The California Assembly has passed a bill that would create buffer zones and impose other design and build standards around new warehouse development. The measure, passed just before the legislative session ended, awaits Gov. Gavin Newsom’s signature.

CalMatters reported that effective Jan. 1, 2026, Assembly Bill 98 would tighten building standards for new warehouses; ban heavy-duty diesel truck traffic next to sensitive sites including homes, schools, parks and nursing homes; and require local governments to update truck routes to avoid residential streets.

It would also add minimum distance requirements between homes and warehouses, along with buffers featuring walls and landscaping. The bill would additionally require replacement of two new homes for every one that’s demolished to make room for new logistics centers.

Local business groups opposed the measure, with Paul Granillo, president and CEO of the Inland Empire Economic Partnership, telling CalMatters that the bill could push businesses out of state and increase the cost of goods. The California Chamber of Commerce, though, endorsed it, calling AB 98 “a valuable compromise if signed into law.”