California Regulatory Notice Register — Register 2019, No. 36-Z (September 06, 2019)

Cal. Reg. Notice Reg. 2019, No. 36

California Z Register

EDMUND G. BROWN, JR., GOVERNOR OFFICE OF ADMINISTRATIVE LAW REGISTER 2019, NUMBER 36−Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW SEPTEMBER 6, 2019 PROPOSED ACTION ON REGULATIONS TITLE 2. DEPARTMENT OF FAIR EMPLOYMENT AND HOUSING Conflict−of−Interest Code — Notice File Number Z2019−0823−03 ...................................... 1203 TITLE 2. FAIR EMPLOYMENT AND HOUSING COUNCIL OF THE DEPARTMENT OF FAIR EMPLOYMENT AND HOUSING Criminal History and New Parent Leave Act — Notice File Number Z2019−0826−01 ....................... 1203 TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION Conflict−of−Interest Code — Notice File Number Z2019−0827−04 ...................................... 1206 Amendment Multi−County: East Bay Regional Park District Metropolitan Transportation Commission ABAG Finance Authority for Nonprofit Corporations Association of Bay Area Governments ABAG Publicly Owned Energy Resources State: Mental Health Services Oversight and Accountability Commission State Council on Developmental Disabilities TITLE 2.

MENTAL HEALTH SERVICES OVERSIGHT AND ACCOUNTABILITY COMMISSION Conflict−of−Interest Code — Notice File Number Z2019−0823−01 ...................................... 1207 TITLE 10. CALIFORNIA HEALTH BENEFIT EXCHANGE Medi−Cal Managed Care Plan Enrollment Assistance — Notice File Number Z2019−0827−09 ............... 1207 TITLE 11. COMMISSION ON PEACE OFFICER STANDARDS AND TRAINING Amend Commission Regulation 1052 — Notice File Number Z2019−0823−05 ............................. 1210 (Continued on next page) Time- Dated Material

TITLE 11. COMMISSION ON PEACE OFFICER STANDARDS AND TRAINING Amend Commission Regulations 1005, 1007, and Commission Procedure D−1− Notice File Number Z2019−0823−04 ................................................ 1212 TITLE 11. DEPARTMENT OF JUSTICE Revised Tobacco Escrow Agreement — Notice File Number Z2019−0827−03 .............................. 1214 TITLE 13. CALIFORNIA HIGHWAY PATROL Inhalation Hazards Safe Stops — Notice File Number Z2019−0823−02 .................................. 1217 TITLE 13.

CALIFORNIA HIGHWAY PATROL Radioactive Materials Shipment — Safe Haven — Notice File Number Z2019−0822−01 ..................... 1219 TITLE 17. AIR RESOURCES BOARD Advanced Payment of Certain Funds Regulation — Notice File Number Z2019−0820−04 .................... 1221 TITLE 20.

CALIFORNIA ENERGY COMMISSION Modification of Regulations Governing the Power Source Disclosure Program — Notice File Number Z2019−0827−02 .......................................... 1226 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE California Endangered Species Act Consistency Determination Number 2089−2019−002−01, Eden Safe Harbor Agreement, South Fork Greenwood Creek, Mendocino County ................................................... 1233 DEPARTMENT OF FISH AND WILDLIFE Fish and Game Code

Section 1653 Consistency Determination Request for Geib Ranch Sediment Reduction Project (Tracking Number: 1653−2019−047−001−R3) Sonoma County ......................................... 1236 DEPARTMENT OF FISH AND WILDLIFE Fish and Game Code

Section 1653 Consistency Determination Request for Old Hill Ranch Sediment Reduction Project (Tracking Number: 1653−2019−046−001−R3) Sonoma County ......................................... 1237 DEPARTMENT OF FISH AND WILDLIFE Habitat Restoration and Enhancement Act Consistency Determination Number 1653−2019−042−001−R1, Horse Creek Lawrence/Morgan Wood Loading Project, Siskiyou County ................................. 1237 (Continued on next page)

ENVIRONMENTAL PROTECTION AGENCY 30−Day Public Notice and Comment Period for Unified Program Fee

Schedule Supplemental Revision for Trinity County CUP A, Proposed by DTSC ......................... 1239 RULEMAKING PETITION DECISION DEPARTMENT OF MANAGED HEALTH CARE Notice of Decision on Petition from Denise Feldman Concerning Essential Health Benefits ............................................................. 1240 DISAPPROV AL DECISION DEPARTMENT OF FOOD AND AGRICULTURE Fertilizing Materials Violations Matrix ............................................................ 1245

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State ........................................................ 1246 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.

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2. DEPARTMENT OF FAIR EMPLOYMENT AND HOUSING NOTICE IS HEREBY GIVEN that the Department of Fair Employment and Housing (DFEH), pursuant to the authority vested in it by

section 87306 of the Gov- ernment Code, proposes amendment to its conflict−of− interest code. A comment period has been established commencing on September 6, 2019 and closing on Oc- tober 21, 2019. All inquiries should be directed to the contact listed below. The DFEH proposes to amend its conflict−of− interest code to include employee positions that involve the making or participation in the making of decisions that may foreseeably have a material effect on any fi- nancial interest, as set forth in subdivision (

a) of

section 87302 of the Government Code. The amendment car- ries out the purposes of the law and no other alternative would do so and be less burdensome to affected persons.

Changes to the conflict−of−interest code include: (1) identifying new positions with reporting obligations; (2) removing positions that no longer have reporting obligations, either because the position no longer exists, or because the position lacks authority to determine case intake or closure; (3) updating the organizational structure DFEH provides to the Fair Political Practices Commission to improve the accuracy of that disclosure; AND (4) other technical changes. Information on the code amendment is available on the DFEH’s intranet site and is attached to this email.

Any interested person may submit written comments relating to the proposed amendment by submitting them no later than October 21, 2019, 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 6, 2019. The DFEH has determined that the proposed amendments: 1. Impose no mandate on local agencies or school districts. 2. Impose no costs or savings on any state agency. 3. Impose no costs on any local agency or school district that are required to be reimbursed under

Part 7 (commencing with

Section 17500) of Division 4 of Title 2 of the Government Code. 4. Will not result in any nondiscretionary costs or savings to local agencies. 5. Will not result in any costs or savings in federal funding to the state. 6. Will not have any potential cost impact on private persons, businesses or small businesses. All inquiries concerning this proposed amendment and any communication required by this notice should be directed to: Adam Chayes, Staff Counsel, (916) 585−7109, adam.chayes@dfeh.ca.gov. TITLE 2.

FAIR EMPLOYMENT AND HOUSING COUNCIL OF THE DEPARTMENT OF FAIR EMPLOYMENT AND HOUSING EMPLOYMENT REGULATIONS REGARDING CRIMINAL HISTORY , THE CALIFORNIA FAMILY RIGHTS ACT, AND THE NEW PARENT LEA VE ACT The Fair Employment and Housing Council (Coun- cil) of the Department of Fair Employment and Hous- ing (DFEH) proposes to amend sections 11017.1, 11087−11094, and 11096 of Title 2 of the California Code of Regulations after considering all comments, objections, and recommendations regarding the pro- posed action.

PUBLIC HEARING The Council will hold a public hearing starting at 10:00 a.m. on October 23, 2019 , at the following location: State Capitol Room 113 Sacramento, CA 95814 At the hearing, any person may present statements or arguments orally or in writing relevant to the proposed action described in the Informative Digest. The Council requests but does not require that persons who make oral comments at the hearing also submit a written copy of their testimony at the hearing. The meeting facilities are accessible to individuals with physical disabilities.

Anyone who requires an aux- iliary aid or service for effective communication, or a modification of policies or procedures to participate in the meeting, should contact Brenda Valle, DFEH ADA Coordinator, at (844) 541−2877 (voice or via relay op- erator 711) or TTY (800) 700−2320 or via email: 1203

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z brenda.valle@dfeh.ca.gov or accommodations@dfeh. ca.gov as soon as possible or at least 72 hours before the meeting. WRITTEN COMMENT PERIOD Any interested person, or any interested person’s au- thorized representative, may submit written comments relevant to the proposed regulatory action to the Coun- cil. The written comment period closes at 5:00 p.m. on October 23, 2019. The Council will consider only com- ments received by that time.

Written comments can be mailed to: Fair Employment and Housing Council c/o Brian Sperber Legislative and Regulatory Counsel Department of Fair Employment and Housing 320 West 4 th Street, 10th Floor Los Angeles, CA 90013 Telephone: (213) 337−4495 Comments may also be submitted by e−mail to FEHCouncil@dfeh.ca.gov. AUTHORITY AND REFERENCE Government Code

section 12935(

a) authorizes the Council to adopt these proposed regulations. The pro- posed regulations implement, interpret, and make spe- cific

section 12900 et seq. of the Government Code. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW This rulemaking action clarifies, makes specific, and supplements existing state regulations interpreting the Fair Employment and Housing Act (“FEHA”) set forth in Government Code

section 12900 et seq. Two bills from 2017 — AB 1008 and SB 63 — add new sections to the FEHA that respectively “ban the box” by pro- hibiting employers from seeking criminal history infor- mation until a conditional offer of employment is made and enact the New Parent Leave Act (NPLA), thereby expanding parental leave rights at employers of 20−49 employees. In compliance with the Administrative Procedure Act, the Council proposes to adopt these rules as duly noticed, vetted, and authorized regulations.

The overall objective of the proposed regulations is to describe how the two new laws operate and fit into the broader con- text of the FEHA, primarily by centralizing, clarifying, and codifying the two statutes. This action has the spe- cific benefit of clarifying new, potentially misunder- stood areas of the law, in turn reducing litigation costs and court overcrowding. Ultimately, the proposed ac- tion furthers the mission of the DFEH by protecting Californians from employment discrimination.

The proposed amendments specifically do the fol- lowing: (1) articulate the parameters of AB 1008 in an orderly fashion in the context of existing regulations re- garding the consideration of criminal history in em- ployment decisions; (2) distinguish between ban−the− box and the adverse impact theory of liability; (3) clari- fy any ambiguities in AB 1008, particularly how to cal- culate “five business days”; (4) integrate SB 63 into ex- isting regulations regarding the California Family Rights Act (CFRA); and (5) identify differences be- tween CFRA and NPLA, such as jurisdictional differences.

