The California Manufacturers & Technology Association (CMTA) has called on the Los Angeles Regional Water Quality Control Board to reconsider a proposed stormwater permit that could impose significant costs on private businesses and institutions in Southern California. The Commercial, Industrial, and Institutional (CII) Stormwater Permit is scheduled for a possible vote as early as November 20, 2025.
According to CMTA, the draft permit would require private organizations—including manufacturers, employers, schools, and hospitals—to pay up to $325,000 per acre in compliance costs. Public entities such as government-run schools and hospitals would be exempt from these fees. For example, a five-acre private hospital could face more than $1.6 million in upfront expenses while a public institution nearby would not incur any charges.
“The lack of clarity in this proposal means that countless businesses and organizations may not even know they’re affected until it’s too late,” said Lance Hastings, CMTA President & CEO. “The Board has a responsibility to clearly define who this Permit covers, ensure transparency, and meaningfully address ongoing concerns and significant costs before rushing to adopt it. We strongly urge the Board to pause and address these serious issues before moving forward.”
CMTA argues that despite several years of stakeholder input and attempts at collaboration, the board has not resolved key concerns related to the permit’s scope or financial impact. The association points out that assumptions about financing—such as amortizing capital expenses over 20 years at just 2% interest—do not reflect current market conditions and could leave businesses with substantial unrecoverable costs.
On November 7th, CMTA joined other business groups in submitting a formal letter urging the board to reject the current draft of the permit and work directly with affected sectors to resolve outstanding issues. The coalition also warned that adopting the permit as written could set a precedent across California and might lead to appeals or legal challenges if passed.
“This isn’t about opposing environmental progress, it’s about ensuring fair, practical, and transparent rules,” Hastings said. “California manufacturers lead the nation in sustainability, but they need clear, achievable standards that don’t jeopardize their ability to operate or remain competitive in the state.”
CMTA represents manufacturers across California—a sector responsible for approximately $300 billion annually in economic output—and advocates for policies supporting growth and competitiveness within the state.
