REGISTER (Continued on next page) Time- Dated Material EDMUND G. BROWN, JR., GOVERNOR OFFICE OF ADMINISTRATIVE LAW 2018, NO. 36−Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW SEPTEMBER 7, 2018 PROPOSED ACTION ON REGULATIONS TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Conflict−of−Interest Code — Notice File No.

Z2018−0828−16 ......................................... 1373 Adoption Multi−County: Scholarship Prep Charter Schools El Dorado Water and Power Authority State Agency: Cannabis Control Appeal Board Amendment State Agency: CA Department of Public Health Multi−County: Panoche Drainage District Panoche Water District Golden Sierra Job Training Agency Public Agency Risk Sharing Authority Fresno−Kings−Madera Regional Health Authority Tri−County Water Authority TITLE 4. CALIFORNIA HORSE RACING BOARD Paymaster of Purses — Notice File No. Z2018−0827−01 .............................................. 1374 TITLE 11.

COMMISSION ON PEACE OFFICER STANDARDS AND TRAINING Reimbursements for Training — Notice File No. Z2018−0828−17 ....................................... 1377 TITLE 13. AIR RESOURCES BOARD Specially Produced Motor Vehicles — Notice File No. Z2018−0821−03 .................................. 1379 TITLE 13. AIR RESOURCES BOARD Specifications for Vehicle Fill Pipes and Openings — Notice File No. Z2018−0821−02 ...................... 1384 TITLE 15. DEPARTMENT OF CORRECTIONS AND REHABILITATION Inmate and Parolee Name Change — Notice File No. Z2018−0828−18 .................................. 1389

(Continued on next page) TITLE 16. CANNABIS CONTROL APPEALS PANEL Conflict−of−Interest Code — Notice File No. Z2018−0827−02 ......................................... 1392 TITLE 17. AIR RESOURCES BOARD Cap−and−Trade Amendments — Notice File No. Z2018−0824−04 ...................................... 1392 TITLE 17. AIR RESOURCES BOARD Gas Station Nozzle Dimensions Regulation — Notice File No. Z2018−0821−01 ............................ 1412 TITLE 17. AIR RESOURCES BOARD Mandatory Reporting of Greenhouse Gas Emissions — Notice File No. Z2018−0824−03 .................... 1419 TITLE 24.

BUILDING STANDARDS COMMISSION Minimum Standards for Local and Juvenile Detention Facilities — Notice File No. Z2018−0828−01 ........... 1425 TITLE 24. BUILDING STANDARDS COMMISSION Title 24,

Part 2, California Building Code 2018 Triennial Code Adoption Cycle — Notice File No. Z2018−0828−02 ................................................................. 1428 TITLE 24. BUILDING STANDARDS COMMISSION Public Swimming Pools — Notice File No. Z2018−0828−03 ........................................... 1432 TITLE 24. BUILDING STANDARDS COMMISSION Adopt and Amend 2019 California Administrative,

Part 1, Title 24, CCR — Notice File No. Z2018−0828−04 ................................................................. 1435 TITLE 24. BUILDING STANDARDS COMMISSION Adopt and Amend 2019 California Building Code,

Part 2, Title 24, CCR — Notice File No. Z2018−0828−05 ................................................................. 1440 TITLE 24. BUILDING STANDARDS COMMISSION Adoption of the 2018 International Building Code with Amendments into the 2019 California Building Code — Notice File No. Z2018−0828−06 ................................................................. 1444 TITLE 24. BUILDING STANDARDS COMMISSION Adoption of the 2018 International Residential Code with Amendments into the 2019 CA Residential Code — Notice File No.

Z2018−0828−07 ................................................................. 1448 TITLE 24. BUILDING STANDARDS COMMISSION 2018 Triennial Code Adoption Cycle — 2019 — CCR, Title 24,

Part 2 — Notice File No. Z2018−0828−08 ...... 1452 TITLE 24. BUILDING STANDARDS COMMISSION 2018 Triennial Code Adoption Cycle — 2019 — CCR, Title 24,

Part 2.5 — Notice File No. Z2018−0828−09 .... 1456

TITLE 24. BUILDING STANDARDS COMMISSION 2018 Triennial Code Adoption Cycle — 2019 — CCR, Title 24,

Part 9 — Notice File No. Z2018−0828−10 ................................................................. 1461 TITLE 24. BUILDING STANDARDS COMMISSION 2018 Triennial Code Adoption Cycle — 2019 CCR, Title 24,

Part 10 — Notice File No. Z2018−0828−11 ................................................................. 1465 TITLE 24. BUILDING STANDARDS COMMISSION 2018 Triennial Code Adoption Cycle — 2019 — CCR, Title 24,

Part 12 — Notice File No. Z2018−0828−12 ................................................................. 1470 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE Fish and Game Code

Section 1653 Consistency Determination Request for Seldom Seen Diversion Fish Passage Improvement Project (Tracking Number: 1653−2018−026−001−R1), Siskiyou County ............ 1475 DEPARTMENT OF HEALTH CARE SERVICES Assisted Living Waiver Renewal ................................................................. 1475 DEPARTMENT OF SOCIAL SERVICES Temporary Assistance to Needy Families (TNAF) State Plan Renewal 2018 ............................... 1475

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State ........................................................ 1476 Sections Filed, March 2, 2016 to August 3, 2016 .................................................... 1477 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. 36-Z 1373 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 ADOPTION MULTI−COUNTY: Scholarship Prep Charter Schools El Dorado Water and Power Authority STATE AGENCY: Cannabis Control Appeals Board AMENDMENT STATE AGENCY: CA Department of Public Health MULTI−COUNTY: Panoche Drainage District Panoche Water District Golden Sierra Job Training Agency Public Agency Risk Sharing Authority Fresno−Kings−Madera Regional Health Authority Tri−County Water Authority A written comment period has been established com- mencing on September 7, 2018, and closing on October 22, 2018.

Written comments should be directed to the Fair Political Practices Commission, Attention Brianne Kilbane, 1102 Q Street, Suite 3000, Sacramento, Cali- fornia 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 October 22, 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, re- vise the proposed code and approve it as revised, or re- turn the proposed code for revision and re−submission. REFERENCE Government Code Sections 87300 and 87306 pro- vide that agencies shall adopt and promulgate conflict−

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1374 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. 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 4.

CALIFORNIA HORSE RACING BOARD RULE 1467, PAYMASTER OF PURSES The California Horse Racing Board (Board or CHRB) proposes to amend the regulation described be- low after considering all comments, objections or rec- ommendations regarding the proposed action. PROPOSED REGULATORY ACTION The Board proposes to amend Rule 1467, Paymaster of Purses, which will require that the paymaster of purs- es deduct from the purses of both jockeys and trainers 0.3 percent to be deposited into a charitable trust fund maintained by the not−for−profit organization CARMA (California Retirement Management Ac- count).

Trainers and jockeys may elect not to have the 0.3 percent deducted from their purses by filing with the paymaster, Notification of Exclusion of CARMA Con- tribution, form CHRB−206 (Rev. 06/18), which is available at the office of the paymaster. The proposed amendment will also require that CARMA file an audit- ed financial statement with the California Horse Racing Board annually at the end of CARMA’s fiscal year.

PUBLIC HEARING The Board will hold a public hearing starting at 9:30 a.m., Thursday, October 25, 2018, or as soon after that as business before the Board will permit, at Santa Ani- ta Race Track, 285 West Huntington Drive, Arcadia, California. At the hearing, any person may present statements or arguments orally or in writing about the proposed action described in the informative digest. It is requested, but not required, that persons making oral comments at the hearing submit a written copy of their testimony.

WRITTEN COMMENT PERIOD Any interested persons, or their authorized represen- tative, may submit written comments about the pro- posed regulatory action to the Board. The written com- ment period closes at 5:00 p.m. on October 22, 2018. The Board must receive all comments at that time; how- ever, written comments may still be submitted at the public hearing.

Submit comments to: Robert Brodnik, Staff Counsel California Horse Racing Board 1010 Hurley Way, Suite 300 Sacramento, CA 95825 Telephone (916) 263−6025 Fax: (916) 263−6022 E−Mail: rjbrodnik@chrb.ca.gov AUTHORITY AND REFERENCE Authority cited: Sections 19420, 19440, and 19562, Business and Professions Code. Reference: Sections 19420, 19433, 19434, 19440, and 19562, Business and Professions Code.

Business and Professions Code sections 19420, 19440, and 19562 authorize the Board to adopt the pro- posed regulatory amendments, which would imple- ment, interpret or make specific sections 19433 and 19434, Business and Professions Code. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Business and Professions Code

section 19420 states that jurisdiction and supervision over meetings in Cali- fornia where horse races with wagering on their results are held, and over all persons or things having to do with the operation of such meetings, is vested in the Board. Business and Professions Code

section 19440 provides that the Board shall have all powers necessary and prop- er to enable it to carry out fully and effectually the pur- poses of the Horse Racing Law. Responsibilities of the

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1375 Board include adopting rules and regulations for the protection of the public and the control of horse racing and pari−mutuel wagering. Business and Professions Code

section 19562 states that the Board may prescribe rules, regulations, and conditions under which all horse racing with wagering on its results shall be conducted. Business and Professions Code

section 19433 allows the Board to investigate and visit the place of business of any licensee to ensure the rules and regulations are strictly complied with. Business and Professions Code

section 19434 states that the Board may require that the books or financial statements of any licensee be kept in any manner prescribed by the Board. Thoroughbred horses competing in races throughout California are well cared for athletes. However, there is a concern among those in the industry regarding the fate of retired California thoroughbred racehorses. There are a number of nonprofit institutions in California that accept retired and injured racehorses to rehabilitate and use as private pleasure horses, or a number of other functions such as show jumping.

These retirement and rehabilitation facilities rely on volunteers and dona- tions, as well as income earned from selling rehabilitat- ed racehorses for non−racing purposes. However, there is no sustainable and predictable source of funding for such programs. This has been a long−term industry con- cern, as the majority of thoroughbred owners do not have the financial resources to maintain injured or re- tired racehorses.

To address this concern, Rule 1467 currently requires the paymaster of purses to deduct from a horse owner’s account 0.3 percent of the net purse earned by any thor- oughbred horse at a thoroughbred racing association or fair meeting.

Rule 1467 directs that these deductions be deposited into the California Retirement Management Account (CARMA) for distribution by the horsemen’s organization representing the thoroughbred owners to California thoroughbred retirement and rehabilitation facilities, which provide livestock care and services to retired thoroughbred horses that competed in thorough- bred races in California.

Thoroughbred horse owners may elect not to have the 0.3 percent deducted from their net purses by filing with the paymaster of purses Notification of Exclusion of CARMA Contribution, form CHRB−206, which is available at the office of the paymaster at any race meeting. The proposed amendment to Rule 1467 is meant to further the goal of providing funding to thoroughbred retirement and rehabilitation facilities.

The proposed amendment to Rule 1467 would similarly deduct 0.3 percent from jockeys’ and trainers’ purses to be de- posited into the CARMA trust account for distribution by the not−for−profit organization CARMA to Califor- nia thoroughbred retirement and rehabilitation facili- ties. Similarly, a jockey or trainer may elect not to have the 0.3 percent deducted from his or her purse by filing with the paymaster a Notification of Exclusion of CAR- MA Contribution, form CHRB−206 (Rev. 06/18), which is available at the office of the paymaster at all race meetings.

