HomeMy WebLinkAbout2021-07-08; Senate Bill No. 205 Information Update (Districts - All); Gomez, PazTo the members of the:
CITY COUNCIL
Date~CA L CC ✓
CM v ACM ✓ DCM (3) ✓
July 8, 2021
To:
From:
Via:
Re:
Council Memorandum
Honorable Mayor Hall and Members of the City Council
Paz Gomez, Deputy City Manager, Public Works
Laura Rocha, Deputy City Manager, Administrative Services
Geoff Patnoe, Assistant City Manager {f.;J
Senate Bill No. 205 Information Updatifoistricts -All)
· {cityof
Carlsbad
Memo ID #2021136
This memorandum provides an update to a previous memorandum dated April 16, 2020, on
Senate Bill No. 205 (SB 205) related to business license and stormwater permit enrollment
(Attachment A).
Background
Governor Gavin Newsom signed SB 205 on Oct. 2, 2019, and it became effective on Jan. 1, 2020.
The purpose of SB 205 is to protect water quality by requiring regulated industries to enroll in the
Industrial General Permit Program and minimize unauthorized stormwater discharges.
Among its provisions, it added Section 16000.3 to the Business and Professions Code, which
requires a person applying to a city for a new or renewed business license to demonstrate
enrollment in a National Pollutant Discharge Elimination System (NPDES) stormwater permit
program, if such a permit is required. Prior to the issuance or renewal of a business license, the
city must dete.rmine whether the applicant is required to enroll in the NPDES General Permit for
Storm Water Discharges Associated with Industrial Activities (Industrial General Permit) Program
and, if so, confirm such enrollment has occurred.
The city is subject to Order No. R9-2013-0001 as amended by Order Nos. R9-2015-0001 and
R9-2015-0100 (Municipal Stormwater Permit) issued by the California Regional Water Quality
Control Board, San Diego Region (San Diego Water Board) that regulates discharges from the
city's storm drain system. Prior to SB 205, businesses were only informed of the potential need
for Industrial General Permit coverage through the standard stormwater inspection process as
required by the Municipal Stormwater Permit. The San Diego Water Board, in theory, would then
use its resources to follow up with the businesses to ensure appropriate permit coverage is
obtained. This process will continue.
SB 205 adds to the existing process by requiring the city to withhold a business license from any
business that does not have and may need Industrial General Permit coverage. It does not
require the city to conduct any further inspections beyond the current practice or change any
requirement under the Municipal Stormwater Permit.
Public Works Branch
Environmental Management Depart ment
1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-2799 t
Council Memo -Senate Bill No. 205 Information Update (Districts -All)
July 8, 2021
Page 2
The Finance Department is responsible for issuing and renewing business licenses. This
legislation required an update to the business license application and license renewal processes.
Discussion
Staff became aware of this requirement in October 2019 and immediately began work on an
update to the business license process to comply with the new state law. Staff developed an
implementation plan that included:
• Notification to businesses identified as not currently having but potentially needing
permit coverage
• Updates to the business license application, both in paper and on line
• Updates to the business license renewal notice
• Process changes to internal record keeping between Environmental Management and
Finance Departments' staff
By January 2020, approximately 80 of the almost 10,000 licensed businesses in Carlsbad (most of
which are manufacturing facilities) were identified as not having and possibly needing Industrial
General Permit coverage. In February 2020, the Environmental Management Department sent
these businesses notifications informing them that their business licenses may not be renewed if
stormwater permit information is not complete. These notifications included a fact sheet on the
updated state law, industry categories subject to the permit, and how to apply for the state
permit.
Currently, to comply with SB 205, the Finance Department is collecting the state-assigned permit
number and Standard Industrial Classification (SIC) code in the business license records, both
during the new business license application and renewal process.
Finance and Environmental Management Departments' staff are monitoring the state's public
database to update business records with their corresponding Industrial General Permit Number
and SIC code, if applicable. Staff also flag any business that self-reports a SIC code and/or activity
subject to the permit, which requires them to provide proof of permit coverage prior to renewing
their license.
Post-inspection notifications from the Environmental Management Department to industrial
facilities include information about permit coverage. Also, during onsite facility inspections, the
Environmental Management Department staff can explain the state permit and business license
renewal process, if necessary.
Next Steps
Staff will continue to assist Carlsbad businesses with state regulatory compliance. The Industrial
General Permit Program has been incorporated into the city's daily operations.
