California Governor Gavin Newsom signed Assembly Bill 98, which established new siting and design standards for industrial warehouses in the state, according to a news release.

The bill introduces a new layer of approval for truck routing and aims to address concerns about the health impacts of warehouses on nearby communities.

Starting in 2026, AB 98 will require specific standards be met before the approval of new or expanded distribution centers, the release detailed. Warehouses will need to be located on local roads or thoroughfares that serve commercial uses and be set back at least several hundred feet from “sensitive sites” — homes, schools and healthcare facilities. The bill also requires warehouses to have energy-efficiency and electric vehicle-ready measures, physical buffers, separate entrance for trucks and air quality monitoring.

Some parts of the law impacting trucking will take effect in January 2025, while the warehousing development component takes effect in January 2026.

Projects approved before Jan. 1, 2025 may be exempt if development begins within five years.

Critics of the bill, such as Sarah Wiltfong of the Supply Chain Council, have highlighted several issues with AB 98, including concerns about redeveloping obsolete industrial buildings and the definition of buffer areas.

“Because the legislative compromise that created the new law occurred in the final days of session, there was no ability to amend the legislation,” Wiltfong told FreightWaves.

Meanwhile, environmental advocates remain concerned that the bill’s setback requirements for large warehouses are not sufficient to protect vulnerable communities. A news release said the California Air Resources Board recommended at least 1,000-feet to reduce pollutant concentrations.

“This is disappointing for our communities who will have to bear the brunt of weak standards,” People’s Collective for Environmental Justice in San Bernardino co-Founder and Policy Analyst Andrea Vidaurre said.”

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