Senate Bill 589 Municipal Separate Storm Sewer Systems:
Financial Capability Analysis
Purpose
It will take time to align the appropriate resourcesto effectively manage stormwater as a utility. Stormwater management cannot be viewed in a silo, but as an integrated component of our sanitary sewer, drinking water, flood control and transportation infrastructure. However, communities across the state vary with respect to economic strength, staffing capacity, infrastructure and geotechnical challenges and thus need greater flexibility in pathways for compliance with Municipal Separate Storm Sewer System (MS4) permits.
To better understand the financial burden stormwater management places on cities and municipalities, SB 589 establishes a financial capability analysis pilot project through the Los Angeles Regional Water Quality Control Board and an accompanying independent or educational entity. The project will be overseen by the State Water Resources Control Board, which will then give recommendations for statewide implementation. The State Board, regional boards, and local governments are encouraged to prioritize stormwatermanagement amongst their many competing obligations, while maintaining environmental protections for the region’s vulnerable disadvantaged communities.
Background
The federal law commonly known as the Clean Water Act (CWA) was initially adopted in 1972 through amendment of earlier federal legislation. It was amended in 1987 to include municipal permit requirements. The CWA contains requirements for cities and counties (also known as permittees) to obtain National Pollution Discharge Elimination Discharge System (NPDES) permits to operate their MS4 permits. MS4 permits serve as licenses for permittees to discharge stormwater into receiving waters, and are revocable, and enforceable. Many local governments are also required to implement Total Maximum Daily Loads (TMDLs), which establish waste load allocations of pollutants and compliance schedules. Cities and counties must also comply with the Safe Drinking Water Act and other regulations for the operation of drinking water and waste water systems.
Porter-Cologne was adopted by the State in 1969. It authorized the State Water Resources Control Board (SWRCB) and the nine Regional Water Quality Control Boards (RWQCBs) to implement federal and state water quality regulations.
Integrated water quality requirements of drinking water, sanitary sewer, flood control and stormwater programs require significant investments, along with ongoing operations and maintenance costs. EPA first adopted FCA factors in 1997 to assess these costs, the burden on households and to help find the most cost-effective ways to meet CWA objectives. The agency issued new FCA guidance in November 2014 to develop a framework to aid in negotiating schedules of compliance when communities are faced with implementing multiple water quality requirements. The FCA process is designed to assist regulators and the MS4 permittees in prioritizing water quality improvements and schedulesof compliance after a careful consideration of the financial capabilities of communities.
The U.S. Conference of Mayors (Mayors) worked with EPA to revise the FCA policy. As part of the revision process the Mayors completed an affordability survey that examined the financial capability of a diverse group of California cities. Based on the survey results, the Mayors released Public Water Cost Per Household: Assessing Financial Impacts of EPA Affordability Criteria in California Cities in November 2014 urging EPA to exercise greater flexibility when imposing water quality mandates on communities. The study reviewed over 30 California cities in relation to EPA’s affordability criteria under the FCA and found that 10 cities had 20% or more of households that exceeded spending 4.5% of annual income on combined water costs including water, sewer and flood control programs. This 4.5% threshold triggers what EPA considers a “high burden” on the average household and thus triggers the flexible schedule of compliance.
Moreover, this study was completed prior to the implementation of the most recent MS4 permits, which could result in additional financial burdens. Given that most cities do not have a dedicated revenue source for stormwater management, these costs can often compete with other public services provided by local governments’ general fund, including the provision of law enforcement, fire and paramedics, traffic and transportation infrastructure, street and road repairs, maintenance of parks and open spaces, along with other programs.
This Bill
Senate Bill 589 requires the State Water Resources Control Board to create financial capability analysis guidelines for assessing the capability of certain municipalities to implement effluent limitations and control measures pursuant to the Porter-Cologne Water Quality Control Act. To implement these guidelines, the California Regional Water Quality Control Board, Los Angeles region would oversee a pilot project conducted by an independent or educational entity in that region. The State Board would oversee the implementation of the guidelines, and use them to make statewide recommendations upon completion of the financial capability assessment. SB 589 does not alter or waive water quality standards, but provides an effective tool for determining the extent of financial burden that stormwater management places on cities and municipalities.
Contact
Susan Reyes, Legislative Aide
Office of Senator Ed Hernandez, O.D.
(916) 651-4022
Kristine Guerrero, Legislative Director/Regional Public Affairs Manager
Los Angeles County Division, League of California Cities® (Sponsor)
(626)716-0076