Over the opposition of local governments, environmental organizations, and developers, Governor Newsom signed AB 98 on September 29, 2024. The new law imposes development standards for certain logistics developments, requires municipalities to update circulation elements to include truck routes, and, in San Bernardino and Riverside Counties, requires the South Coast Air Quality Management District to collect air pollution data near logistic use developments.
The requirements of AB 98 do not apply to a logistics project, conversion to logistics use, or expansion of a logistics use that is subject to a commenced local entitlement process prior to September 30, 2024. Note that this exemption is waived if no development occurs within five years of entitlement approvals.
The new development standards apply, commencing January 1, 2026, to new logistics developments or expansions of 20% or more of the existing logistics square footage (office space is excluded from both existing and expanded square footage calculation). The development standards are similar for all logistics developments and generally relate to green building standards, site circulation and sensitive receptor buffering. The development standards vary depending on:
- The size of the logistics development (greater or less than 250,000 square feet);
- The location of the logistics development (within 900 feet of a sensitive receptor or within the “warehouse concentration region” of Riverside County, San Bernardino County, Chino, Colton, Fontana, Jurupa Valley, Moreno Valley, Ontario, Perris, Rancho Cucamonga, Redlands, Rialto, Riverside, and San Bernardino)
- Whether the property is zoned for industrial use or requires a rezoning and whether such application was submitted by September 30, 2024.
AB 98 does not apply to a logistics use development that is part of a mixed-use development that may create sensitive receptors on the site of the new logistics use development so long as there are no existing sensitive receptors within 900 feet of the loading bay.
The chart below illustrates the applicability of the development standards to the categories of logistics development followed by the defined terms as used in the new law. The following requirements apply to all new logistics developments (the bill does not expressly apply these to expansions, and some requirements, like siting, cannot logically be applied to expansions):
- Siting – Any new logistics use development shall be sited on arterial roads, collector roads, major thoroughfares, or local roads that predominantly serve commercial uses.
- Loading truck court entry gate locations – Positioned after a minimum of 50 feet of total available stacking depth inside the property line. The stacking depth shall be increased by 70 feet for every 20 loading bays beyond 50 loading bays, to the extent feasible.
- Truck routing plan – The approved plan shall describe the operational characteristics of the use of the facility operator, including, but not limited to, hours of operation, types of items to be stored within the building, and proposed truck routing to and from the facility to designated truck routes that, to the greatest extent possible, avoid passing sensitive receptors. The truck routing plan shall include measures, such as signage and pavement markings, queuing analysis, and enforcement, for preventing truck queuing, circling, stopping, and parking on public streets. The facility operator is responsible for enforcement.
- Signage – 3-minute heavy-duty truck engine idling restriction signs along entrances and truck loading bays. Signs at all heavy-duty truck exit driveways directing truck drivers to the truck route as indicated in the truck routing plan and in the state highway system.
- Housing Replacement: Two-to-one replacement of any demolished housing unit that was occupied within the last 10 years with housing units affordable to families of low or moderate income and provision by developer of 12 months’ rent to any displaced tenant.
