California's WAIRE Program Explained | SunGreen Systems
Updated
November 26, 2024
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Alex has spent his entire career, in solar energy. In his current role at SunGreen, Alex oversees the design and optimization of systems to ensure they fit customer needs and maximize return on investment. Alex loves the technical aspects of solar energy production and is also well-versed in Federal, state, and utility-level policies regarding renewable energy. Alex is also a regular panel member in various industry webinars.
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What is California’s WAIRE Program and How Does It Work?
As a warehouse operating in California, you’ve likely heard about the WAIRE Program, but what does it actually mean for your business? Let’s break it down.
WAIRE, which stands for Warehouse Actions and Investments to Reduce Emissions, is part of Rule2305 introduced by the South Coast Air Quality Management District (SCAQMD). This initiative aims to reduce emissions from large warehouses while encouraging businesses to invest in cleaner technologies.
At SunGreen Systems, we’re here to simplify WAIRE compliance and show you how solar energy and other upgrades can help your warehouse stay ahead of these regulations.
What is WAIRE?
The WAIRE Program is designed to reduce pollution from warehouses by addressing their indirect impact on air quality, primarily through diesel truck traffic. Warehouses larger than 100,000 square feet must now take steps to offset their environmental footprint by earning WAIRE Points, which are tied to their activities and truck trips.
Rule 2305
Rule 2305, which governs WAIRE, mandates that warehouse owners and operators take specific actions to reduce emissions. These actions include switching to zero-emission (ZE) trucks, installing renewable energy systems like solar panels, or paying mitigation fees. The ultimate goal? To help businesses cut emissions while maintaining operational efficiency.
Key takeaways from this article
What is WAIRE?
The WAIRE Program, established under Rule 2305, requires warehouses larger than 100,000 square feet to reduce emissions by earning WAIRE Points or paying mitigation fees.
How to Earn WAIRE Points
Warehouses can earn points through actions like installing solar panels, upgrading to energy-efficient systems, or adding EV chargers.
Why Solar Matters
Solar energy helps meet WAIRE requirements, reduces utility bills, and positions warehouses as sustainable leaders.
Non-Compliance is Costly
Failing to earn WAIRE Points results in mitigation fees of $1,000 per point, which can quickly add up.
SunGreen Systems Can Help
From custom solar installations to compliance support, SunGreen offers solutions to make WAIRE compliance easy and cost-effective.
How WAIRE Benefits Commercial Solar Projects
If you’re already considering solar for your warehouse, the WAIRE Program gives you an additional incentive to act. Solar energy systems are a fantastic way to earn WAIRE Points while reducing your dependency on traditional electricity sources. By investing in solar, you can lower emissions, reduce utility bills, and position your business as a leader in sustainability.
For example, installing solar panels can help you:
● Offset emissions associated with warehouse operations.
● Provide renewable energy for EV chargers, which also earn WAIRE Points.
● Reduce long-term operational costs.
Solar also opens the door to significant tax incentives and rebates, giving you even more reasons to act now.
WAIRE Compliance (and Non-Compliance) Explained
Compliance with WAIRE requires warehouse operators to submit several reports, including the Initial Site Information Report (ISIR) and an Annual WAIRE Report. The ISIR is a one-time submission that outlines your warehouse’s size, operations, and expected truck traffic. The Annual WAIRE Report, on the other hand, tracks the steps you’ve taken to earn WAIRE Points throughout the year.
Failing to comply with the WAIRE Program could lead to significant penalties. Businesses that don’t earn enough WAIRE Points must pay mitigation fees, currently set at $1,000 per point. This can add up quickly if you’re not proactive.
How to Earn WAIRE Points
There are several ways to earn WAIRE Points, each tailored to the specific needs of your warehouse:
● Investments to Reduce Emissions
Actions like installing solar panels, upgrading HVAC systems, or enhancing energy efficiency directly contribute to your point total. Solar systems, in particular, provide ongoing benefits by reducing both emissions and operational costs.
● Custom WAIRE Plans
If standard options don’t suit your operations, we can create a Custom WAIRE Plan. This allows you to tailor compliance strategies, whether it’s adopting renewable energy or implementing unique emission-reduction projects.
● Site Improvements
Adding EV chargers or transitioning your fleet to zero-emission vehicles not only earns WAIRE Points but also aligns your business with California’s broader sustainability goals.
WAIRE in Action: A Real-World Example
Let’s say your 200,000-square-foot warehouse receives 2000 visits annually from T7 NOOS (Class 8) trucks. Here’s how your WAIRE Points Compliance Obligation (WPCO) is calculated:
Multiply truck trips (2000) by the weighting factor for Class 8 trucks (2.5), giving you 500 Weighted Annual Truck Trips (WATTs).
Apply the stringency factor of 0.0025, resulting in 12.5 WAIRE Points. (Your Stringency Factor is found in the WAIRE Implementation Guidelines)
If you’re unable to earn these points, you’d pay a mitigation fee of $12,500 ($1,000 per point X 1.25).
Investing in solar panels or energy efficiency upgrades could offset this obligation, reducing costs and boosting sustainability. Generally, 100 kW of solar installed on your rooftop earns 15 points. This means that 12.5 points can be used this year, and 2.5 points can be banked for the future or transferred to another entity. The solar system will also generate 1 WAIRE point each year for its production. So next year, you'll only need to find 8 WAIRE because 3.5 are coming from the solar system. The solar system also generates about $25k of annual savings on your electricity bill.
WAIRE Program Frequently Asked Questions
What’s the benefit of using solar for WAIRE compliance?
Solar energy reduces your emissions, helps earn WAIRE Points, and cuts your utility bills. It’s a win-win for compliance and cost savings.
What happens if I don’t meet my WAIRE Points obligation?
You’ll need to pay a mitigation fee, which can quickly add up. Taking proactive steps, like installing solar, minimizes these costs.
How does the Initial Site Information Report work?
The ISIR is a one-time report detailing your warehouse’s size and operations. It’s your first step toward WAIRE compliance.
How SunGreen Systems Can Help
At SunGreen Systems, we understand the complexities of WAIRE compliance and the challenges warehouse operators face. Here’s how we can assist:
● Custom Solar Solutions: We design solar systems tailored to your warehouse’s needs, maximizing energy production and WAIRE Points.
● Energy Efficiency Upgrades: From lighting to HVAC improvements, we help reduce emissions and operational costs.
● Compliance Guidance: Our team ensures you meet WAIRE requirements, from preparing the ISIR to earning enough points annually.
● EV Charger Installation: Pairing solar with EV charging stations not only reduces emissions but also prepares your business for the future.
Take the Next Step
WAIRE compliance might seem daunting, but it’s an opportunity to improve your operations and make a positive environmental impact. Whether you’re ready to invest in solar or need help navigating Rule 2305, SunGreen Systems is here to guide you.
Ready to learn more?
Contact us today to explore how we can make WAIRE compliance easy and cost-effective for your business.
