1. San Gabriel Valley Council of Governments 2016 1

2. What Is Stormwater? Stormwater - water running over land during or immediately after a rainstorm Includes dry weather runoff from car washing, pool drainage, etc. In the San Gabriel Valley –mainly originates from paved surfaces (parking lots, playgrounds, streets, etc.) Is typically captured through local drainage systems (storm drains) owned by municipalities 2

3. How is Stormwater Managed in California? 3 California regulates stormwater through a delegation from US EPA to State Water Resources Control Board (SWRCB) and its nine regional boards The Regional Board requires municipalities to achieve Clean Water Act compliance for stormwater through an MS4 permit MS4 is an acronym that stands for Municipal Separate Storm Sewer System – and the permit has nothing to do with sewers!

4. LA Regional Board’s 2012 MS4 Permit Creates a new, watershed-focused process for compliance. A watershed is an area of land that drains all the streams and rainfall to a common outlet Places a new focus on stormwater as water supply with water quality compliance achieved through infiltration Interim compliance is now encouraged through creation of Watershed Management Programs (WMPs) and Enhanced Watershed Management Programs (EWMPs) Otherwise, achieve compliance NOW! More than 30 different TMDLs (pollutant limits) have been identified 4

5. What is an EWMP? A WMP?  EWMP  Is assumed to comprehensively evaluate opportunities in a watershed area for collaboration on multi-benefit projects that, wherever feasible, retain all stormwater runoff from an 85 th percentile, 24-hour storm event in the area  Some compliance still necessarily achieved on an individual city basis  WMP  A city may either address permit requirements on an individual basis or through a collaborative process 5

6. EWMP/WMP Groups 6 Group NameCities/PermiteesPlan Rio Hondo/San Gabriel River Arcadia, Azusa, Bradbury, Duarte, Monrovia, Sierra Madre, County, LACFCD EWMP Upper San Gabriel River Baldwin Park, Covina, Glendora, Industry, La Puente, County, LACFCD, South El Monte, West Covina EWMP East San Gabriel Valley Claremont, La Verne, Pomona, San DimasWMP Upper Los Angeles River SGVCOG Cities: Alhambra, La Canada Flintridge, Montebello, Monterey Park, Pasadena, Rosemead, San Gabriel, San Marino, South Pasadena, Temple City, County, LACFCD, South El Monte Non-COG Cities: Burbank, Calabasas, Glendale, Hidden Hills, Los Angeles, San Fernando EWMP Lower San Gabriel River SGVCOG Cities: Diamond Bar Non-COG Cities: Artesia, Bellflower, Cerritos, Downey, Hawaiian Gardens, La Mirada, Lakewood, Long Beach, Norwalk, Pico Rivera, Santa Fe Springs, Whittier, LACFCD WMP Individual CitiesEl Monte, Irwindale and WalnutIndividual WMP

7. Estimated MS4 Capital Costs (2015) ■ Total estimated capital cost for LA County exceeds $20 billion ■ Total estimated capital cost for SGVCOG cities exceeds $6 billion ■ Upper San Gabriel River EWMP, full implementation by 2040: $2,520,487,000 ■ West Covina’s estimated cost: $380,459,000 7

8. Do We Really Have to Comply?  Federal and State law allows Regional Boards to levy fines for non- compliance  Per the Regional Board, failure to comply with the MS4 Permit conditions could result in the following non-compliant fines Mandatory minimum $3,000/day per violation up to $10,000/day maximum Maximum $25,000/day per violation if imposed by state court  Furthermore, violations of Federal Clean Water Act can be enforced by US EPA and by environmental groups Federal penalties could reach $37,500/day Attorney fee availability for enviros 8

9. Stormwater Lawsuits Happen!  Between 2003-2013, there were 16 lawsuits throughout the State brought against local agencies for stormwater permit violations  12 of the 16 cases have concluded via settlements (consent decrees) Those settlements have resulted in payment of $19.2 million in penalty costs, $3.5 million in plaintiffs’ attorneys fees, and $209k in additional monitoring costs  In 2012, the City of Malibu settled with Santa Monica Bay Keeper and the Natural Resources Defense Council for stormwater runoff violations Per the settlement, Malibu paid $6.6 million ($5.6 million infrastructure upgrades, $750k in legal fees, $250k for an ocean health assessment) 9

