Author: Kristy Monji-Chung, Senior EHS Consultant
Why Were Numerous Warehouses and Non-Warehouses Across Southern California Issued Notices of Violation (NOVs)?
Companies across Los Angeles, Orange, Riverside, and San Bernardino counties are grappling with recent warnings and fines issued by the South Coast Air Quality Management District (SCAQMD). The cause? Rule 2305 WAIRE Program, a complex air quality regulation aimed at warehouse facilities spanning 100,000 square feet and above.
NV5 is prepared to offer guidance and support with Rule 2305 complexities. We can assist your facility in determining compliance obligations, developing tailored strategies, and providing ongoing support to minimize disruptions to your operations.
What Your Facility Needs to Know about Rule 2305
Rule 2305 is designed to combat nitrogen oxides (NOx), diesel particulate matter (DPM), and other pollutants emitted by diesel trucks servicing large warehouses. Its primary objective is to reduce both regional smog levels and local health issues such as asthma and lung inflammation.
Understanding the WAIRE Points System
The rule operates on a complex points system, requiring warehouses of 100,000 square feet and larger to undertake annual actions to earn “WAIRE Points,” which offset emissions based on the number of truck trips to and from the facility. Alternatively, facilities can opt to pay Mitigation Fees if they are unable to adopt cleaner technologies.
Rule 2305 operates on a sophisticated “WAIRE Points” framework, where each warehouse exceeding 100,000 square feet carries an annual Points Compliance Obligation based on truck traffic to their premises.
- Calculate Truck Trips:
- Warehouses must monitor annual weighted truck trips, or “WATTs.”
- Trips receive higher weighting for Class 8 tractor trailers compared to smaller Class 2b-7 straight trucks.
- Determine Points Obligation:
- A warehouse’s WATTs are multiplied by an annual “Stringency Factor” set at 0.0025 Points per WATT.
- Earn Points through Actions:
- Acquiring near-zero and zero-emissions trucks.
- Installing chargers, solar, or other clean equipment.
- Receiving credit for clean truck visits.
- Paying Mitigation Fees.
Mitigation actions are designed to be cost-effective, emphasizing emissions reduction. Choosing inaction and fee payment will result in significant annual compliance expenses.
Reporting Requirements
Additionally, the rule mandates two types of reporting: the Initial Site Information Report (ISIR), a one-time submission, and the Annual WAIRE Report (AWR), which must be filed annually. There are associated fees for both reports: $140 for the ISIR and $390 for the annual WAIRE report.
Initial Site Information Report (ISIR): Facilities must file an ISIR before submitting their first Annual WAIRE Report. This report should detail truck trips, on-site equipment, and the planned approach for compliance. Notably, this requirement applies to buildings exceeding 100,000 square feet, even if they are not classified as warehouses.
Annual WAIRE Report (AWR): For the 2023 compliance period, applicable to Phase 1 and 2 warehouses, the Annual WAIRE Reports were due by January 31, 2024. If you missed this deadline, reach out to NV5 for assistance. Going forward, these reports are due annually by January 31st. They should include information on truck trips, actions taken to earn Points, equipment usage metrics, and any mitigation fees paid.
Key Deadlines for Warehouse Compliance:
Now is the critical moment for warehouses to act, with compliance obligations varying based on warehouse size and phased according to square footage.
Phase 1 Warehouses (Over 250,000 sq ft):
- Submit your Annual WAIRE Report immediately if not already done, due by 1/31/2024 for the 2023 compliance year.
Phase 2 Warehouses (150,000 – 250,000 sq ft):
- Initial Site Information Report was due by 7/1/2023; SCAQMD is issuing NOVs to facilities missing this deadline.
- Submit your first Annual WAIRE Report immediately if not already done, due by 1/31/2024 for the 2023 compliance year.
Phase 3 Warehouses (100,000 – 150,000 sq ft):
- Submit Initial Site Information Report by 7/1/2024.
- Track data for reporting, as the first compliance period began on 1/1/2024.
- Take actions throughout 2024 to earn WAIRE Points from 1/1/2024 – 12/31/2024.
- Submit the first Annual WAIRE Report by 1/31/2025 for the 2024 compliance period.
No new 2024 deadlines apply to warehouses over 250,000 sq ft. Phase 1 operators should continue submitting Annual WAIRE Reports.
NV5 Is Here to Assist You
For warehouse owners, large facility managers, or fleet operators, Rule 2305 likely raises several pressing questions:
- Is my building subject to this rule?
- What are the reporting deadlines?
- What air quality improvements are mandated?
- When should I take action to prevent violations?
- What are the compliance costs anticipated?
NV5 provides support in implementing strategies that enable facilities to take advantage of incentives for decarbonization projects, such as fleet electrification, charging infrastructure, and solar integration. As you navigate these new regulations, our services are tailored to help you understand your compliance obligations, streamline WAIRE reporting, and adhere to the latest standards. Reach out to us for assistance at 562.495.5777 or contact Kristy Monji-Chung, Senior EHS Consultant at NV5, via email at Kristy.Monji@NV5.com.