GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW California Regulatory Notice Register REGISTER 2021, NUMBER 27-Z P UBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW J ULY 2, 2021 PROPOSED ACTION ON REGULATIONS TITLE 2. F AIR POLITICAL PRACTICES COMMISSION Conflict–of–Interest Code — Notice File Number Z2021–0622–06 ......................................... 843 AMENDMENT State Agency: Legislative Counsel Bureau Department of Housing and Community Development TITLE 2.

OFFICE OF THE STATE PUBLIC DEFENDER Conflict–of–Interest Code — Notice File Number Z2021–0618–01 ......................................... 844 TITLE 14. SAN FRANCISCO BAY CONSERV ATION AND DEVELOPMENT COMMISSION Amend Regulations Implementing California Environmental Quality Act — Notice File Number Z2021–0621–01 ..................................................... 845 TITLE 15. PRISON INDUSTRY AUTHORITY Prohibition on Use of Nonpublic Information — Notice File Number Z2021–0616–01 ......................... 849 TITLE 16.

BOARD OF ACCOUNTANCY Fees — Notice File Number Z2021–0622–02 .......................................................... 852 TITLE 18. BOARD OF EQUALIZATION Change in Ownership, Base Year Value Transfers — Notice File Number Z2021–0622–03 ...................... 855 TITLE 24. ST ATE BUILDING STANDARDS COMMISSION/CALIFORNIA ENERGY COMMISSION 2022 Building Energy Efficiency Standards Parts 2, 2.5, 3, 4, 5, and 11 — Notice File Number Z2021–0622–01 ................................................................. 861 (Continued on next page) Time- Dated Material

GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE Klamath Floodplain Habitat Enhancement Project, Consistency Determination No. 1653–2021–070–001–R1 ................................................ 866 DEPARTMENT OF FISH AND WILDLIFE Consistency Determination Request for South Fork Scott River Floodplain Restoration — Phase II ............... 868 OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD Public Meeting and Business Meeting ............................................................... 869 NOTICE OF DECISION NOT TO PROCEED STATE FIRE MARSHAL Concerning Fire and Life Safety Special Event Permits Originally Published in the Notice Register 2021, Number 19–Z, May 7, 2021 ............................... 869

SUMMARY OF REGULATORY ACTIONS Regulations filed with Secretary of State ............................................................ 870 The California Regulatory Notice Register is an official state publication of the Office of Administrative Law containing notices of proposed regulatory actions by state regulatory agencies to adopt, amend or repeal regulations contained in the California Code of Regulations. The effective period of a notice of proposed regulatory action by a state agency in the California Regulatory Notice Register shall not exceed one year [Government Code § 11346.4(b)].

It is suggested, therefore, that issues of the California Regulatory Notice Register be retained for a minimum of 18 months. CALIFORNIA REGULATORY NOTICE REGISTER is published weekly by the Office of Administrative Law, 300 Capitol Mall, Suite 1250, Sacramento, CA 95814-4339. The Register is printed by Barclays, a subsidiary of West, a Thomson Reuters Business, and is offered by subscription for $205.00 (annual price). To order or make changes to current subscriptions, please call (800) 328−4880. The Register can also be accessed at http://www.oal.ca.gov .

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 843 PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION NOTICE IS HEREBY GIVEN that the Fair Political Practices Commission, pursuant to the authority vested in it by Sections 82011, 87303, and 87304 of the Government Code to review proposed conflict– of–interest codes, will review the proposed/amended conflict–of–interest codes of the following: CONFLICT–OF–INTEREST CODES AMENDMENT State Agency: Legislative Counsel Bureau Department of Housing and Community Development A written comment period has been established commencing on July 2, 2021 and closing on August 16, 2021.

Written comments should be directed to the Fair Political Practices Commission, Attention Daniel Vo, 1102 Q Street, Suite 3000, Sacramento, California 95811. At the end of the 45–day comment period, the proposed conflict–of–interest code(

s) will be submitted to the Commission’s Executive Director for his review, unless any interested person or his or her duly authorized representative requests, no later than 15 days prior to the close of the written comment period, a public hearing before the full Commission. If a public hearing is requested, the proposed code(

s) will be submitted to the Commission for review. The Executive Director of the Commission will review the above–referenced conflict–of–interest code(s), proposed pursuant to Government Code

Section 87300, which designate, pursuant to Government Code

Section 87302, employees who must disclose certain investments, interests in real property and income. The Executive Director of the Commission, upon his or its own motion or at the request of any interested person, will approve, or revise and approve, or return the proposed code(

s) to the agency for revision and re– submission within 60 days without further notice. Any interested person may present statements, ar - guments or comments, in writing to the Executive Director of the Commission, relative to review of the proposed conflict–of–interest code(s). Any written comments must be received no later than August 16, 2021. If a public hearing is to be held, oral comments may be presented to the Commission at the hearing.

COST TO LOCAL AGENCIES There shall be no reimbursement for any new or increased costs to local government which may re - sult from compliance with these codes because these are not new programs mandated on local agencies by the codes since the requirements described herein were mandated by the Political Reform Act of 1974. Therefore, they are not “costs mandated by the state” as defined in Government Code

Section 17514. EFFECT ON HOUSING COSTS AND BUSINESSES Compliance with the codes has no potential effect on housing costs or on private persons, businesses or small businesses. AUTHORITY Government Code Sections 82011, 87303 and 87304 provide that the Fair Political Practices Commission as the code–reviewing body for the above conflict–of– interest codes shall approve codes as submitted, revise the proposed code and approve it as revised, or return the proposed code for revision and re–submission.

REFERENCE Government Code Sections 87300 and 87306 provide that agencies shall adopt and promulgate conflict–of–interest codes pursuant to the Political Reform Act and amend their codes when change is necessitated by changed circumstances. CONTACT Any inquiries concerning the proposed conflict– of–interest code(

s) should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322–5660. AVAILABILITY OF PROPOSED CONFLICT–OF–INTEREST CODES Copies of the proposed conflict–of–interest codes may be obtained from the Commission offices or the respective agency. Requests for copies from

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 844 the Commission should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322–5660. TITLE 2. OFFICE OF THE STATE PUBLIC DEFENDER NOTICE OF INTENTION TO AMEND THE CONFLICT–OF–INTEREST CODE OF THE OFFICE OF THE STATE PUBLIC DEFENDER NOTICE IS HEREBY GIVEN that the Office of the State Public Defender, pursuant to the authority vested in it by

section 87306 of the Government Code, pro - poses amendment to its conflict–of–interest code. A comment period has been established commencing on July 2, 2021 and closing on August 16, 2021. All in - quiries should be directed to the contact listed below. The Office of the State Public Defender proposes to amend its conflict–of–interest code to include em- ployee positions that involve the making or partici - pation in the making of decisions that may foresee - ably have a material effect on any financial interest, as set forth in subdivision (

a) of

section 87302 of the Government Code. The amendment carries out the purposes of the law and no other alternative would do so and be less burdensome to affected persons. Changes to the conflict–of–interest code include:

(1) Updating the designated positions to included new positions and/or those that have changed since the last conflict–of–interest code, and

(2) Updating designated positions to include classification title changes. Each of the following positions is involved as a State em - ployee, at other than a clerical level, in the function of negotiating or signing contracts awarded through competitive bidding, in making decisions in conjunc - tion with the competitive bidding process, or in ne - gotiations, signing or making decisions on contracts executed pursuant to

Section 10122 of Public Contact Code. EXECUTIVE OFFICE 1. The Executive Director is assigned to the disclosure Category 1,3. The Executive Director reports to the State Public Defender. 2. The Assistant Chief Counsel is assigned to disclosure Category 1,3. The Assistant Chief Counsel reports to the State Public Defender. 3. The Executive Manager & EEO Officer is assigned to disclosure Category 1,3. The Executive Manager & EEO Officer reports to the State Public Defender. LEGAL OFFICE 1. Attorney (All Levels) is assigned to the disclosure Category 1.

The Attorney (All Levels) reports to the Supervising Deputy State Public Defender. 2. Legal Counsel is assigned to the disclosure Category 1. Legal Counsel reports to the Supervising State Public Defender. The Office of the State Public Defender is no longer utilizing the Legal Counsel classification. Our list of designated filers has been updated to represent changes to the staff approving purchases and contracts.

All of these staff solicit bids and have a role in the final decisions of which vendors to use for purchases and/or contracts. ● Executive Office ○ Executive Director ○ Assistant Chief Counsel ○ Executive Manager & EEO Officer ● Legal Office ○ Attorney (All Levels) ○ Legal Counsel Information on the code amendment is available on the agency’s intranet site under Administration Memo 21–009. Any interested person may submit written com - ments relating to the proposed amendment by submit- ting them no later than August 16, 2021, or at the con - clusion of the public hearing, if requested, whichever comes later.

At this time, no public hearing is sched - uled. A person may request a hearing no later than August 2, 2021. The Office of the State Public Defender has deter - mined that the proposed amendments: 1. Impose no mandate on local agencies or school districts. 2. Impose no costs or savings on any state agency. 3. Impose no costs on any local agency or school district that are required to be reimbursed under

Part 7 (commencing with

Section 17500) of Division 4 of Title 2 of the Government Code. 4. Will not result in any nondiscretionary costs or savings to local agencies. 5. Will not result in any costs or savings in federal funding to the state. 6. Will not have any potential cost impact on private persons, businesses or small businesses. All inquiries concerning this proposed amendment and any communication required by this notice should be directed to: Twanna Moore, Human Resources Analyst by telephone (916) 322–7043, or by e–mail at Twanna.Moore@ospd.ca.gov.

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 845 TITLE 14. SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION NOTICE OF PROPOSED RULEMAKING TO AMEND COMMISSION REGULATIONS FOR IMPLEMENTATION OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT TITLE 14, DIVISION 5,

CHAPTER 15 PUBLIC HEARING The San Francisco Bay Conservation and Development Commission (“Commission”) will hold a public hearing on the subject of this Notice of Proposed Rulemaking on August 19, 2021 at its regularly scheduled meeting, which will begin at 1:00 p.m., and will be held online and by teleconference due to the COVID–19 public health orders and in accordance with the Governor’s

Executive Order No. N–08–21 issued on June 11, 2021. The hearing will concern proposed changes to the Commission’s regulations for implementation of the California Environmental Quality Act (“CEQA”) that are codified at Title 14 of the California Code of Regulations, Division 5,

Chapter 15. At the hearing, any person may present comments, arguments, or statements orally or in writing relevant to the proposed action described in the Informative Digest (below). Information regarding how to access the August 19, 2021, Commission meeting online or by teleconference will be provided in a meeting notice and agenda provided to interested parties and posted on the Commission’s website not less than ten days prior to the meeting date. Following the public hearing, the Commission may adopt the proposal substantially as described below or may modify the proposal.

With the exception of technical or grammatical changes, the full text of any modified proposal will be available for at least 15 days prior to its adoption from the person designated in this Notice as the Contact Person. Any proposed modifications will be mailed to those persons who submit written comments, provide oral comments, or have requested notification of any changes to the proposal. Please notify the Commission to receive a meeting notice and any notices of change to the hearing date (see Contact Person, below).

WRITTEN COMMENT PERIOD Any person or organization may submit written comments on the proposed regulatory action. The written comment period closes at 5 p.m. on August 19, 2021. The Commission will only consider comments received by that time. Please submit written comments to: Greg Scharff, Chief Counsel San Francisco Bay Conservation and Development Commission 375 Beale Street, Suite 510 San Francisco, California 94105 Telephone: (415) 352–3655 Email: greg.scharff@bcdc.ca.gov AUTHORITY AND REFERENCE Authority: Government Code

Section 66632(f); and Public Resources Code Sections 21082 and 29201(e). References: Government Code

Section 66632(a); and Public Resources Code Sections 21000, 21080.4, 21080.5, 21081, 21081.6, 21082.1, 21084, 21089, 21091, 21092, 21092.2, 21104, 21153, 21166, 29202, 29502(a), and 29250(b).