The Council has determined that the proposed amendments are not inconsistent or incompatible with existing regulations. After conducting a review for any regulations that would relate to or affect this area, the Council has concluded that these are the only regula- tions that concern the Fair Employment and Housing Act. DISCLOSURES REGARDING THE PROPOSED ACTION The Council has made the following initial determinations: Mandate on local agencies and school districts: None. Cost or savings to any state agency: No additional costs or savings beyond those imposed by existing law.

Cost to any local agency or school district, which must be reimbursed in accordance with Govern- ment Code sections 17500 through 17630: None. Other nondiscretionary cost or savings imposed on local agencies: No additional costs or savings be- yond those imposed by existing law. Cost or savings in federal funding to the state: None. Cost impacts on a representative private person or businesses: No additional costs or savings beyond those imposed by existing law.

Therefore, the agency is not aware of any cost impacts that a representative pri- vate person or business would necessarily incur in rea- sonable compliance with the proposed action. Results of the economic impact assessment/ analysis: The Council anticipates that the adoption of the regulations will not impact the creation or elimina- tion of jobs within the state, the creation of new busi- nesses or the elimination of existing businesses within the state, or the expansion of businesses currently doing business within the state.

To the contrary, adoption of the proposed amendments is anticipated to benefit the health and welfare of California residents and business- 1204

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z es and improve worker safety by clarifying and stream- lining the operation of the law, making it easier for em- ployees and employers to understand their rights and obligations, and reducing litigation costs for business- es. These regulations would not affect the environment.

Statewide adverse economic impact directly af- fecting businesses and individuals: The Council has made an initial determination that the proposed action will not have a significant statewide adverse economic impact directly affecting businesses, including the abil- ity of California businesses to compete with businesses in other states. Significant effect on housing costs: None. Small Business Determination: The Council antici- pates that the regulations will not create additional costs or savings beyond those imposed by existing regula- tions.

Similarly, the Council has determined that there is no impact on small businesses as a result of this pro- posed action because these regulations primarily serve to clarify existing law. Business Report: The Council has determined that the proposed regulations do not require a report to be made. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), the Council must deter- mine that no reasonable alternative it considered or that has otherwise been identified and brought to the Coun- cil’s attention would be more effective in carrying out the purpose for which this action is proposed, or would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost−effective to affected private persons and equally effective in implementing the statutory policy or other provision of law.

The Council has thus far not become aware of a better alternative and invites interested persons to present statements or arguments with respect to alternatives to the proposed regulations at the scheduled hearing or during the written comment period.

CONTACT PERSONS Inquiries concerning the proposed administrative ac- tion may be directed to: Brian Sperber, Legislative and Regulatory Counsel Department of Fair Employment and Housing 320 West 4 th Street, 10th Floor Los Angeles, CA 90013 Telephone: (213) 337−4495 E−mail: brian.sperber@dfeh.ca.gov The backup contact person for these inquiries is: Linda Verde, Administrative Assistant II Department of Fair Employment and Housing 2218 Kausen Drive, Suite 100 Elk Grove, CA 95758 Telephone: (916) 478−7248 E−mail: linda.verde@dfeh.ca.gov Please direct requests for copies of the proposed text (express terms) of the regulations, the Initial Statement of Reasons, the modified text of the regulations, if any, or other information upon which the rulemaking is based, should other sources be used in the future, to Bri- an Sperber at the above address.

A V AILABILITY OF STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS, AND RULEMAKING FILE The Council will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office at the above address. As of the date this notice is published in the Notice Regis- ter, the rulemaking file consists of this notice, the pro- posed text of the regulations, and the Initial Statement of Reasons. Copies may be obtained by contacting Bri- an Sperber at the address or phone number listed above.

A V AILABILITY OF CHANGED OR MODIFIED TEXT After holding the hearing and considering all timely and relevant comments received, the Council may adopt the proposed regulations substantially as de- scribed in this notice. If the Council makes modifica- tions that are sufficiently related to the originally pro- posed text, it will make the modified text (with the changes clearly indicated) available to the public for at least 15 days before the Council adopts the regulations as revised. Please send requests for copies of any modi- fied regulations to the attention of Brian Sperber at the address indicated above.

The Council will accept writ- ten comments on the modified regulations for 15 days after the date on which they are made available. A V AILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons will be available on the Council’s Web page: http://www.dfeh.ca.gov/fehcouncil/. Copies also may be obtained by contacting Brian Sperber at the above address. 1205

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z A V AILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Action, the Initial Statement of Reasons, the text of the regulations, and any modified texts and the Final Statement of Reasons can be accessed through the Council’s Web page at http://www.dfeh.ca.gov/fehcouncil/. TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION NOTICE IS HEREBY GIVEN that the Fair Political Practices Commission, pursuant to the authority vested in it by Sections 82011, 87303, and 87304 of the Gov- ernment Code to review proposed conflict−of−interest codes, will review the proposed/amended conflict−of− interest codes of the following: CONFLICT−OF−INTEREST CODES AMENDMENT MULTI−COUNTY: East Bay Regional Park District Metropolitan Transportation Commission ABAG Finance Authority for Nonprofit Corporations Association of Bay Area Governments ABAG Publicly Owned Energy Resources STATE: Mental Health Services Oversight and Accountability Commission State Council on Developmental Disabilities A written comment period has been established com- mencing on September 6, 2019 and closing on October 21, 2019.

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

s) will be submitted to the Commission’s Executive Director for his 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 his 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 21, 2019. 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−in- terest codes shall approve codes as submitted, revise the proposed code and approve it as revised, or return the proposed code for revision and re−submission.

REFERENCE Government Code Sections 87300 and 87306 pro- vide that agencies shall adopt and promulgate conflict− of−interest codes pursuant to the Political Reform Act and amend their codes when change is necessitated by changed circumstances. 1206

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z CONTACT Any inquiries concerning the proposed conflict−of− interest code(

s) should be made to Amanda Apostol, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 324−5854. 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 Amanda Apostol, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 324−5854. TITLE 2.

MENTAL HEALTH SERVICES OVERSIGHT AND ACCOUNTABILITY COMMISSION NOTICE IS HEREBY GIVEN that the Mental Health Services Oversight and Accountability Com- mission, pursuant to the authority vested in it by

section 87306 of the Government Code, proposes amendment to its conflict−of−interest code. A comment period has been established commencing on September 6, 2019 and closing on October 21, 2019. All inquiries should be directed to the contact listed below. The Mental Health Services Oversight and Account- ability Commission proposes to amend its conflict−of− interest code to include employee positions that involve the making or participation in the making of decisions that may foreseeably have a material effect on any fi- nancial interest, as set forth in subdivision (

a) of

section 87302 of the Government Code. The amendment car- ries out the purposes of the law and no other alternative would do so and be less burdensome to affected persons. Changes to the conflict−of−interest code include: modifications or deletions of some position titles, addi- tions of new position titles to the list of designated em- ployees (Appendix A), and other technical changes. The proposed amendment and explanation of the rea- sons can be obtained from the agency’s contact.

Any interested person may submit written comments relating to the proposed amendment by submitting them no later than October 21, 2019, or at the conclusion of the public hearing, if requested, whichever comes later. At this time, no public hearing is scheduled. A person m ay request a hearing no later than October 6, 2019. The Mental Health Services Oversight and Account- ability Commission has determined that the proposed amendments: 1. Impose no mandate on local agencies or school districts. 2. Impose no costs or savings on any state agency. 3.

Impose no costs on any local agency or school district that are required to be reimbursed under

Part 7 (commencing with

Section 17500) of Division 4 of Title 2 of the Government Code. 4. Will not result in any nondiscretionary costs or savings to local agencies. 5. Will not result in any costs or savings in federal funding to the state. 6. Will not have any potential cost impact on private persons, businesses or small businesses. All inquiries concerning this proposed amendment and any communication required by this notice should be directed to: Lauren Quintero, MHSOAC 1325 J Street, Suite 1700 Sacramento, CA 95814 (916) 445−8716 Lauren.quintero@mhsoac.ca.gov TITLE 10.

CALIFORNIA HEALTH BENEFIT EXCHANGE The Board of Directors for the California Health Ben- efit Exchange (hereinafter referred to as the “Ex- change”) proposes to adopt the regulation described be- low after considering all comments, objections, and recommendations regarding the proposed action. PUBLIC HEARING The Exchange has not scheduled a public hearing on this proposed action. However, the Exchange will hold a hearing if it receives a written request for a public hearing for any interested person, or his or her autho- rized representative, no later than 15 days before the close of the written comment period.

WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written comments relevant to the proposed regulatory action to the Exchange. The writ- ten comment period closes on October 21, 2019. The Exchange will consider only comments received at the Exchange’s office by that time. Submit written com- ments to: 1207

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z Faviola Adams Regulations Coordinator California Health Benefit Exchange (Covered California) 1601 Exposition Boulevard Sacramento, CA 95815 Comments may also be submitted by facsimile (FAX) at 916−228−8321 or by e−mail to regulations@ covered.ca.gov. AUTHORITY AND REFERENCE Government Code

Section 100504(a)(6) authorizes the Board of Directors for the Exchange to adopt rules and regulations, as necessary. The proposed regulations implement, interpret, and make specific Government Code Sections 100502 and 100503; and Title 45 of the Code of Federal Regulations, Sections 155.205 and 156.260. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW

Summary of Existing Laws In March 2010, President Obama signed federal health reform legislation called the Patient Protection and Affordable Care Act (ACA). It created the opportu- nity for each state to establish a state−based health in- surance exchange to implement the ACA.

