South Coast AQMD board approves $73.1 million from warehouse fees for zero-emission trucks and charging
The money comes from mitigation fees paid by warehouse operators under the district's WAIRE program. Applications open Oct. 13 and close Dec. 15, and projects will be funded first come, first served.
The South Coast Air Quality Management District's governing board on Sept. 4 approved $73.1 million for zero-emission trucks and the charging and fueling stations that serve them, the district said in a news release.
The money comes from fees that operators of warehouses pay into a mitigation program known as WAIRE, short for Warehouse Actions and Investments to Reduce Emissions, according to the release.
The district's territory covers much of Riverside, San Bernardino, Los Angeles and Orange counties and takes in the Coachella Valley.
What the money will buy
The district called the $73.1 million a first-year funding opportunity. It listed four eligible categories:
- Zero-emission Class 4–8 trucks
- Zero-emission yard trucks
- Electric truck-charging infrastructure
- Hydrogen-fueling infrastructure
Priority will go to projects located in the same communities that generated the fees, the release said.
Warehouse and fleet operators can apply, as can companies that run charging or fueling sites for trucks serving warehouses. The district said applicants may stack the money with other incentive programs where rules allow.
"The goal of WAIRE has always been to reduce emissions, not simply collect fees," Governing Board Chair Michael A. Cacciotti said in the release. "When warehouses choose the mitigation-fee option, we have a responsibility to ensure those dollars are turned into projects that improve air quality."
Timeline
An online portal with application requirements was due to go live in late September, the district said.
The application period opens Oct. 13 and closes Dec. 15. Funding will go to projects in the order applications arrive.
Background on the rule
WAIRE was created by the district's Warehouse Indirect Source Rule. The release said about 4,000 warehouses in the region fall under the rule.
Operators have several ways to comply, including paying mitigation fees instead of completing specific actions. Fewer than 5% of WAIRE participants have chosen to pay the fees so far, according to the district.
The release said warehouse-related emissions of nitrogen oxides, which form smog, equal the combined output of every refinery, power plant and other stationary source in the South Coast Air Basin. It identified heavy-duty trucks and cargo handling equipment as sources tied to warehouse activity.
The district said it developed the program publicly, holding stakeholder meetings and webinars and taking written comments, and heard from industry, environmental organizations and community groups.