INFORMATIVE DIGEST The Commission is a State agency that issues permits for: (1) the placement of fill, extraction of materials worth more than $20, or any substantial change in use of any water, land, or structure located within the area of the Commission’s jurisdiction as established under the McAteer–Petris Act (“MPA”), California Government Code sections 66600 through 66694; and (2) any development within the area of the Commission’s jurisdiction as established under the Suisun Marsh Preservation Act (“SMPA”), California Public Resources Code sections 29000 through 29612.

The Commission also considers: (1) requests to amend the San Francisco Bay Plan, including a number of special area plans, the Suisun Marsh Protection Plan, and the Suisun Marsh Local Protection Program; and (2) appeals of any action by certain local government agencies on an application for a marsh development permit under the SMPA. The Commission has adopted a set of regulations that are codified at Title 14 of the California Code of Regulations, Division 5,

Chapter 15, sections 11500– 11561, for implementation of CEQA. The Commission is proposing amendments to these regulations. In

summary, the proposed amendments to the regulations governing when the Commission is the CEQA lead agency would: ● Add a regulation to address the Commission’s obligations, upon completion of an environmental assessment, to consult with other public agencies having jurisdiction by law with respect to the proposed activity or which exercise authority over resources that may be affected by the proposed activity.

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 846 ● Add a regulation to address how an environmental assessment will be made available for public review, clarify the requirement to prepare written responses to comments, and address how the written responses to comments will be made available prior to the Commission’s consideration of a proposed activity. ● Add a regulation to: (1) address the Commission’s consideration and approval of an environmental assessment; (2) identify the documents that comprise the final environmental assessment; (3) address the findings to be made by the Commission if an environmental assessment identifies one or more significant environmental effects of a proposed activity; and (4) provide for adoption of a program for monitoring or reporting on revisions the Commission has required in a project or the measures it has imposed as conditions of approval to mitigate or avoid significant environmental effects. ● Add a regulation to restate the requirements, which are currently set forth in the Commission’s permitting and planning regulations, to file a notice of decision on a proposed activity with the Secretary of the Resources Agency. ● Clarify the two possible arrangements for retaining a consultant, when necessary and as selected by the Executive Director, to prepare an environmental assessment; delete the existing requirement that a consultant establish a fixed cost for preparation of an environmental assessment; and clarify that, notwithstanding the fees and costs estimated by the selected consultant, the applicant shall be responsible for all consultant fees and costs to prepare the environmental assessment. ● Confirm that before using an environmental assessment prepared by a consultant, the Commission shall subject the environmental assessment to the agency’s own independent review and analysis. ● Eliminate existing provisions that establish nominal fees that are intended, but are insufficient, to cover the Commission’s costs to prepare an environmental assessment, and instead authorize the Commission to assess fees sufficient to recover its full costs to prepare an environmental assessment.

Provide for monthly billing of costs incurred by the Commission and staff for preparation of an environmental assessment and require the applicant to pay such bills within 30 days of receipt. In

summary, the proposed amendments to the regulations governing when the Commission is a CEQA responsible agency would: ● Acknowledge the duty of the Commission to respond to any request for consultation by the lead agency to ensure that the lead agency prepares an environmental document that meets the informational needs of the Commission. ● Delete as unnecessary and burdensome, to the applicant and staff, the existing requirement that an applicant prepare a written

summary of any environmental document prepared by the lead agency. ● Delete as unnecessary and burdensome, to the Commission and staff, the existing requirement that the Executive Director include any final environmental document that is less than 10 pages in length, or a

summary thereof if the document is longer than 10 pages in length, with the staff

summary of the permit application. Instead, consistent with current practice, require that the Executive Director (through staff) consider the environmental effects of the proposed activity as described in any environmental document prepared by the lead agency and summarize the environmental information contained therein as relevant to the Commission’s statutory responsibilities in the application

summary and/ or staff recommendation on the permit application or in the staff planning report on a planning matter. ● Add provisions to: (1) address the findings to be made by the Commission if the lead agency’s environmental document identifies one or more significant environmental effects of a proposed activity; and (2) provide for adoption of a program for monitoring or reporting on revisions the Commission has required in a project or the measures it has imposed as conditions of approval to mitigate or avoid significant environmental effects.

Objectives and Anticipated Benefits of the Proposed Amendments The objectives of the proposed amendments are to improve the clarity of the Commission’s regulations for implementing CEQA and to update the regulations to incorporate statutory changes that have been made to CEQA since the Commission’s regulations were last amended. The proposed amendments will also clarify that the Commission is authorized to recover its full costs to prepare an environmental assessment when it is the CEQA lead agency.

Evaluation of Inconsistency/Incompatibility with Existing State Regulations The Commission’s regulations are the only state regulations for implementation of CEQA in connection with the Commission’s consideration of applications for permits or for amendments to Commission plan

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 847 documents under the MPA or SMPA. Therefore, the proposed amended regulations are neither inconsistent nor incompatible with existing state regulations. No Comparable Federal Statutes or Regulations There are no federal statutes or regulations applicable to the MPA, SMPA, or consideration of applications for Commission permits or for amendments to Commission plan documents. Therefore, neither the Commission’s existing regulations nor the proposed amendments differ from an existing comparable federal statute or regulation.

DETERMINATIONS REGARDING THE PROPOSED ACTION The Commission has made the following determinations or initial determinations: Mandate imposed on local agencies or school districts by proposed amendments: None. Cost or savings to any state agency: The proposed amendments will not impose any direct or indirect costs on any state agency. The proposed amendments will authorize the Commission to recover its full costs to prepare an environmental assessment.

The dollar value of this benefit to the state, in terms of recovered costs for staff time to prepare an environmental assessment, is estimated to range from approximately $15,000 to $40,000 per project, depending on the complexity of the project and its potential environmental impacts, and would average approximately $25,000 per project. Cost to any local agency or school district that must be reimbursed in accordance with Government Code Sections 17500 through 17630: None. Other nondiscretionary cost or savings imposed on local agencies: None. Cost or savings in federal funding to the state: None.

Significant statewide adverse economic impact directly affecting businesses, including the ability of California businesses to compete with businesses in other states: None. Cost impacts on a representative private person or business: The proposed amendments will not impose any direct or indirect costs on individuals. With one exception, the proposed amendments will not impose any direct or indirect costs on any businesses.

The exception is that the proposed amendments will authorize the Commission to recover its full costs to prepare an environmental assessment in connection with an application by a business for an amendment to a Commission plan document or for a permit where the local agency granting the local discretionary approval has not previously acted as lead agency and prepared a CEQA environmental review document.

The estimated costs of Commission staff time to prepare an environmental assessment, which the Commission would be authorized to recover from applicants under the proposed amendments, would range from approximately $15,000 to $40,000 per project, depending on the complexity of the project and its potential environmental impacts, and would average approximately $25,000 per project.

Results of the Economic Impact Assessment: The proposed amendments to the Commission’s regulations for implementing CEQA will not create or eliminate jobs within California, create new businesses or eliminate existing businesses within California, or affect the expansion of businesses currently doing business within California. With one exception, the proposed amendments will not impose any direct or indirect costs on individuals, businesses, local government agencies, or state agencies.

The exception is that the proposed amendments will eliminate existing provisions that establish nominal fees that are intended, but are insufficient, to recover the Commission’s costs to prepare an environmental assessment when it is acting as the CEQA lead agency and instead add a provision to authorize the Commission to assess fees sufficient to recover its full costs to prepare an environmental assessment.

The proposed amendments authorizing the Commission to assess fees to recover its full costs to prepare an environmental assessment will not result in substantial costs to businesses or local government agencies and are not expected to result in any costs to individuals, small businesses, or state agencies.

The proposed amendments will not result in substantial costs to business or local governments, in part, because the Commission’s planning regulations (specifically 14 C.C.R. § 11008(a)) currently authorize the Commission to recover its full costs of processing a plan amendment (except for a plan amendment to eliminate a park priority use designation) or other plan document, including the costs to prepare an environmental assessment associated with the plan amendment.

The proposed amendments also will not result in substantial costs to businesses or local governments because the Commission rarely ( i.e., less frequently than once every 10 years) acts as the CEQA lead agency (which would require it to prepare an environmental assessment) in considering a permit application.

Based on available information and estimates, the costs of Commission staff time to prepare an environmental assessment, which the Commission would be authorized to recover from applicants under the proposed amendments, would range from approximately $15,000 to $40,000 per project, depending on the complexity of the project and its potential environmental impacts, and would average approximately $25,000 per project.

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 848 The benefits of the proposed amendments are primarily non–monetary. The benefits will include improved clarity and consistency in the Commission’s regulations for implementing CEQA, including improved consistency in the procedures followed by the Commission when it is acting as the lead agency either for an amendment to a plan document or for a permit application.

In addition, the proposed amendments will update the Commission’s regulations to incorporate certain statutory changes that have been made to CEQA since the Commission’s regulations were last amended, including referencing the findings to made by the Commission in adopting an environmental assessment or approving a project. The proposed amendments will not affect and are not anticipated to benefit the general health and welfare of California residents or worker safety. As discussed above, the proposed amendments will authorize the Commission to recover its full costs to prepare an environmental assessment.

The dollar value of this benefit to the state, in terms of recovered costs for staff time to prepare an environmental assessment, is estimated to range from approximately $15,000 to $40,000 per project, depending on the complexity of the project and its potential environmental impacts, and would average approximately $25,000 per project. An analysis of economic and fiscal impacts is contained in the Economic and Fiscal Impact Statement (Form 399), including the supplement thereto. Significant effect on housing costs: None. Business reporting requirements: None.

Determination of effect on small business: The proposed amendments will not affect small business. The Commission’s records reflect that a small business has never applied to the Commission for a permit or plan amendment for which the Commission has acted as the CEQA lead agency, requiring the Commission to prepare an environmental assessment, and this is not anticipated to occur in the future. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

Section 11346.5(a)(13), the Commission must determine that no reasonable alternative it considered or that has otherwise been identified and brought to the attention of the agency would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provisions of law. Alternatives to the proposed regulatory action are described in the accompanying Initial Statement of Reasons.

The Commission invites interested persons to present comments on the proposed amendments and alternatives at the scheduled public hearing or during the written comment period.

CONTACT PERSON Inquiries concerning the proposed regulatory action may be directed to: Greg Scharff, Chief Counsel San Francisco Bay Conservation and Development Commission 375 Beale Street, Suite 510 San Francisco, CA 94105 Telephone: (415) 352–3655 Email: greg.scharff@bcdc.ca.gov The backup contact person for these inquiries is: Margie Malan, Legal Secretary San Francisco Bay Conservation and Development Commission 375 Beale Street, Suite 510 San Francisco, CA 94105 Telephone: (415) 352–3675 Email: margie.malan@bcdc.ca.gov A VAILABILITY OF THE TEXT OF THE PROPOSED AMENDMENTS TO REGULATIONS AND THE INITIAL STATEMENT OF REASONS The Commission will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office at the above address.

As of the date this Notice is published in the California Regulatory Notice Register, the rulemaking file consists of: (1) this Notice; (2) the text of the proposed amendments to the regulations, with proposed deletions shown in strikeout and proposed inserts shown in underscore; (3) the Initial Statement of Reasons; (4) the Economic and Fiscal Impact Statement (Form 399) and supplement thereto;

(5) Staff Report on Proposed Amendments to Commission Regulations for Implementation of the California Environmental Quality Act; Recommendation to Commence the Rulemaking Process to Adopt the Proposed Amendments (March 19, 2021);

(6) Minutes of April 1, 2021 Virtual Commission Meeting, at 1, 18–27 (agenda item 9). Copies of these documents may be obtained from the Commission’s website at www.bcdc.ca.gov under

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 849 the link to Latest News. Copies may also be obtained by contacting Greg Scharff at the address, telephone number, or email address listed above. The proposed regulations were prepared pursuant to the standard of clarity provided in Government Code

Section 11349 and the plain English requirements of Government Code Sections 11342.580 and 11346.2(a)(1). The proposed regulations are non– technical and written to be easily understood by the affected parties. AVAILABILITY OF CHANGES OR MODIFIED TEXT After holding the public hearing and considering all timely and relevant comments, the Commission may adopt the proposed regulatory changes substantially as described in this notice.

