The Latest on AB 98: New Warehouse Limitation Law

In September, Governor Newsom Signed Assembly Bill 98 (Carrillo; D-Palmdale and Reyes; D-San Bernardino) imposing statewide mandates on warehouse locations and operations. The new law will have significant implications for development in California.

CBPA has actively engaged on this issue, building a coalition and holding more than 10 meetings with over 700 participants. This has allowed us to gather feedback and bring language to consensus among stakeholders. Two weeks ago, a meeting was held to focus on legal analysis. CBPA has produced a thorough legal review and developed a detailed redline highlighting the technical and clarifying amendments necessary to address the concerns raised.

Event Recap: AB 98 Luncheon with Assemblymember Carrillo

We are pleased to share highlights from a productive and engaging dialogue with Assemblymember Juan Carrillo on AB 98, hosted by NAIOP Inland Empire Chapter at the Bear Valley Country Club in Victorville on December 10, 2024.

This special luncheon featured Assemblymember Juan Carrillo, alongside Matthew Hargrove, President and CEO of CBPA, and Jonathan Shardlow, Partner at Allen Matkins. The event brought together industry leaders to discuss critical issues and provide clarity on key clean-up priorities related to AB 98, which directly impacts commercial real estate and warehouse development.

Key Discussion Points:

The panel addressed several significant areas requiring refinement in AB 98, including:

1. Effective Dates: Clarification on the law’s applicability to current and future projects.
2. Redevelopment and Infill: Mitigating impacts on urban and infill redevelopment efforts.
3. Expansion Threshold: Clarifying the 20% threshold for building expansion applicability.
4. Truck Routes: Addressing local government burdens, rural route concerns, and enforcement challenges for warehouse properties.
5. Manufacturing/Ag Exemptions: Advocacy for clear exemptions for manufacturing and agricultural projects.
6. Buffers and Setbacks: Ensuring consistency in buffer, setback, and landscape requirements.
7. Housing Replacement: Clarifying affordable vs. market-rate housing requirements.
8. Enforcement: Reducing unnecessary lawsuits by providing enforcement clarity.
9. Clean-Up and Definitions: Resolving inconsistent terms and dates, and clarifying the statute’s applicability to projects with multiple buildings.

The event concluded with a robust Q&A session, allowing attendees to delve deeper into these priorities and share feedback on how the law impacts their communities and businesses.

A Special Thank You

We extend our gratitude to Assemblymember Juan Carrillo for his leadership and commitment to engaging with the commercial real estate community. We also thank NAIOP Inland Empire Chapter for hosting this invaluable discussion and all attendees for contributing to the dialogue.

CBPA remains dedicated to collaborating with lawmakers and stakeholders to refine AB 98 to preserve jobs and support economic stability while ensuring the bill's original intent is upheld. For more information or to join our efforts, please contact Skyler Wonnacott at (916) 960-3951 or swonnacott@cbpa.com.

In The News: Five Reasons Why Industrial Real Estate Strengthens Communities