Orange County’s spur of redevelopment projects kept environmental consultants busy in recent years. But a slowing economy could mean harder times.
The environmental consulting industry rode the housing boom of the past few years along with developers, manufacturers, retailers and other businesses. Frms were busy with environmental work such as industrial cleanup and the management of storm water runoff and waste.
Now with a slowdown in housing development, some environmental consultants have started to shift their focus.
Commercial development and government work are two areas that are still seeing projects move forward.
“Because of the slowdown, the industry is moving into public works projects and construction work related to schools, the hospitality and leisure industry and hospitals because that’s where the work is going to be for the next two to three years,” said Sam Ali, vice president of Psomas’ land development services in Laguna Hills and Costa Mesa.
Projects such as office and industrial buildings, shopping centers, hotels and resorts and golf courses are providing environmental consultants with plenty of work. Clients need help with preparing air and water quality permits, industrial cleanup and sustainable design, which can incorporate storm water and waste
management and the use of recycled materials in construction.
Government projects such as the expansion and beautification of roads and maintenance on major freeways, ports and airports also are generating more business for environmental consultants.
Psomas is working on government projects such as the construction of the Orange County Sheriff’s Training Academy in Tustin.
The 53,000-square-foot complex, which sits on 15 acres of land donated by the city of Tustin, is the first educational facility to open at the former Tustin Marine base, now called Tustin Legacy. It was created in partnership with Rancho Santiago Community College District.
The project was completed last year and cost an estimated $37 million, mostly paid for by Measure E, a $337 million bond unanimously approved by local voters in 2002 to expand and improve college facilities.
Architectural firm GKKworks in Irvine hired Psomas to help with sustainable design guidelines including drainage, landscape, parking and grading.
The college district also hired Psomas to prepare a drainage study and major city storm drain system along Warner Avenue, Ali said. Psomas used a natural water treatment system, which also recycled water for irrigation, as part of its method to treat the storm water.
Another bright spot in business: increased scrutiny over the possibility of any environmental liabilities on a project. The lack of proper preparation or cleanup of a site can lead to fines or even worse,lawsuits. That, as well as a push for sustainable development and the awareness of climate change and greenhouse gases, are fueling work for years to come.
“Regulations are growing, projects are under greater scrutiny from the public and new hot issues such as global climate change and sustainability are an increased focus for local, state and federal agencies,” said Glenn Lajoie, vice president of RBF Consulting in Irvine. “Environmental practitioners must demystify the maze and issues for all parties.”
Urban infill redevelopment, mine restoration, military munitions cleanup work, waste management projects, remediation work for industrial clients and renewable energy projects are areas that are helping the environmental industry grow during difficult times, firms said.
“As far as infill redevelopment, the pace of residential development has slowed considerably as developers have slowed projects to wait for sales to recover, but the municipal, industrial and commercial projects haven’t been impacted,” said John Lovenburg,
vice president of Denver-based CH2M Hill’s Santa Ana office. “The key to being
competitive at a time like this is having a diverse portfolio.”
CH2M Hill, which counts many clients
in the oil and gas industry, has seen
an increase in work related to cleanup, remediation, health, safety and air quality control, Lovenburg said.
More regulations and standards are
pushing companies to prepare for the full costs of cleaning up sites, Lovenburg said. Companies are being pressured to be responsible citizens when it comes their projects, he said.
“What this increased scrutiny is doing is pushing companies to be more active about environmental liabilities,” Lovenburg said. “It’s also pressing companies to come up with a more consistent approach to managing those liabilities.”
A company’s environmental liability could come down to how its daily operations impact the environment, Lovenburg said. That includes any cleaning solvents or petroleum used during the manufacturing process that could contaminate ground water, he said. A company would have to find a solution to stop or minimize its damage to the environment to avoid fines and lawsuits.
Environmental Awareness
The general awareness of the importance of maintaining a healthy environment is also helping the environmental consulting industry, Lovenburg said.
“Businesses are trying to reduce their carbon footprint to reduce the amount of green house gasses they’re letting off,” he said.
Such a task relates to sustainable design, according to Chris Lee, managing principal of Costa Mesa-based Forma.
The U.S. Green Building Council’s Leadership in Energy and Environmental Design program has helped keep environmental consulting firms busy with sustainable design projects and that should continue over the next several years, Lee said.
Engineering and architectural firms can incorporate sustainable design in the construction of buildings by using recycled or recyclable materials such as bamboo, concrete, wood and glass. Building irrigation systems that clean used water before it’s deposited into the ocean or recycles it for landscaping is another method of sustainable design, he said.
Sustainable design could also mean building less parking stalls and building more designated carpool spots and bike racks to encourage less driving, Lee said.
Building man-made lakes that treat water and provide a natural habitat for wildlife and planting local greenery and flowers are other methods, he said.
“There’s this preconceived notion that incorporating sustainable design is too expensive, but with technology more companies are offering products to engineering firms and developers that make green building cost effective,” Lee said.
Later this month, Forma plans to host its first green products trade show dubbed The Green Products Expo 2008 at its Costa Mesa headquarters. There, manufacturers of eco-friendly products and materials will be able to showcase their goods to architects, developers and engineers, according to Forma’s John McKenna.
“The goal is to raise awareness of the different green vehicles that can be used in all types of development,” McKenna said.
In addition to green building for commercial and government projects, renewable and alternative energy are other environmental issues fueling the business, firms said.
Renewable energy sources such as wind, solar and water energy should also provide more work for environmental consulting companies, according to Paul Walker, vice president of process technology at Dallas-based Fluor Corp, which has offices in Irvine and Aliso Viejo.
“Renewable energy is a hot topic right now because of demand and environmental issues,” Walker said. “More of our clients are looking for alternative and cost effective ways to use energy.”
The company is involved with a number of alternative energy projects such as building plants to produce solar grade silicon, which can be used to generate electricity for solar panels, Walker said.
“Solar panels are being used around the world and that business is booming because of new technologies and the price of oil being so high,” Walker said.
The process of gasifying coal or importing heavy crude and processing it into a cleaner burning fuel are other ways Fluor is trying to create alternative energy sources, Walker said.
“People are looking for alternative energy solutions,” he said.
Strict Regulations
Southern California’s strict regulations on storm water runoff, air quality control and waste management has helped generate business for environmental consulting firms that work with local governments and companies, said Paul Ryan, vice president of URS Corp.’s Huntington Beach and Santa Ana offices.
“Southern California has myriad regulations to keep up to speed and stay in compliance with ground water issues, air quality issues and storm water regulation, which helps keep a steady flow of work available for environmental consulting firms,” Ryan said.
A boost in infrastructure work and transportation projects related to Measure M sales tax should also provide enough work for engineering firms in the near future as the Orange County Transportation Authority plans to spend $12 billion on projects for the next three decades, Ryan said.
“Transportation projects will be a big focus for firms in the next few years,” Ryan said.
Last year, URS Corp. worked on the reconstruction of the Garden Grove (22) Freeway. The Riverside (91) Freeway and the proposed extension of the Foothill (241) Toll Road are other transportation projects that environmental consultants will keep their eyes on, firms said.
“Despite the slowing housing market you can see that there are other areas that environmental consulting companies can focus on,” Ali of Psomas said. “The only problem now is increased competition. We’re already seeing companies offer more competitive prices.”
