (Strategy for training workers in energy industries that result in employment)

In light of the grant requirements and many Team member comments, the importance of providing an analysis that identifies those ‘green’ industries and occupations that are likely to result in employment was discussed.

The deliverables document delegates this function to staff (DET for LMI in concert with DEDO for business perspective) and that this information should be available for the team to consider at its 9/29/2009 meeting. Many members expressed the inherent difficulty of making this determination in light of the difficulty of analyzing industry growth in what are essentially new industries and the reality that the recession is impeding growth throughout the economy.

It is hoped that the focus group industry representatives will provide some direction, information and ideas to help target training resources.

The grant puts an emphasis on the distribution of resources to local areas and the inclusion of input from local areas. Even though Delaware is a single state WIB [most states have numerous local WIBs] it is important that the grant reflect this distribution and to make sure the Team includes the local input.

The Team is responsible for creation and oversight of the project teams that will implement this grant. DWIB and DET staff will develop a project team approach.


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Bob Clarkin noted that even though Delaware has received a number of grant resources, DET cannot create any positions. This reality makes this grant’s implementation more difficult. He is considering subcontracting some of its functions, but that may not be possible if the grant arrives quickly.

The grant requires that if new curriculum is required that a detailed description and justification needs to be developed and included in the grant. Delaware Technical College representatives and DWIB staff feel that most curriculums needed already exist or can be quickly adapted to meet training needs [depending on occupations selected for inclusion in the grant].

Review Draft Charter Outline

An outline of a charter that meets the grants requirements was presented (attached) and Pat Cassidy asked the group to affirm that this outline was appropriate. Mr. Cassidy noted that signature of the Charter indicates approval of the grant by the Team members and their entity’s commitment to support the grant and Team efforts. In addition, actual names of members and designees needs to be finalized as discussed earlier. The Team affirmed and the Charter will be drafted for the Team’s review.

Establish planning/grant development schedule

Additional meetings will be necessary for the Team to finalize the grant. Gwen Jones asked members if they would commit to the meeting scheduled for September 29th be extended to 8:30 – 12.

Further, that additional meetings will be scheduled at the 9/29/09 meeting so the Team can deliberate and approve the grant which is due 10/20/2009.

Next Steps and Wrap up Members were asked to review responsibilities and follow up as needed

so that as much information as possible is available for the 9/29/2009 meeting.

DWIB will be contacting agency staff to ask them for draft information that fulfills detailed grant requirements. This information will provide a head start for the grant writer. It is expected that the grant writer will be available soon.

Members asked that:o Materials be forwarded prior to meetingso That materials include page numberso That materials and information be available via website and/or

electronically.


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Delaware Workforce Investment Board

State Energy Sector Partnership Team MeetingSeptember 15, 2009 - 9 a.m. – 11 a.m.

Delaware Economic Development Office

Meeting Objectives: Continue State Energy Partnership Team’s Planning Process Review Discussion Draft of Team Deliverables; Assign responsibly Establish schedule to fulfill planning deliverables as well as to finalize

grant document for submission.

I Welcome and Introductions 15 minutesState one goal you think this partnership should focus on.

II. Staff Update 10 minutes

III. Review of Deliverables and Discussion 1 hour Discuss Deliverables and Determine Assignments

IV Review Draft Charter Outline 10 minutes

V. Establish planning/grant development schedule 15 minutes

VI. Next Steps 10 minutes


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State Energy Sector Partnership TeamDeliverables for Discussion

Grant Language: “The Department strongly encourages applicants to engage in a comprehensive strategic planning process prior to submitting an application for this SGA”

1. Grant Language: “Review and analyze the Governor’s overall workforce vision and goals, energy policy and, if available, specific policies for energy efficiency and renewable energy industries;” “Establish the State strategic vision and goals for preparing an educated and skilled workforce to meet the current and emerging needs of the energy efficiency and renewable energy industries [italics added], and aligning those efforts with overall workforce development, education, and economic development;” Articulate a vision/mission for Review and analyze the Governor’s overall

workforce vision and goals, energy policy and, if available, specific policies for energy efficiency and renewable energy industries;” (Accept DNREC Narrative as basis for inclusion in grant).

Establish the State strategic vision and goals for preparing an educated and skilled workforce to meet the current and emerging needs of the energy efficiency and renewable energy industries.

