Frequently Asked Questions

1. How much ammonia will the plant be releasing into the air?  How is this going to impact our air quality?

Ammonia is a necessary and beneficial chemical at Eastshore that will enable Eastshore’s state-of-the-art air pollution control system to function properly. The ammonia will react with oxides of nitrogen (NOx) in the engine exhaust over a catalyst to convert the NOx into harmless nitrogen and water vapor, two common constituents in ambient air.Because the air pollution control system will not be 100% efficient (a physical impossibility), extra ammonia must be added to optimize the NOx control efficiency. The extra ammonia that does not react will be emitted from the exhaust stacks.

Eastshore recently committed to a substantially lower ammonia exhaust limit of 10 parts per million (ppm), exactly ½ of the 20 ppm level originally proposed.The lower ammonia slip commitment was made possible based on equipment vendor performance guarantees. As a result, the maximum annual ammonia emissions from the plant will be approximately 27.5 tons per year. This maximum emission rate is based on the facility operating at its rated capacity for 4000 hours per year, the maximum allowed operation under both the PG&E contract and the proposed Bay Area Air Quality Management District (BAAQMD) Preliminary Determination of Compliance.

There are several reasons to expect that the actual facility ammonia emissions will be substantially less than the maximum amount:

·         Eastshore is not expected to operate 4000 hours per year.This is a contract and permit maximum. Modeling of historic grid performance suggests that actual operating hours would be in the range of 800 – 1000 hours per year.

·         Eastshore expects that actual ammonia slip will be lower than the vendor guarantee as it is normal practice for equipment vendors to incorporate a compliance margin in their warranties

·         It is in Eastshore’s financial interest to minimize ammonia emissions to the extent feasible because lower ammonia emissions will reduce Eastshore’s overall operating cost associated with ammonia consumption.

Based on the above, we expect that actual ammonia emissions will be less than 6 – 8 tons per year.

Ammonia is one of the most common substances in the world and is a fundamental molecule in many life processes. At the low levels expected at Eastshore, ammonia emissions will pose no public health threat, even at the maximum emission rate.For example, the federal Occupational Safety and Health Administration has established 25 ppm of ammonia on an 8-hour average exposure as a safe level for workers.The maximum Eastshore ammonia emission level in the exhaust stack will be 2 ½ times lower than this acceptable worker exposure level.Maximum public exposure at ground level will be over a 100 times lower than this already safe level.

2. Why is this site so important, why couldn’t it be somewhere more remote?

From an electrical grid distribution, reliability and cost-efficiency standpoint, it is desirable to locate electrical generation as close to the point of electrical interconnection and to locations of demand as possible. Locating power plants at remote locations increases transmission line costs and increases transmission lines losses, both of which are directly related to the length of the transmission lines. Higher transmission losses also mean that more fuel must be consumed to deliver the same amount of electricity to remote consumers. Thus, remote generation causes greater emissions and higher generation costs per unit of electricity than localized generation.The California Energy Commission (CEC) map below shows all power plants statewide and demonstrates that the vast majority of non-hydroelectric generation facilities are located in or near populated areas.

Adequate electricity supply is critical to the health and welfare of the residents of California. Inadequate electricity supply can result in substantial economic disruption and unsafe conditions for many California residents. The California energy crisis of 2000/2001 was a painful example of the disruption that can be caused to the State when power is in short supply. For this and other reasons, investor-owned utilities in California are regulated by the California Public Utilities Commission (CPUC) and have a duty to serve residents with adequate electricity upon demand.Electricity demand fluctuates daily and seasonally.Overall demand is also growing continually as a result of increased population growth.Because electricity demand and available supply can not be predicted for any given day with precision (due to unforeseen weather, unplanned outages, and other circumstances), the CPUC expects PG&E and other investor owned utilities in the state to meet their duty to serve by always having adequate peak generating capacity in reserve. The Eastshore power plant is part of PG&E’s plan to maintain a reliable, adequate supply of electricity for its customers under peak conditions. PG&E’s contract with Eastshore will compensate Eastshore for its investment to construct the plant in exchange for Eastshore’s exclusive commitment to supply power to PG&E at a specified rate when it is needed, up to a maximum of 4000 hours per year. Because the Eastshore contract does not allow Eastshore to sell power to PG&E for more than 4000 hours per year, Eastshore would not gain any revenue to offset its operating costs after 4000 hours per year. In addition, the license and permits will also prohibit Eastshore from operating more than 4000 hours per year.

