California Regulatory Notice Register — Register 2018, No. 43-Z (January 26, 2018)

Cal. Reg. Notice Reg. 2018, No. 43

California Z Register

REGISTER (Continued on next page) Time- Dated Material EDMUND G. BROWN, JR., GOVERNOR OFFICE OF ADMINISTRATIVE LAW 2018, NO. 43−Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW OCTOBER 26, 2018 PROPOSED ACTION ON REGULATIONS TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Conflict−of−Interest Code — Notice File No. Z2018−1016−02 ......................................... 1875 Amendment Multi−County: Dry Creek Joint Elementary School District State Agency: Department of Rehabilitation Department of Toxic Substances Control TITLE 10.

DEPARTMENT OF INSURANCE California Automobile Assigned Risk Plan (CAARP) for Changes to the Simplified Manual of Rules and Rates — Notice File No. Z2018−1016−08 ........................................ 1876 TITLE 10. DEPARTMENT OF INSURANCE California Automobile Assigned Risk Plan (CAARP) Plan of Operations — Notice File No. Z2018−1016−10 ................................................................. 1878 TITLE 10. DEPARTMENT OF INSURANCE California Automobile Assigned Risk Plan (CAARP) Plan of Operations — Notice File No.

Z2018−1016−12 ................................................................. 1881 TITLE 10. DEPARTMENT OF INSURANCE California Automobile Assigned Risk Plan (CAARP) Simplified Manual of Rules and Rates — Notice File No. Z2018−1016−11 .......................................................... 1884 TITLE 10. DEPARTMENT OF INSURANCE California Automobile Assigned Risk Plan (CAARP) Simplified Manual of Rules and Rates to Increase Private Passenger Automobiles Rate Referenced in California Code of Regulations, Title 10,

Section 2498.5 — Notice File No. Z2018−1016−07 ................................. 1887 TITLE 10. DEPARTMENT OF INSURANCE Low Cost Auto Plan of Operations — Notice File No. Z2018−1016−09 .................................. 1890

(Continued on next page) TITLE 10. DEPARTMENT OF INSURANCE Low Cost Auto Plan of Operations — Notice File No. Z2018−1016−13 .................................. 1893 TITLE 12. DEPARTMENT OF VETERANS AFFAIRS California State Approving Agency for Veterans Education (CSAAVE) — Notice File No. Z2018−1016−05 ................................................................. 1896 TITLE 17. AIR RESOURCES BOARD Reporting of Criteria Air Pollutants and Toxic Air Contaminants — Notice File No. Z2018−1009−03 ................................................................. 1899 TITLE 18.

BOARD OF EQUALIZATION Hearing by County Board — Notice File No. Z2018−1016−04 ......................................... 1906 TITLE MPP. DEPARTMENT OF SOCIAL SERVICES 90−Day Transition Plan, Youth Policy — Notice File No.

Z2018−1015−01 ................................ 1910 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE Habitat Restoration and Enhancement Act Consistency Determination No. 1653−2018−028−001−R1, Mines Creek Beaver Dam Analogue Project, Siskiyou County ................. 1912 FISH AND GAME COMMISSION Northern California Summer Steelhead ........................................................... 1915 OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD Public Meeting and Business Meeting ............................................................. 1915 PROPOSITION 65 OFFICE OF ENVIRONMENTAL HEALTH HAZARD ASSESSMENT Proposition 65, Chemical Listed Effective October 26, 2018 As Known to the State of California to Cause Reproductive Toxicity: Nickel (Soluble Compounds) .......................... 1916 OFFICE OF ENVIRONMENTAL HEALTH HAZARD ASSESSMENT Proposition 65 List Updates, Nickel (Soluble Compounds) ............................................ 1916

OAL REGULATORY DETERMINATION DEPARTMENT OF CORRECTIONS AND REHABILITATION 2018 OAL DETERMINATION NO. 3 (OAL MATTER NO. CTU2018−0402−01) Correctional Offender Management Profiling for Alternative Sanctions Exclusionary Criteria and Process, Memorandum Dated August 19, 2015 ........................................... 1936 DISAPPROV AL DECISIONS DEPARTMENT OF MANAGED HEALTH CARE General Licensure Requirements ................................................................. 1939 STATE WATER RESOURCES CONTROL BOARD Point−of−Use and Point−of−Entry Treatment — Permanent Regulations ................................. 1940

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State ........................................................ 1941 Sections Filed, May 16, 2018 to October 17, 2018 ................................................... 1943 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 REGULA TORY NOTICE REGISTER (USPS 002−931), (ISSN 1041-2654) 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) 888-3600. “Periodicals Postage Paid in Saint Paul, MN.” POSTMASTER: Send address changes to the: CALIFORNIA REGULA TORY NOTICE REGISTER, Barclays, a subsidiary of West, a Thomson Reuters Business, P .O. Box 2006, San Francisco, CA 94126. The Register can also be accessed at http://www.oal.ca.gov .

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CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1875 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 Gov- ernment 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 MULTI−COUNTY: Dry Creek Joint Elementary School District STATE AGENCY: Department of Rehabilitation Department of Toxic Substances Control A written comment period has been established com- mencing on October 26, 2018, and closing on Decem- ber 10, 2018.

Written comments should be directed to the Fair Political Practices Commission, Attention Bri- anne Kilbane, 1102 Q Street, Suite 3000, Sacramento, California 95811. At the end of the 45−day comment period, the pro- posed conflict−of−interest code(

s) will be submitted to the Commission’s Executive Director for her review, unless any interested person or his or her duly autho- rized 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 re- view the above−referenced conflict−of−interest code(s), proposed pursuant to Government Code Sec- tion 87300, which designate, pursuant to Government Code

Section 87302, employees who must disclose cer- tain investments, interests in real property and income. The Executive Director of the Commission, upon her or its own motion or at the request of any interested per- son, 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, argu- ments or comments, in writing to the Executive Direc- tor of the Commission, relative to review of the pro- posed conflict−of−interest code(s). Any written com- ments must be received no later than December 10, 2018. 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 in- creased costs to local government which may result 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 Govern- ment 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 pro- vide 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 Brianne Kilbane, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322−5660.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1876 A V AILABILITY OF PROPOSED CONFLICT−OF−INTEREST CODES Copies of the proposed conflict−of−interest codes may be obtained from the Commission offices or the re- spective agency. Requests for copies from the Commis- sion should be made to Brianne Kilbane, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322−5660. TITLE 10.

DEPARTMENT OF INSURANCE REG−2018−00014 NOTICE OF PROPOSED ACTION AND NOTICE OF PUBLIC HEARING FOR THE CALIFORNIA AUTOMOBILE ASSIGNED RISK PLAN SIMPLIFIED MANUAL OF RULES AND RATES SUBJECT OF HEARING California’s Insurance Commissioner will hold a public hearing to consider the application of the Cali- fornia Automobile Assigned Risk Plan (“CAARP” or “Plan”) for changes to the Simplified Manual of Rules and Rates. AUTHORITY AND REFERENCE TO ADOPT RATES The Commissioner will consider the application pur- suant to the authority vested in him by

Section 11620 of the California Insurance Code. The Commissioner’s decision on the application will implement, interpret, or make specific the requirements of Insurance Code Sec- tion 11624(e). Government Code § 11340.9(

g) applies to this proceeding. HEARING DATE AND LOCATION Notice is hereby given that a public hearing will be held to permit all interested persons the opportunity to present statements or arguments, orally or in writing, with respect to the application at the following date, time, and place: Date: December 19, 2018 Time: 10:00 a.m. Place: Department of Insurance Hearing Room 300 South Spring Street Los Angeles, CA 90013 The hearing will continue on the date noted above until all testimony has been submitted or until 5:00 p.m., whichever is earlier.

ACCESS TO HEARING ROOM The facilities to be used for the public hearing are ac- cessible to persons with mobility impairments. Persons with sight or hearing impairments are requested to noti- fy the contact person (listed below) for this hearing in order to make special arrangements, if necessary. WRITTEN AND/OR ORAL COMMENTS: AGENCY CONTACT PERSON All persons are invited to submit written comments to the Insurance Commissioner on the application prior to the public comment deadline.

Comments should be ad- dressed to the contact person for this proceeding: Contact Person: Michael Riordan, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street, 21st Floor San Francisco, CA 94105 riordanm@insurance.ca.gov Telephone: (415) 538−4226 Facsimile: (415) 904−5490 The backup agency contact person for this proceed- ing will be: Emily Gallagher, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street 21st Floor San Francisco, CA 94105 gallaghere@insurance.ca.gov Telephone: (415) 538−4108 All persons are invited to present oral and/or written testimony at the scheduled public hearing.

DEADLINE FOR WRITTEN COMMENTS All written materials, unless submitted at the hearing, must be received by the Insurance Commissioner at the address listed above no later than 5:00 p.m. on De- cember 19, 2018. Any written materials received after that time will not be considered. Written comments may also be submitted to the contact person by e−mail or fac- simile transmission. Please select only one method to submit written comments.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1877 ADVOCACY OR WITNESS FEES Persons or groups representing the interest of con- sumers may be entitled to reasonable advocacy fees, witness fees, and other reasonable expenses, in accor- dance with the provisions of California Code of Regula- tions, Title 10, Sections 2662.1−2662.6 in connection with their participation in this matter. Interested persons must submit a Petition to Participate, as specified in California Code of Regulations, Title 10,

Section 2661.4. The Petition to Participate must be submitted to the Commissioner at the Office of the Public Advisor at the following address: California Department of Insurance Office of the Public Advisor 300 Spring Street 12th Floor Los Angeles, CA 90013 Telephone: (213) 346−6635 A copy of the Petition to Participate must also be sub- mitted to the contact person for this hearing (listed above). For further information, please contact the Of- fice of the Public Advisor.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW CA 18−07 A common provision in business contracts is a waiver of subrogation; that is, a waiver of the right of one party to bring a claim for damages against another. The California Automobile Assigned Risk Plan (“CAARP”) Manual does not provide a rating proce- dure or an endorsement to be used when a waiver of sub- rogation is required by contract. CAARP proposes allowing a waiver of subrogation if required by contract. CA 18−11 California S.B. 179 amends

Section 12800 of the Ve- hicle Code to include a nonbinary applicant to the gen- der category for applicants requesting a California driver’s license. To adhere to the legislative change CAARP proposes amending the private passenger auto classifications to: update the classification table to include a youthful non- binary classification; introduce a definition of nonbina- ry; and amend the definition of youthful operator to in- clude nonbinary. COMPARABLE FEDERAL LAW There are no comparable existing federal regulations or statutes.