Suggest: Mission: The Delaware State Energy Sector Partnership (SESP) creates, fields, maintains, and promotes an integrated statewide workforce development system which prepares job seekers and workers for success in Green Increased Demand Occupations, Green Enhanced Skill Occupations, and Green New Emerging Occupations, which are in demand by employers now and in the future Purpose: This mission is part of a greater statewide effort to move Delaware toward an economy based on energy efficiencies, research and development of green technologies.Method. The SESP will use a DOL energy sector grant as its ignition point to bring together training partners, business partners, workforce developers, leaders and other stakeholders to create a system, which identifies: •Employer needs; Job seeker development needs; Training curriculum to bring the two together; An employment exchange system to act as the facilitator between the two, An aggressive outreach methodology that identifies employer needs and acts as a catalyst for curriculum development. [NOTE # 4 below fleshes out the ‘how’ of this global statement.]

Identify, describe and expand as needed alignment among workforce development, education, and economic development entities. (Staff to identify and describe existing Delaware grants e.g. NEG, WIA, Energy and opportunities for alignment).

Develop Goals and timeline for the grant.


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Grant Language: “Analyze and determine the sectors where investments are or will be made and the occupations and skill needs within the energy efficiency and renewable energy industries that will be targeted;”

The Team has identified the following industries as its focus: Alternative Energy Research and Development

o Energy Efficiency vehicleso Manufacturing and productiono Biofuels

Energy Efficiency Deconstruction

Confirm the selection and prioritize these industries so that the grant is focused upon the grant’s purpose: “The purpose of these green job training grants is to teach workers the skills required in emerging energy efficiency and renewable energy industries.”

3. Grant Language: “Analyze and determine the populations that will be targeted, the characteristics of those populations that have specific workforce challenges or could benefit from specific sector strategies, and training activities that address the needs and demands of those targeted sectors and target populations…” Identify specific populations that will be targeted (define demographics etc.

(Staff function once Team determines special populations.) Develop strategy for workers affected by auto industry

o Establish dialogue with industry partners to learn needs, resources targeted already by industry and a strategy to reconnect these workers using industry provided and grant provided resources.

4. Grant Language: “Develop an energy sector strategy for training workers in the energy efficiency and renewable energy industries, and propose training activities that lead to employment in targeted industry sectors. The strategy should include delivery of training services through local and regional project teams, led by local WIBs or regional consortia of Boards and their One Stop Career Center delivery systems, along with appropriate partners that will deliver training. This includes a plan for how funds will be distributed to those project teams”

Identify targeted Occupations and Skill Needs – (Staff function - LMI resources, Focus Groups)

For each ‘green’ industry determine which occupations to focus training resources upon. (Staff to: quantify current and potential openings and training slots by industry, identify feasible training and worker readiness approaches.)

Provide guidelines and/or decide how resources opportunities will be distributed geographically.

Determine how local input will be obtained by the Team At the Executive level determine project teams, that is, what staff in what

agencies will lead different components. Develop a Charter. (See Outline)


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State Energy Sector Partnership Team Charter

Grant language: “Submit a Charter, not to exceed 5 pages, that includes the purpose, goals, and key functions of the SESP to be performed throughout the life of the grant. The Charter must be signed by each member and include their name, title, and organization.”

The charter represents the signatories agreement that they will participate on the Team, direct their organization activities to support the goals of the grant and the energy plan and provide oversight to the ongoing activities. Done right, the Team will be a key driver for sustainable activities for green industries after the grant expires. (36 months from award)

Suggested Components

1. Preamble (Vision)

2. Purpose statement for Charter and effort

3. Goals: Succinct statement of what the Team hopes to accomplish in the selected industry sectors

4. Functions Connect with other agencies Direct agency/member staff to cooperate and coordinate activities Provide oversight to grant activities Constantly work at keeping industry partners engaged Develop strategy to remain a viable Team after the grant expires. Collect state and local information. Coordinate Delaware agency efforts to maximize the efficient use of all

resources to promote an integrated energy strategy.

5. Commitments of Members Participate and attend meetings Stay engaged throughout grant Share information about existing activities, grant, and relationships related

to energy efficiency and renewable energy

6. Membership Member roster Designees and authority of designees Appointment authority (DWIB)


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State Energy Sector Partnership and Training Grant

Suggested Tasks for Staff - Discussion DocumentSuggested Assignments and Assignments in Red

i. Review and analyze the Governor’s overall workforce vision and goals, energy policy and, if available, specific policies for energy efficiency and renewable energy industries;

Flesh out or elaborate on the Governors energy policy. This component is important as the grant highly values applications that describe grant activities that are aligned with the Governor’s vision. This is the starting point for the grant’ sector plan.

