Grand Terrace City Council
February 10, 2026

from the date the local agency receives the completed application, return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the applicant can remedy the application.
(d)  A local agency may disapprove a housing development project that meets the requirements of this section if it makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. (e)  A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
(f)  This section shall become operative on July 1, 2024. (g)  The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2025.

SEC. 3. Section 66499.41 of the Government Code is amended to read:
66499.41. (a)  A local agency shall ministerially consider, without discretionary review or a hearing, a parcel map or a tentative and final map for a housing development project that meets all of the following requirements:
(1)  The proposed subdivision will result in 10 or fewer parcels and the housing development project on the lot proposed to be subdivided will contain 10 or fewer residential units, except as provided in subdivision (g). (2)  The lot proposed to be subdivided meets all of the following sets of requirements:
(A)  The lot is one of the following:
(i)  Zoned to allow multifamily residential dwelling use. (ii)  Vacant and zoned for single-family residential development. For purposes of this paragraph, “vacant” means having no permanent structure, unless the permanent structure is abandoned and uninhabitable. All of the following types of housing shall not be defined as “vacant”:
(I)  Housing that is subject to a recorded covenant, ordinance, or law that restricts rent or sales price to levels affordable to persons and families of low, very low, or extremely low income.
(II)  Housing that is subject to any form of rent or sales price control through a local public entity’s valid exercise of its police power. (III)  Housing occupied by tenants within the five years preceding the date of the application, including housing that has been demolished or that tenants have vacated prior to the submission of the application for a development permit.
(B)  (i)  A lot zoned to allow multifamily residential dwelling use is no larger than five acres and is substantially surrounded by qualified urban uses.
90 — 5 — Ch. 294

(ii)  A vacant lot zoned for single-family residential development is no larger than one and one-half acres and is substantially surrounded by qualified urban uses.
(iii)  For purposes of this subparagraph, the following definitions apply:
(I)  “Qualified urban use” has the same meaning as defined in Section 21072 of the Public Resources Code.
(II)  “Substantially surrounded” has the same meaning as defined in paragraph (2) of subdivision (a) of Section 21159.25 of the Public Resources Code.
(C)  The lot is a legal parcel located within one of the following:
(i)  An incorporated city, the boundaries of which include some portion of an urbanized area.
(ii)  An urbanized area or urban cluster in a county with a population greater than 600,000 based on the most recent United States Census Bureau data.
(iii)  For purposes of this subparagraph, the following definitions apply:
(I)  “Urbanized area” means an urbanized area designated by the United States Census Bureau, as published in the Federal Register, Volume 77, Number 59, on March 27, 2012.
(II)  “Urban cluster” means an urbanized area designated by the United States Census Bureau, as published in the Federal Register, Volume 77, Number 59, on March 27, 2012.
(D)  The lot was not established pursuant to this section or Section 66411.7.
(3)  (A)  Except as specified in subparagraphs (B) and (C), the newly created parcels are no smaller than 600 square feet.
(B)  If the parcels are zoned for single-family residential use, the newly created parcels are no smaller than 1,200 square feet.
(C)  A local agency may, by ordinance, adopt a smaller minimum parcel size subject to ministerial approval under this subdivision. (4)  The housing units on the lot proposed to be subdivided are one of the following:
(A)  Constructed on fee simple ownership lots.
(B)  Part of a common interest development.
(C)  Part of a housing cooperative, as defined in Section 817 of the Civil Code.
(D)  Constructed on land owned by a community land trust. For the purpose of this subparagraph, “community land trust” means a nonprofit corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that satisfies all of the following:
(i)  Has as its primary purposes the creation and maintenance of permanently affordable single-family or multifamily residences. (ii)  All dwellings and units located on the land owned by the nonprofit corporation are sold to qualified owners to be occupied as the qualified owner’s primary residence or rented to persons and families of low or moderate income. For the purpose of this subparagraph, “qualified owner” means a person or family of low or moderate income, including a person 90 Ch. 294 — 6 —

or family of low or moderate income who owns a dwelling or unit collectively as a member occupant or resident shareholder of a limited-equity housing cooperative.
(iii)  The land owned by the nonprofit corporation, on which a dwelling or unit sold to a qualified owner is situated, is leased by the nonprofit corporation to the qualified owner for the convenient occupation and use of that dwelling or unit for a renewable term of 99 years. (E)  Part of a tenancy in common, as described in Section 685 of the Civil Code.
(5)  The proposed development will, pursuant to the requirements of this division, meet one of the following, as applicable:
(A)  If the parcel is identified in the jurisdiction’s housing element for the current planning period that is in substantial compliance with Article

10.6 (commencing with Section 65580) of Chapter 3 of Division 1, the development will result in at least as many units as projected for that parcel in the housing element. If the parcel is identified to accommodate any portion of the jurisdiction’s share of the regional housing need for low- or very low income households, the development will result in at least as many low- or very low income units as projected in the housing element. These units shall be subject to a recorded affordability restriction of at least 45 years. (B)  (i)  If the parcel is not identified in the jurisdiction’s housing element for the current planning period that is in substantial compliance with Article

10.6 (commencing with Section 65580) of Chapter 3 of Division 1, the development will result in at least 66 percent of the maximum allowable residential density as specified by local zoning or 66 percent of the applicable residential density specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is greater. (ii)  Where local zoning does not specify a maximum allowable residential density, the development will result in at least 66 percent of the applicable residential density as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2.
(6)  The average total area of floorspace for the proposed housing units on the lot proposed to be subdivided does not exceed 1,750 net habitable square feet. For purposes of this paragraph, “net habitable square feet” means the finished and heated floor area fully enclosed by the inside surface of walls, windows, doors, and partitions, and having a headroom of at least six and one-half feet, including working, living, eating, cooking, sleeping, stair, hall, service, and storage areas, but excluding garages, carports, parking spaces, cellars, half-stories, and unfinished attics and basements. (7)  The housing development project on the lot proposed to be subdivided complies with any local inclusionary housing ordinances adopted by the local agency.
(8)  The development of a housing development project on the lot proposed to be subdivided does not require the demolition or alteration of any of the following types of housing:
90 — 7 — Ch. 294

(A)  Housing that is subject to a recorded covenant, ordinance, or law that restricts rent to levels affordable to persons and families of low, very low, or extremely low income.
(B)  Housing that is subject to any form of rent or price control through a local public entity’s valid exercise of its police power. (C)  Housing occupied by tenants within the five years preceding the date of the application, including housing that has been demolished or that tenants have vacated prior to the submission of the application for a development permit.
(D)  A parcel on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application.
(9)  The lot proposed to be subdivided is not located on a site that is any of the following:
(A)  Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure that was approved by the voters of that jurisdiction.
(B)  Wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).
(C)  Within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code.
(D)  A hazardous waste site that is listed pursuant to Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to former Section 25356 of the Health and Safety Code, unless either of the following applies:
(i)  The site is an underground storage tank site that received a uniform closure letter issued pursuant to subdivision (g) of Section 25296.10 of the Health and Safety Code based on closure criteria established by the State Water Resources Control Board for residential use or residential mixed uses.

This section does not alter or change the conditions to remove a site from the list of hazardous waste sites listed pursuant to Section 65962.5. (ii)  The State Department of Public Health, State Water Resources Control Board, Department of Toxic Substances Control, or a local agency making a determination pursuant to subdivision (c) of Section 25296.10 of the Health and Safety Code, has otherwise determined that the site is suitable for residential use or residential mixed uses.
(E)  Within a delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the 90 Ch. 294 — 8 —

development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code), and by any local building department under Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2.
(F)  Within a special flood hazard area subject to inundation by the 1-percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency. If a development proponent is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this paragraph and is otherwise eligible for streamlined approval under this section, a local government shall not deny the application on the basis that the development proponent did not comply with any additional permit requirement, standard, or action adopted by that local government that is applicable to that site. A development may be located on a site described in this subparagraph if either of the following is met:
(i)  The site has been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency and issued to the local jurisdiction. (ii)  The site meets Federal Emergency Management Agency requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program pursuant to Part 59 (commencing with Section

59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations. (G)  Within a regulatory floodway as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency, unless the development has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations. If a development proponent is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this subparagraph and is otherwise eligible for streamlined approval under this section, a local government shall not deny the application on the basis that the development proponent did not comply with any additional permit requirement, standard, or action adopted by that local government that is applicable to that site.
(H)  Land identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or another adopted natural resource protection plan.
(I)  Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter

1.5 (commencing with Section 2050) of Division 3 of the Fish and Game 90 — 9 — Ch. 294

Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code). (J)  Land under conservation easement.
(10)  The proposed subdivision conforms to all applicable objective requirements of the Subdivision Map Act (Division 2 (commencing with Section 66410)), except as otherwise expressly provided in this section. (11)  The proposed subdivision complies with all applicable standards established pursuant to Section 65852.28.
(12)  Any parcels proposed to be created pursuant to this section will be served by a public water system and a municipal sewer system. (13)  The proposed subdivision will not result in any existing dwelling unit being alienable separate from the title to any other existing dwelling unit on the lot.
(b)  A housing development project on a proposed site to be subdivided pursuant to this section is not required to comply with either of the following requirements:
(1)  A minimum requirement on the size, width, depth, frontage, or dimensions of an individual parcel created by the development beyond the minimum parcel size specified in, or established pursuant to, paragraph (3) of subdivision (a).
(2)  (A)  The formation of a homeowners’ association, except as required by the Davis-Stirling Common Interest Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code). (B)  Subparagraph (A) shall not be construed to prohibit a local agency from requiring a mechanism for the maintenance of common space within the subdivision, including, but not limited to, a road maintenance agreement. (c)  A local agency shall approve or deny an application for a parcel map or a tentative map for a housing development project submitted to a local agency pursuant to this section within 60 days from the date the local agency receives a completed application. If the local agency does not approve or deny a completed application within 60 days, the application shall be deemed approved. If the local agency denies the application, the local agency shall, within 60 days from the date the local agency receives the completed application, return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the applicant can remedy the application.
(d)  Any housing development project constructed on the lot proposed to be subdivided pursuant to this section shall comply with all applicable objective zoning standards, objective subdivision standards, and objective design standards as established by the local agency that are not inconsistent with this section and paragraph (2) of subdivision (a) of Section 65852.28. (e)  A local agency may condition the approval and recordation of a subdivision map upon the completion of a residential structure in compliance with all applicable provisions of the California Building Standards Code that contains at least one dwelling unit on each resulting parcel that does not already contain an existing legally permitted residential structure or is reserved for internal circulation, open space, or common area. 90 Ch. 294 — 10 —

(f)  A local agency may deny the issuance of a parcel map, a tentative map, or a final map if it makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.
(g)  Notwithstanding Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 of Division 1, a local agency is not required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels created through the exercise of the authority contained within this section. If a local agency chooses to permit accessory dwelling units or junior accessory dwelling units, the units shall not count as residential units for the purposes of paragraph (1) of subdivision (a).
(h)  (1)  Notwithstanding Section 66411.7, a local agency is not required to permit an urban lot split on a parcel created through the exercise of the authority contained within this section.
(2)  Notwithstanding Sections 65852.21 and 66411.7, those sections shall not apply to a site that meet both of the following requirements:
(A)  The site is located within a single-family residential horsekeeping zone designated in a master plan, adopted before January 1, 1994, that regulates land zoned single-family horsekeeping, commercial, commercial-recreational, and existing industrial within the plan area. (B)  The applicable local government has an adopted housing element that is compliant with applicable law.
(i)  A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
(j)  Paragraph (2) of subdivision (h) shall become operative on January 1, 2024. Subdivisions (a) to (g), inclusive, paragraph (1) of subdivision (h), and subdivision (i) shall become operative on July 1, 2024. (k)  The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2025.

SEC. 4. The Legislature finds and declares that the state faces a severe housing shortage, largely due to the lack of available housing affordable to lower and moderate-income families. By expanding opportunities for ownership of more affordable housing types on smaller, less expensive parcels, this act ensures access to affordable housing and addresses a matter of statewide concern, rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 2 and 3 of this act amending Sections 65852.28 and 66499.41 of the Government Code apply to all cities, including charter cities.

SEC. 5. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and 90 — 11 — Ch. 294

school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

O
90 Ch. 294 — 12 —

AGENDA REPORT
MEETING DATE: February 10, 2026
TITLE: Zoning Code Amendment (ZCA) 25-04 – Logistics Use Standards (AB 98 / SB 415)
PRESENTED BY: Gabriel Arguelles, Assistant Planner
RECOMMENDATION: FIRST READING AND INTRODUCTION OF AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA,
APPROVING ZONING CODE AMENDMENT (ZCA) 25-04, AMENDING
TITLE 18 (ZONING) TO IMPLEMENT ASSEMBLY BILL 98 (2024), AS CLARIFIED BY SENATE BILL 415 (2024), INCLUDING ADDING
DEFINITIONS, ESTABLISHING A “LOGISTICS USE” CATEGORY, AND ADDING A NEW CHAPTER 18.75 (LOGISTICAL USE STANDARDS); AND

FINDING THAT THE ORDINANCE IS NOT A PROJECT UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO GOVERNMENT CODE SECTIONS 65852.28(e), 65913.4.5(b), AND 66499.41(i).
2030 VISION STATEMENT:

This staff report supports City Council Goal #5, “Engage in Proactive Communication” by updating the City’s Municipal Code to provide current information regarding City policies.

BACKGROUND:

City staff is recommending approval of Zoning Code Amendment (ZCA) 25-04 to bring the City’s zoning regulations into compliance with Assembly Bill 98 (2024), known as the Planning, Logistics, and Neighborhood Standards Act, as clarified by Senate Bill 415 (2024). Together, these State laws establish new statewide development standards for logistics uses, including requirements related to site design, building orientation, landscaping, truck circulation, loading bay placement, screening, sustainability measures, and minimum separation from sensitive receptors.

To implement these State mandates, staff has prepared amendments to Title 18 of the Grand Terrace Municipal Code that establish clear and objective development standards applicable to logistics facilities. The proposed amendments ensure consistency with State law, improve internal consistency within the Zoning Code, and provide clearer expectations for applicants, staff, decision-makers, and the public when reviewing logistics-related development projects.

The Ordinance approving Zoning Code Amendment (ZCA) 25-04 is included as Attachment 1.

Supporting reference materials are provided as exhibits to Attachment 1, including Assembly Bill No. 98 (EXHIBIT A), Assembly Bill No. 415 (EXHIBIT B), AB 98 Implementation Guidance for Local Agencies (EXHIBIT C), and the SB 415 Compliance Update (EXHIBIT D).

In 2024, the California State Legislature adopted Assembly Bill 98 (AB 98), known as the Planning, Logistics, and Neighborhood Standards Act. AB 98 was enacted in response to increasing statewide

and local concerns regarding the impacts of warehouse and logistics development, particularly when these facilities are located near homes, schools, parks, and other sensitive land uses. The legislation establishes uniform statewide standards governing the design and operation of logistics facilities, including requirements for building placement, buffering, landscaping, truck circulation, loading areas, and overall site layout.

Later in 2024, the Legislature adopted Senate Bill 415 (SB 415), which refined and clarified several provisions of AB 98. SB 415 provides additional guidance on how the standards are to be applied and helps ensure consistent implementation across jurisdictions as cities update their zoning regulations to reflect the new statutory framework.

State law anticipates that local jurisdictions will incorporate these requirements into their zoning codes through locally adopted standards. Accordingly, the City must update its Municipal Code to align with AB 98 and SB 415. Taking action at this time ensures the City’s zoning regulations remain current with State law and clearly articulate the standards that apply to logistics uses.

Zoning Code Amendment (ZCA) 25-04 implements these State-mandated requirements by amending Title 18 of the Municipal Code to establish a new chapter dedicated to logistical use standards and by making related updates to definitions and nonresidential use regulations. Collectively, these changes provide a clear and structured framework for reviewing logistics facilities while maintaining protections for nearby residents and other sensitive receptors.

DISCUSSION:

The proposed ordinance updates the City’s zoning regulations to comply with Assembly Bill 98 (2024) and Senate Bill 415 (2024). These laws establish statewide, objective development standards for logistics facilities, particularly those located near sensitive receptors such as homes, schools, childcare centers, parks, and medical facilities.

To meet these requirements, the ordinance creates a new chapter dedicated entirely to logistics facilities and updates existing sections of the Municipal Code. Consolidating the standards into one chapter ensures that applicants, staff, and the public can easily understand the rules that apply to logistics projects and how those projects must be designed to protect surrounding neighborhoods.

The ordinance also updates key definitions needed to implement AB 98 and SB 415. A new definition for “Logistics Use” is added, covering facilities where goods are stored or moved using heavy-duty trucks, while clearly excluding retail-serving buildings, rail-served facilities, and strategic intermodal facilities. In addition, the ordinance includes a State-aligned definition of “Sensitive Receptor,” identifying the specific types of nearby uses that trigger enhanced buffering and protection requirements.

As part of these updates, the nonresidential use table has been reorganized so that logistics uses are identified as their own distinct category, separate from storage, wholesale, and other industrial uses.

This clarification ensures consistency across the Code and makes it clear which projects are subject to the new logistics standards.

Together, these amendments bring the Municipal Code into alignment with State law, establish consistent terminology, and ensure that logistics projects in the City are designed, reviewed, and regulated using clear and objective standards that protect nearby residents and other sensitive uses.

Section 18.27.010 (Nonresidential Use Regulations)

This section updates the City’s nonresidential use table to clearly separate “Logistics Use” from other industrial categories. Under the current table, logistics, storage, and wholesale uses are grouped together, which makes it difficult to identify which projects are subject to the new State-required standards.

The revised table reorganizes these categories so that Logistics Use, Storage Use, and Wholesale Use each appear as distinct land uses. This clarification does not change where these uses are permitted, it simply separates them so applicants and staff can easily determine which standards apply.

A new footnote is also added to make clear that all logistics uses must comply with AB 98, including the new logistical development standards related to building orientation, truck circulation, loading bay placement, screening, landscaping, and vehicle routing.

These updates improve clarity and consistency in the Municipal Code while ensuring that logistics uses are regulated in accordance with State law.

New Chapter 18.75 - Logistical Use Standards
This chapter sets objective standards for logistics facilities in line with AB 98. These rules apply to all logistics, warehouse, and distribution uses in the city, with stronger requirements for sites within 900 feet of a sensitive receptor. The section includes clear building setbacks and buffer standards, including the State-required 500-foot setback and additional buffer widths based on the size of the facility and the zoning district. Buffers must include features such as walls or berms, drought-tolerant landscaping, and double-row evergreen trees to help reduce noise, visual impacts, and emissions on nearby homes, schools, parks, childcare centers, and other sensitive uses. The ordinance also sets minimum separation distances for truck loading bays, generally between 300 and 500 feet.

The section includes objective standards for truck access and circulation, such as dedicated truck entry points, required on-site stacking space, limits on where heavy-duty trucks can operate, and a prohibition on truck queuing in the public right-of-way. New building-orientation requirements ensure loading areas face away from sensitive receptors and allow buildings to act as physical buffers for nearby properties. The ordinance also incorporates State-aligned idling limits, upgraded landscaping and screening, and requirements to add shade over paved truck areas over time.

For large logistics facilities of 250,000 square feet or more, the chapter includes AB 98’s Tier 1 21st Century Warehouse standards, such as installing electric-vehicle charging for at least 10 percent of employee parking spaces. Additional operational standards apply, including limits on heavy-truck delivery hours near sensitive receptors, lighting controls, compliance with City noise and odor rules, and restrictions on overnight truck parking.

All projects subject to this section must go through discretionary Site and Architectural Review.

During that review, the approving body must find that the project’s design, buffers, circulation plan, and operations meet the objective standards and adequately protect surrounding neighborhoods.

Together, these requirements ensure that logistics facilities in the City are designed and operated in a way that is compatible with nearby properties and consistent with AB 98.

Discussion – Planning Commission Input and Revisions
On December 18, 2025, the Planning Commission/ Site and Architectural Review Board held a duly

noticed public hearing for Zoning Code Amendment (ZCA) 25-04. After reviewing the staff report, considering public testimony, and evaluating the evidence presented, the Planning Commission voted to recommend approval of the ordinance to the City Council without changes.

Public Hearing Notification
Notice of the City Council public hearing for Zoning Code Amendment (ZCA) 25-03 was provided in accordance with Sections 65090 and 65091 of the California Government Code and Section

18.03.070 (Public Hearing Notice) of Chapter 18.03 (General Provisions) of the Grand Terrace Municipal Code.

The public hearing notice was published in a newspaper of general circulation, the San Bernardino County Sun, on January 22, 2026. In addition, the notice was posted by the City Clerk in compliance with applicable State law and the City’s adopted noticing requirements.

Conclusion
The Zoning Code Amendment (ZCA 25-04) updates Title 18 of the Municipal Code to align the City’s regulations with the requirements of AB 98 and SB 415, ensuring that logistics facilities are designed, reviewed, and operated using consistent and objective standards. These changes strengthen neighborhood protections, bring clarity to applicants and staff, and eliminate ambiguity by consolidating all State-mandated logistics standards into a coordinated local framework.

By adopting ZCA 25-04, the City will modernize its zoning regulations, maintain compliance with State law, and establish a predictable and transparent process for evaluating future logistics-related development. Because the amendment only updates local procedures and does not authorize or approve any specific project, it does not constitute a “project” under CEQA and requires no additional environmental review.

All required findings to support adoption of Zoning Code Amendment (ZCA) 25-04 are included in the ordinance provided as Attachment 1.

Staff recommends that the City Council adopt the Ordinance approving Zoning Code Amendment (ZCA) 25-04 and amend Title 18 of the Grand Terrace Municipal Code accordingly.

ENVIRONMENTAL IMPACT:

ZCA The City of Grand Terrace has reviewed the (ZCA) 25-04 project with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq) (“CEQA”).

Government Code Section 65852.28(e) – “A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.” Government Code Section 65913.4.5(b) – “A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.” Government Code 66499.41(i) – “A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.”

The City Council has determined that the text amendment in this Ordinance is not a project under CEQA pursuant to Government Code Sections 65852.28(e), 659.13.4.5(b), and 66499.41(i) and is therefore not subject to further environmental review under CEQA.

FISCAL IMPACT:

Adoption of Zoning Code Amendment (ZCA) 25-04 is not expected to result in any direct fiscal impact to the City. The ordinance updates the Municipal Code to comply with State law and does not approve or authorize any specific development project.

Any future logistics projects would be subject to the City’s existing application fees, plan check fees, and discretionary review processes in effect at the time of application. Implementation of the ordinance will be handled through existing staff resources and standard development review procedures.

