'Cleanup' Bills For Law Regulating Warehouses In The Works
California State Sen. Eloise Reyes and State Assembly Member Juan Carrillo introduced two bills intended to "clean up" AB 98, a bill signed into law last year that stands to affect the logistics industry statewide and impact where new warehouses can go.
"AB 98 struck a delicate balance and is law here in California," Reyes said in a statement. "Our joint effort this year will be narrowly focused on ensuring that the law can be implemented as intended.”
Industrial real estate owners and developers as well as commercial real estate industry groups haven't seen it entirely the same way. The bill places limitations on where new warehouses can go in relation to certain uses, including schools and residences, and 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.
"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 state lawmakers and staff to address nine pain points with the cleanup legislation, including addressing how regulations on truck routes may create challenges for building new projects and clarifying what enforcement will look like for the bill.
It is unclear how many of the industry's wishes will be fulfilled by the clean-up bills.
Both bills are considered so-called spot bills or placeholder bills, meaning the language in both is not yet finalized and subject to change, according to a release from both Reyes and Carillo. Both legislators said they will host meetings over the coming months about the process.