Renewable energy as a long term goal should be addressed (assuming it is part of the Governor’s vision)

List and describe the current energy initiatives (e.g. WIA, Energy, Transportation, etc.) that DE is involved that access state or federal funds. and describe current or proposed linkages with the State Energy Sector Partnership and Training Grant.

Phil Cherry DNREC – working on a subsequent document that includes the other industries identified.iii. Analyze and determine the sectors where investments are or will be made and the occupations and skill needs within the energy efficiency and renewable energy industries that will be targeted

A labor market analysis that analyzes the above occupations (openings, projected growth of jobs and industry with a emphasis on the industries selected (i.e. Alternative Energy, Research and Development(R&D Energy Efficiency Vehicles, Fuel, R&D Manufacturing, Production, R&D Biofuels), Energy Efficiency, Deconstruction)

Using the O’NET list of occupations identify the key occupations that align with the selected industries and identify those occupations for which training is available. For the targeted industries what are the skill needs and what current trainings/providers in DE. Related costs and capacity.

Using the O’NET list of occupations identify the key occupations that align with the selected industries and identify those occupations for which training is not available. Identify potential providers and certification available (if applicable)

For current trainings what certifications are offered and what is the approximate cost.

Bill Potter will be liaison with DET-LMI office. Recent LMI grant may have much of this information in the first 3 bullets.Background Information:The energy-efficient building, construction, and retrofit industries;The renewable electric power industry;


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The energy efficient and advanced drive train vehicle industry;The biofuels industry;The deconstruction and materials use industries;The energy efficiency assessment industry serving residential,commercial, or industrial sectors; and,Manufacturers that produce sustainable products using environmentally sustainable processes and materials.Other occupations: For a copy of the O*NET report and a listing of the identified occupations go to: http://www.onetcenter.org/reports/Green.html

iv. Analyze and determine the populations that will be targeted, the characteristics of those populations that have specific workforce challenges or could benefit from specific sector strategies, and training activities that address the needs and demands of those targeted sectors and target populations; and

Collect data and analyze the characteristics of the State’s labor force, including information on demographics, education, skill levels, workforce challenges. Create report or attachment. DET/DWIB

Identify skill gaps currently existing and those projected for the pipeline of future workers in the key green industry focus areas. May be difficult with current data but Focus groups will serve to answer

Identify and quantify any special populations that need to be served. Develop recruitment strategies. Identify potential partners. Identify necessary supports needed. Identify current registrants that could benefit from training. Dislocated workers, auto workers DWIB (Gwen)

Identify and quantify the number of auto industry workers that are impacted and identify the training needed, a projected provider and recruitment strategies. Identify potential trainings that build on impacted auto worker skill sets and that would offer job opportunities after training. DET(Bob Clarkin) DEDO (Ed Simon), DWIB

v. Develop an energy sector strategy for training workers in the energy efficiency and renewable energy industries, and propose training activities that lead to employment in targeted industry sectors. The strategy should include delivery of training services through local and regional project teams, led by local WIBs or regional consortia of Boards and their One Stop Career Center delivery systems, along with appropriate partners that will deliver training. This includes a plan for how funds will be distributed to those project teams.

The energy strategy for training workers at its most basic connects the citizen with the jobs that exist or will exist. The grant needs to describe how it will build the pipeline between the workers and the jobs. Implementation plans with roles for agency and other partners needs to be crafted both for the grant document and more importantly for the delivery of the grant services. Using the information throughout this document develop budget, and implementation plans. Assign to agency’s and staff


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http://www.onetcenter.org/reports/Green.html

DWIB, One Stop (Tom Smith)Delaware as a single State WIB has an advantage since it does not have to

negotiate with local WIBs and partners. This component is worth 20 points Identify the services by county or region that will be provided Identify local point persons (One Stop Managers?) and qualifications

that will act as the coordinator and link to the DWIB. Describe how the local needs will be communicated to and addressed

by the Strategic Partnership Team Identify local business entities that could participate as employers,

trainers, curriculum advisers.Bob ClarkinBackground: Description of local and regional project teams and the

rationale for selection of those teams. The following information must be presented for each local or regional project team. Geographic area of each local and regional partnership team, The relevant qualifications and experience of the lead staff member or co-leads from each local workforce investment board the coordination and strategic problem solving among training providers and project team, relevant qualifications and experience for each lead staff member or co-leads from each local workforce investment board(s),Project team partners and their roles. (Recruitment and training are also required but are addressed elsewhere).

