**Statement of Patricia A. Hoffman**

**Deputy Director of R&D and Acting Chief Operating Officer**

**Office of Electricity Delivery & Energy Reliability**

**Department of Energy**

**Committee on Energy and Natural Resources**

**United States Senate**

**November 6, 2007**

Mr. Chairman and Members of the Committee, thank you for this
opportunity to testify on behalf of the Department of Energy (DOE) on
the nation's domestic energy sector workforce.

Our nation's technical workforce is the backbone of our economy. These
individuals have accumulated a wealth of experience and knowledge that
cannot be duplicated overnight. If America is to remain the world's
leader in science and technology and continue to lead the world in
energy innovation, we need a vibrant workforce.

Given looming retirements in the energy workforce, success in ensuring
America's future energy security will depend on our ability to recruit,
educate, and train highly skilled workers to meet the demands of our
rapidly evolving, technology-driven energy industries. As traditional
sources of energy become more stretched by the growing demand for energy
domestically and globally, our nation's energy sector will undergo
significant changes. Energy security is undeniably linked to our
national interest. The move to diversify our energy supply from the
conventional sources of the past requires equipping our workforce with
the skills, technology, and creativity required to achieve a sustainable
energy future.

**[Electric Sector]{.underline}**

In 2006, DOE released a report to Congress on "Workforce Trends in the
Electric Utility Industry," pursuant to section 1101 of the Energy
Policy Act of 2005 (EPACT). The report examined workforce trends
associated with the electricity delivery industry, which is the primary
focus of my office, OE. For electric utilities, whose service quality
and reliability depend on maintaining an adequate, knowledgeable
workforce, managing the upcoming retirement transition is a particular
challenge.

Although the report did not forecast an immediate threat to the
reliability of the electric system, it raises awareness of the need to
plan for and proactively address this workforce transition. For the
purposes of this analysis, trends associated with electrical lineworkers
and electric power engineers were considered representative of the
broader electric utility workforce. Electrical lineworkers'
responsibilities include erecting poles and light or heavy-duty
transmission towers and installing or repairing cables or wires used to
carry electricity from the power plant to the customer; they represent
the physical labor required to operate and maintain the electric grid.
Electric power engineers traditionally focus on systems and devices for
the conversion, delivery, and use of electrical energy. These
applications enable technology enhancements that significantly improve
the capability, performance, and reliability of the entire electricity
system.

**Electric Lineworkers**

Since 2000, the electric utility industry's employment level for
lineworkers, which experienced declines from the early 1990s into the
early 2000s that coincided with restructuring of the industry, has been
steadily increasing. This hiring trend is driven by utilities'
anticipation of increased demand, and is a response to the long periods
of little or no capital investment. Utilities, concerned at the prospect
of meeting rising demand for electricity using the existing transmission
lines, have embarked upon a hiring program to provide the employees
necessary to maintain, upgrade, and expand the electric utility system.
The August 2003 U.S.-Canada blackout also focused attention on the
fragile state of the grid, which put pressure on utilities to ensure
that they were meeting reliability standards.

Growth in the industry is outpacing the number of available and
qualified personnel. In 2005, there were approximately 31
lineworker-training programs across the country, with a total of 1,360
active students in various stages of lineworker training. Should the
present trend continue, the number of pre-apprenticeship lineworker
training institutions across the country could increase to 45
institutions by the year 2015. Yet, even with the increased interest of
students in entering these training programs, the numbers may still not
be enough to compensate for the expected retirements. Across the
organizations contacted for the section 1101 report, retirement
eligibility and the percentage of the workforce expected to retire
within the next five to ten years varies from about 11 percent to as
high as 50 percent. One utility indicated that the high level of
retirements that began a few years ago is expected to persist for the
foreseeable future due to this demographic profile, which includes a
very high percentage of the lineworker and engineering workforce.

