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California bills would raise fines and require contingency funds for cold storage
One measure would require new cold storage facilities over 20,000 square feet to set aside contingency funds up to $20 million, while another would increase penalties for major violations.
Two bills tied to the Boyle Heights warehouse fire are before California Gov. Gavin Newsom, and they would add new financial requirements and higher penalties for cold storage developers and operators, according to Bisnow.
One bill, SB 716, would levy higher penalties for violations at large commercial buildings, including cold storage facilities, when major violations occur. The other bill, AB 817, would require new cold storage facilities larger than 20,000 square feet to create and maintain a contingency fund up to $20 million as part of the approval process for building.
Commercial Real Estate Development Association of Southern California CEO Tim Jemal said the tragedy in Boyle Heights was “terrible” but warned that sweeping punitive rules could make it harder to build new refrigerated facilities in California, noting that many operators already comply with other regulatory requirements.
The bills are intended to reduce future cleanup and safety headaches after incidents, and LA Mayor Karen Bass said the legislation aims to hold cold storage companies accountable when something goes wrong to protect surrounding communities. The Boyle Heights fire burned for a week in mid-June, with removal and cleanup completed Aug. 29, Bisnow reported.