General Grant Need to identify a point person to develop budget, collect and assign

costs, summarize leveraged funds and to prepare the grant budget and narrative. (Narrative may be grant writer’s responsibility).

DET Budget Officer Ms. Brooks. Narrative: Grant Writer

P Cassidy to review the focus Group Questions


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Governor Markell has set a course for Delaware’s energy policy that focuses on energy efficiency, clean energy generation, renewable energy and sustainable energy policies that increase our energy and economic security.1 As the only state in the nation participating in the Climate Prosperity Project2, Governor Markell has capitalized on the linkage between progressive energy policies and economic vitality. Delaware’s strategy is to achieve three outcomes: Green Savings, Green Opportunities, and Green Talent. The goal is to create a functioning marketplace for green products that reduce energy and water consumption, adopt renewable and efficient energy technologies, and reduce environmental impacts from energy generation and consumption. Through an array of programs and policies, Delaware is moving to incentivize residents and companies to adopt low-emission, sustainable practices as a way to improve their short and long-term financial well-being. We will then connect this demand for goods with a supply of products and services from local companies utilizing local workers. Training workers to meet this new demand is the focal point for this grant application.

In April 2009, the Governor’s Energy Advisory Council completed a year long effort in crafting a new Energy Plan for Delaware3. The goal for the energy plan was to identify where Delaware’s energy system should be headed over the next 20 – 30 years, and to identify what can and ought to be done over the next five years to move Delaware in that direction. The process of developing the energy plan was governed by six Guiding Principles that the Council established at the outset:

Increasing energy end-use efficiency and conservation Reducing the environmental impacts (footprint) of energy used and generated in

Delaware Reducing energy used for transportation Maximizing clean energy economic development opportunities Maintaining and improving the reliability and security of Delaware’s energy

systems Minimizing energy-related costs and impacts on Delaware citizens

Immediately following preparation of Delaware’s new energy plan, Congress passed the American Recovery and Re-investment Act of 2009 (ARRA) which provided clear direction and significant funding for energy related activities focusing on the same six principles applied in Delaware’s energy planning process. As such, there is a strong alignment between Delaware’s new vision for energy and the programs and policies encompassed in ARRA.

Key Findings in Delaware’s Energy planning process included:1. Delaware must focus more emphasis on energy efficiency and reduce its per

capita energy consumption. Our electrical energy consumption is the highest in the mid Atlantic area, our carbon emissions within the state from energy generation and use are relatively high compare to all of the northeast and much of

1 Governor Markell Blueprint for Delaware2 See http://www.climateprosperity.com/index.html 3 See http://www.dnrec.delaware.gov/energy/Documents/Energy%20Plan%20Council%20report%20-%20Final.pdf


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http://www.dnrec.delaware.gov/energy/Documents/Energy%20Plan%20Council%20report%20-%20Final.pdf

http://www.climateprosperity.com/index.html

the country and our reliance on vehicular transportation places our state second in vehicle miles traveled (VMT) per person only behind Montana. These statistics serve as a catalyst for change.

2. Delaware has a relatively aggressive goal for renewable energy deployment at 20% by 2019, with a 2% minimum for electricity generated from photovoltaics.

3. Delaware is leading the nation in deployment of offshore wind generation. Through a state mandated process completed in 2007, we are the only state in the nation where a Power Purchase Agreement has been signed for a project 13 miles off Delaware’s coast.

4. Delaware enjoys a national reputation as a leader in solar photovoltaic, fuel cell, vehicle to grid transport technology, biofuels and green chemistry research. As an historic hub for the chemical industry in the US, Delaware is home to corporate entities such as DuPont, W.L. Gore and GE Solar, when combined with world-class research facilities at the University of Delaware and other Delaware institutions, places us in a leadership role in these new technologies.

5. Delaware’s new and unique Sustainable Energy Utility (SEU) offers an energy services vehicle unmatched anywhere in the country. Focusing on energy efficiency and renewable energy incentives and programs for residential, commercial and industrial customers statewide, the SEU will utilize its own funding sources and those provided through ARRA to create a demand for energy service jobs and employment far exceeding current levels.