The electric industry is being proactive in addressing the lineworker
shortage by building awareness, encouraging training initiatives, and
increasing interest in the lineworker profession at an early age. It is
important to note, however, that the magnitude of the impact on
individual utilities varies significantly. Even with the addition of new
lineworkers to the labor pool, the loss of historical knowledge (and
perhaps productivity due to the more inexperienced workforce) might by
itself have a detrimental effect on the reliability and security of the
grid.

Adequate training is the key to sustaining a qualified pool of
lineworkers. Preparing a highly skilled electric utility lineworker can
require 10 to 12 years, including classroom instruction and on-the-job
experience. Potential lineworkers pass through various stages of career
development, from "Introductory Training" to formal apprenticeship
programs to on-the-job learning. Since the attrition rate is very high
for new lineworkers, these courses help orient trainees to the mindset
needed for lineworker careers before utilities make a large investment
in the employee's career development. In many cases, however, utilities
will bring trainees directly into their apprenticeship programs without
the student having completed an introductory training program.

Strong public-private partnerships are necessary to promote the energy
industry as a viable employment option, to develop strategies for
encouraging retirement-eligible workers to remain employed in the
industry, and to ensure adequate training and education opportunities.
Developing and using technology to increase productivity and fostering
knowledge transfer may also be beneficial.

One example of a successful public-private partnership, although geared
toward operator training and not lineworkers, is the Department's
designation of Bismarck State College in North Dakota as a National
Power Plant Operations Technology and Educational Center. Bismarck
State's programs in power plant, process plant, electric power,
electrical transmission systems, and nuclear power technologies will
educate and train many of our future energy sector workers. It also uses
the latest technologies via the internet and training simulations to
speed up the knowledge transfer process.

**Electric Power and Transmission Engineers**

Jobs for new power engineering graduates began declining in the 1980s
when utilities saw a decline in electric consumption, and the job market
remained challenging with deregulation in the 1990s. However, by 2001
and 2002, power engineering graduates were able to find positions at
generation companies, transmission companies, power traders, independent
system operators, independent power producers, consulting companies, and
large processing and manufacturing companies that have extensive
electrical facilities.

As detailed in the section 1101 report, the projected demand for power
engineers will grow to 11,113 by 2014, which represents an 8.1 percent
increase. The average annual demand for electrical engineers in the
electric utility industry is 749 per year for the 10 year period from
2004 to 2014. International competition and the use of engineering
services performed in other countries may limit employment growth
domestically; nevertheless, the projected strong demand for electrical
devices such as giant electric power generators could provide employment
opportunities in the U.S.

Over the past decades, there has been a decline in the United States in
the number of students considering power engineering careers. In
contrast, in many countries outside of the United States, the power
engineering profession enjoys more prestige and thus, experiences higher
enrollment levels. There are indications that the power engineering
education system in the United States is actually weakening, and the
rate of weakening will likely escalate as faculty retirements occur
without replacement. Without strong support for strategic research and
without qualified replacements for retiring faculty, the strength of the
university-based power engineering education programs will continue to
decline. This is in part because some schools do not rehire power
faculty and instead use the faculty slots to hire individuals with other
technical knowledge.

In recognition of this need to strengthen university programs, DOE
supports Gonzaga University in Spokane, Washington in developing an
online certificate program in transmission and distribution engineering
aimed at practicing utility engineers who seek to broaden and upgrade
their skills. In addition to basic electric design, construction,
operation, and maintenance courses, this program also plans to offer
courses in related disciplines that would examine the environmental and
legal aspects of electric line design, which have become inherent
components of modernizing the grid. The availability of this course
online minimizes the disruption to the engineer's work schedule and
reduces the employer's cost for the training.

**[Renewable Energy Sector]{.underline}**

The Administration, through efforts such as the *Advanced Energy
Initiative*, supports new, bold steps toward the goal of a reliable,
affordable, and clean energy future for all Americans. In the energy
sector, the enhanced use of renewable electricity generation -- from
such sources as solar photovoltaics, high-efficiency wind power, and
biomass -- would help reduce emissions of air pollutants and greenhouse
gases. It is clear that continued innovation is an important part of
unlocking our energy future.