LOCAL MANDATE DETERMINATION The Insurance Commissioner has initially deter- mined that the application will not result in any new program mandates on local agencies or school districts. MANDATES ON LOCAL AGENCIES OR SCHOOL DISTRICTS OR COSTS WHICH MUST BE REIMBURSED PURSUANT TO GOVERNMENT CODE SECTIONS 17500 THROUGH 17630 The Insurance Commissioner has initially deter- mined that the application will not result in any cost or significant savings to any local agency or school district for which

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Section 17500) of Division 4 of the Government Code would require re- imbursement, or in other nondiscretionary costs or sav- ings to local agencies. COST OR SA VINGS TO ANY STATE AGENCY; FEDERAL FUNDING The Commissioner has determined that the applica- tion will result in no cost or savings to any state agency and no cost or savings in federal funding to the state.

SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT ON BUSINESSES AND THE ABILITY OF CALIFORNIA BUSINESSES TO COMPETE The Commissioner has initially determined that the proposal will not have a significant statewide adverse economic impact directly affecting businesses, includ- ing the ability of California businesses to compete with businesses in other states. This proposal will have no ef- fect on the creation or elimination of jobs in California, the creation of new businesses, the elimination of exist- ing businesses in California, or the expansion of busi- nesses in California.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1878 SPECIFIC TECHNOLOGIES OR EQUIPMENT The application would not mandate the use of specif- ic technologies or equipment. ALTERNATIVES The Insurance Commissioner must determine that no reasonable alternative considered by the agency, or that has otherwise been identified and brought to the atten- tion of the agency, 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.

PLAIN ENGLISH The application describing the proposal is in plain English. However, the application itself is based on technical actuarial principles. TEXT AND INITIAL STATEMENT OF REASONS The Department has prepared an Initial Statement of Reasons addressing the proposed rate application in ad- dition to the Informative Digest included in this notice. The Initial Statement of Reasons, Notice of Proposed Action and Regulation Text are available for inspection or copying, and will be provided at no charge upon re- quest to the contact person listed above.

Further details on CAARP’s proposal are on file with the Commission- er and available for review as set forth below. FINAL STATEMENT OF REASONS A Final Statement of Reasons will be prepared at the conclusion of this proceeding. Upon written or e−mail request to the contact person listed above, the Final Statement of Reasons will be made available for inspec- tion and copying once it has been prepared. A copy of the Final Statement of Reasons will also be posted on the Department’s website.

ACCESS TO RULEMAKING FILE Any interested person may inspect a copy of or direct questions about CAARP ’s application, the statement of reasons, and any supplemental information contained in the rulemaking file by contacting the contact person listed above. By prior appointment, the rulemaking file is available for inspection at 45 Fremont Street, 21 st Floor, San Francisco, California 94105, between the hours of 9:00 a.m. and 4:30 p.m. Monday through Friday. AUTOMATIC MAILING A copy of this Notice, including the Informative Di- gest is being sent to all persons on the Insurance Com- missioner’s mailing list.

A V AILABILITY OF DOCUMENTS ON THE INTERNET The Initial Statement of Reasons, proposed text, and this Notice of Proposed Action will be published online and may be accessed through the Department’s website at www.insurance.ca.gov. A V AILABILITY OF MODIFIED TEXT OF REGULATIONS If the Department amends the application with changes that are sufficiently related to the original ap- plication, the Department will make the full text of the amended rates, with the changes clearly indicated, available to the public for at least 15 days before the date the Department adopts the amended rates. TITLE 10.

DEPARTMENT OF INSURANCE REG−2018−00017 NOTICE OF PROPOSED ACTION AND NOTICE OF PUBLIC HEARING REGARDING THE CALIFORNIA AUTOMOBILE ASSIGNED RISK PLAN PLAN OF OPERATIONS SUBJECT OF HEARING California Insurance Commissioner Dave Jones will hold a public hearing to address the proposed amend- ments to the California Automobile Assigned Risk Plan (CAARP) Plan of Operations. AUTHORITY TO ADOPT RULES AND PROCEDURES AND REFERENCE The Commissioner will consider the proposed changes pursuant to the authority vested in him by Sec- tion 11620 of the California Insurance Code.

The Com- missioner’s decision on the proposed changes will im- plement, interpret, or make specific the requirements of

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1879 Insurance Code

Section 11624(e). Insurance Code Sec- tion 11620(

c) applies to this proceeding. HEARING DATE AND LOCATION Notice is hereby given that a public hearing will be held to permit all interested persons the opportunity to present statements or arguments, orally or in writing, with respect to the application at the following date, time, and place: Date: December 19, 2018 Time: 10:00 a.m. Place: Department of Insurance Hearing Room 300 South Spring Street Los Angeles, CA 90013 The hearing will continue on the date noted above until all testimony has been submitted or until 5:00 p.m., whichever is earlier.

ADVOCACY OR WITNESS FEES Persons or groups representing the interest of con- sumers may be entitled to reasonable advocacy fees, witness fees, and other reasonable expenses, in accor- dance with the provisions of California Code of Regula- tions, Title 10, Sections 2662.1−2662.6 in connection with their participation in this matter. Interested persons must submit a Petition to Participate, as specified in California Code of Regulations, Title 10,

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW CA 18−06 Currently, the Plan provides companies with market shares greater than 5% of the California private passen- ger business the option to buy out into the Limited As- signment Distribution (“LAD”). Annually, each com- pany must request an exception from the Advisory Committee to buy out and enter into an LAD agree- ment. However, companies requesting exceptions are left with uncertainty from year to year, making it diffi- cult for them to make long−term business plans.

CAARP proposes to give all companies with private passenger quotas the option to buy out into an LAD when the Plan private passenger application volume is 25,000 vehicles or less.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1880 CA 18−09 The Plan of Operation does not state the hours of op- eration during which an assigned company or CAIP ser- vicing carrier must provide customer service. CAARP proposes new insurer and CAIP servicing carrier performance standards for hours of operation to provide customer service. CA 18−10 Current Plan rules must be updated to provide guid- ance for insurer reporting of voluntary base data for low speed vehicles written in the voluntary market.

The California Automobile Assigned Risk Plan pro- poses expansion of the definition of voluntary miscella- neous nonfleet personal vehicles to include low speed vehicles for data reporting purposes. Calculated car years for low speed vehicles, as well as the other classes of miscellaneous nonfleet personal ve- hicles and named nonowner applicants, will be exclud- ed from the calculated car years used for private passen- ger determination.

Without such clarification, low speed vehicles written in the voluntary market would be reported to AIPSO as private passenger nonfleet car years, which would adversely impact future rate filings. COMPARABLE FEDERAL LAW There are no comparable existing federal regulations or statutes. LOCAL MANDATE DETERMINATION The Insurance Commissioner has initially deter- mined that the application will not result in any new program mandates on local agencies or school districts.

MANDATES ON LOCAL AGENCIES OR SCHOOL DISTRICTS OR COSTS WHICH MUST BE REIMBURSED PURSUANT TO GOVERNMENT CODE SECTIONS 17500 THROUGH 17630 The Insurance Commissioner has initially deter- mined that the application will not result in any cost or significant savings to any local agency or school district for which

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COST IMPACTS ON PRIV ATE PERSONS OR ENTITIES The Insurance Commissioner has initially deter- mined that the proposal will not affect private person or entities. IMPACT ON HOUSING COSTS The Insurance Commissioner has initially deter- mined that the application will not affect housing costs. IMPACT ON SMALL BUSINESS The proposed rate changes could affect small businesses. SPECIFIC TECHNOLOGIES OR EQUIPMENT The application would not mandate the use of specif- ic technologies or equipment.

ALTERNATIVES The Insurance Commissioner must determine that no reasonable alternative considered by the agency, or that has otherwise been identified and brought to the atten- tion of the agency, 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.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1881 PLAIN ENGLISH The application describing the proposal is in plain English. However, the application itself is based on technical actuarial principles. TEXT AND INITIAL STATEMENT OF REASONS The Department has prepared an Initial Statement of Reasons addressing the proposed rate application in ad- dition to the Informative Digest included in this notice.

The Initial Statement of Reasons, Notice of Proposed Action and Regulation Text are available for inspection or copying, and will be provided at no charge upon re- quest to the contact person listed above. Further details on CAARP’s proposal are on file with the Commission- er and available for review as set forth below. FINAL STATEMENT OF REASONS A Final Statement of Reasons will be prepared at the conclusion of this proceeding. Upon written or e−mail request to the contact person listed above, the Final Statement of Reasons will be made available for inspec- tion and copying once it has been prepared.

A copy of the Final Statement of Reasons will also be posted on the Department’s website. ACCESS TO RULEMAKING FILE Any interested person may inspect a copy of or direct questions about CAARP’s application, the statement of reasons, and any supplemental information contained in the rulemaking file by contacting the contact person listed above. By prior appointment, the rulemaking file is available for inspection at 45 Fremont Street, 21 st Floor, San Francisco, California 94105, between the hours of 9:00 a.m. and 4:30 p.m. Monday through Friday.