If the Commission makes modifications that are sufficiently related to the originally proposed text, it will make the modified text (with changes clearly indicated) available to the public for at least 15 days before the Commission adopts the regulations as modified. Please send requests for copies of any modified regulations to Greg Scharff at the address indicated above. The Commission will accept written comments on the modified text for 15 days after the date on which the modified proposed regulations are made available.

A VAILABILITY OF THE FINAL STATEMENT OF REASONS Upon the Commission’s adoption of the regulations, copies of the Final Statement of Reasons may be obtained by contacting Greg Scharff at the above address. A VAILABILITY OF THE DOCUMENTS ON THE INTERNET Copies of this Notice of Proposed Rulemaking, the Initial Statement of Reasons, and the text of the proposed amendments to regulations (in strikeout and underlined format), as well as the Final Statement of Reasons once it is completed, can be obtained from the Commission website at www.bcdc.ca.gov. TITLE 15.

PRISON INDUSTRY AUTHORITY NOTICE IS HEREBY GIVEN that the California Prison Industry Authority (CALPIA) and the Prison Industry Board (PIB) pursuant to the authority granted by Penal Code (PC) Sections 2800, 2802, 2807, 2808, and 2809 in order to implement, interpret and make specific Penal Code 2808, propose to add

section 8122 titled Employee Prohibition on Use of Nonpublic Information at Auctions, in the California Code of Regulations (CCR), Title 15, concerning the sale of surplus and discontinued goods and property by auction. PUBLIC HEARING At this time, no public hearing has been scheduled concerning the proposed regulatory action. Anyone may request a public hearing by contacting the Contact Person set forth below. Requests for public hearings must be made no later than August 2, 2021. SPECIAL ACCOMMODATION REQUEST Consistent with California Government Code

Section 7296.2, special accommodation or language needs may be provided, including any of the following: ● An interpreter to be available at a hearing. ● Documents made available in an alternate format or another language. ● A disability–related reasonable accommodation. To request these special accommodations or language needs, please contact Roxanna Leffel at CALPIA at (916) 358–1721 or Roxanna.Leffel@ calpia.ca.gov as soon as possible, but no later than 10 business days before a scheduled hearing.

Para solicitor estas adaptaciones especiales o servicios de idioma, puede contactar a CALPIA at (916) 358–1721 or Roxanna.Leffel@calpia.ca.gov lo más pronto possible y a más tarder 10 dias habiles antes de la fecha de la audiencia de la Junta (Board). PUBLIC COMMENT PERIOD The public comment period will close on August 17, 2021, 45 days after the Publication in the Notice Register on July 2, 2021. Any person may submit public comments regarding the proposed changes in writing. To be considered, comments must be received before the close of the comment period.

Use one of the following to submit: MAIL or HAND DELIVER Regulatory Manager CALPIA/Legal Services Unit 560 East Natoma Street Folsom, CA 95630 FAX (916) 358–2709 E–MAIL PIAregs@calpia.ca.gov

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 850 Due to limitations of the email system, emails larger than 15 megabytes (MB) may be rejected and will not be delivered and received by CALPIA. Therefore, emails larger than 15 MB should be submitted in several separate emails or another form of delivery should be used. CALPIA requests but does not require that reports or articles in excess of 25 pages submitted with any comments include a

summary of the reports or articles. This

summary should include a concise overview of the report or article, describe the reason for submitting the report and describe the relevance of the reports or articles to the proposed regulation. Please note that under the California Public Records Act (Gov. Code

Section 6250, et seq., your written and oral comments, attachments, and associated contact information ( e.g., your address, phone, email, etc.) become part of the public record and can be released to the public upon request. CONTACT PERSONS Please direct any inquiries regarding this action or questions of substance of the proposed regulatory action, or for copies of the proposed text of the regulations, the initial statement of reasons, the modified text of the regulations, if any, or other information upon which the rulemaking is based to the above–referenced persons: M.

Doherty, Regulatory Manager California Prison Industry Authority 560 East Natoma Street, Folsom, CA 95630 Telephone (916) 358–1711 In the event the contact person is unavailable, inquiries should be directed to: C. Pesce, Executive Assistant California Prison Industry Authority 560 East Natoma Street, Folsom, CA 95630 Telephone (916) 358–1711 AUTHORITY AND REFERENCE Penal Code

Section 2800: In 1982, the California Legislature restructured the Department of Corrections’ industries and vocational training program for incarcerated individuals abolishing the Correctional Industries Commission and replacing it with the newly created Prison Industry Authority (PIA) (subsequently renamed CALPIA) under the direction of the Prison Industry Board. Penal Code

Section 2807(a):

Section 2807(

a) provides that CALPIA is authorized and empowered to operate industrial, agricultural, and service enterprises which will provide products and services needed by the state, or any political subdivision thereof, or by the federal government, or any department, agency, or corporation thereof, or for any other public use. By giving CALPIA these duties and powers by statute, rulemaking authority is implicitly delegated to adopt those rules and regulations necessary for the due and efficient exercise of a duty or power expressly granted. Penal Code

Section 2802:

Section 2802 provides for the existence of a Prison Industry Board (PIB). Penal Code

Section 2808:

Section 2808 provides the PIB, in the exercise of its duties, all of the powers to do all of the things that the board of directors of a private corporation would do. State Departments have been given “Quasi– Legislative” powers to adopt rules (regulations) that are consistent with state law so that they can run the programs they that are responsible for. One court opinion described this as the power to “fill in the details” of the state statute(

s) that empower a department to operate a program. Helene Curtis, Inc. v. Assessment Appeals Bd. (1999) 76 Cal.App.4th 124. By the implied terms of Penal Code Sections 2808, 2802, 2807, 2800, CALPIA has the authority to adopt regulations to implement, interpret, make specific or otherwise carry out the provisions of these statutes. INFORMATIVE DIGEST CALPIA is conducting auctions of property of surplus and discontinued goods and property.

In order to meet ethical standards, a prohibition is necessary against an employee using inside nonpublic information to obtain advantage bidding at an auction, or to assist another to do so. There must be fair and open access to the public for all auctions of CALPIA property, and this regulation provides guidance and a standard for employees. Auctions are conducted online through the Department of General Services’ (DGS) Gov Deals website for state property. DGS has told CALPIA to now sell its property directly.

Assets, equipment, raw materials, goods and property are sold per the State Administrative Manual requirements. This regulation is also important due to recent items in the news. In 2020, the National Law Journal reported the improper use of insider information for personal benefit at CalPERS. This regulation ensures that CALPIA is operating best practices to eliminate such a possibility with auctions. In order to fully support CALPIA ’s purpose to operate like a private, self–sustaining business and to function safely and efficiently, the proposed amended regulation is necessary. Pursuant to Government Code

section 11342.2, the proposed amendment is consistent with, and not in conflict with, PC sections 2801 through 2808. The proposed regulatory action is

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 851 reasonably necessary to effectuate the purposes of PC

section 2801 through 2808. POLICY STATEMENT OVERVIEW CALPIA and the State are moving into the digital world/platform that itself is monitored. Best practices are having auctions that all parties may participate in as long as they do not have insider information. An example would be if an employee knows which lot of an item has holes in it, and bids on a different lot that does not, and that information is not listed on the surplus sale.

Anticipated Benefits of the Proposed Regulation: The proposed regulatory action will promote fairness and increase transparency in government as well as provide California residents the benefit of ensuring the ethical use of auctions and sales to dispose of surplus and discontinued good and property.

Evaluation of Inconsistency/Incompatibility with Existing Regulations: CALPIA evaluated whether the proposed regulations are inconsistent or incompatible with existing state regulations and has determined that no other state regulations address the same subject matter and that the proposed regulations are consistent and compatible with other existing state regulations. During the process of developing this regulation, CALPIA has conducted a search of any similar regulations on this topic and has concluded that these regulations are neither inconsistent nor incompatible with existing laws and regulations.

After conducting a review for regulations that would relate to or affect this area, CALPIA has concluded that these are the only CALPIA regulations that concern these exact processes and procedures for the adoption, amendment, and repeal of regulations by California state agencies. Mandated by Federal Law or Regulations: The proposed regulations are not federally mandated. DISCLOSURES REGARDING THE PROPOSED ACTION Local Mandates: Mandate on local agencies and school districts: None.

This action imposes no mandates on local agencies or school districts, or a mandate which requires reimbursement pursuant to Government Code Sections 17500 through 17630. Fiscal Impact Statement: Cost or savings to any state agency: None. Cost to any local agency or school district that is required to be reimbursed in accordance with Government Code Sections 17500 through 17630: None. Other nondiscretionary cost or savings imposed on local agencies: None. Cost or savings in federal funding to the State: None. Cost impact on a representative private person or business: None.

CALPIA is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. Significant Statewide Adverse Economic Impact on Business: CALPIA has determined that the proposed action will not have a significant statewide adverse economic impact directly affecting businesses, including the ability of California businesses to compete with businesses in other states, because they are not affected by the internal management of CALPIA employees.

Effect on Housing Costs: CALPIA has determined that the proposed action will have no significant effect on housing costs. Results of the Economic Impact Analysis/ Assessment: CALPIA concludes that it is unlikely that the proposed regulations will: (1) create or eliminate any jobs; (2) create or eliminate any businesses; or (3) result in the expansion of businesses currently doing business within the state. In accordance with Government Code

Section 11346.3(b), the CALPIA has made the following assessments regarding the proposed regulation. Benefits of Proposed Action: As stated above under the Informative Digest and Policy Statement Overview, the benefits of the regulatory action include the benefit of ensuring the ethical use of auctions and sales to dispose of surplus and discontinued goods and property. There is no anticipated benefit to worker safety or the state’s environment by this proposed action. Thus, this proposed action benefits the public and general welfare.

Creation or Elimination of Jobs Within the State of California: CALPIA has determined that these regulatory changes will have no impact on the creation or elimination of existing jobs within California because those jobs are not affected by the internal management of CALPIA employees. Creation, Expansion, or Elimination of Existing Businesses (Small or Large) Within the State of California: This action will not create or eliminate existing jobs within the State of California. It is determined that this action has no significant adverse economic impact on

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 852 jobs within the State of California because these jobs are not affected by CALPIA ’s proposed regulatory changes any differently than exists presently or there is no impact on existing jobs and therefore there is no impact with the adoption of this section. Reports Relied Upon: None. Cost Impacts on Representative Private Persons or Businesses: CALPIA is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action.

Effect on Small Businesses: CALPIA has determined that this action has no significant adverse economic impact on small business because they are not affected the internal management of CALPIA. Consideration of Alternatives: In accordance with Government Code

section 11346.5, subdivision (a)(13), CALPIA must determine that no reasonable alternative it considered or that has otherwise been identified and brought to its attention would be more effective in carrying out the purpose for which the action is proposed or would be as effective and less burdensome to affected private persons than the proposed action or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provision of law.

Interested persons may present statements or arguments with respect to alternatives to the proposed regulations to the aforementioned contact persons. Availability of Statement of Reasons, Text of Proposed Regulations, and Rulemaking Documents, and Other Information upon Which the Rulemaking is Based: CALPIA will have the rulemaking file available for inspection and copying throughout the rulemaking process through its aforementioned contact persons at the office location identified above.

