SCAQMD Imposes Taxes and Regs on 3,000 SoCal Warehouses

The South Coast Air Quality Management District (SCAQMD) board of governors voted earlier this month to impose new taxes and regulations on more than 3,000 warehouses throughout Southern California. The rule mandates warehouse operators to either reduce truck emissions or pay substantial taxes to the SCAQMD. The rule will impose additional permanent costs on warehouses of approximately $1 per square foot, totaling close to $1 billion annually.

“NAIOP SoCal strongly supports reducing air emissions, improving air quality and adopting zero emissions vehicles as the industry standard for trucks and equipment. Unfortunately, this new rule is flawed and won’t achieve these goals,” said Timothy Jemal, CEO of NAIOP SoCal. “The rule will cost jobs and raise consumer prices with no quantifiable emission reductions. The board’s attempt to regulate trucks through warehouses and impose new taxes on the region’s critical supply chain is misguided and will be challenged.”

Warehouses and the supply chain are vital to Southern California’s economy, distributing COVID-19 vaccinations, food and essential goods for approximately 18 million people.