News & Insights

CMTA Sounds the Alarm on the Unclear and Unaffordable Mandate

Los Angeles, Calif. – The California Manufacturers & Technology Association (CMTA) is urging the Los Angeles Regional Water Quality Control Board to halt consideration of a costly and poorly defined stormwater Permit that could devastate manufacturers, private employers, schools, hospitals, and community institutions across Southern California.

The proposed Commercial, Industrial, and Institutional (CII) Stormwater Permit could be voted on as soon as November 20, 2025, despite major unresolved issues and widespread confusion about who it would apply to and at what cost.

The proposed Permit blatantly picks winners and losers, exempting public institutions while forcing private organizations to shoulder massive new costs. Government-run entities like schools and hospitals would pay nothing, while their private counterparts could face up to $325,000 per acre in compliance costs. That means a five-acre private hospital could owe more than $1.6 million upfront, while the public institution across the street is completely exempt.

“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.”

Despite years of written comments and attempted collaboration, the Board has failed to meaningfully engage with stakeholders to resolve significant ongoing concerns. The draft Permit remains vague, duplicative, and financially unworkable. For example, the Board assumes capital expenses can be amortized over 20 years at just 2% interest, ignoring real-world financing conditions and saddling businesses with millions in unrecoverable upfront costs.

On Friday, CMTA, joined by a broad coalition of business and institutional stakeholders, submitted a formal letter urging the Board to reject adoption of the current draft and direct staff to work directly with affected sectors to fix the outstanding issues. Click here to read the letter.

The coalition warns that adopting the Permit in its current form could set a damaging statewide precedent and expose the Permit to appeal to the State Water Resources Control Board and possible legal challenges. So far, the Board has not indicated whether it will heed these concerns or delay the vote.

“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.”

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About CMTA
The California Manufacturers & Technology Association (CMTA) has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $300 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.24 million Californians paying wages more than $25,000 higher than other non-farm employers in the state.