AUTOMATIC MAILING A copy of this Notice, including the Informative Di- gest is being sent to all persons on the Insurance Com- missioner’s mailing list. A V AILABILITY OF DOCUMENTS ON THE INTERNET The Initial Statement of Reasons, proposed text, and this Notice of Proposed Action will be published online and may be accessed through the Department’s website at www.insurance.ca.gov.

A V AILABILITY OF MODIFIED TEXT OF REGULATIONS If the Department amends the application with changes that are sufficiently related to the original ap- plication, the Department will make the full text of the amended rates, with the changes clearly indicated, available to the public for at least 15 days before the date the Department adopts the amended rates. TITLE 10.

DEPARTMENT OF INSURANCE REG−2018−00021 NOTICE OF PROPOSED ACTION AND NOTICE OF PUBLIC HEARING REGARDING THE CALIFORNIA AUTOMOBILE ASSIGNED RISK PLAN PLAN OF OPERATIONS SUBJECT OF HEARING California Insurance Commissioner Dave Jones will hold a public hearing to address the proposed amend- ments to the California Automobile Assigned Risk Plan (CAARP) Plan of Operations. AUTHORITY TO ADOPT RULES AND PROCEDURES AND REFERENCE The Commissioner will consider the proposed changes pursuant to the authority vested in him by Sec- tion 11620 of the California Insurance Code.

The Com- missioner’s decision on the proposed changes will im- plement, interpret, or make specific the requirements of Insurance Code

Section 11624(e). Insurance Code Sec- tion 11620(

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1882 ACCESS TO HEARING ROOM The facilities to be used for the public hearing are ac- cessible to persons with mobility impairments. Persons with sight or hearing impairments are requested to noti- fy the contact person (listed below) for this hearing in order to make special arrangements, if necessary. WRITTEN AND/OR ORAL COMMENTS: AGENCY CONTACT PERSON All persons are invited to submit written comments to the Insurance Commissioner on the application prior to the public comment deadline.

Comments should be ad- dressed to the contact person for this proceeding.

Contact Person: Michael Riordan, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street, 21st Floor San Francisco, CA 94105 riordanm@insurance.ca.gov Telephone: (415) 538−4226 Facsimile: (415) 904−5490 The backup agency contact person for this proceed- ing will be: Emily Gallagher, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street 21st Floor San Francisco, CA 94105 gallaghere@insurance.ca.gov Telephone: (415) 538−4108 All persons are invited to present oral and/or written testimony at the scheduled public hearing.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW CA 18−13 When a private passenger application is incomplete or does not meet Program requirements, the Plan noti- fies the applicant and producer of any violations and as- signs the application. Plan procedures for the handling and assignment of applications with violations are un- clear and should be clarified. CAARP proposes enhancements to Plan procedures that clarify how applications with violations are han- dled by the Plan. COMPARABLE FEDERAL LAW There are no comparable existing federal regulations or statutes.

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Section 17500) of

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1883 Division 4 of the Government Code would require re- imbursement, or in other nondiscretionary costs or sav- ings to local agencies. COST OR SA VINGS TO ANY STATE AGENCY; FEDERAL FUNDING The Commissioner has determined that the applica- tion will result in no cost or savings to any state agency and no cost or savings in federal funding to the state.

TEXT AND INITIAL STATEMENT OF REASONS The Department has prepared an Initial Statement of Reasons addressing the proposed rate application in ad- dition to the Informative Digest included in this notice. The Initial Statement of Reasons, Notice of Proposed Action and Regulation Text are available for inspection or copying, and will be provided at no charge upon re- quest to the contact person listed above. Further details on CAARP’s proposal are on file with the Commission- er and available for review as set forth below.

FINAL STATEMENT OF REASONS A Final Statement of Reasons will be prepared at the conclusion of this proceeding. Upon written or e−mail request to the contact person listed above, the Final Statement of Reasons will be made available for inspec- tion and copying once it has been prepared. A copy of the Final Statement of Reasons will also be posted on the Department’s website.

ACCESS TO RULEMAKING FILE Any interested person may inspect a copy of or direct questions about CAARP’s application, the statement of reasons, and any supplemental information contained in the rulemaking file by contacting the contact person listed above. By prior appointment, the rulemaking file is available for inspection at 45 Fremont Street, 21 st Floor, San Francisco, California 94105, between the hours of 9:00 a.m. and 4:30 p.m. Monday through Friday. AUTOMATIC MAILING A copy of this Notice, including the Informative Di- gest is being sent to all persons on the Insurance Com- missioner’s mailing list.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1884 A V AILABILITY OF DOCUMENTS ON THE INTERNET The Initial Statement of Reasons, proposed text, and this Notice of Proposed Action will be published online and may be accessed through the Department’s website at www.insurance.ca.gov.

DEPARTMENT OF INSURANCE NOTICE OF PROPOSED ACTION AND NOTICE OF PUBLIC HEARING REGARDING COMMERCIAL AUTOMOBILE INSURANCE PROCEDURE RATES FOR THE CALIFORNIA AUTOMOBILE ASSIGNED RISK PLAN REG−2018−00019 SUBJECT OF HEARING California’s Insurance Commissioner will hold a public hearing to consider the application of the Cali- fornia Automobile Assigned Risk Plan (“CAARP” or “Plan”) for approval of increased rates for the five com- mercial sub−lines for the Commercial Automobile In- surance Procedure (“CAIP”).

AUTHORITY AND REFERENCE TO ADOPT RATES The Commissioner will consider the application pur- suant to the authority vested in him by

Comments should be ad- dressed to the contact person for this proceeding: Michael Riordan, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street, 21st Floor San Francisco, CA 94105 riordanm@insurance.ca.gov Telephone: (415) 538−4226 Facsimile: (415) 904−5490 The backup agency contact person for this proceed- ing will be: Emily Gallagher, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street 21st Floor San Francisco, CA 94105 gallaghere@insurance.ca.gov Telephone: (415) 538−4108 All persons are invited to present oral and/or written testimony at the scheduled public hearing.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1885 DEADLINE FOR WRITTEN COMMENTS All written materials, unless submitted at the hearing, must be received by the Insurance Commissioner at the address listed above no later than 5:00 p.m. on De- cember 19, 2018. Any written materials received after that time will not be considered. Written comments may also be submitted to the contact person by e−mail or fac- simile transmission. Please select only one method to submit written comments.

Section 11624, the Commissioner establishes rates to be charged to those obtaining commercial automobile cov- erage through CAIP.

Section 11624 provides: “Premi- um charges for the plan shall not be excessive, inade- quate, nor unfairly discriminatory, and shall be actuari- ally sound so as to result in no subsidy of the plan.” Title 10, California Code of Regulations, § 2498.5 refer- ences the commercial automobile rate manual, which is approved by the Commissioner but not printed in full in the California Code of Regulations. The Commissioner is holding the hearing referenced above to accept comments on CAARP’s recent rate ap- plication.

CAARP has proposed rate changes for five CAIP sub−lines, amounting to an overall average 24.1 percent rate increase. The five sub−lines are: Trucks, Tractor and Trailers; Taxis, Limousines and Van Pools; All Buses Combined; Zone Rated Risks and Employers Non−Ownership Liability. Further details appear in the rate application on file with the Commissioner and available for review as set forth below. COMPARABLE FEDERAL LAW There are no comparable existing federal regulations or statutes.

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SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT ON BUSINESSES AND THE ABILITY OF CALIFORNIA BUSINESSES TO COMPETE CAARP is proposing overall rate increases for Trucks, Tractor and Trailers; Taxis, Limousines and Van Pools; All Buses Combined; Zone Rated Risks and Employers Non−Ownership Liability. Although the number of commercial auto applications placed by CAARP is small, the proposed rate changes could have a statewide economic impact directly affecting busi-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1886 nesses, including the ability of California businesses to compete with businesses in other states. The proposed rate changes could also impact competition or competi- tiveness. The proposal could also affect the creation or elimination of jobs in California, the creation of new businesses, the elimination of existing businesses, or the expansion of businesses in California. However, California Insurance Code

section 11624(

e) requires that premium charges for the plan shall be actuarially sound so as to result in no subsidy of the plan by the vol- untary market. Therefore, if and to the extent that CAARP is able to demonstrate that certain existing rates are no longer actuarially sound and that rate in- creases are warranted, the Commissioner is required to approve increased rates. Of course, the Commissioner also recognizes that

section 11624(

e) requires that rates not be excessive, and the Commissioner will not ap- prove an increase that results in excessive rates. COST IMPACTS ON PRIV ATE PERSONS OR ENTITIES The Insurance Commissioner has determined that there could be potential cost impacts on businesses di- rectly affected by the proposed rate increases. Although the rate application involves commercial automobile insurance rates, to the extent a rate increase impacts business, it could also impact private persons employed by those businesses.

The rate increase could also impact private persons wishing to purchase goods or services from businesses if the price of goods or services is in- creased to cover the increased cost of insurance coverage. IMPACT ON HOUSING COSTS The Insurance Commissioner has initially deter- mined that the application will not affect housing costs. IMPACT ON SMALL BUSINESS The proposed rate changes could affect small businesses. SPECIFIC TECHNOLOGIES OR EQUIPMENT The application would not mandate the use of specif- ic technologies or equipment.

TEXT AND INITIAL STATEMENT OF REASONS The Department has prepared an Initial Statement of Reasons addressing the proposed rate application in ad- dition to the Informative Digest included in this notice. The Initial Statement of Reasons, this Notice of Pro- posed Action and Text of Regulations are available for inspection or copying, and will be provided at no charge upon request to the contact person listed above. Further details on CAARP’s proposal are on file with the Commissioner and available for review as set forth below.

