The Overview
If you live near a cold storage warehouse in Los Angeles, a new state law now stands between its developer and a building permit. Under AB 817, which Gov. Gavin Newsom signed on Sept. 27, 2026, Los Angeles cannot issue new building permits to certain cold-storage facilities. The law came after a fire at a Boyle Heights cold-storage warehouse burned for days, and hundreds of residents reported health problems after the fire reached an ammonia line and triggered shelter-in-place orders, according to the Los Angeles Times.
What the Law Does
A city, county, or city and county may not approve a building permit for a cold storage facility unless the owner, lessee, or operator first establishes a contingency fund to support affected communities during declared emergencies. Western Growers summarized the fund as capped at $20 million as a condition of approval, according to Western Growers. Until July 1, 2028, the bill covers only cold storage facilities within the Boyle Heights Community Plan boundaries, and it excludes from gross income any settlement a qualified taxpayer receives for claims related to the 2026 Boyle Heights fire, for tax years beginning on or after Jan. 1, 2027, and before Jan. 1, 2032.
Legislative Status
Asm. Mark González (D-CA-54) sponsored the bill, with principal coauthors Asm. Jessica Caloza (D-CA-52) and Sen. María Elena Durazo (D-CA-26). The Assembly passed the bill May 8, 2025, 69 to 0. The Senate passed it Aug. 31, 30 to 9, and the Assembly concurred in Senate amendments the same day, 55 to 19.
González said: "When disaster strikes, people should never have to fight just to be heard, their government should already be standing beside them," according to the Governor of California's announcement. The Global Cold Chain Alliance said it was disappointed the legislation moved forward in its current form, according to a GCCA statement.
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