Council Memo -Senate Bill No. 205 Information Update (Districts -All)
July 8, 2021
Page 3
Attachment: A. Council Memorandum dated April 16, 2020
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Cindie McMahon, Assistant City Attorney
Robby Contreras, Assistant City Attorney
Ryan Green, Finance Director
James Wood, Environmental Management Director
Cheryl Gerhardt, Finance Manager
Tim Murphy, Senior Program Manager
, I
To the members of the:
J=lfi COUNCIL
Date~ CA ✓ cc ..JL
CM .:JL..ACM V' OcM (3) \(
April 16, 2020
ATTACHMENT A
Council Memorandum
To: Honorable Mayor Hall and Members of the City Council ·
From: Paz Gomez, Deputy City Mana'ger, P~blic Works
Laura Rocha, Deputy City Manager, Administrative Services
Via: _ Geoff Patnoe, Assistant City Manager {fjp
Re: · Senate Bill No. 205 Information
{city of
Carlsbad
Memo ID# 2020059
This memorandum provides information related to Senate Bill No. 205 (SB 205) that was signed_
by Governor Gavin Newsom on Oct.· 2, 2019, which requires the city to update its business
license process. · '
Bac!cground _ _
SB 205 was signed by Governor Gavin Newsom on Oct. 2; 2019, and became effective Jan. 1, ·
2020. Among its provisions, it added Section 16000.3 to the Business and Professions Code,
which requires a person applying to a city for a new or renewed business license to demonstrate
enrollment in a National Pollutant Dis~harge Elimination System (NPDES) storm water permit
program, if sui:h a permit is required. Prior to the issuance or renewal of a business license, the
city must determine whether the applicant is required to enroll iri the NPDES General Permit for
Storm Water Discharges Associated with Industrial Activities (Industrial General Permit) program
and, if so, confirm such enrollment has occurred. .
The purpose of this bill is.to protect water quality by requiring regulated industries to enroll in
the Industrial General Permit program and minimize unauthorized storm water discharges.
The state Industrial General Permit identifies nine categories of facilities subject to enrollment:
1. Feedlots of a specific size -
2. Manufacturing facilities
3. Oil and gas or mining facilities
4. Hazardous waste treatment, storage or disposal facilities
5. Landfills, land application sites and open dumps
.6. Recycling facilities
7. Steam electric power generating facilities
8. Transportation facilities
9. Sewage or wastewater treatment works
Public Works Branch
Environmental Management Department
1635 Faraday Ave. I Carlsbad, CA 92008 I 760-602-2799 t
Honorable Mayor Hall and Members of the City Council
April 16, 2020
Page 2
The City of Cadsbad is subject to Order No. R9-2013-0001 as amended by Order Nos. R9-2015-
' 0001 and R9-2015-0100 (Municipal Storm Water Permit) is·sued by the California Regional Water
Quality Control Board, San Diego Region (San Diego Water Board) that regulates discharges from
the city's storm drain system. Prior to SB 205, the city had been required by the Municipal Storm
Water Permit for many years to inspect these types of in,dustrial facilities and report any business
that may need Industrial General Permit coverage to the San ·Diego w_ater Board. The San Diego
Water Board, in theory, would then use its resources to follow up with the business to ensure
appropriate permit coverage is obtained. This proi:;ess will continue. ·
SB 205 adds to the existing process by requiring the city to withhold a business license from any
business that does not have and may need Industrial General Permit coverage. It does not
require the city to conduct any further inspections beyond the current practice or, change any
requirement under the Municipal Storm Water Permit.
The Finance Department is responsible for issuing and renewing bu~iness licenses. This •
legislation required an update to the business license application and license renewal processes.
Discussion
Staff became aware of this requirement in October 2019 and immediately began ·work on an
update to the business license process to comply with the new state law. Staff developed an
implementation plan that included:
• Notification to businesses identified as not currently having but potentially needing
permit coverage
• Updates to the· business license application, both in paper and online
• Updates to the business license renewal notice
• Process changes to internal record keeping between Environmental Management and
Finance DepartnJents' staff. ·
By January 2020, approximately 80 of the almost 10,000 licensed businesses in Carlsbad (niost of
which are manufacturing facilities) had been identified as not' having and possibly needing
Industrial General Permit coverage. If! early February, these businesses were sent notifications
from t,he Environmental Management Department informing them that their business license
may not be renewed .if storm water per_mit information is not complete. These notifications
included a fact sheet on the updat_ed state law, industry categories subject to the permit and
how to apply for the state permit.
Next Steps
SB 205 impacts only businesses required to be covered by the Industrial General Permit.
Starting on March 1, 2020, renewal notices sent to businesses that have been identified as
potentially needing the state permit required the businesses to submit their state-assigned
Public Works Branch
Environmental Management Department
1635 Faraday Ave. I Carlsbad, CA 92008 I 760-602-2799 t
Honorable Mayor Hall and Members of the City Council
April 16, 2020
Page 3
permit number and Standard Industrial Classification (SIC) code. Finance Department wiil begin
to collect this information in the business license records, both during the new ~usiness license
application and renewal process. Li!=ense renewals sent prior to March 1, 20·20 will be followed
up with to make sure they are aware of and comply with the requirement.
l I
Finance and Environmental Manag~ment Departments' staff will monitorthe state's public
database to ·update business records with their corresponding Industrial General Permit Number
and SIC code, if applicable. Staff will also flag any business that self-reports an SIC code and/or
activity subject to the permit, and require them to provide proof of permit coverage prior to
ren·ewing their license.
Post-inspection notifications from Environmental Management Department to industrial facilities
will include information about permit coverage and business license renewal. Also, during on-site
facility inspections, Epvironmerital Management Department staff can explai·n the state.permit
and business license renewal process.
As always, city staff remain committed to communicating and assisting businesses in Carlsbad
with this new legislation.
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney ·
Cindie McMahon, Assistant City Attorney
Ronald Kemp, Assistant City Attorney
Kevin Branca, Finance Director
James Wood, Environmental Manager
Public Works Branch
Environmental Management Department
1635 Faraday Ave. I Carlsbad, CA 92008 I 760-602-2799 t