Environmental and Public Health Risks from Clean Energy Manufacturing

The Green Empowerment Zone (GEZ) is an economic development zone in California’s Contra Costa and Solano counties, established by the state amid the decline of oil refining and the closure of other major industrial facilities. It focuses on a high-road sector strategy for clean energy manufacturing, generating high-quality jobs and tax revenue to replace losses from legacy industries while supporting community health and environmental sustainability. 

PSE Healthy Energy was engaged by the University of California Berkeley Labor Center and the BlueGreen Alliance to analyze potential environmental and public health risks associated with the manufacturing of 18 clean energy technologies considered viable to grow in the GEZ. These technologies are grouped into seven categories: batteries, electric grid components, heat pumps, electrolyzers, electric vehicle chargers, zero-emission vehicles, and offshore wind. In our report, we review regulatory data, scientific and industry literature, and public media to assess the air pollution, water pollution, and hazardous waste risks these facilities pose to nearby communities. 

On a scale from Very Low to Very High, we found that most technologies carry Very Low to Low risk, especially in the air pollution and water discharge categories (Table 1). In comparison,  some legacy heavy industry facilities, such as refineries, rank above Very High on our classification scale. We assign confidence ratings of A, B, or C to each risk ranking based on the availability and consistency of data from regulatory databases and scientific literature. However, a few areas warrant close attention:

Across nearly all technology types, hazardous waste generation—from solvents, coatings, and chemical byproducts—poses the primary risk. Most facilities studied were in compliance with existing regulations, but waste volumes could increase significantly as operations scale up.

Manufacturing of high-voltage and distribution transformers carries notable air and water pollution risks, and solid-state battery manufacturing carries high risks associated with hazardous waste generation. Of the technologies reviewed, these are the only ones that approach the risk levels seen at legacy industrial facilities. 

Many clean energy manufacturers are early-stage companies that fall below federal reporting thresholds, meaning less regulatory data is available to assess risk levels. Less data does not mean lower risk—it means greater uncertainty, which we capture by assigning confidence ratings to each technology’s risk classification.

These findings indicate that clean energy manufacturing for the technologies identified as viable for the GEZ likely carries much lower risk to public health than legacy industry. However, they are not without risk, particularly in the hazardous waste category, and facilities should proactively consider these risks as they are being established. 

The following recommendations identify specific practices, control technologies, and considerations to protect community health while supporting the GEZ’s clean energy manufacturing goals:

As operations scale, waste volumes will grow. The region should ensure licensed hazardous waste processing capacity and emergency response infrastructure are in place before they are needed.

Contra Costa County already carries a disproportionate environmental burden from legacy heavy industrial facilities. Even individually small new facilities can have significant collective effects. Siting decisions should account for cumulative community exposure.

Many reviewed facilities are early-stage startups. Risk profiles can change substantially as production scales up. Ongoing monitoring and regulatory review are essential.

Facilities should select low-VOC coatings and adhesives, biodegradable transformer oils, and non-toxic alternatives to hazardous chemicals wherever technically feasible.

GEZ facilities should require proper ventilation, exhaust systems, and filtration equipment to mitigate air pollution risks, and require proper storage of materials and hazardous waste to reduce water discharge and hazardous waste risks.

Facilities should develop spill response procedures, stormwater pollution prevention plans, and emergency response plans with clear communication channels to the surrounding community. Facilities should also collaborate with workers to encourage occupational health and safety best practices, including elevating worker voice and encouraging participation in joint employee-management occupational health and safety committees.

This analysis of the environmental and public health risks associated with manufacturing 18 clean energy technologies fills a critical knowledge gap on the impact of such manufacturing on surrounding communities. This allows planners and policymakers to determine whether clean energy manufacturing is compatible with a high-road sector strategy that emphasizes public health and environmental sustainability while generating quality jobs, and to proactively strategize how to mitigate risks before facilities are established. Our findings and recommendations were presented with enthusiastic reception to the GEZ Governing Board, a collection of mayors, city council members, union representatives, and business interests from across Contra Costa and Solano counties, to inform their strategy as they catalyze a transition to clean energy manufacturing within the GEZ.