California Legislation Impacts the Cold Chain

The Global Cold Chain Alliance (GCCA) has been deeply engaged with California policymakers on AB 817 and SB 716, two pieces of legislation introduced in response to a June 17th warehouse fire in Los Angeles.

We have sincere empathy for the Boyle Heights and neighboring communities who were affected by this incident. What happened at the Los Angeles facility was a disaster no one would have chosen, and there are incredible lessons and opportunities for future improvements in our emergency preparedness and response processes for industrial sites.  

The legislation that has been recommended for Governor signature does not provide additional resources or support to communities impacted by industrial incidents, but rather assesses a financial barrier to doing business in California. 

These bills would raise cold storage costs across the food and pharmaceutical supply chain — affecting growers, processors, distributors, manufacturers, and retailers — while limiting facility improvements like energy efficiency upgrades and creating serious barriers to doing business in the state. As written:

• AB 817's proposed $20 million contingency fund lacks clear guidelines for administration and access, risking inconsistent use by local governments and financial uncertainty for businesses.
• AB 817 would limit facility improvements, such as energy efficiency upgrades, if filing the necessary permits triggers a contingency fund requirement.
• AB 817 would disadvantage small and medium-sized businesses that lack the means to secure required contingency funds.
• AB 817 lacks oversight of fund management; without clear standards, local governments could use the funds inconsistently.