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California Governor Signs Warehouse Bill Amid Industry Backlash

California Governor Newsom Signs Warehouse Regulation Bill Amid Developer Opposition

C
alifornia Governor Gavin Newsom has signed Assembly Bill 98, which regulates the construction of warehouses in response to a surge in development in the Inland Empire. The bill sets requirements for warehouse locations, including setbacks from homes and schools, and imposes landscaping and screening measures to shield neighbors from noise and pollution.

    Commercial real estate groups have vowed to fight back with opposing legislation, citing concerns that the bill will stifle job growth and harm local economies. Environmental justice groups, on the other hand, argue that the bill doesn't go far enough to protect vulnerable communities.

    The bill requires new warehouses to be built on arterial roads, meet energy efficiency standards, and use zero-emission technology. It also mandates two replacement units of affordable housing for every home demolished to make way for a warehouse, as well as money equal to 12 months' rent paid to displaced tenants.

    However, critics argue that the bill will have unintended consequences, such as pushing warehouses further away from ports and population centers, increasing greenhouse gas emissions and costs to consumers. Business groups are calling for an overhaul of the bill, citing concerns about job growth and economic impact.

California Governor signs warehouse bill amidst industry opposition in Sacramento.