The Department has conducted surveys of key market participants to
better understand the time required for training qualified PV
installers. These surveys indicate that the time to train a qualified PV
installer ranges from 6 weeks to 3 months if the trainee already has
basic training in a key "enabling\" trade, for example, as an
electrician or roofer.

DOE also estimates there may be additional workforce needs in the
buildings sector, including trained trades and trades management
(electrical, plumbing, HVAC techs, etc.); mid-level construction
managers and building operators/energy managers; skilled professionals
(lighting designers, building commissioners, energy auditors,
construction specifiers/purchasing agents, etc); and building
professionals (architects, engineers, designers, etc.). DOE is working
with a consortium of universities to develop multi-level,
multi-disciplinary building science curricula to support the long range
needs of the home building industry. The Department is also working with
professional organizations like AIA, ASHRAE, IESNA, and IALD to promote
the integration of efficiency technologies and practices into their
professions as well as to draw upon their knowledge as we implement our
programs.

**[Nuclear Sector]{.underline}**

The expansion of nuclear power in the United States offers our nation
the opportunity to foster continued economic growth, to raise living
standards, and to be responsible stewards of the environment by reducing
greenhouse gas emissions. DOE's Nuclear Energy Research Initiative,
which focuses on developing nuclear science and technology, recently
announced the selection of 11 U.S. university-led grant recipient teams
to receive up to \$30.7 million for cooperative research projects.

**[White House Initiative on Historically Black Colleges and
Universities]{.underline}**

The Department also supports the White House Initiative on Historically
Black Colleges and Universities (HBCUs) in developing the energy sector,
which is administered through the office of the Secretary within the
U.S. Department of Education. In the last three fiscal years, the
Department's National Nuclear Security Administration (NNSA) has awarded
41 grants to 25 HBCUs totaling over \$47 million. The grants cover
research related to the NNSA's nuclear security and nonproliferation
mission requirements, curriculum development in science and technology
programs, and infrastructure improvements.

DOE's Office of Economic Impact and Diversity also facilitates numerous
mentor-protégé relationships. This past summer, for example, the Oak
Ridge National Laboratory and Morehouse College signed the first such
agreement between an HBCU and a DOE Office of Science laboratory. The
new joint initiative will assist students in the college\'s science
programs and promote research collaboration at both institutions. Many
students from Historically Black Colleges and Universities have
participated in the Department's internship programs. Interns from
summer 2007 in our offices in Washington, DC and Germantown, Maryland,
worked on projects in nuclear energy, computer technology, radioactive
waste, energy efficiency, scientific research, and environmental
management. An additional 40 students were assigned to DOE's national
laboratories and field facilities. Finally, the Dr. Samuel P. Massie
Chairs of Excellence Program, funded by DOE, is named after an
African-American chemist of national reputation who was a leader in
championing the cause of minority education in the United States. The
program now comprises nine HBCUs that graduate more than 30 percent of
the minority engineers in the United States.

**[Meeting Workforce Demands]{.underline}**

The following are ways in which the federal government can address
future energy workforce demands in the United States:

*Foster Math and Science Education*

DOE's Office of Science has long been the dominant federal sponsor of
basic research in the physical sciences, including physics, chemistry,
and related fields. The Office of Science also supports computer
sciences, mathematics, environmental sciences, materials research,
nanotechnology, and engineering. These research programs are supported
by a dedicated effort designed to recruit, train, and retain the next
generation of Americans who are interested in science, technology,
engineering and mathematics (STEM) careers. The Office of Science,
through its Office of Workforce Development for Teachers and Scientists,
currently supports more than 600 undergraduate internship experiences at
DOE laboratories and 200 K-12 educators who work with master educators
and mentor scientists to hone their classroom skills. The Office of
Science, through its research grants, also supports the training of
thousands of graduate students and post-doctoral researchers, and has
several dedicated graduate fellowship programs in the physical,
computer, and life sciences. The Office of Science is in the process of
working with DOE offices -- including OE -- that could benefit from
focused placements of internships and fellowships in dedicated research
assignments of importance to the U.S. electric utility industry.