FORMS INCORPORATED BY REFERENCE 1) Form CHRB−206, Notification of Exclusion of CARMA Contribution, (Revised 06/18) The proposed amendment to Rule 1467 will incorpo- rate by reference CHRB−206, Notification of Exclu- sion of CARMA Contribution (Revised 06/18), as it would be cumbersome, unduly expensive or otherwise impractical to publish this document in the California Code of Regulations. Form CHRB−206, Notification of Exclusion of CARMA Contribution (Revised 06/18), will be used by licensed owners, jockeys and trainers to opt out of the 0.3 percent deduction.

POLICY STATEMENT OVERVIEW OF ANTICIPATED BENEFITS OF PROPOSAL Rule 1467 currently requires the paymaster of purses to deduct from a horse owner’s account 0.3 percent of the net purse earned by any thoroughbred horse at a thoroughbred racing association or fair meeting.

Rule 1467 directs that these deductions be deposited into the California Retirement Management Account (CARMA) for distribution by the horsemen’s organiza- tion representing the thoroughbred owners to Califor- nia thoroughbred retirement and rehabilitation facili- ties, which provide livestock care and services to retired thoroughbred horses that competed in thoroughbred races in California.

Thoroughbred horse owners may elect not to have the 0.3 percent deducted from their net purses by filing with the paymaster of purses Notifica- tion of Exclusion of CARMA Contribution, form CHRB−206, which is available at the office of the pay- master at any race meeting. The purpose of this regula- tion is to provide funding to California thoroughbred re- tirement and rehabilitation facilities, which provide livestock care and services to retired thoroughbred horses. The proposed amendment to Rule 1467 is meant to further the goal of providing funding to thoroughbred retirement and rehabilitation facilities.

The proposed amendment to Rule 1467 would similarly deduct 0.3 percent from jockeys’ and trainers’ purses to be de- posited into the CARMA trust account for distribution by the not−for−profit organization CARMA to Califor- nia thoroughbred retirement and rehabilitation facili- ties, which provide livestock care and services to retired thoroughbred horses that competed in thoroughbred

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1376 races in California. Similarly, a jockey or trainer may elect not to have the 0.3 percent deducted from his or her purse by filing with the paymaster a Notification of Ex- clusion of CARMA Contribution, form CHRB−206 (Rev. 06/18), which is available at the office of the pay- master at all race meetings. The proposed amendment to Rule 1467 will substan- tially enhance the integrity and perception of California horse racing by continuing to provide charitable organi- zations with funding for the treatment and housing for horses during retirement.

The regulation promotes transparency in business by requiring the not−for−prof- it organization CARMA to file an audited financial statement with the California Horse Racing Board an- nually at the end of CARMA’s fiscal year. CONSISTENCY EV ALUATION During the process of developing the amendment, the CHRB has conducted a search of any similar regula- tions on this topic and has concluded that the regulation is neither inconsistent nor incompatible with existing state regulations. DISCLOSURE REGARDING THE PROPOSED ACTION Mandate on local agencies and school districts: none.

Cost or savings to any state agency: none. Cost to any local agency or school district that must be reimbursed in accordance with Government Code Sections 17500 through 17630: none. Other non−discretionary costs or savings imposed upon local agencies: none. Cost or savings in federal funding to the state: none. The Board has made an initial determination that the proposed amendments to Rule 1467 will not have a sig- nificant statewide adverse economic impact directly af- fecting businesses, including the ability of California businesses to compete with businesses in other states.

The following studies/relevant data were relied upon in making the above determination: none. ECONOMIC IMPACT ASSESSMENT The results of the Board’s Economic Impact Assess- ment as required by Government Code

section 11346.3(

b) are as follows: The proposed amendment to Rule 1467, Paymaster of Purses, will require that the paymaster of purses deduct from the purses of both jockeys and trainers 0.3 percent to be deposited into a charitable trust fund main- tained by the not−for−profit organization California Retirement Management Account (CARMA). Trainers or jockeys may elect not to have the 0.3 percent deduct- ed from their purses by filing with the paymaster a Noti- fication of Exclusion of CARMA Contribution, form CHRB−206 (Rev. 06/18), available at the office of the paymaster.

The proposed amendment will also require that CARMA file an audited financial statement with the California Horse Racing Board annually within 90 days of the end of CARMA’s fiscal year. The proposed amendment will protect the interests of the California horse racing industry by providing funding to Califor- nia thoroughbred retirement and rehabilitation facili- ties. The proposed amendment will also ensure full dis- closure and transparency by requiring the not−for−prof- it organization CARMA to file an audited financial statement with the California Horse Racing Board at the end of its fiscal year.

The proposed amendment to Rule 1467 will not im- pact jockeys and trainers who file a Notification of Ex- clusion of CARMA Contribution, form CHRB−206 (Rev. 06/18). The proposed amendment to Rule 1467 will have a minimal economic impact on jockeys and trainers who do not file a Notification of Exclusion of CARMA Contribution, form CHRB−206 (Rev. 06/18), as 0.3 percent will be deducted from their purse accounts.

The adoption of the proposed amendment to Rule 1467 will not (1) create or eliminate jobs within Califor- nia; (2) create new businesses or eliminate existing businesses within California; or (3) affect the expansion of businesses currently doing business within California. The proposed regulation will not impact the state’s environment. Cost impact on representative private persons or businesses: The Board is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. Significant effect on housing costs: none.

Effect on small businesses: none. The proposed amendment to Rule 1467 does not affect small busi- nesses because horse racing is not a small business un- der Government Code

Section 11342.610. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

Section 11346.5, subdivision (a)(13), the Board has determined that no reasonable alternative it considered, or has oth- erwise been identified and brought to its attention, would be more effective in carrying out the purpose for which the action is proposed, or would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost−effective to

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1377 affected private persons and equally effective in imple- menting the statutory policy or other provision of law. The Board invites interested persons to present state- ments or arguments with respect to alternatives to the proposed regulation at the scheduled hearing or during the written comment period.

CONTACT PERSON Inquiries concerning the substance of the proposed action and requests for copies of the proposed text of the regulation, the initial statement of reasons, the modified text of the regulation, if any, and other information upon which the rulemaking is based should be directed to: Robert Brodnik, Staff Counsel California Horse Racing Board 1010 Hurley Way, Suite 300 Sacramento, CA 95825 Telephone: (916) 263−6025 E−mail: rjbrodnik@chrb.ca.gov If the person named above is not available, interested parties may contact: Andrea Ogden, Manager Policy, Regulations and Legislation Telephone: (916) 263−6033 A VAILABILITY OF INITIAL STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATION The Board will have the entire rulemaking file avail- able for inspection and copying throughout the rule- making process at its offices at the above address.

As of the date this notice is published in the Notice Register, the rulemaking file consists of this notice, the proposed text of the regulation, and the initial statement of rea- sons. Copies of these documents, or any information upon which the rulemaking is based, may be obtained by contacting Robert Brodnik or the alternative contact person at the address, phone number or e−mail address listed above. A V AILABILITY OF MODIFIED TEXT After holding a hearing and considering all timely and relevant comments received, the Board may adopt the proposed regulation substantially as described in this notice.

If modifications are made which are suffi- ciently related to the originally proposed text, the modi- fied text, with changes clearly marked, shall be made available to the public for at least 15 days prior to the date on which the Board adopts the regulation. Requests for copies of any modified regulation should be sent to the attention of Robert Brodnik at the address stated above. The Board will accept written comments on the modified regulation for 15 days after the date on which it is made available.

A V AILABILITY OF STATEMENT OF REASONS Requests for copies of the final statement of reasons, which will be made available after the Board has adopt- ed the proposed regulation in its current or modified form, should be sent to the attention of Robert Brodnik at the address stated above. BOARD WEB ACCESS The Board will have the entire rulemaking file avail- able for inspection throughout the rulemaking process at its website. The rulemaking file consists of the notice, the proposed text of the regulation and the initial state- ment of reasons. The Board’s website address is: www.chrb.ca.gov. TITLE 11.

COMMISSION ON PEACE OFFICER STANDARDS AND TRAINING Notice is hereby given that the Commission on Peace Officer Standards and Training (POST) proposes to amend regulations in Division 2 of Title 11 of the Cali- fornia Code of Regulations as described below in the In- formative Digest. A public hearing is not scheduled. Pursuant to Government Code

Section 11346.8, any in- terested person, or his/her duly authorized representa- tive, may request a public hearing. POST must receive the written request no later than 15 days prior to the close of the public comment period. Public Comments Due October 22, 2018 by 5:00 p.m. Notice is also given that any interested person, or au- thorized representative, may submit written comments relevant to the proposed regulatory action by fax at (916) 227−2801, by email to Scott Loggins, or by letter to: Commission on POST Attention: Scott Loggins 860 Stillwater Road, Suite 100 West Sacramento, CA 95605−1630 AUTHORITY AND REFERENCE This proposal is made pursuant to the authority vest- ed by Penal Code

Section 13503 (authority of the Com- mission on POST) and Penal Code

Section 13506 (POST authority to adopt regulations). This proposal is

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1378 intended to interpret, implement, and make specific Pe- nal Code

Section 13503(e), which authorizes POST to develop and implement programs to increase the effec- tiveness of law enforcement, including programs in- volving training and education courses. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW The Executive Director, or his/her designee, may au- thorize block allocations, not to exceed $25,000 per course, to support training to meet regional needs, based on a pre−approved training needs assessment and course certification, including projected enrollment levels.

The block allocation will cover, up to the autho- rized level, costs associated with presentation of the course, including instructor pay, travel and per diem, meeting room rental, and necessary instructional sup- plies as approved by POST. Responsibility for specific allocation of instructor salaries and presentation fees shall be that of the indi- vidual presenter. Any costs exceeding the amount allo- cated by POST shall be borne by the presenter. Students attending an approved Plan VI (Regional Training) course shall be reimbursed via a Training Re- imbursement Request (TRR) form.

Limitations on stu- dent reimbursement will be in place to incentivize local personnel to attend, based on distance from the training site to the students’ agency headquarters. ANTICIPATED BENEFITS The benefits of the proposed amendments to the regu- lations will increase the efficiency of the state of Cali- fornia in delivering services to stakeholders. Thus, the law enforcement standards are maintained and effective in preserving peace, protection of public health, safety, and welfare in California. There would be no impact that would affect worker safety or the State’s environ- ment.

During the process of developing these regulations and amendments, the Commission on Peace Officer Standards and Training has conducted a search of any similar regulations on this topic and has concluded these regulations are neither inconsistent nor incompat- ible with existing State regulations. ADOPTION OF PROPOSED REGULATIONS Following the public comment period, the Commis- sion may adopt the proposal substantially as set forth without further notice, or the Commission may modify the proposal if such modifications remain sufficiently related to the text as described in the Informative Di- gest.

If the Commission makes changes to the language before the date of adoption, the text of any modified lan- guage, clearly indicated, will be made available at least 15 days before adoption to all persons whose comments were received by POST during the public comment pe- riod and to all persons who request notification from POST of the availability of such changes. A request for the modified text should be addressed to the agency of- ficial designated in this notice. The Commission will accept written comments on the modified text for 15 days after the date the revised text is made available.

ESTIMATE OF ECONOMIC IMPACT Fiscal Impact on Public Agencies Including Costs or Savings to State Agencies or Costs/Savings in Federal Funding to the State: None. Non−Discretionary Costs/Savings to Local Agen- cies: None. Local Mandate: None. Costs to any Local Agency or School District for which Government Code Sections 17500−17630 re- quire reimbursement: None.