4. Will the power from this peaker plant be available to the Hayward residents first, or at all?

Eastshore’s contract with PG&E only specifies that the power be supplied to PG&E when requested. Eastshore will not control the first use of the power and cannot promise that Hayward would be given priority.However, the physical proximity to the Eastshore interconnection, the 115 kV distribution voltage of the City of Hayward load, and the cost that PG&E would incur to wheel the power away from the community on higher voltage transmission lines, create a likelihood that Eastshore’s power would serve nearby residents first.

5. What will the plant look like?

The EastshoreEnergyCenter will appear as a low-profile, neutrally colored building with fourteen neutrally colored, 70-foot tall, 4-foot diameter exhaust stacks arranged in an east-west alignment along the northern portion of the site.The Clawiter Road-facing street frontage will be attractively landscaped with a vegetated berm and trees that will enhance the current appearance of the property and create screening for a majority of the facility when viewed from ground level at the entrance. Perimeter landscaping along the southerly and northerly portions of the property will also provide an aesthetic buffer to neighboring businesses.Additional visual photosimulations of the plant have been prepared to help the public visualize the plant’s expected appearance from key observation points in the immediate vicinity of the project.

6. Are the smokestacks necessary?

Yes.The exhaust stacks are necessary in order to allow the pressure created in the engines during the combustion process to be released.The release of pressure created during combustion is what transforms the fuel energy into the mechanical energy that drives the electric generators. If the stacks were closed off, the engines would not be capable of completing this energy transfer, pressure in the system would build up and the engines would not be able to operate.

7. How much noise is the plant going to create?

The majority of noise-emitting equipment will be housed within a building to reduce noise emissions.Exterior sources of noise will include the radiators, switchyard transformers, natural gas metering and pressure reduction station, and exhaust stacks.Each will be designed and procured with low-noise specifications. In addition, the landscaped berm planned for the Clawiter Road frontage will provide noise reduction. Computer modeling of the plant (without consideration for the effects of either the landscaping berm or intervening buildings) demonstrates that expected noise levels at the nearest homes will not increase more than 5 dBA above current background levels. The CEC Staff consider a noise increase less than 5 dBA to be insignificant because most individuals will not perceive a noise increase at this level to cause a noticeable difference from background noise levels.The modeling has also demonstrated that noise will conform to ambient noise guidelines established by the City. A post-construction noise survey will be completed to validate that facility noise impacts are insignificant. In the unlikely event that noise levels do not meet CEC-established limits, Eastshore will take immediate corrective action. The CEC will also require a Noise Complaint process that will provide the public with the opportunity to document any noise related concerns that will need to be resolved expeditiously by Eastshore.

8. How many trucks will be going to the site, at what times, and how often per day?

During the 18-month construction period, truck traffic will range from 8 to 23 trucks per day. Normal construction hours will be from 7 AM to 7 PM.The majority of these truck trips will be associated primarily with deliveries; however, 5 to 6 trucks per day will be heavy duty trucks.To the extent possible truck traffic during construction will be scheduled to avoid peak traffic on nearby roadways.Eastshore is in the process of developing a draft Transportation Management Plan for construction traffic that will target specific off-peak traffic hours for truck traffic.

During normal operation, truck traffic will typically be less than 2 trucks per day. The majority of the truck traffic during operation will be associated with the delivery of 19% aqueous ammonia to the site. The plant will also require less frequent deliveries of lubricating oil, water treatment chemicals, and cleaning chemicals, and the removal of trash or, infrequently, any process wastewater that may need to be retained in the process wastewater tank because it does not meet the City’s sewer discharge restrictions. The plant will normally average approximately 3 aqueous ammonia deliveries per month. On many operating days, there may be no truck deliveries.On some ammonia delivery days, Eastshore may also receive one or at most two additional truck visits for either material delivery or waste removal. Deliveries of ammonia and other materials will be scheduled to occur during off-peak traffic hours.

9. Will the plant run on “Spare the Air” days?

Eastshore will be operated whenever PG&E determines that it has a need for power from the facility.Eastshore has no discretion under its contract with PG&E to refuse to operate on a “Spare the Air” day. If PG&E requests power on one of those days, Eastshore will be required to operate. “Spare the Air” days typically occur less than 10 to 12 days per year.

10. Once the plant is built, who will handle community complaints?

Eastshore will be required as a condition of its CEC license to maintain a hotline to receive community complaints.All complaints will be documented, investigated, resolved and reported to the CEC.In addition, the community will be able to file complaints directly with the CEC, the BAAQMD, and the City.

