The California Manufacturers & Technology Association (CMTA) has raised concerns about a proposed stormwater permit in Los Angeles that could result in significant financial burdens for private businesses and institutions. The Commercial, Industrial, and Institutional (CII) Stormwater Permit is scheduled for a vote by the Los Angeles Regional Water Quality Control Board as early as November 20, 2025.
According to CMTA, the draft permit exempts public institutions such as government-run schools and hospitals from compliance costs while requiring private organizations to pay up to $325,000 per acre. This could mean that a five-acre private hospital would face more than $1.6 million in upfront expenses, whereas a public institution nearby would be 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.”
CMTA argues that despite years of stakeholder input, the Water Quality Control Board has not adequately addressed unresolved issues or provided clear guidance on who will be impacted by the regulation. The association also notes that the board’s assumptions regarding financing—such as amortizing capital expenses over 20 years at 2% interest—do not reflect current market conditions.
On November 7th, CMTA joined other business and institutional stakeholders in submitting a formal letter urging the board to reject the current draft permit and work with affected sectors on revisions. The coalition warns that implementing the permit as written could set an unfavorable precedent statewide and potentially lead to appeals or legal challenges.
“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.”
The outcome of the upcoming vote remains uncertain as stakeholders await further response from the board regarding their concerns.
