CA Imposes Restrictions on Industrial Development

California Gov. Gavin Newsom has signed a bill into law, known as Assembly Bill 98, which imposes new requirements that industrial landlords and operators must meet – regardless of whether they operate on sites zoned for industrial use.

Among other provisions, the bill establishes a minimum distance requirement between loading bays in new or existing warehouses undergoing expansion and community spaces, such as residences, hospitals, schools, assisted living facilities, and parks. The legislation also introduces new building standards for landscaping buffers, signage, and parking that facilities developed after January 1, 2026, will be required to meet.

Operators of warehouses exceeding 250,000 square feet will also be required to file a truck route plan with their local county or city government before they can obtain a certificate of occupancy.

County and city governments are mandated to establish routes for truck traffic that avoid community spaces and maximize the use of local roads predominantly used for commercial traffic.

The state legislature in Sacramento voted to approve the measure at the end of August, more than a year and a half after the bill was introduced.

A report from Politico indicated that business and environmental groups had lobbied the governor against the bill. However, a statement issued by the state’s Chamber of Commerce, the California Retailers’ Association, and the California Apartment Association described the bill as a good compromise that avoids the negative economic impacts of such legislation.

“Governor Newsom’s decision to sign AB 98 provides a sensible path forward, ensuring that businesses can operate and expand while continuing to protect citizens who live and work near necessary logistics facilities,” Denise Davis, executive vice president of communications at CalChamber, said in a statement.

Executives from the League of California Cities expressed disappointment at the governor’s decision to sign the bill. The league’s Chief Executive Director and CEO, Carolyn Coleman, stated that the legislation will “harm our cities, stifle job growth, and threaten the economic lifeblood of communities throughout California.”