Senate Bill 205 - Business License Requirements

Senate Bill 205 - Business Licenses: Storm Water Discharge Compliance

Senate Bill 205 (2019) was signed by Governor Gavin Newsom on October 2, 2019 and became effective January 1, 2020. This Senate Bill added sections 16000.3 and 16100.3 to the Business and Professions Code and section 13383.10 to the Water Code, and requires a person applying to a city or county for a new or renewed business license to demonstrate enrollment in a National Pollutant Discharge Elimination System (NPDES) storm water permit, if such a permit is required. Prior to the issuance or renewal of a business license, the city or county determines whether any of the primary Standard Industrial Classification (SIC) codes provided by the business are potentially regulated by the NPDES General Permit for Storm Water Discharges Associated with Industrial Activities (Industrial General Permit).

A list of SIC codes potentially regulated by the Industrial General Permit is posted on the State Water Resources Control Board’s website, sorted numerically and alphabetically. The list of SIC codes is a tool to aid cities and counties to identify potentially regulated SIC codes; however, Attachment A of the Industrial General Permit ultimately defines the type of facilities that are regulated. If a business’ primary SIC Code is listed as a potentially regulated SIC code, the business may need to enroll for coverage under the Industrial General Permit or provide proof of non-applicability to the city or county before the business license is issued or renewed.

The requirements of Senate Bill 205 solely impact businesses with operating facilities with regulated industrial activities. When using keywords to search for potentially applicable SIC codes, businesses need to consider the division definition in addition to the specific SIC code to determine the applicability of that SIC code to their business operation. The division structure of SIC codes consists of:

  1. Agriculture, Forestry, And Fishing
  2. Mining
  3. Construction
  4. Manufacturing
  5. Transportation, Communications, Electric, Gas, And Sanitary Services
  6. Wholesale Trade
  7. Retail Trade
  8. Finance, Insurance, And Real Estate
  9. Services
  10. Public Administration

A business should search within the appropriate division when identifying their SIC code. After identifying the SIC code, a business should refer to Attachment A of the Industrial General Permit to verify if the business is conducting the industrial activity described in one of the 9 categories required to obtain Industrial General Permit coverage. The requirement for a business to obtain coverage is not always based the SIC code; businesses may be required to obtain permit coverage based on the description of the facility’s activities and/or applicability of other regulations requiring permit coverage.

An industrial business is required to demonstrate compliance with the Industrial General Permit when applying for a business license or renewal on or after January 1, 2020. This means that a business will have to:

  • Evaluate each operating facility to determine the Standard Industrial Classification (SIC) code.
  • How to determine the business' SIC code
  • Determine if the SIC code is for a regulated industrial activity by referring to Attachment A of the Industrial General Permit, or consulting the list of regulated industrial SIC codes found on the State Water Board website (sorted numerically and sorted alphabetically). 
  • Obtain Industrial General Permit coverage or submit a certified notice of non-applicability for each facility with a regulated SIC code(s) as described in the “Permit Applications” section of this web page.

Frequently Asked Questions document for Industrial Businesses

A broad range of activities are identified in Attachment A of the Industrial General Permit, including manufacturing, mining, disposal, recycling, transportation, and others. In accordance with Senate Bill 205, the State Water Board has a web page of all Standard Industrial Classification codes applicable to the Industrial General Permit, sorted numerically and alphabetically. Cities and counties may use information provided by the State Water Board, including the list of regulated Standard Industrial Classification codes to determine when a business is required to enroll in the Industrial General Permit. Cities and counties may develop their own processes for determining whether a business is appropriately covered by the Industrial General Permit. Cities and counties may reach out to professional associations providing municipalities assistance such as the Association of California Water Agencies, the California State Association of Counties, and the California League of Cities.

Senate Bill 205 requires business license applicants to provide, where applicable, their facilities’ Waste Discharger Identification (WDID) number and application number, No-Exposure Certification identification number, or Notice of Non-Applicability identification number. Cities and counties may search the State Water Board’s Stormwater Multiple Application and Report Tracking System using the WDID number or application number, No Exposure Certification identification number, or Notice of Non-Applicability identification number to verify coverage reported by applicants.

Frequently Asked Questions document for Cities and Counties

The Industrial General Permit is a State Water Board NPDES General Permit implementing the requirements of the Federal Clean Water Act. The Industrial General Permit regulates discharges of storm water (rainfall flowing over surfaces into water ways) into waters of the United States associated with nine broad categories of industrial activities. Any facility with industrial activity listed in Attachment A of the Industrial General Permit and discharges storm water to waters of the United States must obtain coverage. The Industrial General Permit contains further information, including the facility types requiring coverage.

