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Newsom Signs Bill That Could Hinder Warehouse Growth in California

Newsom Signs Bill That Could Hinder Warehouse Growth in California

By John Kingston

According to an article by FreightWaves, California Governor Gavin Newsom has signed into law a bill that is seen as slowing the construction of warehouses in California and setting up a new layer of approval for truck routing.

Newsom signed AB98 over the weekend – it was in a news release about numerous bills he signed – but did not explain his reasons. A spokesman for Newsom told FreightWaves in an email that his signature “speaks for itself.”

At the core of the legislation are three key regulations. First, there will be a new set of rules limiting the siting of warehouses. Second, city and county governments will be mandated to put together what the law calls a “truck routing plan” for the vehicles servicing the warehouse. The routes will be enforced by the warehouse owner. Third, there is a significantly expanded role for the state government in decisions that had until now been in the hands of local officials.

Existing warehouses are not impacted as long as they stay their current size. Expansions, however, would trigger regulations and see certain grandfather clauses disappear.

The growth in a state role into areas that had been the responsibility of local governments is why the League of California Cities is one of the leading opponents of AB98.

“We are disappointed that the Governor still signed this flawed legislation after hearing the concerns of more than 700 city officials, business leaders, and environmental justice groups,” Carolyn Coleman, League of California Cities executive director and CEO, said in a prepared statement. “It was jammed through the Legislature at the 11th hour after weeks of closed-door negotiations that shut out local governments and other stakeholders from the policymaking process. Cities deserved a voice in this process. Cal Cities will be advocating for a more transparent and inclusive process next session that addresses our concerns.”

For more on this issue, read the full article here.

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