State Incentive Program
5 min read

Understanding California’s New WAIRE Program

Published on 
June 7, 2024

As a climate leader in the U.S., California is constantly striving to improve the environment for the health, enjoyment, and future of its residents.

Part of its push for cleaner air is the new Warehouse Actions and Investments to Reduce Emissions (WAIRE) program, which targets emissions from warehouses in the South Coast (large areas of Los Angeles, Orange, Riverside, and San Bernardino counties, including the Coachella Valley).

On Aug. 2, 2022, the South Coast Air Quality Management District (SCAQMD) of California began phasing in new regulations that will require warehouse owners and operators to earn WAIRE points that help offset the emissions of the vehicles used to transport goods in and out of their warehouses.

Initially, the new rules will apply to warehouses with 250,000 square feet of interior space or more, but by 2024, they’ll apply to all 100,000 square feet or larger warehouses in a single structure.

Operators that lease over 50,000 square feet of space in a warehouse of 250,0000 square feet or larger will also need to earn WAIRE points.

What Is The WAIRE Program?

The Warehouse Actions and Investments to Reduce Emissions (WAIRE) program (also called Rule 2305) aims to improve air quality in the South Coast region by reducing nitrogen oxides, diesel engine emissions, and particulate matter, like soot, that result from warehouse transportation operations.

Each warehouse will be responsible for earning WAIRE points to meet their WAIRE Points Compliance Obligation (WPCO). The WPCO represents the emissions that must be offset due to the truck traffic in and out of the warehouse in a given year.

The WAIRE Points System

The WAIRE Points Compliance Obligation (WPCO) is calculated using:

  • WATTS: The number of Weighted Annual Truck Trips in and out of the warehouse.
  • Stringency: A numeric value that determines the required compliance obligation. Set at 0.0025 WAIRE Points per WATT, phased in over three years.
  • Annual variable: Determined by the phase-in schedule of the warehouse.

Calculating WAIRE Points Compliance Obligation

A graphic showing a formula for calculating WAIRE points; warehouse points are determined by weighted annual truck trips (WATTS) multiplied by stringency and multiplied by the annual variable.

CALCULATING WATTS

WATTs are the total number of one-way truck trips made to transport goods in or out of the facility. Each visit from a truck is counted as two trips. Since tractor-trailers (Class 8 trucks) generate more emissions than smaller trucks, they’re weighted heavier in the WATTS equation.

WATTs = (Class 2b – Class 7 truck trips) + (2.5 x Class 8 truck trips)

WATTs = (Straight truck trips) + (2.5 x tractor or tractor-trailer trips)

STRINGENCY

Compliance Year ≥ 250000 sq. ft. 150,000-249,999 sq. ft. 100,000-149,999 sq. ft.
2022 0.000825 No WPCO No WPCO
2023 0.001675 0.000825 No WPCO
2024 0.0025 0.001675 0.000825
2025 0.0025 0.0025 0.001675
2026 or later 0.0025 0.0025 0.0025

ANNUAL VARIABLE

Compliance Year ≥ 250000 sq. ft. 150,000-249,999 sq. ft. 100,000-149,999 sq. ft.
2022 0.33 0 0
2023 0.67 0.33 0
2024 1.0 0.67 0.33
2025 1.0 1.0 0.67
2026 or later 1.0 1.0 1.0

For example, a warehouse of 250,000 sq. ft. with 30 tractor-trailer trips per day, five days per week, 50 weeks per year.

Formula demonstrating WAIRE points calculation.

Number of tractor-trailer trips = (30 trips/day*2) * (5 days/week) * (50 weeks/year) = 15,000

WATTs = (Straight truck trips) + (2.5 x tractor or tractor-trailer trips) =

0 + (2.5 *2,500) = 37,500 WATTs

37,500 WATTs* 0.000825 Stringency * 0.33 Annual Variable =

10.21 Warehouse Points Compliance Obligation

Earning WAIRE Points

Once an owner or operator has calculated their WAIRE Points Compliance Obligation (WPCO) for the year, there are three options for earning the required WAIRE points:

  • Complete actions on the WAIRE menu.
  • Get approval for a site-specific WAIRE action plan and complete all required tasks.
  • Pay a fee to mitigate existing emissions.

The WAIRE menu (page 20) provides comprehensive information on what action warehouse owners and operators can take, complete with the number of points associated with each item. Earning points through the WAIRE menu has added benefits, like reducing energy costs, encouraging EV use, and minimizing the facility’s overall carbon footprint.

Actions from the WAIRE menu include:

  • Installing a commercial solar system (15–19 points)
  • Installing electric vehicle charging stations (3–118 points)
  • Using commercial solar systems or electric vehicle charging stations (1–42 points)

Do you own or lease a warehouse in southern California?

Call TENCO SOLAR at 888-507-6937 to learn how our commercial solar panel systems can help your facility meet its WAIRE point requirements.

Take Control Of Your Energy With TENCO SOLAR

Solar energy is one of California’s most important renewable energy sources, and the WAIRE menu’s inclusion of rooftop solar and solar carports acknowledges this.

TENCO SOLAR has over 20 years of experience in commercial solar installation, so we’re prepared to educate warehouse owners and operators on how best to incorporate solar energy into WAIRE compliance goals.

We provide long-lasting, high-performance solar energy products and will custom-design your solar panel system to meet your facility’s needs.

Our experts can help your business comply with the new WAIRE requirements while taking advantage of all available federal, state, and local tax incentives to maximize the return on your solar energy investment.

Contact TENCO SOLAR at 888-507-6937 to learn more about how quality solar energy systems factor into your budget and WAIRE plan.

Learn How You Can Save, Contact TENCO SOLAR Today

Our solar energy experts can help you understand and take advantage of available tax benefits or other incentive programs for your project. Contact TENCO SOLAR to get started!

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