11. Why does Hayward need 2 power plants?

The residents and businesses in Hayward require a reliable power supply.Electric supply disruption may result in adverse conditions ranging from personal inconvenience to life-threatening circumstances in some emergency care situations.PG&E determined that it had a need for additional peak power supply and issued a Request for Offers (RFO) for new peakload generation in late 2004. Eastshore was proposed in response to PG&E’s RFO and was one of seven facilities selected by PG&E.

The two power plants being proposed for the City are designed to meet very different PG&E needs. Eastshore is a peakload power plant that is specifically intended to operate only when PG&E experiences peak demand. For this reason, Eastshore will only be permitted to operate up to 4000 hours per year and is anticipated to operate on average for substantially fewer hours.The Eastshore power will be placed onto PG&E’s 115kV (local) transmission system. The other proposed power plant in Hayward, RussellCityEnergyCenter (RCEC), is a baseload powerplant intended to operate continuously throughout the year to meet PG&E’s ongoing daily power needs.The RCEC power will be placed onto PG&E’s 230 kV (regional) transmission system. PG&E has determined that both plants are needed to meet its operating requirements.

12. What hazardous materials are going to be stored at the site?

The principal hazardous material stored onsite will be 19% by weight aqueous ammonia.The aqueous ammonia will be stored in two 10,000 gallon storage tanks. The storage area will be surrounded by a berm to contain any spill in the unlikely event of a release.The ammonia solution to be stored is similar, but more concentrated than the ammonia solutions found in many household cleaning products. A worst-case offsite consequence analysis conducted for Eastshore demonstrated that offsite ammonia exposure levels would be safe even in the unlikely event of a spilling of the entire tank contents into the bermed area.

There are a variety of other chemicals that will be stored in small quantities onsite. A listing is provided below:

13. What will happen in the event of a major earthquake?

Eastshore will be designed to meet the most rigorous Seismic Zone standards in the CaliforniaBuilding Code. The most significant concern associated with a major earthquake is strong ground motion. The Eastshore equipment will be anchored and supported on foundations designed to withstand the strong ground motion associated with a Seismic Zone 4 event. Consequently, the facility is not expected to experience significant damage in a major earthquake. If Eastshore were operating during a major earthquake event, it is possible that the strong ground motion would trip the plant into an automatic and orderly shutdown. Immediately following the earthquake, Eastshore should be capable of rapidly restarting and would likely be a readily available power supply that could be called upon to operate in the event less earthquake-ready facilities are forced off-line for extended periods. The Eastshore tie-in at the local 115 kV distribution voltage also offers PG&E the advantage of being able to supply local power needs with Eastshore in the event that the regional high voltage system is compromised in an earthquake.

14. This project is near a school, how will the air quality be impacted?  Is it safe for children?

Eastshore would not cause unsafe conditions for school children. Eastshore performed air quality modeling of the facility emissions that demonstrates Eastshore will not cause a violation of any California or National Ambient Air Quality Standard (AAQS). The AAQSs were established by the California Air Resources Board and the Environmental Protection Agency after an exhaustive review of current health effects data by blue ribbon panels of scientists and health professionals. The AAQSs are set with a margin of safety to protect the most sensitive segments of the population, children and the elderly. The BAAQMD and the CEC will complete their own independent review of Eastshore air quality impact studies and will likely perform independent verification studies.Both agencies have considerable expertise and experience in evaluating the potential air quality impacts of power plants.Neither agency is allowed to approve any power plant that would pose a threat to public health.

15. My children have asthma; will this plant make it worse?

No, Eastshore will not worsen anyone’s asthma. Please see the response to question 14, above. Eastshore will not cause a violation of any AAQS. The AAQSs are established with consideration for potential air quality impacts on individuals with asthma. These standards are set with a margin of safety to protect the most sensitive and susceptible individuals in the population.

16. Will this plant jeopardize airport safety at the Hayward Airfield or the increasingly busy OaklandInternationalAirport?

