September 2, 2016

The California Supreme Court issued an opinion that broadens the scope of what is considered to be “reimbursable mandates.” The Court found that when a Regional Water Quality Control Board adds requirements to stormwater permits that are not mandated by the federal Clean Water Act, but rather are within the Board’s discretion, such requirements are reimbursable mandates. The California Department of Finance argued that the permit conditions are necessary to implement federal Clean Water Act standards, and the State is therefore not required to provide funding to local agencies to carry out the challenged permit conditions.

The Supreme Court disagreed, finding instead that no federal law specifically required the permit conditions at issue in the case. Instead, the Court held that the permit conditions were imposed as a result of the state’s discretionary action, and are therefore reimbursable mandates. The decision is significant for all agencies in their efforts to fund expensive water permit conditions, and may have a broader impact on other federal programs administered by the State. CSAC’s Litigation Coordination Program supported Los Angeles County (one of the agencies seeking reimbursement in this case) in its effort to obtain Supreme Court review, and also filed a brief in support of the County in the case.