NYC Warehouse Indirect Source Rule

April 23, 2026

A warehouse indirect source rule (ISR) is an important tool the City is developing to reduce mobile sources of pollution and improve our health.

What is an Indirect Source Rule?

A warehouse indirect source rule (ISR) is a policy that reduces air pollution by regulating large warehouse facilities that attract mobile sources of air pollution-predominantly trucks. Significant truck traffic associated with large warehouses brings health and environmental impacts for New Yorkers. Air pollution from traffic alone contributes to hundreds of premature deaths and hospitalizations each year in NYC. A warehouse ISR, which the City could create through an amendment to the Air Code, would set up a framework for reduction of air pollution associated with large warehouses.

How Would the Program Work?

Based on the number and type of vehicle trips to and from a large warehouse in a given year, a warehouse operator would be assigned a "points obligation." To satisfy that obligation, the warehouse operator would need to select actions from a menu of options. Each action, or menu item, would be assigned a points value. The number of points associated with each menu item would be based upon the cost of the investment and/or its pollution reduction impact. The points values of the total number of actions taken would need to equal the warehouse operator's points obligation. This menu of options approach would give large warehouse operators flexibility in how to achieve compliance with the program's requirements.

Menu options would include things such as purchase and use of zero-emission and/or near zero-emission vehicles, cargo bikes, EV chargers, zero emission yard trucks, installation of anti-idling technology, as well as other strategies. In addition, a warehouse operator could apply for a custom plan, by proposing actions that are not on the points menu, but which further the goals of the program. This could facilitate innovation and could support other City initiatives, such as Blue Highways and Microhubs.

A Complement to City Initiatives

ISR would work in tandem with other City programs. For example, the NYC Department of Transportation spearheads several programs to support the freight industry, including funding for vehicle purchases through the NYC Clean Trucks Program, programs to support commercial use of cargo bikes, establishing microhubs, piloting delivery lockers in public space, and programs to support the transition of deliveries to off-hours. The NYC Economic Development Corporation has partnered with the Department of Transportation on the Blue Highways program to return freight to our waterways, has launched the BATWorks climate tech innovation and green economy workforce development hub, manages freight rail assets, and drives freight-focused EV charging and workforce development opportunities.

Next Steps

The City is commencing environmental review (City Environmental Quality Review, or CEQR) for this policy to evaluate effects on the environment and allow for public comment.

Additional Resources

• Case studies of other Indirect Source Rule programs
• New York City Council's ISR Bills: Intro 1130-2024 Legislation and Intro 0053-2026 Legislation