# EPA Mandates Emissions Reductions at California Warehouses
The policy sets a precedent for states and allows public litigation.
Recently, the U.S. Environmental Protection Agency (EPA) approved a California law requiring warehouses to reduce emissions or pay compensation fees related to truck transportation, thereby strengthening enforcement measures.
Since October 11th, EPA has officially approved and made legally binding a South Coast Air Quality Management District regulation in Southern California that mandates warehouse owners and operators take steps to lower greenhouse gas emissions associated with their operations or pay fees to the state. The regulations also include state reporting requirements.
EPA noted that this new measure aims to curb air pollution caused by warehouse operations, including freight vehicles traveling to and from warehouses.
In August 2021, the South Coast Air Quality Management District headquartered in Diamond Bar requested EPA’s adoption of “Rule 2305: Warehouse Actions and Investments for Reduced Emissions (WAIRE),” which had been implemented several months prior. Ultimately, on September 11th, EPA announced it would enforce this regulation under federal law in California.
The South Coast Air Quality Management District oversees approximately 3,320 warehouses across Los Angeles and Long Beach ports, as well as non-desert portions of Los Angeles County and San Bernardino County, Orange County, and most of Riverside County. The rule applies to owners and operators of warehouses with indoor floor areas of at least 100,000 square feet.
“In simple terms, now that EPA has approved the South Coast indirect source rule into California’s state implementation plan, which addresses national air quality standards, EPA can sue businesses violating this rule. Members of the public can also take enforcement action through citizen suits,” EPA San Francisco spokesperson Michael Brogan told Transport Topics.
Importantly, this EPA approval sets a precedent for its review of any future state-submitted indirect source review plans seeking EPA approval, Brogan added.
Empowering South Coast rules with federal backing allows anyone to file a lawsuit under Section 304 of the Clean Air Act in U.S. District Court over violations of warehouse law or by EPA under Section 113 of the Clean Air Act, enabling federal agencies to seek civil, criminal, and administrative penalties, including fines.
EPA Pacific Southwest Regional Administrator Martha Guzman praised the federal endorsement of California’s warehouse emissions regulations: “These indirect [greenhouse gas] sources like warehouses, ports, and rail yards cause pollution that must be addressed so our communities can breathe cleaner air.”
The EPA received 16 public comments from both supporters and opponents. A policy analyst at Consumer Reports supported the regulation, arguing that federal endorsement of this measure will encourage the use of zero-emission technologies, benefiting surrounding communities.
International Warehouse Logistics Association President and CEO Jay Strother told EPA that acceptance of this rule would increase costs for California warehouse operators and ultimately pass on to “virtually all consumers’ transported goods.”
Last November, a coalition of 22 organizations including the Pacific Maritime Association, California Trucking Association, American Trucking Associations, California Retailers Association, San Gabriel Valley Economic Partnership, California Building Owners and Managers Association, California Beer and Beverage Distributors, and five California business chambers expressed several concerns over EPA’s legal uncertainties in supporting this state warehouse rule.
Additionally, the California Trucking Association failed last year to successfully petition a state superior court judge to invalidate the warehouse regulation.
Next year, warehouses under the jurisdiction of the South Coast Air Quality Management District will be subject to these rules, enabling them to earn WAIRE credits through investment in zero-emission and/or near-zero emission technologies, development of WAIRE plans, or payment of compensation fees.
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Source: Transport Topics
