HomeMy WebLinkAbout2020-04-16; Senate Bill No. 205 Information; Gomez, Paz= '
To the members of the:
CITY COUNCIL .
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April 16, 2020
Council Memorandum
To: Honorable Mayor Hall and Members of the City Council ·
From: Paz Gomez, Deputy City Mana'ger, Public Works
Laura Rocha, Deputy City Manager, Administrative Services
Via: . Geoff Patnoe, Assistant City Manager (/jt,
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. · '
Bacl<ground _
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 Discharge Elimination System (NPDES) storm water permit
program, if such 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 Carlsbad 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 industrial 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 pro1=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 on line
• Updates to the business license renewal notice
• Process changes to internal recordkeeping 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 arid possibly needing
·Industrial General Permit coverage. In early February, these businesses were sent notifications ' .
from tpe Environmental Management Department informing them that their business license
may not be renewed if storm water 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.
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 l:?usiness license
application and renewal process. License renewals sent prior to March 1, 2620 will be followed
up with to make sure they are aware of and comply with the requirement.
I I
Finance and Environmental Manag~ment Departments' staff will monitor the 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 Enviro~mental Management Department to industri.al facilities
will include information about permit coverage and business license renewal. Also, during on-site
facility inspections, Environmental Management Department staff can explafn the state permit
and business license renewal p~ocess.
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