The Global Cold Chain Alliance has voiced disappointment following California Governor Gavin Newsom’s decision to sign Assembly Bill 817 (AB 817) and Senate Bill 716 (SB 716) into law, two measures the Arlington, Virginia-headquartered GCCA has actively opposed since they were introduced in August. The laws will take effect on January 1, 2027.
AB 817 and SB 716 were introduced in response to a June 17 industrial fire at the Lineage refrigerated warehouse in Los Angeles that affected the Boyle Heights community and its neighbors. GCCA has sincerely expressed continual empathy for those impacted and believes this to be an opportunity to strengthen emergency preparedness and response at industrial sites statewide.
However, the trade association believes that legislation signed on September 27 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.
In a recently issued statement, GCCA emphasized: “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. We remain 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 and chief executive officer of the GCCA.
“However,” she added, “we look forward to sitting down with Assembly member Mark 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 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.”
