The Global Cold Chain Alliance (GCCA) expressed disappointment following Governor Gavin Newsom's decision to sign Assembly Bill 817 (AB 817) and Senate Bill 716 (SB 716) into law, two measures GCCA has actively opposed since they were introduced in August. The laws will take effect January 1, 2027.

AB 817 and SB 716 were introduced in response to a June 17 industrial fire in Los Angeles that affected the Boyle Heights community and its neighbors. GCCA has continual and sincere empathy for those impacted and believes this to be an opportunity to strengthen emergency preparedness and response at industrial sites statewide.

However, the legislation signed yesterday falls short of that goal. Rather than directing new resources or support to communities affected by industrial incidents, the bills primarily add financial and regulatory burdens on the food and pharmaceutical cold storage supply chain — raising costs for growers, processors, distributors, manufacturers, and retailers alike.

Cold storage is a critical link in the food supply chain, and the cold chain industry has continually invested in facilities, equipment, and safety measures to prevent incidents. GCCA remains committed to working toward legislation that balances community safety with the industry's ability to continue operating and investing in California.

"We're disappointed that this legislation moved forward in its current form, because it doesn't deliver what communities actually need in the wake of the Boyle Heights fire, and adds real costs to an industry that keeps food and medicine available and safe for millions of Californians," said Sara Stickler, President & CEO of GCCA. "However, we look forward to sitting down with Assemblymember Gonzalez, other lawmakers, and community stakeholders in the next legislative session to build a policy that genuinely strengthens emergency preparedness without pricing responsible businesses out of California. We appreciate Assemblymember Gonzalez's commitment to working with all parties to refine a policy that delivers meaningful safety and support to communities, while preserving and sustaining the state's food supply resiliency. Our members are ready to be part of that solution."

GCCA will continue to update its members and industry stakeholders as it works with the legislature ahead of the laws' effective date of January 1, 2027.