ACCESS TO RULEMAKING FILE Any interested person may inspect a copy of or direct questions about CAARP’s application, the statement of reasons, and any supplemental information contained in the rulemaking file by contacting the contact person listed above. By prior appointment, the rulemaking file is available for inspection at 45 Fremont Street, 21 st Floor, San Francisco, California 94105, between the hours of 9:00 a.m. and 4:30 p.m. Monday through Friday. AUTOMATIC MAILING A copy of this Notice, including the Informative Di- gest is being sent to all persons on the Insurance Com- missioner’s mailing list.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1887 A V AILABILITY OF DOCUMENTS ON THE INTERNET The Initial Statement of Reasons, proposed text, and this Notice of Proposed Action will be published online and may be accessed through the Department’s website at www.insurance.ca.gov.

DEPARTMENT OF INSURANCE REG−2018−00011 NOTICE OF PROPOSED ACTION AND NOTICE OF PUBLIC HEARING FOR THE CALIFORNIA AUTOMOBILE ASSIGNED RISK PLAN SIMPLIFIED MANUAL OF RULES AND RATES SUBJECT OF HEARING The California Insurance Commissioner will hold a public hearing to consider the application of the Cali- fornia Automobile Assigned Risk Plan (“CAARP”) to increase private passenger automobile rates referenced in California Code of Regulations, Title 10,

Section 2498.5. AUTHORITY AND REFERENCE TO ADOPT RATES The Commissioner will consider the application pur- suant to the authority vested in him by

Section 11620 of the California Insurance Code. The Commissioner’s decision in the application will implement, interpret, or make specific the requirements of Insurance Code Sec- tion 11624(e). Government Code §11340.9(

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1888 DEADLINE FOR WRITTEN COMMENTS All written materials, unless submitted at the hearing, must be received by the Insurance Commissioner at the address listed above no later than 5:00 p.m. on De- cember 19, 2018. Any written materials received after that time will not be considered. Written comments may also be submitted to the contact person by e−mail or fac- simile transmission. Please select only one method to submit written comments.

Section 2661.4. The Petition to Participate must be submitted to the Commissioner at the Office of the Public Advisor at the following address: California Department of Insurance Office of the Public Advisor 300 Spring Street 12th Floor Los Angeles, CA 90013 Telephone: (213) 346 6635 A copy of the Petition to Participate must also be sub- mitted to the contact person for this hearing (listed above). For further information, please contact the Of- fice of the Public Advisor. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW CA 18−08 Pursuant to California Insurance Code

Section 11624, the Commissioner establishes rates to be charged to those obtaining private passenger automo- bile coverage through policies assigned through the California Automobile Assigned Risk Plan (“CAARP”).

Section 11624 provides: “Premium charges for the plan shall not be excessive, inadequate, nor unfairly discriminatory, and shall be actuarially sound so as to result in no subsidy of the plan.” Title 10, California Code of Regulations, § 2498.5 references the private passenger automobile rate manual, which is approved by the Commissioner but not printed in full in the California Code of Regulations. The Commissioner is holding the hearing referenced above to accept comments on CAARP’s recent rate ap- plication. CAARP has proposed rate change a 12.5 per- cent rate increase.

Further details appear in the rate application on file with the Commissioner and available for review as set forth below. COMPARABLE FEDERAL LAW There are no comparable existing federal regulations or statutes. LOCAL MANDATE DETERMINATION The Insurance Commissioner has initially deter- mined that the application will not result in any new program mandates on local agencies or school districts.

Part 7 (commencing with

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1889 COST IMPACT ON PRIV ATE PERSONS OR ENTITIES The Insurance Commissioner has initially deter- mined that the proposal will not affect private person or entities. IMPACT ON HOUSING COSTS The Insurance Commissioner has initially deter- mined that the application will not affect housing costs. IMPACT ON SMALL BUSINESS The proposed rate changes could affect small businesses. SPECIFIC TECHNOLOGIES OR EQUIPMENT The application would not mandate the use of specif- ic technologies or equipment.

ACCESS TO RULEMAKING FILE Any interested person may inspect a copy of or direct questions about CAARP’s application, the statement of reasons, and any supplemental information contained in the rulemaking file by contacting the contact person listed above. By prior appointment, the rulemaking file is available for inspection at 45 Fremont Street, 21 st Floor, San Francisco, California 94105, between the hours of 9:00 a.m. and 4:30 p.m. Monday through Friday. AUTOMATIC MAILING A copy of this Notice, including the Informative Di- gest is being sent to all persons on the Insurance Com- missioner’s mailing list.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1890 TITLE 10. DEPARTMENT OF INSURANCE REG−2018−00016 NOTICE OF PROPOSED ACTION AND NOTICE OF PUBLIC HEARING REVISIONS TO CALIFORNIA LOW COST AUTOMOBILE PLAN OF OPERATIONS SUBJECT OF HEARING California Insurance Commissioner Dave Jones will hold a public hearing to address the proposed amend- ments to the California Low Cost Automobile (“CLCA”) Plan of Operations.

AUTHORITY TO ADOPT RULES AND PROCEDURES AND REFERENCE The Commissioner will consider the proposed changes pursuant to the authority vested in him by Sec- tion 11620 of the California Insurance Code. The Com- missioner’s decision on the proposed changes will im- plement, interpret, or make specific the requirements of Insurance Code

Section 11624(e). Insurance Code Sec- tion 11620(

c) applies to this proceeding. HEARING DATE AND LOCATION Notice is hereby given that a public hearing will be held to permit all interested persons the opportunity to present statements or arguments, orally or in writing, with respect to the proposed changes at the following date, time, and place: Date: December 19,2018 Time: 10:00 a.m. Place: Department of Insurance Hearing Room 300 South Spring Street Los Angeles, CA 90013 The hearing will continue on the date noted above until all testimony has been submitted or until 5:00 p.m., whichever is earlier.

DEADLINE FOR WRITTEN COMMENTS All written materials, unless submitted, at the hear- ing, must be received by the Insurance Commissioner at the address listed above no later than 5:00 p.m. on December 19, 2018. Any written materials received af- ter that time will not be considered. Written comments may also be submitted to the contact person by e−mail or facsimile transmission. Please select only one method to submit written comments.

ADVOCACY OR WITNESS FEES Persons or groups representing the interest of con- sumers may be entitled to reasonable advocacy fees, witness fees, and other reasonable expenses, in accor- dance with the provisions of California Code of Regula- tions, Title 10, Sections 2662.1−2662.6 in connection with their participation in this matter. Interested persons must submit a Petition to Participate , as specified in California Code of Regulations, Title 10 ,

Section 2661A. The Petition to Participate must be submitted to the Commissioner at the Office of the Public Advisor at the following address:

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1891 California Department of Insurance Office of the Public Advisor 300 Spring Street 12th Floor Los Angeles, CA 90013 Telephone: (213) 346−6635 A copy of the Petition to Participate must also be sub- mitted to the contact person for this hearing (listed above). For further information, please contact the Of- fice of the Public Advisor. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW LC18−04 Current Plan rules must be updated to provide guid- ance for insurer reporting of voluntary base data for low speed vehicles written in the voluntary market.

Without such clarification, low speed vehicles written in the voluntary market would be re- ported to AIPSO as private passenger nonfleet car years, which would adversely impact future rate filings. LC 18−05 Currently, the Plan provides companies with market shares greater than 5% of the California private passen- ger business the option to buy out into the Limited As- signment Distribution (“LAD”). Annually, each com- pany must request an exception from the Advisory Committee to buy out and enter into an LAD agree- ment.

However, companies requesting exceptions are left with uncertainty from year to year, making it diffi- cult for them to make long−term business plans. CAARP proposes to give all companies with low cost quotas the option to buy out into an LAD when the Plan Low Cost application volume is 25,000 vehicles or less. LC 18−07 CA Insurance Code §11629.78(

b) prohibits an in- sured under the Low Cost Program from purchasing or maintaining any automobile liability insurance cover- age other than a Low Cost Auto Policy for any addition- al vehicles in the insured’s household. As a result, many applicants are not eligible for a Low Cost Auto Policy if any other member of their household has their own au- tomobile liability insurance policy.

CAARP proposes expanding eligibility requirements to include (1) an applicant who resides in a household where their spouse or another member of the household has their own automobile liability insurance policy and (2) an applicant who purchases or maintains an automo- bile liability insurance policy other than a Low Cost Au- to Policy covering an automobile or motor vehicle that cannot be covered by the Low Cost Program. LC 18−08 The Policy Change Request — Certification Form has been reformatted to consolidate information and signature fields onto a single page.

CAARP proposes expanding the list of applications, forms, and manuals available for Plan to include the new California Low Cost Automobile Insurance Pro- gram Eligibility Requirements Form. Expanding sup- porting documentation requirements for address changes and replacement vehicles to include the in- sured’s physical address if different from their mailing address. And updating the Policy Change Request — Certification Form to streamline completion of the form. LC 18−09 The Plan of Operation does not state the hours of op- eration during which an assigned company must pro- vide customer service.

CAARP proposes new insurer performance stan- dards for hours of operation to provide customer service. LC 18−10 California S.B. 179 amends

Section 12800 of the Ve- hicle Code to include a nonbinary applicant to the gen- der category for applicants requesting a California driver’s license. To adhere to the legislative change CAARP proposes amending the CLCA classifications to: update the clas- sification table to include a youthful nonbinary classifi- cation; introduced definition of nonbinary; and amend the definition of youthful operator to include nonbinary. COMPARABLE FEDERAL LAW There are no comparable existing federal regulations or statutes.

LOCAL MANDATE DETERMINATION The Insurance Commissioner has initially deter- mined that the proposal will not result in any new pro- gram mandates on local agencies or school districts.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1892 MANDATES ON LOCAL AGENCIES OR SCHOOL DISTRICTS OR COSTS WHICH MUST BE REIMBURSED PURSUANT TO GOVERNMENT CODE SECTIONS 17500 THROUGH 17630 The Insurance Commissioner has initially deter- mined that the proposal will not result in any cost or sig- nificant savings to any local agency or school district for which

Part 7 (commencing with

Section 17500) of Division 4 of the Government Code would require re- imbursement, or in other nondiscretionary costs or sav- ings to local agencies. COST OR SA VINGS TO ANY STATE AGENCY; FEDERAL FUNDING The Commissioner has determined that the proposed regulation will result in no cost or savings to any state agency and no cost or savings in federal funding to the state.