California chose to operate an exchange that is commonly known as “Covered California.” For purposes of this Notice, Covered California will be referred to as the “Ex- change.” The Exchange’s mission is to increase the number of insured Californians, improve health care quality, lower costs, and reduce health disparities through an innovative, competitive marketplace that empowers consumers to choose their health plan. State law also specifies the powers and duties of the executive board of the Exchange. Government Code

Section 100504(a)(6) authorizes the Exchange’s Board of Directors to adopt rules and regulations, as neces- sary. The Exchange proposes this permanent rulemak- ing in furtherance of its rulemaking authority to imple- ment, interpret and make specific state and federal laws. Currently, there are some emergency regulations that establish and regulate the Medi−Cal Managed Care Plan Enroller program. Those regulations outline the requirements for the application to apply to the program and the fingerprinting and background check process.

SUMMARY OF THE EFFECT OF THE PROPOSED REGULATION These regulations pertain to the Exchange’s Medi− Cal Managed Care Plan Enrollment Assistance Pro- gram. The broad purpose of this proposed regulatory action is to: (1) complete Certificate of Compliance re- quirements for Sections 6902, 6903, and 6904; (2) adopt Sections 6900, 6901, 6905, 6906, 6807, and 6908; and (3) make minor edits that ensure clarity and accuracy.

ANTICIPATED BENEFITS OF THE PROPOSED REGULATION The anticipated benefits of this proposed regulation include: Complete the Certificate of Compliance requirement for emergency regulations; Adopt previously expired regulations; Make minor clarifying edits to remove some ambiguity and accommodate stakeholder requests; and Ensure compliance with federal auditing requirements.

EV ALUATION OF INCONSISTENCY/INCOMPATIBILITY WITH EXISTING STATE REGULATIONS After an evaluation of current regulations, the Ex- change determined that these proposed regulations are not inconsistent or incompatible with any existing regu- lations. In Articles 8, 9, and 11, there are several regula- tions pertaining to the roles and responsibilities of Cer- tified Enrollers, such as Certified Enrollment Coun- selors, Certified Application Counselors, and Plan− Based Enrollers.

The proposed regulations governing Medi−Cal Managed Care Plan Enrollers do not conflict with any other regulations governing other Certified Enrollers. Documents to be incorporated by reference: 26 CFR

Section 1.36B−2(c)(3)(

v) and (vi), (July 26, 2017) 42 CFR

Section 435.603(f), (November 30, 2016) 45 CFR

Section 155.205(d), (December 22, 2016) 45 CFR

Section 155.220, (December 22, 2016) 45 CFR

Section 155.260, (September 6, 2016) Documents Relied Upon: None. DISCLOSURES REGARDING THE PROPOSED ACTION The Exchange has made the following initial determinations: 1208

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z Matters Prescribed by Statute Applicable to the Agency or to Any Specific Regulation or Class of Regulations None. Mandate on Local Agencies and School Districts None. The Exchange has determined that this pro- posed regulatory action does not impose a mandate on local agencies or school districts. Cost T o Any Local Agency or School District Which Must Be Reimbursed In Accordance With Government Code Sections 17500 Through 17630 None. This proposal does not impose costs on any lo- cal agency or school district for which reimbursement would be required pursuant to

Part 7 (commencing with

Section 17500) of Division 4 of the Government Code. COSTS OR SA VINGS TO STATE AGENCIES The proposal results in additional costs to the Ex- change but will have no impact on other agencies or the State General Fund. The Exchange is currently com- pletely funded by assessments on premiums charged by Qualified Health Plans. Other Nondiscretionary or Savings Imposed on Local Agencies None. This proposal does not impose other nondis- cretionary costs or savings on local agencies. Costs or Savings in Federal Funding to the State The proposal will not result in costs or savings in fed- eral funding to the state.

Significant Effect on Housing Costs None. Significant, Statewide Adverse Economic Impact Directly Affecting Business, Including the Ability of California Businesses to Compete With Businesses in Other States None.

RESULTS OF THE ECONOMIC IMPACT ASSESSMENT/ANALYSIS The Exchange concludes regarding the proposed reg- ulations that it is: (1) unlikely that the proposal will create or eliminate any jobs in the State; (2) unlikely that the proposal will create or eliminate businesses within the State; (3) unlikely that the proposal will impact the expansion of businesses currently doing business in California; and (4) likely that the health and welfare of consumers will benefit from the proposed regulation.

EFFECT ON SMALL BUSINESS This proposed regulation is not expected to create or expand small business within the State of California. The current MMCPE/MMCP program has been operat- ing since 2012. Considering that many regulations in this package currently exist as emergency regulations, there are no anticipated effects on small businesses. COST IMPACTS ON A REPRESENTATIVE PRIV ATE PERSON OR BUSINESS The Exchange is not aware of any cost impacts that a representative private person or business would neces- sarily incur in reasonable compliance with the proposed action.

CONSIDERATION OF ALTERNATIVES In accordance with Government Code

Section 11346.5(a)(13), the Exchange must determine that no reasonable alternative considered or that has otherwise been identified and brought to the attention of the Ex- change would be more effective in carrying out the pur- pose for which this 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 in effectuating the purpose of the statute and appli- cable federal regulations.

This proposed action is the most effective in effectuating the purpose of the statute and applicable federal regulations. CONTACT PERSONS Inquiries concerning the proposed administrative ac- tion may be directed to: Faviola Adams Regulations Coordinator California Health Benefit Exchange (Covered California) 1601 Exposition Boulevard Sacramento, CA 95815 Telephone: (916) 228−8668 1209

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z The backup contact person for inquiries concerning the proposed administrative action may be directed to: Brian Kearns Attorney California Health Benefit Exchange (Covered California) 1601 Exposition Boulevard Sacramento, CA 95815 Telephone: (916) 228−8843 Please direct copies of the proposed text of the regula- tions, the Initial Statement of Reasons, the modified text of the regulations, if any, or other information upon which the rulemaking is based to Annalisa Franco at the above contact information.

A V AILABILITY OF STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS AND RULEMAKING FILE The Exchange will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office at the above address. As of the date of this notice is published in the Notice Reg- ister, the rulemaking file consists of this notice, the pro- posed text of the regulation and the Initial Statement of Reasons. Copies may be obtained by contacting Annal- isa Franco at the address or phone number listed above.

A V AILABILITY OF CHANGED OR MODIFIED TEXT After holding a hearing, if requested, and considering all timely and relevant comments received, the Ex- change may adopt the proposed regulations substantial- ly as described in this notice. If the Exchange makes modifications which are sufficiently related to the origi- nally proposed text, it will make the modified text to the public at least 15 days before the Exchange adopts the regulations as revised. Please send requests for copies of any modified regulations to the attention of Faviola Adams at the address indicated above.

The Exchange will accept written comments on the modified regula- tions for 15 days after the date on which they are made available. A V AILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons may be obtained by contacting Faviola Adams at the above address. A V AILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Rulemaking, the Initial Statement of Reasons and the proposed text of the regulations in underline can be accessed through our website at https://hbex.coveredca.com/regulations. 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 BY OCTOBER 21, 2019 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) 227−4011 or by letter to: Commission on POST Attn: David Cheng 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 Commis- sion on POST) and Penal Code

section 13506 (POST authority to adopt regulations). This proposal is intend- ed to interpret, implement, and make specific Penal Code

section 13503(

e) which authorizes POST to de- velop and implement programs to increase the effec- tiveness of law enforcement, including programs in- volving training and education courses. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW In June of 2017, the Commission approved POST to conduct a 1−year Course Certification Pilot. During the pilot, a safety attestation was developed to clarify pre- senters’ responsibilities regarding student and instruc- tor safety . To eliminate or minimize this risk to the ex- 1210

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z tent possible, course presenters must ensure the course is taught in accordance with all required safety policies and procedures, and in any event, is conducted in a man- ner designed to minimize the risk of injury. The pro- posed regulatory action for the use of a Safety Policy Attestation will help ensure training activities involv- ing a risk for injury are in accordance with safety poli- cies and procedures and course staff and instructors are aware of and follow these policies and procedures dur- ing every course administration.

The proposed regula- tory action will require the course presenter to agree to a Safety Policy Attestation when submitting a safety poli- cy as part of the course certification process. The specific benefits anticipated by the proposed amendments to the regulations will be to help ensure courses posing a risk of injury will be conducted in a manner that minimizes the risk of injury, thus prevent- ing injury, minimizing lost work time, reducing medical expenses, and minimizing liability risks.

Requiring the presenter to agree to a Safety Policy Attestation helps emphasize the importance of the requirement to the pre- senters, and more clearly puts the presenter on notice of the obligation to develop proper safety procedures, and ensure instructors, staff, and students are aware of their respective obligations during each initial and subse- quent administration of the course. The proposed amendments also clarify when a bud- get is required during the course certification process.

The proposed amendments allow POST to hold course presenters more accountable on course expenditures when the State funds the course. These benefits will contribute to the increased effec- tiveness of law enforcement standards for peace offi- cers in preserving peace, protection of public health and safety, and welfare of California. During the process of developing these regulations and amendments, POST has conducted a search of any similar regulations on this topic and has concluded that 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 that 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 Affect- ing Government Code sections 17500−17630 requires 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 regulations will not have a significant statewide adverse economic impact directly affecting California businesses, including the ability to compete with businesses in other states.

The Commission on Peace Officer Standards and Training has found that the proposed amendments will not affect California busi- nesses, including small businesses, because the Com- mission sets selection and training standards for law en- forcement which does not impact California business- es, 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 that a representative private person or business would nec- essarily incur in reasonable compliance with the pro- posed action.

Affect on Housing Costs: The Commission on Peace Officer Standards and Training has made an initial de- termination that the proposed regulations would have no affect on housing costs. RESULTS OF ECONOMIC IMPACT ASSESSMENT per Government Code

section 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 businesses or create, or expand, businesses in the State of California. The proposed amendments of the regulations will in- crease the effectiveness of law enforcement standards for peace officers in preserving peace, protection of 1211

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z public health and safety, and welfare of California. Ad- ditionally, the proposed amendments make the regula- tions compliant with Penal Code

section 13515.29 and

section 13515.295. There would be no impact that would affect worker safety or the state’s environment. COST IMPACT ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES The Commission is not aware of any cost impacts that a representative private person or business would nec- essarily incur in reasonable compliance with the pro- posed action.

