On September 29, 2024, Governor Gavin Newsom signed Assembly Bill 98 into law, which imposes new design and build standards for new or expanded logistics uses across the state.
In general, AB 98 would impose standards relating to warehouse design and location, parking, truck loading bays, landscaping buffers, entry gates, and signage. The type of requirements that would apply to a project will depend on the presence of sensitive receptors, the size of the project, and the existing zoning on the land. If signed, AB 98 will have a substantial impact on how warehousing is built and sited across the state.
Projects Subject to AB 98
AB 98 will broadly apply to all new development or expansions (20% or more) of logistics uses, unless an exception applies. A “logistics use” is defined as “a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products.” The following facilities are explicitly exempted from the definition of logistics use: (1) facilities that sell food or household goods directly to consumers and that are open to the public; (2) facilities that are served primarily by rail; and (3) strategic intermodal facilities as defined by the statute.
Projects that meet the definition of “logistics use” will nonetheless be exempted from AB 98’s requirement in the following situations:
- Projects that were approved by a local agency prior to AB 98’s effective date;
- Projects subject to a commenced local entitlement process prior to September 30, 2024;
- Mixed-uses developments that may create sensitive receptors on the site of the new logistics use provided there are not existing sensitive receptors within 900 feet of a loading bay.
Requirements Applicable to All New or Expanded Logistics Uses
While many of AB 98’s requirements are triggered by presence of a sensitive receptor within 900 feet of a project or the need for a rezone, the following requirements will apply to all new or expanded logistics uses:
- Where a logistics use development contemplates demolishing any housing unit that was occupied within the previous 10 years, the jurisdiction is required to impose a 2-to-1 replacement requirement as a condition of approval. The developer will also be required to pay any evicted tenants the equivalent of 12 months’ rent at their current rate.
- Entry gates to the loading truck court must be positioned to allow a minimum of 50 feet of available stacking depth inside the property line. The stacking depth would increase by 70 feet for every 20 loading bays and beyond 50 loading bays, to the extent feasible.
- New logistic uses may only be located on roads designated as arterial roads, collector roads, major thoroughfare, or local roads that predominantly serve commercial uses. However, local jurisdictions are required to issue a waiver if there are no feasible alternative sites and certain additional criteria are met.
- Anti-idling signs must be installed at truck loading sites, the entrance to the development, and at all heavy-duty truck exit driveways directing drivers to the proper truck route.
- Facility operators must prepare and submit a truck routing plan to and from the state highway system based on the jurisdiction’s latest truck map before receiving a certificate of occupancy. The plan must include information about the facility’s operations as well as enumerated measures to prevent trucks from queuing, circling, stopping, and parking on public streets.
Requirements For a New or Expanded Logistics Uses Within 900 Feet of a Sensitive Receptor
Sensitive receptors include (1) residences, (2) preschool through high schools, (3) daycares, (4) publicly owned parks, playgrounds, and recreational areas or facilities primarily use by children, unless built as a condition of approval for the development of a logistics use; (5) nursing homes and related facilities; and (6) hospitals. AB 98 prescribes different standards depending on the size of the proposed project and the project’s current zoning. The following standards will apply to projects where a sensitive receptor is located within 900 feet of a loading bay:
Developments of 250,000 square feet or more, must comply with Tier 1 21st Century Warehouse[i] design elements, orient loading bays on the opposite side of the building from sensitive receptors, have a separate entrance for heavy-duty trucks, and locate the truck entrances/exits and internal circulation away from sensitive receptors. If the project is currently zoned industrial, all truck loading bays must be setback 300 feet from any property line abutting a sensitive receptor and must also include at least 50 feet of landscaping buffering adjacent to sensitive receptors. If the project is not zoned industrial or requires a rezone, loading bays must be setback at least 500 feet and must include at least 100 feet of landscape buffering to screen sensitive receptors.
Developments of less than 250,000 square feet on a site zoned industrial must comply with the most current building energy efficiency standards, provide conduits at every loading bay serving cold storage, prohibit the use of auxiliary truck engine power to power refrigeration, use high-efficiency HVAC systems, orient loading bays on the opposite side of the building from sensitive receptors, have a separate entrance for heavy-duty trucks, locate the truck entrances/exits and internal circulation away from sensitive receptors, and use at least 50 feet of landscape buffering along sensitive receptors. Notably, developments of less than 250,000 square feet in industrial zones do not have a minimum setback requirement for truck loading bays.
Developments of less than 250,000 square feet on a site that is not zoned industrial, or would otherwise require rezoning, must comply with 21st Century Warehouse design elements, orient loading bays on the opposite side of the building from sensitive receptors, have a separate entrance for heavy-duty trucks, locate the truck entrances/exits and internal circulation away from sensitive receptors, use at least 100 feet of landscape buffering along sensitive receptors, and all truck loading bays must be setback 500 feet from any property line abutting a sensitive receptor.
Additional Requirements for Projects in the Inland Empire
AB 98 imposes requirements for developments on sites that are not zoned industrial or would require rezoning that are located in the “warehouse concentration region” regardless of the presence of a sensitive receptor. The warehouse concentration region includes Riverside and San Bernardino Counties and the Cities of Chino, Colton, Fontana, Jurupa Valley, Moreno Valley, Ontario, Perris, Rancho Cucamonga, Redlands, Rialto, Riverside, and San Bernardino.
All new or expanded logistics uses located in the warehouse concentration region on property that would require rezoning must orient loading bays on the opposite side of the building from sensitive receptors, have a separate entrance for heavy-duty trucks, locate the truck entrances/exits and internal circulation away from sensitive receptors, use at least 100 feet of landscape buffering along sensitive receptors, and all truck loading bays must be setback 500 feet from any property line abutting a sensitive receptor. Further, developments of more than 250,000 feet must comply with Tier 1 21st Century Warehouse standards and developments of less than 250,000 must comply with 21st Century Warehouse standards.
Agency Requirements
While AB 98 prohibits local agencies from approving a project that does not comply with the standards above, the bill also imposes affirmative requirements on local agencies and the South Coast Air Quality Management District (“SCAQMD”). First, AB 98 would require cities and counties to update the circulation element components of their general plans to establish designated truck routes that avoid residential areas and sensitive receptors. Jurisdictions within the warehouse concentration region will have until January 1, 2026 to make these amendments, while all other jurisdictions must complete these revisions by January 1, 2028.
Second, AB 98 would require SCAQMD to deploy mobile air monitoring systems in Riverside and San Bernardino Counties to study air pollution in communities with operational logistics uses. SCAQMD will use this information to analyze the impact logistics uses have on sensitive receptors and report back to the Legislature before 2033.
* * *
Should you have any questions regarding the potential impacts of AB 98, please contact Alan Fenstermacher or Scott Cooper.
This e-Alert is published periodically by Rutan & Tucker, LLP and should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only.
[i] Tier 1 21st century warehouse and 21st century warehouse requirements are listed in the text of AB 98 and may be found at https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB98.
