Job opportunities in fossil fuels and renewables

The energy sector—both traditional fossil fuels and renewables—is being trumpeted as an important source of jobs for U.S. armed forces veterans.  Energy as an area of growing employment for all Americans has been linked to the surge in natural gas development and the push by the federal government and many states to increase the use of alternative energy, primarily wind and solar.  But concern about the fate of military veterans tends to get strong press coverage because service to country should not be welcomed at home by unemployment. 

Unfortunately, that is what many vets are facing.  Since September 11, 2001, more than 2.5 million American men and women have served in Iraq and Afghanistan.  As the United States continues to wind down its mission, the veteran population increases while the rate of employed veterans does not.  Over the next several years, about 1 million men and women are expected to leave the military.  While the nationwide unemployment rate for 2013 was 7.4 percent for all Americans, the unemployment rate for post-9/11 veterans was 9.1 percent.  Within the overall veteran population, the unemployment rate was particularly high for those in productive age ranges—14.2 percent for veterans 18 to 24 years old and 10.1 percent for those 25 to 34 years old.  In 2012, the Department of Defense spent nearly $1 billion on unemployment insurance for veterans.

The federal government provides many programs to assist veterans, including providing career training through the Veterans Administration and preferential hiring for government jobs.  The promotion of energy-related jobs is a relatively new development.  Moreover, it is not a direction that is favored by all.  For example, in 2010, the House of Representatives overwhelmingly passed the Energy Jobs for Veterans Act.  This bill would have provided competitive grants to three states for pilot programs to make grants to energy employers and labor-management organizations that provide training, apprenticeships, and certification to eligible veterans.  But the bill failed in the Senate; primarily because Republicans were unconvinced that similar federal job programs for veterans are succeeding and saw no reason to further deplete the budget when the benefits are uncertain. 

Training before discharge

The reluctance of the federal government to expend funds to expedite energy employment for veterans has been countered somewhat by initiatives by the private sector to put veterans into energy-related jobs.  For example, the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada (UA) has created the UA Veterans in Piping (VIP) program, which it describes as “one of the only programs of its kind that prepares service members for a job prior to military discharge.”  According to Christopher Haslinger, director of training for the UA, the program comprises 18 weeks of specialized, intensive training in such marketable skills as welding and heating, ventilating, air conditioning, and refrigeration (HVACR).

“We also provide participants with additional skill training opportunities after they complete this program by connecting them to our established apprenticeship training programs, which are recognized in the industry as the best in the business,” said Has linger at a House hearing.  “On top of all this, these individuals can earn college credit along the way for this training that can be applied toward a college degree.” 

The UA Program is now operating in California, Colorado, Texas, and Washington, said Has linger, “at absolutely no cost to the military, the government, or participants because all costs are paid by the UA and our contractors.”

Haslinger listed several additional energy avenues that might be available to veterans with HVACR skills:

• Shale gas development is expected to provide 2.5 million jobs by 2015, a 40 percent growth from 2012.
• Thousands of miles of antiquated oil and gas pipelines in this country have exceeded their life expectancy and need to be replaced because they pose serious public health and safety risks. 
• Green building initiatives involve retrofits of building stock, especially in urban areas.
• “Vast possibilities” exist in nuclear energy, clean coal and carbon capture technology, and alternative and renewable energy development.  

Company programs

Energy companies have also set up programs specifically for veterans.  For example, Baker Hughes Incorporated, a supplier of services, products, and systems to the oil, natural gas, and geothermal industries, has a Veterans Resource Group.  The company has 58,000 employees worldwide, with more than half working in the U.S.  According to Mike Nasche, chair of the group and a veteran of Operation Iraqi Freedom, Baker Hughes has long sought veterans for fieldwork jobs, where the value of their experience is easily apparent. 

“Mechanical assembly, field operations, machining, repair and maintenance, and logistical coordination all fit within this category,” said Nasche.  He added that in 2013, Baker Hughes conducted a total of 60 military recruiting events, translating into 175 hires, with many more hires coming through traffic driven to the recruiting website.  “Our intention is to double that number in 2014 —essentially to hire a veteran a day,” said Nasche.

