In 2021, South Coast Air Quality Management District (SCAQMD) introduced the Warehouse Indirect Source Rule (ISR) – Rule 2305, a crucial measure aimed at curbing indirect emissions from large warehouse facilities in California. The rule requires warehouses occupying more than 100,000 square feet to adopt renewable technologies such as commercial solar, energy storage, and EV charging stations. Implementation of these sustainable solutions offers point values, which in turn help in reducing incurred fees.
However, a recent update from an article written by the Los Angeles Times in September 2023, revealed a concerning trend. Despite the clear guidelines and benefits of compliance, over two-thirds of warehouses in Southern California subject to this rule are currently violating it. This non-compliance exposes them to potential penalties of up to $11,710 per day, a staggering amount that could severely impact business operations.
It’s not just about the penalties. The primary objective of ISR 2305 is to reduce nitrogen oxide (NOx) and diesel particulate matter (PM) emissions, thus playing a significant role in ensuring cleaner air for nearby communities. Warehouses have a social responsibility to protect the environment and the health of the communities they operate within.
For warehouses that are still deliberating on how to navigate this rule, Revel Energy offers a viable solution. While EV Charging Stations (EVCS) for fleet vehicles might seem like an attractive option due to the high reward points they bring, they also lead to a surge in energy usage. This increased energy demand translates to higher costs, negating the benefits of the technology to some extent.
Revel Energy recommends a holistic approach to sustainability. By integrating EVCS with commercial solar and energy storage, businesses can not only earn more points towards fee reduction but also manage energy costs effectively, in a truly sustainable way. Such a combination ensures that while warehouses are boosting their green energy credentials, they are also optimizing their energy consumption and costs.
With 1,400 warehouses currently out of compliance, there’s no better time to act than now. SCAQMD Executive Officer Wayne Nastri’s statement is clear: “Time is up for those not complying with our rule.” Warehouses have been aware of these regulations for two years, and the grace period has ended.
Revel Energy urges all warehouse owners and operators who haven’t yet acted to get in touch. Learn how your California business can navigate the complexities of ISR 2305 and avoid these costly penalties. With commercial solar and energy storage solutions tailored to your needs, Revel Energy stands ready to guide you towards a sustainable and compliant future.
It’s clear that the days of viewing sustainability as a secondary concern are over. For California warehouses, the future lies in embracing the new sustainability challenges, leveraging the state’s unique position, and adopting clean energy solutions that promise not just short-term savings but long-term value for these facilities.
Commercial grade rooftop solar is ideal for: manufacturing, warehousing, logistics, industrial, retail, hospitality buildings and more with over 10,000 sq. ft. rooftops.
Free standing carport solar generates added solar power for properties with limited rooftop space. Added benefits include shading and protection for employees vehicles.
Crucial for reducing peak demand charges. Automated to supply electricity when your panels won’t. Energy storage is ideal for businesses that incur significant peak charges.
As the popularity of electric vehicles increase, so does the demand for on-site charging. This sustainable amenity has become a parking lot fixture for competitive employers.
Corporate Business Park in Irvine, CA has created significant electricity cost savings through commercial solar installed across the 5-building business park.
See how this CPA firm saved on electricity and gained valuable tax credits through commercial solar that they used to keep cash in the businesses.
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