The near identical match between Delaware’s strengths and needs and the energy sectors identified in the US Department of Labor Energy Sector Partnership is remarkable. Clearly, there are differences in the temporal possibilities for job creation in each of the seven key industry sectors, but all sectors have some potential in Delaware. The need for newly trained workers in the energy assessment, energy efficiency and renewable energy sectors is large and immediate. Conversely, while the prospects for large potential employment opportunities in new, innovative manufacturing and production facilities are excellent, such expansion and job growth are dependent on technological advancements, economic constraints and market forces that are less predictable and may take more time to develop. Regardless of temporal variation or economic uncertainty related to some energy sectors, Delaware remains extremely well positioned to capitalize on employment opportunities stemming from each of the following seven industry sectors as follows:

1) Renewable Energy Generationa. Offshore Wind

Delaware has an opportunity to develop a significant wind energy industry. The state has jumpstarted the US industry with its historic power purchase agreement (PPA) between Bluewater Wind and Delmarva Power, garnering national and international attention and stimulating other states to solicit projects. This happened because the state took an active role in requiring a new, in-state power plant with a long-term contract for stable-priced power.


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As a result, Delaware has already been emulated by New Jersey and Rhode Island, with others, including Maryland, considering RFPs for offshore wind.Delaware is well positioned to take advantage of this growing industry given its first mover status, its large wind resource (almost all offshore), a long coastline with protected ports, one deepwater port, an underutilized manufacturing base, strong public support, and the nation’s leading academic research group on offshore wind power (UD). The power sector is also well positioned for wind expansion. Currently 100% of our in-state generation is derived from fossil fuels, and we are currently importing a third of our electricity due to the high costs of those fuels. The expansion of wind generation makes sense for the electricity sector to stabilize prices and reduce our high carbon risk profile.

The potential for new jobs in Delaware stemming from offshore wind opportunities are many and varied, and include: Bluewater Wind (Newark): During the project development phase, two permanent DE employees, approximately 50 consultants, analysts, public relations, etc and about $10M spent, to develop project and contract. During construction, 400 – 500 skilled and technical jobs ramping up over a three-year period during engineering and construction, then dropping to approximately 80 permanent employees for operations & maintenance of the facility over its 25 year project life. Port of Wilmington (Wilmington): Offloading imported components from deepwater ships, loading onto barges to carry to assembly site. Claymont steel (Claymont): Potential for manufacturing sub-surface piles. Would require equipment for bending steel plate into 15’ diameter tube. Not currently contracted with Bluewater. Unknown employment impact. Philadelphia Gear (New Castle): A manufacturer of large, high precision gearboxes such as those for wind turbines. The company has a new 44,000 sq.ft. facility with enhanced 1500 horsepower test stand capability and 25 ton crane capacity. DelStar Technologies (Middletown): Produces a high performance fabric used in the manufacturing of wind turbine blades.

Given the expanse of offshore wind resources off Delaware’s coast, Delaware could become totally energy sufficient and meet the 2% annual growth in electric demand by adding 2,100 MW of offshore wind capacity over a 10 year period. That is the equivalent of 5 Bluewater wind sized projects (current economic assumptions are based on one 450 MW project). Correspondingly this would dramatically increase the job creation and sustainability of the work force.

b. Solar Photovoltaics Sunlight can be used for generating electricity, heating and cooling of buildings, domestic and process water heating, and pool heating. These


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approaches have been aggressively implemented in Europe over the past decade and, in many ways, the US is still a developing country with respect to solar energy. Delaware is in an excellent position to benefit from the expected growth in the solar energy field. It has several key players in research, manufacturing, and education, such as GE Energy, DuPont, the University of Delaware, and Delaware State University. In addition, the creation of the SEU has the potential to significantly increase the deployment of solar technologies as distributed energy sources throughout Delaware.

Prior to 2007, little photovoltaic (PV) was installed in the State. During 2007 approximately 0.5 MWpeak was installed and 2008 estimates may be 50% to 100% higher. In total, Delaware has approximately 2.0 MWpeak installed. Each MWpeak of PV generates an average of 1300MWhr of energy per year. Today approximately 0.02% of the state’s energy consumption is being met by solar.

Today approximately 300 people are employed in the solar industry in the state of Delaware. This is dominated by the 200 employees of GE Energy’s manufacturing plant in Pencader Industrial Park in Glasgow. The only other large employer is DuPont, with an estimated 40 employees. The remaining 60 jobs are in the area of solar installation, of which there are approximately 11 different installer groups operating in the state. All of the above jobs are in the area of PV solar, the direct conversion of sunlight to electricity. There is little activity in solar thermal for water or space heating, or solar pool heating which are both big opportunities for growth in Delaware.

