California's Indirect Source Rule Taxes Warehouses

IWLA and the Commercial Real Estate Development Association (NAIOP) are leading an ISR Coalition Task Force to challenge California’s ISR Rule in the California State Court.

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Legal Challenge: California's Indirect Source Rule Taxes Warehouses

This rule applies to any warehouse that is 100k square feet or larger and located within the South Coast Air Quality Management District.

Solution: ISR Coalition Task Force to challenge California's ISR Rule in the California State Court.

We have a strong case based on three primary claims and now we need funding to fight the battle.

Help Fight the Battle - Send Your Pledge to Assist with This Difficult Case.

The IWLA/NAIOP ISR Coalition Task Force is asking for your monetary contribution to start the process. We are also looking for fundraising "captains" to help assist raising the necessary resources to fund this campaign.

Legal Challenge: California's Indirect Source Rule Taxes Warehouses

On May 7, the South Coast Air Quality Management District approved the Warehouse Indirect Source Rule – Warehouse Actions and Investments to Reduce Emissions. This rule will require warehouse owners and operators to reduce truck emissions or pay substantial fees (i.e., by using electric trucks/solar improvements through the South Coast Air Quality Management District – Warehouse Actions and Investments to Reduce Emissions program) or pay around $1 per square foot if warehouse owners are unable to make these improvements. No plan was presented by the South Coast Air Quality Management District on how the new tax revenues will be spent.

The data sources that we use for this type of analysis include customer inquiry data, sales figures, costs, market data, and customer feedback. View the Jurisdiction Web Map.

Solution: ISR Coalition Task Force to challenge California's ISR Rule in the California State Court.

Our estimate is that this legal battle will take $1 million to $1.5 million. But this seems low when compared to potentially almost a billion dollars in costs that will be assumed by warehouse operators if this rule is enacted. These estimated costs include:

  • legal representation;
  • a public relations campaign to help sway public opinion and pressure lawmakers;
  • research studies to support our challenge, and
  • all court and regulatory filings.

Help Fight the Battle - Send Your Pledge to Assist with This Difficult Case.