01247.0001 2068860.1
ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, APPROVING ZONING CODE AMENDMENT
(ZCA) 25-04, AMENDING TITLE 18 (ZONING) TO IMPLEMENT
ASSEMBLY BILL 98 (2024), AS CLARIFIED BY SENATE BILL 415 (2024), INCLUDING ADDING DEFINITIONS, ESTABLISHING A
“LOGISTICS USE” CATEGORY, AND ADDING A NEW CHAPTER 18.75 (LOGISTICAL USE STANDARDS); AND FINDING THAT THE

ORDINANCE IS NOT A PROJECT UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO
GOVERNMENT CODE SECTIONS 65852.28(E), 65913.4.5(B), AND 66499.41(I).

WHEREAS, the City of Grand Terrace has adopted a Zoning Code, set forth in Title 18 of the Grand Terrace Municipal Code (“GTMC”), which has been amended from time to time to respond to changes in state law and community needs; and WHEREAS, on September 29, 2024, the Governor of California signed Assembly Bill 98 (“AB 98”), also known as the Planning, Logistics, and Neighborhood Standards Act, establishing statewide minimum standards applicable to logistics facilities, including requirements related to site design, building placement, buffering from sensitive receptors, lighting, truck routing, energy efficiency, and housing replacement requirements; and
WHEREAS, Assembly Bill 98 (2024) was subsequently refined and clarified by Senate Bill 415 (2024), which amended portions of the Planning, Logistics, and Neighborhood Standards Act, and the City’s Zoning Code Amendment (ZCA) 25-04 has been reviewed for consistency with both AB 98 and SB 415 to ensure full compliance with applicable state law; and
WHEREAS, AB 98 is intended to protect public health and welfare by reducing the negative environmental and community impacts of logistics development, especially near sensitive receptors such as residences, schools, and parks; and WHEREAS, AB 98 defines “logistics use developments” to include warehouses, distribution centers, fulfillment centers, cross-dock facilities, last-mile delivery centers, cold-storage logistics facilities, and similar industrial operations utilizing Class 4 through Class 8 trucks; and
WHEREAS, AB 98 further requires local jurisdictions to clearly identify and classify logistics uses in their land use regulations, necessitating the addition of a “Logistics Use / Logistics Use Development” land-use category within GTMC Table 18.27.010 (Nonresidential Land Use Regulations); and

WHEREAS, AB 98 mandates that local zoning regulations incorporate minimum standards for logistics uses, including requirements for building orientation, screening, landscaping, truck circulation, loading bay placement, and buffer areas from sensitive receptors; and
WHEREAS, AB 98 requires cities to ensure that local zoning codes incorporate minimum state standards for such logistics uses, including but not limited to building placement, façade design, screening, landscaping depth and plantings, truck access and circulation, operational limitations, and orientation of loading bays away from sensitive receptors; and
WHEREAS, to comply with AB 98, the City must amend its zoning code (Title 18) to define “logistics use,” revise the M2 Industrial District and MR Restricted Manufacturing District to include the required design, buffer, truck entrance, and operational standards; and
WHEREAS, AB 98 mandates developers to replace demolished housing (in certain cases) when logistics projects displace residential units, thereby contributing to affordable housing for affected communities; and
WHEREAS, Senate Bill 415 (2024) revised and clarified portions of AB 98 to ensure consistent implementation of logistics development standards across California jurisdictions; and
WHEREAS, the City Council desires to adopt this Zoning Code Amendment to ensure that future logistics development in the City meets the state’s minimum standards under AB 98, while protecting neighborhood health, safety, and welfare.

WHEREAS, this Ordinance is supported by and based upon related State legislation and guidance materials, including Assembly Bill No. 98 (2024) (Exhibit A), Assembly Bill No. 415 (2024) (Exhibit B), AB 98 Implementation Guidance for Local Agencies (Exhibit C), and the SB 415 Compliance Update (Exhibit D), all of which are incorporated herein by this reference.

WHEREAS, notice of the City Council Public Hearing concerning this Ordinance was duly published in a local newspaper at least ten (10) days prior to the Public Hearing and posted by the City Clerk in compliance with the City’s Zoning Code and City Council Resolution No. 2019-24, Expanded Public Noticing and Outreach Policy for Public Hearings and Public Workshops; and
WHEREAS, Ordinance No. ___ approving Zoning Code Amendment (ZCA) 25-04 is exempt from California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.28(e), 659.13.4.5(b), and 66499.41(i) and thus is not subject to further environmental review under CEQA; and

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WHEREAS, on December 18, 2025, the Planning Commission/Site and Architectural Review Board of the City of Grand Terrace conducted a duly noticed Public Hearing on Zoning Code Amendment (ZCA) 25-04 and considered testimony and evidence presented by the public, city staff, and other interested parties, at the Public Hearing and recommended approval of the ordinance to the City Council without changes; and
WHEREAS, on February 10, 2026, the City Council of the City of Grand Terrace held a duly noticed Public Hearing with respect thereto, and considered testimony and evidence at the Public Hearing on the Ordinance that would approve Zoning Code Amendment (ZCA) 25-04; and
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council hereby specifically finds that all the facts set forth in the above Recitals are true and correct and incorporated herein by this reference and made a part hereof.

SECTION 2. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the Public Hearing, the City Council hereby finds that the Project “Zoning Code Amendment (ZCA) 25-04” is not subject to environmental review pursuant Government Code Sections 65852.28(e), 65913.4.5(b), and 66499.41(i) and thus is not subject to further environmental review under CEQA as follows:

Finding: A project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Facts in Support of Finding: The City of Grand Terrace has reviewed the ZCA 25-04 project with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq) (“CEQA”).

Government Code Section 65852.28(e) – “A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.”
Government Code Section 65913.4.5(b) – “A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with

Section 21000) of the Public Resources Code.”
Government Code 66499.41(i) – “A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.”
The City Council has determined that the text amendment in this ordinance is not a project under CEQA pursuant to Government Code Sections 65852.28(e), 659.13.4.5(b), and 66499.41(i) and thus is not subject to further environmental review under CEQA.

SECTION 3. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the Public Hearing, the City Council determines the findings for Zoning Code Amendment (ZCA) 25-04 pursuant to Grand Terrace Municipal Code Section §18.90.040 can be made supporting the project application as follows:
1) Finding: The proposed amendment will not be detrimental to the health, safety, morals, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City.

Facts in Support of Finding: ZCA 25-04 implements state-mandated AB 98 standards regulating logistics use developments, including mandatory buffers, loading bay orientation requirements, landscaping standards, façade design, and truck routing controls. These standards reduce environmental, noise, and circulation impacts and therefore enhance public health and safety. 2) Finding: The proposed amendment will not be: Injurious to property or improvements in the neighborhood or within the City.

Facts in Support of Finding: The zoning amendments ensure that logistics use developments, including warehouses and distribution facilities, are constructed with mandatory state screening, noise-attenuating features, truck circulation requirements, and setbacks that protect adjacent properties. These standards exceed current minimum requirements and reduce potential adverse impacts on surrounding areas.
3) Finding: The proposed amendment will be consistent with the latest adopted general plan.

Facts in Support of Finding: The General Plan designates the MR and M2 districts for industrial and employment-generating uses. AB 98 compliance ensures that such uses develop with appropriate performance standards, environmental protections, and circulation controls. Therefore, the amendments maintain consistency with the General Plan’s Land Use and Circulation Elements.

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SECTION 4. Section 18.27.010 “Nonresidential Use regulations” of Chapter 18.27 – NONRESIDENTIAL DISTRICTS of the Grand Terrace Municipal Code is hereby amended to read in its entirely as follows:

Deletions as strikethroughs; additions as bold italics. “18.27.010 Nonresidential Use regulations.

Uses listed in Table 18.27.010 shall be allowed in one or more of the nonresidential districts as indicated in the columns below each district heading. Permitted uses are indicated by the letter "P" while the letter "C" indicates uses which require a conditional use permit. A "-" indicates uses which are prohibited.

Permitted Usesa AP C2 CM MR M2 PUB
Agricultural and nursery supplies and services - - - P P - Amateur "HAM" radio antenna structures (Subject to
Chapter 18.72)

P P P P P P
Antique shops C P P P - -
Apparel stores C P P P - -
Appliance stores and repair - P P P - -
Art, music and photographic studios and supply stores - P P P - - Athletic and health clubs and weight-reducing clinics - P P P - - Bakeries (retail only) C P P P - -
Bakeries (wholesale) - - - - P -
Banks, financial services and institutions P - - - - -
Barber and beauty shops - P P P - -
Bicycle shops - P P P - -
Book, gift and stationary stores (other than adult
related material)

C - - - - -
Building maintenance services - - C P P -
Building supplies and sales - - C C - -
Building supplies sales, enclosed - - - P - -
Building supplies sales (wholesale and retail), indoor - - - - P - Building supplies sales (wholesale and retail), outdoor - - - - C - Building supplies and sales, outdoor - - - C - -
Business and office services P - - - - -
Business and office facilities - - P P - -
Business support services - - P P - -
Camera shop and film processing services - P P P - -
Candy and confectionery stores (retail only) C P P P - - Carpet and floor covering stores - P P P - -

China and glassware stores C P P P - -
Cleaning and pressing establishments - P P P - -
Computer and software stores C P P P - -
Communication services - - P P P -
Contractor's office and storage yards, indoor - - - - P - Contractor's office and storage yards, outdoor - - - C C - Convenience stores C P P P - -
Curtain and drapery shops - P P P - -
Day care centers C C C C - -
Delicatessens and specialty food stores - P P P - -
Drug stores and pharmacies C P P P - -
Emergency shelters subject to Chapter 18.78 - - - - P - Equipment sales and services, indoor - - - P - -
Establishments with on-site alcohol beverage sales
and consumption that are not bona fide eating
establishments (bars, taverns, cocktail lounges,
breweries, distilleries and/or wine making facilities with sales for on-site and off- site consumption)b

C C C C - -
Florist shops C P P P - -
Funeral homes (without crematory services) - - - C - -
Funeral homes (with crematory services) - - - - C -
Furniture stores C P P P - -
General assembly facilities (other than church
facilities)

P - - - - -
Government offices and service facilities - - - - - P
Grocery stores and supermarkets C P P P - -
Hardware stores C P P P - -
Heavy equipment rentals, sales and services, indoor - - P P P - Heavy equipment rentals, sales and services, outdoor - - C C C - Hobby and craft shops C P P P - -
Ice cream and yogurt shops - P P P - -
Jewelry stores C P P P - -
Laundry (self-service) - P P P - -
Laundry and cleaning services - - - P - -
Laundry and dry-cleaning facilities - - - - P -
Leather goods and luggage stores C P P P - -
Liquor stores C P P P - -
Logistics Use – Warehouse/Distribution - - - P P
Mail order services - - - P P -
Manufacturing, light facilities - - C P P -

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Manufacturing, medium facilities - - - - P -
Medical and dental offices and related health clinics P - - - - - Modular units for office purpose only - - - C - -
Modular units for business office or headquarter
purposes only
- - - - C -
Motels and hotels - C C C - -
Nurseries and garden supply stores C P P P - -
Nursing and retirement home facilities C - - - - -
Office supplies store - P P P - -
Outdoor displays/uses shall take place in front of
business on site, which have been approved with a
conditional use permit. Under special circumstances
outdoor uses/displays are allowed without conditional
use permits during two city-wide events (the Grand
Terrace Days in June and Tour De Terrace Bike Event
in October), and in connection with business grand
openings. Temporary special event permits will be
required for display of associated balloons, banners
and special event signs.
- C C C - -
Paint, glass and wallpaper stores C P P P - -
Pet shops - P P P - -
Photography and film processing facilities - - - - P -
Plant nurseries, wholesale, outdoor - - - - C -
Printing, blueprinting and reproduction services - P P P P - Private School Facilities C - - - - -
Public and quasi-public facilities C - - - - -
Public library facilities - - - - - P
Public parks and recreational facilities - - - - - P
Public schools facilities - - - - - P
Public storage facilities, indoor - - P P P -
Public storage facilities, outdoor - - C C C -
Public utility facilities and services - - C C C P
Record, tape and video stores (sales and rental) - P P P - - Recreational facilities - - C C C -
Recreation vehicle storage, indoor - - - - P -
Recreational vehicle storage, outdoor - - - - C -
Research and development facilities - - P P - -
Research services - - - P - -

Restaurants: With incidental serving of beer and wine
(without a cocktail lounge, bar, entertainment or
dancing)
- P P P - -
Restaurants: With a cocktail lounge, bar, entertainment or dancing)
- C C C - -
Restaurants: Fast food (without a drive-thru) - P P P - - Restaurants: With entertainment and/or serving of
alcoholic beverages (other than beer and wine)
- C C C - -
Restaurants: Fast food (with a drive-thru) - C C C - -
Secondhand sales - C C C - -
Shoe stores (sales and repair) - P P P - -
Sporting goods stores C P P P - -
Storage Facility - - - P P
Tailor shops - P P P - -
Temporary uses which are determined by the
community development director not to have
significant long-term impact on the environment. (Uses
such as parking lot sales, Christmas tree sales,
seasonal sales, rummage sales, and others with
review through the land use approval or administrative
site and architectural approval process in accordance
with Chapter 18.63, Site and Architectural Review)
- P P P P -
Television, radio, VCR, stereo and CD component
stores (sales and repair)
- P P P - -
Toy stores C P P P - -
Variety department stores C P P P - -
Vehicle related services (Includes but not limited to
motorcycles and recreational vehicles. And service
related to boats, trailers and campers.): electric vehicle charging stations (accessory use)c

P P P P P P
Vehicle related services (Includes but not limited to
motorcycles and recreational vehicles. And service
related to boats, trailers and campers.): parts and
supplies (retail)
- P P P P -
Vehicle related services (Includes but not limited to
motorcycles and recreational vehicles. And service
related to boats, trailers and campers.): parts and
supplies (wholesale)
- - - - P -

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Vehicle related services (Includes but not limited to
motorcycles and recreational vehicles. And service
related to boats, trailers and campers.): rentals
- C C C P -
Vehicle related services (Includes but not limited to
motorcycles and recreational vehicles. And service
related to boats, trailers and campers.): repair
- - - C P
Vehicle related services (Includes but not limited to
motorcycles and recreational vehicles. And service
related to boats, trailers and campers.): sales (new
and used vehicles)
- C C C C -
Vehicle related services (Includes but not limited to
motorcycles and recreational vehicles. And service
related to boats, trailers and campers.): service
stations
- C C C C -
Veterinary clinic (completely contained in a building) - C C P P - Watch and clock shops (sales and repair); C P P P - -
Wireless communication facilities subject to Chapter

18.71 C C C C C C
Wholesale Facility - - - P P -
Wholesale, storage and distribution facilities - - - P P - Yardage goods stores - P P P - -
Footnotes:
a. Land uses subject to Chapter 18.27.020 Nonresidential Hours of Operation. b. "Bona fide public eating place" means a place which is regularly and in a bona fide manner used and kept open for the serving of meals to "guests" for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking and an assortment of foods which may be required for ordinary "meals", the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the department of health. "Meals" means the usual assortment of foods commonly ordered at various hours of the day; the service of such food and victuals only as sandwiches or salads shall not be deemed a compliance with this requirement. In addition, the following, and offerings similar to them, do not meet the meal requirement:
• Snacks such as pretzels, nuts, popcorn, pickles, and chips. • Food ordinarily served as appetizers or first courses such as cheese sticks, fried calamari, chicken wings, pizza bites (as opposed to a pizza), egg rolls, pot stickers, flautas, cups of soup, and any small portion of a dish that may

constitute a main course when it is not served in a full portion or when it is intended for sharing in small portions.
• Side dishes such as bread, rolls, french fries, onion rings, small salads (green, potato, macaroni, fruit), rice, mashed potatoes, and small portions of vegetables.
• Reheated refrigerated or frozen entrees.
• Desserts.
"Guests" shall mean persons who, during the hours when meals are regularly served therein, come to a bona fide public eating place for the purpose of obtaining, and actually order and obtain at such time, in good faith, a meal therein.

Nothing in this Section, however, shall be construed to require that any food be sold or purchased with any beverage.
c. Nonresidential Electric Vehicle Charging Stations shall be processed by the City in compliance with AB 970 (McCarty, 2021) subject to the specific binding timelines for the expedited, streamlined, ministerial review and approval of Electric Vehicle Charging Station (EVCS) permit applications per Assembly Bill 1236 (Chiu, 2015).

The review periods for Electric Vehicle Charging Stations are determined based on the size of the proposed project.
d. All Logistics Uses, including logistics warehouses, distribution facilities, fulfillment centers, and cross-dock facilities, shall comply Chapter 18.75 and with Assembly Bill 98 (2024), including but not limited to mandatory building orientation, circulation design, landscaping, screening, truck loading bay placement, and vehicle routing standards. Where conflicts occur between this Code and AB 98, AB 98 shall govern.

SECTION 5. Chapter 18.75 – Logistical Use Standards is hereby added to Title 18 of the Grand Terrace Municipal Code to read in its entirety as follows:

18.75 - Logistical Use Standards

18.75.010 Purpose
The purpose of this section is to ensure that logistical uses and large-scale warehousing and distribution facilities within the M2 Industrial District are designed and operated in a manner compatible with surrounding nonindustrial uses and consistent with Assembly Bill 98. These standards are intended to minimize potential adverse impacts from noise, air emissions, truck traffic, lighting, and visual intrusion.

18.75.020 Applicability.

1. The provisions of this chapter apply to any logistical use or warehousing and distribution facility within the City of Grand Terrace.

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2. Any logistical use located within 900 feet of a sensitive receptor shall comply with all standards in this chapter.

3. For purposes of this section, sensitive receptors include residences, schools, childcare centers, hospitals, convalescent facilities, parks, and other similar uses that are sensitive to noise, air quality, and traffic impacts.

18.75.030 Definitions

1. For the purposes of this section, the following definition shall apply:
a. “Logistics use” means a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks (Class 4 through Class 8) are primarily involved in the movement of the cargo, goods, or products.
“Logistics use” does not include any of the following:

Facilities where food or household goods are sold directly to consumers and are accessible to the public.

A building primarily served by rail to move cargo, goods, or products.

Strategic Intermodal Facilities, defined as projects that satisfy all of the following:

Logistics facilities, including warehousing and transloading facilities, served by rail; and
Intermodal freight transport services.

This definition is adopted to comply with Assembly Bill 98 (2024) and California Government Code §65098(d). In the event of any conflict between this local definition and the Government Code, the Government Code shall supersede.
b. A “sensitive receptor” means one or more of the following:

Residences, including private homes, apartments, condominium units, group homes, dormitory units, or retirement homes; Schools, including preschools, prekindergarten, or schools maintaining kindergarten or any of grades 1 through 12, inclusive; Daycare facilities, including in-home daycares;
Publicly owned parks, playgrounds, and recreational areas or facilities primarily used by children, unless such areas are developed as a condition of approval for a logistics use;
Nursing homes, long-term care facilities, hospices, convalescent facilities, or similar live-in housing;

Hospitals, as defined in Section 128700 of the California Health and Safety Code.

This definition is consistent with California Government Code §65098(e). If there is a conflict between this Code and the Government Code, the Government Code definition shall control.

18.75.040 – Development and Operational Standards
A. Buffers and Setbacks from Sensitive Receptors.

1. A minimum 500-foot building setback applies for all logistical uses within 900 feet of a sensitive receptor, as required under AB 98.

2. Buffer Requirements by Use Size and Zoning:
a. For logistical uses 250,000 square feet or larger located on a site zoned for industrial use or recently rezoned industrial, the buffer area shall include a solid decorative wall, landscaped berm with wall, or landscaped berm, with drought-tolerant groundcover and solidscreen trees. The minimum buffer width shall be 50 feet. b. For logistical uses 250,000 square feet or larger located on a site not zoned industrial and requiring rezoning, the buffer area shall include a solid decorative wall, landscaped berm with wall, or landscaped berm, with drought-tolerant groundcover and solid-screen trees. The minimum buffer width shall be 100 feet.
c. For logistical uses less than 250,000 square feet located on a site zoned for industrial use or recently rezoned industrial, the buffer area shall include a solid decorative wall, landscaped berm with wall, or landscaped berm, with drought-tolerant groundcover and solidscreen trees. The minimum buffer width shall be 50 feet. d. Buffer Planting Standards: Trees used as part of the buffer shall be planted in two rows along the length of the property line adjacent to the sensitive receptor. Trees shall be evergreen, drought-tolerant, low biogenic emission species, with a minimum 36-inch box size at planting, and spaced no greater than 40 feet on center. Palm trees shall not be used.
e. Measurement: Buffers shall be measured from the property line of all adjacent sensitive receptors that fully screen the project from view. f. The Planning Commission/Site and Architectural Review Board may adjust buffer width, planting density, or berm/wall treatment where natural topography, existing structures, or equivalent mitigation measures provide equal or greater protection to sensitive receptors.

B. Truck Loading Bay Locations

1. For sites not zoned industrial (requiring rezoning) or for logistical uses of 250,000 square feet or more, maintain a minimum distance of 500 feet, measured in a direct straight line, from the property line of the

01247.0001 2068860.1
nearest sensitive receptor to the nearest truck loading bay opening. (CA Gov’t Code §65098.1(b)).

2. For sites of 250,000 square feet or more, zoned for industrial use (or recently rezoned to industrial), maintain a minimum distance of 300 feet, measured in a direct straight line, from the property line of the nearest sensitive receptor to the nearest truck loading bay opening (CA Gov’t Code §65098.1(a)).

C. Truck Entrances, Exit, and Internal Circulation requirements

1. Position entry gates into the truck loading court after a minimum of 50 feet of total available stacking depth inside the property line

2. Provide a separate entrance for heavy-duty trucks

3. Locate entry, exit, and internal circulation routes away from sensitive receptor

4. Prohibit heavy-duty diesel truck drive aisles along building sides directly adjacent to a sensitive receptor property line D. Building and Loading Orientation.

1. Loading docks, truck bays, and service doors shall be located on the side or rear of buildings and oriented away from sensitive receptors and public streets, wherever feasible.

2. Buildings shall be designed to act as a physical barrier between loading areas and any adjacent nonindustrial properties.

3. Truck access points shall be consolidated and located as far as practical from residential property lines and intersections with nonindustrial streets.

4. Where truck loading or circulation areas face a sensitive receptor, a combination of solid walls and evergreen screening shall be provided to block views and reduce noise.

E. Truck Circulation and Idling.

1. Truck access shall be designed to minimize conflicts with passenger vehicles and pedestrians.

2. Truck queuing on public streets is prohibited.

3. Trucks shall not idle for more than five (5) minutes on-site and are prohibited from idling within 300 feet of a sensitive receptor, consistent with state air quality regulations.

F. Landscaping and Screening.

1. All perimeter property lines adjacent to nonindustrial uses shall include a minimum 10-foot landscape buffer with evergreen trees and shrubs forming a continuous visual screen.