The manufacturing base established by GE Energy and DuPont is likely to continue, as the industry has been growing at >40% per year for the past 8 years. Most recently, the industry is undergoing some difficult times as ramifications of the financial crisis are being felt, and prices are generally falling for PV equipment. Although this is good news for the consumers and installers, it may cause some consolidation of the manufacturing industry in the short term.

Growth of Delaware’s installation businesses will depend largely on the state subsidies and the effectiveness of the SEU and its ability to incentivize solar installations. Significant job growth is expected as a result of increased federal tax credits and the SEU’s expected drive to incent more solar PV systems statewide. Delaware also has a 2% solar “carve-out” under our Renewable Portfolio standard that will keep interest in PV high.

2) Energy efficient/advanced drive train vehicle industrya. Vehicle to Grid

Vehicle-to-grid (V2G) interconnects the automotive industry and the electric industry. The batteries in plug-in cars, whether all-electric or plug-in hybrid, are used for services of value to the electric system. These include balancing


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fluctuations in power (called “regulation”) for the large grid operators - in our region, PJM Interconnect. As solar and wind power increase on the grid, electrical storage in batteries will also become valuable to smooth out mismatches between renewable power output and the need for electricity (‘load’). The V2G technology was developed at UD, and UD is widely considered the leading R&D group developing it. UD has 16 researchers engaged in software development, prototype vehicle modifications, federal policy initiatives, marketing research, and policy and rate research, toward enabling V2G businesses.

Production of V2G automobiles is possible in the near term. AutoPort (New Castle) has the capability to process 250,000 “light conversions” per year, or several thousand of the more extensive conversion of gasoline to electric vehicles and has been doing some V2G work already. A second project, underway and funded, will place about 6 vehicles in local fleets, all controlled by a server to respond to the PJM signal as a group. Furthermore, negotiations are currently underway for an assembly facility in Delaware to refit gasoline cars to be fully electric cars with built-in V2G capability. This would satisfy back orders for about 10 electric cars and would provide in-state capability to produce electric cars for experiments and niche markets—up to 1,000 per year.

It is plausible that over next 20 years up to 50% of the automobiles in the state would be either fully electric or plug-in hybrid, and 70% of those, or 35% of the automobiles in the state on V2G contract. Short-term business in years 1 – 10 could include production at rates of 100 to 5,000 vehicles per year that are customized for V2G, requiring skilled workers to make the conversions.

b. Hydrogen Fuel cellsThe fuel cell and hydrogen industry in Delaware is vibrant and active. Two major industry suppliers of fuel cell components, W. L. Gore and Associates, Inc. and E. I. Du Pont de Nemours, Inc. are headquartered in Delaware. These two companies together account for the majority of the membrane electrode assemblies (the heart of the polymer electrolyte fuel cell) provided for fuel cell systems made today. Additionally, Ion Power is a local small business that supplies materials for fuel cells. In the hydrogen production/distribution arena, Air Liquide houses its North American research facility in Newark and has a hydrogen facility filling station at their site.

Delaware also has a good regional location, with numerous major fuel cell industrial suppliers within ~100 miles: Air Products, Inc in Allentown, PA, (hydrogen), BASF in Iselin, NJ, (catalyst materials), and Johnson Matthey, Inc. in West Chester, PA. (catalysts and MEAs), Arkema, Inc. in Philadelphia, PA, (membrane materials), and Millennium Cell, Inc. in Eatontown, NJ (fuel cell systems). The total employment in fuel cell related businesses within


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these companies is currently many hundreds, with the potential to grow too many thousands within 10-15 years.

By mid-century, the fuel cell industry will likely be a multi-billion dollar industry with products in automobiles, portable electronic products like laptops and cell phones, and stationary applications like backup generators and/or home power stations. With proper stewardship, Delaware could be the home to tens of thousands of high paying, manufacturing and fuel cell related jobs in the next 20-30 years.

3) Manufacturers that produce sustainable products using environmentally sustainable process and materials

Delaware has a long tradition of leadership in the chemical industry with business titans including DuPont, Ashland/Hercules, WL Gore, and AstraZeneca. Each of these companies are beginning to explore more sustainable business practices, including replacing traditional petroleum inputs with renewable resources such as corn or soy, and the potential product lines are virtually endless. A nascent initiative has been launched by Hercules and the University of Delaware to pull together the various components of the industry value chain to create a national model collaborative.

The University of Delaware is also working with industry to lay the foundational research necessary to accelerate product development. Several Federal and State grants have been received for the study of sustainable membranes, cellulosic materials, etc. There are already more than 15,000 employees in the chemical industry in Delaware with potential for significant growth as new markets and products are developed, commercialized and produced.

