Law & Order

Large Warehouse Operators in Southern California May Be Taxed if Not Using Electric Trucks

By SEMA Washington, D.C., Staff

California’s South Coast Air Quality Management District (SCAQMD), the agency responsible for regulating stationary sources of air pollution in Orange County, most of Los Angeles County and the western portions of Riverside and San Bernardino Counties, recently approved a program to regulate warehouse facilities in the district. Rule 2035, or the Warehouse Actions and Investments to Reduce Emissions (WAIRE) Program, applies to owners and operators of warehouses with at least 100,000 sq. ft. of indoor floor space in a single building, and aims to reduce nitrogen oxide and diesel emissions from trucks associated with warehouses. Under the WAIRE Program, warehouse operators may earn “points” by reducing emissions, such as by utilizing electric trucks, or paying mitigation fees.

The program is being phased in over time, beginning with warehouses more than 250,000 sq. ft.; however there is a September 1, 2021, deadline for all warehouse operators more than 100,000 sq. ft. to submit basic registration information to the SCAQMD.

The California Trucking Association is suing SCAQMD over the rule, claiming that the agency is overstepping its authority, and hopes to have implementation of the program halted before the September 1, 2021, deadline takes effect. SEMA supports the challenge.

If this program will impact your business, or for additional information, please contact Caroline Fletcher at