A spokesperson for Little Red Services (LRS) also said his company works to provide “meaningful” energy jobs for which veterans appear particularly well suited.  LRS is an oil field services company with 160 employees that operates primarily in Alaska.  According to Douglas Smith, LRS’s president and CEO, the company has seen increased opportunity in Alaska, but has encountered difficulties expanding its workforce.  Smith noted that the business requires operating discipline and attention to detail since employees connect equipment to producing wells and must control that equipment.  After training covered by the GI Bill, veterans have been a valuable resource to the company in jobs involving welding and driving, for example.  Smith testified that in the last year, LRS hired 12 veterans who served in Iraq and Afghanistan  “Combined, these men have accumulated 106 years of service to our nation when we needed them most, and now it’s our turn,” said Smith.

Solar takes lead

Comparable and perhaps greater opportunities are developing for veterans in the “clean energy” and transportation sectors.  In general, these types of jobs are on the upswing, according to the Environmental Entrepreneurs (E2), which describes itself as a “non-partisan business group.” 

In a report, E2 said more than 78,600 clean energy and clean transportation jobs were announced in 2013 in 46 states.  California led the list, with 15,400 jobs.  Texas was also a leader, with 3,200 jobs coming from eight projects, most of them wind.  Over the past 2 years, E2 says it tracked more than 500 announcements that could create more than 186,500 jobs.  E2 notes that the 2013 figures were 30 percent under those from 2012.  The drop was attributed to the continued low cost of natural gas as well as “attempts by renewable energy opponents to block or roll back favorable policies at the federal level and in numerous states.”

At the hearing, the opportunities for veterans in solar energy were discussed by Nat Kreamer, the CEO of Clean Power Finance, which provides financing and software to the U.S. solar industry.  According to the Solar Energy Industry Association, solar accounted for 29 percent of all new electricity generation capacity in 2013, up from 10 percent in 2012.  This made solar the second-largest source of new generating capacity behind natural gas.  

“The industry’s growth is translating into more domestic jobs,” testified Kreamer.  “Specifically, the U.S. solar industry added approximately 24,000 domestic jobs in 2013, increasing the number of Americans working in solar to approximately 143,000, according to the non-partisan and non-profit Solar Foundation.  In addition to the 143,000 Americans working for solar companies, many thousands more work for companies providing goods and services to the U.S. solar industry.  Today, more people work in the U.S. solar industry than in the U.S. coal industry—a win for our economy and environment.”

Kreamer, who fought with the U.S. Special Forces in Afghanistan in 2006, said he came home to found SunRun, a solar company. 

 “Veterans are building the U.S. solar industry because we view it as our patriotic duty to serve the nation,” testified Kreamer.  “For example, while fighting in Afghanistan I realized that we had to cut off funding sources to terrorists and insurgents to permanently win the war.  Using renewable energy at home denies jihadists the petro-dollars they use to buy bombs and bullets.  I got ‘religion’ about renewable energy fighting in Afghanistan.”

Experience a concern

Kreamer referred to Veterans in Solar, a February 2014 document published by The Solar Foundation, which the foundation describes as the “first-of-its-kind report that shows that veterans are employed within the solar industry at higher-than-average rates, offering career opportunities to a group that has faced extraordinarily high unemployment.” 

Data reported by The Solar Foundation include:

• As of November 2013, the U.S. solar industry employs 13,192 veterans, or 9.2 percent of all solar workers in the country.
• 39 percent of veterans employed in the solar industry work in the installation sector; 27 percent work in the solar manufacturing sector; and 14 percent work in sales and distribution. 
• 90 percent of solar companies employing veterans work with photovoltaic solar energy systems or products.
• Installation firms that employ veterans pay an hourly wage of between $19.00 (median) and $21.44 (mean).  Production and assembly workers at these firms earn slightly less than installers, at $15.00 (median) to $16.88 (mean) per hour.

The report also notes that 77 percent of the companies indicated that positions added over the last 12 months required previous work experience related to the position.  The issue of similar work experience is frequently raised with regard to veterans.  The Solar Foundation believes the solar industry is currently on a learning curve regarding the qualifications of veterans. 

“Though employers have a very clear idea of the traditional qualifications desired in new solar workers and maintain higher standards than other solar companies, many still may not be aware of the value of the skills developed in the military,” says The Solar Foundation.

Information on The Solar Foundation report

Written testimony on veterans and energy jobs delivered to the House Subcommittee on Energy and Mineral Resources

William C. Schillaci
BSchillaci@blr.com