CONSIDERATION OF ALTERNATIVES To take this action, the Commission must determine that no reasonable alternative considered by the Com- mission, or otherwise identified and brought to the Commission, would be more effective in carrying out the purpose for which the action is proposed; or would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost−effective to affected private persons and equally effective in implementing the statutory policy or other provision of law than the proposed action.

CONTACT PERSON Questions regarding this proposed regulatory action may be directed to David Cheng, Commission on POST, 860 Stillwater Road, Suite 100, West Sacramen- to, CA 95605−1630, by phone at (916) 227−4855. Gen- eral questions regarding the regulatory process may be directed to Katie Strickland 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 at 860 Stillwater Road, Suite 100, West Sacramento, CA 95605−1630.

These documents are also located on the POST Website at: http://www.post.ca.gov/regulatory−actions.aspx. 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 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

PUBLIC COMMENTS DUE BY OCTOBER 21, 2019 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) 227−6932, by email to Steve Harding, or by letter to: Commission on POST Attn: Steve Harding 860 Stillwater Road, Suite 100 West Sacramento, CA 95605−1630 Steve.Harding@post.ca.gov AUTHORITY AND REFERENCE This proposal is made pursuant to the authority vest- ed by Penal Code

section 13503 (authority of Commis- sion on POST) and Penal Code

section 13506 (POST authority to adopt regulations). This proposal is intend- ed to interpret, implement, and make specific Penal Code

section 13503(

e) which authorizes POST to de- velop and implement programs to increase the effec- tiveness of law enforcement, including programs in- volving training and education courses. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW As part of an ongoing process, staff reviews regula- tions and procedures related to basic courses to deter- mine if revisions are necessary. Current regulation requires Basic Course presenters t o provide training and testing to trainees as stated in Ti- 1212

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z tle 11, Division 2,

Section 1005 of the California Code of Regulations. Regulation requires that all peace offi- cers complete the Regular Basic Course before being assigned duties which include the exercise of peace of- ficer powers. Many of the trainees are attending a Basic Courses administered by a presenter that is not their em- ploying agency. Currently, the course presenters are not required to notify the employing agencies when a trainee fails a POST mandated test. A trainee’s agency should have the opportunity to provide remedial train- ing or counseling to a trainee prior to the presenter ad- ministering the retest.

Thus, POST recommends regu- lation requiring presenters to notify a trainee’s employ- ing agency prior to the presenter administering a retest. Additionally, the Basic Training Bureau has experi- enced situations when presenters have administered POST mandated tests and had numerous initial test fail- ures. The presenter then conducted remedial training and administered a retest. At the conclusion of the retest an unusually high number of students have failed the retest, therefore being dismissed from a Basic Course.

There have been incidents where it has later been deter- mined the presenter has not administered the test appro- priately. Had the presenter contacted the Basic Training Bureau after the initial test failure, POST could have potentially determined the test was not administered properly and invalidated the test.

The benefit anticipated by the proposed amendments to the regulations will be to update the testing process for Peace Officer Basic Courses, which will increase the effectiveness of law enforcement standards for peace officers in preserving peace, protection of public health and safety, and welfare of California. During the process of developing these regulations and amendments, POST has conducted a search of any similar regulations on this topic and has concluded that these regulations are neither inconsistent nor incompat- ible with existing state regulations.

The effect of this proposed regulation will be to re- quire presenters to notify the POST Basic Training Bu- reau for abnormal pass or fail of any required POST sce- nario test or exercise test prior to retesting. The pro- posed regulations will ensure that the trainee’s agency has been notified prior to the trainee’s retest. The pro- posed effective date is January 1, 2020. DOCUMENT INCORPORATED BY REFERENCE

Section D — Commission Procedure D−1 revised 01/01/2020. ADOPTION OF PROPOSED REGULATIONS Following the public comment period, the Commis- sion may adopt the proposal substantially as set forth without further notice or may modify the proposal if such modifications remain sufficiently related to the text as described in the Informative Digest.

If the Com- mission makes changes to the language before the date of adoption, the text of any modified language, 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 period 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 official designat- ed in this notice. The Commission will accept written comments on the modified text for 15 days after the date that the revised text is made available.

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 regulations will not have a significant statewide adverse economic impact directly affecting California business, including the ability of California businesses to compete with businesses in other states.

The Commission on Peace Officer Standards and Train- ing has found that the proposed amendments will not af- fect California businesses, including small businesses, because the Commission sets selection and training standards for law enforcement which does not impact California businesses, including small businesses. Effect on Housing Costs: The Commission on Peace Officer Standards and Training has made an initial de- termination that the proposed regulations would have no effect on housing costs. 1213

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z RESULTS OF ECONOMIC IMPACT ASSESSMENT per Government Code

section 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 businesses or create, or expand, businesses in the State of California. The proposed amendments of regulations will in- crease the effectiveness of law enforcement standards for peace officers in preserving peace, protection of public health and safety, and welfare of California. There would be no impact that would affect worker safety or the state’s environment.

COST IMPACT ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES The Commission is not aware of any cost impacts that a representative private person or business would nec- essarily incur in reasonable compliance with the pro- posed action.

CONSIDERATION OF ALTERNATIVES To take this action, the Commission must determine that no reasonable alternative considered by the Com- mission, or that has otherwise been identified and brought to the attention of the Commission, 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 pro- posed action, or would be more cost−effective to affect- ed private persons and equally effective in implement- ing the statutory policy or other provision of law than the proposed action.

CONTACT PERSON Questions regarding this proposed regulatory action may be directed to Steve Harding, Commission on POST, 860 Stillwater Road, Suite 100, West Sacramen- to, CA 95605−1630 at (916) 227−2816. General ques- tions regarding the regulatory process may be directed to Heidi Hernandez at (916) 227−4261, or by FAX at (916) 227−5271.

TEXT OF PROPOSAL Individuals may request copies of the exact language f the proposed regulations and of the initial statement f reasons, and the information the proposal is based pon, from the Commission on POST at 860 Stillwater oad, Suite 100, West Sacramento, CA 95605−1630. hese documents are also located on the POST ebsite. A V AILABILITY AND LOCATION OF THE RULEMAKING FILE AND THE FINAL STATEMENT OF REASONS The rulemaking file contains all information upon hich POST is basing this proposal and is available for ublic inspection by contacting the person(

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

s) named above. TITLE 11. DEPARTMENT OF JUSTICE Notice is hereby given that the Department of Justice “Department”) proposes to make permanent the emer- ency repeal of sections 999.12 and 999.13 of

chapter 6, division 1, of title 11 of the California Code of Regu- ations, including the form escrow agreement incorpo- ated therein, and the emergency adoption of

section 99.12, including the Approved Tobacco Escrow greement, JUS−TOB6 (Rev. 5/2019), which is incor- orated by reference therein, after considering all com- ents, objections, and recommendations regarding the roposed action. PUBLIC HEARING No public hearing is scheduled. Any interested per- on or their duly authorized representative may request, n writing, a public hearing pursuant to

section 11346.8, ubdivision (a), of the Government Code. The request or hearing must be received by the Department’s con- act person designated below no later than 15 days prior o the close of the written comment period. WRITTEN COMMENT PERIOD Any interested person or their duly authorized repre- entative may submit written comments relevant to the roposed regulatory action. Written comment must be eceived by the Department by October 21, 2019. o o u R T W w p a o t ( g 1 l r 9 A p m p s i s f t t s p r 1214

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z Only comments received by that time will be consid- ered. Written comments must be submitted to: Barry Alves Department of Justice Tobacco Litigation and Enforcement

Section P.O. Box 944255 Sacramento, California 94244−2550 Email: barry.alves@doj.ca.gov AUTHORITY AND REFERENCE CITATIONS Authority:

Section 30165.1, Revenue and Taxation Code;

Section 104557, Health and Safety Code. Reference:

Section 30165.1, Revenue and Taxation Code; Sections 104556 and 104557, Health and Safety Code. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW

Section 999.12 The prior version of this regulation has been repealed, and a new version has been adopted by the emergency rulemaking. This regulation applies to Non− Participating Manufacturers (“NPMs”) which must es- tablish and maintain tobacco escrow accounts for the benefit of California and other releasing parties under the MSA pursuant to Health and Safety Code sections 104555−104557, and the financial institutions that serve as escrow agents for NPMs with tobacco escrow accounts for the benefit of California.

Section 999.12 explains the requirements for estab- lishing and maintaining a qualified tobacco escrow ac- count and incorporates a new version of the escrow agreement. California’s Approved Tobacco Escrow Agreement JUS−TOB6 (Rev. 5/2019) (“Approved To- bacco Escrow Agreement”) ensures that NPMs and es- crow banks properly hold, track, and monitor tobacco escrow funds on deposit for the benefit of California.

Section 999.12 provides that other than filing blank spa- ces and checking boxes, no deviation, amendments, or other changes to California’s Approved Tobacco Es- crow Agreement shall be permitted without the prior written approval of the Attorney General.

Section 999.13 The prior version of

section 999.13 has been repealed by the emergency rulemaking and its operative terms have been consolidated into

section 999.12. ANTICIPATED BENEFITS This rulemaking action protects the public health and welfare by providing clear guidance to NPMs and es- crow banks to ensure successful compliance with the law. The revised

definitions of principal and interest will prevent NPMs from prematurely accessing escrow funds. The agreement clarifies and improves provisions regarding the procedures for account ledgers, NPMs that fail to appoint successor agents after their escrow bank resigns, and reports to California. Furthermore, the terms and conditions in Approved Tobacco Escrow Agreement were reorganized, consolidated, and edited to make it much easier to interpret, understand, and reference. FORMS AND STANDARDS INCORPORA TED BY REFERENCE California Approved Tobacco Escrow Agreement, JUS−TOB6 (Rev. 5/2019) is incorporated by reference into the new version of

Section 999.12.