Significant Statewide Adverse Economic Impact Di- rectly Affecting California Businesses, Including Small Business: The Commission on Peace Officer Standards and Training has made an initial determination that the amended regulation will not have a significant statewide adverse economic impact directly affecting California businesses, including the ability of Califor- nia businesses to compete with businesses in other states.

The Commission on Peace Officer Standards and Training has found the proposed amendments will not affect California businesses, including small business- es, because the Commission sets selection and training standards for law enforcement, which does not impact California businesses, including small businesses. Cost Impacts on Representative Private Persons or Businesses: The Commission on Peace Officer Stan- dards and Training is not aware of any cost impacts a representative private person or business would neces- sarily incur in reasonable compliance with the proposed action.

Affect on Housing Costs: The Commission on Peace Officer Standards and Training has made an initial de- termination that the proposed regulation would have no effect on housing costs. RESULTS OF ECONOMIC IMPACT ASSESSMENT PER GOV . CODE

SEC. 11346.3(

b) The adoption of the proposed amendments of regula- tions will neither create nor eliminate jobs in the State of California, nor result in the elimination of existing busi- nesses or create or expand businesses in the State of California.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1379 The benefits of the proposed amendments to the regu- lations will increase the efficiency of the state of Cali- fornia in delivering services to stakeholders. Thus, the law enforcement standards are maintained and effective in preserving peace, protection of public health, safety, and welfare in California. There would be no impact that would affect worker safety or the State’s environ- ment. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), the Commission must de- termine that no reasonable alternative it considered, or that has otherwise been identified and brought to the at- tention of the Commission, would be more effective in carrying out the purpose for which the action is pro- posed, would be as effective and less burdensome to af- fected private persons than the proposed action, or would be more cost−effective to affected private per- sons and equally effective in implementing the statuto- ry policy or other provisions of the law.

CONTACT PERSONS Questions regarding this proposed regulatory action may be directed to Scott Loggins, Commission on POST, 860 Stillwater Road, Suite 100, West Sacramen- to, CA 95605−1630 at (916) 227−2807. If unable to reach Scott Loggins, you may contact Heidi Hernandez at (916) 227−2802. TEXT OF PROPOSAL Individuals may request copies of the exact language of the proposed regulations and of the initial statement of reasons, and the information the proposal is based upon from the Commission on POST, 860 Stillwater Road, Suite 100, West Sacramento, CA 95605−1630.

These documents are also located on the POST Website. A V AILABILITY AND LOCATION OF THE RULEMAKING FILE AND THE FINAL STATEMENT OF REASONS The rulemaking file contains all information upon which POST is basing this proposal and is available for public inspection by contacting the person(

s) named above. To request a copy of the Final Statement of Reasons once it has been prepared, submit a written request to the contact person(

s) named above. TITLE 13.

AIR RESOURCES BOARD NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED CALIFORNIA REGULATION AND CERTIFICATION PROCEDURES FOR LIGHT−DUTY ENGINE PACKAGES FOR USE IN NEW LIGHT−DUTY SPECIALLY−PRODUCED MOTOR VEHICLES FOR 2019 AND SUBSEQUENT MODEL YEARS 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 California Regulation and Certification Procedures for Light−Duty Engine Packages for Use In New Light−Duty Specially−Produced Motor Vehicles for 2019 And Subsequent Model Years: DATE: October 25, 2018 TIME: 9:00 a.m.

LOCA TION: California Environmental Protection Agency California Air Resources Board Byron Sher Auditorium 1001 I Street Sacramento, California 95814 This item will be considered at a meeting of the Board, which will commence at 9:00 a.m., October 25, 2018, and may continue at 8:30 a.m. on October 26, 2018. Please consult the agenda for the hearing, which will be available at least ten days before October 25, 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 September 7, 2018. Written comments not physically submitted at the hear- ing must be submitted on or after September 7, 2018, and received no later than 5:00 p.m. on October 22, 2018.

CARB requests that when possible written and email statements be filed at least ten days before the hearing to give CARB staff and Board members addi- tional 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

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1380 any suggestions for modification of the proposed regu- latory action. Comments submitted 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, 43000, 43100, 43101, 43102, 43104, and 43105.

This action is proposed to implement, interpret, and make specific sections 39002, 39003, 43000, 43100, 43101, 43102, 43104, 43105, 43106, 43205, California Health and Safety Code, and 580, Vehicle Code. INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW (GOV . CODE, § 11346.5, subd. (a)(3)) Sections Affected: Proposed adoption of California Code of Regulations, title 13, new sections 2209, 2209.1, 2209.2, 2209.3, 2209.4, 2209.5, 2209.6, 2209.7, 2209.8, 2209.9, and 2209.10. Documents Incorporated by Reference (Cal.

Code Regs., tit. 1, § 20, subd. (c)(3)): The following documents, test methods, and model would be incorporated in the regulation by reference: “California 2015 and Subsequent Model Criteria Pol- lutant Exhaust Emission Standards and Test Procedures and 2017 and Subsequent Model Greenhouse Gas Ex- haust Emission Standards and Test Procedures for Pas- senger Cars, Light−Duty Trucks, and Medium−Duty Vehicles” as last amended September 2, 2015. “California Evaporative Emission Standards and Test Procedures for 2001 and Subsequent Model Motor Vehicles,” last amended September 2, 2015. “California Exhaust Emission Standards and Test Procedures for 2018 and Subsequent Model Zero− Emission V ehicles and Hybrid Electric Vehicles, in the Passenger Car, Light−Duty Truck and Medium−Duty Vehicle Classes,” last amended September 3, 2015. “California Non−Methane Organic Gas Test Proce- dures for 2017 and Subsequent Model Year Vehicles,” adopted September 2, 2015. “California Certification Procedures for Light−Duty Engine Packages for Use In Light−Duty Specially−Pro- duced Motor Vehicles for 2019 and Subsequent Model Years,” set forth as Appendix B of the Initial Statement of Reasons.

Title 40, Code of Federal Regulations,

section 86.1827−01, last amended May 7, 2010. Title 40 Code of Federal Regulations,

section 86.1821−01, last amended April 28, 2014. Title 40, Code of Federal Regulations,

section 86.1828−01, last amended April 28, 2014. Title 40 Code of Federal Regulations,

section 1051.130, last amended July 13, 2005. Background and Effect of the Proposed Regulatory Action: Overview: CARB staff is proposing the California Certification Procedures for Light−Duty Engine Packages for Use in New Light−Duty Specially−Produced Motor Vehicles for 2019 and Subsequent Model Years (proposed regu- lation) to create a process for the certification of a repli- ca car (referred to as a specially−produced motor vehi- cle or SPMV) in California.

A SPMV resembles the body of a motor vehicle that had been commercially manufactured for sale not less than 25 years ago, such as replica versions of the Shelby Cobras and Ford GT40s. The proposed regulation provides two certification paths, one for engine manufacturers, and one for SPMV manufacturers. First, engine manufacturers could certify a light−duty engine package intended for use in an SPMV complete with emission control systems (ECS), on−board diag- nostics (OBD) installation instructions, and warranty.

Second, SPMV manufacturers could purchase and in- stall a certified engine package into a SPMV , and quali- fy for a CARB Executive Order (EO), which would en- able them to sell those SPMVs to end users in Califor- nia. This new certification process for SPMVs would ease the burden on the manufacturers for these relative- ly low volume new vehicles. The proposed regulation would require engine pack- ages to meet current Low Emission Vehicle (LEV II and LEV III) exhaust and evaporative emissions standards. Staff proposes that the OBD system included with the engine package must comply with

section 1968.2, title 13, CCR for the model year of the certified engine pack-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1381 age. The proposal includes flexibility on the evapora- tive system leak monitoring requirements. The pro- posed regulation would also allow CARB to issue an EO to the SPMV manufacturer for each production year SPMVs are built for sale in California. The SPMV man- ufacturer would need to meet certain requirements in order to receive a CARB EO and provide a warranty for the engine installation and the supplied fuel system.

Objectives and Benefits of the Proposed Regulatory Action: The objective of the proposed regulation is to create a path for manufacturers to sell low emitting replica cars in California as new vehicles. This proposed regulation achieves this by allowing engine manufacturers to certi- fy engine packages that meet California’s current LEV requirements. The proposed regulation also allows CARB to issue an EO for SPMVs that use certified en- gine packages.

The proposed regulation provides the flexibility needed for the unique characteristics of SPMVs, while ensuring new SPMVs meet the key emissions standards applicable to other new production vehicles. There are no quantified benefits to the protection of public health and safety or to worker safety. However, CARB staff expects some SPMV sales to displace higher−emitting, non−California certified replica vehi- cles that are brought into and appealed in California.

Comparable Federal Regulations: On December 4, 2015, United States (U.S.) lawmak- ers enacted legislation allowing SPMV manufacturers to sell up to 325 SPMVs per manufacturer per year, starting in 2017 (H.R. 22, the Fixing America’s Surface Transportation Act,

section 24405). While these vehi- cles do not have to meet crash safety standards or be in- cluded in any applicable state’s inspection and mainte- nance program, they must meet current Clean Air Act standards for the model year in which they are produced by using a motor vehicle engine from a motor vehicle that is covered by a certificate of conformity or a CARB EO for the current model year the SPMV is produced. After H.R. 22 passed, the National Highway Traffic Safety Administration (NHTSA) proposed a process to ensure SPMV manufacturers met minimum qualifica- tions to sell vehicles.

Staff anticipates that NHTSA will verify that a SPMV manufacturer qualifies to produce SPMVs and that the SPMV resembles the body of an- other motor vehicle that was produced at least 25 years ago. NHTSA will also review annual production re- ports submitted by the SPMV manufacturer along with other required information. Additionally, SPMVs will be manufactured under a license agreement for the intellectual property rights for the replicated vehicle from the original manufacturer or its current owner, successor or assignee. 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- lation, CARB conducted a search of any similar regula- tions on this topic and concluded these regulations are neither inconsistent nor incompatible with existing state regulations. STATEMENT REGARDING WHETHER REGULATION IS MANDATED BY FEDERAL LAW OR REGULATIONS (Gov. Code, §§ 11346.2, subd. (c), 11346.9) This regulation is not mandated by federal law or regulation. 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 regulation are pre- sented below.

Under Government Code sections 11346.5, subdivi- sion (a)(5) and 11346.5, subdivision (a)(6), the Execu- tive Officer has determined that the proposed regulation would not create costs or savings to any State agency other than CARB, or in federal funding to the State, costs or mandate to any local agency or school district, whether or not reimbursable by the State under Govern- ment Code, title 2, division 4,

part 7 (commencing with

section 17500), or other nondiscretionary cost or sav- ings to State or local agencies. CARB staff believe that only one or two established light−duty vehicle manufacturers may certify engine packages for SPMVs and up to ten SPMV vehicle man- ufacturers may certify SPMVs. This is the highest level of interest anticipated based on discussions with indus- try and the Specialty Equipment Market Association (SEMA). As a comparison, in 2012, CARB adopted similar regulations to certify engine packages for spe- cially constructed vehicles (kit cars).

