Everything you need to know about Southern California's WAIRE Program
In 2021, four counties in Southern California — Los Angeles, Riverside, Orange County, and San
Bernadino—adopted the Warehouse Actions and Investments to Reduce Emissions (WAIRE) program,
designed to reduce nitrogen oxide and diesel emissions associated with warehouses. The program
went into effect in 2022 and obligated every owner or operator of a warehouse greater than 100,000
sq. ft. to sustainability-related reporting and fines.
WAIRE PROGRAM
The WAIRE Program assigns a burden of responsibility to warehouse owners and operators using a point system; the more carbon-fueled loads that come in and out of a facility; the more points that facility accrues.
WHO'S AFFECTED?
Owners and operators of warehouses that have 100,000 square feet or more of indoor space in a single building.
WAIRE POINTS COMPLIANCE OBLIGATION (WPCO)
The cumulative points accrued are known as the WAIRE Points Compliance Obligation (WPCO).
- Points are calculated based on the number of truck trips annually, with larger trucks weighted higher (e.g., tractors or tractor-trailers are multiplied by 2.5).
- Each accrued point results in a $1,00 fine, payable or offset annually.
- For warehouse owners and operators, these fines can constitute a substantial expense.
OFFSETING FINES WITH NZE & ZE LOADS
One of the most effective methods to offset WAIRE fines is to run loads using Near-Zero (NZE) or Zero-Emission (ZE)
carriers. Using an NZE or ZE carrier offsets WAIRE burdens at an approximate rate of 9-to-1, meaning that 100 NZE or
ZE loads would offset 900 carbon-fueled loads. ZE offsets at a slightly higher rate than NZE, but not by much.
See below for a breakdown of the offset ratio per 1,000 loads:
100 NZE Loads = 12 Point Offset (around $12,000 in offsets)
100 ZE Loads = 14 Point Offset (around $14,000 in offsets)
Since NZE and ZE technologies are still limited by range, the largest opportunity to help our customers exists in drayage.
Take this example from a recent project we implemented for a customer.
CUSTOMER EXAMPLE
Our customer owns distrubtion centers in WAIRE counties, subjecting them to a significant WAIRE Points Compliance Obligations (WPCO) and associated fines.
Our solution focuses on converting inbound and outbound ocean container shipments where its easiest for the shipper, results in no additional operational cost in most cases, and will offset and savings.
According to the plan, our team will be responsible for a ramp-up volume of 4,820 loads in the first year. Here's how the NZE and ZE portion of the loads break down in terms of WAIRE offsets and savings:
- 75% of loads run with NZE: 3615 loads (9-1)
WAIRE Offset: 415 points ($415,000 in offsets)
Carbon Loads Offset: 32,535 - 20% of loads run with ZE: 964 loads (11-1)
WAIRE Offset: 135 points ($135,000 in offsets)
Carbon Loads Offset: 10,604 - Total Annual Offsets: $550,000 in savings
- Total Carbon Loads Offset: 43,139
Once the program is ramped up, our team will be responsible for 12,000 annually. Here's how the NZE and ZE portion of the loads break down in terms of WAIRE offset and savings:
- 75% of loads run with NZE: 9000 loads
WAIRE Offset: 1035 ($1,035,000 in offsets)
Carbon Loads Offset: 81,000 - 20% of loads run with ZE: 2400
WAIRE Offset: 336 points ($336,000 in offsets)
Carbon Loads Offset: 26,400 - Total Annual Offset: $1,371,000
- Total Carbon Loads Offset: 107,400