Water Quality and Supply Issues Monthly Update-MARCH 2025
As we transition into spring, California’s regulatory landscape is shifting as well. State agencies, legislators, and public works officials are actively working on water quality policies that could directly impact the permits required for building and construction.
Here’s what you need to know this month:
✅ Major Supreme Court Ruling on Water Quality Permits
The U.S. Supreme Court issued its decision on a case brought by the City and County of San Francisco, challenging specific language in its National Effluent Discharge Elimination Permit. This ruling could reshape how municipalities and industries—including construction—manage stormwater runoff compliance, potentially increasing costs and enforcement measures.
🏛️ Legislative Alert: SB 601 – A "Housing Killer"?
A new bill in the California Senate, SB 601 (Sen. Allen), proposes sweeping and costly stormwater management permit conditions. If passed, it would impact a wide range of project types, significantly raising costs for builders and developers. The California Building Industry Association warns this bill could cripple housing development in the state. Read more on why the industry is pushing back.
🔄 Stormwater Credit Trading: A New Funding Solution?
CICWQ recently joined experts from the City of Anaheim and City of San Pablo at the League of California Cities Public Works Officers Institute to discuss innovative stormwater credit trading programs. These programs could provide municipalities with new funding options for infrastructure while offering developers a pathway to meet permit requirements. Access the full panel presentation below.
🔥 How Water Supply Affects Firefighting – What We Can Learn from Recent Wildfires
What role does water supply reliability play in wildfire response? CICWQ’s Principal Technical Director, Mark Grey, has authored a must-read analysis on how recent Los Angeles County wildfires exposed vulnerabilities in California’s water infrastructure. He also debunks media myths and outlines key takeaways for public works officials, utilities, and property owners. Stay informed—this insight could help protect homes and businesses in the future.
Stay tuned as CICWQ continues to monitor and advocate on these critical issues.
MARCH NEWSWORTHY ITEMS
Supreme Court of the United States (SCOTUS) Decision: City and County of San Francisco v. U.S. EPA
In the first week of March 2025, the Supreme Court of the United States (SCOTUS) issued its decision in City and County of San Francisco v. United States Environmental Protection Agency on appeal from the Ninth Circuit Court of Appeal. The challenged provisions in this case are the receiving water limitations that are standard in practically all national pollutant discharge elimination system (NPDES) permits issued by the California State Water Resources Control Board and nine regional water quality control boards operating throughout California.
The impact of receiving water limitations in municipal separate storm sewer system (MS4) permits has been a contentious issue for decades and litigated many times in federal and state courts. Notwithstanding previous litigation, however, this is the first SCOTUS decision on receiving water limits, and it may significantly impact Water Board NPDES permits and the terms of such permits now and moving into the future.
2025 California Legislative Session Bill Alert: SB 601 (Allen)
Legislative analysts advising the construction and housing industries tell us to be on the look-out for a troublesome piece of proposed legislation, SB 601 (Allen), which would, if enacted greatly increase permitting burdens related to wetlands and water quality regulation via all types of municipal separate storm sewer system (MS4) permits and the Construction General Permit for stormwater. Here is a summary of three of the most egregious provisions, greatly expanding the state’s regulatory reach:
1. SB 601 requires industries regulated under section 402(p) of the Clean Water Act (CWA) that are applying to local governments for building or construction permits to prove their enrollment under applicable NPDES permits or Waste Discharge Requirements Orders. Note, this program is already in place for those subject to the State’s Industrial Permit. The bill expands the program to all businesses that would be subject to MS4 permits and the Construction General Permit for stormwater discharges.
2. SB 601 would amend the Porter-Cologne Water Quality Control Act (Porter-Cologne) in a manner that applies the more stringent federal Clean Water Act beneficial use designation, water quality objective setting, permitting regulations, and citizen suit provisions to waters of the State that are no longer WOTUS due to the ruling in Sackett v. EPA, which are labeled Nexus waters in the bill. (Note: non-WOTUS waters of the state are already regulated by water boards and CDFW—there is NO gap in regulation of non-WOTUS waters of the state in California).
3. SB 601 bill would require water boards to impose more stringent effluent limitations/waste discharge requirements in both NPDES permits for discharges to WOTUS and WDRs for discharges to Nexus waters, which is a brand new definition, never before introduced or used in California water code.
CICWQ Delivers Panel Presentation on its Role in Developing Stormwater Credit Trading Programs at the California League of Cities – Public Works Officers Institute
Municipalities are increasingly turning to Stormwater Credit Programs as an innovative funding solution. These programs generate revenue by selling stormwater capture credits to regulated dischargers—helping cities meet compliance, fund projects, and enhance water quality. CICWQ’s Dr. Mark Grey is part of a three-person panel covering this exciting topic at the California League of Cities, Public Works Officers Institute, held on March 19-21, 2025 at the Sheraton Universal Hotel, in Universal City, California. Dr. Grey’s presentation covers CICWQ’s more than 10 years of engineering and economics research into developing urban-based, stormwater credit trading programs in collaboration with Orange County Public Works and cities and utility districts located in Orange County.
January 2025 Wildfire in Los Angeles County and Water Supply Reliability – What Happened and What Can We Learn
CICWQ’s Principal Technical Director, Mark Grey, recently authored an analysis of the recent Los Angeles County wildfires, and how water supply reliability impacted the fire fighting effort to protect homes and businesses. Prepared for Building Industry Association of Southern California, the article begins by reviewing the extraordinary weather conditions fueling the wildfire and examining some of the wild misconceptions spread in the news media in the fire’s immediate aftermath. It then goes on to cover what went wrong and right in the response, and what we (public works – water utilities – homeowners – businessowners) can do to protect ourselves and property in the future.
