The California Assembly has recently approved a bill that aims to regulate the development of new warehouses by creating buffer zones and implementing stricter design and construction standards. This measure, which was passed just before the end of the legislative session, is now awaiting Governor Gavin Newsom’s approval.
According to CalMatters, Assembly Bill 98 will take effect on January 1st, 2026. It includes provisions such as tighter building regulations for new warehouses and a ban on heavy-duty diesel truck traffic near sensitive areas like homes, schools, parks, and nursing homes. Local governments will also be required to update their truck routes in order to avoid residential streets.
In addition to these measures, AB 98 also mandates minimum distance requirements between homes and warehouses. To further mitigate potential impacts on nearby communities from warehouse development projects , buffers featuring walls and landscaping must be implemented as well. Furthermore , for every home that is demolished in order to make room for a new logistics center , two replacement homes must be built.
While some local business groups have expressed opposition towards this bill due its potential negative effects on businesses’ operations costs within the state – with Paul Granillo (president & CEO of Inland Empire Economic Partnership) stating concerns about possible relocation out-of-state – others such as The California Chamber of Commerce have endorsed it . They believe that if signed into law by Governor Newsom , AB 98 could serve as an important compromise solution .
