1. Building California’s Clean Energy Workforce Through Education and Training HVAC Sector Report by Dale Gustavson, Principal Consultant Better Buildings, Incorporated (HVAC Programs Advisor to the CPUC) December 1, 2009

2. HVAC SECTOR “Developing HVAC WE&T 2009- 2011, A Pre Assessment Inventory” »Historical Context & The Future of HVAC WE&T »Highly Collaborative Approach Adopted by California »The HVAC Industry in SCE Territory »Securing Additional Details About HVAC Industry Infrastructure »Barriers To QI, QM, and Efficiency-Yielding WE&T »HVAC Industry Initiatives Worthy of Support »Tactics for Partnering With the HVAC Industry »HVAC Industry Recommendations for WE&T Funding »Metrics for HVAC WE&T »Responsibilities of WE&T Program Administrators »Qualifications of WE&T Implementers Prepared for SCE by Better Buildings Inc., Dec 30, 2008.

3. HVAC SECTOR The HVAC Industry in CA (USA)  In a word… Fragmented! …but perhaps economically efficient?

4. HVAC SECTOR The HVAC Industry in CA (USA)  Another word… Complex!

5. HVAC SECTOR HVAC Industry – Per RFP

6. HVAC SECTOR Online Education Maintenance Brokers Controls Contractors Maintenance Consultants Mega Contractors In House Maintenance Organized Labor Technician Associations Contractor Associations Distributor Associations Manufacturer Associations Engineering Societies Community Colleges Private Schools Sales Trainers Private Schools Consolidated Contractors Contractor Alliances Consolidated Contractors Certifying Bodies Contractor Franchises Energy Consultants HERS Raters VSPs Utilities Building Science Building Departments

7. HVAC SECTOR HVAC Industry Market Actors  Manufacturers (& Assoc)  Distributors (& Assoc)  Engineers (& Societies)  Contractors (& Assoc)  Maintenance Brokers  Contractor Franchises  Contractor Alliances  Mega Contractors  Organized Labor  Training Associations  In House Maintenance  National HVAC Retailers  Colleges & Schools  Trainers/Consultants  Controls Companies  Verification Providers  Code Officials/Raters  Magazine/Book Publishers  Utilities …and more!

8. HVAC SECTOR Who Needs HVAC WE&T in CA? Non-Installer/Technician HVAC Industry Employees 25,000 (e) Installers/Technicians 40,000 (e) Licensed Contractors 16,200 (e) Major Distributors 35+ (e) Major HVAC Equipment Manufacturers 10-15 (e) Other HVAC Industry Manufacturers 35+ (e) e = Estimates from several sources including http://www.labormarketinfo.edd.ca.gov

9. HVAC SECTOR Not To Mention… Facility Management Professionals Building Engineers Code OfficialsEnergy Raters HVAC Industry ConsultantsEnergy Program Consultants Utility Program ManagersHVAC Trade Press Whole House ContractorsCertifying Bodies Mechanical EngineersRegulators, EM&V, Advocates In total, the above number in the thousands.

10. HVAC SECTOR Where Do They Turn for WE&T?  There is an old saying… “When the student is ready, the teacher will appear.”

11. HVAC SECTOR Where HVAC Students Learn HVAC Labor Union Training Centers 25+ HVAC Schools 50+ (includes energy centers) HVAC Distributor Locations 500+ HVAC Industry Associations 13 in 25+ locations Online HVAC Education, Training, and Social Networks 30+ websites Franchises, Alliances, Networks, Brokers 25+

12. HVAC SECTOR Contractor Associations Commercial Contractors Residential Contractors Organized Labor Facility Associations Facility Executives Educators/TrainersCertifiers 3 rd Party Quality Assurance Codes Officials/Assoc Manufacturers/AssocDistributors/Assoc Controls Companies Government Other Stakeholders POUsIOUs Positive 2009 Developments…  HVAC Energy Efficiency Roundtable  Western HVAC Performance Alliance »WE&T Committee Formed »Committee To Team w/Statewide  PG&E Works With SMWIA Training  SCE Solicits WE&T Proposals »20+ HVAC Industry Groups Submit »15 HVAC Groups Qualify for 2010/12 Funding

13. HVAC SECTOR (Provocative) Parting Thoughts…  Market demand for law-conforming, high- quality, efficiency-producing HVAC installation and maintenance is very small; hard to sell.  HVAC is commoditized; differentiation difficult.  Honest, knowledgeable contractors, installers and techs struggle to choose between doing work that barely gets by or doing no work at all.  “Rules-of-thumb” and “corner-cutting” now dominate (more so than science and craftsmanship); some training is wrong. It will take more than just WE&T!

14. HVAC SECTOR (Provocative) Parting Thoughts…  “More people stumble on or “fail into” the industry rather than “aspire” to the profession.” – Professor Darrow Soares  “Those who sell their own services get better at delivering those services than those who simply bid on/execute somebody else’s plan,” - The Gustavson Axiom  While there is broad-based agreement that WE&T is a high priority in CA, our investment will yield little unless we stimulate the market for the skills/jobs we seek to increase/create. It will take more than just WE&T!

15. HVAC SECTOR Building California’s Clean Energy Workforce Through Education and Training HVAC Sector Report by Dale Gustavson, Principal Consultant Better Buildings, Incorporated (HVAC Programs Advisor to the CPUC) December 1, 2009