Earlier this year, the U.S. Department of Energy announced $24 million in funding to train workers without four-year degrees to enter the clean energy workforce. Governors from 22 states and two U.S. territories aim to train 1 million people in low-carbon energy or climate-friendly jobs by 2035, focusing on funding and partnerships New York is planning to invest $2.3 million in offshore wind training, while New Mexico aims to train 2,000 people in climate-ready jobs by 2026.

These investments are encouraging given the need for highly skilled workers to replace those who are rapidly retiring from the sector. But what can regulators and utilities do to play their part? Our blog series recapping our earlier webinars with the National Association of Regulatory Utility Commissioners continues by looking back at  “Commissioning a Next-Generation Workforce,” a panel discussion including staffers from the public utility commissions of California, Illinois, and Michigan, as well as representatives from Xcel Energy and CW Consulting Group.

The 2024 U.S. Energy and Employment Report indicates that 825,000 new energy jobs were created between 2020 and 2023, and almost half of those new positions were in clean energy. With regard to diversification of the workforce, there is still progress to be made; while more than one-third of all new energy roles in 2023 were filled by Hispanic or Latino employees, most workers in this field (73%) remain white males, and women and African Americans are underrepresented. Panelists during the webinar discussed ways to expand and diversify the energy workforce, such as messaging during outreach for benefit transparency, mandatory training programs, intentional investments in diversity, energy efficiency academies, and developing programs that provide direct pathways to energy careers.

Charles Wilson, managing partner of CW Consulting Group and a veteran of the nuclear power industry, noted that the Department of Energy projects the need for 375,000 jobs by 2035 to keep up with growth of new construction of nuclear generation. He suggested that the industry needs to bring younger people on before older workers put in their retirement papers, to better allow knowledge transfer and retention before talent is lost and to build relationships through mentorship.

Rachel Peterson, executive director of the California PUC, discussed the commission’s efforts in partnership with other state agencies to meet the priorities of Gov. Gavin Newsom’s 2020 Executive Order N-79-2, which among other things mandates utilities to engage in workforce development. “The commission’s mission is to set policy and rules for essential utility services in California, preparing the workforce for well-paying jobs in the energy sector,” Peterson noted. Various California programs are now in place to meet this need, including traineeships to install solar on multifamily affordable housing, funding for training programs such as climate careers, and a clean energy school.

The state’s utilities are prioritizing training, too. For example, the PowerPathway program run by Pacific Gas and Electric (PG&E) offers 300 hours of industry-informed curriculum, including academic, job-specific, interviewing, and physical training. The program has drawn from a diverse pool of trainees — 72% people of color, 11% women, and 40% veterans — to graduate over 1,300 people, with 86% going on to be employed by PG&E or other utilities. Similarly, the Sacramento Municipal Utility District (SMUD) provides a job portal for high school and college students to apply for internships, with college interns earning up to $25 per hour and high school students participating in six-week paid summer internships that include career development workshops.

Jeanine Robinson, director of diversity and community affairs for the Illinois Commerce Commission (ICC), discussed her commission’s role in collaborating with utilities on supplier diversity reporting. ICC Section 5-117 requires gas, electric, and water utilities with at least 100,000 customers in the state to submit annual reports on procurement goals. This includes their six largest utility companies providing detailed reports on their purchasing from diverse suppliers, including firms owned by women, minorities or veterans.

Brad Banks, an energy efficiency specialist at the Michigan Public Service Commission, discussed how his role on the commission’s low-income workgroup has evolved to involve broad stakeholders and utility engagement on workforce issues. Shortages of contractors to perform home weatherization improvements have become an issue in Michigan as in many other states, and state agencies can play a role in bringing together utilities and other stakeholders to address the shortages and get more certified contractors into the field. To do this, utilities are developing energy efficiency academies through a collaboration with Walker-Miller Energy Services, a Detroit-based company. Five cohorts have been run, and a statewide needs assessment has been conducted to identify gaps and improve the workforce.

The final panelist, Bridget Dockter, policy and outreach manager with Xcel Energy in Minnesota, discussed the creation of Xcel’s Power Up training program, a partnership with the Minnesota Department of Employment and Economic Development. In response to the challenges of the covid-19 pandemic, the Minnesota Public Utility Commission’s Docket 20-492 set out requirements for utilities to report on projects and investments that could assist in the state’s economic recovery. Xcel is investing $4 million in a skills program focusing on people of color, women, and veterans, giving participants direct access to training, apprenticeships and employment in Minnesota’s building industry for energy-related projects.

What resources are out there for policymakers? As we’ve mentioned before, RAP’s Building Modernization Legislative Toolkit is one, and it includes a full section on options states have for addressing workforce development. It notes important strategies and goals for states to keep in mind as they design their programs:

• Raise interest among younger students.
• Offer training and access opportunities for “new-collar workers.”
• Increase access to energy efficiency and building decarbonization jobs among underrepresented populations and businesses.
• Remove barriers in existing workforce development programs.
• Provide skills-based hiring connections, workforce development and community support for communities affected by the energy transition.
• Enable more “earn-as-you-learn” programs.