As of the date this notice is published in the Notice Register, the rulemaking file consists of this notice, the proposed text of the regulations, the initial statement of reasons, and all rulemaking documents (includes Form 399 and Form 400, special notice requests). As noted above, the Proposed Text, Initial Statement of Reasons, and all the information upon which this proposal is based have been placed in the rulemaking record, which is available to the public upon request directed to the CALPIA ’s contact person. The documents will also be made available on the CALPIA website: www.calpia.ca.gov.

Availability of Changes to Proposed Text: After considering all timely and relevant comments received, the PIB may approve the proposed regulations substantially as described in this Notice. If CALPIA makes modifications which are sufficiently related to the originally proposed text, it will make the modified text (with the changes clearly indicated) available to the public for at least 15 days before the PIB reviews and approves the regulations as revised. CALPIA will accept written comments on the modified regulations for 15 days after the date on which they are made available.

Requests for copies of any modified regulation text should be directed to the contact person indicated in this Notice or can be viewed by visiting CALPIA ’s website: www.calpia.ca.gov. Availability of the Final Statement of Reasons: Following its preparation, a copy of the Final Statement of Reasons may be obtained from CALPIA ’s contact person or by visiting the CALPIA website: www.calpia.ca.gov.

Availability of the Documents on the Internet: Copies of the Notice of Proposed Action, the Initial Statement of Reasons, other information upon which the rulemaking is based and the text of the regulations in underline and strikeout can be accessed through the website at www.calpia.ca.gov. TITLE 16. BOARD OF ACCOUNTANCY NOTICE IS HEREBY GIVEN that the California Board of Accountancy (CBA or Board) is proposing to take the action described in the Informative Digest.

Any person interested may present statements or ar - guments orally or in writing relevant to the action pro- posed at a hearing to be held at: California Board of Accountancy 2450 Venture Oaks Way, Suite 420 Sacramento, CA 95833 10:30 a.m. August 18, 2021 Written comments, including those sent by mail, fac- simile, or e-mail to the addresses listed under Contact Person in this Notice, must be received by the CBA at its office not later than 5:00 p.m. on August 17, 2021, or must be received by the CBA at the hearing on August 18, 2021.

The CBA, upon its own motion or at the request of any interested party, may thereafter adopt the proposals substantially as described below or may modify such proposals if such modifications are sufficiently related to the original text. With the ex- ception of technical or grammatical changes, the full text of any modified proposal will be available for 15 days prior to its adoption from the person designated in this Notice as contact person and will be mailed to

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 853 those persons who submit written or oral testimony related to this proposal or who have requested notifi - cation of any changes to the proposal. Authority and Reference: Pursuant to the authori - ty vested by sections 5010 and 5134 of the Business and Professions Code 1 (BPC or Code), and to imple - ment, interpret or make specific

section 5134 of the Code, the CBA is considering changes to

Section 70 of

Article 10, Division 1 of Title 16 of the California Code of Regulations2 (CCR) as described herein. INFORMATIVE DIGEST A. I nformative Digest The California Board of Accountancy is a licensing board within the Department of Consumer Affairs.

Section 5010 authorizes the board to adopt, repeal, or amend such regulations as may be reasonably neces - sary and expedient for the orderly conduct of its affairs and for the administration of the Accountancy Act. The CBA proposes to increase the fee for the initial permit to practice as a partnership, a corporation, or a certified public accountant, and the fee for renewal of a permit to practice as a partnership, a corporation, a public accountant, or certified public accountant described in

Section 70(

d) and 70(

e) of the CCR and clean up existing regulation language. Existing law establishes the CBA ’s required and per- missible fee schedule.

Section 5134 sets forth the fees, including the limits, the CBA is required to charge applicants and licensees, and requires that any fee in - crease be pursuant to a regulation duly adopted by the board.

Section 5130 requires the CBA to charge and collect a fee from each applicant for a certified pub - lic accountant (CPA) certificate. Pursuant to

Section 51340(j), the initial permit fee is the same amount as the renewal fee in effect on the last regular license re - newal date before the date the permit is issued, unless the permit is issued one year or less before it will ex - pire; if the permit is issued one year or less before it will expire, the initial permit fee is fifty percent (50%) of the renewal fee on the last regular renewal date be - fore the date on which the permit is issued. Prior law,

Section 5134(f), provided that until December 31, 2019, the biennial renewal fee of each of the permits to engage in the practice of public accoun- tancy was a maximum of $250. Pursuant to the provi - sions of AB 1521 (2019–2020, Low) effective January 1, 2020, the biennial renewal fee of each of the permits to engage in the practice of public accountancy shall be a minimum of $250 and a maximum of $280. 1 U nless otherwise specified, all sections refer to the Business and Professions Code. 2 U nless otherwise specified, all California Code of Regulations Sections refer to title 16. Existing regulation,

Section 70(d), provides that the initial permit fee and renewal fees for a permit to prac- tice as a partnership, a corporation, a public accoun - tant, or a certified public accountant are $120 each, respectively. Although the regulation specifies the $120 fee level, BPC 5134 was amended and established a minimum fee level of $250 effective January 1, 2020. BPC 5134 also set a statutory maximum level of $280. The CBA proposes to increase the fee for the ini - tial permit to practice as a partnership, a corporation, or a certified public accountant to the statutory max - imum of $280 and align the regulations to reflect this increase as described in 16 CCR

Section 70(

d) from $120 to $280. The CBA proposes to increase the fee for renewal of a permit to practice as a partnership, a corporation, a public accountant, or certified public accountant to the statutory maximum of $280 and align the regulations to reflect this increase as described in 16 CCR

Section 70(

e) from $120 to $280. As noted above, the CBA intends to clean up exist - ing regulation language specifying the effective date of fees, specifically the reference to July 1, 2016. Also removed is a now–obsolete reporting subsection that required the Board to issue a report regarding the ap - propriate level offees by July 1, 2016. B. P olicy Statement Overview/Anticipated Benefits of Proposal In accordance with

Section 5000.1, the CBA ’s high- est priority is protection of the public in exercising its licensing, regulatory, and disciplinary functions. The CBA is a self–supporting, special fund agency that generates its revenues from fees authorized by the Legislature. In order to continue performing these functions essential to protecting consumers, the CBA must ensure it maintains a healthy fund balance by generating sufficient revenue.

This regulatory proposal to increase initial permit and renewal fees would benefit consumers by helping to ensure the CBA has sufficient resources to protect consumers from unqualified and/or unscrupulous in - dividuals and/or firms providing public accountancy services. Further, this proposal would ensure that the CBA has sufficient resources to fund unanticipated en- forcement and litigation activities pursuant to

Section 5025.2, weather enforcement cases against large ac - countancy firms and/or extensive and prolonged ap - peals, update and modernize its database, and remain financially solvent. C. C onsistency and Compatibility with Existing State Regulations During the process of developing these regulations and amendments, the CBA has conducted a search of any similar regulations on this topic and has conclud - ed that these regulations are neither inconsistent nor incompatible with existing state regulations.

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 854 FISCAL IMPACT ESTIMATES Fiscal Impact on Public Agencies Including Costs or Savings to State Agencies or Costs/Savings in Federal Funding to the State: The CBA indicates because the fees are already being assessed and the proposed regulations only in - crease the fee amount levels, no additional workload or costs are anticipated.

The Board estimates the proposed regulations will increase revenues by approximately $1.53 million per year, narrow the structural imbalance between reve - nues and expenditures, and provide for a prudent fund balance reserve in the near future. Nondiscretionary Costs/Savings to Local Agencies: If local agencies employ CPAs and cover the asso - ciated costs of license renewal, there may be a fiscal impact. Local Mandate: None. Cost to Any Local Agency or School District for Which Government Code Sections 17500–17630 Require Reimbursement: None.

Business Impact: The CBA has made an initial determination that the proposed amendment may have a significant state - wide adverse economic impact directly affecting busi- ness, including the ability of California businesses to compete with businesses in other states, specifically, public accountancy firms and individuals practicing public accountancy. The CBA has considered pro - posed alternatives that would lessen any adverse eco - nomic impact on business and invites you to submit proposals. Submissions may include the following considerations: (

A) The establishment of differing compliance or reporting requirements or timetables that take into account the resources available to businesses. (

B) Consolidation or simplification of compliance and reporting requirements for businesses. (

C) The use of performance standards rather than prescriptive standards. (

D) Exemption or partial exemption from the regulatory requirements for businesses. The following types of businesses would be affected: (

A) Public accountancy firms (

B) Individual certified public accountants operating as sole proprietors The following reporting, recordkeeping or other compliance requirements are projected to result from the proposed action: (

A) None. Cost Impact on Representative Private Person or Business: The cost impacts that a representative private per - son or business would necessarily incur in reason - able compliance with the proposed action and that are known to the CBA are an increase of the initial licens- ing fee and the biennial renewal fee in the amount of $30 each, respectively, and an increase of $15 in the delinquency fee if an individual or firm is delinquent in the payment of the renewal fee.

Although the regulation specifies a $120 fee level, BPC 5134, amended and effective January 1, 2020, es - tablished a minimum fee level of $250 and a statutory maximum level of $280. The $30 increase is reflective of what is being assessed now ($250) and what is pro - posed to be assessed ($280). Effect on Housing Costs: None.

EFFECT ON SMALL BUSINESS The CBA has determined that the proposed regu - lations may affect small businesses as the proposal would increase the initial licensing fee and the bienni- al renewal fee in the amount of $30 each, respectively, and increase the delinquency fee in the amount of $15 if an individual or firm is delinquent in the payment of the renewal fee. Although the regulation specifies a $120 fee level, BPC 5134, amended and effective January 1, 2020, es - tablished a minimum fee level of $250 and a statutory maximum level of $280.

The $30 increase is reflective of what is being assessed now ($250) and what is pro - posed to be assessed ($280). RESULTS OF ECONOMIC IMPACT ASSESSMENT/ANALYSIS Impact on Jobs/Businesses: The CBA has determined that this regulatory pro - posal will not have any impact on the creation of jobs or new businesses or the elimination of jobs or existing businesses or the expansion of businesses in the State of California.

This is because this regulation increases license fees by $15 per year, which is an amount not significant enough, given the industry licensed, to ma- terially impact the creation, expansion, or elimination of jobs or businesses.

Benefits of Regulation to Health and Welfare of California Residents: This proposal would ensure continued consumer protection per the CBA ’s mandate by stabilizing the CBA ’s reserve fund so it has the financial resources to continue to prosecute unqualified and/or unscrupulous individuals and/or firms providing public accountancy services, fund unanticipated enforcement and litiga - tion activities pursuant to

Section 5025.2, whether en -

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 855 forcement cases against large accountancy firms and/ or extensive and prolonged appeals, and remain finan- cially solvent. Benefits of Regulation to Worker Safety and the State’s Environment: None.

CONSIDERATION OF ALTERNATIVES The CBA must determine that no reasonable alter - native it considered to the proposal or that has oth - erwise been identified and brought to its attention would be more effective in carrying out the purpose for which the action is proposed, would be as effec - tive and less burdensome to affected private persons than the proposal described in this Notice, or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provision of law.

Any interested person may submit comments to the CBA in writing relevant to the above determinations at 2450 Venture Oaks Way, Suite 300, Sacramento, California, 95833 and/or present such statements or arguments orally or in writing at the above –mentioned hearing. INITIAL STATEMENT OF REASONS AND INFORMATION The CBA has prepared an initial statement of the reasons for the proposed action and has available all the information upon which the proposal is based.

TEXT OF PROPOSAL Copies of the exact language of the proposed regu - lations, and any document incorporated by reference, and of the initial statement of reasons, and all of the information upon which the proposal is based, may be obtained at the hearing or prior to the hearing upon re- quest from the CBA at 2450 Venture Oaks Way, Suite 300, Sacramento, California, 95833.