2. Landscaping shall be designed to reduce heat and glare from paved areas and to buffer truck circulation from view.

3. Decorative solid walls or berms may be required as part of the screening treatment.

4. Interior parking and truck areas shall include tree planting sufficient to shade at least 50 percent of paved surfaces within 15 years of installation.

G. Electric Vehicle Charging Requirements (AB 98 – Tier 1 21st Century Warehouse)

1. This subsection applies to any logistical use, warehouse, fulfillment center, or distribution facility 250,000 square feet or more, consistent with the definition of a “Tier 1 21st Century Warehouse” under California Government Code §65098(g)(6).

2. A minimum of 10 percent of all passenger vehicle parking spaces provided on-site shall be installed with electric vehicle charging stations at the time of project completion.

3. When the required number of installed EV charging spaces results in a fractional number, the total shall be rounded up to the next whole number.

4. EV charging spaces shall:
a. Be distributed across passenger parking areas to ensure reasonable access for employees; and
b. Be located in safe, accessible areas with clear pedestrian routes to building entries.

5. The required minimum number of installed EV charging stations shall not be reduced through shared parking, off-site parking, or parking demand studies.

6. Where any conflict exists between this section and California Government Code §65098, the state standard shall govern.

H. Operational Standards.

1. Logistical uses within 500 feet of a sensitive receptor shall limit truck delivery and heavy-duty vehicle operations to 6:00 a.m. – 10:00 p.m., unless otherwise approved by the reviewing authority.

2. Truck routes shall comply with the City’s designated truck route map or Circulation Element.

3. All exterior lighting shall be fully shielded and directed downward to prevent glare onto adjacent properties.

4. Noise, odor, and vibration shall comply with applicable performance standards in Chapter 18.68.

01247.0001 2068860.1

5. Any overnight parking of heavy-duty trucks shall occur only within designated on-site areas screened from view of sensitive receptors.

I. Review and Findings.

All logistical uses subject to this section shall be reviewed through Site and Architectural Review (Chapter 18.63). In addition to the findings required by that chapter, the Planning Commission/ Site and Architectural Review Board shall find that:

1. The site design, building orientation, and landscaping comply with the buffer and screening requirements of this section;

2. The project minimizes potential truck traffic, air quality, and noise impacts on adjacent properties and sensitive receptors; and

3. The project includes operational and physical measures sufficient to comply with the intent of AB 98 and the City’s General Plan policies for environmental quality and land use compatibility.

Figure A: Required Setbacks for Truck Loading Bays
Figure B: Entry Gate Placement and Minimum Stacking Distance (Cross-Dock Layout)

Figure C: Required Buffers and Landscape Treatments Near Sensitive Receptors

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SECTION 6. The City Council enacts this Ordinance approving ZCA 25-04 under the authority granted to cities by Article XI, Section 7 of the California Constitution and Government Code Sections 65852.28, 65913.4.5, and 66499.41.

SECTION 7. If any section, subsection, paragraph, sentence, clause or phrase of the Ordinance, or its application to any person or circumstance, is for any reason held to be invalid and unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases hereof be declared invalid or unenforceable.

SECTION 8. This Ordinance approving ZCA 25-03 shall take effect and be in force thirty (30) days from and after its adoption.

SECTION 9. First read at a regular meeting of the City Council held on the 10th day of February 2026 and adopted the Ordinance after the second reading at a regular meeting held on the ___ day of February 2026.

SECTION 10. The Mayor shall sign, and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect thirty (30) days after its final passage.

PASSED, APPROVED, AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the ___ day of ____ 2026.
_______________________
Bill Hussey
Mayor
ATTEST:
____________________________
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:
____________________________
Adrian R. Guerra
City Attorney

Assembly Bill No. 98
CHAPTER 931
An act to add Section 65302.02 to, and to add Chapter 2.8 (commencing with Section 65098) to Division 1 of Title 7 of, the Government Code, and to add Sections 40458.5 and 40522.7 to the Health and Safety Code, relating to land use.
[Approved by Governor September 29, 2024. Filed with
Secretary of State September 29, 2024.]
legislative counsel’s digest
AB 98, Juan Carrillo. Planning and zoning: logistics use: truck routes. (1)  Existing law, the Planning and Zoning Law, sets forth various requirements relating to the review of development project permit applications and the issuance of development permits for specified classes of development projects.

This bill, beginning January 1, 2026, would prescribe various statewide warehouse design and build standards for any proposed new or expanded logistics use developments, as specified, including, among other things, standards for building design and location, parking, truck loading bays, landscaping buffers, entry gates, and signage. The bill would except from those design and build standards certain existing logistics use developments, proposed expansions of a logistics use development, and property currently in a local entitlement process to become a logistics use, under prescribed conditions. The bill would require a facility operator, prior to the issuance of a certificate of occupancy, to establish and submit for approval by a city, county, or city and county a truck routing plan to and from the state highway system based on the latest truck route map of the city, county, or city and county, as prescribed. The bill would require a facility operator to enforce the plan. The bill would provide for the revision of the plan in specified circumstances.

The bill would prohibit a city, county, or city and county from approving development of a logistics use that does not meet or exceed the standards outlined in the bill. The bill would require a city, county, or city and county to condition approval of a logistics use on 2-to-1 replacement of any demolished housing unit that was occupied within the last 10 years unless the housing unit was declared substandard by a building official, as specified, and payments to displaced tenants if residential dwellings are affected through purchase, as prescribed. The bill would define terms for these purposes.
(2)  The Planning and Zoning Law requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city and specified land outside its

96

boundaries that includes, among other specified mandatory elements, a circulation element consisting of the general location and extent of existing and proposed major thoroughfares, transportation routes, terminals, any military airports and ports, and other local public utilities and facilities, all correlated with the land use element of the plan. Existing law requires, upon any substantive revision of the circulation element, that the legislative body modify the element to address specified additional issues.

This bill would require a county or city, by January 1, 2028, except as provided, to update its circulation element, as prescribed, including identifying and establishing specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and concentrations of sensitive receptors, as defined. The bill would establish specific standards for truck routes. The bill would require a county or city to provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations.

The bill would require a county or city to make truck routes publicly available and share maps of the truck routes with warehouse operators, fleet operators, and truck drivers. The bill would authorize the Attorney General to enforce these provisions, as provided, including by imposition of a fine of up to $50,000 every 6 months if the required updates have not been made. (3)  Existing law provides for the creation of the South Coast Air Quality Management District in those portions of the Counties of Los Angeles, Orange, Riverside, and San Bernardino included within the area of the South Coast Air Basin, as specified. Existing law provides that the south coast district is governed by a board consisting of 13 members and requires the district to adopt rules and regulations to carry out the south coast district air quality management plan that are not in conflict with state and federal laws and rules and regulations.

This bill would require the south coast district to establish a process for receiving community input on how any penalties assessed and collected for violation of the Warehouse Indirect Source Rule are spent, as specified. The bill would require the south coast district, subject to an appropriation for this express purpose, to, beginning on January 1, 2026, and until January 1, 2032, deploy mobile air monitoring systems within the Counties of Riverside and San Bernardino to collect air pollution measurements in communities that are near operational logistics use developments. The bill would require the south coast district to use the data collected to conduct an air modeling analysis to evaluate the impact of air pollution on sensitive receptors from logistics use development operations and to submit its findings to the Legislature on or before January 1, 2033. The bill would also require the district to submit an interim report to the Legislature on or before January 1, 2028, to evaluate the impact of air pollution on sensitive receptors, as defined, from logistics use development operations in the Counties of Riverside and San Bernardino, as provided.
(4)  By modifying the duties of local agencies with regard to the approval of logistics use development and requiring the revision of the circulation 96 Ch. 931 — 2 —

element of a general plan, the bill would impose a state-mandated local program.
(5)  The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (6)  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1. Chapter 2.8 (commencing with Section 65098) is added to Division 1 of Title 7 of the Government Code, to read:

Chapter 2.8. Warehouse Design and Build Standards
65098. As used in this chapter:
(a)  “21st century warehouse” means a logistics use that meets all of the following:
(1)  Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations), including, but not limited to, the following requirements related to:
(A)  Photovoltaic system installation and associated battery storage. (B)  Cool roofing.
(C)  Medium- and heavy-duty vehicle charging readiness. (D)  Light-duty electric vehicle charging readiness and installed charging stations.
(2)  Has skylights in at least 1 percent of the roof area, or equivalent LED efficient lighting.
(3)  Provides conduits and electrical hookups at all loading bays serving cold storage. Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay.
(4)  Ensures that any heating, ventilation, and air-conditioning is high-efficiency.
(5)  (A)  Ensures that all classes of forklifts used on site, pursuant to State Air Resources Board’s Zero-Emission Forklifts regulation, as drafted, shall be zero-emission by January 1, 2030, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. 96 — 3 — Ch. 931

(B)  (i)  If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used.
(ii)  Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph.
(6)  (A)  Ensures that equipment used on site utilizing small off-road engines shall be zero-emission, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. (B)  (i)  If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used.
(ii)  Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph.
(C)  Should any equipment used on site utilizing small off-road engines be contracted out, the logistics use facility shall preferentially contract for services utilizing zero-emission small off-road engines. (b)  “Expansion of an existing logistics use” means the expansion of an existing logistics use by 20 percent or more of the existing square footage.

Office space shall not be included as part of the existing square footage or in the square footage for the 20-percent expansion threshold. (c)  “Heavy-duty truck” means a class 7 or class 8 truck. As used in this subdivision:
(1)  “Class 7 truck” means a truck with a gross vehicle weight rating of 26,001 to 33,000 pounds.
(2)  “Class 8 truck” means a truck with a gross vehicle weight rating of greater than 33,000 pounds.
(d)  “Logistics use” means a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products. “Logistics use” does not include any of the following:
(1)  Facilities where food or household goods are sold directly to consumers and are accessible to the public.
(2)  A building primarily served by rail to move cargo goods or product. (3)  (A)  A Strategic Intermodal Facility.
(B)  For purposes of this subdivision, “Strategic Intermodal Facility” means a project that satisfies all of the following requirements:
(i)  Logistics facilities, including warehousing and transloading facilities, served by rail.
(ii)  Intermodal freight transport services.
(iii)  All facility structures and related rail operations are located within a single site footprint.
(e)  “Sensitive receptor” means one or more of the following:
(1)  A residence, including, but not limited to, a private home, apartment, condominium unit, group home, dormitory unit, or retirement home. (2)  A school, including, but not limited to, a preschool, prekindergarten, or school maintaining kindergarten or any of grades 1 to 12, inclusive. 96 Ch. 931 — 4 —

(3)  A daycare facility, including, but not limited to, in-home daycare. (4)  Publicly owned parks, playgrounds, and recreational areas or facilities primarily used by children, unless the development of the park and recreation areas are included as a condition of approval for the development of a logistics use.
(5)  Nursing homes, long-term care facilities, hospices, convalescent facilities, or similar live-in housing.
(6)  Hospitals, as defined in Section 128700 of the Health and Safety Code.
(f)  “Small off-road engines” means spark-ignition engines rated at or below 19 kilowatts.
(g)  “Tier 1 21st century warehouse” means a logistics use that meets all of the following:
(1)  Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations), including, but not limited to, the following requirements related to:
(A)  (i)  Photovoltaic system installation and associated battery storage. (ii)  For purposes of the photovoltaic system installation requirement in clause (i), all warehouse square footage should be considered conditioned space.
(B)  Cool roofing.
(C)  Medium- and heavy-duty vehicle charging readiness. (D)  Light-duty electric vehicle charging readiness and installed charging stations.
(2)  Has skylights in at least one percent of the roof area, or equivalent LED efficient lighting.
(3)  Has a microgrid-ready switchgear system capable of supporting distributed energy resources.
(4)  Is advanced smart metering ready.
(5)  Has a minimum of 50 percent of all passenger vehicle parking spaces preinstalled with conduit and all necessary physical infrastructure to support future charging of electric vehicles.
(6)  Has a minimum of 10 percent of all passenger vehicle parking spaces installed with electric vehicle charging stations.
(7)  Provides conduits and electrical hookups at all loading bays serving cold storage. Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay.
(8)  Ensures that any heating, ventilation, and air-conditioning is high-efficiency.
(9)  (A)  Ensures that all classes of forklifts used on site, pursuant to State Air Resources Board’s Zero-Emission Forklifts regulation, as drafted, shall be zero-emission by January 1, 2028, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. 96 — 5 — Ch. 931

(B)  (i)  If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used.
(ii)  Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph.
(10)  (A)  Ensures that equipment used on site utilizing small off-road engines shall be zero-emission, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. (B)  (i)  If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used.
(ii)  Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph.
(C)  Should any equipment used on site utilizing small off-road engines be contracted out, the logistics use facility shall preferentially contract for services utilizing zero-emission small off-road engines. (h)  “Warehouse concentration region” includes the Counties of Riverside and San Bernardino and the Cities of Chino, Colton, Fontana, Jurupa Valley, Moreno Valley, Ontario, Perris, Rancho Cucamonga, Redlands, Rialto, Riverside, and San Bernardino.
65098.1. (a)  Commencing January 1, 2026, any proposed new or expanded logistics use development 250,000 square feet or more where the loading bay is within 900 feet of a sensitive receptor that is utilizing a site zoned for industrial use or any site where an application was submitted to the jurisdiction by September 30, 2024, to rezone as industrial and the rezone to industrial was ultimately approved shall comply with all of the following:
(1)  Include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098.
(2)  Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible. (3)  Locate truck loading bays a minimum of 300 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method.
(4)  Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses.
(5)  Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(6)  Include buffering and screening to mitigate for light and noise, as described in Section 65098.2.
(b)  Commencing January 1, 2026, except as provided for in subdivision (c), any proposed new or expanded logistics use development that is on land that is not zoned industrial, whether developed or undeveloped, or land that needs to be rezoned, where the loading bay is within 900 feet of a sensitive receptor, shall comply with all of the following:
96 Ch. 931 — 6 —

(1)  If the logistics use development is 250,000 square feet or more it shall include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098. If the logistics use development is less than 250,000 square feet it shall include all 21st century warehouse design elements described in subdivision (a) of Section 65098. (2)  Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible. (3)  Locate truck loading bays a minimum of 500 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method.
(4)  Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses.
(5)  Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(6)  Include buffering and screening to mitigate for light and noise, as described in Section 65098.2.
(c)  Commencing January 1, 2026, any proposed new or expanded logistics use development that is on land that is not zoned industrial, whether developed or undeveloped, or land that needs to be rezoned, and is located in the warehouse concentration region, shall comply with all of the following:
(1)  If the logistics use development is 250,000 square feet or more it shall include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098. If the logistics use development is less than 250,000 square feet it shall include all 21st century warehouse design elements described in subdivision (a) of Section 65098. (2)  Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible. (3)  Locate truck loading bays a minimum of 500 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method.
(4)  Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses.
(5)  Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(6)  Include buffering and screening to mitigate for light and noise, as described in Section 65098.2.
(d)  Commencing January 1, 2026, any proposed new or expanded logistics use development less than 250,000 square feet where the loading bay is within 900 feet of a sensitive receptor that is utilizing a site zoned for industrial use or any site where an application was submitted to the 96 — 7 — Ch. 931

jurisdiction by September 30, 2024, to rezone as industrial and the rezone to industrial was ultimately approved shall comply with all of the following:
(1)  Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible. (2)  Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(3)  Include buffering and screening to mitigate for light and noise, as described in Section 65098.2.
(4)  Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations), including, but not limited to, the following requirements related to:
(A)  Photovoltaic system installation and associated battery storage. (B)  Cool roofing.
(C)  Medium- and heavy-duty vehicle charging readiness. (D)  Light-duty electric vehicle charging readiness and installed charging stations.
(5)  Provides conduits at loading bays equal to one truck per every loading bay serving cold storage. Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay.
(6)  Ensures that any heating, ventilation, and air-conditioning is high-efficiency.
(7)  Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses.
(e)  (1)  Except as provided in paragraph (2), on or before January 1, 2028, a city, county, or city and county shall update its circulation element to include truck routes, as specified in Section 65302.02. (2)  On or before January 1, 2026, all cities and counties in the warehouse concentration region shall update its circulation element to include truck routes, as specified in Section 65302.02.
65098.1.5. (a)  (1)  Notwithstanding any other provision of law, any existing logistics use development in existence as of September 30, 2024, shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a new sensitive receptor is constructed, established, or permitted after the effective date of this chapter.
(2)  Notwithstanding any other provision of law, if, by September 30, 2024, a proposed expansion of a logistics use development is in a local entitlement process, then the proposed expansion shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) 96 Ch. 931 — 8 —

of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a sensitive receptor is constructed, established, or permitted after the effective date of this chapter.
(3)  Notwithstanding any other provision of law, if, by September 30, 2024, a property is currently in a local entitlement process to become a logistics use, then the proposed logistics use development shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a sensitive receptor is constructed, established, or permitted after the effective date of this chapter. (b)  (1)  Any new logistics use developments that require the rezoning of land and must undergo a municipal entitlement process shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if the start of the entitlement process for the logistics use began before any sensitive receptor started its own entitlement or permitting process, unless the proposed sensitive receptor was an existing allowable use according to local zoning regulations.
(2)  During a logistics use development’s entitlement process for a new or expanded logistics use, if a new sensitive receptor is proposed or established within the distances required by paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, then those distance requirements shall not apply to the logistics use development so long as the logistics use development was not already subject to those requirements prior to the new sensitive receptor being proposed or established.
(c)  This chapter shall not apply to any logistics projects that were subject to a commenced local entitlement process prior to September 30, 2024. (d)  The protection afforded by this section shall remain in effect from the time of the initial application submission through the completion of the entitlement process, including any necessary rezoning actions and through the development period. If no development activity occurs within five years of entitlement approvals, the protections shall be waived. (e)  This chapter shall not apply to a logistics project that received an approval by a local agency prior to the effective date of this chapter. For purposes of this subdivision, “approval” shall have the same meaning as set forth in subdivision (a) of Section 15352 of Chapter 3 of Division 6 of Title 14 of the California Code of Regulations.
65098.2. (a)  Any new logistics use facility within 900 feet of a sensitive receptor shall have a buffer as follows:
(1)  If the logistics use development is subject to the requirements of subdivision (a) or (d) of Section 65098.1, the buffer shall be 50 feet in width measured from the property line of all adjacent sensitive receptors that fully screen the project from the sensitive receptor.
(2)  If the logistics use development is subject to either subdivision (b) or subdivision (c) of Section 65098.1, the buffer shall be 100 feet in width 96 — 9 — Ch. 931

measured from the property line of all adjacent sensitive receptors that fully screen the project from the sensitive receptor.
(b)  Buffer areas shall include a solid decorative wall, landscaped berm and wall, or landscaped berm 10 feet or more in height, drought tolerant natural ground landscaping with proper irrigation, and solid-screen buffering trees as described in subdivision (c).
(c)  Trees shall be used as part of a solid-screen buffering treatment and planted in two rows along the length of the property line adjacent to the sensitive receptor. Trees used for this purpose shall be evergreen, drought tolerant, to the extent feasible, composed of species with low biogenic emissions, of a minimum 36-inch box size at planting, and spaced at no greater distance than 40 feet on center. Palm trees shall not be utilized. 65098.2.5. The entry gates into the loading truck court for a new or expanded logistics use facility shall be positioned after a minimum of 50 feet of total available stacking depth inside the property line. The stacking depth shall be increased by 70 feet for every 20 loading bays beyond 50 loading bays, to the extent feasible.
65098.2.7. (a)  The purpose of this section is to ensure that logistics use developments, beginning January 1, 2026, are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use development to roadways that are suited to handle the associated traffic and that predominantly serve commercial uses.
(b)  (1)  Any new logistics use development shall be sited on roadways that meet the following classifications:
(A)  Arterial roads.
(B)  Collector roads.
(C)  Major thoroughfares.
(D)  Local roads that predominantly serve commercial uses. (2)  For purposes of this chapter, local roads shall be considered to predominantly serve commercial uses if more than 50 percent of the properties fronting the road within 1000 feet are designed for commercial or industrial use according to the local zoning ordinance. (c)  A waiver may be granted where siting on the designated roadways pursuant to subdivision (b) is impractical due to unique geographic, economic, or infrastructure-related reasons. The waiver shall be approved by the city, county, or city and county, provided that the applicant demonstrates all of the following:
(1)  There is no feasible alternative site that exists within the designated roadways.
(2)  A traffic analysis has been completed and submitted to the local approving authority.
(3)  The site is an existing industrial zone.
(4)  The proposed site will incorporate mitigations to minimize traffic and environmental impacts on residential areas to the greatest extent feasible. 96 Ch. 931 — 10 —

65098.3. (a)  Anti-idling signs indicating a three-minute heavy-duty truck engine idling restriction shall be posted at logistics use developments along entrances to the site and at the truck loading bays. (b)  Signs shall be installed at all heavy-duty truck exit driveways directing truck drivers to the truck route as indicated in the truck routing plan, as described in Section 65098.4, and in the state highway system. 65098.4. Prior to the issuance of a certificate of occupancy, a facility operator shall establish and submit for approval to the planning director or equivalent position for the city, county, or city and county a truck routing plan to and from the state highway system based on the latest truck route map of the city, county, or city and county. The truck routing plan shall describe the operational characteristics of the use of the facility operator, including, but not limited to, hours of operation, types of items to be stored within the building, and proposed truck routing to and from the facility to designated truck routes that, to the greatest extent possible, avoid passing sensitive receptors. The truck routing plan shall include measures, such as signage and pavement markings, queuing analysis, and enforcement, for preventing truck queuing, circling, stopping, and parking on public streets.

The facility operator shall be responsible for enforcement of the truck routing plan. A revised truck routing plan shall be submitted to the planning director or equivalent position prior to a business license being issued by the city, county, or city and county for any new tenant of the property. The planning director or equivalent position shall have discretion to determine if changes to the truck routing plan are necessary, including, but not limited to, any additional measures to alleviate truck routing and parking issues that may arise during the life of the facility.
65098.5. (a)  A city, county, or city and county shall not approve development of a logistics use that does not meet or exceed the standards outlined in this chapter.
(b)  This section shall not be construed to restrict the existing authority of a city, county, or city and county to deny a logistics use facility altogether. 65098.6. A city, county, or city and county shall condition approval of a logistics use on the following:
(a)  Two-to-one replacement of any demolished housing unit that was occupied within the last 10 years, unless the housing unit was declared substandard by a building official, pursuant to Section 17920.3 of the Health and Safety Code, prior to purchase by the developer. For each housing unit demolished, regardless of market value of the unit, two units of affordable housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that are deed-restricted shall be built within the jurisdiction. Funds from any fee imposed for the replacement of demolished housing units shall be placed in a housing-specific set-aside account and shall be used for housing within three years of collection.
(b)  If residential dwellings are affected through purchase, the developer shall be required to provide any displaced tenant with an amount equivalent to 12 months’ rent at the current rate.
96 — 11 — Ch. 931

65098.7. Nothing in this chapter shall be construed to supersede mitigation measures required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
65098.8. The Legislature finds and declares that the movement and storage of freight and the impact of this activity on public health and communities across the state as set forth in this chapter is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities.
65098.9. The provisions of this chapter shall not apply to a logistics use development if it meets both of the following:
(a)  The logistics use development is a mixed-use development that may create sensitive receptors on the site of the new logistics use development. (b)  There are no existing sensitive receptors within 900 feet of the loading bay.

