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An Ounce of Prevention

 

Some engineering firms excel at fixing environmental problems after they’ve occurred. Aegis Environmental prefers to steer its clients clear of trouble in the first place.


 

All it takes to bring down a giant, says Sandy Morse, is a little bit of red tape. That’s what the $1.5 billion White Oak Semiconductor plant in suburban Richmond was facing back in the late 1990s, when Morse’s Aegis Environmental firm was helping it secure an air permit.

 

In the semiconductor market, “you have to be able to change your processes fairly quickly to respond to changes in technology,” Morse says. But under state rules White Oak Semiconductor (which became Infineon Technologies in 2001) potentially faced a lengthy permit revision every time it wanted to bring out a new product. “They didn’t have that kind of time,” Morse says.

 

Morse and her Aegis colleagues came up with an idea: Create a worst-case-scenario model for the plant’s air emissions, and show the state’s Department of Environmental Quality that no matter what production changes the plant made, “it wouldn’t get any worse than the worst-case scenario,” she says.

 

It was a new approach, but DEQ agreed. All the plant’s operators have to do now is send state regulators a note when new production processes are launched. “It created maximum flexibility for them,” Morse says. Getting involved early and helping a client avoid problems “is the way we like to do it. And that helps the client in the long run.”

 

The reason Aegis could come up with the innovative solution is because senior management has worked both sides of the fence. Before launching Aegis eight years ago with co-principal Kelly Bonds, Morse was a specialist in air-permitting and hazardous waste for the DEQ. Bonds was with DEQ as well, in its air-modeling section.

 

Aegis’ experience lets it help companies such as DuPont, Infineon Technologies and Dominion Generation (formerly Virginia Power) use Morse and the rest of Aegis’ nine-member technical staff stay ahead of the ever-shifting rules pumped out by state and federal regulators. The firm’s main expertise is environmental permitting, especially air permitting, and compliance, although it also handles work in areas including environmental training, auditing services and environmental management systems.

 

Morse and Bonds are particularly proud of one low-cost tool the firm has created. Using Microsoft’s Excel and Access software, Aegis has come up with a mechanism for clients to keep track of auditing and compliance reporting. It’s a valuable tool in preventing problems that might emerge if compliance requirements aren’t met. They first developed it five years ago for DuPont but soon realized it could be adapted for any corporate or municipal client. “You’ve got to have all these documents saying this is what you’re going to do, and then you have to actually demonstrate the compliance,” says Morse. “This kind of computerized system allows you to do that fairly easily.”

 

That’s also a lot cheaper than a custom-designed software program with an open-ended support contract – the kind of deal that clients often shy away from because they can’t control the cost. Morse and Bonds would rather that customers see them almost as adjunct staff. With many clients they have multiyear service contracts, “and then the clients can just pick up the phone and call us with any questions,” she says. “When you develop these relationships, you know their businesses well, so when they call you know what they’re talking about.”

 

Besides its two principals, the firm has a third person with DEQ experience, Jeffrey Zehner, who has expertise in air and groundwater monitoring. It also has two senior staff, Robert Wevodau Jr. and Russell Wood, who have decades of industry experience. Wevodau spent 30 years with DuPont and has expertise in air permitting, and has done training for DEQ and the Environmental Protection Agency. Wood comes from a 40-year career working first for DuPont and then for Dominion Generation.

 

Aegis stays small by intent because it gives the firm important advantages, like low overhead. Despite the technical staff’s seniority -- 17 years experience on average -- Aegis keeps its cost structure low. Says Bonds: “Often we’re going up against some of the bigger guys for these permitting jobs, but we can kill them on price and beat them on experience.”

 

Smaller also means quicker. “We’re small enough that we can be a bit more mobile,” Morse says. “And if we have to, we’ll burn the midnight oil, and they know that.” The personal attention gets results: Bonds says about 95 percent of the firm’s business comes from referrals or existing clients.

 

Morse and Bonds nurture relationships because that’s what encourages clients to call them back. While much of the environmental help that companies need comes from new regulations churned out at the state and federal levels, clients also call Aegis in as permitting experts when planning major expansions or anything that would change the terms of their existing permits.

 

The firm draws a range of public and private-sector clients. It has handled projects such as air permitting and storm-water pollution prevention planning for Dominion Generation. It’s also done extensive work for the city of Manassas, everything from air permits to creating manuals for handling hazardous waste. “It’s important for us to have those relationships because when those projects come along, they call us in,” Bonds says. For example, Infineon Technologies is still an Aegis client. Since the April announcement of Infineon Technologies' long-awaited expansion, Morse has fielded questions from Infineon officials about the timing and complexity of new permitting requirements.

 

Morse and Bonds are confident their business will grow because of a key trend in the relationship between regulators and industries. Many manufacturers and other companies with environmental issues are being encouraged by regulators to exceed requirements established in the rules, because doing so buys them a little wiggle room if they “stub their toe” in another area, Morse says.

 

That’s what programs like Virginia’s Environmental Excellence Awards are about, says Morse, who predicts the General Assembly will increase the incentives for companies to go beyond minimum compliance. That would fit with Aegis’ ounce-of-prevention approach. “It makes good business sense as well as environmental sense,” she says.

 

But Morse and Bonds say they aren’t rushing to grow their firm and give up the advantage they feel they have over bigger competitors. “We’ll get big in our own time,” Bonds says. “We want to manage our growth in a way that we can… give the highest value of service to our clients.”

-- November 18, 2004


 

 

 

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