The South Coast Air Quality Management District has adopted a rule aimed at regulating nitrogen oxide and diesel particulate matter emissions related with truck traffic at area warehouses.
The Los Angeles County Business Federation said the move is unfair.
"We remain shocked at the irresponsible, counterproductive action taken in May by the South Coast Air Quality Management District," Tracy Hernandez, founding CEO of the Los Angeles County Business Federation said in a statement. "Their decision to attempt regulation of mobile sources outside of their jurisdiction — with no evidence it will reduce emissions and after staff advised the board the new rule and tax will eliminate tens of thousands of jobs — is a travesty."
The rule will "drastically increase" compliance costs for warehouse operators in the South Coast Air Basin, requiring such operators to achieve compliance through mechanisms like green projects or mitigation fees, a press release said.
In total, the rule will impact approximately 4,000 warehouses in the South Coast Air Basin with an upper-end overall compliance cost estimate of $979 million annually, the South Coast AQMD said, according to a press release.
"The warehouse rule is designed to provide flexibility to warehousing facilities so they can find the approach that best suits their business needs," Bradley J. Whitaker, senior public information specialist with the South Coast Air Quality Management District, said in a statement. "While there are costs to implementing the rule, the expected public health benefits from reduced emissions are estimated to exceed those costs by about three to one."
The Los Angeles County Business Federation said the new rule will result in lost jobs and disproportionately impact certain areas.
"These job losses will disproportionately harm families in the same communities the board is claiming to support: Communities of color across the region," the Los Angeles County Business Federation said in a statement. "This is not how effective public policy is made. Regulations like this only encourage business migration out of California, further increasing emissions as trucks from the port travel farther to deliver goods to them."
For warehouse operators, the first report due under the rule is Wednesday, Sept. 1.