SEC. 2. Section 65302.02 is added to the Government Code, to read:
65302.02. By January 1, 2028, except as provided for in subdivision (h), a county or city shall update its circulation element, as required by subdivision (b) of Section 65302, to do all of the following:
(a)  Identify and establish specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and sensitive receptors, as defined by Section 65098.
(b)  Maximize the use of interstate or state divided highways as preferred routes for truck routes. The county or city shall also maximize use of arterial roads, major thoroughfares, and predominantly commercially oriented local streets when state or interstate highways are not utilized. Truck routes shall comply with the following:
(1)  Major or minor collector streets and roads that predominantly serve commercially oriented uses shall be used for truck routes only when strictly necessary to reach existing industrial zones.
(2)  Trucks shall be routed via transportation arteries that minimize exposure to sensitive receptors.
(3)  On and after January 1, 2028, all proposed development of a logistics use development, as defined in subdivision (d) of Section 65098, shall be accessible via arterial roads, major thoroughfares, or roads that predominantly serve commercially oriented uses.
(A)  The purpose of this section is to ensure that logistics use developments are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use developments to roadways that are suited to handle the associated traffic and that predominantly serve commercial uses.
(B)  For purposes of this section, local roads shall be considered to predominantly serve commercial uses if more than 50 percent of the 96 Ch. 931 — 12 —

properties fronting the road within 1000 feet are designated for commercial or industrial use according to the local zoning ordinance. (c)  The county or city may consult with the Department of Transportation and the California Freight Advisory Committee for technical assistance. (d)  The county or city shall provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations.
(e)  The county or city shall make truck routes publicly available in geographic information system (GIS) format and share GIS maps of the truck routes with warehouse operators, fleet operators, and truck drivers. (f)  The city or county shall provide opportunities for the involvement of citizens, California Native American Indian tribes, public agencies, public utility companies, and civic, educational, and other community groups through public hearings and any other means the planning agency deems appropriate, consistent with Section 65351.
(g)  The city or county shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the changes required pursuant to this section.
(h)  The warehouse concentration region, as defined in Section 65098, shall implement the provisions of this section by January 1, 2026. (i)  The Attorney General may enforce this section.
(1)  The Attorney General may impose a fine against a jurisdiction that is in violation of this section of up to fifty thousand dollars ($50,000) every six months if the required updates have not been made.
(2)  Upon appropriation by the Legislature, any fines collected shall be distributed by the Attorney General and returned to the local air quality management district in which the fine was imposed and be used for the district’s efforts to improve air quality.

SEC. 3. Section 40458.5 is added to the Health and Safety Code, to read:
40458.5. (a)  Subject to an appropriation for this express purpose, the south coast district shall, beginning on January 1, 2026, and until January 1, 2032, deploy mobile air monitoring systems within the Counties of Riverside and San Bernardino to collect air pollution measurements in communities that are near operational logistics use developments. (b)  The south coast district shall use the data collected pursuant to subdivision (a) to conduct an air modeling analysis to evaluate the impact of air pollution on sensitive receptors, as defined in Section 65098 of the Government Code, from logistics use development operations in the Counties of Riverside and San Bernardino, including relative pollution concentrations from logistics use developments at varying distances from sensitive receptors.
(c)  The south coast district shall submit its findings to the Legislature on or before January 1, 2033. On or before January 1, 2028, the south coast district shall submit an interim report to evaluate the impact of air pollution on sensitive receptors, as defined in Section 65098 of the Government Code, from logistics use development operations in the Counties of Riverside and San Bernardino, including relative pollution concentrations from logistics 96 — 13 — Ch. 931

use developments at varying distances from sensitive receptors. This report shall be used to assess the effectiveness of setbacks on public health. (d)  (1)  The requirement for submitting a report imposed pursuant to subdivision (c) is inoperative on January 1, 2040, pursuant to Section 10231.5 of the Government Code.
(2)  A report to be submitted pursuant to subdivision (c) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 4. Section 40522.7 is added to the Health and Safety Code, to read:
40522.7. The south coast district shall establish a process for receiving community input on how any penalties assessed and collected for violations of the Warehouse Indirect Source Rule are spent. The south coast district shall ensure a wide range of community groups are included in the process and that groups represent the geographic areas where there are high numbers of warehouse facilities.

SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.

O
96 Ch. 931 — 14 —

Senate Bill No. 415
CHAPTER 316
An act to amend Sections 65098, 65098.1, 65098.1.5, 65098.2, 65098.2.5, 65098.2.7, 65098.3, 65098.4, 65098.5, 65098.6, and 65302.02 of, and to add Sections 65098.1.6 and 65098.2.8 to, the Government Code, to amend Sections 40458.5 and 40522.7 of the Health and Safety Code, and to add Section 2429.9 to the Vehicle Code, relating to land use. [Approved by Governor October 3, 2025. Filed with Secretary of State October 3, 2025.]
legislative counsel’s digest
SB 415, Reyes. Planning and zoning: logistics use developments: truck routes.

Existing law, beginning January 1, 2026, prescribes various statewide warehouse design and build standards for any proposed new or expanded logistics use developments, as specified, including, among other things, standards for building design and location, parking, truck loading bays, landscaping buffers, entry gates, and signage. Existing law defines various terms, including “21st century warehouse,” and “tier 1 21st century warehouse,” for purposes of those provisions as logistics uses that, among other things, comply with specified building and energy efficiency standards, including requirements related to the availability of conduits and electrical hookups to power climate control equipment at loading bays, as specified.

Existing law, subject to specified exceptions, defines “logistics use” for these purposes to mean a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products.

This bill would clarify that a 21st century warehouse and a tier 1 21st century warehouse are required to comply with those standards as are in effect at the time that the building permit for a development of a 21st century warehouse is issued and make other clarifying changes relating to permissibility of use of conduits and electrical hookups at loading bays at those locations. The bill would revise the definition of “logistics use” and instead define “logistics use development” for these purposes to mean a building that is primarily used as a warehouse for the movement or the storage of cargo, goods, or products that are moved to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products. The bill would make various

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other technical and conforming changes to the provisions governing logistics use development.

Existing law requires a facility operator, before issuance of a certificate of occupancy, to establish and submit for approval by a city, county, or city and county a truck routing plan that, among other things, described the operational characteristics of the use of the facility operator. Existing law requires, by January 1, 2028, a county or city to update its circulation element, as provided, and to provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations, as specified. Existing law authorizes the Attorney General to enforce those provisions concerning the circulation element and to impose a fine against a jurisdiction that is in violation of these provisions, as provided.

This bill would, instead, require that the truck routing plan describe the operational characteristics of the logistics use development and of the logistics use development operator. The bill would require a jurisdiction, except as specified, to adopt a prescribed ordinance, on or before January 1, 2028, including that the ordinance establishes specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and sensitive receptors, as provided. The bill would, instead, require a county or city that is located in a warehouse concentration region to update its circulation element, on or before January 1, 2026, as specified.

On and after January 1, 2028, or January 1, 2030, as specified, the bill would require that all proposed development of a logistics use development be accessible via arterial roads, major thoroughfares, or roads that predominantly serve commercially oriented uses. The bill would authorize the Attorney General to bring an action against a city, county, or city and county that is in violation of these provisions. The bill would make a city, county, or city and county that has been found by a court to be in violation of these provisions subject to a civil penalty of up to $50,000 every 6 months, accrued from the date of the violation until the violation is cured, specified costs, and other relief deemed appropriate by the court. The bill would require a city or county to provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate locations for idling and parking, among other things.

Existing law requires a city, county, or city and county to condition approval of a logistics use development on (1) 2-to-1 replacement of any demolished housing unit that was occupied within the last 10 years, unless the housing unit was declared substandard by a building official, prior to purchase by the developer, and (2) the provision to any displaced tenant with a specified amount if residential dwellings are affected through purchase, as provided.

This bill would establish that nothing in the provisions described above regarding conditions placed upon approval of a logistics use development shall be construed to preclude the applicability of or compliance with other provisions that, among other things, prohibit an affected city or an affected 91 Ch. 316 — 2 —

county, as defined, from approving a development project that will require the demolition of occupied or vacant protected units, as defined, or that is located on a site where protected units were demolished in the previous 5 years, unless specified requirements are satisfied.

Existing law provides for the creation of the South Coast Air Quality Management District in those portions of the Counties of Los Angeles, Orange, Riverside, and San Bernardino included within the area of the South Coast Air Basin, as specified. Existing law requires the district, subject to an appropriation for the express purpose, to deploy mobile air monitoring systems to collect air pollution measurements in communities that are near operational logistics use developments, use the data collected to conduct an air modeling analysis and submit its findings to the Legislature, and establish a process for receiving community input on how specified penalties assessed and collected are spent.

This bill would delete the requirement that the district use the data collected, as described above, to conduct an air modeling analysis and, instead, based upon the amount of appropriated funds, authorize the district to use a combination of new air monitoring data or other measurement data to evaluate pollutant concentrations, as provided. The bill would also make nonsubstantive changes to references to the South Coast Air Quality Management District contained in those provisions.

Existing law creates in the Transportation Agency, the Department of the California Highway Patrol under the control of a civil executive officer known as the Commissioner of the California Highway Patrol. Existing law requires the commissioner to establish a school for the training and education of the members of the California Highway Patrol, and for other employees of the department deemed necessary, in traffic regulation, in the performance of their duties, and in the proper enforcement of codes and laws respecting use of the highways.

This bill would require the department, on or before January 1, 2027, to make specified training on enforcement of laws relating to commercial vehicles, including, but not limited to, truck route enforcement, available to city and county law enforcement agencies, as specified.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1. Section 65098 of the Government Code is amended to read:
65098. As used in this chapter:
(a)  “21st century warehouse” means a logistics use development that meets all of the following:
91 — 3 — Ch. 316

(1)  Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations) that are in effect at the time that the building permit is issued, including, but not limited to, the following requirements related to:
(A)  Photovoltaic system installation and associated battery storage. (B)  Cool roofing.
(C)  Medium- and heavy-duty vehicle charging readiness. (D)  Light-duty electric vehicle charging readiness and installed charging stations.
(2)  Has skylights in at least 1 percent of the roof area, or equivalent LED efficient lighting.
(3)  (A)  Provides conduits and electrical hookups at all loading bays serving cold storage.
(B)  Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay and sufficient power is available.
(4)  Ensures that any heating, ventilation, and air-conditioning is high-efficiency.
(5)  (A)  Ensures that all classes of forklifts used on site, pursuant to State Air Resources Board’s Zero-Emission Forklifts regulation, as drafted, shall be zero-emission by January 1, 2030, to the extent operationally feasible, commercially off-the-shelf available, and adequate power available on site. (B)  (i)  If not operationally feasible, commercially off-the-shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used.
(ii)  Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph.
(6)  (A)  Ensures that equipment used on site utilizing small off-road engines shall be zero-emission, to the extent operationally feasible, commercially off-the-shelf available, and adequate power available on site. (B)  (i)  If not operationally feasible, commercially off-the-shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used.
(ii)  Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph.
(C)  Should any equipment used on site utilizing small off-road engines be contracted out, the logistics use development shall preferentially contract for services utilizing zero-emission small off-road engines. (b)  “Expansion” means the expansion of an existing logistics use development by 20 percent or more of the existing square footage. Office space shall not be included as part of the existing square footage or in the square footage for the 20-percent expansion threshold.
(c)  “Heavy-duty truck” means a class 7 or class 8 truck. As used in this subdivision:
91 Ch. 316 — 4 —

(1)  “Class 7 truck” means a truck with a gross vehicle weight rating of 26,001 to 33,000 pounds.
(2)  “Class 8 truck” means a truck with a gross vehicle weight rating of greater than 33,000 pounds.
(d)  “Logistics use development” means a building that is primarily used as a warehouse for the movement or the storage of cargo, goods, or products that are moved to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products. “Logistics use development” does not include any of the following:
(1)  Facilities where food or household goods are sold directly to consumers and are accessible to the public.
(2)  A building primarily served by rail to move cargo goods or product. (3)  (A)  A Strategic Intermodal Facility.
(B)  For purposes of this subdivision, “Strategic Intermodal Facility” means a project that satisfies all of the following requirements:
(i)  Logistics facilities, including warehousing and transloading facilities, served by rail.
(ii)  Intermodal freight transport services.
(iii)  All facility structures and related rail operations are located within a single site footprint.
(4)  A building that serves a primary agricultural use that is actively operated for a single period of 90 consecutive days or less each year. (e)  “Sensitive receptor” means one or more of the following:
(1)  A residence, including, but not limited to, a private home, apartment, condominium unit, group home, dormitory unit, or retirement home. (2)  A school, including, but not limited to, a preschool, prekindergarten, or school maintaining kindergarten or any of grades 1 to 12, inclusive. (3)  A daycare facility, including, but not limited to, in-home daycare. (4)  (A)  Publicly owned parks, playgrounds, and recreational areas or facilities primarily used by children.
(B)  For purposes of subparagraph (A), the following types of park and recreation areas shall not be considered a sensitive receptor:
(i)  Parks and recreation areas included as a condition of approval for the logistics use development.
(ii)  Land that will be used to ensure the public’s right of access to the sea, or other public access, pursuant to the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code) or McAteer-Petris Act (Title 7.2 (commencing with Section 66600)). (iii)  Land developed at or adjacent to an airport or seaport for the express purpose of creating a buffer area between sensitive receptors and an airport or seaport facility.
(5)  Nursing homes, long-term care facilities, hospices, convalescent facilities, or similar live-in housing.
(6)  Hospitals, as defined in Section 128700 of the Health and Safety Code.
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(f)  “Small off-road engines” means spark-ignition engines rated at or below 19 kilowatts or 25 horsepower or less.
(g)  “Tier 1 21st century warehouse” means a logistics use development that meets all of the following:
(1)  Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations) that are in effect at the time that the building permit is issued, including, but not limited to, the following requirements related to:
(A)  (i)  Photovoltaic system installation and associated battery storage. (ii)  For purposes of the photovoltaic system installation requirement in clause (i), all logistic use square footage should be considered conditioned space.
(B)  Cool roofing.
(C)  Medium- and heavy-duty vehicle charging readiness. (D)  Light-duty electric vehicle charging readiness and installed charging stations.
(2)  Has skylights in at least one percent of the roof area, or equivalent LED efficient lighting.
(3)  Has a microgrid-ready switchgear system capable of supporting distributed energy resources.
(4)  Is advanced smart metering ready.
(5)  Has a minimum of 50 percent of all passenger vehicle parking spaces preinstalled with conduit and all necessary physical infrastructure to support future charging of electric vehicles.
(6)  Has a minimum of 10 percent of all passenger vehicle parking spaces installed with electric vehicle charging stations.
(7)  (A)  Provides conduits and electrical hookups at all loading bays serving cold storage.
(B)  Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay and sufficient power is available.
(8)  Ensures that any heating, ventilation, and air-conditioning is high-efficiency.
(9)  (A)  Ensures that all classes of forklifts used on site, pursuant to State Air Resources Board’s Zero-Emission Forklifts regulation, as drafted, shall be zero-emission by January 1, 2028, to the extent operationally feasible, commercially off-the-shelf available, and adequate power available on site. (B)  (i)  If not operationally feasible, commercially off-the-shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used.
(ii)  Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph.
(10)  (A)  Ensures that equipment used on site utilizing small off-road engines shall be zero-emission, to the extent operationally feasible, commercially off-the-shelf available, and adequate power available on site. 91 Ch. 316 — 6 —

(B)  (i)  If not operationally feasible, commercially off-the-shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used.
(ii)  Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph.
(C)  Should any equipment used on site utilizing small off-road engines be contracted out, the logistics use development shall preferentially contract for services utilizing zero-emission small off-road engines. (h)  “Warehouse concentration region” includes the unincorporated areas within the Counties of Riverside and San Bernardino and the Cities of Chino, Colton, Fontana, Jurupa Valley, Moreno Valley, Ontario, Perris, Rancho Cucamonga, Redlands, Rialto, Riverside, and San Bernardino. (i)  “Logistics park” means a development consisting of multiple buildings containing logistics use developments.

SEC. 2. Section 65098.1 of the Government Code is amended to read:
65098.1. (a)  Commencing January 1, 2026, any proposed new or expanded logistics use development 250,000 square feet or more where the loading bay is within 900 feet of a sensitive receptor that is utilizing a site zoned for industrial use or any site where an application was submitted to the jurisdiction by September 30, 2024, to rezone as industrial and the rezone to industrial was ultimately approved shall comply with all of the following:
(1)  Include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098.
(2)  Orient truck loading bays on the side of the logistics use development that is away from the nearest sensitive receptor, to the extent feasible. (3)  Locate truck loading bays a minimum of 300 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method.
(4)  Have a separate entrance to the logistics use development or logistics park for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial, agricultural, or industrial uses. A separate entrance for heavy-duty trucks may include a driveway with a lane dedicated to heavy-duty trucks and a lane dedicated for other vehicles.
(5)  Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the logistics use development that are directly adjacent to a sensitive receptor property line.
(6)  Comply with buffering and screening to mitigate for light and noise, as described in Section 65098.2.
(b)  Commencing January 1, 2026, except as provided for in subdivision (c), any proposed new or expanded logistics use development that is on land that is not zoned industrial, whether developed or undeveloped, or land that needs to be rezoned, where the loading bay is within 900 feet of a sensitive receptor, shall comply with all of the following:
(1)  If the logistics use development is 250,000 square feet or more it shall include all Tier 1 21st century warehouse design elements described 91 — 7 — Ch. 316

in subdivision (g) of Section 65098. If the logistics use development is less than 250,000 square feet it shall include all 21st century warehouse design elements described in subdivision (a) of Section 65098. (2)  Orient truck loading bays on the side of the logistics use development that is away from the nearest sensitive receptor, to the extent feasible. (3)  Locate truck loading bays a minimum of 500 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method.
(4)  Have a separate entrance to the logistics use development or logistics park for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial, agricultural, or industrial uses. A separate entrance for heavy-duty trucks may include a driveway with a lane dedicated to heavy-duty trucks and a lane dedicated to automobiles.
(5)  Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the logistics use development that are directly adjacent to a sensitive receptor property line.
(6)  Comply with buffering and screening to mitigate for light and noise, as described in Section 65098.2.
(c)  Commencing January 1, 2026, any proposed new or expanded logistics use development that is on land that is not zoned industrial, whether developed or undeveloped, or land that needs to be rezoned, and is located in the warehouse concentration region, shall comply with all of the following:
(1)  If the logistics use development is 250,000 square feet or more it shall include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098. If the logistics use development is less than 250,000 square feet it shall include all 21st century warehouse design elements described in subdivision (a) of Section 65098. (2)  Orient truck loading bays on the side of the logistics use development that is away from the nearest sensitive receptor, to the extent feasible. (3)  Locate truck loading bays a minimum of 500 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method.
(4)  Have a separate entrance to the logistics use development or logistics park for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial, agricultural, or industrial uses. A separate entrance for heavy-duty trucks may include a driveway with a lane dedicated to heavy-duty trucks and a lane dedicated to automobiles.
(5)  Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the logistics use development that are directly adjacent to a sensitive receptor property line.
(6)  Comply with buffering and screening to mitigate for light and noise, as described in Section 65098.2.
91 Ch. 316 — 8 —

(d)  Commencing January 1, 2026, any proposed new or expanded logistics use development less than 250,000 square feet where the loading bay is within 900 feet of a sensitive receptor that is utilizing a site zoned for industrial use or any site where an application was submitted to the jurisdiction by September 30, 2024, to rezone as industrial and the rezone to industrial was ultimately approved shall comply with all of the following:
(1)  Orient truck loading bays on the side of the logistics use development that is away from the nearest sensitive receptor, to the extent feasible. (2)  Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the logistics use development that are directly adjacent to a sensitive receptor property line.
(3)  Comply with buffering and screening to mitigate for light and noise, as described in Section 65098.2.
(4)  Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations) that are in effect at the time that the building permit is issued, including, but not limited to, the following requirements related to:
(A)  Photovoltaic system installation and associated battery storage. (B)  Cool roofing.
(C)  Medium- and heavy-duty vehicle charging readiness. (D)  Light-duty electric vehicle charging readiness and installed charging stations.
(5)  (A)  Provides conduits at loading bays equal to one truck per every loading bay serving cold storage.
(B)  Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay and sufficient power is available.
(6)  Ensures that any heating, ventilation, and air-conditioning is high-efficiency.
(7)  Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses.
(e)  For purposes of this section, “rezone” does not include land that meets both of the following requirements:
(1)  The land is annexed by a jurisdiction through a boundary change. (2)  The zoning in the new jurisdiction is consistent with the zoning assigned by the original jurisdiction.

SEC. 3. Section 65098.1.5 of the Government Code is amended to read:
65098.1.5. (a)  (1)  Notwithstanding any other law, except as provided in Section 65098.1.6, any existing logistics use development in existence as of September 30, 2024, shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a 91 — 9 — Ch. 316

new sensitive receptor is constructed, established, or permitted after the effective date of this chapter.
(2)  Notwithstanding any other law, except as provided in Section 65098.1.6, if by September 30, 2024, a proposed expansion of a logistics use development is in a local entitlement process, then the proposed expansion shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a sensitive receptor is constructed, established, or permitted after the effective date of this chapter.
(3)  Notwithstanding any other law, except as provided in Section 65098.1.6, if by September 30, 2024, a property is currently in a local entitlement process to become a logistics use development, then the proposed logistics use development shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a sensitive receptor is constructed, established, or permitted after the effective date of this chapter.
(b)  (1)  Any proposed new logistics use developments that require the rezoning of land and must undergo a municipal entitlement process shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if the start of the entitlement process for the logistics use development began before any sensitive receptor started its own entitlement or permitting process, unless the proposed sensitive receptor was an existing allowable use according to local zoning regulations. (2)  During a logistics use development’s entitlement process for a new or expanded logistics use development, if a new sensitive receptor is proposed or established within the distances required by paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, then those distance requirements shall not apply to the logistics use development so long as the logistics use development was not already subject to those requirements prior to the new sensitive receptor being proposed or established. (c)  The protection afforded by this section shall remain in effect from the time of the initial application submission through the completion of the entitlement process, including any necessary rezoning actions and through the development period. If no construction activity occurs within five years of entitlement approvals, the protections shall be waived.

