On September 29, 2024 Governor Gavin Newsom signed AB 98 into law, establishing various statewide warehouse design and build standards and requiring local governments to institute truck travel routes that minimize impacts on residential communities. AB 98 declares the movement and storage of freight and the impact of this activity on public health and communities is a matter of statewide concern. As such, AB 98 adds Chapter 2.8 Warehouse Design and Build Standards to the Government Code and additional sections to the Health and Safety Code relating to land use.
Under AB 98, “logistics use” means a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, and where heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products. “Logistics use” does not include retail facilities, facilities that are served primarily by rail, or a Strategic Intermodal Facility as defined by AB 98.
All New or Expanded Logistics Use Developments
Starting on January 1, 2026, all new or expanded logistics use development must be sited on, and accessible via, arterial roads, major thoroughfares, or roads the predominantly serve commercially oriented uses. Further, entry gates into the loading truck court must be positioned after a minimum of 50 feet of total available stacking depth inside the property line.
AB 98 does not apply to “logistics use” projects that commenced the local entitlement process prior to September 30, 2024, as long as development activity has commenced within five years of securing entitlement approvals, or to mixed-uses developments that may create sensitive receptors on the site of the new logistics use, provided there are no existing sensitive receptors within 900 feet of a loading bay.
Sites Zoned Industrial With Loading Bay Within 900 Feet of a Sensitive Receptor
Starting on January 1, 2026, AB 98 sets forth additional requirements for developments within 900 feet of a sensitive receptor. A sensitive receptor is one or more of any of the following: a residence; a school; a daycare facility; recreational areas primarily used by children; live-in housing; or hospitals.
- 250,000 square feet or more:
- orient loading bays and entries away from sensitive receptors;
- locate loading bays a minimum of 300 feet from nearest sensitive receptor;
- have a separate entrance for heavy-duty trucks;
- incorporate buffering and screening to mitigate light and noise, and;
- establish a buffer of 50 feet from adjacent sensitive receptors that fully screens from sensitive receptors.
- Less than 250,000 square feet:
- orient loading bays and entries away from sensitive receptors;
- incorporate buffering and screening to mitigate light and noise;
- comply with the most current building energy efficient standards;
- provide conduits at all loading bays service cold storage;
- ensure heating, ventilation and air-conditioning is high efficiency;
- have a separate entrance for heavy-duty trucks;
- establish a buffer of 50 feet from adjacent sensitive receptors that fully screens from sensitive receptors.
Logistic Use Development in the Warehouse Concentration Region
AB 98 designates a “warehouse concentration region,” which includes the Counties of Riverside and San Bernardino and the Cities of Chino, Colton, Fontana, Jurupa Valley, Moreno Valley, Ontario, Perris, Rancho Cucamonga, Redlands, Rialto, Riverside and San Bernardino.
Starting on January 1, 2026, all logistics use development within the Warehouse Concentration Region must:
- orient loading bays and entrances away from sensitive receptors;
- locate loading bays at least 500 feet from the nearest sensitive receptor;
- have a separate entrance for heavy-duty trucks;
- include buffering and screening to mitigate light and noise.
- If within 900 feet of a sensitive receptor, provide a buffer of 100 feet from the adjacent sensitive receptors and fully screen from sensitive receptors.
Design Requirements: 21st Century and Tier 1 21st Century Warehouses
In addition to the above, AB 98 establishes two sets of design requirements for the 21st Century Warehouse and the Tier 1 21st Century Warehouse aka Tier 1 Warehouse. When pursuing any logistics use development, developers and local permitting agencies should verify whether the logistics development is subject to the 21st Century Warehouse or Tier 1 Warehouse design requirements.
General Plan: Circulation Element & Truck Routes
AB 98 requires that general plan circulation elements be updated to identify and establish specific travel routes in order to safely accommodate additional truck traffic and avoid residential areas and sensitive receptors. Routes must maximize the use of interstate or state divided highways and, if not, maximize use of arterial roads, major thoroughfares, and predominantly commercially-oriented local streets.
AB 98 also requires cities and counties to post signage identifying routes, parking, and appropriate idling locations. Cities and counties must also make routes publicly available in GIS format and share maps with warehouse operators, fleet operators, and drivers.
Cities and counties within the Warehouse Concentration Region must make these circulation element revisions by January 1, 2026, while all other jurisdictions must make the revisions by January 1, 2028.
South Coast Air Quality Management District
AB 98 requires the South Coast Air Quality Management District (“SCAQMD”) to deploy mobile air monitoring systems within the Counties of Riverside and San Bernardino to collect air pollution measurements in communities that are near operational logistics use developments. Further, SCAQMD must use this data to conduct an air modeling analysis evaluating the impact of air pollution on sensitive receptors from logistics use development operations and submit its findings to the Legislature on or before January 1, 2033.
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