California businesses and municipalities need to be aware of Senate Bill 205 (Hertzberg). The bill was introduced on February 04, 2019 and is currently going through the review/amendment process. This bill requires businesses applying for or renewing their businesses licenses to provide their Standard Industrial Classification Code (SIC), and if required, show proof of enrollment in California’s Industrial General Stormwater Permit (IGP).¹ The purpose of this bill is to capture many of the non-filer businesses who are currently operating without IGP coverage.
If adopted, businesses applying for or renewing their license need to be aware that they must select the most representative SIC code for their operations. Based on the SIC code selected, the need for IGP coverage may apply. There are roughly 882 SIC Codes that trigger the need for IGP coverage (e.g., manufacturing, transportation, warehousing, mining, etc.). In the event IGP coverage is warranted and full permit coverage is required, specific SIC codes selected may require sampling for additional pollutants beyond the basic required monitoring parameters. Further, businesses located in specific watersheds may also have additional, more stringent requirements imposed upon them due to downstream waterbody impairments with Total Maximum Daily Loads (TMDLs) (see our October 2018 article entitled “Industrial General Stormwater Permit Amendments”). The majority of the TMDL waterbodies are located in the Los Angeles Region, but do exist statewide depending on the watershed.
If you are relying on your HR or Accounting department to complete your business license renewals, selecting the wrong SIC Code, or something different than what is provided in your current IGP (if you already have IGP coverage), can result in violations or third-party lawsuits down the road. It will be important to check with your environmental team/consultants and/or legal team to better understand the SIC code and related requirements.
Municipalities also need to be aware of this potential change as it will require additional effort on their part to track and comply with these requirements. Specific text from the bill states “The bill would require the State Water Resources Control Board, on or before April 1, 2020, to post on its internet website a list of applicable Standard Industrial Classification codes for the purpose of confirmation by cities or counties, and would require the state board to update that list annually.” These requirements will also apply to charter cities charter counties and charter cities and counties.
The full text of the bill can be found at https://legiscan.com/CA/text/SB205/id/1889626
By your Weather-Ready Nation Ambassadors at NV5
David Renfrew, Vice President, Water Resources Director