The California Manufacturers & Technology Association (CMTA) has raised concerns about a proposed stormwater permit from the Los Angeles Regional Water Quality Control Board, warning that it could impose significant financial burdens on private businesses and institutions in Southern California.
The draft Commercial, Industrial, and Institutional (CII) Stormwater Permit is scheduled for a possible vote on November 20, 2025. CMTA claims the proposal lacks clarity regarding its scope and costs, which could lead to confusion among affected organizations.
According to CMTA, the permit would require private entities such as manufacturers, employers, schools, and hospitals to pay up to $325,000 per acre in compliance costs. In contrast, public institutions like government-run schools and hospitals would be exempt from these fees. For example, a five-acre private hospital might face more than $1.6 million in upfront expenses while a public hospital nearby would not have similar obligations.
Lance Hastings, President & CEO of CMTA, stated: “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. 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 also criticized the Board for not adequately engaging with stakeholders or addressing concerns raised during previous consultations. The association argues that assumptions made by the Board—such as capital expenses being amortized over 20 years at just 2% interest—do not reflect actual financing conditions faced by businesses.
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 those affected to resolve outstanding issues.
The coalition behind this letter warns that if adopted without changes, the permit could set an unfavorable precedent across California and may lead to appeals or legal challenges at higher regulatory levels.
Hastings added: “This isn’t about opposing environmental progress, it’s about ensuring fair, practical, and transparent rules. 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 manufacturing interests in California. Manufacturing output contributes approximately $300 billion annually—about 10 percent of California’s total economic activity—and provides jobs for over 1.24 million people with wages notably higher than other non-farm sectors.
