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Gov. Gavin Newsom signed into law on Sunday an assembly bill that regarding logistics warehouses and truck routes.

Assembly Bill 98 will put a limit to new warehouses being built close to homes, schools, and hospitals in an aim to curb pollution by creating minimum distances between facilities and between the sensitive sites.

Originally, AB 98 would have required warehouses with 250,000 square feet or more could not be located with 900 feet of a “sensitive receptor”, with the finally version shortening that minimum distance to be 300-500 feet from neighbors property lines, depending on the area’s zoning.

Though the law is statewide, the main aim is to address development in Inland Empire.

The California Chamber of Commerce called the governor’s decision to sign AB 98 a “sensible path forward” that will allow businesses to operate and expand while continuing to protect people who live and work near logistics facilities.

“AB 98 is a compromise that avoids the negative economic and environmental impacts that would arise from much more stringent and unworkable legislation while still addressing community concerns,” the CalChamber said ina. Joint statement with The California Retailers Association, The California Restaurant Association, and the California Apartment Association. “While any bill of this magnitude is expected to have future clean up, the bill will help maintain California’s position as a leader in both economic innovation and environmental stewardship.” 

Last week, the Fresno Chamber of Commerce, and other civic and business leaders held a press conference calling for the Gov. Newsom to veto the bill, stating AB 98 would be detrimental to logistic companies trying to expand, and eliminate jobs.

Fresno Chamber President Scott Miller said he and other local business leaders are disappointed with the governor’s signing of AB 98.

“It’s probably worse for the Central Valley than for other areas in California. It’s bad for California,” Miller said. “It’s going to encourage those types of logistics and industrial businesses to locate in neighboring states to service our population.” 

He said local business leaders wish Gov. Newsom had listened to more input from industrial and logistic businesses before signing AB 98, and that it is a bad move for the California economy. 

Miller said it should be left up to local jurisdictions to decide on issues that will affect the local economy and workforce, not the state.