SEC. 4. Section 65098.1.6 is added to the Government Code, to read:
65098.1.6. (a)  Notwithstanding any other law, this chapter shall not apply to any logistics use development that was subject to a local entitlement process that began before September 30, 2024.
(b)  Notwithstanding any other law, this chapter shall not apply to a logistics use development that received an approval by a local agency before the date upon which this chapter became effective.
91 Ch. 316 — 10 —

(c)  For purposes of this section, “approval” shall have the same meaning as is set forth in subdivision (a) of Section 15352 of Chapter 3 of Division 6 of Title 14 of the California Code of Regulations.

SEC. 5. Section 65098.2 of the Government Code is amended to read:
65098.2. (a)  Any new logistics use development within 900 feet of a sensitive receptor shall have a buffer as follows:
(1)  If the logistics use development is subject to the requirements of subdivision (a) or (d) of Section 65098.1, the buffer shall be 50 feet in width measured from the property line of all adjacent sensitive receptors that, in accordance with subdivisions (b) and (c), fully screen the logistics use development from the sensitive receptor.
(2)  If the logistics use development is subject to either subdivision (b) or subdivision (c) of Section 65098.1, the buffer shall be 100 feet in width measured from the property line of all adjacent sensitive receptors that, in accordance with subdivisions (b) and (c), fully screen the logistics use development from the sensitive receptor.
(b)  Buffer areas shall include a solid decorative wall, landscaped berm and wall, or landscaped berm 10 feet or more in height, drought tolerant natural ground landscaping with proper irrigation, and solid-screen buffering trees as described in subdivision (c) and may include other hardscape, access, and passenger vehicle parking improvements.
(c)  Trees shall be used as part of a solid-screen buffering treatment and planted in two rows along the length of the property line adjacent to the sensitive receptor. Trees used for this purpose shall be evergreen, drought tolerant, to the extent feasible, composed of species with low biogenic emissions, of a minimum 36-inch box size at planting, and spaced at no greater distance than 40 feet on center. Palm trees shall not be utilized. The buffer area may include any landscaped areas within a public right-of-way or public or private pedestrian walkways.

SEC. 6. Section 65098.2.5 of the Government Code is amended to read:
65098.2.5. The entry gates into the loading truck court for a new or expanded logistics use development shall be positioned after a minimum of 50 feet of total available stacking depth inside the property line. The stacking depth shall be increased by 70 feet for every 20 loading bays beyond 50 loading bays, to the extent feasible.

SEC. 7. Section 65098.2.7 of the Government Code is amended to read:
65098.2.7. (a)  The purpose of this section is to ensure that logistics use developments, beginning January 1, 2026, are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use development to roadways that are suited to handle the associated traffic and that predominantly serve commercial, agricultural, or industrial uses. (b)  (1)  Any new logistics use development shall be sited on roadways that meet the following classifications:
(A)  Arterial roads.
(B)  Collector roads.
(C)  Major thoroughfares.
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(D)  Local roads that predominantly serve commercial, agricultural, or industrial uses.
(2)  For purposes of this chapter, local roads shall be considered to predominantly serve commercial, agricultural, or industrial uses if more than 50 percent of the properties fronting the road within 1,000 feet of the site’s truck entrances and exits are designated for commercial, agricultural, or industrial use according to the local zoning ordinance. (c)  A waiver may be granted where siting on the designated roadways pursuant to subdivision (b) is impractical due to unique geographic, economic, or infrastructure-related reasons. The waiver shall be approved by the city, county, or city and county, provided that the applicant demonstrates all of the following:
(1)  There is no feasible alternative site that exists within the designated roadways.
(2)  A traffic analysis has been completed and submitted to the local approving authority.
(3)  The site is an existing industrial zone or an existing industrial or agricultural zone for an agricultural-related logistics use project. (4)  The proposed site will incorporate mitigations to minimize traffic and environmental impacts on residential areas to the greatest extent feasible.

SEC. 8. Section 65098.2.8 is added to the Government Code, to read:
65098.2.8. (a)  Except as specified in subdivision (b), a jurisdiction that is not in a warehouse concentration region shall adopt an ordinance, on or before January 1, 2028, that shall do all of the following:
(1)  Identify and establish specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and sensitive receptors, as defined in Section 65098.
(2)  Maximize the use of interstate or divided highways as preferred routes for truck routes. The county or city shall also maximize use of arterial roads, major thoroughfares, and local roads that predominantly serve commercial, agricultural, or industrial uses when state or interstate highways are not utilized. Truck routes shall comply with all of the following. (A)  Major or minor collector streets and local roads that predominantly serve commercial, agricultural, or industrial uses shall be used for truck routes only when strictly necessary to reach existing industrial zones. (B)  Trucks shall be routed via transportation arteries that minimize exposure to sensitive receptors.
(C)  On and after January 1, 2028, or January 1, 2030, for a jurisdiction that is subject to subdivision (b), all proposed development of a logistics use development, as defined in subdivision (d) of Section 65098, shall be accessible via arterial roads, major thoroughfares, or local roads that predominantly serve commercial, agricultural, or industrial uses. (i)  The purpose of this section is to ensure that logistics use development are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use developments to roadways that are suited to handle 91 Ch. 316 — 12 —

the associated traffic and that predominantly serve commercial, agricultural, or industrial uses.
(ii)  For purposes of this section, local roads shall be considered to predominantly serve commercial, agricultural, or industrial uses if more than 50 percent of the properties fronting the road within 1,000 feet are designed for commercial, agricultural, or industrial use according to the local zoning ordinance.
(D)  Notwithstanding any other provision in this paragraph, an ordinance may, but is not required to, regulate traffic from a primary agricultural use facility, located in that jurisdiction. For purposes of this subparagraph, a primary agricultural use facility means a logistics use facility that is less than 20,000 square feet, located in an unincorporated area, in which one or more agricultural commodities or forest products is produced, processed, or packaged, and that may include storage of those commodities or products incidental to production, processing, or packaging.
(b)  A jurisdiction that is a city with a population that is equal to, or less than, 50,000 persons or a county with a population that is equal to, or less than, 100,000 persons shall adopt the ordinance required pursuant to subdivision (a) on or before January 1, 2030.
(c)  The city or county may consult with the Department of Transportation and the California Freight Advisory Committee for technical assistance. (d)  The city or county shall provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations.
(e)  The city or county shall make truck routes publicly available in geographic information system (GIS) format and share GIS maps of the truck routes with warehouse operators, fleet operators, and truck drivers. (f)  The city or county shall provide opportunities for the involvement of citizens, California Native American Indian tribes, public agencies, public utility companies, and civic, educational, and other community groups through public hearings and any other means that the planning agency deems appropriate, consistent with Section 65351.
(g)  The city or county shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the changes required pursuant to this section.
(h)  The requirement to adopt an ordinance pursuant to this section shall not apply to a city, county, or city and county that as of January 1, 2025, did not have any logistics use development within its jurisdiction. If any proposed new logistics use development is approved within a jurisdiction after January 1, 2025, a city, county, or city and county shall comply with the requirements in this section within two years after the date of final approval of a logistics use development.
(i)  (1)  An action may be brought by the Attorney General against a city, county, or city and county that is in violation of this section. A city, county, or city and county that has been found by a court to be in violation of this section shall be subject to any of the following:
91 — 13 — Ch. 316

(A)  A civil penalty of up to fifty thousand dollars ($50,000) every six months, accrued from the date of the violation until the violation is cured. (B)  Costs of investigating and prosecuting this action, including expert fees, reasonable attorney’s fees, and costs.
(C)  Other relief deemed appropriate by the court, including equitable and injunctive relief.
(2)  In determining the application of the remedies available under this section, the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with this section. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.
(j)  Civil penalties collected pursuant to this section shall be paid to the office of the Attorney General. Upon appropriation by the Legislature, any civil penalties collected pursuant subdivision (i) shall be distributed by the Attorney General and returned to the local air quality management district in which the civil penalty was imposed for the district’s efforts to improve air quality.

SEC. 9. Section 65098.3 of the Government Code is amended to read:
65098.3. (a)  Anti-idling signs indicating a three-minute heavy-duty truck engine idling restriction shall be posted at logistics use developments along entrances to the site and at the truck loading bays. (b)  Signs shall be installed at all heavy-duty truck exit driveways directing truck drivers to the truck route as indicated in the truck routing plan, as described in Section 65098.4, and to the state highway system.

SEC. 10. Section 65098.4 of the Government Code is amended to read:
65098.4. (a)  Prior to the issuance of a certificate of occupancy, a logistics use development operator shall establish and submit for approval to the planning director or equivalent position for the city, county, or city and county a truck routing plan to and from the state highway system based on the latest truck route map of the city, county, or city and county. The truck routing plan shall describe the operational characteristics of the logistic use and of the logistics use development operator, including, but not limited to, hours of operation, types of items to be stored within the building, and proposed truck routing to and from the logistics use development to designated truck routes that, to the greatest extent possible, avoid passing sensitive receptors. The truck routing plan shall include measures, such as signage and pavement markings, and queuing analysis for preventing truck queuing, circling, stopping, and parking on public streets. The logistics use development operator shall be responsible for communication of the truck routing plan internally and to external parties who may dispatch trucks to the facility.
(b)  A revised truck routing plan shall be submitted to the planning director or equivalent position prior to a business license being issued by the city, county, or city and county for any new tenant of the property. The planning director or equivalent position shall have discretion to determine if changes to the truck routing plan are necessary, including, but not limited to, any 91 Ch. 316 — 14 —

additional measures to alleviate truck routing and parking issues that may arise during the life of the logistics use development. (c)  This section shall not be construed to expand or restrict any authority that the planning director may have pursuant to any local ordinance or regulation to regulate hours of operation.

SEC. 11. Section 65098.5 of the Government Code is amended to read:
65098.5. (a)  A city, county, or city and county shall not approve development of a logistics use development that does not meet or exceed the standards outlined in this chapter.
(b)  A city, county, or city and county shall not adopt or enforce any ordinance, standard, rule, or regulation to the extent that the ordinance, standard, rule, or regulation would prohibit or have the effect of physically precluding any physical feature of a logistics use development that is required by paragraphs (1) to (4), inclusive, of subdivision (a) of Section 65098, paragraphs (1) to (7), inclusive, of subdivision (g) of Section 65098, paragraphs (1), (4), and (6) of subdivision (a) of Section 65098.1, paragraphs (1), (4), and (6) of subdivision (b) of Section 65098.1, paragraphs (1), (4), and (6) of subdivision (c) of Section 65098.1, paragraphs (3) to (5), inclusive, and paragraph (7) of subdivision (d) of Section 65098.1, Section 65098.2, or Section 65098.2.5.
(c)  This section shall not be construed to restrict the existing authority of a city, county, or city and county to do either of the following:
(1)  Deny a logistics use development altogether.
(2)  Adopt or enforce an ordinance, standard, rule, or regulation that prohibits or has the effect of physically precluding a new logistics use development or the expansion of a logistics use development on any parcel.

SEC. 12. Section 65098.6 of the Government Code is amended to read:
65098.6. A city, county, or city and county shall condition approval of a logistics use development on the following:
(a)  Two-to-one replacement of any demolished housing unit that was occupied within the last 10 years, unless the housing unit was declared substandard by a building official, pursuant to Section 17920.3 of the Health and Safety Code, prior to purchase by the developer. For each housing unit demolished, regardless of market value of the unit, two units of affordable housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that are deed-restricted shall be built within the jurisdiction. Funds from any fee imposed for the replacement of demolished housing units shall be placed in a housing-specific set-aside account and shall be used for housing within three years of collection.
(b)  If residential dwellings are affected through purchase, the developer shall be required to provide any displaced tenant with an amount equivalent to 12 months’ rent at the current rate.
(c)  Nothing in this section shall be construed to limit or preclude the applicability of Article 2 (commencing with Section 66300.5) of Chapter 12 to logistics uses. A logistics use that is subject to Article 2 (commencing with Section 66300.5) of Chapter 12 shall first comply with that article. 91 — 15 — Ch. 316

Any additional replacement housing obligations or payments to displaced tenants that are not required pursuant to that article shall comply with this section.

SEC. 13. Section 65302.02 of the Government Code is amended to read:
65302.02. (a)  A county or city that is located in a warehouse concentration region, as defined in Section 65098, shall update its circulation element, as required by subdivision (b) of Section 65302, to do all of the following on or before January 1, 2026:
(1)  Identify and establish specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and sensitive receptors, as defined by Section 65098.
(2)  Maximize the use of interstate or state divided highways as preferred routes for truck routes. The county or city shall also maximize use of arterial roads, major thoroughfares, and local roads that predominantly serve commercial, agricultural, or industrial uses when state or interstate highways are not utilized. Truck routes shall comply with the following:
(A)  Major or minor collector streets and local roads that predominantly serve commercial, agricultural, or industrial uses shall be used for truck routes only when strictly necessary to reach existing industrial zones. (B)  Trucks shall be routed via transportation arteries that minimize exposure to sensitive receptors.
(b)  On and after January 1, 2028, all proposed development of a logistics use development, as defined in subdivision (d) of Section 65098, shall be accessible via arterial roads, major thoroughfares, or local roads that predominantly serve commercial, agricultural, or industrial uses. (c)  The purpose of this section is to ensure that logistics use developments are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use developments to roadways that are suited to handle the associated traffic and that predominantly serve commercial, agricultural, or industrial uses.
(d)  For purposes of this section, local roads shall be considered to predominantly serve commercial, agricultural, or industrial uses if more than 50 percent of the properties fronting the road within 1,000 feet of the truck entrances and exits are designated for commercial, agricultural, or industrial use according to the local zoning ordinance. (e)  The county or city may consult with the Department of Transportation and the California Freight Advisory Committee for technical assistance. (f)  The county or city shall provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate locations for idling and parking.
(g)  The county or city shall make truck routes publicly available in geographic information system (GIS) format and share GIS maps of the truck routes with warehouse operators, fleet operators, and truck drivers. (h)  The city or county shall provide opportunities for the involvement of citizens, California Native American Indian tribes, public agencies, public 91 Ch. 316 — 16 —

utility companies, and civic, educational, and other community groups through public hearings and any other means the planning agency deems appropriate, consistent with Section 65351.
(i)  The city or county shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the changes required pursuant to this section.
(j)  (1)  An action may be brought by the Attorney General against a jurisdiction that is in violation of this section. A city, county, or city and county found by a court to be in violation of this section shall be subject to any of the following:
(A)   A civil penalty of up to fifty thousand dollars ($50,000) every six months, accrued from the date of the violation until the violation is cured. (B)  All costs of investigating and prosecuting this action, including expert fees, reasonable attorney’s fees, and costs.
(C)  Other relief deemed appropriate by the court, including equitable and injunctive relief.
(2)  In determining the application of the remedies available pursuant to this section, the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with this section. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardship.
(k)  Civil penalties collected pursuant to this section shall be paid to the office of the Attorney General. Upon appropriation by the Legislature, any civil penalties collected pursuant to subdivision (j), shall be distributed by the Attorney General and returned to the local air quality management district in which the civil penalty was imposed for the district’s efforts to improve air quality.

SEC. 14. Section 40458.5 of the Health and Safety Code is amended to read:
40458.5. (a)  Subject to an appropriation for this express purpose, the South Coast Air Quality Management District shall, beginning on January 1, 2026, and until January 1, 2032, deploy mobile air monitoring systems within the Counties of Riverside and San Bernardino to collect air pollution measurements in communities that are near operational logistics use developments.
(b)  Based on the amount of appropriated funds, the district may use a combination of new air monitoring data or other measurement data to evaluate pollutant concentrations at varying distances away from new logistics use projects.
(c)  The South Coast Air Quality Management District shall submit its findings to the Legislature on or before January 1, 2033. On or before January 1, 2028, the South Coast Air Quality Management District shall submit an interim report to evaluate the impact of air pollution on sensitive receptors, as defined in Section 65098 of the Government Code, from logistics use development operations in the Counties of Riverside and San Bernardino, including relative pollution concentrations from logistics use 91 — 17 — Ch. 316

developments at varying distances from sensitive receptors. This report shall be used to assess the effectiveness of setbacks on public health. (d)  (1)  The requirement for submitting a report imposed pursuant to subdivision (c) is inoperative on January 1, 2040, pursuant to Section 10231.5 of the Government Code.
(2)  A report to be submitted pursuant to subdivision (c) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 15. Section 40522.7 of the Health and Safety Code is amended to read:
40522.7. The South Coast Air Quality Management District shall establish a process for receiving community input on how any penalties assessed and collected for violations of the Warehouse Indirect Source Rule are spent. The South Coast Air Quality Management District shall ensure a wide range of community groups are included in the process and that groups represent the geographic areas where there are high numbers of warehouse facilities.

SEC. 16. Section 2429.9 is added to the Vehicle Code, immediately following Section 2429.7, to read:
2429.9. (a)  On or before January 1, 2027, the Department of the California Highway Patrol shall make the following available to city and county law enforcement agencies subject to this section:
(1)  At no charge, training on enforcement of laws related to commercial vehicles, as defined in Section 260 of the California Vehicle Code, including, but not limited to, truck route enforcement.
(2)  Course completion certificates for city and county law enforcement personnel who have completed the training described in paragraph (1). (b)  All jurisdictions that are required to update a circulation element or to adopt an ordinance pursuant to Section 65098.1 of the Government Code shall have at least one enforcement officer that has received a completion certificate pursuant to paragraph (2) of subdivision (a) by the date upon which that circulation element is updated or ordinance is adopted. (c)  Nothing in this section shall be construed to require the department to provide training for which it has not received funding or to require a jurisdiction to have an enforcement officer that has received a course completion certificate if the department has not made the training described in subdivision (a) available to law enforcement personnel at no charge.

SEC. 17. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.

O
91 Ch. 316 — 18 —

AB 98
Implementation
Guidance for Local Agencies
Prepared for:

Western Riverside Council of Governments &
San Bernardino County Transportation Authority
Submitted on:

September 10, 2025

P
Table of Contents
Development Standards................................................................................................................. 1 AB 98 Zoning Regulation Guidance...................................................................................................................... 1 Truck Route Requirements........................................................................................................... 3 General Plan Mobility/Circulation Element ........................................................................................................5 Truck Route Analysis & Identification ..........................................................................................................5 Appendices
Appendix A. AB 98 ......................................................................................................................................................... 10 Appendix B. Southern California Association of Governments Geotab Technical Guidance.................. 25 Appendix C. Municipal Code Guidance ..................................................................................................................34 List of Tables
Table 1. Roadway Characteristics (Example) ............................................................................................................9 Table 2. Land Use and Active Transportation Characteristics (Example)........................................................9 Table 3. Geotab Analysis Modules.........................................................................Error! Bookmark not defined.

AB 98 Implementation Guidance| 1
AB 98 Overview
Assembly Bill 98 – Warehouse Standards (AB 98, 2024) legislation is intended to focus on three key components of warehouse developments – (1) warehouse development standards, such as locating loading areas and other truck-serving components away from sensitive receptors, (2) requirement for local agencies to update their circulation elements to incorporate a truck route map, that also needs to be available in a GIS format, identifying truck routes and locating them away from sensitive receptors, and (3) a requirement that, if a warehouse development displaces housing that the housing be replaced under specific requirements. Although all agencies must update their circulation elements before January 1, 2028, agencies within a defined “warehouse concentration region” must update their circulation elements by January 1, 2026, which leaves a very short timeframe for complying with the legislative requirements.

An overview of the legislative requirements is described in detail below:

Development Standards
AB 98 prescribes various statewide warehouse design and build standards that go into effect on January 1, 2026. The legislation applies to any proposed new or expanded “logistics use” development, defined as:
“a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products. “Logistics use” does not include any of the following:
(1) Facilities where food or household goods are sold directly to consumers and are accessible to the public.
(2) A building primarily served by rail to move cargo goods or product. (3) (A) A Strategic Intermodal Facility.
(B) For purposes of this subdivision, “Strategic Intermodal Facility” means a project that satisfies all of the following requirements:
(i) Logistics facilities, including warehousing and transloading facilities, served by rail. (ii) Intermodal freight transport services.
(iii) All facility structures and related rail operations are located within a single site footprint.” The law specifies standards for building and site design that go above and beyond the California Green Building Code. AB 98 in its entirety is provided as Appendix A.

AB 98 Zoning Regulation Guidance
The following is a brief list of “things to know” about AB 98 ahead of updating a jurisdiction’s zoning regulations.

AB 98 Implementation Guidance| 2
• AB 98 provides crucial definitions for “logistics uses” and “sensitive receptors.” • AB 98 uses the threshold of 250,000 square feet to regulate logistics uses (i.e., logistics uses under and over 250,000 square feet are regulated differently). • AB 98 is expected to be amended through subsequent legislation to clean up some of the ambiguous requirements, but that legislation is not anticipated to be adopted until late 2025. • Special zoning regulations apply to jurisdictions within the “warehouse concentration region” defined by the legislation as follows:
o Unincorporated Riverside County
o Unincorporated San Bernardino County
o City of Chino
o City of Colton
o City of Fontana
o City of Jurupa Valley
o City of Moreno Valley
o City of Ontario
o City of Perris
o City of Rancho Cucamonga
o City of Redlands
o City of Rialto
o City of Riverside
o City of San Bernardino
• AB 98 only applies to logistic uses that have sensitive receptors within 900 feet of the loading bay.
• AB 98 does not apply to logistics use developments that are mixed-use developments that may create sensitive receptors on the site of the new logistics use development. • AB 98 zoning regulations applies to all jurisdictions beginning January 1, 2026.

The following information provides an overview of key updates that local agencies should make to their municipal codes. Please note, a detailed checklist and sample illustrations are provided as Appendix B and are intended to provide guidance to local agencies to ensure compliance and consistency with the design standards requirements of AB 98.

Definitions
AB 98 provides definitions that should be incorporated into local zoning codes either by adding the definition or referencing the definition contained in California Government Code §65098(d). If the definition is added directly to the code, it is recommended that additional language state that Government Code supersedes the zoning code to avoid potential conflicts should subsequent legislation change the definition.

Conflict and Implementation Checklist
AB 98 uses different square footages for regulating logistics uses, whereby logistics uses larger than 250,000 square feet are regulated differently. Local zoning codes that use square footage thresholds

AB 98 Implementation Guidance| 3
other than 250,000 square feet will conflict with AB 98 standards. As such, it is recommended to remove any square footage threshold that is not consistent with the State’s defined 250,000 square feet threshold to ensure consistency with AB 98 requirements.

California Government Code §65098.6 requires a two-for-one replacement for any demolished residential housing unit that occurs to construct a logistics use. It also includes a requirement for relocation assistance to displaced residents. As such, local jurisdictions must amend their zoning codes to add these housing requirements or reference the noted Government Code.

