California Register, 2015, Number 24. June 12, 2015

• Library: California Register
• Published date: 12 June 2015
• Year: 2015

JUNE 12, 2015REGISTER 2015, NO. 24–Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW

OFFICE OF ADMINISTRATIVE LAW

EDMUND G. BROWN, JR., GOVERNOR

(Continued on next page)

Time-

Dated

Material

PROPOSED ACTION ON REGULATIONS

TITLE 4. CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY

Rate Reduction Bonds — Notice File No. Z2015–0602–02 939. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TITLE 10. GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT

Made in California Programs — Notice File No. Z2015–0602–07 943. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TITLE 16. BOARD OF REGISTERED NURSING

Fees Increase — Notice File No. Z2015–0602–06 945. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TITLE 20. CALIFORNIA ENERGY COMMISSION

ARFVTP Funding Restrictions — Notice File No. Z2015–0602–04 947. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TITLE 27. OFFICE OF ENVIRONMENTAL HEALTH HAZARD ASSESSMENT

Maximum Allowable Dose Levels for Six Chemicals (Proposition 65) — Notice File No. Z2015–0602–03 952. . . . . . .

GENERAL PUBLIC INTEREST

DEPARTMENT OF FISH AND WILDLIFE

American Peregrine Falcon — Dr. Christopher Briggs, Golden Gate Raptor Observatory 955. . . . . . . . . . . . . . . . . . .

PROPOSITION 65

OFFICE OF ENVIRONMENTAL HEALTH HAZARD ASSESSMENT

Please see “PROPOSED ACTION ON REGULATIONS” above for the agency’s Notice of Proposed

Rulemaking Action

OAL REGULATORY DETERMINATIONS

CALIFORNIA HORSE RACING BOARD

2015 OAL DETERMINATION NO. 6

Memorandum Titled: “Instructions Pursuant to Rule 1855, Medication Procedures and Related Instructions,”

Dated February 28, 2014 and Issued by the California Horse Racing Board 956. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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DEPARTMENT OF CORRECTIONS AND REHABILITATION

2015 OAL DETERMINATION NO. 7

Notice of Change to Department Operations Manual Chapter 3, Article 20, Seniority Status (Transmittal

Letter Number: 12–15), Revised November 1, 2012, issued by the California Department of Corrections

and Rehabilitation 960. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SUMMARY OF REGULATORY ACTIONS

Regulations filed with the Secretary of State 965. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sections Filed, December 31, 2014 to June 3, 2015 969. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CALIFORNIA REGULATORY NOTICE REGISTER 2015, VOLUME NO. 24-Z

939

PROPOSED ACTION ON

REGULATIONS

Information contained in this document is

published as received from agencies and is

not edited by Thomson Reuters.

TITLE 4. CALIFORNIA POLLUTION

CONTROL FINANCING AUTHORITY

The Authority proposes to adopt Sections 8130–8138

of Title 4 of the California Code of Regulations (the

“Adopted Regulations”) concerning the administration

of the California Pollution Control Financing Author-

ity’s review of the issuance of rate reduction bonds.

These Adopted Regulations are necessary to implement

and make specific Article 12 of the California Pollution

Control Financing Authority Act (the “Act”). The pro-

posed regulations have been approved by OAL on an

emergency basis and this proposed rulemaking would

make these changes permanent.

AUTHORITY AND REFERENCE

Authority: Government Code Section 6588.7(b)(7).

Section 6588.7(b)(7) of the Government Code autho-

rizes the Authority to adopt emergency regulations and

instructs the Office of Administrative Law to consider

such regulations to be “necessary for the immediate

preservation of the public peace, health and safety or

general welfare.”

Reference: Government Code Division 7, Chapter 5.

This regulation will make specific Sections 6585

through 6599.3 of the Government Code.

INFORMATIVE DIGEST/POLICY STATEMENT

OVERVIEW

Existing law establishes the California Pollution

Control Financing Authority and authorizes the Au-

thority to develop and administer procedures to review

the issuance of rate reduction bonds pursuant to

Government Code Section 6588.7(b)(7).

Assembly Bill 850 [AB 850 (Nazarian) Chapter 636,

Statutes of 2013] authorizes joint power authorities to

issue rate reduction bonds to finance publicly owned

utility projects until December 31, 2020. The bonds are

to be secured by utility project property and repaid

through a separate utility project charge imposed on the

utility customers’ bills. Each publicly owned utility will

have the ability to establish and collect a utility project

charge, as a separate nonbypassable charge, to finance

the rate reduction bonds. The issuance of rate reduction

bonds is a benefit to the publicly owned utility, as well

as the customer because the rates of the utility plus the

utility project charge are expected to be lower than the

rates if the project was financed through revenue bonds.

While the bonds are issued by the local joint power au-

thorities, AB 850 includes an additional state review

process by the CPCFA.

Assembly Bill 850 requires CPCFA to review each is-

sue of rate reduction bonds for financing costs of a util-

ity project and to determine whether the issue is quali-

fied for issuance under the provisions of the statute

(Government Code, section 6588.7(b)(2)(A)–(B)).

CPCFA is also required to establish procedures, adopt

emergency regulations with the OAL, and report these

review determinations to the Legislature annually.

An issue is qualified if four main factors are satisfied.

First, the project to be financed must meet statutory cri-

teria. The second criterion requires that the municipal

utility elects to finance the project pursuant to the stat-

ute. The third criterion states that the financing costs

shall fall within the normal range of costs for compara-

ble types of debt issuance. Lastly, the rates of the utility

plus new charge are collectively expected to be lower

than the utility rates would be if the project was fi-

nanced through the issuance of the utility’s own reve-

nue bonds.

On August 15, 2014, CPCFA staff posted the AB 850

webpage that provided the program implementation

plan, the full text of AB 850, proposed draft regulations

and contact information. This posting began a 30–day

comment period where stakeholders could propose

comments to the draft regulations. CPCFA received

comments from one stakeholder and incorporated some

of them into revised draft regulations. CPCFA staff also

hosted a workshop on October 14, 2014 to discuss the

revised draft regulations before presenting them to the

CPCFA board. The public will be able to further com-

ment during the OAL Regulatory Process.

Government Code Section 11346.5(a)(3)(D) re-

quires that the notice of proposed rulemaking shall in-

clude, “an evaluation of whether the proposed regula-

tion is inconsistent or incompatible with existing state

regulations.” CPCFA staff reviewed the California

Code of Regulations and found no existing regulations

dealing with this issue. Therefore, CPCFA believes that

the proposed regulation is neither inconsistent nor in-

compatible with existing state regulations. Also, the is-

suance of rate reduction bonds is a benefit to the public-

ly owned utility, as well as the customer because the

rates of the utility plus the utility project charge are ex-

pected to be lower than the rates if the project was fi-

nanced through revenue bonds. The proposed amend-

ment and objective is stated below.