Only one estab- lished light−duty vehicle manufacturer certified an en- gine package for specially constructed vehicles. CARB staff believe the number of new manufacturers and the associated added workload may be more similar to spe- cially constructed vehicles, and thus can be absorbed with current resources.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1382 Housing Costs (Gov. Code, § 11346.5, subd. (a)(12)): The Executive Officer has also made the initial deter- mination that the proposed regulation will not have a significant effect on housing costs. Consideration of Significant Statewide Adverse Economic Impact Directly Affecting Business, 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 regulation would not have a sig- nificant statewide adverse economic impact directly af- fecting businesses, including the ability of California 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)): Effect on Jobs/Businesses: The Executive Officer has determined that the pro- posed regulation would not affect the creation or elimi- nation of jobs within the State of California, the creation of new businesses or elimination of existing businesses within the State of California, or the expansion of busi- nesses currently doing business within the State of Cali- fornia. A detailed assessment of the economic impacts of the proposed regulation can be found in the Econom- ic Impact Analysis in the Initial Statement of Reasons (ISOR).

Benefits of the Proposed Regulation: The primary objectives of the proposed regulation are to align with the federal Fixing America’s Surface Transportation Act (H.R. 22, 2014), and to create a process for SPMV manufacturers to sell low−emitting replica cars in California. This is achieved by allowing engine manufacturers to certify engine packages that meet California’s current LEV standards for new vehi- cles, which will be made available for SPMV manufac- turers to install into replica cars. The proposal also al- lows CARB to issue an EO to SPMV manufacturers for vehicles with a certified engine package.

Staff’s pro- posal provides the necessary flexibility needed for the unique characteristics of SPMVs, while ensuring new SPMVs are as low−emitting as new production vehicles. A

summary of these benefits is provided in the “Ob- jectives and Benefits” subsection of the Informative Di- gest of Proposed Action and Policy Statement Over- view Pursuant to Government Code 11346.5(a)(3). Cost Impacts on Representative Private Persons or Businesses (Gov. Code, § 11346.5, subd. (a)(9)): In developing this proposed regulation, staff evaluat- ed the potential economic impacts on representative private persons or businesses. Staff is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compli- ance with the proposed regulation. Effect on Small Business (Cal. Code Regs., tit. 1, § 4, subds. (

a) and (b)): The Executive Officer has also determined under California Code of Regulations, title 1,

section 4, that the proposal would not adversely affect small business- es because it is an optional certification procedure for new light−duty engine packages for use in SPMVs, as well as optional certification procedures for SPMVs. Consideration of Alternatives (Gov.

Code, § 11346.5, subd. (a)(13)): Before taking final action on the proposed regulation, the Board must determine that no reasonable alternative considered by the Board, or that has otherwise been identified and brought to the attention of the Board, would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the staff’s proposal, or would be more cost−effective to af- fected private persons and equally effective in imple- menting the statutory policy or other provisions of law. See

section X of the ISOR for more detail regarding the alternatives considered for this proposed regulation. ENVIRONMENTAL ANALYSIS CARB, as the lead agency for the proposed regula- tion, has prepared an environmental analysis (EA) un- der its certified regulatory program (California Code of Regulations, title 17, sections 60000 through 60008) to comply with the requirements of the California Envi- ronmental Quality Act (CEQA; Public Resources Code

section 21080.5). The EA determined that the proposed regulation would not result in any significant adverse impacts on the environment. The basis for reaching this conclusion is provided in

Chapter VII of the ISOR. Written comments on the EA will be accepted during a 45−day public review period starting on September 7, 2018, and ending at 5 p.m. on October 22, 2018. SPECIAL ACCOMMODATION REQUEST Consistent with California Government Code Sec- tion 7296.2, special accommodation or language needs may be provided for any of the following: • An interpreter to be available at the hearing; • Documents made available in an alternate format or another language; and • A disability−related reasonable accommodation. To request these special accommodations or lan- guage needs, please contact the Clerk of the Board at (916) 322−5594 or by facsimile at (916) 322−3928 as

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1383 soon as possible, but no later than 10 business days be- fore the scheduled Board hearing. TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service. Consecuente con la sección 7296.2 del Código de Gobierno de California, una acomodación especial o necesidades lingüísticas pueden ser suministradas para cualquiera de los siguientes: • Un interpréte que esté disponible en la audiencia; • Documentos disponibles en un formato alterno u otro idioma; y • Una acomodación razonable relacionados con una incapacidad.

Para solicitar estas comodidades especiales o necesi- dades de otro idioma, por favor llame a la oficina del Consejo al (916) 322−5594 o envié un fax a (916) 322−3928 lo más pronto posible, pero no menos de 10 días de trabajo antes del día programado para la audien- cia del Consejo. TTY/TDD/Personas que necesiten este servicio pueden marcar el 711 para el Servicio de Re- transmisión de Mensajes de California.

AGENCY CONTACT PERSONS Inquiries concerning the substance of the proposed regulation may be directed to the agency representative Richard Muradliyan, Air Resources Engineer, at (626) 575−6798 or (designated back−up contact) Tony Marti- no, Aftermarket Parts Manager, at (626) 575−6848. A V AILABILITY OF DOCUMENTS CARB staff has prepared a Staff Report: Initial State- ment of Reasons (ISOR) for the proposed regulatory ac- tion, which includes a

summary of the economic and environmental impacts of the proposal. The report is en- titled: Initial Statement of Reasons for Public Hearing To Consider California Certification Procedures For Light−Duty Engine Packages For Use In New Light− Duty Specially−Produced Motor Vehicles For 2019 And Subsequent Model Years.

Copies of the ISOR and the full text of the proposed regulatory language may be accessed on CARB’s web- site listed below or may be obtained from the Public In- formation Office, California Air Resources Board, 1001 I Street, Visitors and Environmental Services Center, First Floor, Sacramento, California, 95814, on or after September 4, 2018. Further, the agency representative to whom non−sub- stantive inquiries concerning the proposed administra- tive action may be directed is Bradley Bechtold, Regu- lations Coordinator, at (916) 322−6533.

The Board staff has compiled a record for this rulemaking action, which includes all the information upon which the proposal is based. This material is available for inspection upon re- quest to the contact persons. HEARING PROCEDURES The public hearing will be conducted in accordance with the California Administrative Procedure Act, Government Code, title 2, division 3,

part 1,

chapter 3.5 (commencing with

section 11340). Following the public hearing, the Board may take ac- tion to approve for adoption the regulatory language as originally proposed, or with non−substantial or gram- matical modifications. The Board may also approve for adoption proposed regulatory language with other modifications if the text as modified is sufficiently re- lated to the originally proposed text that the public was adequately placed on notice and that the regulatory lan- guage as modified could result from the proposed regu- lation.

If this occurs, the full regulatory text, with the modifications clearly indicated, will be made available to the public, for written comment, at least 15 days be- fore final adoption. The public may request a copy of the modified regu- latory text from CARB’s Public Information Office, Air Resources Board, 1001 I Street, Visitors and Environ- mental Services Center, First Floor, Sacramento, Cali- fornia, 95814.

FINAL STATEMENT OF REASONS A V AILABILITY Upon its completion, the Final Statement of Reasons (FSOR) will be available and copies may be requested from the agency contact persons in this notice, or may be accessed on CARB’s website listed below. INTERNET ACCESS This notice, the ISOR and all subsequent regulatory documents, including the FSOR, when completed, are available on CARB’s website for this rulemaking at https://www.arb.ca.gov/regact/2018/spmv2018/ spmv2018.htm .

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1384 TITLE 13. AIR RESOURCES BOARD NOTICE OF PUBLIC HEARING TO CONSIDER THE PROPOSED AMENDMENTS TO CALIFORNIA SPECIFICATIONS FOR FILL PIPES AND OPENINGS OF MOTOR VEHICLE FUEL TANKS 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 amendments to California Specifications for Fill Pipes and Openings of Motor Vehicle Fuel Tanks. DATE: October 25, 2018 TIME: 9:00 a.m.

LOCA TION: California Environmental Protection Agency California Air Resources Board Byron Sher Auditorium 1001 I Street Sacramento, California 95814 This item will be considered at a meeting of the Board, which will commence at 9:00 a.m., October 25, 2018, and may continue at 8:30 a.m. on October 26, 2018. Please consult the agenda for the hearing, which will be available at least ten days before October 25, 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 September 7, 2018. Written comments not physically submitted at the hear- ing must be submitted on or after September 7, 2018, and received no later than 5:00 p.m. on October 22, 2018.

CARB requests that when possible, written and email statements be filed at least ten days before the hearing to give CARB staff and Board members addi- tional time to consider each comment. The Board also encourages members of the public to bring to the atten- tion of staff in advance of the hearing any suggestions for modification of the proposed regulatory action.

Comments submitted 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,

section 41954. This action is proposed to implement, interpret, and make specific sections 41954(a). INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW (GOV . CODE, § 11346.5, subd. (a)(3)) Sections Affected: Proposed amendments to Specifi- cations for Fill Pipes and Openings of 2015 and Subse- quent Model Motor Vehicle Fuel Tanks, last amended: [INSERT DATE OF AMENDMENT], which is incor- porated by reference in the California Code of Regula- tions, Title 13,

section 2235. Background and Effect of the Proposed Regulatory Action: CARB staff is proposing amendments to the Fill Pipes Specifications to help ensure new motor vehicle fill pipes continue to be compatible and form a good seal with Phase II recovery nozzles that are certified for use at California gasoline stations, therefore reducing overpressure. The original Fill Pipe specifications were adopted in 1976, which primarily defined acceptable dimensions for interfacing with vapor recovery noz- zles. Subsequent changes were made to introduce per- formance specifications to better ensure problem−free refueling.

The new amendments propose adding a new performance leak standard and a bench test procedure. Minimizing leaks between the motor vehicle fill pipe and nozzle helps ensure On−board Refueling Vapor Re- covery (ORVR) equipped vehicles are identified during

refueling. This identification is necessary to reduce air ingestion at the nozzle, which helps reduce pressure− driven emissions caused by evaporation of gasoline within the gasoline storage tank during winter months. Since the Fill Pipe specifications were first adopted, there have been changes to both vehicles and the noz- zles over time. Newer vehicles capture vapor from refu- eling by having an ORVR system. This was phased in for new light−duty vehicles between 1998 and 2006.

In addition, CARB implemented Phase II Enhanced Vapor Recovery (EVR) systems at gasoline stations starting in 2001 for underground storage tanks (UST), and 2009 for above−ground storage tanks (AST). These actions, done separately by the Board, would reduce emissions from the vehicle side by adopting ORVR systems, and for those vehicles without ORVR, Phase II systems would capture and contain gasoline emissions. The Phase II EVR systems are certified to capture and con- tain at least 95 percent of available vapor generated dur- ing refueling.

The performance leak standard will quantify an al- lowable leak rate between the fill pipe face and the noz- zle boot. This is necessary as new capless fill pipe de- signs continue to be introduced by multiple manufac- turers in California. Though a zero leak rate would be ideal, it would be hard to achieve with some of the de- signs available on the market today. A performance leak standard gives manufacturers flexibility in the design they choose to meet the standard.

This proposal speci- fies a leak standard being phased in starting in the 2022 model year and being fully phased in 2024 model year and establishes a bench test procedure to measure the leak rate. Staff developed the bench leak test procedure by working with the vehicle and nozzle manufacturers. In addition, to prevent future increases in overpres- sure at California gasoline stations, this proposal modi- fies existing fill pipe dimensional requirements. These design changes only apply when an auto manufacturer is changing the fill pipe head design on new model year 2024 and subsequent vehicles.

