Businesses oppose warehouse restrictions that could lead to job losses – deadline approaches

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INLAND EMPIRE – The California Business Properties Association, Inland Empire Economic Partnership and others issued a letter, dated August 26, in opposition to a warehouse restriction bill – AB 98, that may be passed on August 31st.

The coalition says the bill could lead to significant job losses due to the severe restrictions.

Potentially drive businesses out of California

The coalition says AB 98 is set to be introduced through a last-minute gut and amend just days prior to the end of the legislative session on August 31st.

“Assembly Bill 98 (Carrillo; D-Palmdale and Reyes; D-San Bernardino) imposes statewide mandates on warehouse locations and operations, overriding local control,” says a summary statement on the California Business Properties Association website.

They go on to say that it requires buffer zones, truck route restrictions, and zero-emission vehicle standards. The coalition says this will severely limit land for logistics use and potentially drive businesses out of California.

“While we share the goal of improving environmental and community health, the approach taken by this bill creates significant economic and logistical challenges that could ultimately be counterproductive,” says the coalition.

Balancing economic development with environmental concerns

The AB 98 legislation aims to reduce environmental and community impacts by setting guidelines for truck traffic routing. It considers factors like air quality, noise pollution, and safety.

Beginning on January 1, 2026, if the bill passes, local governments will be required to include truck route plans in their general plans for logistics-related projects. They say this is to ensure better management of heavy-duty vehicle traffic.

In addition, cities and counties must include buffer zones between warehouses and sensitive receptors – homes, hospitals, schools, daycares and parks in their general plans by January 1, 2026.

New logistics-related projects approved after this date must adhere to the buffer zone requirements.

Local governments must fully implement and enforce the law by January 1, 2030.

Should the bill pass the Assembly and Senate by August 31st, Governor Gavin Newsom will have until September 30th to sign or veto the bill.

To read the opposition letter visit https://cbpa.com/AB-98.

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