Law That Limits Industrial Development Could Get “Clean Up”

Last year, Gov. Gavin Newsom signed a bill to regulate warehouses across the state. Now its authors want to “clean” it up.

State Sen. Eloise Reyes, a Democrat representing San Bernardino, and Assemblymember Juan Carrillo, a Democrat from Palmdale, have introduced two bills intended to “clean up” Assembly Bill 98, which impacts the logistics industry statewide and where new warehouses can go, Bisnow reported.

“AB 98 struck a delicate balance and is law here in California,” Reyes, co-author of AB 98, said in a statement. “Our joint effort this year will be narrowly focused on ensuring that the law can be implemented as intended.”

Commercial landlords and developers hated the bill. After the governor signed AB 98, commercial real estate groups vowed to fight back with opposing legislation in Sacramento.

AB 98 sets requirements for locations of new warehouses, including setbacks of 300 feet from homes and schools. In areas that aren’t zoned for industrial use or where the zoning had to be changed to accommodate the property, setbacks are extended to 500 feet.

The bill also dictates where trucks can travel to and from logistics properties.

If these uses are located within 900 feet of a loading bay at an industrial property, there is a cascade of regulations that the project must follow regardless of its size, according to Bisnow.

The bill, co-sponsored by Reyes and Carrillo, came in response to an Inland Empire warehouse boom of buildings of up to 1 million square feet, with trucks that bring pollution, traffic and noise to local neighborhoods.

“Let it be clear: AB 98 is not intended to stifle the logistics industry, nor is it an attempt at disrupting the supply chain,” Carillo said. “AB 98 holds local governments accountable to making responsible planning decisions.

“This year we will continue this critical work to ensure that our communities and our business partners can continue to grow together.”

Industry groups, including NAIOP of California, California Business Properties Association, BOMA California and The International Council of Shopping Centers, have asked lawmakers to address nine “pain points” with the cleanup legislation.

They include addressing how regulations on truck routes may impede building new projects, as well as clarifying enforcement of AB 98.

It’s not clear how much of the industry’s wish-list would be satisfied by the unnamed clean-up bills, dubbed spot bills or placeholder bills, with language subject to change, according to Reyes and Carillo, who said they plan to host meetings over the coming months.

— Dana Bartholomew