New Trucking Regulations Could Cost Warehouse Operators Millions
What is the Indirect Source Rule (ISR)?
The Industry Source Rule (ISR) is a new proposed air quality rule by the South Coast Air Quality Management District (SCAQMD) that would require warehouse owners and operators to either reduce truck emissions or pay a substantial fee to the SCAQMD Board.
The ISR rule would also:
- apply to over 3,000 warehouses of 100,000 square feet and larger in Southern California.
- require warehouse operators to track all actual truck trips by size/emissions type
- force warehouse operators to cover any additional administrative costs.
Moreover, the proposed rule would also impose additional, permanent costs on warehouses of approximately $.90 per square foot, totaling close to $1 billion annually.
The ISR impacts warehouses and falls short of it's goals
Although the Indirect Source Rule has good intentions, in practice, it does very little to improve air quality. To comply with the ISR rule, warehouse operators would have to invest significant capital to buy zero-emission vehicles, or install solar panels beyond the current requirements.
However, most warehouses will end up paying the fee as it will not be feasible comply with all the regulation mandates. Very little electric infrastructure for trucks currently exists.
It's also important to note that warehouse operators have no control over the types of trucks that go into their warehouse. It's comparable to how restaurants or retail stores have no control over what cars enter their parking lot.
Moreover, the ISR rule would heavily impact the logistics industry, which plays a key role in fighting COVID-19 through the distribution of medical supplies, vaccines, and PPE equipment.
BOMA/GLA has long been a leader in promoting energy efficiency and sustainability. BOMA/GLA and our CRE partners advance sustainability goals through our Sustainability Committee, and support efforts to improve energy efficiency. However, we also believe that punitive approaches are unreasonable, and do more to disadvantage our stakeholders.
How you can get involved
A final vote on the ISR rule is scheduled a SCAQMD Board vote on May 7th, 2021.
We firmly oppose an increase on fees during the COVID-19 pandemic and time of economic difficulty. The logistics industry is a lifeline to our region and the nation, and is instrumental in our COVID-19 re-opening journey.
To join and support the coalition against the ISR rule, we encourage you to contact our Director of Government and Public Affairs, Aaron Taxy, at firstname.lastname@example.org.