California Governor Gavin Newsom signed two new laws on Sunday aimed at enhancing safety regulations for industrial companies in the wake of a large fire at a cold storage warehouse in Boyle Heights this past June.
The legislation, prompted by the June 17 blaze at Lineage’s 500,000-square-foot food storage facility, responds to community concerns following the incident, which produced hazardous smoke and a significant increase in rodents and insects in the surrounding area. The fire raised questions about preparedness and accountability for industrial operators in similar emergency situations.
One of the bills, Senate Bill 716, introduced by Senator María Elena Durazo (D-Los Angeles), increases the maximum fines local agencies may impose on companies that pose health and safety risks. Previously, fines were limited to a few hundred or thousand dollars; under the new law, violations could result in fines up to $50,000 each. The bill includes exemptions for institutional and educational organizations.
The second measure, Assembly Bill 817, authored by Assemblymember Mark González (D-Los Angeles), mandates that new cold storage facilities must either establish a contingency fund or carry insurance designated for emergency responses before obtaining building permits. This requirement is designed to ensure that communities have immediate financial resources available to address the fallout from potential future incidents.
Both laws will initially take effect at the local level but are not scheduled to be enforced statewide until July 1, 2028.
Business groups and some Republican legislators expressed opposition to the bills, arguing that increased regulatory costs could ultimately lead to higher prices for companies and consumers.
Lineage, the operator of the Boyle Heights facility, has not provided official commentary on the legislation. However, Gregory Lehmkuhl, the company’s president and CEO, stated in a recent earnings call that Lineage has allocated $3.3 million to assist the community following the fire.
Governor Newsom emphasized the need for the new rules in light of the fire’s consequences. In a statement, he said the incident highlighted the “lasting impact a major facility emergency can have on a community,” and that the laws would “strengthen the tools, resources and accountability needed to protect residents and help communities respond when emergencies happen.”