A VAILABILITY AND LOCATION OF THE FINAL STATEMENT OF REASONS AND RULEMAKING FILE All the information upon which the proposed reg - ulations are based is contained in the rulemaking file which is available for public inspection by contacting the person named below. You may obtain a copy of the final statement of rea- sons, once it has been prepared, by making a written request to the contact person named below or by ac - cessing the website listed below.

CONTACT PERSON Inquiries or comments concerning the proposed rulemaking action may be addressed to: Name: Christy Abate Address: 2450 Venture Oaks Way Suite 300 Sacramento, CA 95833 Telephone Number: (916) 561-1715 Fax Number: (916) 263-3678 E-mail Address: christy.abate@cba.ca.gov Name: Kim Koski Address: 2450 Venture Oaks Way Suite 300 Sacramento, CA 95833 Telephone Number: (916) 561-4370 Fax Number: (916) 263-3674 E-mail Address: kim.koski@cba.ca.gov TITLE 18. BOARD OF EQUALIZATION THE BOARD OF EQUALIZATION PROPOSES TO ADOPT

SECTION 462.540, CHANGE IN OWNERSHIP — BASE YEAR V ALUE TRANSFERS NOTICE IS HEREBY GIVEN that the State Board of Equalization (Board), pursuant to the authority vested in it by Government Code

section 15606, proposes to adopt California Code of Regulations, title 18,

section (Rule or Property Tax Rule) 462.540, Change in Ownership — Base Year Value Transfers. This Rule implements, interprets, and makes specific certain change in ownership exclusion provisions provided by

section 2.1 of

article XIII A of the California Constitution (Section 2.1). Specifically,

Section 2.1, subdivision (b), creates the ability for any eligible homeowner who is either at least 55 years of age, severely disabled, or a victim of a wildfire or natural disaster, to transfer their property tax base year value to a replacement home within any of the 58 counties of California. This new base year value transfer is operative for transfers occurring on or after April 1, 2021. Additionally,

Section 2.1, subdivision (e), provides relevant

definitions for the

interpretation of the new base year value transfer. Pursuant to the changes enacted by

Section 2.1, subdivisions (

b) and (e), the proposed new Property Tax Rule 462.540 (Proposed Rule) clarifies homeowner eligibility and provides specificity to claim the base year value transfers, as necessary for the fair and efficient administration of

Section 2.1, and to provide examples.

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 856 PUBLIC HEARING The Board will conduct a meeting on August 24–25, 2021 via teleconference, consistent with the Governor’s Executive Order N–29–20 (issued March 17, 2020). The Board will provide notice of the meeting to any person who requests that notice in writing and make the notice, including the specific agenda for the meeting, available on the Board’s website at www.boe. ca.gov at least 10 days in advance of the meeting.

A public hearing regarding the proposed regulatory action will be held at 10:00 a.m. on August 24, 2021, or as soon thereafter as the matter may be heard at the Board’s August 24–25, 2021 meeting. At the hearing, any interested person may present or submit oral or written statements, arguments, or contentions regarding the adoption of the new Property Tax Rule 462.540. AUTHORITY Government Code

section 15606, subdivision (c). REFERENCE

Article XIII A,

section 2.1, California Constitution; and Revenue and Taxation Code

section 60. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Current Law Proposition 13 was adopted by the voters at the June 1978 primary election and added

article XIII A to the California Constitution.

Article XIII A generally limits the amount of ad valorem tax to a maximum of one percent of the full cash value of real property. For purposes of this limitation,

section 2 of

article XIII A defines full cash value to mean a county assessor’s valuation of real property as shown on the 1975–76 tax bill, or thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. In general, properties are reassessed to current market value only upon a change in ownership or the completion of new construction, establishing a new “base year value” for property tax purposes. The California Legislature codified the definition of “change in ownership” in Revenue and Taxation Code (RTC)

section 60 and codified other provisions regarding whether a transfer of property results in a change in ownership, is excluded from the definition of “change in ownership,” or allows for the transfer of a property’s base year value to a replacement property. 1 (RTC sections 61 through 69.5). Since Proposition 13 was enacted, voters have amended

Article XIII A of the constitution several times to provide specified conditions permitting the transfer of a property’s base year value from an existing principal residence to a replacement principal residence: ● P roposition 60 (1986) authorized persons aged 55 or older to transfer the base year value of their principal residence to a replacement dwelling, if the replacement is within the same county (intracounty), of equal or lesser value, and was purchased or newly constructed within two years of the sale of the principal residence. ● P roposition 90 (1988) expanded the base year value transfer authorized by Proposition 60 to allow for intercounty transfers if the county had authorized such a transfer by ordinance. ● P roposition 110 (1990) expanded the base year value transfer eligibility established by Propositions 60/90 to severely and permanently disabled claimants. ● P roposition 50 (1986) allows property owners to transfer their base year value transfer of an original property that has been substantially damaged or destroyed in a Governor–declared disaster to a comparable replacement property located within the same county. ● P roposition 171 (1993) expanded the base year value transfer eligibility established by Proposition 50 to allow for intracounty transfers if the county has authorized such a transfer by ordinance.

These constitutional amendments are reflected in

article XIII A,

section 2 of the California Constitution and have been further implemented and codified as RTC sections 69 (Proposition 50), 69.3 (Proposition 171), and 69.5 (Propositions 60, 90, and 110). In the November 3, 2020 general election, the voters amended the constitution by approving Proposition 19. Proposition 19 defined eligibility conditions for persons, who are aged 55 or older, severely disabled, or a victim of wildfire or natural disaster, to engage in statewide base year value transfers (by adding

Section 2.1, subdivisions (

b) and (e)). Proposition 19, while 1 As the transfer of a base year value to a replacement property allows the owner to be assessed property tax based on the historic factored base year value transferred (generally established at a lower fair market value, as adjusted for inflation), the transfer of a base year value to a replacement property is referred to as “prop - erty tax relief.”

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 857 replacing existing base year value transfer provisions for seniors and severely and permanently disabled as provided in

Section 2,

Article XIII A of the California Constitution implemented by Revenue and Taxation Code

section 69.5, enacted options for taxpayers to transfer the base year values of their principal residences substantially damaged or destroyed in a disaster in addition to those previously authorized by

Section 2 of

Article XIII A and implemented by sections 69, 69.3, and 70.5 of the Revenue and Taxation Code. Under Government Code

section 15606, subdivision (c), the Board is authorized to prescribe rules and regulations to govern local boards of equalization and assessment appeals boards when equalizing and county assessors when assessing. The Board proposed to adopt Property Tax Rule 462.540, Exclusion from Change in Ownership — Base Year Value Transfers to implement, interpret, and make specific the change in ownership provisions instituted by Proposition 19. In particular, Property Tax Rule 462.540 implements, interprets, and makes specific California Constitution,

article XIII A,

section 2.1, subdivision (b), which provides that: (

b) Property Tax Fairness for Seniors, the Severely Disabled, and Victims of Wildfire and Natural Disasters. Notwithstanding any other provision of this Constitution or any other law, beginning on and after April 1, 2021, the following shall apply:

(1) Subject to applicable procedures and

definitions as provided by statute, an owner of a primary residence who is over 55 years of age, severely disabled, or a victim of a wildfire or natural disaster may transfer the taxable value of their primary residence to a replacement primary residence located anywhere in this state, regardless of the location or value of the replacement primary residence, that is purchased or newly constructed as that person’s principal residence within two years of the sale of the original primary residence.

(2) For purposes of this subdivision: (

A) For any transfer of taxable value to a replacement primary residence of equal or lesser value than the original primary residence, the taxable value of the replacement primary residence shall be deemed to be the taxable value of the original primary residence. (

B) For any transfer of taxable value to a replacement primary residence of greater value than the original primary residence, the taxable value of the replacement primary residence shall be calculated by adding the difference between the full cash value of the original primary residence and the full cash value of the replacement primary residence to the taxable value of the original primary residence.

(3) An owner of a primary residence who is over 55 years of age or severely disabled shall not be allowed to transfer the taxable value of a primary residence more than three times pursuant to this subdivision.

(4) Any person who seeks to transfer the taxable value of their primary residence pursuant to this subdivision shall file an application with the assessor of the county in which the replacement primary residence is located. The application shall, at minimum, include information comparable to that identified in paragraph (1) of subdivision (

f) of

Section 69.5 of the Revenue and Taxation Code, as that

section read on January 1, 2020. Property Tax Rule 462.540 also implements, interprets, and makes specific

Section 2.1, subdivision (e), which provides, in relevant part, that: (

e) For purposes of this section: (1) “Disabled veteran’s exemption” means the exemption authorized by subdivision (

a) of

Section 4 of

Article XIII. (2) “Family farm” means any real property which is under cultivation or which is being used for pasture or grazing, or that is used to produce any agricultural commodity, as that term is defined in

Section 51201 of the Government Code as that

section read on January 1, 2020. (3) “Family home” has the same meaning as “principal residence,” as that term is used in subdivision (

k) of

Section 3 of

Article XIII. (4) “Full cash value” has the same meaning as defined in subdivision (

a) of

Section 2. (5) “Homeowner’s exemption” means the exemption provided by subdivision (

k) of

Section 3 of

Article XIII. (6) “Natural disaster” means the existence, as declared by the Governor, of conditions of disaster or extreme peril to the safety of persons or property within the affected area caused by conditions such as fire, flood, drought, storm, mudslide, earthquake, civil disorder, foreign invasion, or volcanic eruption. (7) “Primary residence” means a residence eligible for either of the following: (

A) The homeowner’s exemption. (

B) The disabled veteran’s exemption. (8) “Principal residence” as used in subdivision (

b) has the same meaning as that term is used in subdivision (

a) of

Section 2.

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 858 (9) “Replacement primary residence” has the same meaning as “replacement dwelling,” as that term is defined in subdivision (

a) of

Section 2. (10) “Taxable value” means the base year value determined in accordance with subdivision (

a) of

Section 2 plus any adjustment authorized by subdivision (

b) of

Section 2. Effects, Objectives, and Benefits of the Proposed Property Tax Rule Here, the relevant Proposition 19 provisions became effective as of April 1, 2021. Under Government Code

section 15606, subdivision (c), the Board is authorized to prescribe rules and regulations to govern local boards of equalization and assessment appeals boards when equalizing and county assessors when assessing. Consistent with this responsibility, the Board seeks to promulgate new Property Tax Rule 462.540 to provide clarity of the relevant provisions within

Section 2.1 of

article XIII A of the California Constitution. Specifically, the Board is proposing this Rule to implement, interpret, and make specific subdivisions (

b) and (

e) of

section 2.1 of

article XIII A of the California Constitution. Proposed Rule 462.540, subdivision (

a) makes explicit or provides clarification for specific provisions of

Section 2.1, subdivision (b), including: ● That either the sale of the original primary residence or the purchase or new construction of the replacement primary residence, but not both, may occur prior to April 1, 2021; ● That the real property from which a particular base year value is transferred is the original primary residence either at the time of its sale or at the time the claimant became a victim of a wildfire or natural disaster; ● That a qualifying original primary residence undergoes a change in ownership that either subjects the property to reappraisal at current full cash value or results in a base year value determined in accordance with this rule or RTC sections 69 or 69.3 (i.e. the original primary residence is a qualifying replacement primary residence, dwelling or property for the base year value transfer of another eligible claimant); ● That the replacement primary residence is purchased or newly constructed within two years of the sale of the original primary residence.