10. Why Now? Throughout California, only LA County has a MS4 Permit that includes compliance limits for 33 TMDLs through the establishment of WMPs and EWMPs However, in affirming with modifications the LA Regional Board order, the State Water Resources Control Board stated: “We direct all Regional Boards to consider the WMP/EWMP approach to receiving water limitations compliance when issuing MS 4 permits going forward.” (Order WQ15-0075 at 50.) In January 2016, SWRCB adopted STORMS (Strategy To Optimize Resource Management of Storm Water). Values stormwater as a resource, and includes watershed-based evaluation of needs and coordinated implementation strategy 10

11. What Should Our Approach Be?  As the SGVCOG Water Committee has assessed the overall EWMP issue, we believe that our Cities need to engage in a three pronged approach: 1. Public Education 2. Advocate For Policy Change 3. Work Towards Compliance 11

12. Public Education  Stormwater issues have not been thoroughly discussed with city councils, let alone the public In addition, stormwater is such an complex topic that even municipal staff have found it difficult to engage in the subject  A coordinated public education effort is needed We must discuss both the importance of stormwater management, and the impracticality of current regulatory requirements 12

13. Advocate for Policy Change It is unrealistic to expect EWMP/WMPs to complete $6 billion worth of stormwater improvement projects in the SGVCOG region, most by 2028 to expect that property owners would approve an adequate tax increase to fund stormwater projects A coordinated lobbying effort advocating for stormwater policy changes is needed, at Regional Board, SWRCB, Legislature & Congress to e.g., Redirect state tire fee from air pollution to stormwater Seek codification of financial capability limit (November 2014 EPA policy) Seek Extended Producer Responsibility for zinc in tires, or elimination Seek state fund or no liability for groundwater pollution caused by infiltration We need more electeds to help with advocacy! 13

14. Meanwhile, Work Towards Compliance All local regional WMPs and EWMPs have now been approved! Need to demonstrate good faith efforts towards compliance – “Once the WMPs/EWMPs are approved, ensuring that they are diligently and timely implemented must remain a priority for the [LA] Board.” SWRCB Order WQ15-0075 at 53 Important to have installed water quality monitoring equipment Then, begin implementation of the most cost-effective projects The Adaptive Management Process allows for potential plan changes based upon water quality monitoring data and new information Consider partnering with the Sanitation District per SB 485 14

15. Next Steps: Seek Potential Funding Sources  $230 million in Prop. 1 Stormwater grants are available (Implementation Round 1: 7/8/16; Round 2, 2017 dates TBD)  Some municipalities are advocating for a 2% allocation of funds from the Transportation Measure R2, anticipated for the November ballot - Metro Board decision likely June 2016 Possible legislation to: Redirect state tire fee from air pollution to water that is polluted by stormwater Seek financial capability limit (November 2014 EPA policy) Seek Extended Producer Responsibility for zinc in tires, or phased elimination Seek state fund or no liability for groundwater pollution caused by infiltration Seek authorized use of existing infrastructure (LAFCD) 15

16. LA County Drought Resiliency Work Plan On April 5, 2016, the LA County Board of Supervisors voted 4-1 to create a Drought Resiliency Work Plan. The plan would be designed to implement projects that improve capture of water, improve water quality, and include geographically distributed, multi- benefit projects that benefit water management The LA Co. Department of Public Works is tasked with developing a plan for the funding system and reporting back to the Supervisors early July. The funding mechanism, if adopted by the Supervisors, would be submitted to “appropriate voters” subsequent to the Nov. 2016 general election Would this provide sufficient funding? Doubtful 16

17. Proposition 218 Implications  Proposition 218, is a property-related tax which cannot be imposed unless it is approved by the majority of property owners or by 2/3 of the electorate  However, Proposition 218 allows a protest vote process for approval of utility-related fees (i.e., water / sewer fees)  California courts have held that stormwater is not a “utility” service  However, cost of stormwater can be recovered through Prop. 218 if water supply augmented (AB 2403) – not tested yet  A proposal emerged to amend Cal. Const. Section X re Water to treat stormwater as a utility, expressly approve tiered rates, and establish low income water rates from a water revenue fund – not this year 17

18. Other Next Steps Monitor (or participate in) existing litigation City of Gardena v. State Water Resources Control Board and Regional WQCB City of Duarte v. Regional WQCB, SWRCB Natural Resources Defense Council v. State Water Quality Control Board and Regional WQCB. Los Angeles County has joined the Water Boards as defendants of the lawsuit Prepare for the next permit. The current permit expires Dec. 18, 2017 and a new application will be due 180 days prior (July 1, 2017!) 18