Environmental Technology and Services

Jump ahead to:
Industry Overview
Industry Trends
Cluster Strengths
Cluster Challenges
Key Initiatives
Cluster Organizations
Cluster Contact
 

Industry Overview

Of the several hundred Oregon companies working in the environmental technology sector, many overlap into other sectors, which makes it difficult to segregate employment data. This cluster covers an overlapping range of technology and service companies addressing environmental protection & cleanup, energy & efficiency, waste & recycling, water & wastewater, sustainable development, and sustainable business practices. Disciplines include engineering, consulting, natural sciences, law, project development, finance, contracting, equipment manufacturing, and equipment supply and installation. Fortunately, the ascendance of renewable energy and climate change as driving social issues, plus the resurgent interest in environmentally sensitive practices tied to sustainability have led to rapid growth in this cluster, with continued growth expected. 

Industry Trends

• On the environmental side, the recent economic downturn has been most difficult for sectors tied to new construction activity. On the other hand, service providers working for industry faired better, as that work is driven by ongoing compliance requirements. (The environmental protection sectors in general is spurred on by the long term trend for increasingly stringent environmental regulation, such as in stormwater management and air quality.)
• Companies have repositioned themselves after laying off workers. Recently there has been a clear increase in business activity, though companies are still reluctant to hire. Those looking for experienced technical professionals are having trouble finding them.
• On the bioenergy side, the biofuels industry has largely collapsed but is expected to revive in the future – due to initiatives like Federal mandates and an Oregon Low Carbon Fuel Standard.
• The failure of climate change regulation and/or carbon markets led to the stalling of many business initiatives in this area. Still, Oregon is deploying its “carbon management” expertise to larger local industries, and increasingly to companies headquartered in other states.  Climate change management will return as an opportunity, followed by adaptation.
• Water supply is THE large emerging challenge – and business opportunity.
• Infrastructure reinvestment is HUGE opportunity and has to happen at some point.

Cluster Strengths

• Growth is driven by state support for renewable energy and voluntary action on climate change.  The renewable energy and efficiency sectors have been beneficiaries of incentives such as Oregon’s Business Energy Tax Credit (BETC) and the Energy Trust of Oregon’s programs. 
• Oregon has seen a renewed emphasis on environmentally responsible practices as a driver of new business decisions.
• A number of environmental technology firms have added "climate management" practices and are choosing to make Oregon their home because the state culture is encouraging of such expansion. These firms are now guiding traditional industry and government clients in taking new voluntary action. 
• Ability to export services to other states and international markets.

Cluster Challenges

• The effective loss of the BETC funding has brought the project development industry to a halt in Oregon, and companies are sending their staff to other states in the hope of finding work. If the legislature terminates the BETC program (and doesn’t replace it with another incentive mechanism) this will be highly destructive to the renewable energy and efficiency sectors.
• Oregon's relatively small size means that local firms export many of their services to other states.
• Oregon has not done enough to recruit experienced technical professionals to the state to fill high-tech environmental services positions.
• Low statewide investment in infrastructure.
• Statewide disinvestment in higher education.
• Lack of capital investment resources, not just for startups, but more importantly for established businesses.

Key Initiatives

• Work with a coalition of 15+ trade associations, economic development organizations, and environmental groups to make sure the BETC program is extended to 2016. Without continuation of the BETC program or replacing it with other economic incentives, Oregon stands to lose its hard-won leadership position in clean energy.
• Develop a comprehensive energy plan for the state and region. Oregon should convene the process.
• Develop a comprehensive infrastructure reinvestment plan for water, sewers, etc. (Federal & state through a Reinvestment Plan and Revolving Fund).
• Work with government and regulatory agencies to advance appropriate regulation, economic incentives, and receptiveness to technology and process innovation.
• Work with the insurance industry to overcome barriers facing new energy projects.
• Educate businesses about the impacts of climate change and the range of possible responses to it.
• Explore market-oriented approaches to protecting Oregon's critical ecosystems.
• Join with other clusters to address workforce issues.

Cluster Organizations

In 1996, Oregon organized theNorthwest Environmental Business Council (NEBC), led by Executive Director Robert Grott. The NEBC is a trade association which represents the leading environmental technology and service firms in the Northwest. These groups work to restore, protect, and sustain the natural and built environments of the state. Their objectives include business development, member education, information dissemination, networking, and regulatory and legislative advocacy. NEBC's structure as a cross-discipline, cross-sector organization fosters the transfer of information and knowledge and builds synergies and business opportunities among its members. NEBC's activities cover the states of Oregon, Washington, Idaho, Montana, and Alaska. 

A number of specific associations cover many of the environmental technology and services sub-sectors (e.g., water, wastewater, renewable energy, green building, waste management, etc.) as do many professional societies.  On the environmental side, NEBC is the lead. On the energy side, in addition to NEBC, are RNP, OSEIA, OWET, Oregon Small Wind Energy Association, and others.

It is estimated that at least 300 companies in Oregon work in this sector. Smaller companies may focus on a single sub-sector, while major engineering and legal firms may work across the entire range.

Cluster Contact

Robert Grott
Executive Director
Northwest Environmental Business Council
503-227-6361