Meeting The Challenges of Increased Environmental Regulation
In Southern California, water management is a high stakes issue. Scrutinized for a myriad of water-related issues, local manufacturers receive significant pressure from many competing voices to meet an ever-increasing number of environmental guidelines including effluent discharge, water conservation, hazardous waste management, chemical use, and storage, as well as regulatory compliance and reporting.
The cost of meeting water-related regulations varies by industry, but in water-intensive industries, such as metal finishing or food and beverage manufacturing, these can range between 5 and 15% of total operating costs.
Driven by factors such as growing public awareness of water pollution issues, emerging contaminants (e.g., PFAS and others), advances in detection technologies, and climate change, the costs borne by manufacturers to keep pace with regulatory demands will continue to increase. A number of factors are driving this forecast.
Driving Factors
Water treatment technologies, such as reverse osmosis, ultrafiltration, nanofiltration, ozone, UV, and ion exchange continue to improve and are being adopted in many different industries such as metal finishing, electronics manufacturing, food and beverage processing and chemical manufacturing. With lower contaminant thresholds, manufacturers are adopting more sophisticated monitoring equipment, such as Inline sensors and IoT sensors.
Often, the initial investment exceeds that of older tech. Depending on the project, some construction expenses may also be incurred to support the building of sample collection points, or power and communication infrastructure. Fortunately, a number of advantageous offsets are available to California businesses.
Offsets From Lower Operating Costs
Operating Costs
One of these is a reduction in long-term operating costs. For instance, newer technologies often offer improved efficiency, leading to reduced water usage.
Membrane filtration technologies can reduce water consumption by up to 50% or more versus traditional water treatment methods.
Reverse osmosis can produce up to a 90% reduction in water usage. Energy requirements are often lower than under older technologies.
- Membrane filtration can reduce energy consumption by up to 50%.
- Reverse osmosis can reduce energy requirements by 20-30%.
Federal and State Incentives
State and federal tax laws also make a transition to modern water treatment technologies more feasible. Other offsets are available through state and federal incentives. For instance,
- Investment Tax Credit: This federal tax credit provides incentives for investing in clean energy technologies, including solar, wind, and fuel cells.
- Bonus Depreciation: This allows businesses to deduct a larger portion of the cost of qualifying equipment in the year it is placed in service.
- Energy Efficient Commercial Building Deduction: This deduction provides a tax credit for investments in energy-efficient commercial buildings.
Utility-Specific Incentives
- Energy Efficiency Programs: One example is Southern California Edison (SCE) offering various rebates and incentives for businesses that adopt energy-saving technologies.
The Decision to Shift Towards Modern Technology
Timing the switch towards modern water treatment technology is different for every company but there are a number of common factors that should be considered.
Operational Performance Indicators
- Water Consumption Efficiencies: A steady rise in water usage without a corresponding increase in production might signal inefficiencies.
- Deteriorating Water Quality: If the quality of treated water is declining, it could indicate system degradation or insufficient treatment.
- System Reliability: What is the impact of more frequent equipment failures or malfunctions having on your customer service rates or EPA compliance?
- Energy consumption needs to be factored into your water treatment system’s total cost of ownership which also includes the initial investment, operating costs, and maintenance.
- Chemical usage requirements: Excessive chemical consumption for treatment can be a sign of system inefficiency.
Regulatory and Environmental Indicators
A plant’s ability to meet tightened regulations may also point to the need for advanced treatment technologies. Likewise, changes in water scarcity may also prompt an upgrade decision. Membrane-based technologies, like reverse osmosis (RO) ultrafiltration (UF), advanced oxidation processes (AOPs) and closed-loop systems that recycle treated water back into the process are less water intensive compared to traditional chemical treatment technologies such as sedimentation and filtration or chemical treatment.
Economics
Rising overhead and declining profitability can also spur a decision to upgrade a plant’s water treatment processes. Some manufacturers in the Los Angeles area have reported increases in their cost of water ranging between ten and 20 percent over the last two years due to drought conditions, a pass-along of the high costs of infrastructure investments, regulatory compliance, and inflation. Energy costs have also increased sharply in recent years. Seeing opportunities to save both water and energy, some savvy manufacturers are progressing towards modern technologies.
Choosing A General Engineering Contractor
A key consideration is finding a general engineering contractor with the skills and experience to deliver a turnkey solution, including construction, equipment installation, and commissioning. Manufacturers should prioritize the following qualities:
Experience
- Water treatment projects: Proven experience in construction, , installing, and commissioning water treatment systems.
- Industry-specific knowledge: Experience & Understanding of the project design & performance requirements and its unique water quality challenges.
- Regulatory compliance: Familiarity with local, state, and federal environmental regulations.
Technical Expertise
- Understanding of the water treatment systems: Knowledge of various treatment technologies and their applications.
- General Contracting proficiency: Ability to Convert the proposal and contract into a well-executed project that meets and exceeds the project requirements.
- Equipment familiarity: Understanding of the machinery and equipment used in water treatment.
Project Management Skills
- Pre-construction planning and organization: Converting the project estimate into a comprehensive procurement phase that delivers the required materials and equipment specified in the project plans and schedule.
- Resource allocation: Efficiently managing labor, materials, equipment, and subcontractors.
- Risk management: Effective strategies for identifying and mitigating potential project risks.
- Communication skills: Client focus and the ability to communicate clearly and openly with the subcontractors, vendors, and team members throughout the project. Other critical interpersonal skills include leadership, collaboration, and conflict resolution.
- Problem-solving: Ability to address unexpected issues and find solutions.
Financial Stability and Insurance
- Strong financial standing: Ability to meet project obligations and withstand unexpected challenges.
- Comprehensive insurance coverage: Protection for the manufacturer in case of accidents or damages.
Safety Record
- Prioritization of safety: A strong commitment to workplace safety and compliance with OSHA regulations.
- Accident prevention programs: Demonstrated history of implementing effective safety measures.
Proven over time
Caliagua has over 46 years of experience in the water treatment industry. We are a trusted partner to most of the large water districts in Southern California. We are experienced in design-build water treatment projects that remove a wide range of contaminants, including heavy metals, organic compounds, and emerging contaminants.
Our strengths include:
- Complex Project Management: We excel in managing intricate projects with multiple stakeholders, demanding timelines, and budget constraints—core competencies essential to any large-scale construction endeavor.
- Infrastructure Development and Construction: Our expertise in estimating , procurements, construction and commissioning critical infrastructure, such as pumping plants, pipelines, reservoirs, and treatment facilities, translates seamlessly into the construction of manufacturing support structure, including site preparation, excavation, and construction of treatment facilities.
- Heavy Equipment Operations: Our proficiency in operating and maintaining heavy equipment, coupled with our experienced crews, is a valuable asset for any large-scale construction project.
- Site Logistics and Management: Efficiently managing large-scale operations, including material procurement, transportation, and site layout, is a cornerstone of our business, a skillset directly applicable to manufacturing projects.
- Groundwater Remediation: We have a proven track record in implementing innovative technologies to treat contaminated groundwater, including pump-and-treat systems, storage-and-treatment, and other related technologies.
- Safety and Compliance: Our stringent safety protocols and adherence to regulatory standards are fundamental to our operations and can be readily adapted to the manufacturing industry’s unique safety requirements.
If your company is currently considering a water treatment-related project, we’d love to talk with you about it. Please contact Gus Bruner or Cory Wolfrom.