Existing law authorizes a municipal wastewater agency to enter into agreements with entities responsible for stormwater management, including, but not limited to, municipal, industrial, and commercial stormwater dischargers, for the purpose of managing stormwater and dry weather runoff. Existing law requires a municipal wastewater agency, if the agency enters into a new agreement or amends an agreement pursuant to those provisions, to file a copy of the agreement or amendment with the local agency formation commission in each county where any part of the municipal wastewater agencys territory is located within 30 days after the effective date of the new agreement or amendment.

This bill would extend that filing requirement timeline to 40 days.

SENATE COMMITTEE ON LOCAL GOVERNMENT

Senator María Elena Durazo, Chair

2025 - 2026 Regular

Municipal wastewater agency: new agreement or amendment

Extends, by 10 days, the timeframe that a municipal wastewater agency has to file with the applicable local agency formation commission a copy of an agreement or amendment for managing stormwater or dry-weather runoff.

Background

Wastewater agencies. Many types of public agencies in California manage wastewater, including cities, counties, sanitary districts, county sanitation districts, community services districts, and municipal utility districts. These different types of agencies share commonalities, including:

• The authority to acquire, construct, operate, and maintain infrastructure necessary to collect, treat, and dispose of sewage and other wastes;
• Governing boards comprising elected members, who are either directly elected by voters or ex officio city councilmembers or county supervisors; and
• The ability to levy taxes, assessments, and fees for the services they provide.

Some wastewater agencies are single-purpose districts formed solely for the purpose of managing wastewater, while for others, such as community services districts, wastewater management may only be one responsibility among many. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 establishes the framework for determining where local agencies can provide services and which of their powers they can use. The Local Agency Formation Commission (LAFCO) in each county sets the boundaries of cities and special districts in their county and controls the powers that they can exercise. A LAFCO must authorize a local agency to use any “latent powers”—powers that state law grants the agency but the agency has not yet exercised.

Stormwater and dry weather runoff. Rainwater and runoff from manmade sources, such as irrigation, builds up on impermeable surfaces, picking up pollutants as it travels across urban landscapes, down rivers, and runs into lakes and the ocean. Left untreated, stormwater and (dry weather) urban runoff can negatively affect water quality. To protect rivers, lakes, and oceans, the federal Clean Water Act (CWA) requires the states to reduce pollution from stormwater and urban runoff. Under the CWA, municipalities that discharge water into rivers, lakes, and oceans must obtain and comply with a Municipal Separate Storm Sewer Systems (MS4) permit. In California, the federal government has delegated enforcement authority for the CWA to the State Water Resources Control Board (SWRCB). SWRCB and the nine Regional Water Quality Control Boards (RWQCBs) are increasingly pushing counties, cities, and special districts to reduce urban runoff and stormwater discharges under the MS4 permit requirements.

While stormwater is a major source of contaminants in bodies of water, when properly treated it can become a valuable locally-generated water supply. Thus, capturing stormwater can provide multiple benefits, including to improve water quality, boosting water availability, and to lessen dependence on water imported from other parts of California. In July 2020, the Newsom administration adopted a “water resilience portfolio” that lays out a strategy to meet multiple water-related goals and increase the state’s resilience. The portfolio includes policies to diversify water supplies, protect natural ecosystems, build connections between water systems, and prepare for weather extremes and other water system stressors. Among these recommended policies is to provide statewide authority for wastewater facilities to accept stormwater and encourage stormwater permittees to divert captured stormwater at times when wastewater facilities can accept it.

Because they already have responsibility for collecting contaminated water, removing pollutants, and discharging it safely, wastewater agencies can be well positioned to assist in treatment and reuse of stormwater and urban runoff. SB 273 (Hertzberg, 2021) explicitly authorized a municipal wastewater agency to acquire, construct, expand, operate, maintain, and provide facilities for any of the following:

• The diversion of stormwater and dry weather runoff from the stormwater system to the wastewater collection or treatment system;
• The management and treatment of stormwater and dry weather runoff;
• The discharge of treated dry weather runoff and stormwater to the stormwater drainage system or receiving waters; and
• The beneficial reuse of captured dry weather runoff and stormwater.

The bill also allowed a wastewater agency to enter into agreements with entities responsible for stormwater management, including, but not limited to, municipal, industrial, and commercial stormwater dischargers. If the agency enters into a new agreement or amends an agreement, it must file a copy of the agreement or amendment with the LAFCO in each county where any part of the municipal wastewater agency’s territory is located within 30 days after the effective date of the new agreement or amendment.

The author wants to give wastewater agencies more time to file any agreements with the applicable LAFCO.

Proposed Law

Senate Bill 740 extends, from 30 days to 40 days, the timeframe that a wastewater agency has to file with the applicable LAFCO a copy of an agreement or amendment for managing stormwater or dry weather runoff that the agency has entered into with an entity responsible for stormwater management.

Comments

1. Purpose of the bill. According to the author, “As a former city council member, I understand the important role municipal wastewater agencies play in their regions when it comes to managing stormwater and dry weather runoff. This bill makes a simple change to specify when municipal wastewater agencies must file updates about this work with any relevant local agency formation commission.”

2. Coming and going. The Senate Rules Committee has ordered a double referral of SB 740: first to the Committee on Local Government to hear issues related to local government organization and duties, and second to the Committee on Environmental Quality.

Support and Opposition

(3/28/2025)

Support: None Submitted

Opposition: None Submitted

-- END --