Setbacks for truck loading “bays” are specifically defined in in AB 98. As such, a local agency’s zoning code may require the addition of a definition for Truck Loading Bay which is different than a Loading Dock. A loading bay refers to any space on a site where goods are loaded to/from a truck. A parking space on the edge of the site used for this purpose would be required to conform with the setback standards of 300-500 feet from sensitive receptors as defined in the legislation.

New buffer requirements for facilities that are planned within 900 feet of a sensitive receptor is now required per AB 98. The setback ranges from 50 to 100 feet. Planned facilities in the Warehouse Concentration Region require 100-foot buffers, as do sites over 250,000 square feet proposed on a site that is not zoned industrial. Local agencies should understand these nuances and incorporate the requirements into their zoning codes.

Truck Route Requirements
The AB 98 truck route requirements described herein have been codified in Section 65098.2.7 and Section 65302.02. Excerpts from the legislation relevant to the implementation guidance provided in this document are provided below.
65098.2.7.
(a) The purpose of this section is to ensure that logistics use developments, beginning January 1, 2026, are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use development to roadways that are suited to handle the associated traffic and that predominantly serve commercial uses.
(b) (1) Any new logistics use development shall be sited on roadways that meet the following classifications:
(A) Arterial roads.
(B) Collector roads.
(C) Major thoroughfares.
(D) Local roads that predominantly serve commercial uses. (2) For purposes of this chapter, local roads shall be considered to predominantly serve commercial uses if more than 50 percent of the properties fronting the road within 1,000 feet are designed for commercial or industrial use according to the local zoning ordinance.

AB 98 Implementation Guidance| 4
(c) A waiver may be granted where siting on the designated roadways pursuant to subdivision (b) is impractical due to unique geographic, economic, or infrastructure-related reasons. The waiver shall be approved by the city, county, or city and county, provided that the applicant demonstrates all of the following:
(1) There is no feasible alternative site that exists within the designated roadways. (2) A traffic analysis has been completed and submitted to the local approving authority. (3) The site is an existing industrial zone.
(4) The proposed site will incorporate mitigations to minimize traffic and environmental impacts on residential areas to the greatest extent feasible. 65098.3.
(a) Anti-idling signs indicating a three-minute heavy-duty truck engine idling restriction shall be posted at logistics use developments along entrances to the site and at the truck loading bays.
(b) Signs shall be installed at all heavy-duty truck exit driveways directing truck drivers to the truck route as indicated in the truck routing plan, as described in Section 65098.4, and in the state highway system.
65302.02.

Pursuant to Section 65302, jurisdictions within the Warehouse Concentration Region must comply with the following by January 1, 2026, and all other agencies must comply by January 1, 2028:
(a) Identify and establish specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and sensitive receptors, as defined by Section 65098. (b) Maximize the use of interstate or state divided highways as preferred routes for truck routes. The county or city shall also maximize use of arterial roads, major thoroughfares, and predominantly commercially oriented local streets when state or interstate highways are not utilized. Truck routes shall comply with the following:
(1) Major or minor collector streets and roads that predominantly serve commercially oriented uses shall be used for truck routes only when strictly necessary to reach existing industrial zones.
(2) Trucks shall be routed via transportation arteries that minimize exposure to sensitive receptors.
(d) The county or city shall provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations. (e) The county or city shall make truck routes publicly available in geographic information system (GIS) format and share GIS maps of the truck routes with warehouse operators, fleet operators, and truck drivers.

AB 98 Implementation Guidance| 5
General Plan Mobility/Circulation Element
The following section provides guidance on how to evaluate, identify, and incorporate AB 98- compliant truck routes into general plan circulation elements by the AB 98 implementation deadline.

Truck Route Analysis & Identification
The United States Department of Transportation (USDOT) established truck size and weight standards pursuant to the 1982 Surface Transportation Assistance Act (STAA). The California Motor Vehicle Code also contains size and weight standards for “California Legal” trucks. STAA trucks are slightly longer and require more turning radius than California Legal trucks. In California, STAA routes must be approved by Caltrans, appropriately signed, and are strictly enforced. From a lay-person’s perspective, there is little difference between the two truck types. They are both seen as “big rigs”.

Most of the trucks that are the focus of AB 98 are California Legal trucks, which are permitted on all roadways unless expressly prohibited by state or local regulations. AB 98 aims to limit where all heavy-duty trucks, including California Legal trucks, travel by requiring local agencies to designate, post signage, and enforce truck routes on local roadways.

The first step in designating truck routes is understanding where trucks are traveling in local communities, and why. The next step is to consider future land use and zoning that may require truck access. And the final step is to identify and implement the most direct, yet least impactful, local truck routes. If changes to the General Plan are necessary to reflect revised or new truck routes, a General Plan amendment will be required, which will trigger the California Environmental Quality Act (CEQA).

The following steps are recommended for updating or establishing local truck routes.

STEP 1: CONFIRM EXISTING TRUCK ROUTES (IF NO TRUCK ROUTES EXISTS, SKIP TO STEPS 3 AND 4)
This first step entails reviewing the general plan and/or researching local ordinances to identify existing truck routes. If the truck routes are contained in the General Plan, the jurisdiction need only confirm that the truck routes meet the AB 98 requirements (see Step 5). If the general plan does not contain designated truck routes, but truck routes were previously adopted by ordinance, a general plan amendment will be required to incorporate the truck routes, but the CEQA process may be more streamlined. For jurisdictions that do not have designated truck routes either in the general plan or by ordinance, a CEQA impact analysis may be required. It is recommended that local agencies consult the CEQA approach with a CEQA practitioner, CEQA legal counsel, and/or the agency’s attorney (City Attorney/County Council (or similar)).

STEP 2: LAND USE ANALYSIS
This step entails a review of existing land uses to determine where truck-served uses are located, what roads provide direct access to those facilities, and the proximity of sensitive receptors to roads used to access truck-served facilities. The general plan land use map is a good place to start, particularly if its availably in GIS and can be overlayed with existing truck routes (if designated), but in addition, some land uses defined as sensitive receptors by AB 98 occur in commercial districts, such as daycare facilities. These also need to be considered in the truck routing decision-making process.

AB 98 Implementation Guidance| 6
STEP 3: ROADWAY CLASSIFICATIONS OF EXISTING TRUCK ROUTES A GIS map has been developed for SBCTA and WRCOG member agencies that compiles and documents existing truck routes in the SBCTA and WRCOG jurisdictional areas and can be accessed at:
https://fehrandpeers.maps.arcgis.com/apps/mapviewer/index.html?webmap=3182123c01ec4416ab84 a99856aaccc6
In addition, the Caltrans Local Truck Routes web page provided the starting point for this GIS mapping effort:
https://dot.ca.gov/programs/traffic-operations/legal-truck-access/local-truck-routes.

Some of the information, particularly on the Caltrans’ local truck routes webpage, is outdated. Local jurisdictions are encouraged to review the truck route data posted on the site and provide Caltrans with any necessary updates. Routes shown on the webpage were compared to current general plans and ordinances for each agency (as found on city websites) and incorporated into the WRCOG/SBCTA GIS truck route map.

AB 98 references roadway classifications. It is our understanding that the classifications refer to Caltrans road functional classifications, rather than general plan roadway classifications. For this reason, the WRCOG/SBCTA GIS truck route layer includes both local agency and Caltrans functional classifications. Where the classifications are the same, the map shows the truck route in blue. Where the classifications contrast, the truck route is shown in red. For local agency truck routes that are located on roadways with a local classification of arterial but Caltrans classification of collector or local, it is recommended that agencies initiate reclassification with Caltrans (see Step 4).

STEP 4: RECLASSIFICATION OF ROADWAYS
The Federal Highway Administration (FHWA) identifies functional classification as a key criterion for identifying where to invest federal funds with priority given to arterials at the local level. Caltrans, in coordination with FHWA, has a process for local agencies to request reclassification of local roadways. The FHWA designation is based on existing lane miles and average annual daily traffic (AADT) volumes. This differs from local general plan roadway classifications. At the local level, general plans consider future land use and traffic projections. For this reason, roadway classifications at the local and federal levels may differ for a time until development occurs, traffic volumes increase, and a request for reclassification is approved.

AB 98 requires that a county or city …”shall maximize interstate or state divided highways as preferred routes for truck routes. The county or city shall also maximize use of arterial roads…” For local agencies that have designated truck routes on locally designated arterials, and Caltrans shows it as a collector or local road, it is recommended that the city or county submit a request to Caltrans to reclassify the road by visiting the Caltrans Functional Classification webpage at:
https://dot.ca.gov/programs/research-innovation-system-information/office-of-highway-systeminformation-performance/functional-classification STEP 5: ALTERING OR CREATING A NEW TRUCK ROUTE
The next step in this process is to understand where trucks are traveling and if they are using designated truck routes or not. It is also important to understand how trucks travel throughout the

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region so that neighboring jurisdictions can work together to identify preferred truck routes. For this exercise, Fehr & Peers utilized Geotab data collected from telematics devices in freight vehicles that monitor vehicle speeds, near-misses, hard-braking occurrences, etc. for the primary purpose of contacting emergency responders when a crash is detected. Unlike modeled datasets, Geotab is based on observed data to show where, when, and how freight moves through a roadway network both locally and regionally. Since Geotab only purchases data from manufacturers of heavy-duty trucks, it is a sample of the overall vehicle fleet, typically encapsulating between one and twenty-five percent of the total truck fleet operating on a roadway. Using Geotab data for a 60-day period (May and June 2024), two different dashboards were created, one for San Bernardino County and one for Riverside County. Links to the two dashboards are provided below:

San Bernardino County:
https://www.arcgis.com/apps/dashboards/8120f0262a914c589f50fb0b81dbffde Riverside County:
https://fehrandpeers.maps.arcgis.com/apps/dashboards/58a241e8e29f4e1695f91959893fd7c3 The intent of this data is two-fold: (1) to confirm that trucks are currently utilizing designated truck routes, and (2) to identify how trucks are operating on non-truck routes. The latter is useful for investigating changes to existing truck routes or adding new truck routes.

Once a jurisdiction has reviewed the Geotab data, if changes to the truck route network are needed, Geotab can be used to assist with identifying where to collect traffic counts. For example, if a city currently has a designated truck route that is on a roadway fronted primarily by homes, schools, and other sensitive receptors, the truck route is shown in Geotab as red (carrying a significant amount of truck traffic). If there is a parallel route with fewer sensitive receptors that the city would like to use instead, the city should collect traffic counts on the existing and the proposed truck route. These counts will assist the city with analyzing potential effects of the truck route change, such as noise, vibration, air quality, and safety benefits to residents along the existing route, and potential impacts created by shifting trucks to the proposed route.

In addition to the environmental impacts identified above, the design and structural section of the roadways should also be considered. Heavy-duty trucks have a maximum weight limit of 80,000 pounds (40 tons). Truck routes should be designed to support this much heavier weight. In addition, California Legal trucks require a turning radius of 50 feet. Intersecting truck routes should be designed to accommodate this.

STEP 6:

The sixth and final step is preparing a matrix that combines the information gathered in the prior steps.

1. Locations of existing truck routes (if applicable) within and adjacent to the jurisdiction

2. General plan and Caltrans functional classifications of designated truck routes

3. Truck utilization of existing and/or proposed truck routes

4. Truck classification counts: it is recommended that counts be collected if:
a. Existing truck routes operate on routes fronted by more than 50% sensitive uses b. Existing truck routes are being eliminated resulting in a potential shift of truck traffic to parallel roadways
c. New truck routes are being proposed

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5. Designated truck route roadway design standards should be updatedto accommodate heavyduty trucks For jurisdictions that have designated truck routes and can substantiate that the routes comply with AB 98, it is recommended that they document the following findings:

1. Truck routes are designated on arterials;

2. Designated truck routes provide the most direct access to truck-generating land uses;

3. Designated truck routes avoid sensitive receptors to the greatest extent feasible; and,

4. Trucks are utilizing the designated truck routes and avoiding use of non-truck routes.

Tables 1 and 2 below provide examples for collecting and analyzing information to assist with confirming, changing, or creating new truck routes.

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Table 1. Roadway Characteristics (Example)
Truck Route
Segment
GP
Functional
Classification
Caltrans
Functional
Classification
Distance to
State Highway
or Interstate
Connects to
Truck Route in
Adjacent
Jurisdiction
Pavement
designed for
trucks
Turning
radius of
intersecting
truck route
Truck
Volumes
GP
Functional
Classificati
on
Main St from A to
B Arterial Collector 0.5 miles Yes Yes 50 feet 1,200 Arterial Table 2. Land Use and Active Transportation Characteristics (Example) Truck Route
Segment
Percentage of
Sensitive
Receptors
fronting segment
Provides direct
access to truckgenerating land
uses
Fronted by or only
access to
Logistics Use
Class II
Bike
Lane
Bicycle
Volumes
Transit
Corridor
with stops
Sidewalks Pedestrian
Volumes
Main St from A to
B 30% Yes Yes No 0 No Yes 10

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Appendix A. AB 98

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Assembly Bill No. 981
CHAPTER 931
An act to add Section 65302.02 to, and to add Chapter 2.8 (commencing with Section 65098) to Division 1 of Title 7 of, the Government Code, and to add Sections 40458.5 and 40522.7 to the Health and Safety Code, relating to land use.
[ Approved by Governor September 29, 2024. Filed with Secretary of State September 29, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST
AB 98, Juan Carrillo. Planning and zoning: logistics use: truck routes. (1) Existing law, the Planning and Zoning Law, sets forth various requirements relating to the review of development project permit applications and the issuance of development permits for specified classes of development projects.

This bill, beginning January 1, 2026, would prescribe various statewide warehouse design and build standards for any proposed new or expanded logistics use developments, as specified, including, among other things, standards for building design and location, parking, truck loading bays, landscaping buffers, entry gates, and signage. The bill would except from those design and build standards certain existing logistics use developments, proposed expansions of a logistics use development, and property currently in a local entitlement process to become a logistics use, under prescribed conditions. The bill would require a facility operator, prior to the issuance of a certificate of occupancy, to establish and submit for approval by a city, county, or city and county a truck routing plan to and from the state highway system based on the latest truck route map of the city, county, or city and county, as prescribed. The bill would require a facility operator to enforce the plan.

The bill would provide for the revision of the plan in specified circumstances.

The bill would prohibit a city, county, or city and county from approving development of a logistics use that does not meet or exceed the standards outlined in the bill. The bill would require a city, county, or city and county to condition approval of a logistics use on 2-to-1 replacement of any demolished housing unit that was occupied within the last 10 years unless the housing unit was declared substandard by a building official, as specified, and payments to displaced tenants if residential dwellings are affected through purchase, as prescribed. The bill would define terms for these purposes.
(2) The Planning and Zoning Law requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city and specified land outside its boundaries that includes, among other specified mandatory elements, a circulation element consisting of the general location and extent of existing and proposed major thoroughfares, transportation routes, terminals, any military airports and ports, and other local public utilities and facilities, all correlated with the land use element of the plan. Existing law requires, upon 1 Assembly Bill 98 accessed online on September 4, 2025 at:
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB98

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any substantive revision of the circulation element, that the legislative body modify the element to address specified additional issues.

This bill would require a county or city, by January 1, 2028, except as provided, to update its circulation element, as prescribed, including identifying and establishing specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and concentrations of sensitive receptors, as defined. The bill would establish specific standards for truck routes. The bill would require a county or city to provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations. The bill would require a county or city to make truck routes publicly available and share maps of the truck routes with warehouse operators, fleet operators, and truck drivers. The bill would authorize the Attorney General to enforce these provisions, as provided, including by imposition of a fine of up to $50,000 every 6 months if the required updates have not been made.
(3) Existing law provides for the creation of the South Coast Air Quality Management District in those portions of the Counties of Los Angeles, Orange, Riverside, and San Bernardino included within the area of the South Coast Air Basin, as specified. Existing law provides that the south coast district is governed by a board consisting of 13 members and requires the district to adopt rules and regulations to carry out the south coast district air quality management plan that are not in conflict with state and federal laws and rules and regulations.

This bill would require the south coast district to establish a process for receiving community input on how any penalties assessed and collected for violation of the Warehouse Indirect Source Rule are spent, as specified. The bill would require the south coast district, subject to an appropriation for this express purpose, to, beginning on January 1, 2026, and until January 1, 2032, deploy mobile air monitoring systems within the Counties of Riverside and San Bernardino to collect air pollution measurements in communities that are near operational logistics use developments. The bill would require the south coast district to use the data collected to conduct an air modeling analysis to evaluate the impact of air pollution on sensitive receptors from logistics use development operations and to submit its findings to the Legislature on or before January 1, 2033. The bill would also require the district to submit an interim report to the Legislature on or before January 1, 2028, to evaluate the impact of air pollution on sensitive receptors, as defined, from logistics use development operations in the Counties of Riverside and San Bernardino, as provided. (4) By modifying the duties of local agencies with regard to the approval of logistics use development and requiring the revision of the circulation element of a general plan, the bill would impose a state-mandated local program.
(5) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Digest Key

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Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text
The people of the State of California do enact as follows:

SECTION 1.

Chapter 2.8 (commencing with Section 65098) is added to Division 1 of Title 7 of the Government Code, to read:

CHAPTER 2.8. Warehouse Design and Build Standards
65098.

As used in this chapter:
(a) “21st century warehouse” means a logistics use that meets all of the following:
(1) Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations), including, but not limited to, the following requirements related to:
(A) Photovoltaic system installation and associated battery storage. (B) Cool roofing.
(C) Medium- and heavy-duty vehicle charging readiness.
(D) Light-duty electric vehicle charging readiness and installed charging stations. (2) Has skylights in at least 1 percent of the roof area, or equivalent LED efficient lighting. (3) Provides conduits and electrical hookups at all loading bays serving cold storage. Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay.
(4) Ensures that any heating, ventilation, and air-conditioning is high-efficiency. (5) (A) Ensures that all classes of forklifts used on site, pursuant to State Air Resources Board’s ZeroEmission Forklifts regulation, as drafted, shall be zero-emission by January 1, 2030, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. (B) (i) If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. (ii) Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph.

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(6) (A) Ensures that equipment used on site utilizing small off-road engines shall be zero-emission, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site.
(B) (i) If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. (ii) Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph. (C) Should any equipment used on site utilizing small off-road engines be contracted out, the logistics use facility shall preferentially contract for services utilizing zero-emission small off-road engines.
(b) “Expansion of an existing logistics use” means the expansion of an existing logistics use by 20 percent or more of the existing square footage. Office space shall not be included as part of the existing square footage or in the square footage for the 20-percent expansion threshold. (c) “Heavy-duty truck” means a class 7 or class 8 truck. As used in this subdivision:
(1) “Class 7 truck” means a truck with a gross vehicle weight rating of 26,001 to 33,000 pounds. (2) “Class 8 truck” means a truck with a gross vehicle weight rating of greater than 33,000 pounds. (d) “Logistics use” means a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products. “Logistics use” does not include any of the following:
(1) Facilities where food or household goods are sold directly to consumers and are accessible to the public.
(2) A building primarily served by rail to move cargo goods or product. (3) (A) A Strategic Intermodal Facility.
(B) For purposes of this subdivision, “Strategic Intermodal Facility” means a project that satisfies all of the following requirements:
(i) Logistics facilities, including warehousing and transloading facilities, served by rail. (ii) Intermodal freight transport services.
(iii) All facility structures and related rail operations are located within a single site footprint. (e) “Sensitive receptor” means one or more of the following:
(1) A residence, including, but not limited to, a private home, apartment, condominium unit, group home, dormitory unit, or retirement home.
(2) A school, including, but not limited to, a preschool, prekindergarten, or school maintaining kindergarten or any of grades 1 to 12, inclusive.
(3) A daycare facility, including, but not limited to, in-home daycare.

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(4) Publicly owned parks, playgrounds, and recreational areas or facilities primarily used by children, unless the development of the park and recreation areas are included as a condition of approval for the development of a logistics use.
(5) Nursing homes, long-term care facilities, hospices, convalescent facilities, or similar live-in housing.
(6) Hospitals, as defined in Section 128700 of the Health and Safety Code. (f) “Small off-road engines” means spark-ignition engines rated at or below 19 kilowatts. (g) “Tier 1 21st century warehouse” means a logistics use that meets all of the following:
(1) Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations), including, but not limited to, the following requirements related to:
(A) (i) Photovoltaic system installation and associated battery storage. (ii) For purposes of the photovoltaic system installation requirement in clause (i), all warehouse square footage should be considered conditioned space.
(B) Cool roofing.
(C) Medium- and heavy-duty vehicle charging readiness.
(D) Light-duty electric vehicle charging readiness and installed charging stations. (2) Has skylights in at least one percent of the roof area, or equivalent LED efficient lighting. (3) Has a microgrid-ready switchgear system capable of supporting distributed energy resources. (4) Is advanced smart metering ready.
(5) Has a minimum of 50 percent of all passenger vehicle parking spaces preinstalled with conduit and all necessary physical infrastructure to support future charging of electric vehicles. (6) Has a minimum of 10 percent of all passenger vehicle parking spaces installed with electric vehicle charging stations.
(7) Provides conduits and electrical hookups at all loading bays serving cold storage. Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay.
(8) Ensures that any heating, ventilation, and air-conditioning is high-efficiency. (9) (A) Ensures that all classes of forklifts used on site, pursuant to State Air Resources Board’s ZeroEmission Forklifts regulation, as drafted, shall be zero-emission by January 1, 2028, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. (B) (i) If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used.