COST IMPACT ON PRIV ATE PERSONS OR ENTITIES The Insurance Commissioner has initially deter- mined that the proposal will not affect private persons or entities. IMPACT ON HOUSING COSTS The Insurance Commissioner has initially deter- mined that the proposal will not affect housing costs. IMPACT ON SMALL BUSINESS The Insurance Commissioner has initially deter- mined that the proposal will not affect small business. SPECIFIC TECHNOLOGIES OR EQUIPMENT The Insurance Commissioner has initially deter- mined that specific technologies or equipment will be needed.

ALTERNATIVES The Insurance Commissioner must determine that no reasonable alternative considered by the agency, or that has otherwise been identified and brought to the atten- tion of the agency, would be more effective in carrying out the purpose for which the action is proposed or would be as. effective as and less burdensome to affect- ed private persons than the proposed action. PLAIN ENGLISH The proposed changes describing CAARP’s propos- als are in plain English.

TEXT AND INITIAL STATEMENT OF REASONS The Department has prepared an Initial Statement of Reasons addressing the proposed amendments in addi- tion to the Informative Digest included in this notice. The Initial Statement of Reasons, Notice of Proposed Action and Text of Regulations are available for inspec- tion or copying, and will be provided at no charge upon request to the contact person listed above. Further de- tails on CAARP’s proposal are on file with the Commis- sioner and available for review as set forth below.

ACCESS TO RULEMAKING FILE Any interested person may inspect a copy of or direct questions about CAARP’s proposed amendments, the statement of reasons, and any supplemental informa- tion contained in the rulemaking file by contacting the contact person listed above. By prior appointment, the. rulemaking file is available for inspection at 45 Fre- mont Street, 21 st Floor, San Francisco, California 94105, between the hours of 9:00 a.m. and 4:30 p.m. Monday through Friday.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1893 AUTOMATIC MAILING A copy of this Notice, including the Informative Di- gest is being sent to all persons on the Insurance Com- missioner’s mailing list. A V AILABILITY OF DOCUMENTS ON THE INTERNET The Initial Statement of Reasons, proposed text, and this Notice of Proposed Action will be published online and may be accessed through the Department’s website at www.insurance.ca.gov.

A V AILABILITY OF MODIFIED TEXT OF REGULATIONS If the Department amends the proposed regulations with changes that are sufficiently related to the original text, the Department will make the full text of the amended regulations, with the changes clearly indicat- ed, available to the public for at least 15 days before the date the Department adopts the mended regulations. TITLE 10.

DEPARTMENT OF INSURANCE REG−2018−00022 NOTICE OF PROPOSED ACTION AND NOTICE OF PUBLIC HEARING REVISIONS TO CALIFORNIA LOW COST AUTOMOBILE PLAN OF OPERATIONS SUBJECT OF HEARING California Insurance Commissioner Dave Jones will hold a public hearing to address the proposed amend- ments to the California Low Cost Automobile (“CLCA”) Plan of Operations. AUTHORITY TO ADOPT RULES AND PROCEDURES AND REFERENCE The Commissioner will consider the proposed changes pursuant to the authority vested in him by Sec- tion 11620 of the California Insurance Code.

The Com- missioner’s decision on the proposed changes will im- plement, interpret, or make specific the requirements of Insurance Code

Section 11624(e). Insurance Code Sec- tion 11620(

c) applies to this proceeding. HEARING DATE AND LOCATION Notice is hereby given that a public hearing will be held to permit all interested persons the opportunity to present statements or arguments, orally or in writing, with respect to the proposed changes at the following date, time, and place: Date: December 19, 2018 Time: 10:00 a.m. Place: Department of Insurance Hearing Room 300 South Spring Street Los Angeles, CA 90013 The hearing will continue on the date noted above until all testimony has been submitted or until 5:00 p.m., whichever is earlier.

Comments should be ad- dressed to the contact person for this proceeding: Contact Person: Michael Riordan, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street, 21st Floor San Francisco, CA 94105 riordanm@insurance.ca.gov Telephone: (415) 538−4226 Facsimile: (415) 904−5490 The backup agency contact person for this proceed- ing will be: Emily Gallagher, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street 21st Floor San Francisco, CA 94195 gallaghere@insurance.ca.gov Telephone: (415) 538−4108 All persons are invited to present oral and/or written testimony at the scheduled public hearing.

DEADLINE FOR WRITTEN COMMENTS All written materials, unless submitted at the hearing, must be received by the Insurance Commissioner at the

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1894 address listed above no later than 5:00 p.m. on De- cember 19, 2018. Any written materials received after that time will not be considered. Written comments may also be submit- ted to the contact person by e−mail or facsimile trans- mission. Please select only one method to submit writ- ten comments.

Section 2661.4. The Petition to Participate must be submitted to the Commissioner at the Office of the Public Advisor at the following address: California Department of Insurance Office of the Public Advisor 300 Spring Street 12th Floor Los Angeles, CA 90013 Telephone: (213) 346 6635 A copy of the Petition to Participate must also be sub- mitted to the contact person for this hearing (listed above). For further information, please contact the Of- fice of the Public Advisor.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW LC 18−11 The reinstatement procedure for Low Cost Auto Poli- cies provides options for the submission of outstanding payments and renewal deposits. The methods for pay- ment submission include hand delivery to the insurer and electronic submission by credit or debit card. How- ever, effective date determination procedures for both do not provide immediate coverage.

CAARP proposes introducing a new procedure that provides immediate coverage when payments and re- newal deposits are mailed or delivered to the producer or are physically accepted by the producer from the in- sured in their office. This is an expansion of the reinstatement procedures applicable to outstanding payments and renewal de- posits which are transmitted electronically by credit or debit card or are hand delivered to the insurer.

LC 18−12 When a Low Cost application is incomplete or does not meet Program requirements, the Plan notifies the applicant and producer of any violations and assigns the application. Plan procedures for the handling and as- signment of applications with violations are unclear and should be clarified. CAARP proposes enhancements to Plan procedures that clarify how applications with violations are han- dled by the Plan. COMPARABLE FEDERAL LAW There are no comparable existing federal regulations or statutes.

LOCAL MANDATE DETERMINATION The Insurance Commissioner has initially deter- mined that the proposal will not result in any new pro- gram mandates on local agencies or school districts. MANDATES ON LOCAL AGENCIES OR SCHOOL DISTRICTS OR COSTS WHICH MUST BE REIMBURSED PURSUANT TO GOVERNMENT CODE SECTIONS 17500 THROUGH 17630 The Insurance Commissioner has initially deter- mined that the proposal will not result in any cost or sig- nificant savings to any local agency or school district for which

Part 7 (commencing with

Section 17500) of Division 4 of the Government Code would require re- imbursement, or in other nondiscretionary costs or sav- ings to local agencies. COST OR SA VINGS TO ANY STATE AGENCY; FEDERAL FUNDING The Commissioner has determined that the proposed regulation will result in no cost or savings to any state agency and no cost or savings in federal funding to the state.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1895 fect on the creation or elimination of jobs in California, the creation of new businesses, the elimination of exist- ing businesses in California, or the expansion of busi- nesses in California. COST IMPACT ON PRIV ATE PERSONS OR ENTITIES The Insurance Commissioner has initially deter- mined that the proposal will not affect private persons or entities. IMPACT ON HOUSING COSTS The Insurance Commissioner has initially deter- mined that the proposal will not affect housing costs.

IMPACT ON SMALL BUSINESS The Insurance Commissioner has initially deter- mined that the proposal will not affect small business. SPECIFIC TECHNOLOGIES OR EQUIPMENT The Insurance Commissioner has initially deter- mined that specific technologies or equipment will be needed.

ALTERNATIVES The Insurance Commissioner must determine that no reasonable alternative considered by the agency, or that has otherwise been identified and brought to the atten- tion of the agency, would be more effective in carrying out the purpose for which the action is proposed or would be as effective as and less burdensome to affect- ed private persons than the proposed action. PLAIN ENGLISH The proposed changes describing CAARP’s propos- als are in plain English.

TEXT AND INITIAL STATEMENT OF REASONS The Department has prepared an Initial Statement of Reasons addressing the proposed amendments in addi- tion to the Informative Digest included in this notice. The Initial Statement of Reasons, Notice of Proposed Action and text of Regulations are available for inspec- tion or copying, and will be provided at no charge upon request to the contact person listed above. Further de- tails on CAARP’s proposal are on file with the Commis- sioner and available for review as set forth below.

ACCESS TO RULEMAKING FILE Any interested person may inspect a copy of or direct questions about CAARP’s proposed amendments, the statement of reasons, and any supplemental informa- tion contained in the rulemaking file by contacting the contact person listed above. By prior appointment, the rulemaking file is available for inspection at 45 Fre- mont Street, 21 st Floor, San Francisco, California 94105, between the hours of 9:00 a.m. and 4:30 p.m. Monday through Friday.

AUTOMATIC MAILING A copy of this Notice, including the Informative Di- gest is being sent to all persons on the Insurance Com- missioner ’s mailing list. A V AILABILITY OF DOCUMENTS ON THE INTERNET The Initial Statement of Reasons, proposed text, and this Notice of Proposed Action will be published online and may be accessed through the Department’s website at www.insurance.ca.gov.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1896 TITLE 12. DEPARTMENT OF VETERANS AFFAIRS NOTICE IS HEREBY GIVEN that the California Department of V eterans Affairs (“CalVet”) is proposing to take the action described in the Informative Digest af- ter considering all comments, objections, and recom- mendations regarding the proposed action. PUBLIC HEARING CalVet will hold a public hearing starting at 10:00 a.m. on December 14, 2018, at the Medal of Honor Hall (“MOH”), on the first floor of CalVet’s Headquarters Building located at 1227 O Street, Sacramento, Califor- nia 95814.

