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During its Feb. 26 panel event, NJBIZ hosted experts for a robust discussion of environmental and sustainability in the Garden State.

The discussion, moderated by NJBIZ Editor Jeffrey Kanige, included:

• Vince Caliguire, manager of the Community Collaborative Initiative, New Jersey Department of Environmental Protection
• Garrett Esler, senior project manager, Envirotactics
• Mark McDonough, president, New Jersey American Water
• Dan Moran, chief commercial officer, Reworld

Over 90 minutes, the panel hit on a number of relevant topics and issues. Kanige opened the discussion gauging how the panelists view the way things are going with the new administration in Washington.

“There’s been a lot of interest in that. We just did a panel discussion a few weeks ago on what to expect in the new administration,” said Kanige, who noted that some of the questions received in advance of this event asked about what to expect with the second Trump term. “Given what’s coming out of the administration – what we know about what the president believes – has that changed the way you approach your work? Are you concerned about what’s coming out of Washington?”

“So, that’s a great question,” said Esler. “The way that the NJDEP operates – it’s very separate from what the federal government does. What we’ve seen recently, especially with the new proposed REAL rules, is that sustainability is not off the table. That is something that New Jersey is always trying to strive for – and that is something that they’re really pushing ahead. Despite all these changes at the federal level, we’re still seeing the push for sustainability at the state level – and especially in terms of concerns with rising sea levels, greater flood hazard impacts; as well as protecting New Jersey’s natural resources, such as wetlands.”

“If there is less federal funding – for example, the president has already tried to freeze that funding for sustainability, for climate sustainability anyway, does that affect your business at all?” Kanige asked.

“I would say, for us, the answer’s no,” said Moran. “We haven’t changed or altered our business model. Our business model is driven by our customers and what the customers want. So, a lot of what I’ll talk about today – is what industry is driving from a sustainability perspective. From a regulatory perspective, I think Garrett kind of touched on it – we have to deal with federal and local.”

As a result, Moran explained, the approach there does not change.

“Our relationships with the regulators and operating within the permitted limits, collaboratively, with the regulators – is really the backbone of our business,” said Moran. “And we take it extremely seriously. So, regardless of that, we’ll be an active participant on a state level and federal level to share what we consider best practices – that can meet standards. And continue to operate within those standards.”

“I definitely agree with Dan. Most of our business is that customer-related-driven initiative where a lot of the times they’re not really applying for those federal funding or federal programs – at least on our end,” said Esler. “We’re just seeing businesses trying to approach that sustainable level, whether it’s coming from their end, or having to meet that sustainability through the DEP’s rules and regulations.”

“Vincent, I was just going to say – your agency has now been invoked a couple of times. So, where do you come down on this question?” Kanige asked. “Your priorities remain, I’m assuming – no matter what comes out of Washington.”

“Absolutely, Jeff,” said Caliguire. “Like a lot of people that work at the NJDEP, we do this for more than just the paycheck. We’re into trying to improve the communities – improve the environment. Frankly, we’re seeing the road ahead. I anticipate funding to be diminishing on the federal level for a lot of the things that we’ve been getting funding for.”

Replay: Environmental & Sustainability Panel Discussion

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Caliguire noted that Gov. Phil Murphy spoke about the potential cuts during his recent Budget Address.

“Nonetheless, we’re going to continue with the mission and push forward,” he said. “He [President Donald Trump] has also [spoke] about having a priority on clean air and water – and I’m hoping he keeps with that. And we could continue the mission. But there will be cuts coming. We’re going to see how we can work with those things – and move it forward. I never see a problem when we have different administrations or anything like that. There’s just different ways to work with them – and to try to achieve objectives.”

In agreement

“Mark, most of what you do is state and local-related – how do you see your role changing, if at all, as we get changes out of Washington?” Kanige asked McDonough.

“As the largest regulated utility in New Jersey, obviously we have a big impact,” said McDonough. “Primarily, we’re really locally, state focused. But we have the EPA [Environmental Protection Agency] – it has a big part of our regulation. So, we have to pay attention. But at our core, as I mentioned, we’re really an environmental company – environmental and infrastructure. So, sustainability concepts like that, they’re really just core to what we do every day. They’re not programs that we enact every now and again.”

McDonough noted that every administration unites around having safe, clean, reliable and affordable drinking water.

“Nobody really disputes that idea,” said McDonough, stressing that the organization is comfortable in its programs and investments. “Our investments are predominantly our capital that we’re able to bring to bear from the market to help our customers. So, we feel very comfortable that we will continue to make the investments necessary – and that the administration, ultimately, will be supportive of that. Because, really, whether you have an administration that goes in one direction or another – they all want that clean water.

