FOR IMMEDIATE RELEASE
September 27, 2026

CREDA SoCal Statement on Governor Newsom’s Signing of SB 716 and AB 817

Sacramento, Calif. — Today, California Governor Gavin Newsom signed SB 716 and AB 817, two bills addressing cold storage facilities and the response to the Boyle Heights fire.

CREDA SoCal recognizes the severity of the Boyle Heights disaster and supports holding responsible parties accountable. However, we expressed concerns about how the Legislature’s response could affect commercial and industrial properties across California.

CREDA SoCal opposed SB 716 and formally requested, along with a large coalition, that Governor Newsom veto the measure. As signed, SB 716 establishes a sweeping statewide penalty structure affecting nearly every nonresidential building in California that is 20,000 square feet or larger, regardless of use.

CREDA SoCal is concerned that the legislation broadly encompasses warehouses, manufacturing plants, laboratories, restaurants, theaters, churches, stadiums, and other properties that have nothing to do with cold storage, while creating uncertainty regarding penalty provisions that are unclear and ambiguous how they will be applied.

“We are disappointed that Governor Newsom signed SB 716 despite CREDA SoCal’s strong opposition and our formal request for a veto,” said Timothy Jemal, CEO of CREDA SoCal. “We do not believe this rushed bill accomplishes the goal it was intended to serve, and we remain concerned about the breadth and ambiguity of its provisions.”

SB 716 was substantially amended just three weeks before the end of the legislative session. The measure initially received only two “aye” votes in the Assembly Local Government Committee. It was subsequently advanced through a procedural process that moved the bill to the Assembly and Senate floors under a compressed timeline, with amendments made less than 48 hours before the final vote.

CREDA SoCal initially opposed AB 817 after it was substantially amended three weeks before the end of session. We subsequently worked with coalition partners and Assemblymember González to secure amendments that limit the bill’s initial application to the Boyle Heights facility in 2027, rather than immediately imposing the broader statewide requirements.

Under the amended legislation, a city, county, or city and county may not approve a building permit in Boyle Heights for a cold storage facility 20,000 square feet or larger unless the facility’s owner, lessee, or operator establishes and maintains a contingency fund for use during a declared national, state, or local emergency. The legislation provides for statewide application beginning in 2028.

Following those amendments, CREDA SoCal removed its opposition to AB 817 and looks forward to continuing discussions with Assemblymember González and other stakeholders regarding the measure’s statewide application.

“We appreciate Assemblymember González’s willingness to work with impacted stakeholders and focus this bill on Boyle Heights, where the disaster occurred, rather than moving to statewide application immediately,” said Jemal. “We look forward to working through our remaining concerns with Assemblymember González’s office before any statewide expansion takes effect.”

CREDA SoCal will work to seek legislative fixes and greater clarity regarding SB 716 and the future statewide application of AB 817, while supporting our members as they work to understand and comply with the new requirements.