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South Coast Air Quality District Votes to Impose New Taxes on Critical Supply Chain

May 7, the South Coast Air Quality Management District (SCAQMD) voted to approve Indirect Source Rule PR 2305.  The regulation will impose a $1 billion tax on over 3,000 warehouse distribution centers in Southern California.

Despite our industries long battle opposing the measure and ample evidence to show it will hurt jobs and increase costs of goods to consumers, the SCAQMD board passed the controversial rule.  The Rule will impose permanent, annual costs on warehouses of approximately $1.00 per square foot.

“In fact, [SCAQMD] staff has said in their Environmental Assessment that “Potential changes in NOx and DPM concentrations would be speculative and have not been calculated and that… “it is not possible’ to determine the emissions impacts of the rule…. – Peter Herzog, NAIOP

We would like to thank all of the NAIOP members who joined the SCAQMD board meeting to express their strong opposition to this misguided rule.  In addition, we had nearly fifty organizations sign onto this coalition letter and many more who sent in individual letters.

Thank you to board members Carlos Rodriguez, Larry McCallon, Lisa Bartlett, Janice Rutherford for voting in opposition to this rule.