4) Biofuels (production opportunity)Info needed

5) Deconstruction and materials usea. Recycling/Reuseb. Construction/Demolition Debris Reuse

Need info

6) Energy-efficient building, construction, and retrofitThe Governor’s Energy Advisory Council has recommended an increased focus on home energy efficiency and determined a cost-effective level of retrofitting (averaging approximately $1,000-2,500) – insulation, air sealing, and replacement equipment – can result in an average savings of 25-30% on the heating and cooling portion of homeowners bills. Such savings also translate into similar carbon and other criteria pollutant emission reductions. In addition, building new buildings, whether residential, commercial or


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institutional, to higher energy savings standards, such as LEED, can result in significant savings in the built environment. Delaware, through our ARRA State Energy Program (SEP) grant submitted to US Department of Energy, has identified a goal to upgrade ~6,500-15,000 houses annually through 2012. through SEP and

Funding for energy efficiency improvements for small businesses, commercial firms and Delaware industries is another area in need. To remain competitive, Delaware businesses need to be as efficient as possible and to reduce their energy consumption and costs for energy to maintain profitability. The recent Delaware Energy An$wers Business Program provided grants for business enterprises to audit their facilities, install state of the art lighting systems, replace outdated refrigeration systems, HVAC improvements, motor and process efficiencies, and similar measures. We propose another significant portion of ARRA SEP funding be directed to upgrade between 500-1,000 businesses statewide.

7) Energy efficiency assessment industryExisting homes will be the majority of our housing stock for a long time to come. These homes are all in need of some level of energy efficiency improvement, regardless of income level.

A significant portion of Delaware ARRA funds will be used to defray the costs of required home energy audits and provide funding for the installation of energy efficient HVAC equipment, insulation, energy efficient windows, and other energy-related home improvements through the establishment of a Home Performance Program operated by the SEU. Similarly, the state weatherization program, serving lower income communities through out the state will be investing $14Million in weatherization services with a goal of serving ~5-10,000 households through weatherization program, adding to the need for more employees to conduct home audits and to identify areas ripe for these energy efficiency investments.

Looking at the efficiency assessment and energy efficiency retrofit industry as a whole, including small-scale distributed renewable energy generation, and estimating the impact ARRA funding will likely have on investment and job growth in these combined sectors, yields a substantial possibility for job growth. Table 1 shows the number of jobs expected through investment of ARRA dollars in the residential, commercial and industrial sectors, leveraged resources and expected investments and savings.

Table 1. Jobs, leveraged resources and annual savings for ARRA investments

Jobs Ratio Leverage Avg SEP $/ Avg Total Avg individ. Delaware Energy Partnership Team Report

September 15, 200921

(Direct & Indirect) participant Investment annual savings

Residential Efficiency 21.5/$1M4

30% Fed Credit $1,500 $1,950.0 $1,300

Commercial Efficiency 17/$1M (est.)

30% FED Credit $7,500 $9,750.0 $6,500

Renewable Energy 5.6/$1M530% ITC + 45% Private $8,000 $32,000 $2,667

Public Institutions 17/$1M (est.) none $100,000 $100,000 $66,700

Proposed Investment

Leveraged Investment

Direct & Indirect

JobsTotal savings

from SEP ParticipantsResidential Efficiency $12.5 M $16.25 M 349.4 $10.8 M 7500-15,000Commercial Efficiency $5M $6.5 M 110.5 $4.3 M 500-1000Renewable Energy $4.5M $18 M 100.8 $1.5 M 300-600Public Institutions $2M $2 M 34 $1.3 M 20

4 http://www.apolloalliance.org/downloads/resources_ApolloReport_022404_122748.pdf5 http://rael.berkeley.edu/old-site/renewables.jobs.2006.pdf


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http://rael.berkeley.edu/old-site/renewables.jobs.2006.pdf

http://www.apolloalliance.org/downloads/resources_ApolloReport_022404_122748.pdf

Grant Language (italics added)

SESP Membership. The SWIB will determine and coordinate membership of the SESP, which will reflect the State’s targeted industries as referenced in Supplementary Information, section B of this SGA. State Workforce Investment Boards may already have existing relationships with the required partners and suggested partners mentioned below through their Board representation and should invite those individuals to serve on the SESP, as appropriate. To be able to effectively develop and implement industry training strategies across the State, individuals serving on the SESP should be senior level and have decision making authority over their organization’s activities and resources.