SUMMARY OF EXISTING LAWS AND REGULATIONS RELATED DIRECTLY TO THE PROPOSED RULEMAKING NPMs must deposit funds into qualified escrow funds governed by state law based upon their sales of ciga- rettes and RYO in California. Unless specific condi- tions are satisfied, NPMs are statutorily prohibited from accessing or using the principal on deposit in the tobac- co escrow accounts for twenty−five years. (Health and Saf. Code,

section 104557, subd. (b).) NPMs and their escrow banks must execute a California Attorney Gen- eral approved escrow agreement and ensure the funds are held and monitored in compliance with California law. (Rev. and Tax. Code, sections 30165.1, subd. (c)(2)(a).) The Office of the Attorney General is responsible for establishing and updating California’s tobacco escrow agreement. (Rev. and Tax. Code, sections 30165.1, sub- divisions (b)(3)(

D) and (o).) Title 11 of the California Code of Regulations,

Chapter 16,

section 999.12 gov- ern tobacco escrow accounts and the Approved Tobac- co Escrow Agreement. The permanent adoption of

section 999.12, including the Approved Tobacco Escrow Agreement, address several issues that emerged after California’s last revi- sion of the regulation and escrow agreement. The re- vised

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z signs, and reports to California. Furthermore, the terms and conditions in Approved Tobacco Escrow Agree- ment were reorganized, consolidated, and edited to make it much easier to interpret, understand, and reference. EV ALUATION OF THE PROPOSED REGULATION FOR CONSISTENCY AND COMPATIBILITY WITH EXISTING STATE REGULATIONS The Department has performed an evaluation of whether

section 999.12 and the Approved Tobacco Es- crow Agreement are inconsistent or incompatible with existing state regulations and determined that the regu- lation is not inconsistent or incompatible with existing state regulations.

Section 999.12 and the Approved To- bacco Escrow Agreement are the only regulation and forms for California that establish whether a tobacco es- crow account constitutes a qualified escrow fund. MANDATE ON LOCAL AGENCIES OR SCHOOL DISTRICTS No mandates or other impacts are imposed on any lo- cal agencies or school districts. SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT DIRECTLY AFFECTING BUSINESS The Department has determined that the proposed regulation will not have a significant, statewide, ad- verse impact affecting business.

All of the tobacco com- panies and escrow banks addressed by these revisions currently have tobacco escrow accounts and tobacco es- crow agreements. COST ESTIMATES/IMPACT OF REGULATORY ACTION The Department has assessed the potential for signifi- cant statewide adverse impact that might result from the proposed emergency action and has determined: There will be no costs or savings to local agencies or school districts; There will be no costs or savings in federal funding to the State; There will be no effect on housing costs. There will be no costs or savings to any state agency.

The Department anticipates that the regulations will require approximately fifty NPMs to each spend ap- proximately $1,500 reviewing the new regulation and executing the Approved Tobacco Escrow Agreement. Moreover, the Department anticipates that approxi- mately eight to ten escrow banks will each spend ap- proximately $2,500 reviewing and executing several Approved Tobacco Escrow Agreements with NPMs.

At least quarterly, the escrow bank shall provide the Department with a bank statement that clearly reflects the deposits and withdrawals by the NPM, the manner in which all escrow principal is invested, including the face value, cost basis, and market value of each invest- ment, a description of each investment including the CUSIP number, its date of purchase and maturity date.

Annually, the escrow agent shall: (1) provide the De- partment with a ledger reflecting the minimum amount of escrow principal on deposit for California and all de- posits, withdrawals, and other transactions since, at least, the NPM’s first deposit with the escrow agent; or (2) confirm that it intends to reasonably rely upon the ledger prepared by the Department. SMALL BUSINESS DETERMINATION The Department has determined that the proposed regulations affect small business.

RESULTS OF THE ECONOMIC IMPACT ASSESSMENT The Department concludes it is unlikely the proposed regulation will affect: (1) the creation or elimination of any jobs within California; (2) the creation of new busi- nesses or the elimination of existing businesses within California; and (3) the expansion of businesses current- ly doing business within California. For additional ben- efit analysis, please see, Informative Digest/Policy Statement Overview under heading the titled, “Antici- pated Benefits”.

The regulation will benefit the public by ensuring that NPMs and escrow banks properly hold, track, and mon- itor tobacco escrow funds on deposit for the benefit of California. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5(a)(13), the Department must determine that no reasonable alternative considered by the agency or that has otherwise been identified and brought to the atten- tion of the agency would be more effective in carrying out the purpose for which the action is proposed, 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. 1216

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z CONTACT PERSON Inquiries concerning the proposed administrative ac- tion may be directed to: Barry Alves Department of Justice Tobacco Litigation and Enforcement

Section 1300 I Street, P.O. Box 944255 Sacramento, California 94244−2550 Email: barry.alves@doj.ca.gov. Telephone: (916) 210−7838 Questions regarding procedure, comments, or the substance of the proposed action should be addressed to the above contact person. In the event the contact per- son is unavailable, inquiries regarding the proposed ac- tion may be directed to the following backup contact person: Debra Berry Department of Justice Tobacco Litigation and Enforcement

Section 1300 I Street, P.O. Box 944255 Sacramento, California 94244−2550 Email: Debra.Berry@doj.ca.gov Telephone: (916) 210−7799 A V AILABILITY OF STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS, AND RULEMAKING FILE The Department will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office at the above address.

As of the date this notice is published in the Notice Regis- ter, the rulemaking file consists of this notice, the ex- press terms of the regulations, the Initial Statement of Reasons, any information upon which the proposed rulemaking is based on, and an economic impact assess- ment contained in the Initial Statement of Reasons. Copies may be obtained by contacting the name, ad- dress or phone number listed above. A V AILABILITY OF CHANGED OR MODIFIED TEXT After considering all timely and relevant comments received, the Department may adopt the proposed regu- lation substantially as described in this notice.

If the De- partment makes modifications which are sufficiently related to the originally proposed text, it will make the modified text (with the changes clearly indicated) avail- able to the public for at least 15 days and accept written comments before adopting the regulation. Copies of any modified text will be available on the Department’s website at https://oag.ca.gov/tobacco/directory/ regulations. A V AILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons may be obtained by contacting Barry Alves.

A V AILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Action, the Initial Statement of Reasons, and the text of the regulations in underline and strikeout format, as well as the Final Statement of Reasons once completed, can be accessed through the Department’s website at https://oag.ca.gov/ tobacco/directory/regulations. TITLE 13. CALIFORNIA HIGHWAY PATROL Inhalation Hazards Safe Stops (CHP−R−2019−06203) The California Highway Patrol (CHP) proposes to amend regulations in Title 13 of the California Code of Regulations (CCR), Division 2,

Chapter 6,

Article 2.5,

Section 1157.21, Stops, to update the list of safe stops for commercial vehicles transporting inhalation haz- ards on highways in the state. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Pursuant to Division 14.3, Transportation of Inhala- tion Hazards, commencing with

Section 32100 of the California Vehicle Code (CVC), the CHP shall adopt regulations specifying routes to be used in the trans- portation of inhalation hazards. The CVC requires the CHP to keep information current in regulations, with maps clearly indicating designated routes and a list of locations for inspection stops, required inspection stops, and safe stopping places.

The proposed amend- ments will not change any inhalation hazards routes and will only update the information for inspection stops, required inspection stops, and stopping places to be used by carriers of inhalation hazards along the desig- nated inhalation hazards routes. The CHP’s field commands conduct annual surveys on inhalation hazards routes and stops to determine if changes are necessary. After CHP field commands in- 1217

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z spected the locations of listed business establishments serving as safe stopping places, business owners have expressed their willingness to provide their business lo- cation and service information in the CCR by signing the CHP 114, Designation as Safe Stopping Place. Pro- posed changes have received consultation and concur- rence from the State Fire Marshal. This proposed regulatory action will continue to pro- vide a nonmonetary benefit to the protection of the health, safety, and welfare of California’s residents, workers, and environment.

The changes to the applica- tion of the regulation are not substantive and bring the regulation in conformance with existing statute. The proposed changes update and clarify safe stopping places designated for carriers transporting inhalation hazards, and contribute to transportation safety and public health. During the process of developing these regulations and amendments, the CHP has conducted a search of any similar regulations on this topic and has concluded that these regulations are neither inconsistent, nor in- compatible, with existing federal and state regulations.

PUBLIC COMMENT Any interested person may submit written comments on the proposed action via facsimile at (916) 322−3154, by electronic mail to cvsregulations@chp.ca.gov, or by writing to: California Highway Patrol Commercial Vehicle

Section Attention: Dr. Tian−Ting Shih P.O. Box 942898 Sacramento, CA 94298−0001 Written comments must be received by October 21, 2019. PUBLIC HEARINGS No public hearing has been scheduled. If any person desires a public hearing, a written request must be re- ceived by the CHP, Commercial Vehicle

Section (CVS), no later than 15 days prior to the close of the written comment period. A V AILABILITY OF INFORMATION The CHP has available for public review an initial statement of reasons for the proposed regulatory action, the information upon which this action is based, and the proposed regulation text in strikeout and underline for- mat. Requests to review or receive copies of this infor- mation should be directed to the CHP either at the above address, by facsimile at (916) 322−3154, or by calling the CHP, CVS, at (916) 843−3400.

All requests for in- formation should include the following: the title of the rulemaking package, the requester’s name, proper mail- ing address (including city, state, and zip code), and a daytime telephone number in case the information is in- complete or illegible. The rulemaking file is available for inspection. Inter- ested parties are advised to call CHP, CVS, for an ap- pointment. All documents regarding the proposed action are available through the CHP’s website at https://www. chp.ca.gov/News−Alerts/Regulatory−Actions.

Any person desiring to obtain a copy of the adopted text and a final statement of reasons may request them at the above noted address. Copies will also be posted on the CHP website. CONTACT PERSON Any inquiries concerning the written materials per- taining to the proposed regulations or the substance of the proposed regulations should be directed to Dr. Tian− Ting Shih or Sergeant Adam Roha, at (916) 843−3400. ADOPTION OF PROPOSED REGULATIONS After consideration of public comments, the CHP may adopt the proposal substantially as set forth with- out further notice.

If the proposal is modified prior to adoption and the change is not solely grammatical or substantive in nature, the full text of the resulting regu- lation, with the changes clearly indicated, will be made available to the public for at least 15 days prior to the date of adoption.