| Requirement |
Project Attributes |
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New or expanded logistics use where the loading bay is within 900 feet of sensitive receptor on a site zoned for industrial use or where rezoning submitted by 9/30/24 that was ultimately approved. |
New or expanded logistics use on land that is not zoned industrial, whether developed or undeveloped, or land that needs to be rezoned: Where the loading bay is within 900 feet of a sensitive receptor; or Within a warehouse concentration region |
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250,000 square feet or more (§ 65098.1(a)) |
Less than 250,000 square feet (§ 65098.1(d)) |
250,000 square feet or more (§ 65098.1(b)&(c)) |
Less than 250,000 square feet (§ 65098.1(b)&(c)) |
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21st Century Warehouse Design Elements (see last row) |
Standard and Tier 1 |
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Standard and Tier 1 |
Only Standard |
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Minimum distance from property line of nearest sensitive receptor to nearest truck loading bay opening using a direct straight-line method. New sensitive receptors constructed after 1/1/25 are not considered for existing or projects in process by 9/30/24. |
300 feet |
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500 feet |
500 feet |
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Buffer from the property line of all adjacent sensitive receptors that fully screen the project from the sensitive receptor. |
50 feet |
50 feet |
100 feet |
100 feet |
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Truck loading bay orientation – Opposite side of the development away from sensitive receptors, to the extent feasible. Heavy-duty truck entrance – Separate entrance accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. Truck entry, exit, and internal circulation locations – Away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line. Title 24/California Green Building Standards – Meet or exceed all of the most current building energy efficiency standards specified in the California Energy Code and the California Green Building Standards Code, including, but not limited to, the following requirements related to: (A) Photovoltaic system installation and associated battery storage. (B) Cool roofing. (C) Medium- and heavy-duty vehicle charging readiness. (D) Light-duty electric vehicle charging readiness and installed charging stations. * Conduits at Loading Bays – Provides conduits at loading bays equal to one truck per every loading bay serving cold storage. Prohibit idling or use of auxiliary truck engine power to power climate control equipment if the truck is capable of plugging in at the loading bay. * High Efficiency Heating, Ventilation, and Air-Conditioning. * Separate Entrance – Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. * * These are also included in the 21st Century Warehouse design elements (below). |
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21st Century Warehouse Requirements |
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Standard Requirements Meet or exceed all of the most current building energy efficiency standards in the California Energy Code and the California Green Building Standards Code, including, but not limited to, the following requirements related to:
Skylights in at least 1 percent of the roof area, or equivalent LED efficient lighting. Conduits and electrical hookups at all loading bays serving cold storage. Prohibit idling or use of auxiliary truck engine power to power climate control equipment if the truck is capable of plugging in at the loading bay. High-efficiency heating, ventilation, and air-conditioning. Zero-emission onsite forklifts, pursuant to State Air Resources Board’s Zero-Emission Forklifts regulation, as drafted, by January 1, 2030, to the extent operationally feasible (cost is not a factor in determining operational feasibility), commercially off-the shelf available, and adequate power available on site. If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. Zero-emission onsite equipment utilizing small off-road engines (spark-ignition engines rated at or below 19 kilowatts), to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. If contracted out, the logistics use facility shall preferentially contract for services utilizing zero-emission small off-road engines. |
Tier 1 21st Century Warehouse Requirements For purposes of the photovoltaic system installation, all warehouse square footage is considered conditioned space. Zero-emission onsite forklifts, pursuant to State Air Resources Board’s Zero-Emission Forklifts regulation, as drafted, by January 1, 2028, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. Microgrid-ready switchgear system capable of supporting distributed energy resources. Advanced smart metering ready. Minimum of 50 percent of all passenger vehicle parking spaces preinstalled with conduit and all necessary physical infrastructure to support future charging of electric vehicles. Minimum of 10 percent of all passenger vehicle parking spaces installed with electric vehicle charging stations.
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Definitions
Expansion of an existing logistics use means the expansion by 20 percent or more of the existing square footage. Office space is excluded from the existing square footage and in the square footage for the 20-percent expansion threshold.
Logistics use means a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks (Class 7 or Class 8 trucks) are primarily involved in the movement of the cargo, goods, or products. “Logistics use” does not include any of the following:
- Facilities where food or household goods are sold directly to consumers and are accessible to the public.
- A building primarily served by rail to move cargo goods or product.
- A Strategic Intermodal Facility – a project that satisfies all of the following requirements:
- Logistcs facilities, including warehousing and transloading facilities, served by rail.
- Intermodal freight transport services.
- All facility structures and related rail operations are located within a single site footprint.
Sensitive receptor means one or more of the following:
- A residence, including, but not limited to, a private home, apartment, condominium unit, group home, dormitory unit, or retirement home.
- A school, including, but not limited to, a preschool, prekindergarten, or school maintaining kindergarten or any of grades 1 to 12, inclusive.
- A daycare facility, including, but not limited to, in-home daycare.
- Publicly owned parks, playgrounds, and recreational areas or facilities primarily used by children, unless the development of the park and recreation areas are included as a condition of approval for the development of a logistics use.
- Nursing homes, long-term care facilities, hospices, convalescent facilities, or similar live-in housing.
- Hospitals.
Predominantly serve commercial uses means “local roads where more than 50 percent of the properties fronting the road within 1,000 feet are designed for commercial or industrial use according to the local zoning ordinance.” There is a waiver available for this requirement if certain findings are met.