In instances where the replacement is, in part, purchased and also, in part, newly constructed, the latter date is used, and the base year value does not transfer until the original primary residence is sold; ● That at the time the claim is filed, the purchased or newly constructed dwelling qualifies as the person’s replacement primary residence; and ● That the person has not previously been granted property tax relief provided by this rule more than two previous times, not including previous claims due to wildfires or natural disasters. Additionally, subdivision (

a) includes three examples. Example 1 shows that the original primary residence must undergo a 100 percent change in ownership that results in a reappraisal of the property at its current full cash value. Example 2 illustrates that the claimant does not need to own 100 percent of the replacement primary residence for their original primary residence’s base year value to transfer. Examples 4 and 5 illustrate the principle that the replacement primary residence must be purchased within two years of the sale of the original primary residence.

Example 6 illustrates that a married couple may qualify to transfer the base year value of their community property primary residence provided that the claimant spouse has not yet used the exclusion more than two previous times. Importantly, the proposed rule provides clarification for valuation of real property under Proposition 19’s base year value transfer exclusion.

Subdivision (b)(1) provides that if the replacement primary residence’s full cash value is of equal or lesser value than the full cash value of the original primary residence, then the new base year value of the replacement primary residence will be the original primary residence’s factored base year value. Example 7 provides an illustration of this calculation.

Additionally, subdivision (b)(2) explains that if the replacement primary residence’s full cash value is greater than the full cash value of the original primary residence, then the new base year value of the replacement primary residence will be the sum of the factored base year value of the original primary residence plus the difference between the full cash values of the replacement and original primary residences. Example 8 illustrates this calculation. Subdivision (b)(3) clarifies that the full cash value of the original primary residence shall be determined as of the date of its sale,

whereas the full cash value of the replacement primary residence shall be determined as of the date it is purchased or newly constructed. Subdivision (

c) of the Proposed Rule provides

definitions for terms used throughout the Rule and which are required for its implementation. It includes certain

definitions (such as “full cash value,” and “primary residence”) or clarifies other

definitions (such as “natural disaster”) that are found within

Section 2.1, subdivision (e). The Proposed Rule in subdivision (

d) clarifies

Section 2.1, subdivision (b)(4) and provides claim filing instructions, including: how an eligible transferee can file a claim for base year value transfer; when the claim is considered timely; and that an untimely claim will only provide prospective relief. The Proposed

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 859 Rule requires county assessors to report such claims quarterly to the State Board of Equalization. Example 9 provides an illustration of what property tax relief is available for an untimely base year value transfer claim. Subdivision (

e) of the Proposed Rule provides further clarification regarding the timing of the transfer, including: that the adjustment to the new base year value of the replacement primary residence must be made as of the latest of specified dates; under what conditions must levied taxes on the replacement primary residence be canceled or refunded (as illustrated by Example 10); that

chapter 3.5 of the RTC (starting with

section 75 and notwithstanding

section 75.10) governs this subdivision’s implementation; and under what conditions this property tax relief extends to new construction completed after a base year value transfer claim has already been granted under this Proposed Rule (as illustrated by Examples 11 and 12). Subdivision (

f) of the Proposed Rule clarifies how

Section 2.1’s base year value transfer provision applies to situations where the claimant is a co–owner of an original primary residence. Subdivision (

g) clarifies that multiunit properties and mobilehomes are also eligible for base year value transfers, as described. The above clarifications are reasonably necessary for the efficient and fair administration of the change in ownership provisions under

section 2.1 of

article XIII A of the California Constitution applicable to base year value transfers. The Board anticipates that the Proposed Rule will increase openness and transparency in government and benefit the public, local boards of equalization and assessment appeals boards, county assessors, and owners of property potentially eligible for a base year value transfer provided by Proposition 19. The Board has performed an evaluation of whether proposed Property Tax Rule 462.540 is inconsistent or incompatible with existing state regulations.

The Board has determined that the Proposed Rule is not inconsistent or incompatible with existing state regulations because there are no other Property Tax Rules that prescribe the provisions that would be adopted by the proposed new Rule. In addition, there is no comparable federal regulation or statute to proposed Property Tax Rule 462.540. NO MANDATE ON LOCAL AGENCIES AND SCHOOL DISTRICTS The Board has determined that the adoption of the Proposed Rule will not impose a mandate on local agencies or school districts, including a mandate that requires state reimbursement under

part 7 (commencing with

section 17500) of division 4 of title 2 of the Government Code. ONE–TIME COST TO STATE AGENCIES, LOCAL AGENCIES, AND SCHOOL DISTRICTS The Board has determined that the adoption of proposed new Property Tax Rule 462.540 will result in an absorbable $856 one–time cost for the Board to update its website, issue letters regarding this Rule to interested parties, and train county assessors on how to assess property under this Rule after the Proposed Rule is completed. The Board has determined that the adoption of the Proposed Rule will result in no other direct or indirect cost or savings to any state agency, no cost to any local agency or school district that is required to be reimbursed under

part 7 (commencing with

section 17500) of division 4 of title 2 of the Government Code, no other non–discretionary cost or savings imposed on local agencies, and no cost or savings in federal funding to the State of California. NO SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT DIRECTLY AFFECTING BUSINESS The Board has made an initial determination that the adoption of the Proposed Rule will not have a significant, statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states. NO EFFECT ON SMALL BUSINESS The adoption of the proposed new Rule is not expected to affect small business because

Section 2.1, subdivision (

b) of

Article XIII A does not apply to small businesses. NO COST IMPACTS TO PRIVATE PERSONS OR BUSINESSES The Board is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. RESULTS OF THE ECONOMIC IMPACT ASSESSMENT REQUIRED BY GOVERNMENT CODE

SECTION 11346.3, SUBDIVISION (

b) The Board assessed the economic impact of proposed new Property Tax Rule 462.540 on

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 860 California businesses and individuals and determined that the Proposed Rule is not a major regulation as defined in Government Code

section 11342.548 and California Code of Regulations, title 1,

section 2000. Therefore, the Board has prepared the economic impact assessment (EIA) required by Government Code

section 11346.3, subdivision (b)(1), for the Proposed Rule and included it in the initial statement of reasons. In the EIA, the Board has determined that the adoption of the Proposed Rule will neither create nor eliminate jobs in the State of California, nor create new businesses or eliminate existing businesses within the state, nor expand businesses currently doing business in the State of California. Furthermore, the Board has determined that the adoption of the Proposed Rule will not affect the benefits of the rule to the health and welfare of California residents, worker safety, or the state’s environment.

NO SIGNIFICANT EFFECT ON HOUSING COSTS The adoption of proposed Property Tax Rule 462.540 will not have a significant effect on housing costs.

DETERMINATION REGARDING ALTERNATIVES The Board must determine that no reasonable alternative considered by it or that has been otherwise identified and brought to its attention would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provisions of law than the proposed action.

CONTACT PERSONS Questions regarding the substance of the Proposed Rule should be directed to Mr. Henry Nanjo, Chief Counsel, by telephone at (916) 216–7838, by e–mail at henry.nanjo@boe.ca.gov, or by mail at State Board of Equalization, Attn: Henry Nanjo, MIC: 121, P.O. Box 942879, Sacramento, CA 94279–0121. Written comments for the Board’s consideration, notice of intent to present testimony or witnesses at the public hearing, and inquiries concerning the proposed administrative action should be directed to Mr.

Henry Nanjo, Chief Counsel, by telephone at (916) 216–7838, by e–mail at henry.nanjo@boe.ca.gov, or by mail at State Board of Equalization, Attn: Henry Nanjo, MIC: 121, P.O. Box 942879, Sacramento, CA 94279–0121. Ms. Honey Her, Associate Government Program Analyst, is the designated backup contact person to Mr. Nanjo for this matter and can be reached by telephone at (916) 274–3523 and by e–mail at honey. her@boe.ca.gov.

WRITTEN COMMENT PERIOD The written comment period ends at 10:00 a.m. on August 24, 2021, or as soon thereafter as the Board holds the public hearing regarding the Proposed Rule during the August 24–25, 2021 Board meeting. Written comments received by Mr. Nanjo at the postal address or email address provided above, prior to the close of the written comment period, will be presented to the Board and the Board will consider the statements, arguments, and/or contentions contained in those written comments before the Board decides whether to adopt the Proposed Rule.

The Board will only consider written comments received by that time. A VAILABILITY OF INITIAL STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATION The Board has prepared an underline version of proposed new Property Tax Rule 462.540 illustrating the express terms of the Proposed Rule and an initial statement of reasons for the adoption of the Proposed Rule, which includes the economic impact assessment required by Government Code

section 11346.3, subdivision (b)(1). These documents and all the information on which the Proposed Rule is based are available to the public upon request. The rulemaking file is available for public inspection at 450 N Street, Sacramento, California. The express terms of the proposed new Rule and the Initial Statement of Reasons are also available on the Board’s website at www.boe.ca.gov. SUBSTANTIALLY RELATED CHANGES PURSUANT TO GOVERNMENT CODE

SECTION 11346.8 The Board may adopt the Proposed Rule with changes that are nonsubstantial or solely grammatical in nature, or sufficiently related to the original proposed text that the public was adequately placed on notice that the changes could result from the originally proposed regulatory action. If a sufficiently related change is made, the Board will make the full text of the resulting regulation, with the change clearly indicated, available to the public for at least 15 days prior to adoption. The text of the resulting regulation will be mailed to those interested parties who commented on the original proposed regulation orally or in writing or

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 861 who asked to be informed of such changes. The text of the resulting regulation will also be available to the public from Mr. Nanjo. The Board will consider written comments on the resulting regulation that are received prior to adoption. A VAILABILITY OF FINAL STATEMENT OF REASONS If the Board adopts the Proposed Rule, the Board will prepare a final statement of reasons, which will be made available for inspection at 450 N Street, Sacramento, California, and available on the Board’s website at www.boe.ca.gov. TITLE 24.

STATE BUILDING STANDARDS COMMISSION/ CALIFORNIA ENERGY COMMISSION PROPOSED REVISIONS TO THE CALIFORNIA BUILDING ENERGY EFFICIENCY STANDARDS 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE

PART 11, AND PARTS 2, 2.5, 3, 4, AND 5 CALIFORNIA ENERGY COMMISSION DOCKET NO. 21–BSTD–03 INTRODUCTION Notice is hereby given that the California Energy Commission (Energy Commission) proposes to adopt changes to the Building Energy Efficiency Standards contained in the California Green Building Standards Code, California Code of Regulations (CCR), Title 24,

Part 11 (also known as CALGreen). In addition, the Energy Commission is making non–substantive changes to Parts 2, 2.5, 3, 4, and 5. The Energy Commission has prepared this Notice of Proposed Action (NOPA) and an Initial Statement of Reasons (ISOR) regarding the need for the proposed revisions and has made available all the information upon which its proposal is based. The Energy Commission has also published the Express Terms (45–Day Language) of the proposed amendment language.

These documents can be obtained from the contact persons designated below or from the Energy Commission website at https://www.energy. ca.gov/programs–and–topics/programs/building– energy–efficiency–standards/2022–building–energy– efficiency. PUBLIC HEARING AND ADOPTION BY COMMISSION The Energy Commission will hold a public hearing for the purpose of hearing comments on the proposed standards at the date and time listed below. Interested persons, or their authorized representative, may present oral and written statements, arguments, or contentions relevant to the proposed standards at the public hearing.

The public hearing will be held remotely, consistent with Executive Orders N–25–20 and N–29–20 and the recommendations from the California Department of Public Health to encourage physical distancing to slow the spread of COVID–19. Instructions for remote participation are below. Public Hearing and Proposed Adoption Date September 30, 2021 10:00 a.m. (Pacific Time) REMOTE ATTENDANCE The workshop may be accessed by clicking the Zoom link below or visiting Zoom at https://join. zoom.us and entering the ID and password for the workshop listed below.