In addition, the Office of Science promotes science literacy and
interest in the STEM careers through the National Science Bowl, which
annually attracts 20,000 middle school and high school students to
competitions at 100 regional events located throughout the U.S., and
other efforts. One example is DOE's annual "Day of Science" at the Oak
Ridge National Laboratory in Tennessee, which this year was attended by
more than 1,000 students from 125 universities, including many
Historically Black Colleges and Universities. Students from across the
country participate in scientific presentations, innovative technology
demonstrations, and one-on-one interactions with laboratory
researchers.  Faculty from universities also participate in this annual
event and attend workshops designed to help them understand how to
compete for DOE research grants and participate in DOE's research
enterprise.

*Support Strategic Research in Engineering*

As noted earlier, university-based research and education is an engine
for innovation, exploration, and ingenuity. Curricula need to strike an
effective balance between addressing the short-term needs of industry
and promoting the strategic research necessary to maintain America's
long-term competitiveness. Without strong support for strategic research
in engineering and without qualified replacements for retiring faculty,
the strength of our Nation's university-based engineering programs will
wane, and along with them, the foundation for innovation in the energy
sector to meet our future challenges. We need to ensure adequate funding
for academic programs in energy-related disciplines to attract the most
talented students to these programs.

For instance, the Department's funding of the Power Systems Engineering
Research Center (PSERC), a multi-university, multidisciplinary National
Science Foundation-sponsored center, develops broadly trained power
engineers as well as future power engineering faculty candidates.

*Promote Interest in Energy-Related Careers*

There are significant opportunities for creativity and innovation in the
energy sector to meet the challenges of the 21^st^ century. It is
important to highlight that supporting energy infrastructure is a
national strategic priority. Federal agencies could work with the
private sector to communicate what the energy industry is about, to
emphasize the high-tech nature of future challenges, to identify the
direction the industry is moving, and to build awareness for the careers
of tomorrow.

*Capture Existing Workforce Knowledge*

Even as we grow our workforce, the loss of historical knowledge as the
so-called baby boomer generation retires, could be detrimental to
productivity. For instance, a shortfall in experienced lineworkers would
create longer restoration times after a disruption. Training, workforce
retention, and phased retirements could help mitigate any consequences.

## Develop Cross-cutting Understanding

An analysis of the interdependencies of the workforce across the entire
energy flow -- from coal miners and well riggers to electrical
lineworkers and engineers -- is required to ensure energy reliability
will not be impacted by a national shortage of skilled personnel.

The Department of Energy is partnering with the Department of Labor
(DOL) to arrive at a better understanding of energy sector workforce
issues. As Assistant Secretary DeRocco mentioned, the Department of
Energy is working with DOL to fulfill the requirements of Sections 385
and 1830 of EPACT. As you know, those sections required DOE to enter
into an arrangement with the National Academy of Sciences to conduct a
study on the availability of skilled workers in the energy sector.
Assistant Secretary DeRocco's testimony further describes this effort,
and DOE is looking forward to working with DOL and the National
Academies.

*Think Globally*

In the past, declines in the domestic science and engineering labor
force could be compensated for by attracting the best and brightest
scientists and engineers from around the world. However, with new
cutting-edge research infrastructure being built overseas, and with
strong employment prospects in several developing regions, there is
perhaps less of an incentive for students to remain in the United States
upon graduation. Statutory caps on high-skilled temporary work visas and
employment-based immigration limit the number of students and
professionals that are able to either enter or remain in the United
States.

**[Conclusion]{.underline}**

In order to maintain our economic preeminence in an increasingly
competitive world, U.S. industry *must* invest in its human capital to
ensure the next generation of skilled personnel, scientists, and
engineers capable of maintaining American leadership in critical science
and technology areas as we work to meet the energy and economic
challenges of the 21^st^ century.

This concludes my statement, Mr. Chairman. I look forward to answering
any questions you and your colleagues may have.