In forming the SESP, the State Workforce Investment Board is encouraged to continue strengthening and expanding their existing partnerships, as well as identify and address any gaps among the required and suggested partner organizations outlined below.

Applicants must assemble a comprehensive and representative partnership reflecting the energy efficiency and renewable energy industries within the State.

The SESP is made up of representatives from the State Workforce Agency, local WIBs or regional consortia of WIBs and One Stop Career Center delivery systems, and at least one representative from each of the following required categories:

State Cabinet officials from agencies (e.g., State Energy Office) receiving Recovery Act funding related to relevant energy efficiency and renewable energy resources and other green occupations and industries in the State;

Representatives from the energy efficiency and renewable energy business and industries, such as public, private, or non-profit employers;

Labor organizations, including labor-management training programs.

The SESP is encouraged to include additional members from each of the following categories:

State Apprenticeship Agencies (SAAs) or the USDOL Office of Apprenticeship (OA) in states where OA is the registration agency for registered apprenticeship programs;

Nonprofit organizations including community and faith-based organizations;The education and training community, which includes the continuum of

education at all levels from secondary schools to community and technical colleges, four-year colleges and universities, apprenticeship programs, technical and vocational training institutions, and other training entities;

State and Local veterans’ agencies and local veterans service organizations; andEconomic Development organizations


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DELAWARE ECONOMIC DEVELOPMENT OFFICE – DOVERSEPTEMBER 15, 2009

STATE ENERGY SECTOR PARTNERSHIP TEAM MEETING

ATTENDANCE

NAME COMPANY ADDRESS PHONE FAX EMAIL ADDRESSBrunswick, James

Delaware Natural Resources & Environmental Control (DNREC)

89 Kings HighwayDover, DE 19901

(302) 739-9040

[email protected]

Cassidy, Pat

The Workforce Resource Group

125 Edgewood RoadTowaon, MS 21286

(443) 824-4833

[email protected]

Cherry, Phil

DNREC 89 Kings HighwayDover, DE 19901

(302) 739-9000

(302- 739-6747

[email protected]

Clarkin, Bob

DOL/Employment & Training (DET)

4425 N. Market StreetWilmington, DE 19802

(302) 761-8102

(302) 761-6617

[email protected]

Crumlish, Ed

New Castle County Vo-Tech School District (NCCVTSD)

1703 School LaneWilmington, DE 19808

(302) 683-3646

(302) [email protected]

DiPasquale, Nick

Duffield Associates

128 W. Market StreetGeorgetown, DE 19947

(302) 854-0100

(302) 854-0105

[email protected]

Dupont, Mimi

Delaware Technical & Community College – Owens Campus (DTCC)

Post Office Box 610Georgetown, DE 19947

(302) 855-5923

(302) 855-5982

[email protected]

Henderson-Wright, Jacquita

Delaware Technical & Community College – Wilmington

333 Shipley StreetWilmington, DE 19801

(302) 657-5112

(302) 434-5542

[email protected]


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mailto:[email protected]







DELAWARE ECONOMIC DEVELOPMENT OFFICE – DOVERSEPTEMBER 15, 2009

STATE ENERGY SECTOR PARTNERSHIP TEAM MEETING

ATTENDANCENAME COMPANY ADDRESS PHONE FAX EMAIL ADDRESS

Jones, Gwen

Delaware Workforce Investment Board (DWIB)

4425 N. Market Street, 4th FloorWilmington, DE 19802

(302) 761-8161

(302) 762-2138

[email protected]

Kitto, David

Local Union #42 Insulators

1188 River RoadNew Castle, DE 19702

(302) 328-4203

[email protected]

Lampton, Cara

DNREC (302) 739-9075

[email protected]

Nagyiski, Crystal

DNREC (302) 739-9909

(302) 739-1174

[email protected]

Potter, Bill Delaware Workforce Investment Board

4425 N. Market Street, 4th FloorWilmington, DE 19802

(302) 761-8163

(302) 762-2138

[email protected]

Quindlen, Steve

DEMEP 400 Stanton-Christiana RoadNewark, DE 19713

(302) 283-3131

(302) 283-3137

[email protected]

Root, David

Delaware Economic Development Office (DEDO)

99 Kings HighwayDover, DE 19901

(302) 672-6853

(302) 739-2027

[email protected]

Jeffrey Bross

Duffield Assoc. 5440 Limestone Road Wilmington DE 19947

(302) 239-6634

[email protected]


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