The MOH is wheelchair accessible. At the hearing, any person may present statements or argu- ments orally or in writing relevant to the proposed ac- tion described in the Informative Digest. CalVet re- quests, but does not require, that persons who make oral comments at the hearing also submit a written copy of their testimony at the hearing. WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written comments relevant to the proposed regulatory action to CalVet.

Comments may also be submitted by facsimile (FAX) at (916) 653−2456 or by e−mail to phil.mcallister@calvet. ca.gov. The written comment period closes at 5:00 p.m. on December 10, 2018. CalVet will consider only com- ments received at CalVet offices by that time, as well as comments received at the public hearing. Submit com- ments to: Phil McAllister, Regulatory Actions Coordinator California Department of Veterans Affairs 1227 O Street, Suite 300 Sacramento, California 95814 AUTHORITY AND REFERENCE Authority: Education Code Sections 67100, 67101, and 67102. Reference: 38 C.F.R. 21.4253 and 3671.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW A. Policy Statement Overview The California Department of Veterans Affairs (Cal- Vet), California State Approving Agency for Veterans Education (CSAA VE), operates under contract with the U.S. Department of Veterans Affairs (USDV A). Under the authority of federal law, Title 38 United States Code, the CSAA VE approves or disapproves veterans’ education and training programs, prevents abuses, and promotes quality in veterans’ education by evaluating and monitoring education and training programs.

CalVet proposes to adopt California Code of Regula- tions, title 12, sections 443, 444, 445, 446, and 447 con- cerning additional requirements on postsecondary edu- cational institutions seeking to enroll veterans or per- sons eligible for Title 38 funds. Education Code Sections 67100, 67101, and 67102 grants CSAAVE administrative control over the Title 38 Funding Program. Postsecondary educational insti- tutions and programs seeking to enroll veterans or per- sons eligible for Title 38 awards must receive CSAA VE approval for these courses.

To that end, CSAA VE may require the postsecondary institution or program to comply with all federal and state laws and regulations as well as additional reasonable criteria established by CSAA VE. Beginning in the 2016−2017 award year, the postsecondary institution or program must also have its approval to operate from the Bureau for Private Post- secondary Education (BPPE) certified by CSAA VE or be a California public college or university. Currently, CSAA VE has not adopted comprehensive criteria for Title 38 funding.

Without regulations, post- secondary educational institutions and programs will continue to spend public funds to target Title 38 benefi- ciaries without improving either the quality of educa- tion or graduation outcomes for those recipients. Regrettably, there is a history of abuse by some Title 38 school and program recipients, including the docu- mented waste of large amounts of public monies, and more importantly, the taking of monies and years from the intended beneficiaries without adequate benefit.

These disappointing outcomes have been documented in audits, Congressional reports and numerous other sources. More specifically, the rationale for rules to pre- vent historical and predicted abuse is driven by numer- ous factors, including the following: 1. The higher maximums for tuition assistance and for living expenses for veterans under Title 38 vis−à−vis public assistance to other populations; a justifiable disparity, but one that creates an incentive for marketing abuse;

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1897 2. The irreparable harm that can flow from years of education without beneficial outcome, including the common private borrowing by students, which can create hardship where expected employment does not occur, including credit ruination and, other consequences; 3. Limitations on effective court redress or other state protections to address abuses of veterans in their use of Title 38 benefits. 4. Congressional intent that veterans receive reliable assistance to achieve self- sufficiency and success.

These and other factors commend a preventive strate- gy that is based on bright−line criteria that closely corre- late with abuse prevention or education success — including the empirical record of graduation, job quali- fication, subsequent employment, debt management, and other measurable performance factors. The rules al- so ensure that student veterans have an effective legal remedy against a postsecondary institution or pro- gram’s fraudulent or predatory practices to provide re- dress where prevention fails.

A set of these rules apply only to institutions with a predominant share of revenue from Title 38 public sources — with the concomitant expectation of statutory and rule compliance. As a part of the privileged receipt of those funds and that trust, the institutions may not categorically forbid effective judi- cial redress by the student veterans involved.

The specific problem being addressed in this regu- latory action is to, without being unduly burden- some, build upon the recent performance standards for the broader state higher education Cal Grant subsidy, and establish baseline accreditation, gradu- ation, and academic spending requirements appro- priate for this distinct population. B. Informative Digest The specific purpose for each proposed amendment or adoption of 12 CCR 443−447 would provide as follows:

Section 443 defines terms used in the regulations. This is necessary for the reader to be able to easily un- derstand the meaning of the defined term or phrase as used in the regulations.

Section 444 requires institutions be accredited in ac- cordance with California EC 67102 or be issued a waiv- er by the USDV A under 38 USC 3676

section (f)(1). This is necessary to ensure the California institutions comply with all federal and state laws and regulations regarding accreditation and the authority to operate as a California Private Postsecondary Institution.

Section 445(a)(1) requires institutions to comply with EC 67100. This is necessary to ensure that institu- tions and programs comply with state and federal re- quirements and standards applying to Title 38 eligibility.

Section 445(a)(2) requires institutions to comply with any standard, policy, rule, law, or requirement used in consideration for a grant of program approval by CSAA VE under EC 67100(c). This is necessary to en- sure that institutions and programs comply with state and federal requirements and standards applying to Ti- tle 38 eligibility.

Section 445(a)(3) requires qualifying institutions and programs provide information on their graduates’ license examination passage rates, graduation comple- tion rates, and the cohort default rate current or most re- cent year preceding the application submitted to CSAA VE for approval consideration and certify this re- quirement to CSAA VE. This is necessary to ensure that institutions and programs comply with state and federal requirements and standards applying to Title 38 eligibility.

Section 445(a)(4) requires qualifying institutions and programs to demonstrate financial stability. This is necessary to ensure that the qualifying institutions and programs can assure their students they can complete their education.

Section 445(a)(5) requires all qualifying postsec- ondary institutions and programs to comply with state and federal provisions on advertising, representations, claims, and marketing. All advertising showed to veter- ans must be truthful and comply with the Unfair Com- petition Law and the Consumer Legal Remedies Act. This

section is necessary to ensure these institutions’ advertising and representations made to veterans and other individuals eligible for Title 38 are neither fraudu- lent nor deceitful.

Section 445(a)(6) requires institutions and programs to comply with state and federal disclosure standards and requirements. All advertising showed to veterans must be truthful and comply with the Unfair Competi- tion Law and the Consumer Legal Remedies Act. This

section is necessary to ensure these institutions’ adver- tising and representations made to veterans and other individuals eligible for Title 38 are neither fraudulent nor deceitful. This is necessary to ensure the institutions and programs comply with state federal requirements and standards applying to Title 38 eligibility, and to pre- vent an institution from misrepresenting that it has such approval from the Department of Education or CSAA VE.

Section 445(a)(7) requires the institution or program to provide URL links to the CSAA VE websites. This is necessary to help prospective students make informed decisions about their academic future and to inform stu- dents of the approval status of the institution and its program(s).

Section 445(b)(1) requires institutions to comply with EC 67100. This is necessary to ensure that institu- tions and programs comply with state and federal re-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1898 quirements and standards applying to Title 38 eligibility.

Section 445(b)(2) requires institutions to satisfy re- quirements necessary to allow a student who completes the educational program to qualify to take any required licensing or certification exam. This is necessary to en- sure that institutions and programs comply with state and federal requirements and standards applying to Ti- tle 38 eligibility, and to assure student success.

Section 445(

c) requires qualifying institutions and programs to conduct an “employment market assess- ment” at program creation and submit the assessment to CSAA VE. This is necessary to substantiate student out- comes following graduation and demonstrate that the institution or program is responding to job market con- ditions and substantiate advertising claims.

Section 445(

d) authorizes CSAA VE to utilize the in- stitution’s or program’s compliance with any standards, rules, and/or requirements prescribed by any state or federal licensing or approving agency or entity, and any accrediting body, agency, or association, as a basis for a grant of CSAA VE approval. This is necessary to ensure that CSAA VE does not grant approval for non− compliant institutions and programs and prevent veter- ans and other eligible persons from enrolling and losing Title 38 education benefits.

Section 446 requires institutions to provide CSAA VE copies of all documents and other materials concerning the institution and its programs for which approval is sought, including all documents maintained by the governmental, accrediting, or licensing agency or entity. This is to ensure CSAA VE has knowledge of the licensing and/or approval status of an institution or its approved programs offered in California.

Section 447 authorizes CSAA VE to suspend the ap- proval of a course for new enrollment, or suspend ap- proval of a licensing or certification test, pursuant to 38 Code of Federal Regulations (CFR)

section 21.4259(a)(l). It also provides the authority to immedi- ately disapprove a course, licensing or certification test, pursuant to 38 CFR

Section 21.4259(a)(2) and 38 USC

section 3679. EV ALUATION OF INCONSISTENCY/ INCOMPATIBILITY WITH EXISTING STATE REGULATIONS After conducting an evaluation for any regulations related to this area, Cal Vet has found that there are no inconsistent or incompatible existing state regulations. Cal V et (through the CSAA VE administrator) is the on- ly state agency that regulates the awarding of Title 38 funds to postsecondary educational institutions and programs seeking to enroll veterans or eligible persons for such awards.

DISCLOSURES REGARDING THE PROPOSED ACTION CalVet has made the following initial determinations: Mandate on local agencies and school districts: None. Cost or savings to any state agency: Minimal. Cost to any local agency or school district which 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.

Cost impacts on a representative private persons or businesses: CalVet is not aware of any cost impacts that a representative private person or business would nec- essarily incur in reasonable compliance with the pro- posed action. Significant, Statewide Adverse Economic Impact on Business: The proposed regulations will not have a sig- nificant, statewide adverse economic impact directly affecting business, including the ability of California businesses to complete with businesses in other states. Significant effect on housing costs: None.

