A Deep Dive into AB 98’s Restrictions on the Logistics Industry: What the Bill Does and Does Not Do

Sheppard Mullin Richter & Hampton LLP
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Despite strenuous opposition from both the state’s real estate and business communities, near the end of the 2024 Legislative cycle, California Governor Gavin Newsom signed into law Assembly Bill 98 (“AB 98”) – a bill that, among other things, creates buffer zones and imposes other statewide design and build standards around new warehouse development. The bill, which overrides local land use programs, segregates these standards based on warehouse sizes and location within the state. Purportedly, AB 98 is intended to mitigate the negative health impacts associated with warehouse and logistics facility uses have on nearby communities, namely in the Inland Empire region. Prior to the Governor’s signature, the bill passed by fairly narrow margins in both the State Senate and Assembly.

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