California’s AB 98 Sets Distance Rules for New Warehouses

Bill Mandates 300-Foot Setbacks for Pollution, Noise
California warehouses
An aerial view of warehouses in Redlands, California, from November 2021. (Roger Kisby/Bloomberg News)

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New large warehouses would have to be several hundred feet or more from homes, schools and other sensitive land uses if a late-hour bill approved by California’s Legislature becomes law.

AB 98 passed the Assembly 47-16 and the state Senate 22-16 on Aug. 31, hours before the legislative deadline. Gov. Gavin Newsom has until Sept. 30 to sign the bill, which would take effect Jan. 1 if approved.

Sponsored by Assemblymembers Eloise Gómez Reyes, D-Colton, and Juan Carrillo, D-Palmdale, AB 98 addresses long-standing complaints about air pollution, truck traffic, noise and other issues associated with large warehouses located near residential areas.



Critics argue that cities and counties approve warehouses without adequate public health safeguards. State officials say warehouses disproportionately affect communities of color and low-income neighborhoods.

AB 98 would require new warehouses to be built on roads primarily used for commercial traffic, with some exceptions. It would also mandate 300-foot setbacks between sensitive areas and loading bays for warehouses in industrial zones, and 500-foot setbacks in non-industrial or rezoned areas.

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The bill also would impose landscaping and screening requirements, such as a wall or landscape berm, to shield warehouses from their neighbors, with landscaping buffers ranging from 50 to 100 feet.

Depending on their size, new warehouses would have to use zero-emission technology, meet energy efficiency standards and prohibit truck idling.

AB 98 faced strong opposition from business groups concerned about job losses in the logistics industry, a major Inland Empire employer. Environmental justice advocates also criticized the bill, arguing it didn’t go far enough.

“The bill sets dangerously low standards for warehouse siting and operations that would fail to protect the people who will be the unenviable neighbors of new and expanding facilities,” read a letter to California elected leaders signed by a coalition of environmental groups.

“We know that if given a chance next year, we can work together to create a comprehensive policy that will promote the long-term economic and environmental sustainability of communities throughout the state.”

In a news release, Reyes acknowledged the distance buffers in AB 98 were insufficient to fully protect vulnerable communities. However, she stated, “It is also clear that the status quo is unacceptable and immediate action is needed on this issue. I believe AB 98 is an important step forward and contains many provisions that will better protect communities in the Inland Empire and across California.”

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