FISCAL IMPACT AND RESULTS OF THE ECONOMIC IMPACT ASSESSMENT The CHP has made an initial determination that this proposed regulatory action: (1) will have no effect on housing costs; (2) will not impose any new mandate up- on local agencies or school districts; (3) will involve no nondiscretionary cost or savings to any local agency, no cost to any local agency or school district for which Government Code (GC) Sections 17500−17630 require reimbursement, no cost or savings to any state agency, nor costs or savings in federal funding to the state; (4) will neither create nor eliminate jobs in the State of Cal- ifornia, nor result in the elimination of existing busi- nesses or create or expand businesses in the State of California; and (5) will not have a significant statewide adverse economic impact directly affecting businesses, including the ability of California businesses to com- pete with businesses in other states. 1218

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z Benefits of the Proposed Action: The proposed regu- lation updating designated routes for carriers transport- ing inhalation hazards will continue to provide benefits, including the nonmonetary benefit of protecting public health and safety for residents, workers, and the envi- ronment by providing a regulatory basis for enforce- ment efforts as they relate to safety compliance ratings. The regulated community is encouraged to respond during the comment period of this regulatory process if significant impacts are identified.

COST IMPACTS ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES The CHP is not aware of any cost impacts that a repre- sentative private person or business would necessarily incur in reasonable compliance with the proposed action. EFFECT ON SMALL BUSINESSES The CHP has determined that the proposed regulato- ry action will not affect small businesses. The action is intended to clarify and update the designated safe stop- ping places for commercial vehicles transporting in- halation hazards on highways. As a result, no small business will be affected by the update. ALTERNATIVES In accordance with

Section 11346.5(a)

(13) GC, the CHP must determine that no reasonable alternative con- sidered by the CHP, or otherwise identified and brought to the attention of the CHP, 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 provision of law.

The CHP invites in- terested parties to present statements or arguments with respect to alternatives to the proposed regulations dur- ing the written comment period. AUTHORITY This regulatory action is being taken pursuant to Sec- tion 32102, CVC. REFERENCE This action implements, interprets, or makes specific Sections 32101, 32102, 32103, 32104, and 32105, CVC. TITLE 13. CALIFORNIA HIGHWAY PATROL RADIOACTIVE MATERIALS SHIPMENT — SAFE HA VEN (CHP−R−2019−06208) The California Highway Patrol (CHP) proposes to amend regulations in Title 13 of the California Code of Regulations, Division 2,

Chapter 6,

Article 2.7,

Section 1158.2, regarding the through transportation of High- way Route Controlled Quantity (HRCQ) shipments of Radioactive Materials (RAM). INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Pursuant to

Section 33000 of the California Vehicle Code (CVC), the CHP shall adopt regulations specify- ing the routes to be used in the transportation of HRCQ RAM and the time that shipments may occur.

Section 37.75(a)(2)(ii), Title 10 of the Code of Federal Regula- tions administered by the United States Nuclear Regu- latory Commission, requires carriers preplan and coor- dinate with each state through which the shipment will pass to identify safe havens. To be more consistent with state statutes and federal regulations, the proposed reg- ulation amendments will provide more clarity on the times and routes selected, and potential safe havens available for the transportation of HRCQ RAM.

The proposed regulation amendments are developed to enhance public health and safety, and have received concurrences from the California Department of Public Health, State Fire Marshal, and California Department of Transportation. This proposed regulatory action will continue to pro- vide a nonmonetary benefit to the protection of the health, safety, and welfare of California’s residents, workers, and environment. The changes to the applica- tion of the regulation are not substantive and bring the regulation in conformance with existing statute.

The proposed regulation updates for carriers transporting HRCQ RAM on highways contribute to transportation safety and public health. During the process of developing these regulations and amendments, the CHP has conducted a search of a ny similar regulations on this topic and has concluded 1219

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z that these regulations are neither inconsistent, nor in- compatible, with existing federal and state regulations. PUBLIC COMMENT Any interested person may submit written comments on the proposed action via facsimile at (916) 322−3154, by electronic mail to cvsregulations@chp.ca.gov, or by writing to: California Highway Patrol Commercial Vehicle

All requests for in- formation should include the following: the title of the rulemaking package, the requester’s name, proper mail- ing address (including city, state, and zip code), and a daytime telephone number in case the information is in- complete or illegible. The rulemaking file is available for inspection. Inter- ested parties are advised to call CHP, CVS, for an appointment. All documents regarding the proposed action are available through the CHP’s website at https://www. chp.ca.gov/News−Alerts/Regulatory−Actions.

Benefits of the Proposed Action: The proposed regu- lation providing more clarity on the time and routes se- lected, and potential safe havens available for the trans- portation of HRCQ RAM will continue to provide ben- efits, including the nonmonetary benefit of protecting public health and safety for residents, workers, and the environment by providing a regulatory basis for en- forcement efforts as they relate to safety compliance ratings. The regulated community is encouraged to respond during the comment period of this regulatory process if significant impacts are identified.

COST IMPACTS ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES The CHP is not aware of any cost impacts that a repre- sentative private person or business would necessarily 1220

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z incur in reasonable compliance with the proposed action. EFFECT ON SMALL BUSINESSES The CHP has determined that the proposed regulato- ry action will not affect small businesses. The action is intended to provide more clarity on the times and routes selected, and potential safe havens available for the transportation of HRCQ RAM on highways. As a re- sult, no small business will be affected by the update. ALTERNATIVES In accordance with

Section 11346.5(a)

Section 33000, CVC. TITLE 17. AIR RESOURCES BOARD NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED ADDITIONAL REQUIREMENT FOR ADV ANCE PAYMENT OF CERTAIN FUNDS REGULATION 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 Additional Requirement for Advance Payment of Certain funds Regulation. DA TE: October 24, 2019 TIME: 9:00 a.m.

LOCATION: 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 24, 2019, and may continue at 8:30 a.m., on October 25, 2019. This item is scheduled to be heard on the Board’s Consent Calendar, unless removed upon the request of a Board member or if someone in the audience submits a request−to−speak card on this item.

Please consult the agenda for the hearing, which will be available at least ten days before October 24, 2019, 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 6, 2019.

Written comments not physically submitted at the hear- ing must be submitted on or after September 6, 2019, and received no later than October 21, 2019. CARB requests that when possible, written and email state- ments be filed at least 10 days before the hearing to give CARB staff and Board members additional time to con- sider each comment. The Board also encourages mem- bers of the public to bring to the attention of staff in ad- vance 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,

section 6250 et seq.), your written and oral comments, attachments, and associated contact in- 1221

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z formation (e.g., your address, phone, email, etc.) be- come part of the public record and can be released to the public 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, 39603.1. This action is proposed to im- plement, interpret, and make specific California Health and Safety Code,

section 39603.1. INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW (Gov. Code,

section 11346.5, subd. (a)(3)) Sections Affected: Proposed adoption of Subchapter 4.1, Advance Payments, sections 91040, 91041, 91042, 91043, 91044, title 17, California Code of Regulations. BACKGROUND AND EFFECT OF THE PROPOSED REGULATORY ACTION Existing law generally designates the CARB as the State agency with the primary responsibility for the control of vehicular and area sources air pollution, and air quality management districts with the primary re- sponsibility for the control of air pollution from all sources other than vehicular and area sources.

Various CARB projects and programs provide fund- ing to grantees to reduce greenhouse gas emissions, cri- teria pollutants, and toxic air contaminants to provide health benefits to the public. The Legislature authorized CARB to provide ad- vance payments to grantees of a grant program or project if CARB determines specified conditions are met in Senate Bill No. 854,

Chapter 51, 2018, which es- tablished Health and Saf. Code

section 39603.1. Health and Saf. Code

section 39603.1 (

b) further required CARB, in consultation with Department of Finance (DOF), to adopt a regulation implementing this

section to ensure the moneys are used properly. CARB proposes to adopt Subchapter 4.1, Advance Payments, sections 91040 through 91044, Title 17, Cal- ifornia code of Regulations, to further define terms, set forth a review process, as well as add additional criteria to be met in order to qualify for an advance payment. This proposed regulation order would enable grantees to more easily understand how to request advance pay- ments, streamline the review and approval process, and provide procedural safeguards to ensure the advance payments are adequately regulated.

Upon successfully meeting all criteria in statute and the proposed regula- tion, advance payments may be made available to grantees. CARB may also consider other changes to the sec- tions affected during the course of this rulemaking process. OBJECTIVES AND BENEFITS OF THE PROPOSED REGULATORY ACTION In 2018, Senate Bill No. 854,

Chapter 51,

Section 11, 2018 established Health and Saf. Code

section 39603.1, which authorizes CARB to provide advance payments to grantees of a grant program or project if CARB deter- mines specified conditions are met. HSC § 39603.1 re- quired CARB to adopt a regulation to ensure the ad- vance payments are used properly and to consult with DOF in the development of the regulation. The pro- posed regulatory action is intended to properly carry out the provisions of Health and Saf. Code

section 39603.1, and as required, CARB consulted with DOF during de- velopment of the regulation. The proposed regulation would specify in greater de- tail certain terms set forth in Health and Saf. Code sec- tion 39603.1, provide a review process, and criteria nec- essary for requesting an advance payment. The pro- posed regulation would bring greater efficiency and transparency to the advance payment process by creat- ing a more consistent, uniform, and clear review process.

For these reasons, the proposed regulation is needed to further specify the terms and requirements considered by CARB in approving an advance pay- ment. There are no expected benefits to public health and safety, worker safety, or the environment as a result of this rulemaking. COMPARABLE FEDERAL REGULATIONS There are no federal regulations comparable to the proposed regulation. The proposed regulation does not conflict with federal regulations. AN EV ALUATION OF INCONSISTENCY OR INCOMPATIBILITY WITH EXISTING STATE REGULATIONS (Gov. Code

section 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. 1222

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z DISCLOSURES REGARDING THE PROPOSED REGULATION FISCAL IMPACT/LOCAL MANDATE DETERMINATION REGARDING THE PROPOSED ACTION (Gov. Code

section 11346.5, subds. (a)(5) and (6)): The determinations of the Board’s Executive Officer concerning the costs or savings incurred by public agencies and private persons and businesses in reason- able compliance with the proposed regulatory action are presented below.