From talks with manu- facturers, staff understands that the fill pipe heads de- signs do not change often. Some designs have been around for decades. This provides flexibility, since the cost of redesigning and testing the fill pipe would al- ready be incurred by the manufacturer during a planned redesign. Objectives and Benefits of the Proposed Regulatory Action: The proposed amendments are for a new perfor- mance leak standard for fill pipes in new vehicles. The amendments are needed to improve motor vehicle fill pipe compatibility with nozzles.

This compatibility is necessary to reduce air ingestion at the nozzle, which will help reduce pressure driven emissions (overpres- sure emissions) caused by evaporation of gasoline with- in the gasoline dispensing facility (GDF) storage tank headspace. Unexpected pressure driven emissions cause GDF vapor recovery systems to not achieve the performance standards and emission reductions antici- pated when EVR regulations were adopted. The fill pipe amendments will reduce misidentifica- tion rates with ORVR vehicles and ensure compatibility with newer EVR and Enhanced Conventional (ECO) nozzle spout.

Emission reductions will result from min- imizing air ingestion by vented fill pipe designs by en- abling a better seal between the fill pipe of a vehicle with an ORVR system and the nozzle’s vapor collection bellows. Approximately 52 percent of California GDFs are equipped with the vacuum assist system.

CARB staff estimates that compliance with the pro- posed amendments will improve air quality by reducing gasoline vapor (aka reactive organic gases, or ROG) emissions, which also contain benzene, by about 0.63 tons per day during winter months (typically November through February) on a day with average vapor concen- tration. The proposed fill pipe amendments and the pro- posed nozzle amendments are expected to yield emis- sion reductions up to 2.2 tons per day (TPD) in 2030 on a day with maximum vapor concentration.

The pro- posed amendments are projected to reach the maximum potential emissions reductions that can result from im- proving the fill pipe and nozzle interface due to the me- chanics of gas station overpressure emissions. There- fore, further fill pipe improvements are not expected to yield additional reductions in emissions. Reducing ROG emissions is an integral part of Cali- fornia reaching its goal of attaining federal ozone stan- dards.

Reducing benzene emissions is critical for pro- tecting the health of people who live and work near gasoline dispensing facilities and people who own and fuel ORVR equipped vehicles with fill pipes that do not form a good seal with the nozzle. Fill pipes that meet the performance leaks standard and future dimensional re- quirements will also enable the automotive industry to more effectively design compatible fill pipes for future vehicle models.

In addition, reducing overpressure con- ditions will reduce the frequency of GDF In−Station Di- agnostic (ISD) system overpressure alarms, which will reduce the frequency and cost of service calls for many GDFs with vacuum−assist vapor recovery systems. CARB staff’s proposal was developed in conjunction with an extensive public process. Staff informed, in- volved, and updated public stakeholders on staff’s progress developing the proposed amendments. Staff held public workshops and had other meetings with in- terested persons during the development of the pro- posed regulatory amendments.

These informal pre− rulemaking discussions provided staff with useful in-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1386 formation that they considered during development of the regulatory amendments that are now being pro- posed for formal public comment. Between 2012 and 2017, CARB staff held eleven public workshops in northern and southern California about GDF storage tank overpressure problems, study designs and results, and potential solutions.

These workshops engaged rep- resentatives from nozzle, fill pipe, and automotive man- ufacturers; GDF owners and operators; service contrac- tors and consultants; petroleum refineries and distribu- tors; air districts; Tribes; environmental consultants; farm bureaus; and air quality agencies from outside of California.

In addition, staff created a public webpage where related workshop materials and technical sup- port documents were posted to keep stakeholders up to date on the latest developments in the pre−rulemaking process and distributed announcements and workshop materials through the CARB list serves that, based on individual subscribers to the list serves, reach more than 4,000 individuals. Staff sent out multiple emails provid- ing announcements to upcoming workshops, a descrip- tion of the proposed amendments, and contact informa- tion for relevant staff for both the fill pipe and nozzle proposed amendments.

Further, over the last two years, CARB staff partici- pated in over a dozen meetings with the Society of Au- tomotive Engineers (SAE) Fuel Systems J285/J1140 Task Force (SAE Task Force), which is comprised of nozzle, vehicle, and fill pipe manufacturers. The SAE Task Force is charged with developing and testing new dimension specifications to standardize the vapor re- covery nozzle and fill−pipe interface to improve com- patibility.

The nozzle dimensions included in CARB staff’s proposed amendments are the result of extensive deliberations of nozzle, vehicle, and fill pipe manufac- turers who participated in the SAE Task Force. All the proposed dimensions have a range of values, rather than a single value, to increase flexibility for nozzle manu- facturers while at the same time providing the con- straint needed for the fill pipe manufacturers. A detailed explanation on benefits to the protection of public health and safety, worker safety, and the environ- ment can be found below.

Comparable Federal Regulations: There are no federal regulations or programs directly comparable to California Specifications for Fill Pipes and Openings of Motor Vehicle Fuel Tanks. Califor- nia’s existing Fill Pipe Specifications already exceed federal requirements. 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 these regula- tions are neither inconsistent nor incompatible with ex- isting state regulations. DISCLOSURE REGARDING THE PROPOSED REGULATION 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.

Fiscal Impact/Local Mandate Determination Regarding the Proposed Action (Gov. Code, § 11346.5, subds. (a)(5) & (6)): Under Government Code sections 11346.5, subdivi- sion (a)(5), and 11346.5, subdivision (a)(6), the Execu- tive Officer has determined that the proposed regulato- ry action will create minor costs to a State agency, but will not affect federal funding to the State. The new modified fill pipe reports may require addi- tional time for CARB staff to review. This additional work load is anticipated to be absorbable and can be car- ried out by the current staff.

The proposed action will not affect costs to or mandate any local agency or school district, whether or not reimbursable by the State under Government Code, title 2, division 4,

part 7 (commenc- ing with

section 17500), and will not result in other nondiscretionary cost or savings to State or local agen- cies. Housing Costs (Gov. Code, § 11346.5, subd. (a)(12)): The Executive Officer has also made the initial deter- mination that the proposed regulatory action will not have a significant effect on housing costs. Significant Statewide Adverse Economic Impact Directly Affecting Business, 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.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1387 Results of the Economic Impact Analysis/ Assessment (Gov. Code, § 11346.5, subd. (a)(10)): A detailed assessment of the economic impacts of the proposed regulatory action can be found in

Chapter VIII of the Initial Statement of Reasons (ISOR). NON−MAJOR REGULATION: STATEMENT OF THE RESULTS OF THE ECONOMIC IMPACT ASSESSMENT (EIA) Benefits of the Regulation to the Health and Welfare of California Residents, Worker Safety, and the State’ s Environment: The objective of the proposed regulatory action is to minimize air leakage in vented fill pipes. CARB staff estimates that compliance with the proposed amend- ments will result in a reduction of ROG emissions, which also contain benzene, by about 0.63 tons per day during winter months using average vapor concentra- tion.

Reducing ROG emissions will benefit the health and welfare of California residents by reducing ambient ground level ozone and benzene exposure. Although the regulation will not directly affect worker safety, workers at GDFs with assist vapor recovery systems may experience reduced occupational exposure to ben- zene after the improved fill pipes enter the fleet. Reduc- ing ambient ground level ozone also helps to reduce smog, which is a benefit for the state’s environment.

Effect on Jobs/Businesses: The Executive Officer has determined that the pro- posed regulatory action would not affect the creation or elimination of jobs within the State of California, the creation of new businesses or elimination of existing businesses within the State of California, or the expan- sion of businesses currently doing business within the State of California. A detailed assessment of the eco- nomic impacts of the proposed regulatory action can be found in the Economic Impact Assessment in the ISOR.

Benefits of the Proposed Regulation: The objective of the proposed regulatory action is to minimize air leakage from vented fill pipes by requiring a performance leak standard, which would ensure ex- cess air is not ingested by the vapor recovery nozzle and thus reduce gasoline vapor emissions. In addition, to prevent future increases in overpressure at California gasoline stations, this proposal modifies existing fill pipe dimensional requirements, applying when an auto manufacturer is changing a fill pipe design. A

summary of these benefits is provided in this No- tice. Please refer to “Objectives and Benefits” section, under the Informative Digest of Proposed Action and Policy Statement Overview above. Business Report (Gov. Code, §§ 11346.5, subd. (a)(11); 11346.3, subd. (d)): In accordance with Government Code sections 11346.5, subdivisions (a)(11) and 11346.3, subdivision (d), the Executive Officer finds the reporting require- ments of the proposed regulatory action which apply to businesses are necessary for the health, safety, and wel- fare of the people of the State of California.

Cost Impacts on Representative Private Persons or Businesses (Gov. Code, § 11346.5, subd. (a)(9)): In developing this regulatory proposal, CARB staff evaluated the potential economic impacts on represen- tative private persons or businesses. CARB staff is not aware of any cost impacts that a representative private person would necessarily incur in reasonable compli- ance with the proposed action.

Staff expects negligible cost to industry, since the proposed performance leak standard and bench leak test uses equipment that auto manufacturers and fill pipe suppliers typically have on hand, and the test is relative- ly simple and is not time intensive to perform. Also, the bench leak test is a straightforward and standard method for manufacturers to gauge if fill pipes are de- signed with minimal leak size in order to not adversely impact overpressure at gas stations using the assist style nozzle. Industry had previously asked CARB for guid- ance in the form of a test verifying fill pipe leak perfor- mance.

Therefore staff expects this proposed test will save industry time and hassle by providing a straight- forward and standard verification method. Direct costs related to the proposed amendments can be broken down for testing into two categories: equip- ment and testing personnel. Additionally staff estimates a cost for reporting during certification. CARB staff an- ticipates the lifetime of the proposed regulatory amend- ments to be three years, from 2022 through 2024 when the regulation is fully implemented.

The total cost over 3 years of implementing this regulation is $174,500 to the auto industry and suppliers. Since fill pipe designs do no change much over time, the testing data can be carried over to future model years. Additional testing would only be required when there are new fill pipe designs. The proposal for dimensional changes to the current fill pipe specification are limited to cases where a manu- facturer is already changing a fill pipe design.

It is as- sumed the cost of redesigning and testing the fill pipe would already be incurred by the manufacturer during a planned redesign and there are no additional costs as a result of the proposed amendments. Effect on Small Business (Cal. Code Regs., tit. 1, § 4, subds. (

a) and (b)): Staff expects the direct cost to a small business would be about $5,000 for initial equipment costs plus annual

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1388 ongoing cost of around $500, including $253 for bench testing and $250 for reporting cost for three years. Consideration of Alternatives (Gov.

Code, § 11346.5, subd. (a)(13)): Before taking final action on the proposed regulatory action, the Board must determine that no reasonable al- ternative considered by the Board, or that has otherwise been identified and brought to the attention of the Board, would be more effective in carrying out the pur- pose for which the action is proposed, would be as ef- fective and less burdensome to affected private persons than the proposed action, or would be more cost− effective to affected private persons and equally effec- tive implementing the statutory policy or other provi- sions of law.