The Stormwater Multiple Application and Report Tracking System (commonly referred to as SMARTS) is the federally compliant electronic database used for California NPDES storm water permitting. This system allows permittees, regulators, and the public to enter, manage, and view storm water data. For common acronyms, please refer to the “Acronyms” tab.

For facilities with: 1) industrial materials and activities exposed to storm water and 2) storm water discharges off the property to a waters of the United States. Facilities with Notice of Intent coverage must submit Permit Registration Documents electronically through the Stormwater Multiple Application and Report Tracking System. The steps for obtaining Notice of Intent coverage are:

  • Create a Stormwater Multiple Application and Report Tracking System account.
  • Register for an Industrial General Permit Notice of Intent.
  • Upload a Storm Water Pollution Prevention Plan and a Site Map.
  • Certify and submit the new Notice of Intent application.
  • Mail an eAuthorization form and fee statement to the State Water Board.
  • Mail in or electronically submit the fee payment.

For facilities with activities included in Attachment A of the Industrial General Permit, and all industrial materials and activities are not exposed to storm water at any point on the facility property. A facility with No Exposure Certification coverage must go through an No Exposure Certification checklist and certify the application in the Stormwater Multiple Application and Report Tracking System. The No Exposure Certification checklist ensures that the following materials or activities are not exposed to storm water:

  • Using, storing or cleaning industrial machinery or equipment, and areas where residuals from using, storing, or cleaning industrial machinery or equipment remain and are exposed;
  • Materials or residuals on the ground or in storm water inlets from spills/leaks;
  • Materials or products from past industrial activity;
  • Material handling equipment (except adequately maintained vehicles);
  • Materials or products during loading/unloading or transporting activities;
  • Materials or products stored outdoors (except final products intended for outside use, i.e., new cars, where exposure to storm water does not result in the discharge of pollutants);
  • Materials contained in open, deteriorated or leaking storage drums, barrels, tanks, and similar containers;
  • Materials or products handled/stored on roads or railways owned or maintained by the Discharger;
  • Waste material (except waste in covered, non-leaking containers, i.e., dumpsters);
  • Application or disposal of processed wastewater (unless already covered by an NPDES permit); and,
  • Particulate matter or visible deposits of residuals from roof stacks/vents evident in the storm water outflow.

The steps for obtaining No Exposure Certification coverage are:

  • Create a Stormwater Multiple Application and Report Tracking System account.
  • Register for an Industrial General Permit No Exposure Certification.
  • Upload a Site Map.
  • Certify and submit the new No Exposure Certification application.
  • Mail an eAuthorization form and fee statement to the State Water Board.
  • Mail in or electronically submit the fee payment.

This optional certification is available to industrial facilities without: 1) industrial activities as described in Attachment A, or 2) discharge of industrial storm water to a waters of the United States (requires a professional engineer certified technical report).

The current application and annual fees for the No Exposure Certification and Notice of Intent application are listed in the current fiscal year Water Quality Fee Schedule on the State Water Board Water Quality Fee Web Page. Fees can be paid with a mailed check, bank transfer, or credit card. The Notice of Non-Applicability application does not require a fee payment.

Acronym Description
AdHoc Report  AdHoc Monitoring Report
BMP  Best Management Practices
CBPELSG  California Board for Professional Engineers, Land Surveyors and Geologists
DAR  Duly Authorized Representative
DEP Data Entry Person
DWQ  Division of Water Quality
ELGs  Effluent Limitations Guidelines and New Source Performance Standards
ERA  Exceedance Response Action
eAuthorization  Electronic Authorization Form
IGP  Industrial General Permit Order: 2018 Amendment to Order 2014-0057-DWQ as amended by Order 2015-0122-DWQ
LRP  Legally Responsible Person
NAL  Numeric Action Level
NEC  No Exposure Certification
NEL  Numeric Effluent Limitation
NOI  Notice of Intent
NONA  Notice of Non-Applicability
NOT  Notice of Termination
NPDES National Pollutant Discharge Elimination System
NSWD  Non-Storm Water Discharges
PRDs  Permit Registration Documents
QISP  Qualified Industrial Stormwater Practitioner
QSE  Qualifying Storm Event
SIC  Standard Industrial Classification
SMARTS  Stormwater Multiple Application and Report Tracking System
SWPPP  Storm Water Pollution Prevention Plan
WDID  Waste Discharge Identification Number

  (Page last updated 5/7/20)

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