Court Says Regulators Must Consider Economic Factors and Cost Benefit Analysis for New Trash Rules.

News Editors/Assignment Desks/Planning Editors

SAN DIEGO--(BUSINESS WIRE)--Dec. 31, 2003

Coalition for Practical Regulation:

-- Judge also determines that Regional Water Board "abused its

discretion" in imposing regulations that would have cost

County taxpayers billions

-- Local Leaders Call Ruling "Fair" for Cash-Strapped Communities

Hit Hard by State Budget Deficit

Twenty-two Los Angeles County cities expressed their relief over a San Diego judge's ruling on costly new water rules. The court reviewed an order, ZERO Trash Total Maximum Daily Load (TMDL), issued by the Los Angeles Regional Water Quality Control Board mandating that cities reduce floating debris found in local flood control channels by 10% each year over the next decade.

Judge Wayne L. Peterson ruled the Regional Board abused its discretion when it failed to conduct a cost/benefit analysis or consider economic impacts as required by the Clean Water Act and State Water Codes. The Court also ruled in favor of the cities that the Regional Board violated the California Environmental Quality Act (CEQA) and did not adequately analyze the environmental impacts of the TMDL. In addition, the Court ruled that the Board failed to conduct assimilative capacity studies which might have shown that a trash "target" other than zero was appropriate.

The Los Angeles River Trash order is only one of 92 water quality rules still to be mandated on the cities in Los Angeles County. Cities cited local budgets stretched to the breaking point by State revenue raids, homeland security expenses and public safety programs. Absent significant federal or state funding, local taxpayers may be forced to choose between new fees or significant reductions of existing municipal services.

"The cities are encouraged by the ruling, since millions of taxpayers dollars would have been required in order to comply," stated Larry Forester, city council member from Signal Hill and a member of the Coalition for Practical Regulation. "Our cities agree that trash is a problem in the Los Angeles River and at the beaches, but our citizens should not be held financially responsible for the lion's share of a societal problem."

The County and City of Los Angeles settled out of court in September with the Regional Board, a State agency that sets water quality standards. According to County estimates, the order could have cost taxpayers $642 million to reach the 90% trash reduction level. The City of Los Angeles estimated costs of $120 million to reach the 50% trash reduction level, while the County estimated $48 million to reach the same reduction. It is unclear how the ruling will affect these settlements, in light of the severe budget crisis facing the County and City.

The other 32 cities draining into the Los Angeles River would have to pick up over $325 million in the remaining costs. Relying on what officials say are new and untested technologies to screen and remove trash from storm water, the County will shift $5 million annually from road repair funds to cover the new storm water trash reduction programs, resulting in reductions of funds for road and bridge repairs.

The State Department of Transportation will spend $25 million annually to stem the tide of trash reaching the waterways from the freeway system in Los Angeles County.

"How can the local communities fund new programs when the State is raiding local revenues to pay for their spending spree?" questioned Forester. "It is estimated that the remaining 39 cities in the Los Angeles River watershed must invest $170 million to reach the 50% reduction level, and this is only the first water quality rule for one river, so how are the cities going to afford the other 91 rules?"

The cities argued that the Regional Board should have adopted simple programs, such as additional street sweeping, catch basin cleaning, funding for anti-litter campaigns, as ways to cost-effectively deal with trash found in storm water. The cities also offered to adopt programs aimed at controlling trash from commercial and industrial operations. Studies point to 85% of the trash in storm water originating from commercial and industrial zones.

The cities expressed concern that the Regional Board does not agree that "ZERO" trash reduction is an impossible requirement. Neither the Court nor the settlement agreements required the Board to adopt a more realistic requirement.

"As long as there are people, wind and rain, `ZERO' trash is impossible, no matter how much tax dollars we throw at the problem," concluded Forester.

"The cities are committed to working with the Regional Board on cost-effective programs to reduce the trash found in the Los Angeles River and other flood control channels."

The court ruling is posted on the Coalition for Practical Regulation's website at www.citiessavejobs.com.

The Coalition for Practical Regulation was formed in 1999 by 46 Los Angeles County Cities. They are committed to effective environmental programs in a fiscally responsible manner to their local residents and businesses.