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Legal Alert

Non-Compliant Warehouses at Risk of Civil Penalties of $11,710 Per Day

Non-Compliant Warehouses at Risk of Civil Penalties of $11,710 Per Day

The South Coast Air Quality Management District (SCAQMD) has launched an enforcement initiative against warehouse operators that have not complied with Rule 2305. Every year, warehouse operators must commit to implementing enough strategies from a “menu” to satisfy the number of “points” the operator is required is to earn, or pay a mitigation fee. The number of “points” is based on the number of annual truck trips to and from the warehouse. The most recent deadline was January 1, 2024.

What were operators required to do?

Operators of warehouses greater than 250,000 square feet:

  • Calculate the total number of trucks that entered or exited the site for the year (January 1 – December 31) and estimate the number of truck trips for the upcoming year. A single visit from a truck is equal to two trips. This information is used to determine how many "points" the operator needs to "earn".
  • Select a compliance method to achieve the required number of points:
    • (1) commit to implement strategies from a menu;
    • (2) pay a mitigation fee; or
    • (3) develop a customized plan.
  • Submit an Annual WAIRE Report to document the number of WAIRE Points Compliance Obligation (WPCO) the operator is required to achieve for the compliance period, and demonstrate how the required number of points will be earned.
  • Submit the Annual WAIRE Report through the online WAIRE POP system available at www.aqmd.gov/waire.
  • Pay the administrative report fee.
  • Keep your records showing the number of truck trips and that the selected strategies are being implemented for seven years. SCAQMD will periodically conduct inspections and require you verify compliance.

Operators of warehouses between 150,000 and 250,000 square feet:

  • Do all of the above plus submit the Initial Site Information Report (ISIR)

What are some of the menu items?

  • Purchase zero or near zero emission trucks
  • Construct electric vehicle infrastructure
  • Install solar panels

For More Information, Please Contact:

Alene Taber
Alene Taber
Counsel
Los Angeles, CA