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South Coast AQMD Governing Board Adopts Rail Yards Indirect Source Rule

On August 2nd, South Coast AQMD’s Governing Board adopted Rule 2306, otherwise known as the Freight Rail Yards Indirect Source Rule (ISR), which requires rail yard operators to take actions to meet specific emission reduction targets.

The rule is expected to reduce nitrogen oxides (NOx) emissions associated with freight rail yards by about 10.5 tons per day between 2027 and 2050. The rule will work together with regulations recently adopted by the California Air Resources Board (CARB) and will ensure that rail yards in the South Coast Air Basin reduce emissions. Freight rail yards subject to the rule will be required to achieve up to 82 percent emissions reductions by 2037 through a variety of actions, including using cleaner technologies or lower-emitting equipment associated with rail yards.

More than 80 percent of NOx emissions in the South Coast Air Basin come from mobile sources, with nearly half linked to goods movement. Cutting NOx is critical for reducing smog and meeting federal air quality standards. Communities near rail yards are especially impacted by ozone and fine particulate matter from mobile sources. Emissions tied to rail yards account for about 9 percent of the region’s smog-forming emissions.

The rule applies to owners or operators of proposed, new, and existing freight rail yards located within South Coast AQMD’s jurisdiction. As part of the rule, owners and operators of freight rail yards will be required to report on the planning, development, and use of zero-emission infrastructure to support state regulations and meet broader federal and state zero-emission goals. The rule also requires state and local government agencies to require rule compliance when they enter, renew, or amend a contract with the facility owner or operator.

The Rail Yards ISR covers about 25 facilities located throughout South Coast AQMD’s jurisdiction. The Rail Yards ISR was carefully developed over the course of seven years through extensive outreach, beginning in 2017. Public input and feedback were solicited by engaging with various stakeholders, including communities impacted by freight rail yard emissions, potentially affected businesses and industries, environmental organizations, trade associations, public agencies, and others.

The Rail Yards ISR will become effective after the U.S. Environmental Protection Agency approves the Rail Yards ISR and CARB’s associated rules on locomotives and drayage truck fleets. For more information, visit https://www.aqmd.gov/home/rulescompliance/rules/scaqmd-rule-book/proposed-rules/rule-2306.

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