New California law focuses on warehouses and truck routes

California Gov. Gavin Newsom has signed into law a first-of-its-kind bill that is touted to increase the state’s regulation of warehouses. The new law also covers truck routes to warehouses.

The law is part of the state’s pursuit to regulate warehousing and trucking activity in an effort to reduce emission and benefit community health.

Bill sponsors said the new rules are necessary to address the boom in warehouse development in the state attributed to the growth of e-commerce and consumer expectations for rapid shipping.

They added that studies have correlated the presence of warehouses with negative health effects on nearby communities. Truck traffic associated with warehouses is described as the primary factor.

Assembly Bill 98

The rules included in AB98 apply statewide, but the focus is on California’s Inland Empire. This region east of Los Angeles is an urban and metropolitan area centered on the cities of Riverside and San Bernardino.

A bill analysis reports that 21 of the largest 100 logistics leases signed in 2019 were located in the Inland Empire.

Key provisions in the new law include establishment of buffer zones between warehouses and “sensitive areas” that include homes, schools and daycare centers. Also covered is establishment of truck routes that avoid residential areas.

The new law requires a minimum setback between a sensitive area and the dock bay of a warehouse and puts in place requirements that warehouses be built in accordance with current building standards.

These standards include investments in renewable energy, a buffer of up to 100 feet around the facility and a prohibition on the dock bay being adjacent to any sensitive receptor.

Assemblymember Eloise Gomez Reyes, D-Colton, said the legislation “strikes a delicate balance” that puts in place a higher standard for logistic development near sensitive areas.

“The signing of AB98 represents an important step forward for communities impacted by the over-proliferation of warehousing,” Reyes said in prepared remarks.

She added that California’s local governments would retain the authority to put in place stronger rules.

#AB98 has been signed by the Governor! This is a huge win for communities affected by warehouse over-proliferation. The new minimum standards protect vulnerable areas near sensitive receptors while allowing local communities to adopt even stronger measures. pic.twitter.com/LtcDcdHhOG

— Asm Majority Leader Emerita Eloise Reyes (@EGReyesCA) September 30, 2024

Truck routes

Included in the new law is a requirement for local governments to create a truck routing plan to and from the state highway system.

Truck routes must also be updated throughout the state to reduce truck idling and prevent truck routes from cutting through residential areas. Local governments are required to maximize the use of interstate or state divided highways as preferred locations for truck routes.

Truck loading bays must be at least 500 feet from the property line of the nearest sensitive area to the nearest truck loading bay. A separate entrance for heavy-duty trucks must be accessible “via a truck route, arterial road, major thoroughfare or a local road that predominantly serves commercial-oriented uses.”

Buffers and sound barriers for light and noise also are required.

The new California law will take effect on Jan. 1, 2026. Cities and counties must update their circulation elements (identifying and establishing truck routes) by January 2028.

Opponents detail multiple concerns for new rules

Critics said the buffer zones and mandatory truck route provisions would severely limit the availability of land suitable for logistics uses.

They argued that this could push logistics uses further from population centers, increasing the distance that trucks must travel. As a result, the rules could increase the cost of transportation and the emission from truck traffic.

Opponents added the enhanced rules could lead to higher operational costs and logistical challenges for warehouse operators. In effect, the regulations could discourage developers and result in fewer new logistics facilities being constructed in the state.

They warned that businesses might consider relocating to states with less stringent regulations. The result could be a negative impact on California’s economy. LL

More Land Line coverage of California news is available.