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 would not create costs or savings to any State agency, would not create costs or savings in federal funding to the State, would create minimal costs, but no local mandate to any local agency or school district as it is a voluntary process.

It is estimated that the proposed regulation is expected to impose an annual cost of $47,000 on all air districts in the current fiscal year (2019/2020) and each of two subsequent fiscal years and a total cost of $235,000 over the 5 year life of the regulation assuming all affected air districts participate in the program every year. For additional information, see

Chapter VII of the Initial Statement of Reasons (ISOR). There is no other nondiscretionary cost or sav- ings to State or local agencies. HOUSING COSTS (Gov. Code,

section 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,

section 11346.3, subd. (a), 11346.5, subd. (a)(7), 11346.5, subd. (a)(8)) The Executive Officer has made an initial determina- tion that the proposed regulatory action would not have a significant statewide adverse economic impact direct- ly affecting businesses, including the ability of Califor- nia businesses to compete with businesses in other states, or on representative private persons. RESULTS OF THE ECONOMIC IMPACT ANALYSIS/ASSESSMENT (Gov. Code,

section 11346.5, subd. (a)(10)) NON−MAJOR REGULATION: Statement of the Results of the Economic Impact Assessment (EIA): 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 Analysis in the Initial Statement of Reasons (ISOR). Benefits of the Proposed Regulation: The proposed regulation will specify in greater detail certain terms set forth in Health and Saf. Code

section 39603.1, provide a review process, and criteria neces- sary for requesting an advance payment. The regulation will bring greater efficiency and transparency to the ad- vance payment process by creating a more consistent, uniform, and clear review and approval process. For these reasons, the proposed regulation is needed to fur- ther specify the terms and requirements considered by CARB in approving an advance payment. A

summary of these benefits is provided, please refer to “Objectives and Benefits”, under the Informative Di- gest of Proposed Action and Policy Statement Over- view Pursuant to Government Code 11346.5(a)(3) dis- cussion on page three of this notice. COST IMPACTS ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES (Gov. Code,

section 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 is aware of the cost impacts that a representative private person or business would necessarily incur in reasonable compli- ance with the proposed action. The proposed regulation allows a grantee to receive advance payment limited to Health and Saf. Code sec- tion 39603.1.

CARB expects this regulation to have minimal statewide economic impact directly affecting businesses, including the ability of California business- es to compete with businesses in other states, or on rep- resentative private persons. The affected entities are various types of small, community−based, environmental organizations with 100 or fewer employees. All the affected entities are lo- cated and service their customers in California. 1223

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z Participation in the advance payment program is vol- untary and affected entities will incur no costs if they do not participate. Those entities that find their participa- tion are economically advantageous may incur some costs. CARB has identified 26 affected entities as cur- rent grantees qualified for advance payment. The cost is estimated here based on the assumption that all affected entities will participate in the program; therefore, repre- senting the high cost estimate.

Based on a survey of af- fected entities such as an organization like the Commu- nity Housing Development Corporation (CHDC), CARB determined the average time spent by a typical affected entity to complete an advance payment request is 12 hours. Based on the classification reported to CARB by the grantees, the representative filling out the forms is comparable to an administrative service man- ager in California with an average wage of $82 per hour.

Therefore, the total cost for additional staff time needed to complete an advance payment request form is esti- mated to be approximately $26,000 annually [i.e., 26 (applications) x 12 hours x $82 (wage rate)] or $130,000 over the 5−year life of the regulation assum- ing that all affected entities participate in the program every year.

In accordance with Government Code sec- tion 11346.3, the proposed regulatory action will not af- fect the creation or elimination of jobs within the State of California, the creation of new businesses or elimina- tion of existing businesses within the State of Califor- nia, or the expansion of businesses currently doing busi- ness within the State of California. EFFECT ON SMALL BUSINESS (Cal. Code Regs., tit. 1,

section 4, subds. (

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

section 4, that the proposed regulatory action would affect small businesses. All affected grantees are considered small businesses with 100 or fewer employees. If a grantee chose to re- quest an advance payment program in any year, the enti- ty is expected to spend about 12 hours on average to complete an advance payment request. At an average wage and benefit rate of $82 per hour, the application cost for additional staff time is estimated to be approxi- mately $1,000 [i.e., 12 hours x $82 (wage and benefit rate)]. CONSIDERATION OF ALTERNATIVES (Gov. Code,

section 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−effec- tive to affected private persons and equally effective in implementing the statutory policy or other provisions of law. For additional information, see

Chapter IX of the ISOR. ENVIRONMENTAL ANALYSIS CARB has determined that the proposed action is ex- empt from California Environmental Act (CEQA) un- der the “general rule” or “common sense” exemption (14 CCR 15061(b)(3)). The common sense exemption states a project is exempt from CEQA if “the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a signifi- cant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environ- ment, the activity is not subject to CEQA.” The Advance Payment Regulation sets forth guide- lines and provides CARB the legal authority to the pro- posed regulation order defines certain terms included in Health and Saf. Code

section 39603.1, and sets forth the review process and criteria grantees must meet in order to request an advance payment. This regulation further clarifies and defines the administrative process re- quired for advancing moneys for CARB’s grant pro- grams and projects. Therefore, this regulation does not directly affect air quality or any other environmental re- source area. CARB, as the lead agency under CEQA, has re- viewed the proposed action and concluded that it is ex- empt pursuant to CEQA Guidelines

section 15061(b)(3) because it can be seen with certainty that there is no possibility that the proposed action may re- sult in significant adverse impact on the environment. 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- 1224

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z 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 intérprete 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, Brandy Hunt, Branch Manager, Contracts/ Procurements/Grants Branch, at (916) 327−1799 or (designated back−up contact) Adam Yang, Manager, Budgets/Fees Branch, at (916) 327−8885. 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: Public Hearing to Consider the Proposed Ad- vance Payment Regulation. 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, Air Resources Board, 1001 I Street, Visitors and Environmental Services Center, First Floor, Sacramento, California, 95814, on September 3, 2019.

Further, the agency representative to whom non− substantive inquiries concerning the proposed adminis- trative action may be directed is Bradley Bechtold, Reg- ulations Coordinator at (916) 322−6533. The Board staff has compiled a record for this rulemaking action, which includes all the information upon which the pro- posal is based. This material is available for inspection upon request 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 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 https://ww3.arb.ca.gov/rulemaking/2019/ advancedpayment2019. 1225

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z TITLE 20. CALIFORNIA ENERGY COMMISSION Modification of Regulations Governing the Power Source Disclosure Program California Energy Commission Docket Number 16−OIR−05 September 2019 INTRODUCTION The California Energy Commission proposes to modify existing regulations for the Power Source Dis- closure (PSD) program established under the Public Utilities Code

section 398.1 et seq. The regulations are found at Title 20, California Code of Regulations, sec- tions 1390−1394. The modifications would affect Sec- tions 1391−1394 and create new Sections 1394.1−1394.2. The proposed action is taken under the authority of sections 25213 and 25218(

e) of the Public Resources Code, and sections 398.4(k)(2)(F)(

i) and 398.5(

c) of the Public Utilities Code. The proposed modifications to the regulations will implement, inter- pret, and make specific requirements found in Public Utilities Code sections 398.1−398.5. This rulemaking will update the Power Source Dis- closure Program to incorporate the new statutory re- quirements that the Power Content Label show the greenhouse gas (GHG) emissions intensity of each electricity product offered for sale and the amount of unbundled renewable energy credits (RECs) that is part of such sale.

The rulemaking also updates other aspects of the program to facilitate implementation, improve clarity, and ensure that the statutory directive to produce a label that is accurate, reliable, and simple to under- stand is attained. NOTICE THAT A PUBLIC HEARING IS SCHEDULED The Energy Commission will hold a public hearing for consideration and possible adoption of the proposed regulations on the following date and time unless the Energy Commission decides to consider changes to the express terms of the proposed regulations.

Commission Business Meeting November 13, 2019 Beginning 10:00 a.m. (Pacific Time) California Energy Commission 1516 9 th Street Sacramento, CA 95814 Rosenfeld Hearing Room (Wheelchair accessible) Audio for the hearing will be broadcast over the inter- net. For details, go to https://energy.webex.com/. If you have a disability and require assistance to par- ticipate in the hearing, please contact Yolanda Rushin at (916) 654−4310 at least 5 days in advance.

Public Adviser: The Energy Commission’s Acting Public Adviser, Jennifer Martin−Gallardo, is available to assist any per- son who wishes to participate in this proceeding. For as- sistance from the Public Adviser’s Office, please call (916) 654−4489 or toll−free in California at (800) 822−6228 or contact publicadviser@energy.ca.gov. News Media Inquiries: News media inquiries should be directed to the Media and Public Communications Office at (916) 654−4989, or by e−mail at mediaoffice@energy.ca.gov. ORAL STATEMENTS AND WRITTEN COMMENT PERIOD (Government Code

section 11346.5(a)(15)) Interested persons may present oral and written state- ments, arguments, or contentions regarding the pro- posed regulations at the hearing, or may submit written comments to the Commission for consideration on or prior to October 21, 2019. The Energy Commission ap- preciates receiving written comments at the earliest possible date.

Please submit comments to the Energy Commission using the Energy Commission’s e−commenting feature by going to the Energy Commission’s Power Source Disclosure AB 1110 Rulemaking webpage at https:// www.energy.ca.gov/power_source_disclosure/, select- ing Docket Number 16−OIR−05, then selecting the “Submit e−comment” link. A full name, e−mail ad- dress, comment title, and either a comment or an at- tached document (.doc, .docx, or .pdf format) is manda- tory.