CARB staff considered reasonable alterna- tives to the proposed amendments, as described in

Chapter IX of the ISOR. ENVIRONMENTAL ANALYSIS CARB, as the lead agency under the California Envi- ronmental Quality Act (CEQA), has reviewed the pro- posed regulatory amendments and concluded that the proposed action is exempt pursuant to CEQA Guide- lines §15308, as this is an action taken by a regulatory agency for the protection of the environment. A brief explanation of the basis for reaching this conclusion is included in

Chapter VII of the ISOR. SPECIAL ACCOMMODATION REQUEST Consistent with California Government Code Sec- tion 7296.2, special accommodation or language needs may be provided for any of the following: • An interpreter to be available at the hearing; • Documents made available in an alternate format or another language; and • A disability−related reasonable accommodation. To request these special accommodations or lan- guage needs, please contact the Clerk of the Board at (916) 322−5594 or by facsimile at (916) 322−3928 as soon as possible, but no later than 10 business days be- fore the scheduled Board hearing.

TTY/TDD/Speech to Speech users may dial 711 for the California Relay Ser- vice. Consecuente con la sección 7296.2 del Código de Gobierno de California, una acomodación especial o necesidades lingüísticas pueden ser suministradas para cualquiera de los siguientes: • Un interpréte que esté disponible en la audiencia; • Documentos disponibles en un formato alterno u otro idioma; y • Una acomodación razonable relacionados con una incapacidad.

Para solicitar estas comodidades especiales o necesi- dades de otro idioma, por favor llame a la oficina del Consejo al (916) 322−5594 o envié un fax a (916) 322−3928 lo más pronto posible, pero no menos de 10 días de trabajo antes del día programado para la audien- cia del Consejo. TTY/TDD/Personas que necesiten este servicio pueden marcar el 711 para el Servicio de Re- transmisión de Mensajes de California.

AGENCY CONTACT PERSONS Inquiries concerning the substance of the proposed regulatory action may be directed to the agency repre- sentative, Jason Gordon, Air Resources Engineer, Ad- vanced Clean Cars Regulations Section, at (626) 575−7068 or (designated back−up contact) Shobna Sahni, Manager, Advanced Clean Cars Regulations Section, at (626) 450−6104. A V AILABILITY OF DOCUMENTS CARB staff has prepared a Staff Report: Initial State- ment of Reasons (ISOR) for the proposed regulatory ac- tion, which includes a

summary of the economic and environmental impacts of the proposal. The report is en- titled: Staff Report: Initial Statement of Reasons — Public Hearing to Consider the Proposed Amendments to California Specifications for Fill Pipes and Open- ings of Motor Vehicle Fuel Tanks.

Copies of the ISOR and the full text of the proposed regulatory language, in underline and strikeout format to allow for comparison with the existing regulations, may be accessed on CARB’s website listed below, or may be obtained from the Public Information Office, California Air Resources Board, 1001 I Street, Visitors and Environmental Services Center, First Floor, Sacra- mento, California, 95814, on or afer September 4, 2018.

Further, the agency representative to whom nonsub- stantive inquiries concerning the proposed administra- tive action may be directed is Bradley Bechtold, Regu- lations Coordinator, (916) 322−6533. CARB staff has compiled a record for this rulemaking action, which in- cludes all the information upon which the proposal is based. This material is available for inspection upon re- quest to the contact persons. HEARING PROCEDURES The public hearing will be conducted in accordance with the California Administrative Procedure Act, Government Code, title 2, division 3,

part 1,

chapter 3.5 (commencing with

section 11340). Following the public hearing, the Board may take ac- tion to approve for adoption the regulatory language as

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1389 originally proposed, or with non−substantial or gram- matical modifications. The Board may also approve for adoption the proposed regulatory language with other modifications if the text as modified is sufficiently re- lated to the originally proposed text that the public was adequately placed on notice and that the regulatory lan- guage as modified could result from the proposed regu- latory action.

If this occurs, the full regulatory text, with the modifications clearly indicated, will be made avail- able to the public, for written comment, at least 15 days before final adoption. The public may request a copy of the modified regu- latory text from CARB’s Public Information Office, Air Resources Board, 1001 I Street, Visitors and Environ- mental Services Center, First Floor, Sacramento, Cali- fornia, 95814.

FINAL STATEMENT OF REASONS A V AILABILITY Upon its completion, the Final Statement of Reasons (FSOR) will be available and copies may be requested from the agency contact persons in this Notice, or may be accessed on CARB’s website listed below. INTERNET ACCESS This notice, the ISOR and all subsequent regulatory documents, including the FSOR, when completed, are available on CARB’s website for this rulemaking at http://www.arb.ca.gov/regact/2018/fillpipe2018/ fillpipe2018.htm. TITLE 15.

DEPARTMENT OF CORRECTIONS AND REHABILITATION NOTICE IS HEREBY GIVEN that the Secretary of the California Department of Corrections and Rehabili- tation (CDCR or Department), proposes to amend Sec- tion 3294.5 of California Code of Regulations (CCR), Title 15, Division 3,

Chapter 1, regarding Inmate and Parolee Name Change. PUBLIC HEARING Date and Time: October 29, 2018 — 9:00 a.m. to 10:00 a.m. Place: Department of Corrections and Rehabilitation Conference Room 100N 1515 S Street — North Building Sacramento, CA 95811 Purpose: To receive comments about this action. PUBLIC COMMENT PERIOD The public comment period begins September 7, 2018 and closes on October 29, 2018 at 5:00 p.m. Any person may submit written comments by mail ad- dressed to the primary contact person listed below, or by email to rpmb@cdcr.ca.gov, before the close of the comment period.

For questions regarding the subject matter of the regulations, call the program contact per- son listed below. CONTACT PERSONS Primary Contact R. Ruiz Telephone: (916) 445−2244 Regulation and Policy Management Branch P.O. Box 942883 Sacramento, CA 94283−0001 Back−Up Y. Sun Telephone: (916) 445−2269 Regulation and Policy Management Branch P.O. Box 942883 Sacramento, CA 94283−0001 Program Contact T. Tyler Telephone: (916) 323−1029 Division of Adult Institutions AUTHORITY AND REFERENCE Government Code

Section 12838.5 provides that commencing July 1, 2005, CDCR succeeds to, and is vested with, all the powers, functions, duties, responsi- bilities, obligations, liabilities, and jurisdiction of abol- ished predecessor entities, such as: Department of Cor- rections, Department of the Youth Authority, and Board of Corrections. Penal Code (PC)

Section 5000 provides that com- mencing July 1, 2005, any reference to Department of Corrections in this or any code, refers to the CDCR, Di- vision of Adult Operations. PC

Section 5050 provides that commencing July 1, 2005, any reference to the Director of Corrections in this or any other code, refers to the Secretary of the CDCR. As of that date, the office of the Director of Cor- rections is abolished. PC

Section 5054 provides that commencing July 1, 2005, the supervision, management, and control of the

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1390 State prisons, and the responsibility for the care, cus- tody, treatment, training, discipline, and employment of persons confined therein are vested in the Secretary of the CDCR. PC

Section 5055 provides that commencing July 1, 2005, all powers and duties previously granted to and imposed upon the Department of Corrections shall be exercised by the Secretary of the CDCR. PC

Section 5058 authorizes the Director to prescribe and amend rules and regulations for the administration of prisons and for the administration of the parole of persons. PC

Section 5058.3 authorizes the Director to certify in a written statement filed with Office of Administra- tive Law that operational needs of the Department re- quire adoption, amendment, or repeal of a regulation on an emergency basis. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Existing law in

section 1279.5(

b) of the Code of Civil Procedure, and regulations in Title 15, Division 3, sec- tion 3294.5, prohibits a person under the jurisdiction of CDCR from filing a petition for a change of name un- less permitted by the Secretary of the CDCR, Existing law also requires the court to deny the petition for a name change unless written approval is received from the Department. Senate Bill (SB) 310 (Chapter 856, Statutes of 2017), which was signed into law in October 2017, amends the Code of Civil Procedure 1279.5 regarding name and gender changes for inmates in State prisons or county jails.

SB 310 provides that persons under the jurisdic- tion of the Department no longer need to obtain ap- proval from the Department before submitting a peti- tion to the court for legal name changes. The amended statute goes into effect on September 1, 2018, and the proposed regulations establish proce- dures for Department staff and persons under the juris- diction of the Department to meet the requirements of the amended statute. This action provides the following: • Adds a reference to parolees in the title of CCR

Section 3294.5 for clarity to specify that the regulations apply to both inmates and parolees. • Establishes procedures and appropriate timelines for offender−petitioners in order to comply with the requirements of the amended statute. • Establishes procedures and appropriate timelines for staff to follow in conducting reviews of offender petitions for name changes, as required by the amended statute. DOCUMENTS INCORPORATED BY REFERENCE CDCR Form 2010 (06/18), Notice of Legal Name Change Petition.

SPECIFIC BENEFITS ANTICIPATED BY THE PROPOSED REGULATIONS These regulations, once adopted, will bring CDCR into compliance with the amended statute. These regu- lations promote fairness and social equality as they pro- vide for inmates and parolees to petition the courts di- rectly when seeking name changes. The Department’s comprehensive review of petitions for name changes and relevant criminal histories for the petitioners will enable CDCR to file an objection with the court, ensur- ing that the court considers possible risks to the institu- tions and the community.

EV ALUATION OF CONSISTENCY AND COMPATIBILITY WITH EXISTING REGULATIONS The Department must evaluate whether the proposed regulations are inconsistent or incompatible with exist- ing State regulations. Pursuant to this evaluation, the Department has determined that this action is not incon- sistent or incompatible with existing State laws and regulations. LOCAL MANDATES The proposed regulatory action imposes no mandates on local agencies or school districts, or a mandate which requires reimbursement of costs or savings pursuant to Government Code sections 17500 through 17630.

FISCAL IMPACT STATEMENT • Cost to any local agency or school district that is required to be reimbursed:None. • Cost or savings to any state agency:None. • Other nondiscretionary cost or savings imposed on local agencies:None. • Cost or savings in federal funding to the State:None. EFFECT ON HOUSING COSTS The Department has made an initial determination that the proposed regulations will have no significant effect on housing costs. SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT AFFECTING BUSINESS The Department has determined that the proposed regulations will not have a significant statewide adverse

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1391 economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states. COST IMPACTS ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES The Department 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 regulations.

EFFECT ON SMALL BUSINESSES The Department has determined that the proposed regulations have no significant adverse economic im- pact on small business as the proposed regulations es- tablish name change procedures for persons who are under the jurisdiction of the Department; the inmate and parolee populations, as they relate to the procedures de- scribed, do not have a significant impact on small businesses.

RESULTS OF ECONOMIC IMPACT ASSESSMENT The Department has determined that the proposed regulations will not have an impact on the creation of new or the elimination of existing jobs or businesses within California, or affect the expansion of businesses currently doing business in California as the proposed regulations only affect California inmates and parolees seeking name changes. Existing Department staff will perform the actions described in the proposed regula- tions through their current duties.

The Department has determined that the proposed regulations may have a positive impact upon the wel- fare of California residents as the proposed regulations establish procedures for inmates and parolees to peti- tion the courts directly when seeking a name change as provided for by amended law, which helps to promote fairness and social equality.

The Department has deter- mined that the proposed regulations will not have a di- rect effect on worker safety or the state’s environment as the regulations are specific to the name change proce- dures for inmates and parolees and these specific popu- lations in completing these specific actions do not sig- nificantly affect worker safety or the state’s environment.