No, Eastshore will not cause any safety risk for local aviation.The FAA recently completed (January 2006) a safety risk analysis titled “Safety Risk Analysis of Aircraft Overflight of Industrial Exhaust Plumes”. The study concludes that the aviation risk associated with aircraft overflight is extremely low and essentially zero. Eastshore has also completed (and reported to the CEC) the results of an analysis of the potential atmospheric disturbance that may be caused by Eastshore exhaust using the only known methodology and guideline, an Australian civil aviation safety guideline. That analysis demonstrates that the Eastshore plumes would not pose a safety risk under Australian civil aviation guidelines. In the above mentioned FAA safety report, the FAA acknowledged the existence of the Australian guideline, but neither endorsed or rejected its use.In addition, Eastshore has submitted an FAA Notice of Construction (Form 7460-1) to both the FAA and the HaywardAirportLand Use Commission and encouraged both agencies to notify pilots of the Eastshore facility and transmission line location in order that they may avoid overflight of the facility.

17. Will this plant cause cancer?

No, based on comprehensive health risk calculations, the plant will not cause any additional cancer cases for either the community or workers in or near the plant.The plant will use state-of-the-art emission controls that are considered Best Available Control Technology for toxics (T-BACT) by the BAAQMD.

Cancer risk is normally calculated and expressed as a probability of incidence. For example, the probability of a coin toss resulting in a “heads” is 1 chance in 2. The health-protective significance threshold for cancer risk established by the California Air Resources Board and the BAAQMD is 10 chances per million, or 1 chance in 100,000. Generally, scientists estimate the background risk of contracting cancer in the general population, including all causes (diet, genetics, other factors) is about 25,000 chances in 100,000, or a one out of four chance.

Worst-case cancer risk calculations were completed independently by Eastshore, BAAQMD and CEC.Even assuming worst-case conditions -maximum allowable emissions, maximum allowable hours of operation,, and continuous exposure at the point of maximum ground level impact for an entire lifetime (24 hours/day, 70 years),Eastshore’s calculated maximum cancer risk is 6.7 chances per million, well below the health-protective significance threshold referenced above.The actual cancer risk will be far less than this calculated worst case value.

18. I heard that this plant is buying pollution offsets.I don’t understand, does that mean Eastshore is buying the right to pollute?

The BAAQMD is responsible for attaining and maintaining ambient air quality standards by implementing an Air Quality Plan (AQP).The AQP includes a program of rules and regulations that require emission reductions from existing sources of ozone-forming emissions (precursor organic compounds and oxides of nitrogen), and allows emission increases from new or modified sources only if they provide mitigation - offsetting emission reductions in the form of emission reduction credits (ERCs). Bay Area facilities that voluntarily reduce their emissions or shutdown certain operations are allowed to bank their reductions with the BAAQMD in the form of ERCs, but only if the reductions are quantifiable, verifiable, enforceable, permanent and certified by the BAAQMD. When new or modified facilities are permitted by the BAAQMD, they are required to purchase and/or surrender an amount of ERCs equivalent to 15% more than their maximum permitted emissions. In this way the BAAQMD is able to continue to reduce emissions and improve air quality while allowing measured economic growth in the Bay Area. The program is reviewed annually by the California Air Resources Board and the Environmental Protection Agency to ensure reasonable further progress in air quality.

Eastshore will comply with the BAAQMD New Source Review rule by purchasing and surrendering BAAQMD-certified ERCs that represent a 15% surplus of emission reductions. The actual surplus is expected to be even greater because:

·         Eastshore will operate below its permitted emission limits

·         Eastshore is expected to operated for substantially fewer hours than the 4000 hours per year of operation required in its PG&E contract

As a result Eastshore will provide overall air quality benefits to the region.

19.  What about particulate matter, I heard something about using wood stoves to mitigate particulate matter emissions?

Yes, Eastshore’s particulate matter (PM) emissions will be below the BAAQMD’s PM offset threshold and the BAAQMD will therefore not require PM offsets.However, the BAAQMD has typically measured ambient PM levels that are above the PM ambient air quality standards on some days in the wintertime. In order to ensure that Eastshore will not cause a significant contribution to these occasionally high wintertime PM ambient levels, Eastshore will be proposing a mitigation program that will include wintertime PM reductions using a wood-burning stove and fireplace replacement / retrofit program.A program like this currently exists in Santa ClaraCounty.Under the program, rebates would be provided to people who replace an existing wood-burning stove or wood-burning fireplace with a new gas appliance, or retrofit an existing wood-burning fireplace with a new gas log set or insert.The advantage of this program is that it mitigates local sources of particulate matter near ground level that, in addition to transportation sources, contribute the most to elevated wintertime particulate matter levels.The program will target the Hayward, Fremont and Union City areas of AlamedaCounty.For more information on the Santa Clara County program go to www.sparetheair.org/changeout.htm.