Although not related to Silicon Valley or the Bay Area (yet), industrial and warehouse owners in SoCal are fighting a proposed Warehouse Indirect Source Rule (ISR) by the South Coast Air Quality Management District’s (SCAQMD). NAIOP Silicon Valley supports the opposition of this proposed bill as outlined in a letter submitted by the California Business Properties Association (CBPA).

The purpose of this rule is to reduce local and regional emissions, specifically associated with warehouses and the mobile sources attracted to warehouses. The rule would apply to warehouse owners and operators with more than 100,000 square feet of indoor floor space in a single building and the mobile sources associated with a warehouse. The Rule states that operators are required to implement measures to reduce local and regional emissions from warehouse indirect sources (i.e. use of zero emissions trucks) or pay a fee.

On behalf of the commercial, industrial, and retail real estate sectors, CBPA expressed concerns that the draft ISR Warehouse Actions and Investments to Reduce Emissions “WAIRE Points,” as too complicated, too costly, duplicative of existing efforts, and expressed doubts that the rule will achieve the stated desired outcomes.

California already regulates mobile sources pursuant to its waiver under federal Clean Air Act, and this power is unique in the nation. The California Air Resources Board (CARB) has used this power to adopt the country’s strictest emission laws, including adopting the world’s first mandate to manufacture and sell zero-emission commercial vehicles. CARB has also stated its intent to adopt regulations by the end of 2021 that will require nearly every equipment type at warehouses to operate in a zero-emission mode.

Fellow NAIOP California Chapters, BOMA, ICSC, and CPBA all oppose the proposed rule. This specific issue is isolated to Southern California however these rulings gain traction quickly.