On September 29, Governor Newsom signed Assembly Bill 98 (Carrillo and Reyes), which imposes siting and construction requirements on a wide variety of warehouse and storage buildings.
Assembly Bill 98 is intended to address the community, environmental, and traffic impacts associated with urban warehouse projects; however, the bill applies to all buildings in which cargo, goods, or products are moved or stored for later distribution to businesses or retail customers and where heavy-duty trucks are involved in the movement of those goods.
So while AB 98 was intended to address urban warehouses, it has far greater reach. The bill is not limited to large warehouses that exceed 100,000 square feet, but would equally apply to much smaller storage buildings that may be just a fraction of that size (provided that the commodities stored in those buildings are transported by heavy-duty trucks).
In rural settings, the bill unintentionally imposes even more rigorous standards on agricultural projects because they are typically located on parcels zoned for agriculture rather than for industrial use. Under the bill, logistics use projects can only be sited on arterial roads, collector roads, major thoroughfares, or “local roads that predominantly serve commercial uses.” These types of roads may not be available where ag-related facilities need to be located in rural areas. The waiver process included in the bill is illusory considering that the project must be located in an existing industrial zone (and these projects are typically located in agricultural settings).
AB 98 also requires all local governments to update their circulation elements to identify and establish travel routes for the transportation of goods, materials, or freight for storage, transfer, or redistribution. These routes are to avoid residential areas and sensitive receptors. Failure to update the circulation element by January 1, 2028, exposes the local government to penalties of up to $50,000 for each six-month period.
AB 98’s author has committed to addressing some of the unintended consequences that AB 98’s drafting will have in rural/agricultural areas. RCRC will continue working with the author on cleanup legislation to address a host of complicated and unintended consequences resulting from the law’s secretive drafting process.
RCRC’s request for Governor Newsom to veto AB 98 can be found here.
For more information, please contact RCRC Senior Policy Advocate, John Kennedy.