RESULTS OF ECONOMIC IMPACT ASSESSMENT/ANALYSIS In accordance with Government Code

section 11346.5(a)(10), the results of the EIA (full EIA found in the Initial Statement of Reasons) are as follows: • The proposed regulations will not create or eliminate jobs in California. • The proposed regulations will not create or eliminate businesses in California. • The proposed regulations will not affect the expansion of existing businesses in California. Benefits of the Proposed Action: The proposed regulations will add protections for California veterans not currently in place.

Applying the standards currently in place for the Cal Grant subsidy ensure a consistent application of state requirements for higher education institutions, while protecting veterans and ensuring they will receive the educational benefits they expect and should acquire when enrolled in a state− approved Title 38 program. SMALL BUSINESS DETERMINATION The proposed regulations will not affect small busi- ness because this proposed regulation only impacts ed- ucational institutions who seek Title 38 funding.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1899 BUSINESS REPORT The proposed regulation does not require a business report.

CONSIDERATION OF ALTERNATIVES CalVet must determine that no reasonable alternative it considered or that has otherwise been identified and brought to its attention would be more effective in car- rying 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 provision of law.

CONTACT PERSONS Inquiries concerning the proposed administrative ac- tion may be directed to: Phil McAllister, Regulatory Actions Coordinator California Department of Veterans Affairs 1227 O Street, Suite 300 Sacramento, California 95814 Telephone: (916) 653−1961 Fax: (916) 653−2456 Email: phil.mcallister@calvet.ca.gov The backup contact person for these inquiries is: Latanaya Johnson Education Administrator California State Approving Agency for Veterans Education 1227 O Street Sacramento, CA 95814 Telephone: (916) 503−8319 Fax: (916)653−1035 Email: latanaya.johnson@calvet.ca.gov Please direct requests for copies of the proposed text (the “express terms”) of the regulations, the initial state- ment of reasons, the modified text of the regulations, if any, or other information upon which the rulemaking is based to Phil McAllister at the above address.

A V AILABILITY OF STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS, AND RULEMAKING FILE CalVet will make 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 Notice Register, the rule- making file consists of this notice, the proposed text of the regulations and the initial statement of reasons. Copies may be obtained by contacting Phil McAllister at the address or phone number listed above.

A V AILABILITY OF CHANGED OR MODIFIED TEXT After holding the hearing and considering all timely and relevant comments received, CalVet may adopt the proposed regulations substantially as described in this notice. If CalVet makes modifications which are suffi- ciently related to the originally proposed text, it will make the modified text (with the changes clearly indi- cated) available to the public for at least 15 days before CalVet adopts the regulations as revised. Please send re- quests for copies of any modified regulations to the at- tention of Phil McAllister at the address indicated above.

CalVet will accept written comments on the modified regulations for 15 days after the date on which they are made available. A V AILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons may be obtained by contacting Phil McAllister at the above address. A V AILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Action, the Initial Statement of Reasons, and the text of the regulations in underline and strikeout can be accessed through our website at https://www.calvet.ca.gov/about−us/laws− regulations. TITLE 17.

AIR RESOURCES BOARD NOTICE OF PUBLIC HEARING TO CONSIDER THE PROPOSED REGULATION FOR THE REPORTING OF CRITERIA AIR POLLUTANTS AND TOXIC AIR CONTAMINANTS The California Air Resources Board (CARB or Board) will conduct a public hearing at the time and place noted below to consider approving for adoption the proposed Regulation for the Reporting of Criteria Air Pollutants and Toxic Air Contaminants (title 17,

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1900 California Code of Regulations,

section 93400 et seq.), which was developed pursuant to requirements of Cali- fornia Assembly Bill (AB) 617.1 DATE: December 13, 2018 TIME: 9:00 a.m. PLACE: California Environmental Protection Agency California Air Resources Board Byron Sher Auditorium 1001 I Street Sacramento, California 95814 This item may be considered at a two−day meeting of the Board, which will commence at 9:00 a.m., Decem- ber 13, 2018, and will continue at 8:30 a.m., December 14, 2018.

Please consult the agenda for the meeting, which will be available at least 10 days before Decem- ber 13, 2018, to determine the day on which this item will be considered. WRITTEN COMMENT PERIOD AND SUBMITTAL OF COMMENTS Interested members of the public may present com- ments orally or in writing at the hearing and may pro- vide comments by postal mail or by electronic submittal before the hearing. The public comment period for this regulatory action will begin on October 26, 2018.

Writ- ten comments not physically submitted at the hearing must be submitted on or after October 26, 2018, and re- ceived no later than 5:00 p.m. on December 10, 2018. CARB requests that when possible, written and email statements be filed at least 10 days before the hearing to give CARB staff and Board members additional time to consider each comment. The Board also encourages members of the public to bring to the attention of staff in advance of the hearing any suggestions for modifica- tion of the proposed regulatory action.

Comments sub- mitted in advance of the hearing must be addressed to one of the following: Postal mail: Clerk of the Board, California Air Resources Board 1001 I Street, Sacramento, California 95814 Electronic submittal: http://www.arb.ca.gov/lispub/comm/bclist.php Please note that under the California Public Records Act (Gov. Code, § 6250 et seq.), your written and oral comments, attachments, and associated contact infor- mation (e.g., your address, phone, email, etc.) become part of the public record and can be released to the pub- lic upon request.

Additionally, the Board requests but does not require that persons who submit written comments to the Board reference the title of the proposal in their comments to facilitate review. AUTHORITY AND REFERENCE This regulatory action is proposed under the authority granted in California Health and Safety Code, sections 39600, 39601, 39605, 39607, 39607.1, 39701, 41511, 42700, 42705, 42705.5, 42705.6, and 44391.2. This ac- tion is proposed to interpret and implement

section 39607.1 of the Health and Safety Code. INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW Sections Affected: Proposed adoption to California Code of Regulations, Title 17, Subchapter 7.7,

Article 1, sections 93400, 93401, 93402, 93403, 93404, 93405, 93406, 93407, 93408, 93409, 93410, and 93411. Documents Incorporated by Reference (Cal. Code Regs., tit. 1, § 20, subd. (c)(3)): • California Office of Environmental Health Hazard Assessment (OEHHA), Air Toxics Hot Spots Program — Risk Assessment Guidelines — The Air Toxics Hot Spots Program Guidance Manual for Preparation of Health Risk Assessments. February 2015; Incorporated by reference in

section 93401(c)(2)(A)1. Available at: https://oehha.ca.gov/air/crnr/notice−adoption− air−toxics−hot−spots−program−guidance− manual−preparation−health−risk−0 . • CARB, Emission Inventory Criteria and Guidelines for the Air Toxics “Hot Spots” Program. Effective September 26, 2007; Incorporated by reference in

section 93402, “Toxic air contaminant.” Available at: https://www.arb.ca.gov/ab2588/2588guid.htm_ (Appendix A−1). • United States Census Bureau, North American Industry Classification System Manual. 2017; Incorporated by reference in

section 93402, “North American Industry Classification System (NAICS) code(s).” Available at https://www. census.gov/eos/www/naics/2017NAICS/2017_ NAICS_Manual.pdf . • United States Environmental Protection Agency (U.S. EPA) Data Element Registry Service (DERS), Unit Type Code, System of Registries — 1 Assembly Bill 617, Garcia, C.,

Chapter 136, Statutes of 2017, modified the California Health and Safety Code, amending § 40920.6, § 42400, and § 42402, and adding § 39607.1, § 40920.8, § 42411, § 42705.5, and § 44391.2.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1901 Export, effective date January 7, 2013; Incorporated by reference in

section 93402, “Unit Type Code.” Available at: https://iaspub.epa.gov/ sor_internet/registry/datareg/searchandretrieve/ valuelist/search.do?d−49489−e=5&verNr=1& details=displayDetails&id=12300&6578706f727 4=1 . • U.S. EPA Source Classification Codes, as Appendix C to the ISOR, accessed October 1, 2018; Incorporated by reference in

section 93402, “Source Classification Code(s).” Available at: https://ofmpub.epa.gov/sccwebservices/ sccsearch/. • National Oceanic and Atmospheric Administration, North American Datum of 1983. December 1989; Incorporated by reference in

section 93402, “Geospatial coordinates.” Available at https://www.ngs.noaa.gov/PUBS_ LIB/NADof1983.pdf. Background: California’s existing air quality programs are respon- sible for significant public health improvements through statewide and regional air quality planning re- quirements, advancement of technology−based solu- tions, and risk reduction efforts near industrial facili- ties. For example, since the 1970s, regulations at the State and local level have led to a nearly 70 percent re- duction in nitrogen oxide emissions, a key component of smog formation.

Also, in the past 25 years, emissions and health impacts from air toxics exposure have been reduced by 75 percent. However, certain communities continue to experi- ence adverse and inequitable environmental and health impacts from air pollution. As compared to other areas, communities near ports, rail yards, warehouses, or free- ways, for example, experience a higher concentration of air pollution due to emissions from mobile sources such as cars, diesel trucks, locomotives, and ships. Many of the same communities also experience air quality impacts from large industrial facilities such as oil refineries.

Additionally, in many communities across the State, smaller sources of toxic air contami- nants like chrome plating facilities, metal recycling fa- cilities, oil and gas production operations, and pesticide use, also contribute to localized air quality impacts. Within certain communities multiple sources of toxic air contaminants that are located in close proximity may also result in an elevated cumulative exposure burden for nearby human receptors.

AB 617, signed into law in July 2017, continues Cali- fornia’s environmental leadership by establishing inno- vative new practices to improve air quality in Califor- nia’s most disadvantaged communities. AB 617 re- quires community−focused and community−driven ac- tion, using multiple strategies and tools, to reduce air pollution and improve public health in communities ex- periencing a disproportionate cumulative exposure bur- den from air pollutants. A critical component of AB 617 is its reporting requirements that will be implemented by this proposed regulation.

