Blog

New laws increase fines and establish emergency financial requirements for large cold-storage facilities.

California has enacted two new laws affecting large cold-storage facilities following the June fire at a 491,000-square-foot Lineage facility in Boyle Heights, Los Angeles. The facility burned for several days, and millions of pounds of meat and seafood were left to spoil, resulting in significant odor and pest issues and thousands of complaints from surrounding residents. Food removal and cleanup were completed in late August.

Governor Gavin Newsom signed SB 716 and AB 817 on September 27, 2026, establishing new requirements intended to strengthen emergency preparedness and provide local governments with additional enforcement tools.

SB 716 increases potential fines for violations of local ordinances involving nonresidential structures with a footprint of at least 20,000 square feet. AB 817 requires operators of large cold-storage facilities to establish an emergency contingency fund as a condition of obtaining permits.

The legislation has drawn opposition from the Global Cold Chain Alliance (GCCA), which represents cold-storage providers. GCCA has argued that the new requirements could increase operating and construction costs, discourage investment in cold-storage capacity, and ultimately increase costs throughout the food and pharmaceutical supply chains. Following the Governor’s signing of the bills, the organization said it plans to work with lawmakers and community stakeholders during the next legislative session on potential improvements to the new requirements.

For California’s seafood and aquaculture industries, the issue is significant because cold storage is an important component of the seafood supply chain. Changes affecting the cost, availability, permitting, and emergency requirements of large refrigerated facilities could have downstream implications for processors, distributors, seafood businesses, aquaculture producers, retailers, and consumers.

The new laws also highlight a broader policy question for the seafood industry: how California can strengthen emergency preparedness and community protections while maintaining sufficient cold-chain infrastructure to support the state’s food supply.

Implementation of AB 817 and SB 716, potential regulatory guidance, and additional legislation or amendments during the 2027 legislative session could affect how the new requirements are applied to cold-storage operations throughout California.