California Governor Gavin Newsom has officially signed legislation aimed at regulating the construction of new warehouses in proximity to homes, schools, and hospitals. This move is part of a broader effort to mitigate the negative impacts of warehouse operations on local communities.
The newly enacted law mandates that loading docks for new or expanded warehouses maintain a distance of 300 to 500 feet from neighboring properties, depending on the zoning classification of the area. This statewide regulation primarily targets regions like California’s Inland Empire, known for its severe air pollution issues, as well as other rapidly developing areas in Southern California such as Kern County.
Similar measures have been implemented in states like New York and New Jersey, where laws require developers to consider the cumulative environmental impacts of warehouse projects on surrounding neighborhoods. California’s legislation takes a more direct approach by enforcing specific setbacks and stipulating additional requirements, including the installation of electric vehicle charging stations and designated truck routes.
The passage of this law, known as AB 98, followed intense lobbying from both business and environmental groups. While business advocates expressed concerns that the law would hinder economic growth, environmentalists argued that it fell short of necessary protections for affected communities.
The bill emerged from negotiations led by Assembly Speaker Robert Rivas, who sought a compromise between competing interests. Rivas emphasized the need for balance between fostering logistics development—recognized for its potential to create jobs and generate tax revenue—and addressing community concerns about increased truck traffic and air quality degradation.
In addition to establishing setback requirements, the law introduces several other provisions aimed at enhancing environmental sustainability. Warehouses will now be required to implement energy-efficient measures, prepare for electric vehicle usage, and include features such as green buffers and separate truck entrances. Furthermore, developers must replace any housing demolished during construction at a ratio of two new units for every unit removed.
Support for the bill came from various labor unions representing retail and construction workers, including the California State Council of Laborers and United Food and Commercial Workers. Although environmental and business groups participated in discussions, they did not formally endorse the final version of the legislation.
Critics have labeled the new law as “toothless,” arguing that it undermines local efforts to impose stricter regulations on warehouse siting. For instance, Riverside County has established voluntary guidelines recommending that warehouses be located at least 300 feet away from sensitive sites, with binding size limits for facilities within 800 feet. Advocates for stronger regulations have called for a minimum setback of 1,000 feet based on recommendations from a 2005 report by the California Air Resources Board.
Opponents of the bill, including representatives from the League of California Cities and the California State Association of Counties, contend that it could stifle job creation and infringe upon local governance.
As California grapples with balancing economic development and environmental health, this legislation marks a significant step toward addressing community concerns while navigating the complexities of an expanding logistics industry.