California Tightens Warehouse Regulations with New Design and Build Standards

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The South Coast Air Quality Management District (AQMD) is clamping down on warehouse emissions, issuing 475 violations since 2023 for noncompliance with its Indirect Source Rule—a key component of its Warehouse Actions and Investments to Reduce Emissions (WAIRE) Program. 

This regulation targets warehouses over 100,000 square feet in Southern California, particularly in the Inland Empire, where cities such as Ontario and Fontana have each recorded more than 40 violations. Other affected areas include Jurupa Valley, Chino and Rialto.

Now, the regulatory focus is expanding statewide with the introduction of Assembly Bill 98 (AB 98). Effective January 1, 2026, Assembly Bill 98 sets new design and build standards and mandates updated truck routing plans to reduce the adverse air quality impacts of truck traffic near warehouses. The law requires new or expanded warehouses—defined as facilities increasing at least 20 percent of their existing square footage—to meet rigorous energy efficiency, noise mitigation, and traffic routing standards. Notably, warehouses that sell food or household goods directly to consumers or those primarily served by rail are exempt.

Under AB 98, new warehouses must adhere to specific requirements, including compliance with California’s building energy efficiency standards and development limited to roadways suitable for heavy commercial traffic (with waivers available under certain conditions). The new law also requires the implementation of light and noise mitigation measures, and design features such as relocating truck entry gates and posting anti-idling and directional signage at loading docks.

Cities and counties also face new deadlines. Municipalities within the “warehouse concentration region” (including Riverside and San Bernardino counties and cities like Chino, Fontana, and Ontario) must update their circulation elements to include designated truck routes by Jan. 1, 2026, while other areas have until Jan. 1, 2028. Failure to comply could result in fines of up to $50,000 every six months from the attorney general.

Since the warehouse Indirect Source Rule was enacted in 2021, AQMD has taken a firm stance. Violators may face civil penalties of up to $10,000 per day, with higher fines for negligent or intentional breaches. Although many operators have moved into compliance, the agency remains vigilant, stating that initial efforts will focus on settlements—potentially involving environmental projects or financial penalties—before resorting to court action.

AQMD has also introduced mobile air monitoring systems in Riverside and San Bernardino counties, set to operate from 2026 to 2032, to assess the impact of warehouse emissions on nearby communities. 

Critics argue that the current approach, which allows operators to pay fines rather than invest in cleaner technologies, falls short of protecting vulnerable communities. Ana Gonzalez, executive director of the Center for Community Action and Environmental Justice, said that stricter enforcement—such as mandating operational shutdowns after repeated noncompliance—is necessary.

Meanwhile, Paul Granillo of the Inland Empire Economic Partnership acknowledges the progress in compliance but warns that limited availability of clean trucks and equipment could strain local businesses and the regional economy.

These combined efforts by AQMD and the state signal a robust commitment to reducing the environmental impact of warehouse operations—a priority that is set to reshape warehouse development and operational practices across California in the coming years.

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