After a challenge−response test used by the system to ensure that responses are generated by a human user and not a computer, click on the “Agree and Submit Your Comment” button to submit the comment to the Energy Commission’s Docket Unit. Please note that written comments, attachments, and associated contact information included within the written comments and attachments (e.g., your address, phone, e−mail, etc.) become part of the viewable public record. 1226

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z You are encouraged to use the electronic filing sys- tem, described above, to submit comments. All written comments submitted prior to the hearing must be sub- mitted to the docket unit. If you are unable to submit electronically, a paper copy of your comments may be sent to: Docket Unit California Energy Commission Docket Number 16−OIR−05 1516 9 th Street, MS−4 Sacramento, CA 95814 Telephone: (916) 654−5076 Or by e−mail to: DOCKET@energy.ca.gov Or faxing them to Dockets at (916) 654−4354 STATUTORY AUTHORITY AND REFERENCE (Government Code

Section 11346.5(a)(2) and California Code of Regulations, title 1,

section 14) Public Resources Code sections 25213 and 25218(

e) and Public Utilities Code sections 398.4(k)(2)(F)(

i) and 398.5(

c) authorize the Energy Commission to adopt the proposed Express Terms. The proposed Express Terms would implement, in- terpret, and make specific provisions of Public Utilities Code sections 398.1, 398.2, 398.4, and 398.5. INFORMATIVE DIGEST (Government Code

Section 11346.5(a)(3)) Existing laws and regulations related directly to the proposed action and effect of the proposed action. (Government Code

section 11346.5(a)(3)(A)) The Power Source Disclosure (PSD) program was es- tablished by Senate Bill 1305 (Sher,

Chapter 796, Statutes of 1997) in an effort to provide information to California consumers about the mix of energy resources generated and purchased by retail suppliers to serve re- tail customers. The program’s intent, as described in statute, is to require the disclosure of “accurate, reliable, and simple to understand information on the sources of energy that are used to provide electric services.” 1 In 2016, the Energy Commission adopted modifications to the regulation to incorporate statutory changes re- quired by Assembly Bill (AB) 162 (Ruskin,

Chapter 313, Statutes of 2009) and AB 2227 (Bradford,

Chapter 616, Statutes of 2012) that modified program rules and clarified reporting requirements. Under the current program, retail suppliers of elec- tricity are required to disclose information annually to 1 Public Utilities Code,

section 398.1, subd. (b). their end−use customers about fuel sources of their power mix, which is the mix of resource types compris- ing the electricity portfolio sold to them during the pre- vious calendar year. To complete this requirement, re- tail suppliers report to the California Energy Commis- sion (Energy Commission) their gross electricity pro- curements, resales of electricity, the net electricity pro- curements, and retail sales for the previous calendar year. The Energy Commission uses this information, in part, to generate California’s Total System Power Mix.

The California Total System Power Mix is used to cre- ate a template Power Content Label which is provided to retail suppliers. Retail suppliers then disclose the power mix associated with their electricity portfolios, as well as California’s overall power mix on a product− specific Power Content Label which is sent to con- sumers. If a retail supplier offers more than one electric- ity product, also referred to as a portfolio, separate Pow- er Content Labels must be provided for each product, allowing customers to compare the resources used for each available electricity product they can purchase.

Passed in 2016, Assembly Bill 1110 (Ting,

Chapter 656, Statutes of 2016) modifies the PSD program by further requiring retail suppliers to disclose the green- house gas (GHG) emissions intensity associated with each electricity portfolio that serves retail load. GHG emissions intensity is a rate of emissions per unit of electricity. Retail suppliers are required to begin dis- closing the GHG intensity associated with their elec- tricity portfolios on the Power Content Label in 2020 for the 2019 reporting year.

AB 1110 exempts new com- munity choice aggregators (CCA) from the GHG emis- sions intensity disclosure requirement for at least the first 24 months and not more than the first 36 months of retail sales and contains a provision for adjusting the disclosed GHG emissions intensity for publicly owned utilities that procure excess zero−GHG resources in a prior year under certain circumstances. AB 1110 also requires that any additional marketing or retail product claims by a retail supplier related to GHG emissions in- tensity be consistent with the methodology established by the Energy Commission.

Prior law did not specify a treatment of unbundled re- newable energy credits (RECs) under the PSD pro- gram. AB 1110 requires retail suppliers to disclose to customers its unbundled RECs in a format determined by the Energy Commission.

The proposed regulations would establish an ac- counting methodology that will calculate GHG emis- sions intensities according to the sources of electricity delivered to California and not allow unbundled RECs to adjust the GHG emissions of delivered electricity, which is consistent with the GHG accounting method- ology established by the California Air Resource Board through previous regulatory proceedings. The pro- 1227

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z posed regulations would clarify the existing calculation of the fuel mix by clearly establishing that the fuel mix percentages are based on procurements of electricity and therefore exclude unbundled RECs. The proposed regulation establishes a method and format for disclos- ing retail suppliers’ procurement of unbundled RECs as a percentage of retail sales in a separate

section of the Power Content Label. The proposed regulation would also recognize retail suppliers’ prior investments in firmed−and−shaped contracts that support the genera- tion of renewable energy that is not delivered to Califor- nia by requiring retail suppliers to disclose GHG emis- sions associated with the substitute electricity that is de- livered to California under contracts entered into start- ing January 2019. DIFFERENCE FROM EXISTING COMPARABLE FEDERAL REGULATION OR STATUTE (Government Code

section 11346.5(a)(3)(B)) There are no comparable federal regulations or statutes. POLICY STATEMENT OVERVIEW REGARDING BROAD OBJECTIVES OF THE REGULATIONS AND THE SPECIFIC BENEFITS ANTICIPATED BY THE PROPOSED AMENDMENTS (Government Code

section 11346.5(a)(3)(C)) The broad objective of this rulemaking is to amend the regulations to implement new statutory require- ments under AB 1110 to ensure customers receive accu- rate, reliable, and simple to understand information about the sources of energy, and the associated emis- sions of greenhouse gases, that are used to provide elec- tric services.

The Energy Commission also intends to clarify existing reporting requirements and amend reg- ulatory provisions to improve the accuracy, reliability, and transparency of information retail electricity sup- pliers disclose about the sources of electricity serving customers. Finally, the Energy Commission proposes non−substantive grammatical and numbering changes for clarity and concision. The proposed modifications will produce several benefits. The proposed modifications clarify existing requirements, which will reduce the potential for mis- understanding by reporting entities.

The implementa- tion of GHG emissions intensity disclosure require- ments will establish accurate and reliable GHG ac- counting, subjecting all entities that provide retail elec- tricity to customers in California with a standardized method for calculating GHG emissions intensities. Dis- closure of the GHG emissions intensities will better in- form California customers about the GHG emissions of the electricity sources serving them. And the separate disclosure of unbundled RECs will improve the trans- parency of the Power Content Label and help customers distinguish procurement of unbundled RECs.

CONSISTENCY OR COMPATIBILITY WITH EXISTING STATE REGULATIONS (Government Code

section 11346.5(a)(3)(D)) Consistency with Renewable Portfolio Standard (RPS) In developing the proposed Express Terms, the Ener- gy Commission reviewed regulations related to renew- able energy and GHG emissions accounting. The State performs renewable energy accounting in the Renewables Portfolio Standard (RPS), which the Energy Commission and the California Public Utilities Commission implement through regulations and guide- lines. Generally speaking, for the RPS, RECs are issued for every megawatt hour (MWh) of electricity generat- ed from renewable energy facilities.

RECs from facili- ties certified to participate in California’s RPS are eligi- ble to be used by load serving entities to meet the pro- curement requirements of California’s RPS provided they meet all eligibility requirements. RPS differenti- ates RECs into three general categories based on differ- ing contractual arrangements and delivery characteris- tics. The RPS requires that a majority of procurement under contracts entered into after June 1, 2010, be from Portfolio Content Category 1, generally meaning RECs bundled with renewable electricity delivered to a Cali- fornia balancing authority.

RPS also allows other REC categories, specifically firmed−and shaped RECs and unbundled RECs, in restricted quantities. The Energy Commission has sought consistency with the RPS regulations where practicable. The proposed regulations rely on RPS certification to identify eligible renewable generators. The proposed regulations also use the REC categories established by RPS to differen- tiate various REC products.

To the extent that inconsistencies exist between RPS and the PSD regulation in their treatment of RECs, these inconsistencies exist because the programs serve different purposes and the RPS statutes are inconsistent with statutory mandates governing the PSD program. PSD was established to provide consumers information on the sources of electricity procured in the prior year.

Compliance under the RPS is based on multi−year com- pliance periods allowing procurement to vary year to year as long as compliance period targets are met, bank- ing of early procurement and excess procurement from prior compliance period is allowed to some degree, and RECs may be retired for up to 36 months after the actual generation of the renewable energy. Therefore, the pro- curement in any single calendar year will not translate 1228

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 36-Z to the procurement applied within a multi−year compli- ance requirement. While the PSD statutes do not pro- vide a specific treatment of RECs, the statutes call for a program that discloses the sources of generation serv- ing customers over the previous calendar year.

Adapt- ing RPS’ Portfolio Content Category restrictions that require procurement of a specified percentage of port- folio content category 1 resources and limiting portfolio content 3 resources over a compliance period to the single−year accounting requirement of the PSD statutes would impose constraints on retail suppliers’ procure- ment activities that are more stringent than those al- lowed under the more flexible multi−year compliance periods of RPS.

At the same time, unbundled RECs, al- though allowed in limited amounts for the RPS, are not a source of electricity, and other electricity must be pur- chased to actually serve the customer, so inclusion of unbundled RECs as a source of electricity or as a method to modify the disclosure of the fuel types of ac- tual electricity procured by retail suppliers to serve cus- tomers undermines the transparency and accuracy of the PSD program.

Consequently, the Energy Commis- sion has proposed regulatory language that seeks to har- monize with RPS where practicable while adhering to the differing statutory requirements and intent of PSD. Consistency with the Mandatory Reporting Regulation (MRR) The State has also established goals for the reduction of GHG emissions and programs to accomplish these goals.

Per AB 32 (Stats. 2006, ch. 488), the California Air Resources Board (CARB) maintains an economy− wide GHG inventory for the State that is consistent with Intergovernmental Panel on Climate Change practices to allow for comparison of statewide GHG emissions with those at the national level and with

Document details

Collection	California Z Register
Citation	Cal. Reg. Notice Reg. 2019, No. 36
Type	gazette
Language	en
Format	pdf
Source	CA_ZREG
Identifier	bdac0caa21bcf4598fe1da6e24eda7fe3a596e36

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