The California Manufacturers & Technology Association (CMTA) has raised concerns over a proposed stormwater permit in Los Angeles that could impose significant costs on private businesses and institutions. The Commercial, Industrial, and Institutional (CII) Stormwater Permit, which may be voted on by the Los Angeles Regional Water Quality Control Board as early as November 20, 2025, is drawing criticism for its potential financial impact and lack of clarity.
According to CMTA, the permit would require private organizations—including manufacturers, employers, schools, and hospitals—to pay up to $325,000 per acre in compliance costs. In contrast, public institutions such as government-run schools and hospitals would be exempt from these expenses. For example, a five-acre private hospital could face more than $1.6 million in upfront costs while a nearby public institution would not be affected.
“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 comments and attempts at collaboration from stakeholders, the draft permit remains vague and financially burdensome. The association points out that the Board’s assumption that capital expenses can be amortized over 20 years at just 2% interest does not reflect current financing conditions.
On November 7th, CMTA joined other business and institutional stakeholders 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 the letter warns that adopting the permit as written could set a precedent across California and might lead to appeals or legal challenges before higher authorities such as the State Water Resources Control Board.
“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 has represented manufacturers’ interests before California legislative bodies since 1918. Manufacturing accounts for roughly $300 billion annually—about 10 percent of California’s economic output—and employs 1.24 million people with wages significantly higher than other non-farm sectors.
