Governor Newsom signed Assembly Bill 98 (Carrillo; D-Palmdale and Reyes; D-San Bernardino) into law, which puts severe limitations on warehouse development. AB 98 was a gut-and-amend bill introduced at the extreme last minute, with no consensus or consultation with impacted companies or local government, and our members have expressed great concern about its impacts on individual projects, jobs, and the supply chain as a whole.

Assembly Bill 98 imposes statewide mandates on warehouse locations and operations, overriding local control. It requires buffer zones, truck route restrictions, and zero-emission vehicle standards, severely limiting land for logistics use and likely driving more businesses out of California. This could lead to significant job losses, hinder economic growth, and worsen environmental outcomes due to increased transportation needs. The bill's rigid requirements and lack of flexibility, such as no sunset clause and burdensome affordable housing provisions, will stifle industrial development and harm local economies.