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(ii) Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph. (10) (A) Ensures that equipment used on site utilizing small off-road engines shall be zero-emission, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site.
(B) (i) If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. (ii) Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph. (C) Should any equipment used on site utilizing small off-road engines be contracted out, the logistics use facility shall preferentially contract for services utilizing zero-emission small off-road engines.
(h) “Warehouse concentration region” includes the Counties of Riverside and San Bernardino and the Cities of Chino, Colton, Fontana, Jurupa Valley, Moreno Valley, Ontario, Perris, Rancho Cucamonga, Redlands, Rialto, Riverside, and San Bernardino.
65098.1.
(a) Commencing January 1, 2026, any proposed new or expanded logistics use development 250,000 square feet or more where the loading bay is within 900 feet of a sensitive receptor that is utilizing a site zoned for industrial use or any site where an application was submitted to the jurisdiction by September 30, 2024, to rezone as industrial and the rezone to industrial was ultimately approved shall comply with all of the following:
(1) Include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098.
(2) Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible.
(3) Locate truck loading bays a minimum of 300 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method. (4) Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. (5) Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(6) Include buffering and screening to mitigate for light and noise, as described in Section 65098.2. (b) Commencing January 1, 2026, except as provided for in subdivision (c), any proposed new or expanded logistics use development that is on land that is not zoned industrial, whether developed or undeveloped, or land that needs to be rezoned, where the loading bay is within 900 feet of a sensitive receptor, shall comply with all of the following:
(1) If the logistics use development is 250,000 square feet or more it shall include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098. If the logistics use

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development is less than 250,000 square feet it shall include all 21st century warehouse design elements described in subdivision (a) of Section 65098. (2) Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible.
(3) Locate truck loading bays a minimum of 500 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method. (4) Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. (5) Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(6) Include buffering and screening to mitigate for light and noise, as described in Section 65098.2. (c) Commencing January 1, 2026, any proposed new or expanded logistics use development that is on land that is not zoned industrial, whether developed or undeveloped, or land that needs to be rezoned, and is located in the warehouse concentration region, shall comply with all of the following:
(1) If the logistics use development is 250,000 square feet or more it shall include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098. If the logistics use development is less than 250,000 square feet it shall include all 21st century warehouse design elements described in subdivision (a) of Section 65098. (2) Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible.
(3) Locate truck loading bays a minimum of 500 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method. (4) Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. (5) Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(6) Include buffering and screening to mitigate for light and noise, as described in Section 65098.2. (d) Commencing January 1, 2026, any proposed new or expanded logistics use development less than 250,000 square feet where the loading bay is within 900 feet of a sensitive receptor that is utilizing a site zoned for industrial use or any site where an application was submitted to the jurisdiction by September 30, 2024, to rezone as industrial and the rezone to industrial was ultimately approved shall comply with all of the following:
(1) Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible.

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(2) Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(3) Include buffering and screening to mitigate for light and noise, as described in Section 65098.2. (4) Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations), including, but not limited to, the following requirements related to:
(A) Photovoltaic system installation and associated battery storage. (B) Cool roofing.
(C) Medium- and heavy-duty vehicle charging readiness.
(D) Light-duty electric vehicle charging readiness and installed charging stations. (5) Provides conduits at loading bays equal to one truck per every loading bay serving cold storage.

Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay. (6) Ensures that any heating, ventilation, and air-conditioning is high-efficiency. (7) Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. (e) (1) Except as provided in paragraph (2), on or before January 1, 2028, a city, county, or city and county shall update its circulation element to include truck routes, as specified in Section 65302.02. (2) On or before January 1, 2026, all cities and counties in the warehouse concentration region shall update its circulation element to include truck routes, as specified in Section 65302.02. 65098.1.5.
(a) (1) Notwithstanding any other provision of law, any existing logistics use development in existence as of September 30, 2024, shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a new sensitive receptor is constructed, established, or permitted after the effective date of this chapter.
(2) Notwithstanding any other provision of law, if, by September 30, 2024, a proposed expansion of a logistics use development is in a local entitlement process, then the proposed expansion shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a sensitive receptor is constructed, established, or permitted after the effective date of this chapter. (3) Notwithstanding any other provision of law, if, by September 30, 2024, a property is currently in a local entitlement process to become a logistics use, then the proposed logistics use development shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph

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(3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a sensitive receptor is constructed, established, or permitted after the effective date of this chapter. (b) (1) Any new logistics use developments that require the rezoning of land and must undergo a municipal entitlement process shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if the start of the entitlement process for the logistics use began before any sensitive receptor started its own entitlement or permitting process, unless the proposed sensitive receptor was an existing allowable use according to local zoning regulations. (2) During a logistics use development’s entitlement process for a new or expanded logistics use, if a new sensitive receptor is proposed or established within the distances required by paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, then those distance requirements shall not apply to the logistics use development so long as the logistics use development was not already subject to those requirements prior to the new sensitive receptor being proposed or established. (c) This chapter shall not apply to any logistics projects that were subject to a commenced local entitlement process prior to September 30, 2024.
(d) The protection afforded by this section shall remain in effect from the time of the initial application submission through the completion of the entitlement process, including any necessary rezoning actions and through the development period. If no development activity occurs within five years of entitlement approvals, the protections shall be waived. (e) This chapter shall not apply to a logistics project that received an approval by a local agency prior to the effective date of this chapter. For purposes of this subdivision, “approval” shall have the same meaning as set forth in subdivision (a) of Section 15352 of Chapter 3 of Division 6 of Title 14 of the California Code of Regulations.
65098.2.
(a) Any new logistics use facility within 900 feet of a sensitive receptor shall have a buffer as follows:
(1) If the logistics use development is subject to the requirements of subdivision (a) or (d) of Section 65098.1, the buffer shall be 50 feet in width measured from the property line of all adjacent sensitive receptors that fully screen the project from the sensitive receptor. (2) If the logistics use development is subject to either subdivision (b) or subdivision (c) of Section 65098.1, the buffer shall be 100 feet in width measured from the property line of all adjacent sensitive receptors that fully screen the project from the sensitive receptor. (b) Buffer areas shall include a solid decorative wall, landscaped berm and wall, or landscaped berm 10 feet or more in height, drought tolerant natural ground landscaping with proper irrigation, and solid-screen buffering trees as described in subdivision (c). (c) Trees shall be used as part of a solid-screen buffering treatment and planted in two rows along the length of the property line adjacent to the sensitive receptor. Trees used for this purpose shall be evergreen, drought tolerant, to the extent feasible, composed of species with low biogenic emissions, of a minimum 36-inch box size at planting, and spaced at no greater distance than 40 feet on center.

Palm trees shall not be utilized.

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65098.2.5.

The entry gates into the loading truck court for a new or expanded logistics use facility shall be positioned after a minimum of 50 feet of total available stacking depth inside the property line. The stacking depth shall be increased by 70 feet for every 20 loading bays beyond 50 loading bays, to the extent feasible.
65098.2.7.
(a) The purpose of this section is to ensure that logistics use developments, beginning January 1, 2026, are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use development to roadways that are suited to handle the associated traffic and that predominantly serve commercial uses. (b) (1) Any new logistics use development shall be sited on roadways that meet the following classifications:
(A) Arterial roads.
(B) Collector roads.
(C) Major thoroughfares.
(D) Local roads that predominantly serve commercial uses. (2) For purposes of this chapter, local roads shall be considered to predominantly serve commercial uses if more than 50 percent of the properties fronting the road within 1000 feet are designed for commercial or industrial use according to the local zoning ordinance. (c) A waiver may be granted where siting on the designated roadways pursuant to subdivision (b) is impractical due to unique geographic, economic, or infrastructure-related reasons. The waiver shall be approved by the city, county, or city and county, provided that the applicant demonstrates all of the following:
(1) There is no feasible alternative site that exists within the designated roadways. (2) A traffic analysis has been completed and submitted to the local approving authority. (3) The site is an existing industrial zone.
(4) The proposed site will incorporate mitigations to minimize traffic and environmental impacts on residential areas to the greatest extent feasible.
65098.3.
(a) Anti-idling signs indicating a three-minute heavy-duty truck engine idling restriction shall be posted at logistics use developments along entrances to the site and at the truck loading bays. (b) Signs shall be installed at all heavy-duty truck exit driveways directing truck drivers to the truck route as indicated in the truck routing plan, as described in Section 65098.4, and in the state highway system.
65098.4.

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Prior to the issuance of a certificate of occupancy, a facility operator shall establish and submit for approval to the planning director or equivalent position for the city, county, or city and county a truck routing plan to and from the state highway system based on the latest truck route map of the city, county, or city and county. The truck routing plan shall describe the operational characteristics of the use of the facility operator, including, but not limited to, hours of operation, types of items to be stored within the building, and proposed truck routing to and from the facility to designated truck routes that, to the greatest extent possible, avoid passing sensitive receptors. The truck routing plan shall include measures, such as signage and pavement markings, queuing analysis, and enforcement, for preventing truck queuing, circling, stopping, and parking on public streets. The facility operator shall be responsible for enforcement of the truck routing plan. A revised truck routing plan shall be submitted to the planning director or equivalent position prior to a business license being issued by the city, county, or city and county for any new tenant of the property. The planning director or equivalent position shall have discretion to determine if changes to the truck routing plan are necessary, including, but not limited to, any additional measures to alleviate truck routing and parking issues that may arise during the life of the facility.
65098.5.
(a) A city, county, or city and county shall not approve development of a logistics use that does not meet or exceed the standards outlined in this chapter.
(b) This section shall not be construed to restrict the existing authority of a city, county, or city and county to deny a logistics use facility altogether.
65098.6.

A city, county, or city and county shall condition approval of a logistics use on the following:
(a) Two-to-one replacement of any demolished housing unit that was occupied within the last 10 years, unless the housing unit was declared substandard by a building official, pursuant to Section 17920.3 of the Health and Safety Code, prior to purchase by the developer. For each housing unit demolished, regardless of market value of the unit, two units of affordable housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that are deed-restricted shall be built within the jurisdiction. Funds from any fee imposed for the replacement of demolished housing units shall be placed in a housing-specific set-aside account and shall be used for housing within three years of collection. (b) If residential dwellings are affected through purchase, the developer shall be required to provide any displaced tenant with an amount equivalent to 12 months’ rent at the current rate. 65098.7.

Nothing in this chapter shall be construed to supersede mitigation measures required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
65098.8.

The Legislature finds and declares that the movement and storage of freight and the impact of this activity on public health and communities across the state as set forth in this chapter is a matter of

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statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities. 65098.9.

The provisions of this chapter shall not apply to a logistics use development if it meets both of the following:
(a) The logistics use development is a mixed-use development that may create sensitive receptors on the site of the new logistics use development.
(b) There are no existing sensitive receptors within 900 feet of the loading bay.

SEC. 2.

Section 65302.02 is added to the Government Code, to read:
65302.02.

By January 1, 2028, except as provided for in subdivision (h), a county or city shall update its circulation element, as required by subdivision (b) of Section 65302, to do all of the following:
(a) Identify and establish specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and sensitive receptors, as defined by Section 65098. (b) Maximize the use of interstate or state divided highways as preferred routes for truck routes. The county or city shall also maximize use of arterial roads, major thoroughfares, and predominantly commercially oriented local streets when state or interstate highways are not utilized. Truck routes shall comply with the following:
(1) Major or minor collector streets and roads that predominantly serve commercially oriented uses shall be used for truck routes only when strictly necessary to reach existing industrial zones. (2) Trucks shall be routed via transportation arteries that minimize exposure to sensitive receptors. (3) On and after January 1, 2028, all proposed development of a logistics use development, as defined in subdivision (d) of Section 65098, shall be accessible via arterial roads, major thoroughfares, or roads that predominantly serve commercially oriented uses. (A) The purpose of this section is to ensure that logistics use developments are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use developments to roadways that are suited to handle the associated traffic and that predominantly serve commercial uses. (B) For purposes of this section, local roads shall be considered to predominantly serve commercial uses if more than 50 percent of the properties fronting the road within 1000 feet are designated for commercial or industrial use according to the local zoning ordinance. (c) The county or city may consult with the Department of Transportation and the California Freight Advisory Committee for technical assistance.

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(d) The county or city shall provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations. (e) The county or city shall make truck routes publicly available in geographic information system (GIS) format and share GIS maps of the truck routes with warehouse operators, fleet operators, and truck drivers.
(f) The city or county shall provide opportunities for the involvement of citizens, California Native American Indian tribes, public agencies, public utility companies, and civic, educational, and other community groups through public hearings and any other means the planning agency deems appropriate, consistent with Section 65351.
(g) The city or county shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the changes required pursuant to this section. (h) The warehouse concentration region, as defined in Section 65098, shall implement the provisions of this section by January 1, 2026.
(i) The Attorney General may enforce this section.
(1) The Attorney General may impose a fine against a jurisdiction that is in violation of this section of up to fifty thousand dollars ($50,000) every six months if the required updates have not been made. (2) Upon appropriation by the Legislature, any fines collected shall be distributed by the Attorney General and returned to the local air quality management district in which the fine was imposed and be used for the district’s efforts to improve air quality.

SEC. 3.

Section 40458.5 is added to the Health and Safety Code, to read:
40458.5.
(a) Subject to an appropriation for this express purpose, the south coast district shall, beginning on January 1, 2026, and until January 1, 2032, deploy mobile air monitoring systems within the Counties of Riverside and San Bernardino to collect air pollution measurements in communities that are near operational logistics use developments.
(b) The south coast district shall use the data collected pursuant to subdivision (a) to conduct an air modeling analysis to evaluate the impact of air pollution on sensitive receptors, as defined in Section 65098 of the Government Code, from logistics use development operations in the Counties of Riverside and San Bernardino, including relative pollution concentrations from logistics use developments at varying distances from sensitive receptors. (c) The south coast district shall submit its findings to the Legislature on or before January 1, 2033.

On or before January 1, 2028, the south coast district shall submit an interim report to evaluate the impact of air pollution on sensitive receptors, as defined in Section 65098 of the Government Code, from logistics use development operations in the Counties of Riverside and San Bernardino, including relative pollution concentrations from logistics use developments at varying distances from sensitive receptors. This report shall be used to assess the effectiveness of setbacks on public health.

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(d) (1) The requirement for submitting a report imposed pursuant to subdivision (c) is inoperative on January 1, 2040, pursuant to Section 10231.5 of the Government Code. (2) A report to be submitted pursuant to subdivision (c) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 4.

Section 40522.7 is added to the Health and Safety Code, to read:
40522.7.

The south coast district shall establish a process for receiving community input on how any penalties assessed and collected for violations of the Warehouse Indirect Source Rule are spent. The south coast district shall ensure a wide range of community groups are included in the process and that groups represent the geographic areas where there are high numbers of warehouse facilities.

SEC. 5.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.

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Appendix B. Southern
California Association of
Governments (SCAG)
Geotab Technical Guidance

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Overview
Geotab’s Altitude platform is a roadway analytics tool built using data from telematics devices in freight vehicles. Unlike modeled datasets, Geotab is based on observed data to show where, when, and how freight moves through a roadway network both locally and regionally. Geotab data is a sample of the overall vehicle fleet, typically encapsulating 1-25%. Geotab can be used to guide truck route planning efforts by efficiently providing big data based on real-world activity at a low cost. This guide is intended to help agency staff determine the most appropriate data needs for their projects and understand the necessary inputs when making a request.

How the Geotab Subscription Works
Geotab data is accessible through SCAG’s regional subscription by submitting a request through the Streetlight Online Request form. Analyses are typically delivered within 1-3 weeks of a submittal. The standard Geotab subscription determines access to three main components of the platform:
• Geography – Which counties, cities, or other geographic zones can be analyzed. • Time Period – What months of data are able to be accessed. • Analysis Types – Which specific analytics tools and queries are available, including the ability to filter analyses by vehicle weight class (e.g., Class 1-8 or Light-, Medium, and Heavy-Duty Trucks) and vehicle type (e.g., Truck, Multi-Purpose Vehicles, Bus, etc.).

The SCAG Geotab subscription offers access to all analysis types and all geography types within the SCAG region, with data ranging from January 1st, 2022, to December 31st, 2024.

Analysis Capabilities
The core analytical capabilities fall into four major modules for truck route planning: Traffic Analysis, Origin/Destination (O/D), Regional Travel Metrics, and Stop Analytics (Table 1). Each offers various analysis tools that can provide a variety of outputs as needed. The full catalogue of analysis requests available are detailed as “queryTypes” on the Altitude API Guide. Additionally, for hands-on, selfguided tours of specific types of analyses, refer to the Altitude Product Demo page.

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Table 3. Geotab Analysis Modules
Module Description Use Cases Spatial Scale
Traffic
Analysis
Evaluates truck
movement along
corridors or within
zones, with metrics
on speed, travel
times, and harsh
driving events.
• Identify potential bottlenecks
that could undermine truck
route efficiency
• Compare corridor efficiency
(travel time reliability, speed
variability, total observations)
Corridor / road
segment scale
Origin/
Destination
(O/D)
Analyzes freight
demand and trip
patterns between
zones or generators,
including route
compliance and
common O/D pairs.
• Assess route compliance
according to designated truck
routes between freight
generators
• Determine top freight
generating O/D pairs within an
area to support routing
decisions
• Determine trip distances and
flows
Area zones (e.g.,
Census Geographies,
TAZs, City
Boundaries) to
regional
Regional
Travel
Metrics
Provides regional
freight
demand/activity
trends by industry,
vehicle class, or
geography. Includes
counts and fuel
economy.
• Identify high-demand freight
corridors
• Quantify freight
demand/generation
• Track freight trends over time
Multi-corridor /
multi-segment
Stop
Analysis
Identifies stop
locations, durations,
idling, and trip
distances
before/after stops.

Highlights dwelling or
parking patterns.
• Detect ruck parking/idling hot
spots
• Identify rest area coverage
gaps
• Support enforcement/signage
Point locations /
clusters
Note: Each analysis module allows for truck metrics to be pulled annually, seasonally, daily, and hourly.

Defining a Truck Trip
Unlike personal autos, trucks often operate as multi stop tours (pickups, deliveries, staging, fueling, breaks) that blur where one “trip” begins and ends. The right definition depends on your use case

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(O/D analysis, truck parking demand analytics, capacity calculations, etc.). Table 2 provides a breakdown of common trip definitions.

Table 2. Trip Definitions
Trip Definition Description
Dwell-Threshold
(stop-based)
Segmentation
End a trip when the device shows little/no movement for a set period and distance (e.g., no movement >5 m for ≥5 minutes; min trip length ≥3 minutes and ≥500 m). This is a widely used rule in commercial platforms; it’s simple and scalable but can split long-haul legs at brief fuel/rest stops.

Ignition / Hours of
Service (HOS)
Segmentation
Bound trips with engine on/off or driver duty-status changes. This aligns with operational reality and curbs over-splitting, but availability varies by provider and policy. This rule is clear but it can ignore Less than Truck Loads (LTL) activities, where they have a short stop for delivery or pick up while the engine is on.

Geofence-toGeofence (facilityanchored) trips
Define trips as movements between polygons (e.g., warehouse ↔ customer, yard ↔ port gate). This is powerful for OD analysis and trip generation, because it explicitly credits activity to known sites; however, it can miss mid-stream activity unless you model intermediary geofences (fuel, staging).

Tour Linking (leg
consolidation)
Start with stop-based legs, then link adjacent legs into a single tour when intermediate stops are short (e.g., fueling) or “non-productive.” This preserves long-haul continuity and is feasible when persistent vehicle IDs exist (e.g., datasets where IDs remain stable over multiple days).

In platforms like Geotab, users have the flexibility to define the trip:
• Single Trips – defined when a vehicle starts moving until it stops with ignition turned off, idles for 3 minutes and 20 seconds, or is shifted to park for 30 seconds. • Chained Trips – defined as connected consecutive trips, ignoring stops that are shorter than a defined threshold.

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Requesting Geotab Data
Prior to making a data request through the StreetLight Online Request form, users should follow these general preparation steps to ensure that they receive the most relevant and valuable data in a timely manner:

1. Define the Planning Objective – What question(s) should the analysis answer?

2. Define the Analysis Type and Function – Determine the most suitable analysis module by reviewing the available analysis modules described in Table 1. Once an analysis module is selected, review the list of query types that are available under that module as defined in the Altitude API Guide.

3. Determine the Geography of the Analysis – Determine the geographic scope for the analysis.

The allowable geographic inputs include standard Census geographics (e.g., Census Tracts, Census Block Groups) and individual road segments. When requesting data at the segment level, filter your data by road type, as defined by OpenStreetMap (e.g., motorway, primary, secondary, trunk, tertiary). For more information on OpenStreetMap road types, visit the OpenStreetMap Highway Wiki.

4. Determine the Time of the Analysis – Determine the temporal resolution of the analysis by specifying specific date, day, and time ranges. The output will be a sum of observations within the specified date, day, and time range.
a. Date Range – specify the Date From and Date To range (e.g., 2024-01-01 to 2024- 01-31).
b. Days – isolate specific days of the week (e.g., individual days, weekdays, all days). c. Time Range – specify the Time From and Time To range (e.g., 00:00:00 to 23:59:59)

5. Apply Additional Filters – Determine additional filters to narrow the data output. Additional filters to consider include vehicle class, road class, and industry.

6. Consider Journey Definitions – Geotab allows users to filter by journeys which are defined as single trips or consecutive chained trips. Refer to Table 2 for more specific trip definitions, and definitions of allowable trip definitions within the Geotab platform.

Example Request – Origin/Destination
To request Origin-Destination data from one more zones within the SCAG region, as well as the observed counts by segments, and top routes between zones, use the following analysis parameters in your request:

1. Planning Objective – Produce an Origin-Destination matrix showing where Heavy-Duty Trucks trips travel to/from for the major logistics center south of Mission Boulevard in the City of Ontario. Additionally, identify the top routes between major O/D pairs.

2. Define the Analysis Type and Function
a. Module – Origin/Destination (O/D)
b. Query Type – Get Origin/Destination Matrix

3. Determine the Geography of the Analysis
a. Origin Zones – provide the Census Geographies (Census FIPS code) for all origin zones of interest.

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b. Destination Zones – provide the Census Geographies (Census FIPS code) for all destination zones of interest. Alternatively, specify all Census Geographies within the SCAG region to return a broader set of destinations.

4. Determine the Time of the Analysis – provide O/D for all of January, on weekdays, for the entire day.
a. Date Range – Time From: 2024-01-01, Time To: 2024-01-31 b. Days – Weekdays (Monday – Friday)
c. Time Range – All Day (00:00:00 to 23:59:59)

5. Apply Additional Filters
a. Truck Classification – Heavy-Duty Trucks
Example Request – Segment-Level Observed Counts
To request segment-level observed counts for a specific area, city, or county, use the following analysis parameters in your request:

1. Planning Objective – Identify highly traveled roadway segments for Heavy-Duty truck trips that start or end within the City of Riverside.

2. Define the Analysis Type and Function
a. Module – Regional Travel Metrics
b. Query Type – Get Observed Counts

3. Determine the Geography of the Analysis
a. Zone(s) – City of Riverside (FIPS Code 06065).
b. Road Type(s) – Motorway, primary, secondary, tertiary

4. Determine the Time of the Analysis – provide O/D for all of January, on weekdays, for the entire day.
a. Date Range – Time From: 2024-01-01, Time To: 2024-01-31 b. Days – All Days (Monday – Sunday)
c. Time Range – All Day (00:00:00 to 23:59:59)

5. Apply Additional Filters
a. Truck Classification – Heavy-Duty Trucks

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Interpreting and Visualizing Geotab Data
Truck movement data from Geotab is often highly detailed and dense data. This section provides a generalized process for interpreting, summarizing, and visualizing Geotab data in a digestible way that supports effective decision-making.

Understanding the Output
Regardless of the format, every dataset output will include a combination of one or more of the following depending on the analysis: spatial features, temporal characteristics, and vehicle or trip characteristics. To understand what is needed out of the output, users should consider the following basic methods of data aggregation and relate it back to the planning objective.

