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SACRAMENTO (CA) - CBPA members are very disappointed that AB 98 was signed into law by the Governor. 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.
“Due to the closed-door nature of how the bill was written and lack of input from impacted businesses and local government, it falls short in several critical ways, including major policy flaws and just simple drafting errors that could have been avoided. Rather than offering practical solutions AB 98 imposes statewide mandates that undermine local control, stifles economic growth, negatively impacts the supply chain, and will push more warehouses further away from ports and population centers, increasing greenhouse gas emissions and costs to consumers. The measure also opens a private right of action because those who drafted the bill neglected to clarify who will enforce the complicated provisions of the measure,” stated Matthew Hargrove, CBPA President and CEO.
CBPA and its members will be advocating for an open and transparent process to address these serious concerns next session.
Assembly Bill 98 (Carrillo; D-Palmdale and Reyes; D-San Bernardino) 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.
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Established in 1972, CBPA proudly serves as the legislative and regulatory advocate for property owners, tenants, developers, retailers, contractors, land use attorneys, brokers, and other professionals in the commercial real estate industry representing their legislative and regulatory interests in California’s Capital and in Washington, D.C.
CBPA is the largest commercial real estate consortium with over 10,000 industry members and is the designated legislative advocate for ICSC, the California Chapters of the Commercial Real Estate Development Association (NAIOP Cal), the Building Owners and Managers Association of California (BOMA Cal), the Retail Industry Leaders Association (RILA), and the Association of Commercial Real Estate – Northern and Southern California (ACRE), and AIR CRE.
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