“And for this administration, being able to have resilient infrastructure is key to the good life of the residents and good business,” McDonough continued. “So, we feel very comfortable that we’ll be able to deliver that – regardless of what the administration in Washington’s priorities are.”

The conversation then snaked through a range of topics, such as whether ESG (environmental, social, and governance) is still a relevant concept; whether the state’s aging infrastructure is too fragile; balancing economic growth with environmental responsibility; permitting; utilizing alternative energy sources; being a good corporate citizen; and more.

Where does AI fit in?

As the discussion was winding down, Kanige focused a question on technology — particularly artificial intelligence.

“I’d like to hear from each of you – whether you think technology provides enough answers or at least some answers to the kinds of issues that we’ve been talking about,” Kanige asked. “What kinds of technologies? Is artificial intelligence relevant to this discussion?”

“For us, it really starts right at the curb,” said Moran. “So, as that material leaves, whether that’s a household or a commercial entity. There’s a lot of technology on trucks that have improved safety and have improved efficiencies. So, that’s something that will continue to evolve. We’re not heavy into transportation business. But all of our partners are. So that’s something that we actively contribute to and pay attention to.

“On the disposal and recycling side of things – yes, we are utilizing AI today,” Moran continued. “Not to get too, sort of, in the weeds, but all of our facilities have what’s called a tipping floor where the waste is put onto the floor. And there are components in the waste streams that can create issues. So, mattresses can create an issue for us – or propane tanks can create an issue for us. A lot of these lithium batteries are creating fires from a shredding component. That’s something that we pay attention to. We’ve piloted across the country two or three facilities where we have cameras that are pointed at the waste streams as it comes out of the truck.”

Moran explained that the company is training AI to identify problem areas that can remove those components. “But also create safety and environmental impacts that we’re trying to remove as well. So that is definitely something. And we already talked about the recycling side of things … that that’s a component of extracting more value out of the waste stream and doing a better job separating out the material,” said Moran. “The cleaner the material, the more value you get, and then obviously the better outlets that you have for recycling those components. So, technology and AI is definitely something that’s going to play into the future.”

“We’re certainly seeing the introduction of AI systems and technology in our business,” Esler. “I don’t think it’s quite there yet to really kind of push forward in terms of the permitting aspect. But I know that a lot of this technology that’s coming out do help regulators, whether it is professional environmental experts, or even the DEP to try and look towards the future in terms of mapping out problem areas in New Jersey; trying to use this technology to identify prone risk areas that may be impacted by future flooding events or other environmental impacts.”

Esler said while it is not quite there yet, he is seeing the introduction of those technologies start to creep its way into his organization’s system.

“But that is something that we’re looking to implement into our own business and work with engineers, architects, and even our clients, to utilize this technology that is coming out and is starting to really make things more efficient – essentially,” said Esler.

Humans still run the show

McDonough said there is absolutely a use for AI and that the utility is using it right now.

“I maybe would say this, though. In terms of actual operations: I need empathetic, thinking human beings to run water plants,” said McDonough. “Because there’s a lot of nuance that AI has not captured yet in terms of how to clean water.”

He noted that technology has been impactful for predictive modeling and maintenance.

“So, one of the things we have to do is, replace all the lead service lines in New Jersey in the next 10 years. Traditionally, you would pothole when you don’t know, and the people don’t know what their line is,” said McDonough. “They would get a backhoe, dig a hole, see what the line is. We worked with DEP. DEP was a great partner on this to use predictive modeling to say – this is where these lines will be. We did validation of that.”

McDonough said it was a great example of how you can use artificial intelligence. “And that’ll be the key for us. It’s useful to us, particularly on maintenance to help streamline those … costs,” said McDonough. “And that’s really where we’re focused at this point.”

“I think we’re hearing it. We see what’s coming up with the efficiencies that are available for a lot of different environmental companies,” said Caliguire. “Improving that part of it, I think, is definitely coming into play. From my standpoint, we’re using AI. Actually, I’ve been using it a great deal this year to help a lot of the cities that we help – a lot of these distressed cities with their grant writing.

“Using different models to pick up the verbiage because these things can be pages long. It allows us to apply for more things and hit different parts of it in better ways,” he continued. “And our success rate has increased with the amount of grants and funding that we’ve been able to get some of these distressed cities because of that. That’s been a great part of it – and really helpful for me this year.”

Caliguire said the NJDEP is looking forward to other ways to utilize AI to help with the agency’s functions. But echoed the sentiments about having a human touch to complement it.

“In other words, you’re dealing with a computer, and everything’s decided by that,” he explained. “We need that human influence – but definitely ways to improve our efficiency with.”