Last year’s problematic warehouse bill is back. Here’s how Cal Cities is advocating to make it better

Warehouse standards clean-up bills set for April 30 hearings

By Melissa Sparks-Kranz, legislative advocate

This year, legislators introduced two spot bills to address a controversial warehouse standards law from last session. The bills are set to be heard in local government committee hearings on April 30, where lawmakers will need to introduce substantive amendments before the bills are heard. Cal Cities has urged authors of the clean-up bills, AB 735 (Carrillo) and SB 415 (Reyes), to adopt several changes.

Lawmakers fast-tracked AB 98 (Carrillo, Juan and Reyes) last year after months of closed-door meetings that excluded cities and other stakeholders. They introduced the measure mere days before the final bill deadline by gutting and amending an existing bill. To get it through, lawmakers promised to clean up the hastily crafted measure this year.

Signed into law by Gov. Gavin Newsom, AB 98 creates restrictions on new or expanding warehouses and imposes a sweeping, costly statewide mandate by requiring all cities to update their circulation elements to account for these changes — including truck movement.

What changes does Cal Cities want?

Cal Cities and its county counterpart are fully invested in ensuring any clean-up legislation addresses the practical challenges created by AB 98. “Cities deserved a voice in this process,” said Cal Executive Director and CEO Carolyn Coleman last year. “Cal Cities will be advocating for a more transparent and inclusive process next session that addresses our concerns.” 

The two groups proposed several changes that would help cities and counties realistically meet the new requirements. Several of these revisions would create flexibility, including allowing local governments to develop a local plan or ordinance rather than updating their circulation element.

Cal Cities is also urging lawmakers to remove the circulation element requirement if a local government does not have any proposed new or expanded logistic use development. Should that change, the jurisdiction would need to update its circulation element.  

The initial bill also imposed a fast timeline, with some warehouse-heavy regions needing to update their circulation elements as early as 2026 — or risk fines every six months. Cal Cities is pushing for a good-faith-effort enforcement provision. If local governments are making progress in their mandated circulation element update, they should not be fined.

Lastly, Cal Cities is asking lawmakers to revisit the bill’s definition of local roads, which it arbitrarily defines as serving 50% commercial traffic. This definition could unintentionally prevent industrial development in rural areas that are in fact away from sensitive receptors.

What makes AB 98 so problematic?

AB 98 is a sweeping bill that is so broad it would impact every city. The bill sets limits on new or expanded warehouses on existing and rezoned industrial sites within 900 feet of sensitive receptors unless specific standards are met. Cities must also update their circulation elements to account for related truck routes, signage, parking, and idling. Cities that fail to do so could face $50,000 fines every six months from the Attorney General — no questions asked.

All cities must update their circulation elements to account for truck routes within the next one to two years, even if they don’t approve logistic use projects in their community. Furthermore, trucks can only travel on highways that predominately serve commercial uses — something not all communities can accommodate.

To complicate matters, existing law already requires local governments to update their circulation elements with proactive measures for bicyclists and pedestrians in that same timeframe. This increases the likelihood that cities will be fined because they must now complete two circulation element updates within strict timelines.

What else do cities need to know?

Cal Cities held a webinar last fall to help ensure cities do not receive punitive fines. With lawmakers expected to hold hearings on both AB 735 and SB 415 on April 30, expect more updates from Cal Cities on the clean-up conversation. Please contact your regional public affairs managers with questions, including how to make your voice heard.