Monterey, California September 4, 2014 Creating a Statewide Workforce Program Leveraging a National Initiative

2 Overview National and State Context Role of EIEE Workforce Strategy Action Plan for California Integration into Sector Strategy Conclusions

20% energy reduction in commercial buildings by 2020 Reduce companies’ energy bills by $40M a year Save energy by reforming outdated incentives National Initiative 3

The Need in California State Mandate: 50% of existing commercial buildings Zero Net Energy by 2030 Commercial Space: Built environment: 5 billion square feet statewide HVACR Performance: 42% of energy consumption in commercial buildings HVACR Workforce: 58,000 incumbent workers 2,000 job openings annually through HVACR – Heating, Ventilation, Air Conditioning, & Refrigeration

Commercial Energy Efficiency Case Study: The Aventine Building in San Diego Investment of $750,000 Yielded: $5.4M increase in building value 40% reduction in annual utility expense savings Under 3-year payback period 611 metric ton reduction in CO2 886,509 kilowatt reduction in electricity usage Reduced site energy use intensity to 25 (kBtu/sf) from 42 (kBtu/sf) Reduced annual water consumption by 47% or 1,243,923 gallons 5

Market Adoption Barriers 6

California’s Workforce Challenge Workforce Required? 7

Mission: Increase energy efficiency market adoption rates to meet California’s mandates for commercial buildings Principals: Carlos Santamaria Program Development Kevin O’Brien Technology Bill Stock Regulatory Advisor: Jim Caldwell Workforce 8

Vision 9 The Executive Institute’s Vision – Implement a realistic, yet attainable strategy of preparing the industry for AB 32 Zero Net Energy compliance Create workforce programs and initiatives that provide a structure of “Zero Net Energy Readiness” Enable the workforce and industry to be ready for and more easily adopt new skills and technologies Resulting in significant on-going savings NOW - until the time emerging technologies cost effectively take us to ZNE levels

California Workforce Initiative 10

Workforce Gaps Investment Quality Compliance Certification 11

Education & Training Gaps Misalignment with Industry Lack of Capacity Gaps in Standards Training Component vs System Focus Inconsistent Programs 12

Building Owners and Managers Facilities Managers Energy Managers Architects Engineers Sales and Distribution Energy Auditors Building Contractors Installers HVAC Technicians Sheet Metal Workers Building Inspectors Building Operators Building Operations & Maintenance Contractors HVAC Maintenance Technicians Purchasers Specifiers Sales Installation Permitting Operations & Maintenance Value Chain Where to Focus? 13

Strategic Positioning Building Operators Address entire value chain Inform investment decisions Balance tenant needs & energy savings Drive compliance & quality Manage building as an integrated system Oversee construction 14

15 Building Owner Perspective Current Focus: Fighting anti-business legislations Energy efficiency: Not a priority investment for most owners Need additional knowledge about: Cost savings Increased asset value Regulatory factors - building code, utility rates, cap & trade Contribution to regional economies Need greater confidence: Return on investment Compliance Life cycle cost control What’s the workforce solution?

16 Job Task Analysis (JTA) Department of Energy (DOE) National Institute of Building Sciences (NIBS) Nationally, DOE Recognizes Need for Increased Skills in Energy Efficiency - Focused on Five Key “Energy-Related” jobs: 1.Building Energy Auditor 2.Building Commissioning Professional 3.Building Operations Professional * 4.Energy Manager 5.*Facilities Manager *Focus on Government Facilities and Federal Buildings Personnel Training Act 16

17 WHY? Improve quality and reduce confusion and uncertainty in commercial workforce training and certification programs Accelerate energy savings, carbon reductions, and clean energy job creation Job Task Analysis (JTA) Department of Energy (DOE) National Institute of Building Sciences (NIBS)

18 Job Task Analysis (JTA) Department of Energy (DOE) National Institute of Building Sciences (NIBS) Building Operator Job Task Analysis Support Investment Decisions HVACR Performance Analysis Investment Analysis Contractor Evaluation Manage Installation Project Management Quality Installation Initial Compliance Assure Energy Efficiency & Sustainability Whole Building Integration Quality Maintenance Ongoing Compliance Tenant Comfort Life Cycle Management Ongoing Expense Reduction

19 The Workforce Solution Educated Owners Certified Workforce Certified Contractors High Performance Building Operators Increased Market Adoption HVACR Performance Analysis Investment Analysis Contractor Evaluation Project Management Quality Installation Initial Compliance Sustainable Outcomes Priority Investment --- Confidence Whole Building Integration Quality Maintenance Ongoing Compliance Life Cycle Management Ongoing Expense Reduction

20 Success Factors for Statewide Strategy Programs that Accelerate: Development of Zero Net Energy “Readiness” Knowledge and Skills Industry-recognized credentials aligned with ZNE Readiness Investment incentives for building owners and contractors Energy Efficiency upgrade projects Workforce development Statewide alignment of education/training with industry needs Regional collaborations to develop qualified workforce

Implementation Plan 21 Complete Pilot Training, Refine Curriculum Develop Pilot Program Complete Pilot Course Curriculum Develop Expansion Program Define Program Framework & Cultivate Advisory Council High Performance Building Operations Professional Phase 1 Phase 2 Phase 3 Replication & Scaling

Overall Sector Strategy Engagement of Building Owners and Managers Regional Workforce Implementation Partnerships High Performance Building Operator Development Contractor Training & Certification Alignment of Education and Training Programs 22

Conclusions 23 Requirements for Translating the National Initiative: Alignment with state mandates Savings Now Through “ZNE Readiness” Strategy Strong local alliances & capable leadership Capacity for replication and scaling Local Success Factors: Commitment to AB 758 goals as the primary outcome Market adoption as a workforce priority Strategic occupational focus Integration into sector strategy

Questions 24

Thank you Jim Caldwell Statewide Director & Sector Navigator Energy Efficiency & Utilities California Community Colleges 25 Carlos Santamaria Principal Executive Institute for Energy Efficiency