If you experience difficulties joining, you may contact Zoom at (888) 799–9666 ext. 2, or the Public Advisor’s Office at publicadvisor@ energy.ca.gov or (800) 822–6228. Link: https://energy.zoom.us/j/93869230237?pwd= Zm96c09ULzdXTjd4eldtUXdnUGErdz09 Webinar ID: 93869230237 Password: mtg@10am To participate by telephone dial (213) 338–8477 or 1–888–475–4499 (toll free). When prompted, enter the Webinar ID and password listed above. To comment or ask a question over the telephone, dial *9 to “raise your hand” and *6 to mute/unmute your phone line.

PUBLIC ADVISOR The Energy Commission’s Public Advisor’s Office provides the public assistance in participating in Energy Commission proceedings. For information on participation or to request interpreting services or reasonable accommodations, reach out via email at publicadvisor@energy.ca.gov, by phone at (916) 654–4489, or toll free at (800) 822–6228. Requests for interpreting services and reasonable accommodations should be made at least five days in advance. The Energy Commission will work diligently to accommodate all requests.

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 862 Zoom: If you experience difficulties with the Zoom platform, please contact the Public Advisor’s office via email or phone. MEDIA INQUIRIES Direct media inquiries to the Media and Public Communications Office to (916) 654–4989 or mediaoffice@energy.ca.gov. WRITTEN COMMENT PERIOD Written and oral comments, attachments, and associated contact information (including address, phone number, and email address) will become part of the public record of this proceeding with access available via any internet search engine.

The public comment period for the 2022 Green Building Standards will be held from July 2 through August 16, 2021. Any interested person, or their authorized representative, may submit written comments to the Energy Commission for consideration on or prior to August 16, 2021. The Energy Commission appreciates receiving written comments at the earliest possible date. The Energy Commission encourages use of its electronic commenting system.

Visit the e–commenting page at https://www.energy.ca.gov/programs–and– topics/programs/building–energy–efficiency– standards/2022–building–energy–efficiency , which links to the comment page for this docket. Enter your contact information and a comment title describing the subject of your comment(s). Comments may be included in the “Comment Text” box or attached as a downloadable, searchable document consistent with 20 California Code of Regulations

Section 1208.1. The maximum file size allowed is 10 MB. Written comments may also be submitted by email. Include docket number 21–BSTD–03 in the subject line and email to docket@energy.ca.gov. A paper copy may be sent to: California Energy Commission Docket Unit, MS–4 RE: Docket No. 21–BSTD–03 1516 9th Street, MS–4 Sacramento, CA 95814 POST–HEARING MODIFICATIONS TO THE TEXT OF THE REGULATIONS Pursuant to Government Code

Section 11346.5(a)(18), following the written public comment period and the public hearing, the Energy Commission may adopt the proposed building standards substantially as proposed in this notice or with modifications that are sufficiently related to the original proposed text and notice of proposed changes. If modifications are made, the full text of the proposed modifications, clearly indicated, will be made available to the public for at least 15 days prior to the date on which CBSC adopts, amends, or repeals the regulation(s).

The Energy Commission will accept written comments on the modified building standards during the 15–day period. AUTHORITY AND REFERENCE The Energy Commission proposes to adopt these regulations under the authority granted by Public Resources Code Sections 25213, 25218, 25218.5, 25402, subdivisions (a)–(b), 25402.1, 25402.4, 25402.5, 25402.8, 25910, 25942, and 25943.

The Energy Commission proposes to implement, interpret, or make specific Public Resources Code Sections 25007, 25008, 25310, 25402, subdivisions (a)–(b), 25402.1, 25402.4, 25402.5, 25910, 25942, and 25943, and Health and Safety Code Sections 18390, 18934, and 18935. INFORMATIVE DIGEST

Summary of Existing Laws and Regulations The Warren–Alquist Act (California Pub. Res. Code Sections 25001 et seq.) establishes the Energy Commission as California’s primary energy policy and planning agency. Public Resources Code Sections 25213, 25402, 25402.1, 25402.4, 25402.5, 25402.8, 25910, 25942, and 25943 mandate and/or authorize that the Energy Commission adopt rules and regulations, as necessary, to reduce the inefficient consumption of energy and water in newly constructed buildings and certain additions and alterations to existing buildings.

One of the ways the Energy Commission satisfies this requirement is through the California Green Building Standards Code (California Code of Regulations, Title 24,

Part 11), found in the California Building Standards Code. As a part of the California Building Standards Code, the California Green Building Standards Code follows the same three–year update cycle. Therefore, the Energy Commission proposes to update the voluntary energy efficiency provisions of the California Green Building Standards (Title 24,

Part 11) and provide non–substantive changes to Parts 2, 2.5, 3, 4, and 5. Proposed changes to Parts 2, 2.5, 3, 4, and 5 consist entirely of nonsubstantive cross– references to the Energy Code made at the request of, and coordinated with, proposing agencies. The Energy Commission proposes to adopt these amendments for publication in 2022 with an effective date of January 1, 2023.

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 863 Comparable Federal Statutes or Regulations The Energy Commission has determined that there are no existing comparable federal regulations or statutes. Policy Statement Overview The changes proposed in this rulemaking are updates to the voluntary energy efficiency provisions of the California Green Building Standards. These voluntary guidelines, contained in Title 24,

Part 11 of the California Code of Regulations, go beyond the mandatory standards in

Part 6. In addition to updating the voluntary provisions in Title 24

Part 11, the Energy Commission is also proposing non– substantive changes to Parts 2, 2.5, 3, 4, and 5, which direct readers to the regulations adopted into

Part 6 in a precise and clear manner for the benefit of readers who may not be aware of or familiar with Energy Code requirements, in order to prevent misapplication of associated requirements. Evaluation of Inconsistency or Incompatibility with Existing State Regulations The Energy Commission has conducted an evaluation for other state regulations in this area and has determined that the proposed standards are neither inconsistent nor incompatible with existing state regulations. The Energy Commission is the sole state agency authorized to promulgate building energy efficiency standards.

These changes update the Energy Commission’s longstanding voluntary measures (Part 11) and provide various non–substantive cross– references to the Energy Code (Parts 2, 2.5, 3, 4, and 5). These non–substantive changes were made at the request of, and in coordination with, proposing agencies. OTHER MATTERS PRESCRIBED BY STATUTE APPLICABLE TO THE AGENCY OR TO ANY SPECIFIC REGULATION OR CLASS OF REGULATIONS None. MANDATE ON LOCAL AGENCIES OR SCHOOL DISTRICTS The Energy Commission has determined that the proposed regulatory action would not impose a mandate on local agencies or school districts.

ESTIMATE OF COST OR SA VINGS An estimate, prepared in accordance with instructions adopted by Department of Finance, of cost or savings to any state agency, local agency, or school district. A. Cost or Savings to any state agency: None. B. Cost to any local agency required to be reimbursed under

Part 7 (commencing with

Section 17500) of Division 4: None. C. Cost to any school district required to be reimbursed under

Part 7 (commencing with

Section 17500) of Division 4: None. D. Other nondiscretionary cost or savings imposed on local agencies: None. E. Cost or savings in federal funding to the state: None. Estimate: There are no estimated costs or savings associated with the proposed regulations because compliance with the

Part 11 provisions is voluntary, not required, and because the proposed amendments to Parts 2, 2.5, 3, 4, and 5 consist entirely of non– substantive cross–references to the Energy Code. INITIAL DETERMINATION OF NO SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT ON BUSINESSES The Energy Commission has made an initial determination that the proposed regulations are unlikely to have a significant statewide adverse economic impact on businesses, including the ability of California businesses to compete with businesses in other states.

The proposed regulations take additional steps in meeting California’s energy resource conservation goals through updates to the voluntary energy efficiency provisions of the California Green Building Standards (Title 24,

Part 11). The proposed amendments to the voluntary provisions are unlikely to create cost impacts due to their voluntary nature. Businesses may, but are not required, to comply with voluntary provisions. To the extent that actions taken by local agencies may include, modify, or not include all or part of the voluntary provisions, those actions would be subject to existing laws relating to the evaluation and disclosure of impacts of actions by those local agencies.

While local agencies may use the provisions in these appendices as templates or examples for drafting of local ordinances, such agencies are not required to adhere to the specific language or requirements in these appendices. Consideration of potential future actions taken by local agencies is therefore speculative and is not included in the assessment of the effects of the proposed standards.

The changes proposed to Parts 2, 2.5, 3, 4, and 5 are non–substantive changes to effectively communicate the regulation in a precise and clear manner but do not materially alter any requirement, right, responsibility, condition, prescription, or other regulatory element of any CCR provision, nor do they have any other regulatory effect.

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 864 DECLARATION OF EVIDENCE The basis for the Energy Commission’s findings of no impacts is that the California Green Building Standards are voluntary provisions and the amendments to Parts 2, 2.5, 3, 4, and 5 are entirely non–substantive cross–references to the Energy Code. DOCUMENTS INCORPORATED BY REFERENCE The Energy Commission is not proposing to incorporate by reference any documents. FINDING OF NECESSITY FOR THE PUBLIC’S HEALTH, SAFETY, OR WELFARE The proposed regulations do not impose a new reporting requirement.

COST IMPACT ON REPRESENTATIVE PRIVATE PERSON OR BUSINESS The Energy Commission is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. The proposed regulations take additional steps in meeting California’s energy resource conservation goals through updates to the voluntary energy efficiency provisions of the California Green Building Standards (Title 24,

Part 11). The proposed amendments to the voluntary provisions are unlikely to create cost impacts due to their voluntary nature. Businesses may, but are not required, to comply with voluntary provisions. To the extent that actions taken by local agencies may include, modify, or not include all or part of the voluntary provisions, those actions would be subject to existing laws relating to the evaluation and disclosure of impacts of actions by those local agencies.

While local agencies may use the provisions in these appendices as templates or examples for drafting of local ordinances, such agencies are not required to adhere to the specific language or requirements in these appendices. Consideration of potential future actions taken by local agencies is therefore speculative and is not included in the assessment of the effects of the proposed standards. The changes proposed to Parts 2, 2.5, 3, 4, and 5 are non–substantive changes to effectively communicate and direct readers to the regulations adopted into

Part 6 in a precise and clear manner for the benefit of readers who may not be aware of or familiar with Energy Code requirements, in order to prevent misapplication of associated requirements. The changes do not materially alter any requirement, right, responsibility, condition, prescription, or other regulatory element of any CCR provision, nor do they have any other regulatory effect.

ASSESSMENT OF EFFECT OF REGULATIONS UPON JOBS AND BUSINESS EXPANSION, ELIMINATION OR CREATION The Energy Commission has assessed whether or not and to what extent this proposal will affect the following: The creation or elimination of jobs within the State of California. The proposed regulations take additional steps in meeting California’s energy resource conservation goals through updates to the voluntary energy efficiency provisions of the California Green Building Standards (Title 24,

Part 11). The proposed amendments to the voluntary provisions are unlikely to create cost impacts due to their voluntary nature. Businesses may, but are not required, to comply with voluntary provisions. To the extent that actions taken by local agencies may include, modify, or not include all or part of the voluntary provisions, those actions would be subject to existing laws relating to the evaluation and disclosure of impacts of actions by those local agencies.

While local agencies may use the provisions in these appendices as templates or examples for drafting of local ordinances, such agencies are not required to adhere to the specific language or requirements in these appendices. Consideration of potential future actions taken by local agencies is therefore speculative and is not included in the assessment of the effects of the proposed standards. Therefore, the Energy Commission has determined it is unlikely any jobs will be created or eliminated as a result of the proposed regulation.