Emissions inventory data is the foundation of many programs at CARB. Emissions inventory data for greenhouse gases (GHG) support CARB’s programs focused on climate change issues, while inventory of criteria pollutant and toxic air contaminants emissions data is critical to support California’s air quality pro- grams. Consistently updated and accurate emissions data is also fundamental to the community right−to− know tenets established in AB 197, 2 and the communi- ty−driven action mandated by AB 617.

Emissions data is crucial to evaluating and mitigating the effects of air pollutants at the local, regional, and statewide levels. Historically, emissions inventories were developed to assess emissions to support air quality programs such as State Implementation Plans and local measures im- plemented by the air districts. AB 197 and AB 617 re- quire a more integrated, trend−based assessment of cri- teria pollutant and air toxics emissions data. However, the frequency and scope of reporting criteria pollutants and air toxics emissions varies between air districts.

Many large air districts collect criteria and air toxic emissions data annually, while smaller districts may on- ly report emissions once every three or four years, de- pending on the size of a facility. Additionally, the types of criteria pollutants and air toxics reported vary across districts, depending on the attainment status of air dis- tricts and the proximity of sources to large sources.

Proposed Regulatory Action: The emission reporting requirements in AB 617 di- rect CARB to establish a uniform statewide system of annual reporting of criteria pollutant and toxic air con- taminants for stationary sources, while working closely with the local air districts.

The proposed “Regulation for the Reporting of Crite- ria Air Pollutants and Toxic Air Contaminants” (or CTR Regulation) includes the following: • Annual criteria pollutant and air toxics emissions reporting for sources subject to the CTR Regulation; • Consistency in the types of criteria pollutants and air toxics that need to be reported; • Establishing applicability for sources subject to the reporting requirements; 2 Assembly Bill 197, Garcia, E.,

Chapter 250, Statutes of 2016, modified the California Health and Safety Code, amending § 39510 and § 39607, and adding § 38506, § 38531, § 38562.5, and § 38562.7.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1902 • Establishing the contents and how the emissions must be reported in the emissions data report; • Creating reporting deadlines and the process for submitting emissions data reports. CARB will implement the proposed program re- quirements in tandem with local air districts to avoid potential duplication of reporting efforts. Air districts have worked closely with their local facilities for many decades and have detailed, specific knowledge of these facilities with regard to their permitting, data collec- tion, and enforcement histories.

The districts’ knowl- edge is necessary to ensure the success of the statewide reporting program. This notice provides the objectives and benefits, a

summary of fiscal impacts, and other information relat- ed to the implementation of AB 617’s

section 39607.1 of the California Health and Safety Code (H&SC) by establishing a uniform statewide system for mandatory annual emissions reporting to CARB. Objectives and Benefits of the Proposed Regulation: The proposed CTR regulation supports the commu- nity right−to−know components of AB 197 and the community−driven actions to address cumulative expo- sure burden in the most impacted communities in AB 617.

The data collected under the regulation will be a significant and beneficial tool in ensuring that commu- nities that are disproportionately affected by air pollu- tion will get the help they need to reduce their air pollu- tion burdens. Additionally, the CTR regulation meets the needs of AB 197 by requiring the annual collection of criteria pollutant and air toxics emissions data, which improves the ability to establish emissions trends for the largest of California’s emissions sources.

A key benefit of the proposed regulation is its harmo- nization of statewide data submission requirements, such as reporting deadlines, frequency of reporting, and the specific chemical substances and other data to be re- ported on an annual basis, so that similar industrial sec- tors will begin to have data comparability, regardless of where they are located within California. This im- proved data in turn provides benefits to community groups, the public, regulators, scientists, CARB, and others, who have growing needs to access complete, user−friendly, and high−quality emissions data.

The proposed regulation would significantly increase ac- cess to useful data in user−friendly forms, such as map- ping (as provided in the current CARB Pollution Map- ping Tool 3), graphs, and detailed emissions data reports when needed. In addition to addressing the requirements and goals of AB 197 and AB 617, inventory data helps to deter- mine what is being emitted into the air, by whom, and where.

Inventory data helps guide and provides the sci- entific basis for CARB’s regulatory development process; identify and address areas of concern; and to track progress in emission reduction efforts, from sta- tionary sources, area sources, and mobile sources. Con- sistently reported and accurate inventory data are an es- sential element in the development of cost−effective so- lutions to reduce air pollution and protect human health. Moreover, inventory data supports CARB’s overall obligation to work to improve California’s air quality.

Additionally, while the reporting regulation provides no direct benefits to worker safety, over time, indirect benefits to workers and residents within these commu- nities may be realized as a function of actions taken to reduce emissions, based on the improved inventory. Comparable Federal Regulations: Various provisions of existing federal regulations re- quire the reporting of criteria emissions and toxic air contaminants to U.S. EPA. The proposed CARB regu- lation also requires reporting of criteria and toxic emis- sions, which does have some overlap with existing fed- eral requirements.

Overall, however, the requirements are not duplicative. The proposed CARB regulation is specifically designed to address the needs associated with evaluating air pollution impacts in disproportion- ately impacted communities. These needs cannot be met with data collected under existing federal regula- tions, which makes it necessary to implement the new CARB requirements. In addition, the reporting requirements are mandated by AB 617,

section 39601.7(b)(1) of the H&SC, which requires CARB to establish “a uniform statewide sys- tem of annual reporting of emissions of criteria pollu- tants and toxic air contaminants for a stationary source.” Further, the cost of differing reporting regula- tions is justified by the anticipated benefits to human health, public welfare, and the environment. Communi- ty monitoring and emission reduction programs will be implemented using the data collected under the regula- tion as a foundation to establish, evaluate, and quantify community air quality improvements.

Additional infor- mation related to the justification for adoption of regu- lations different from federal regulations is provided in

Section IX of the “Staff Report: Initial Statement of Reasons — Proposed Regulation for the Reporting of Criteria Air Pollutants and Toxic Air Contaminants,” referred to as the Initial Statement of Reasons (ISOR). An Evaluation of Inconsistency or Incompatibility with Existing State Regulations (Gov. Code, § 11346.5, subd. (a)(3)(D)): During the process of developing the proposed regu- latory action, CARB conducted a search of any similar regulations on this topic and concluded that these regu- 3 CARB Pollution Mapping Tool: https://www.arb.ca.gov/ei/ tools/pollution_map/.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 43-Z 1903 lations are neither inconsistent nor incompatible with existing State regulations. DISCLOSURE REGARDING THE PROPOSED REGULATION Fiscal Impact/Local Mandate Determination Regarding the Proposed Action (Gov. Code, § 11346.5, subds. (a)(5)&(6)): The determinations of the Board’s Executive Officer concerning the costs or savings incurred by public agencies and private persons and businesses in reason- able compliance with the proposed regulatory action are presented below. A more detailed description and analysis is provided in

Chapter VII of the ISOR for this regulatory item. Local Mandate Determination and Cost to Any Local Agency or School District Requiring Reimbursement under Government Code

section 17500 et seq.: None. Because the regulatory requirements apply equally to all reporting categories and unique requirements are not imposed on local agencies, the Executive Officer has determined that the proposed regulatory action imposes no costs on local agencies that are required to be reim- bursed by the State pursuant to

part 7 (commencing with

section 17500), division 4, title 2 of the Govern- ment Code, and does not impose a mandate on local agencies that is required to be reimbursed pursuant to

Section 6 of

Article XIII B of the California Constitu- tion. The proposed regulatory action would not create costs to any school district reimbursable by the State pursuant to

Part 7 (commencing with

section 17500), division 4, title 2 of the Government Code. Cost or Savings for State Agencies: Pursuant to Gov- ernment Code sections 11346.5(a)(5) and 11346.5(a)(6), the Executive Officer has determined that the proposed regulatory action would result in a to- tal marginal cost increase to approximately 260 state owned or operated facilities, with a total cost of approx- imately $138,000 over four years. The costs result from minor additional emissions reporting requirements.

Other Non−Discretionary Costs or Savings to Local Agencies: The cost to 1,610 local agencies is estimated to be approximately $5,000,000 over four years. The lo- cal agency cost estimate includes a four−year cost of ap- proximately $4,000,000 for 31 local air districts to im- plement provisions of the regulation, and a four−year cost of $625,000 for 1,574 additional local agencies, such as water treatment plants, landfills, power plants, and others, who would be subject to the proposed re- porting requirements for facilities. Cost or Savings in Federal Funding to the State: None.

Pursuant to Government Code sections 11346.5(a)(5) and 11346.5(a)(6), the Executive Officer has determined that the proposed regulatory action would not create costs or savings in federal funding to the State. Housing Costs (Gov. Code, § 11346.5, subd. (a)(12)): The Executive Officer has made the initial determi- nation that the proposed regulatory action will not have a significant effect on housing costs. Significant Statewide Adverse Economic Impact Directly Affecting Businesses, Including Ability to Compete (Gov.

Code, §§ 11346.3, subd. (a), 11346.5, subd. (a)(7), 11346.5, subd. (a)(8)): The Executive Officer has made an initial determina- tion that the proposed regulatory action would not have a significant statewide adverse economic impact direct- ly affecting businesses, including the ability of Califor- nia businesses to compete with businesses in other states, or on representative private persons. Results of the Economic Impact Analysis/ Assessment (Gov. Code, § 11346.5, subd. (a)(10)): NON−MAJOR REGULATION: Statement of the Results of the Economic Impact A

Document details

Collection	California Z Register
Citation	Cal. Reg. Notice Reg. 2018, No. 43
Type	gazette
Language	en
Format	pdf
Source	CA_ZREG
Identifier	68d911aafb0d542605ab3a577c59a10eb4139fff

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