The Global Cold Chain Alliance (GCCA) recently issued a statement outlining concerns about California legislation AB 817 and SB 716, introduced after a June 17 warehouse fire in the Boyle Heights neighborhood of Los Angeles. The organization, which represents companies across the temperature-controlled supply chain, said the bills could affect cold storage operations and investment across the state.

GCCA said the legislation could raise cold storage costs for businesses across the food and pharmaceutical supply chains, including growers, processors, distributors, manufacturers, and retailers. The organization also said the measures could limit facility improvements related to energy efficiency and safety while creating additional barriers to doing business in California. According to GCCA, small and midsized operators, including family-owned businesses, could face particular challenges under the proposed legislation.

GCCA is working with California policymakers, community leaders, and the governor's office on policies related to emergency preparedness and response. The association called for additional stakeholder involvement and further consideration of the legislation, specifically to veto the two bills.

What this means for the trucking industry

Changes affecting California's cold storage infrastructure could have implications beyond warehouse operators because temperature-controlled transportation depends on the availability and location of cold storage facilities. If the legislation affects facility investment, operating costs, or capacity as GCCA contends, refrigerated carriers and other supply chain partners could face changes in how freight moves through the state.