CONSIDERATION OF ALTERNATIVES The Department has determined that no reasonable alternative considered by the Department, or that has otherwise been identified and brought to the attention of the Department, would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost−effective to affected private persons and equally effective in implementing the statutory policy or other provision of law.

Interested persons are accordingly in- vited to present statements or arguments with respect to any alternatives to the proposed regulations at the scheduled hearing or during the written comment period. A V AILABILITY OF PROPOSED TEXT AND INITIAL STATEMENT OF REASONS The Department has prepared the text and the Initial Statement of Reasons (ISOR) of the proposed regula- tions. The rulemaking file for this regulatory action, which contains those items and all information on which the proposal is based, is available to the public upon submittal of a request to the Department’s primary contact person.

The proposed text, ISOR, and Notice of Proposed Action are also available on the Department’s website: http://www.cdcr.ca.gov. A V AILABILITY OF THE FINAL STATEMENT OF REASONS Following its preparation, a copy of the Final State- ment of Reasons may be obtained from the Depart- ment’s contact person or website. A V AILABILITY OF CHANGES TO PROPOSED TEXT After considering all timely and relevant comments received, the Department may adopt the proposed regu- lations substantially as described in this Notice.

If the Department makes modifications which are sufficient- ly related to the proposed regulations, it will make the modified regulations (with the changes clearly indicat- ed) available to the public for at least 15 days prior to submitting the amended regulations to OAL for adop- tion. Requests for copies of any modified regulation should be directed to the primary contact person indi- cated in this Notice. The Department will accept written comments on the modified regulations for 15 days after the date on which they are made available.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1392 TITLE 16. CANNABIS CONTROL APPEALS PANEL NOTICE OF INTENTION TO ADOPT THE CONFLICT−OF−INTEREST CODE OF THE CANNABIS CONTROL APPEALS PANEL NOTICE IS HEREBY GIVEN that the Cannabis Control Appeals Panel, pursuant to the authority vested in it by

section 87300 of the Government Code, propos- es adoption of its conflict−of−interest code. A comment period has been established commencing on September 7, 2018 and closing on October 22, 2018. All inquiries should be directed to the contact listed below. The Cannabis Control Appeals Panel (CCAP or Pan- el) proposes to adopt its conflict−of−interest code to in- clude employee positions that involve the making or participation in the making of decisions that may fore- seeably have a material effect on any financial interest, as set forth in subdivision (

a) of

section 87302 of the Government Code. The adoption carries out the purpos- es of the law and no other alternative would do so and be less burdensome to affected persons. The conflict−of−interest code includes: incorpora- tion by reference of the terms of 2 California Code of Regulations

Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commis- sion; provisions requiring the CCAP’s Panel members and Executive Officer to file their statements of eco- nomic interests electronically with the Fair Political Practices Commission; provisions requiring all other designated positions to file their statements of econom- ic interests directly with the Panel; incorporation of the Appendix which identifies designated positions as the Panel Members (Categories 1 and 2), Executive Officer (Categories 1 and 2), Attorneys (all levels) (Categories 1 and 2), and the Associate Governmental Programs Analyst (Category 2), and establishes two disclosure categories: Category 1, which requires reporting of all interests in real property located in California as well as investments and business positions in business entities and sources of income (including receipt of gifts, loans and travel payments) if the business entity or source of income is an applicant for, or current holder of, a cannabis license of any type or the holder of a cannabis license of any type at any time within the preceding four years, and Category 2, which requires reporting of all investments and business positions in business entities and sources of income (including receipt of gifts, loans and travel payments) if the business entity or source provides leased facilities, products, equipment, vehi- cles, machinery or services (including training or con- sulting services) of the type utilized by the Panel.

The proposed conflict−of−interest code and explanation of the reasons can be obtained from the Panel’s contact set forth below. Any interested person may submit written comments relating to the proposed adoption by submitting them no later than October 22, 2018, or at the conclusion of the public hearing, if requested, whichever comes later. At this time, no public hearing is scheduled. A person may request a hearing no later than October 8, 2018. The Cannabis Control Appeals Panel has determined that the proposed adoption: 1. Imposes no mandate on local agencies or school districts. 2.

Imposes no costs or savings on any state agency. 3. Imposes no costs on any local agency or school district that are required to be reimbursed under

Part 7 (commencing with

Section 17500) of Division 4 of Title 2 of the Government Code. 4. Will not result in any nondiscretionary costs or savings to local agencies. 5. Will not result in any costs or savings in federal funding to the state. 6. Will not have any potential cost impact on private persons, businesses or small businesses. All inquiries concerning this proposed adoption and any communication required by this notice should be directed to: Philip Laird Cannabis Control Appeals Panel 801 Capitol Mall, Suite 601 Sacramento, CA 95814 Telephone: 916−653−4090 Email: Philip.laird@bcsh.ca.gov TITLE 17.

AIR RESOURCES BOARD NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED AMENDMENTS TO THE CALIFORNIA CAP ON GREENHOUSE GAS EMISSIONS AND MARKET−BASED COMPLIANCE MECHANISMS REGULATION The California Air Resources Board (CARB or Board) will conduct a public hearing at the time and place noted below to consider the proposed amend- ments to the California Cap on Greenhouse Gas Emis- sions and Market−Based Compliance Mechanisms Regulation (Cap−and−Trade Regulation or Regulation).

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1393 DATE: October 25, 2018 TIME: 9:00 a.m. LOCA TION: California Environmental Protection Agency California Air Resources Board Byron Sher Auditorium 1001 I Street Sacramento, California 95814 This item will be considered at a meeting of the Board, which will commence at 9:00 a.m., October 25, 2018, and may continue at 8:30 a.m., October 26, 2018. Please consult the agenda for the hearing, which will be available at least ten days before October 25, 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 September 7, 2018. Written comments not physically submitted at the hear- ing must be submitted on or after September 7, 2018, and received no later than 5:00 p.m. on October 22, 2018.

CARB requests that when possible, written and email statements be filed at least ten days before the hearing to give CARB staff and Board members addi- tional time to consider each comment. The Board also encourages members of the public to bring to the atten- tion of staff in advance of the hearing any suggestions for modification of the proposed regulatory action.

Comments submitted 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 com- ments to the Board reference the title of the proposal in their comments to facilitate review. AUTHORITY AND REFERENCE This regulatory action is proposed under that authori- ty granted in California Health and Safety Code, sec- tions 38510, 38560, 38562, 38570, 38571, 38580, 39600, and 39601. This action is proposed to implement, interpret and make specific sections 38530, 38560.5, 38562, 38564, 38565, 38570, and 39600 of the Health and Safety Code and

section 12894 of the Government Code. INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW (GOV .

CODE, § 11346.5, subd. (a)(3)) Sections Affected: Proposed amendment to Califor- nia Code of Regulations, title 17, sections 95802, 95811, 95812, 95813, 95820, 95830, 95831, 95833, 95834, 95841, 95841.1, 95851, 95852, 95854, 95856, 95870, 95871, 95890, 95891, 95892, 95893, 95894, 95911, 95912, 95913, 95914, 95920, 95921, 95942, 95943, 95973, 95974, 95976, 95977.1, 95979, 95981, 95981.1, 95982, 95983, 95984, 95985, 95987, 95990, 96011, 96014, 96021, 96022, Appendix B, and Ap- pendix E, title 17, California Code of Regulations.

Pro- posed adoption of California Code of Regulations, title 17, sections 95915 and 95989. Documents Incorporated by Reference (Cal. Code Regs., tit. 1, § 20, subd. (c)(3)): The following documents would be incorporated in the regulation by reference: • CARB 2018: California Air Resources Board (2018). California Climate Investments Quantification Methodology Emission Factor Database Documentation. August 1, 2018: https://www.arb.ca.gov/cc/capandtrade/ auctionproceeds/cci_emissionfactordatabase_ documentation.pdf?_ga=2.20689656. 139777898.1531943067662930638.1529680845 • California Energy Commission (CEC). 2017.

Renewables Portfolio Standard Eligibility, 9th edition, Commission Guidebook, pp. 85−86. CEC−300−2016−ED9−CMF−REV . Released January, 2017: http://docketpublic.energy.ca.gov/ PublicDocuments/16−RPS−01/TN217317_ 20170427T142045_RPS_Eligibility_Guidebook _Ninth_Edition_Revised.pdf

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1394 • United States Environmental Protection Agency. Mandatory Reporting of Greenhouse Gases; Final Rule. Title 40 Code of Federal Regulations,

Part 98, Subpart C, Table C−1 (pg. 444−445). Last amended December 17, 2010. https://www.gpo.gov/fdsys/pkg/CFR−2011− title40−vol21/pdf/CFR−2011−title40−vol21− part98−subpartC.pdf Background and Effect of the Proposed Regulatory Action: The California Global Warming Solutions Act of 2006 (Assembly Bill 32;

Chapter 488, Statutes of 2006), which is codified at California Health and Safety Code sections 38500 et seq., requires California to re- duce greenhouse gas (GHG) emissions to 1990 levels by 2020, to maintain and continue GHG emissions re- ductions beyond 2020, and to develop a comprehensive strategy to reduce dependence on fossil fuels, stimulate investment in clean and efficient technologies, and im- prove air quality and public health. It identifies CARB as the State agency charged with monitoring and regu- lating sources of the GHG emissions that cause climate change.

Assembly Bill (AB) 32 also requires CARB to work with other jurisdictions to identify and facilitate the development of integrated and cost−effective re- gional, national, and international GHG reduction pro- grams. Furthermore, AB 32 authorizes CARB to utilize a market−based mechanism to reduce GHG emissions, and CARB promulgated the Cap−and−Trade Regula- tion pursuant to this authority.

The Legislature reaffirmed California’s commitment to taking action against climate change by adopting Senate Bill (SB) 32 (Chapter 250, Statutes of 2016), which further directs CARB to ensure that statewide GHG emissions are reduced to at least 40 percent below the 1990 level no later than December 31, 2030. In addi- tion, AB 398 (Chapter 135, Statutes of 2017) amends certain provisions of AB 32 to take effect starting Janu- ary 1, 2021, and clarifies the role of the Cap−and−Trade Program in achieving the 2030 GHG reduction target.

The Regulation establishes a declining limit on major sources of GHG emissions, and it creates a powerful economic incentive for significant investment in clean- er, more efficient technologies. The Cap−and−Trade Program (Program) applies to emissions that cover ap- proximately 80 percent of the State’s GHG emissions. CARB creates allowances equal to the total amount of permissible emissions (i.e., the “cap”). One allowance equals one metric ton of carbon dioxide equivalent emissions (using the 100−year global warming poten- tials). Fewer allowances are created each year, thus the annual cap declines.

An increasing annual Auction Re- serve (or floor) Price for allowances and the reduction in annual allowance budgets creates a steady and sus- tained carbon price signal to prompt action to reduce GHG emissions. All covered entities in the Cap−and− Trade Program are still subject to air quality permit lim- its for criteria and toxic air pollutants. The Program is designed to achieve the most cost− effective statewide GHG emissions reductions; there are no individual or facility−specific emissions reduc- tion requirements.

Each entity covered by the Regula- tion has a compliance obligation that is equivalent to its covered GHG emissions over a compliance period, and entities are required to meet that compliance obligation by acquiring and surrendering allowances in an amount equal to their compliance obligation. Covered entities can also meet a limited portion of their compliance obli- gation by acquiring and surrendering offset credits, which are compliance instruments that are issued for rigorously verified emission reductions that occur from projects outside the scope of the Program.