Geographic Aggregation – Outputs can be aggregated by spatial categories, such as by corridor, census tracts, or road class. Geographic aggregation can answer questions such as:
• Which roads have the highest truck usage or longest stop durations? • Where are trucks speeding the most?
Temporal Aggregation – Outputs can be aggregated by month, day of week, or even hour of day.

Temporal aggregation can answer questions such as:
• When are industrial areas most active?
• How does truck activity vary month-by-month?
Vehicle or Trip Aggregation – Outputs can be aggregated by vehicle or trip categories, such as vehicle class and industry to answer questions such as:
• How long do heavy-duty trucks travel on City roads compared to medium-duty trucks? • How do top routes for heavy-duty trucks differ compared to medium-duty trucks between two major freight generators?
Understanding these aggregations and looking at them as a whole can reveal hidden patterns and answer advanced questions supporting truck route planning decisions, such as:
• On truck routes near sensitive receptors, where do trucks tend to speed during off-peak hours?
• Where are the hot spots for long-duration stops near sensitive receptors and when do they occur?
Visualizing the Data
The results gleaned from aggregating the data needs to be visualized to be digestible and compelling to stakeholders. Visualizations should answer the planning objectives or questions. Most visualizations will either be maps or charts.

Maps
Maps are the most intuitive way to reveal spatial patterns, hot spots, and illustrate how truck behavior interacts with land use and infrastructure. There are a variety of map types that can be used to

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illustrate Geotab outputs. Roadway-based line maps are best for portraying volumes or speed values.

By symbolizing with graduated colors or line-widths, users can identify heavily used corridors and speed bottlenecks. Heat maps or hot spot maps are best suited for portraying stop or idling related metrics, identifying significant staging areas or gaps in truck parking. Interactive web maps or dashboards can relay multiple metrics of truck behavior, consolidating relevant information to one location for stakeholders. Figure 1 and Figure 2 below showcase segment-level heavy-duty truck sample observations.

Figure 1. Heavy-duty truck sample observations in the City of Ontario Figure 2. Heavy-duty truck sample observations in the City of Riverside Charts
Charts can also support visualizing temporal trends and zone or corridor comparisons. Charts often complement map-based visualizations by providing supporting metrics on truck behavior. Line charts

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can highlighting hourly or daily patterns in truck volumes or speeds, revealing peak freight periods.

Bar charts can be used to effectively rank corridors, OD pairs, or zones by metrics such as trip count or travel time. Stacked bar charts can break down truck activity by vehicle class or industry type.

Histograms or box plots are useful for understanding variation and outliers in metrics like speed and stop duration on specific corridors. Charts are also able to be included on web maps and dashboards.

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Appendix C. Municipal
Code Guidance

AB 98 Zoning
Guidance
May 2025
Prepared by:

Lisa Wise Consulting, Inc.
939 S Broadway #611
Los Angeles, CA 90015

WRCOG and SBCTA | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 34
AB 98 Zoning Considerations
Things to Know About AB 98
The following is a brief list of “things to know” about AB 98 ahead of updating your jurisdiction’s zoning regulations. Some items will be reminders from the previous meeting. • AB 98 provides crucial definitions for “logistics uses” and “sensitive receptors.” • AB 98 uses the threshold of 250,000 square feet to regulate logistics uses (i.e., logistics uses under and over 250,000 square feet are regulated differently). • AB 98 is expected to be amended.
• Special zoning regulations apply to jurisdictions within the warehouse concentration region. In the checklist, “warehouse concentration region" will be highlighted and bolded in RED. Warehouse concentration region includes:
o Unincorporated Riverside County
o Unincorporated San Bernardino County
o City of Chino
o City of Colton
o City of Fontana
o City of Jurupa Valley
o City of Moreno Valley
o City of Ontario
o City of Perris
o City of Rancho Cucamonga
o City of Redlands
o City of Rialto
o City of Riverside
o City of San Bernardino
• AB 98 only applies to logistics uses that have sensitive receptors within 900 feet of the loading bay. • AB 98 does not apply to logistics use developments that are mixed-use developments that may create sensitive receptors on the site of the new logistics use development. • AB 98 zoning regulations apply to all jurisdictions beginning January 1, 2026.

WRCOG and SBCTA | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 35
AB 98 Conflict and Implementation Checklist
The checklist below is a to-do list for reviewing your jurisdiction’s zoning regulations in light of new standards under AB 98. The goal of this checklist is to ensure local zoning regulations do not conflict with AB 98 and to implement or refer to AB 98 regulations.

AB 98 CONFLICT AND IMPLEMENTATION CHECKLIST
☐ Define “logistics use” per the definition under AB 98.

The AB 98 definition of “logistics use” is found below and in California Government Code §65098(d).

Complete one of the following as appropriate:
• Add AB 98 definition for “logistics uses” in your local zoning regulations / Edit existing zoning code definition of “logistics uses” to match AB 98; OR • Add reference stating that “logistics use” is defined in accordance with AB 98 (California Government Code §65098(d)).

Note: This definition may change in the future. If you choose to add the definition directly to the zoning code, it may be best to add that the Government Code definition supersedes. “Logistics use” means a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products. “Logistics use” does not include any of the following:
(1) Facilities where food or household goods are sold directly to consumers and are accessible to the public.
(2) A building primarily served by rail to move cargo goods or product. (3) (A) A Strategic Intermodal Facility.
(B) For purposes of this subdivision, “Strategic Intermodal Facility” means a project that satisfies all of the following requirements:
i. Logistics facilities, including warehousing and transloading facilities, served by rail.
ii. Intermodal freight transport services.

WRCOG and SBCTA | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 36
AB 98 CONFLICT AND IMPLEMENTATION CHECKLIST
☐ Define “sensitive receptor” per the definition under AB 98.

The AB 98 definition of “sensitive receptor” is found below and in California Government Code §65098(e).

Edit Zoning Code definition to match AB 98 or ensure logistics uses are regulated using the AB 98 definition of “sensitive receptor.”
Complete one of the following as appropriate:
• Add AB 98 definition for “sensitive receptor” in your local zoning regulations / Edit existing zoning code definition of “sensitive receptor” to match AB 98; OR • Add reference stating that “sensitive receptor” is defined in accordance with AB 98 (California Government Code §65098(e)).

Note: This definition may change in the future. If you choose to add the definition directly to the zoning code, it may be best to add that the Government Code definition supersedes. “Sensitive receptor” means one or more of the following:
(1) A residence, including, but not limited to, a private home, apartment, condominium unit, group home, dormitory unit, or retirement home.
(2) A school, including, but not limited to, a preschool, prekindergarten, or school maintaining kindergarten or any of grades 1 to 12, inclusive.
(3) A daycare facility, including, but not limited to, in-home daycare. (4) Publicly owned parks, playgrounds, and recreational areas or facilities primarily used by children, unless the development of the park and recreation areas are included as a condition of approval for the development of a logistics use.
(5) Nursing homes, long-term care facilities, hospices, convalescent facilities, or similar live-in housing.
(6) Hospitals, as defined in Section 128700 of the Health and Safety Code.

WRCOG and SBCTA | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 37
AB 98 CONFLICT AND IMPLEMENTATION CHECKLIST
☐ Ensure local regulations create no conflict in regulating logistics uses based on square footage.

AB 98 regulates logistics uses larger or smaller than 250,000 square feet differently. Because of this, local zoning that regulate logistics uses by a square footage threshold other than 250,000 square feet will conflict with AB 98 standards and cause complications in implementation. Jurisdictions must ensure that these regulations do not conflict with AB 98.

It may be easier to remove any square footage threshold that is not 250,000 square feet. ☐ Require 2-to-1 replacement housing and/or rental assistance when appropriate.

Local jurisdictions must condition approval of logistics uses on the following:
• 2-to-1 replacement of any demolished housing unit that was occupied within the last 10 years1 prior to purchase by the developer.
o For each housing unit demolished (regardless of market value of the unit) 2 units of affordable housing for persons and families of low or moderate income 2 that are deed-restricted shall be built within the jurisdiction. o Funds from any fee imposed for the replacement of demolished housing units shall be placed in a housing-specific set-aside account and shall be used for housing within three years of collection.
• If residential dwellings are affected through purchase, the developer shall be required to provide any displaced tenant with an amount equivalent to 12 months’ rent at the current rate.
1 Unless the housing unit was declared substandard by a building official, pursuant to Section 17920.3 of the Health and Safety Code
2 As defined in Section 50093 of the Health and Safety Code.

Complete one of the following as appropriate:
• Add this AB 98 housing replacement/assistance requirement / Edit existing zoning code housing replacement/assistance requirement; OR
• Add reference to this housing replacement/assistance requirement (California Government Code §65098.6).

WRCOG & SBCTA | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 38
AB 98 CONFLICT AND IMPLEMENTATION CHECKLIST
☐ Set back truck loading bays per AB 98.

Truck loading bays must be set back 300-500 feet from sensitive receptors depending on size and zoning. You can decide to add these if you do not currently have any in your zoning regulations. Otherwise, simply add a reference to AB 98.

All logistics uses must orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors to the extent feasible. In addition, the following regulations apply:

Truck Loading Bay Location Restrictions
Logistics Use Type Site Type (Zone) Truck Loading Bay Location Reference 250,000 square feet or
more
Site zoned for
industrial use (or
recently rezoned
industrial) 1
Min 300 ft from property line of
nearest sensitive receptor to the
nearest truck loading bay
opening (using a direct straightline method)
CA Gov’t Code
§65098.1(a)
Site not zoned
industrial / needs to
be rezoned
Min 500 ft from property line of
nearest sensitive receptor to the
nearest truck loading bay
opening (using a direct straightline method)
CA Gov’t Code
§65098.1(b)
All sizes in

WAREHOUSE

CONCENTRATION
REGION
Site not zoned
industrial / needs to
be rezoned
Min 500 ft from property line of
nearest sensitive receptor to the
nearest truck loading bay
opening (using a direct straightline method)
CA Gov’t Code
§65098.1(c)
Less than 250,000 square
feet
Site zoned for
industrial use (or
recently rezoned
industrial) 1
n/a CA Gov’t Code
§65098.1(d)
1 Any site where an application to rezone to industrial was submitted to the jurisdiction by September 30, 2024. Only relevant for rezones that were ultimately approved.

Complete one of the following as appropriate:
• Add these truck loading bay location restrictions to your local zoning regulations / Edit existing zoning code truck loading bay location restrictions; OR • Add reference to these requirements (see California Government Code references above).

Western Riverside Council of Governments | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 39
AB 98 CONFLICT AND IMPLEMENTATION CHECKLIST
☐ Regulate truck entrance, exit, and internal circulation location as appropriate.

Truck entrances, exits, and internal circulation are regulated depending on size and zoning.

The following regulations apply:

Truck Entrance, Exit, and Internal Circulation Requirements Logistics Use
Type
Land Type Location Requirements Reference
250,000 square
feet or more
Site zoned for
industrial use (or
recently rezoned
industrial) 1
Require entry gates into the loading
truck court to be positioned after a
min of 50 feet of total available
stacking depth inside the property
line 2
Require a separate entrance for
heavy-duty trucks 3
Locate entry, exit, and internal
circulation away from sensitive
receptors
Heavy-duty diesel truck drive aisles
shall be prohibited from being used
on sides of the building that are
directly adjacent to a sensitive
receptor property line
CA Gov’t Code
§65098.1(a) &
§65098.2.5
Site not zoned
industrial / needs to
be rezoned
CA Gov’t Code
§65098.1(b) &
§65098.2.5
All sizes in

WAREHOUSE

CONCENTRATION
REGION
Site not zoned
industrial / needs to
be rezoned
CA Gov’t Code
§65098.1(c) &
§65098.2.5
Less than 250,000
square feet
Site zoned for
industrial use (or
recently rezoned
industrial) 1
CA Gov’t Code
§65098.1(d) &
§65098.2.5
1 Any site where an application to rezone to industrial was submitted to the jurisdiction by September 30, 2024. Only relevant for rezones that were ultimately approved. 2 The stacking depth shall be increased by 70 feet for every 20 loading bays beyond 50 loading bays, to the extent feasible.
3 Accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses.

Complete one of the following as appropriate:
• Add these truck entrance, exit, and internal circulation location restrictions to your local zoning regulations / Edit existing zoning code truck entrance, exit, and internal circulation location restrictions; OR
• Add reference to these requirements (see California Government Code references above).

Western Riverside Council of Governments | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 40
AB 98 CONFLICT AND IMPLEMENTATION CHECKLIST
☐ Require buffers for new logistics uses within 900 feet of a sensitive receptor.

AB 98 requires buffers for any new facility within 900 feet of a sensitive receptor as follows:

Logistics Use Buffers
Logistics Use
Type
Land Type General Buffer
Requirement
Special Buffer
Requirement,
Min Width
Reference
250,000 square
feet or more
Site zoned for industrial
use (or recently
rezoned industrial) 1
Buffer area shall
include:
• A solid
decorative wall,
landscaped berm
and wall, or
landscaped berm
10 feet or more
in height;
• Drought tolerant
natural ground
landscaping with
proper irrigation,
and
• Solid-screen
buffering trees 1
50 feet 1
CA Gov’t
Code
§65098.2
Site not zoned
industrial / needs to be
rezoned
100 feet 1
All sizes in

WAREHOUSE

CONCENTRATION
REGION
Site not zoned
industrial / needs to be
rezoned
100 feet 1
Less than 250,000
square feet
Site zoned for industrial
use (or recently
rezoned industrial) 1
50 feet 1
1 Trees shall be used as part of a solid-screen buffering treatment and planted in two rows along the length of the property line adjacent to the sensitive receptor. Trees used for this purpose shall be evergreen, drought tolerant, to the extent feasible, composed of species with low biogenic emissions, of a minimum 36-inch box size at planting, and spaced at no greater distance than 40 feet on center. Palm trees shall not be utilized.
2 Measured from the property line of all adjacent sensitive receptors that fully screen the project from the sensitive receptor.

Complete one of the following as appropriate:
• Add these buffer requirements to your local zoning regulations / Edit existing zoning code buffer requirements; OR
• Add reference to these buffer requirements (see California Government Code references above).

Western Riverside Council of Governments | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 41
AB 98 CONFLICT AND IMPLEMENTATION CHECKLIST
☐ Require 10% of passenger vehicle spaces for large logistics uses to be installed with electric vehicle stations.

AB 98 requires that every “Tier 1 21st Century warehouse” must have a minimum of “10 percent of all passenger vehicle parking spaces installed with electric vehicle stations.” This requirement is contained in the definition of Tier 1 21st Century Warehouse.1 This term, as a general rule of thumb, means a logistics use that is 250,000 square feet or larger. 1 California Government Code §65098(g)(6).

Complete one of the following as appropriate:
• Add this EV charging station requirement for all logistics uses 250,000 square feet or more / Edit any existing zoning code EV charging stations requirements that conflict with AB 98; OR
• Add reference to these EV charging station requirements (see California Government Code references\ above).

Graphic 1
Setbacks for Truck Loading Bays
Graphic 2
Entry Gate Location (Cross Docking Example)
Western Riverside Council of Governments | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 42

Graphic 3
Buffering from Sensitive Receptors
Western Riverside Council of Governments | Lisa Wise Consulting | Updated February 28, 2025 AB 98 Zoning Considerations | Page 43

AGENDA REPORT
MEETING DATE: February 10, 2026
TITLE: 2025-26 Mid-Year and Year-End Budget Review
PRESENTED BY: Christine Clayton, Finance Director
RECOMMENDATION: RECEIVE AND FILE THE FY2025-26 MID-YEAR AND YEAR-END REPORT
2030 VISION STATEMENT:

This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations.

BACKGROUND:

The purpose of the Mid-Year Budget Review is to provide the City Council with the following information:

1. Budget-to-actual results through the first half of the fiscal year;

2. Projections for a balanced budget at fiscal year-end; and

3. Any proposed budget adjustments/recommendations for consideration, if any.

The Mid-Year Budget Review for Fiscal Year (FY) 2025-26 focuses on the City’s General Fund.

DISCUSSION:

FY 2025-26 as of December 31, 2025
Operating Revenues
As of December 31, 2025, which represents 50% of the fiscal year, the General Fund operating revenues received were $3,874,928, or 44.5% of the approved budget of $8,710,104. There is a timing difference for revenues such as property taxes and sales tax. Property tax is received in two large sums in December and the other in April. Sales tax payments are two months behind.

Operating Expenditures
As of December 31, 2025, which represents 50% of the fiscal year, the General Fund operating expenditures were $3,978,689, which represents 43.8% of the approved expenditures of $9,075,851.

This figure includes expenditures that were carried over from the prior fiscal year of $173,351.

FY 2025-26 Year-end Projections
Projected Revenues
For this fiscal year, total revenues are projected at $9,969,384. This shows a surplus result of $1,259,280 against the annual budget of $8,710,104. The resulting increase is primarily from the following:

1. Property Tax: Increased $1.29M

2. Sales Tax: Decreased $227,000.

3. Increases and decreases in various revenues make up the difference.

As a result of all the variances listed above, the net result is an increase in General Fund revenues resulting in a projected surplus of $1.26M.

Projected Expenditures
Expenditures at June 30th are projected at $9,963,628 which includes $173,351 of carryover expenditures from FY2024-25. If expenditures continue at the same rate, then year-end expenditures will be $9,075,851. City staff is proposing additional expenditures of $887,777 in year-end expenses to bring expenditures to $9,963,628 vs. approved expenditures of $9,075,851. This overage is due in large part to law enforcement, improvements at the senior center, city hall and miscellaneous capital expenditures.

Below is the projected 2025-26 year-end revenue and expense statement for the General Fund.

Table 1
City of Grand Terrace
FY 2025-26 General Fund Financial Report
Year-end Projection
Approved
Budget
Dec
YTD
Actuals
Year-end
Projection
2024-25
Actuals
Year-end
vs. Appr
Budget

REVENUES
Property Tax 5,190,000 2,247,450 6,478,224 5,187,316 1,288,224 Franchise Fees 675,000 158,386 708,466 737,287 33,466
Sales Tax 1,600,000 445,483 1,372,683 1,365,441 (227,317) License, Fees &
Permits
505,320 261,972 470,389 606,029 (34,931)
Charges for
Services
132,500 29,239 47,914 101,065
(84,586)
Fines &
Forfeitures
41,000 12,149 21,591 59,664 (19,409)
Miscellaneous 33,624 12,695 12,696 53,326 (20,928)

Use of Money &
Property
72,660 200,463 331,830 257,018 259,170
Approved
Budget
Dec
YTD
Actuals
Year-end
Projection
2024-25
Actuals
Year-end
vs. Appr
Budget
Intergovernmental
Rev/Grants
58,500 25,291 43,791 74,017 (14,709)
Proceeds from
Sale of Property
0 0 0 1,325 0
Transfers In 0 0 69,717 0
Waste Water
Receipts
401,500 481,800 481,800 401,500 80,300
OPERATING REVENUES 8,710,104 3,874,928 9,969,384 8,913,705 1,259,280

EXPENDITURES
City Council 10-110 110,522 52,019 109,088 117,661 1,434 City Manager
City Manager 10-120 800,291 336,844 881,948 716,938 (81,657) Information Tech. 10-380 125,425 79,703 134,853 129,404 (9,428) Senior Citizens
Prgm
10-805 71,116 43,431 83,732 81,997 (12,616)
Emergency Oper. 10-808 18,000 4,281 33,206 44,236 (15,206) 1,014,832 464,259 1,133,739 972,575 (118,907)
City Clerk
City Clerk 10-125 307,618 152,552 303,264 346,428 4,354 Hist. & Cult.

Comm.
10-804 2,000 649 1,849 1,414 151
309,618 153,201 305,113 347,842 4,505
City Attorney 10-160 207,500 105,888 294,888 219,259 (87,388) Finance 10-140 838,726 276,838 759,139 666,855 79,587

Approved
Budget
Dec
YTD
Actuals
Year-end
Projection
2024-25
Actuals
Year-end
vs. Appr
Budget
Planning & Dev.

Building & Safety 10-172 381,278 178,673 343,040 343,819 38,238 Code
Enforcement
10-185 324,081 139,200 307,669 268,500 16,412
Enforcement
Prgm
10-187 45,450 26,120 57,473 53,151 (12,023)
Community Dev. 10-370 408,340 167,898 426,346 602,336 (18,006) Planning Comm. 10-801 9,175 428 10,268 1,996 (1,093)
1,168,324 512,319 1,144,796 1,269,802 23,528
Public Works
Public Works 10-175
780,070
314,610 805,610 1,003,020 (25,540)
Facilities Maint. 10-195 94,480 59,374 184,829 191,448 (90,349) Parks Maint. 10-450 451,753 198,272 815,252 493,323 (363,499) NPDES 10-625 81,400 67,931 73,431 69,961 7,969
Storm Drain
Maint.
10-631 129,774 42,158 108,723 89,327 21,051
1,537,477 682,345 1,987,845 1,847,079 (450,368)
Law Enforcement 10-410 2,941,250 1,023,888 2,982,396 2,668,483 (41,146) NonDepartmental
NonDepartmental10-190 1,091,400 707,932 1,087,117 1,001,429 4,283 Transfers Out 10-199 138,152 0 249,652 1,667,722 (111,500) Overhead Alloc. 10-999 (281,950) 0 (90,145) (90,145) (191,805) 947,602 707,932 1,246,624 2,579,006 (299,022)

TOTAL

EXPENDITURES
9,075,851 3,978,689 9,963,628 10,688,562 (887,777)
Approved
Budget
Dec
YTD
Actuals
Year-end
Projection
2024-25
Actuals
Year-end
vs. Appr
Budget

REVENUE &

EXPENSE

SUMMARY
REVENUES 8,710,104 3,874,928 9,969,384 8,913,705 1,259,280 FY24-25 C/O
EXP
(173,351) (173,351) (173,351) 0
FY 25-26 EXP (8,902,500) (3,805,338) (9,790,277) (10,688,562) (887,777) NET (365,747) (103,761) 5,756 (1,774,857) 371,503

REVENUE & EXPENSE VARIANCE
REVENUE OVERAGE 1,259,280
LESS: EXPENDITURE OVERAGE (887,777)
NET 371,503
FUND BALANCE FY23-24 FY24-25 FY25-26

PRIOR YEAR ENDING

FUND BAL
7,219,257 10,507,293 8,732,436
REVENUES 11,175,713 8,913,705 9,969,384
PY C/O

EXPENDITURES
(676,209) (173,351)
EXPENDITURES (7,887,677) (10,012,353) (9,790,277)
FUND BAL 10,507,293 8,732,436 8,738,192
ENVIRONMENTAL IMPACT:

None.

FISCAL IMPACT:

There is no fiscal impact to receiving and filing this report.