Dep’t of Fin. v. Comm’n on State MandatesAnnotate this Case
The Regional Water Quality Control Board, Los Angeles Region, a state agency, issued a permit authorizing local agencies (collectively, Operators) to operate storm drain systems. Permit conditions required that the Operators take various steps to maintain the quality of California’s water and to comply with the federal Clean Water Act. Some Operators sought reimbursement for the cost of satisfying the conditions. The Commission on State Mandates concluded that each required condition was mandated by the state, rather than by federal law, and therefore, the Operators were entitled to reimbursement for the associated costs. The Court of Appeal reversed, concluding that the permit conditions were federally mandated and thus not reimbursable. The Supreme Court reversed, holding that the permit conditions were imposed as a result of the state’s discretionary action, and therefore, the conditions were not federally mandated and were reimbursable.