Like al- lowances, each offset credit is equal to one metric ton of carbon dioxide equivalent emissions. The Program be- gan in January 2013 and achieved a near 100 percent compliance rate for the first compliance period (2013−2014), as well as for the first two years of the sec- ond compliance period (2015−2017). Allowances are issued by CARB and distributed by free allocation — to minimize leakage and protect utili- ty ratepayers — and by sale at auctions. Offset credits are issued by CARB to qualifying offset projects.

Sec- ondary markets exist where allowances and offset cred- its may be sold and traded among Program participants. Covered entities must submit allowances and offsets to account for their GHG emissions. Entities have flexibil- ity to choose the lowest−cost approach to achieving Program compliance; they may take steps to reduce emissions at their own facilities, purchase allowances at auction, or trade allowances and offset credits with oth- ers.

Monies from the sale of State−owned allowances at auction are placed into the Greenhouse Gas Reduction Fund (GGRF) and are appropriated, through the State budget process, consistent with State law to further the purposes of AB 32. The Program is also designed to accommodate re- gional trading programs. On January 1, 2014, Califor- nia and Québec linked their respective cap−and−trade programs. On January 1, 2018, the Program linked with the cap−and−trade program in Ontario.

As described later in this Notice, the proposed amendments will in- clude amendments related to the linkage with Ontario to reflect recent changes undertaken by Ontario with re- spect to its cap−and−trade program. The Regulation was first adopted by the Board in Oc- tober 2011, and it took effect January 1, 2012. Since its initial adoption, the Regulation has been amended to streamline Program requirements, include linkage with

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1395 Québec, and incorporate new mandates. These amend- ments were approved in 2013, 2014, and 2015. In 2016, CARB staff proposed amendments to clarify compli- ance obligations for certain sectors; continue Program linkage with Québec beyond 2020; link the Program with the new cap−and−trade program in Ontario begin- ning January 2018; and establish a post−2020 frame- work for caps, enabling future auction and allocation of allowances, and continuing all other provisions needed to implement the Program after 2020.

The Board adopt- ed these amendments on July 27, 2017, and they went into effect on October 1, 2017. The Board recognized that additional modifications to the Program are re- quired through a new rulemaking process to implement the AB 398 requirements for the post−2020 Cap−and− Trade Program. Board Resolution 17−21 directed the Executive Officer to initiate this rulemaking process.

The current Regulation that is in force, including these 2016 amendments, is the starting point for the current amendment process. 1 The full regulatory record and background for these previous Cap−and−Trade Regulation rulemakings is available at the main Cap−and−Trade Program web- page. 2 The proposed amendments include CARB staff’s proposal to amend the Cap−and−Trade Regulation to make the Program consistent with AB 398 require- ments and respond to Board direction.

Specifically, the proposed amendments would update existing provi- sions to ensure appropriate allowance allocation to pro- vide transition assistance and minimize emissions leak- age, clarify allowed use of allocated allowance value, add a price ceiling and two Reserve tiers post−2020, re- vise quantitative offset usage limits and implement “di- rect environmental benefits in the state” (DEBS) provi- sions for offset credits, establish a process to assess compliance obligations for GHG emissions associated with electricity imported through the Energy Imbalance Market (EIM), and enhance CARB’s ability to imple- ment and oversee the Regulation.

In doing so, the pro- posed amendments will enable the Program to continue to reduce GHG emissions while minimizing emissions leakage and benefitting the California economy through investment in clean energy technologies. The proposed amendments will also continue the ex- isting linkage with the Québec program, and will modi- fy provisions related to the linkage with Ontario to de− link with Ontario’s program to reflect recent changes undertaken by Ontario to suspend the Ontario cap−and− trade program effective July 3, 2018.

Given that the changes underway in Ontario are ongoing, additional changes may also be proposed as part of a 15−day pub- lic notice and comment period for this rulemaking process taking into account the latest actions undertak- en by the Ontario government. CARB may also consid- er other changes to the sections affected, as listed above, during the course of this rulemaking process.

In developing the amendments proposed in this No- tice, CARB staff held a total of four publicly noticed workshops from October 2017 through June 2018 in which staff presented initial regulatory concepts and publicly discussed them with interested stakeholders. In conjunction with these workshops, CARB released two discussion drafts of possible changes to regulatory language, a concept paper on price containment, sup- porting material for assessing post−2020 caps, and a

summary of stakeholder comments received. Each workshop was followed by a two−week informal public comment period and all materials and public comments are available on the Cap−and−Trade Program’s Public Meetings web page. 3 In addition, CARB staff held nu- merous informal meetings with stakeholders to discuss specific topics related to the proposed amendments. These forums provided CARB staff and stakeholders with opportunities to present and discuss initial regula- tory concepts and potential alternatives.

The timeframe of the workshops and meetings allowed CARB to incor- porate stakeholder feedback and alternatives into the proposed amendments. Over 180 distinct comments were received in response to the workshops. 4 For more information on the public process for these proposed amendments, please refer to

Chapter I of the Staff Re- port and Appendix E: Public Process of the Staff Re- port. In addition, since January 1, 2018, CARB has partici- pated in three legislative hearings related to the Cap− and−Trade Program and topics addressed in this rule- making.

Two hearings were held by the Joint Legisla- tive Committee on Climate Change and one by the Sen- ate Environmental Quality Committee. 5 1 In January 2018, CARB staff proposed a narrow set of amend- ments to ensure that the responsibility to meet compliance obliga- tions is transferred to new owners along with assets during an ownership change process and clarify the regulatory procedure for establishing the Auction Reserve Price.

The Board approved these amendments on March 22, 2018, and they went into effect on May 30, 2018. 2 More information about prior rulemakings can be found at https://www.arb.ca.gov/cc/capandtrade/capandtrade.htm. 3 Workshop comments, presentations and other materials can be found on the Cap−and−Trade website at https://www.arb.ca.gov/ cc/capandtrade/meetings/meetings.htm. 4 Workshop comments, presentations and other materials can be found on the Cap−and−Trade website at https://www.arb.ca.gov/ cc/capandtrade/meetings/meetings.htm. 5 More information can be found at http://climatechangepolicies.legislature.ca.gov/ previous−hearings and https://senv.senate.ca.gov/ informationalhearings.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1396 Objectives and Benefits of the Proposed Regulatory Action: CARB staff is proposing these amendments primari- ly to conform with AB 398 requirements and respond to direction in Board Resolution 17−21.

To make the Pro- gram consistent with AB 398 requirements, the pro- posed amendments add a price ceiling and two Reserve tiers post−2020; 6 revise quantitative offset usage limits and implement “direct environmental benefits in the state” (DEBS) provisions for offset credits post−2020; and revise the post−2020 assistance factors for al- lowance allocation. To respond to Board direction, the proposed amendments update existing provisions to en- sure appropriate allowance allocation for transition as- sistance and leakage minimization and to clarify al- lowed use of allocated allowance value.

Staff also pro- poses other revisions to clarify and streamline Program requirements and ensure proper assessments of compli- ance obligations. These revisions establish a process to assess compliance obligations for GHG emissions asso- ciated with electricity imported through the EIM; revise and clarify offset implementation requirements; and streamline registration, auction participation, and other Program processes.

In doing so, the proposed amend- ments will enable the Program to continue to reduce GHG emissions while minimizing emissions leakage and benefitting the California economy through invest- ment in clean energy technologies. As described above, the proposed amendments will also continue the exist- ing linkage with the Québec program and modify provi- sions related to the linkage with Ontario to de−link with the Ontario cap−and−trade program.

Although the proposed amendments are not modify- ing the post−2020 caps or expected statewide GHG emissions reductions from the amendments approved in 2017, anticipated benefits include further clarifica- tions to the Regulation’s cost containment provisions to provide more robust cost−containment. Given that the proposed amendments will continue to ensure the GHG emissions reductions required by the Program, these amendments may also protect public health and safety, worker safety, and the State’s environment. Additional benefits include improved clarity for covered entities.

The proposed amendments will also ensure appropriate accounting for covered emissions and compliance obligations. Specific discussion of the proposed amendments to the Cap−and−Trade Regulation follows. A detailed de- scription of the proposed amendments is provided in

Chapter II of the “Staff Report: Initial Statement of Rea- sons for Rulemaking — Proposed Amendments to the California Cap on Greenhouse Gas Emissions and Market−Based Compliance Mechanisms Regulation,” referred to as the ISOR. The Proposed Regulation Order is Appendix A of the ISOR. Cost Containment Post−2020 Staff is proposing amendments to implement AB 398 directives on cost containment. This

section of the no- tice first describes the cost containment system as it cur- rently exists in 2018, and how it would have evolved un- der the existing Regulation through 2030. The next part describes the proposed amendments, beginning with the structure of the new post−2020 Reserve and price ceiling as well as the distribution of allowances among the new price containment points, which are referred to as new post−2020 Reserve tiers. Finally, this

section of the notice explains how the pricing system is designed to support the introduction of new abatement technolo- gies and ensure that emissions reductions are incentivized. a. Structure and Operation of the Reserve in the Existing Regulation The Allowance Price Containment Reserve (Re- serve) contains California−issued allowances that are available for purchase by California covered entities at four scheduled Reserve sales each year. The allowances are divided equally among three Reserve tiers, each containing 40.6 million allowances. The tier prices were originally set at $40, $45, and $50 in 2013.

Prices escalate each year by 5 percent and are also adjusted for inflation. To date, no Reserve sales have been held and no Reserve allowances have been sold. The current Reserve contains four percent of the al- lowances issued under the caps from 2013 through 2020. Diverting allowances to the Reserve reduced the number of compliance instruments available to the mar- ket, which could have increased market prices. To avoid this impact, CARB simultaneously increased the quan- titative offset usage limit from four percent to eight per- cent of the compliance obligation.

The existing Regula- tion also provides that allowances remaining unsold at the current auction for more than 24 months are to be placed in the current Reserve. Staff estimate that, as- suming auctions in 2018 and 2019 are fully subscribed, approximately 39 million allowances may be placed in the current Reserve prior to 2021. The regulatory amendments approved in 2017 in- cluded revisions to the operation of the Reserve that were scheduled to take effect beginning in 2021.

The scheduled changes would collapse the three tiers of the 6 Consistent with terminology used during the informal public process, for the purposes of this document, “current Reserve” means the existing allowance price containment reserve with three price tiers which is in effect until 2020, “post−2020 Re- serve” means the collapsed single tier reserve as currently includ- ed in the Cap−and−Trade Regulation for post−2020, and “new post−2020 Reserve” means the two tier reserve structure as direct- ed in AB 398.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 36-Z 1397 current Reserve into a single tier, post−2020 Reserve. These existing regulatory provisions would replace the scheduled increases in the Reserve tier prices starting in 2021 with a mechanism that sets the single Reserve sale price as the sum of the annual Auction Reserve Price and a fixed real dollar amount of approximately $60. CARB would adjust the fixed difference between the two prices for inflation to maintain the difference in constant (real) dollars.

Under the current Regulation, the single tier Reserve price would approximately be $75 in 2021 (real 2018 dollars). Under the existing Regulation, if the top (third) tier of the Reserve is depleted, CARB may offer allowances for sale at the last Reserve sale before a compliance event from future allowance budget years that are not already allocated to the Reserve. The number of al- lowances that may be borrowed from future budget years is equal to 10 pe