The changes proposed to Parts 2, 2.5, 3, 4 and 5 are non–substantive changes to effectively communicate and direct readers to the regulations adopted into

Part 6 in a precise and clear manner for the benefit of readers who may not be aware of or familiar with Energy Code requirements, in order to prevent misapplication of associated requirements. The changes, which consist entirely of cross–references to regulations in

Part 6, do not materially alter any requirement, right, responsibility, condition, prescription, or other regulatory element of any CCR provision, nor do they have any other regulatory effect. Therefore, the Energy Commission has determined it is unlikely any jobs will be created or eliminated as a result of the proposed regulation. The creation of new businesses or the elimination of existing businesses within the State of California. The proposed regulations take additional steps in meeting California’s energy resource conservation

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 865 goals through updates to the voluntary energy efficiency provisions of the California Green Building Standards (Title 24,

Part 11). The proposed amendments to the voluntary provisions are unlikely to create cost impacts due to their voluntary nature. Businesses may, but are not required, to comply with voluntary provisions. To the extent that actions taken by local agencies may include, modify, or not include all or part of the voluntary provisions, those actions would be subject to existing laws relating to the evaluation and disclosure of impacts of actions by those local agencies.

While local agencies may use the provisions in these appendices as templates or examples for drafting of local ordinances, such agencies are not required to adhere to the specific language or requirements in these appendices. Consideration of potential future actions taken by local agencies is therefore speculative and is not included in the assessment of the effects of the proposed standards. Therefore, the Energy Commission has determined it is unlikely businesses will be eliminated or created as a result of the proposed regulation.

The changes proposed to Parts 2, 2.5, 3, 4 and 5 are non–substantive changes to effectively communicate and direct readers to the regulations adopted into

Part 6 in a precise and clear manner for the benefit of readers who may not be aware of or familiar with Energy Code requirements, in order to prevent misapplication of associated requirements. The changes, which consist entirely of cross–references to regulations in

Part 6, do not materially alter any requirement, right, responsibility, condition, prescription, or other regulatory element of any CCR provision, nor do they have any other regulatory effect. Therefore, the Energy Commission has determined it is unlikely any businesses will be eliminated or created as a result of the proposed regulation. The expansion of businesses currently doing business within the State of California. The proposed regulations take additional steps in meeting California’s energy resource conservation goals through updates to the voluntary energy efficiency provisions of the California Green Building Standards (Title 24,

Part 11). The proposed amendments to the voluntary provisions are unlikely to create cost impacts due to their voluntary nature. Businesses may, but are not required, to comply with voluntary provisions. To the extent that actions taken by local agencies may include, modify, or not include all or part of the voluntary provisions, those actions would be subject to existing laws relating to the evaluation and disclosure of impacts of actions by those local agencies.

While local agencies may use the provisions in these appendices as templates or examples for drafting of local ordinances, such agencies are not required to adhere to the specific language or requirements in these appendices. Consideration of potential future actions taken by local agencies is therefore speculative and is not included in the assessment of the effects of the proposed standards. Therefore, the Energy Commission has determined it is unlikely businesses will expand as a result of the proposed regulation.

The changes proposed to Parts 2, 2.5, 3, 4 and 5 are non–substantive changes to effectively communicate and direct readers to the regulations adopted into

Part 6 in a precise and clear manner for the benefit of readers who may not be aware of or familiar with Energy Code requirements, in order to prevent misapplication of associated requirements. The changes, which consist entirely of cross–references to regulations in

Part 6, do not materially alter any requirement, right, responsibility, condition, prescription, or other regulatory element of any CCR provision, nor do they have any other regulatory effect. Therefore, the Energy Commission has determined it is unlikely any businesses will expand as a result of the proposed regulation. The benefits of the regulation to the health and welfare of California residents, worker safety, and the state’s environment. The proposed updates to the voluntary appendices will have no direct effect on health, welfare, worker safety, or the environment.

The updates may encourage consideration and adoption of local ordinances relating to energy efficiency in buildings, and such ordinances, if adopted, may have positive impacts on health, welfare, and the environment known to result from energy efficiency. However, as such impacts are speculative, they are not considered in this rulemaking. The proposed non–substantive amendments to Parts 2, 2.5, 3, 4, and 5 are intended to improve the readability and clarity of the code, and may result in improved compliance with the Energy Code, which may also result in positive impacts on health, welfare, and the environment.

ESTIMATED COST OF COMPLIANCE WITH STANDARDS THAT WOULD IMPACT HOUSING The Energy Commission has made an initial determination that amending the voluntary provisions of

Part 11 and non–substantive amendments to Parts 2, 2.5, 3, 4, and 5 are unlikely to have a significant effect on housing costs. CONSIDERATION OF ALTERNATIVES The CEC has determined that no reasonable alternative considered by the CEC or that has otherwise been identified and brought to the attention

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 866 of the CEC would be more effective in carrying out the purpose for which the action is proposed or would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provisions of law. The CEC invites interested persons to present statements, arguments, or data concerning alternatives to the proposed standards at the scheduled hearing or during the written comment period.

A V AILABILITY OF RULEMAKING DOCUMENTS The CEC maintains a website to facilitate public access to documents prepared and considered as part of this rulemaking proceeding. Documents prepared by the CEC for this rulemaking have been posted at https://www.energy.ca.gov/programs– and–topics/programs/building–energy–efficiency– standards/2022–building–energy–efficiency . The CEC will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at the address below.

As of the date this notice is published in the Notice Register, the rulemaking file consists of this Notice, the Express Terms, the Initial Statement of Reasons (ISOR), the Economic and Fiscal Impact Statement (STD. 399), any documents relied upon, and any documents incorporated by reference. Copies may be obtained by contacting Corrine Fishman at the phone number below or accessed through the CEC website at https:// www.energy.ca.gov/programs–and–topics/programs/ building–energy–efficiency–standards/2022– building–energy–efficiency.

At the conclusion of the rulemaking, persons may obtain a copy of the Final Statement of Reasons (FSOR), once it has been prepared, by visiting the CEC’s website at https://www.energy.ca.gov/programs– and–topics/programs/building–energy–efficiency– standards/2022–building–energy–efficienc y or by contacting the contact person listed below.

CONTACT PERSON FOR PROCEDURAL AND ADMINISTRATIVE QUESTIONS General questions regarding procedural and administrative issues should be addressed to: Corrine Fishman Regulations Manager California Energy Commission Efficiency Division (916) 805–7452 corrine.fishman@energy.ca.gov PROPOSING STATE AGENCY CONTACT PERSON FOR SUBSTANTIVE AND/OR TECHNICAL QUESTIONS ON THE PROPOSED CHANGES TO BUILDING STANDARDS Specific questions regarding the substantive and/ or technical aspects of the proposed changes to the building standards should be addressed to: Primary Contact: Payam Bozorgchami, PE Senior Civil Engineer California Energy Commission Building Standards Office, Efficiency Division (916) 931–9765 payam.bozorgchami@energy.ca.gov Secondary Contact: Peter Strait, Supervisor California Energy Commission Building Standards Office, Efficiency Division (916) 805–7427 peter.strait@energy.ca.gov GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE HABITAT RESTORATION AND ENHANCEMENT ACT CONSISTENCY DETERMINATION NO. 1653–2021–070–001–R1 Project: Klamath Flood Plain Habitat E n h a n c e m e n t P r o j e c t Location: Siskiyou Applicant: Mid Klamath Watershed Council ( M K W

C) Notifier: James Peterson Background Project Location: The Klamath Flood Plain Habitat Enhancement Project (Project) is located along Highway 96, at the confluences of Sandy Bar Creek and Stanshaw Creeks and Klamath River, in the County of Siskiyou. The Project will occur on the Assessor Parcel Number (APN) 026–290–1600–000 which is owned by Konrad Fischer. Both Sandy Bar Creek and Stanshaw Creek are tributaries to Klamath River and support populations of Chinook salmon

CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 27-Z 867 (Oncorhynchus tshawytscha ), coho salmon ( O. kisutch), and steelhead (O. mykiss). Project Description : MKWC (Applicant) proposes to enhance or restore habitat within Sandy Bar and Stanshaw Creeks to provide a net conservation benefit for Chinook salmon, coho salmon, and steelhead. The conservation benefits from the proposed project will create slow water pools to enhance winter and summer rearing habitat. The placement of up to 4 (four) Beaver Dam Analogs (BDAs) will be installed at two sites.

The Stanshaw Creek BDA will be parallel to an off channel pond for approximately 50 feet. The BDA should raise the pond depth and activate an outlet to improve juvenile fish passage. The Sandy Bar BDAs will include two channel spanning and one partial to encourage flow to a better confluence with the Klamath River and recruitment of riparian vegetation. Hand tools will be used including a hydraulic post pounder that will be carried in by foot. Project Size: The total area of ground disturbance associated with the Project is not greater than 0.01 acres and 100 linear feet.

The proposed Project complies with the General 401 Certification for Small Habitat Restoration Projects and associated categorical exemption from the California Environmental Quality Act (Cal. Code Regs., title 14, § 15333). Project Associated Discharge : Discharge of materials into Waters of the State, as defined by Water Code

section 13050 subdivision (e), resulting from the Project include those associated with the following: (1) approximately 200 three–inch diameter Douglas fir poles, (2) 150 cubic feet of native willow cuttings, (3) 12 cubic yards of native gravel, and (4) up to six bales of weed–free straw.

Project Timeframes: Start date: June 1, 2021 Completion date: August 15, 2024 Work window: June 1–August 15 Number of Workdays: Approximately 60 days Water Quality Certification Background : Because the Project’s primary purpose is habitat restoration intended to improve the quality of waters in California and improve fish passage and function to Sandy Bar and Stanshaw Creeks, the North Coast Regional Water Quality Control Board (Regional Water Board) issued a Notice of Applicability (NOA) for Coverage under the State Water Resources Control Board General 401 Water Quality Certification Order for Small Habitat Restoration Projects SB12006GN (Order) Waste Discharge Identification (WDID) No. 1A21061WNSI, Electronic Content Management Identification (ECM PIN) No.

CW–873387 for the Project. The NOA describes the Project and requires the Applicant to comply with terms of the Order. Additionally, the Applicant has provided a supplemental document that sets forth measures to avoid and minimize impacts to fish (Chinook salmon, coho salmon, and steelhead), plants, mammals, and birds. Receiving Water: Sandy Bar and Stanshaw Creeks, Klamath River Filled or Excavated Area: Permanent area impacted: Less than 0.01 acres Temporary area impacted: Less than 0.01 acres Length temporarily impacted: 100 linear feet Length permanently impacted: 100 linear feet Dredge Volume: None.

Discharge Volume: Approximately 200 three–inch diameter Douglas fir poles, (2) 150 cubic feet of native willow cuttings, (3) 12 cubic yards of native gravel, and (4) up to six bales of weed–free straw. Project Location: Within the APN 026–290–1600– 000, the coordinates for the Project are Latitude 41.486211° N, Longitude 123.517921° W for Sandy Bar Creek site and Latitude 41.476875° N, Longitude 123.512083° W for Stanshaw Creek site. Regional Water Board staff determined that the Project may proceed under the Order.

Additionally, Regional Water Board staff determined that the Project, as described in the Notice of Intent (NOI), complies with the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.). On May 18, 2021, the Director of the California Department of Fish and Wildlife (CDFW) received a notice from the Applicant requesting a determination pursuant to Fish and Game Code

Section 1653 that the NOA, NOI, and related species protection measures are consistent with the Habitat Restoration and Enhancement Act (HREA) with respect to the Project. Pursuant to Fish and Game Code

section 1653 subdivision (c), CDFW filed an initial notice with the Office of Administrative Law on May 18, 2021, for publishing in the General Public Interest

section of the California Regulatory Notice Register (Cal. Reg. Notice File Number Z–2021–0518–21) on May 28, 2021. Upon approval, CDFW will file a final notice pursuant to Fish and Game Code

section 1653 subdivision (f). Determination CDFW has determined that the NOA, NOI, and related species protection measures are consistent with HREA as to the Project and meets the conditions set forth in Fish and Game Code

section 1653 for authorizing the Project. Specifically, CDFW finds that:

(1) The Project purpose is voluntary habitat restoration and the Project is not required as