CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 49-Z
1653
 
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 FINANCE
NOTICE OF INTENTION TO AMEND THE 
CONFLICT–OF–INTEREST CODE OF THE 
DEPARTMENT OF FINANCE
NOTICE IS HEREBY GIVEN that the Department 
of Finance pursuant to the authority vested in it by sec -
tion 87306 of the Government Code, proposes amend -
ment to its conflict–of–interest code. A comment pe -
riod has been established commencing on December 
3, 2021 and closing on January 17, 2022. All inquiries 
should be directed to the contact listed below.
The Department of Finance proposes to amend its 
conflict–of–interest code to include employee posi -
tions that involve the making or participation in the 
making of decisions that may foreseeably have a ma -
terial effect on any financial interest, as set forth in 
subdivision (a) of section 87302 of the Government 
Code. The amendment carries out the purposes of the 
law and no other alternative would do so and be less 
burdensome to affected persons.
Changes to the conflict–of–interest code include 
changes in assigned reporting categories. The chang -
es will bring the conflict–of–interest code current 
with the existing organizational structure of the 
Department of Finance.
The proposed amendment and explanation of the 
reasons can be obtained from the agency’s contact.
Any interested person may submit written com -
ments relating to the proposed amendment by submit -
ting them no later than January 17, 2022, or at the con -
clusion of the public hearing, if requested, whichever 
comes later. At this time, no public hearing is sched -
uled. A person may request a hearing no later than 
January 2, 2022.
The Department of Finance 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: Larissa Stockton, Chief of 
Administrative Services, 916–445–3368 x3402, 
larissa.stockton@dof.ca.gov .
TITLE 3.  DEPARTMENT OF FOOD 
AND AGRICULTURE
DIVISION 3.  ECONOMICS  
CHAPTER 1. FRUIT AND VEGETABLE 
STANDARDIZATION  
SUBCHAPTER 3.  EGGS  
SECTION 1354.  MARKING 
REQUIREMENTS
NOTICE IS HEREBY GIVEN that the California 
Department of Food and Agriculture (Department) 
proposes to amend the proposed regulations described 
below after considering all comments, objections, and 
recommendations regarding the proposed actions.
PUBLIC HEARING
The Department has not scheduled a public hearing 
on this proposed action. However, the Department 
will hold a hearing if it receives a written request for 
a public hearing from any interested person, or his or 
her authorized 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 
representative, may submit written comments relevant 
to the proposed regulatory action to the Department. 
Comments may also be submitted via facsimile (FAX) 
at (916) 900–5334 or by e–mail to michael.abbott@
cdfa.ca.gov . The written comment period begins on 
December 3, 2021 and closes on January 17, 2022. The 
Department will consider only comments received at 
the Department by that time. Submit comments to:CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 49-Z
1654Michael Abbott, Supervising Environmental  
 Scientist  
Meat Poultry and Eggs Safety Branch  
California Department of Food and Agriculture  
1220 N Street, Sacramento, CA 95814  
Telephone: (916) 900–5062; Fax: (916) 900–5334
AUTHORITY AND REFERENCE
Food and Agricultural Code (FAC) section 14 
authorizes the Department to adopt rules and 
regulations in accordance with the Administrative 
Procedure Act. Additional authority vested in the 
FAC grants the Department Secretary the authority to 
amend or repeal rules and regulations.
FAC section 407 authorizes the Secretary of the 
Department to adopt such regulations as are reasonably 
necessary to carry out the provisions of the FAC which 
the Secretary is directed or authorized to administer 
or enforce.
FAC section 27531 specifies, in part, that the director 
may adopt regulations relating to the preparation 
for market and marketing of shell eggs as they 
determine are reasonably necessary to carry out the 
purposes of the chapter including the requirements for 
marking containers, displays and advertising of eggs 
sold in California, or any other matter necessary to 
accomplishment the purpose of this chapter
FAC section 27521 specifies, in part, that the purpose 
of the chapter is to ensure the orderly marketing of 
shell eggs in a uniform manner and to prevent the 
marketing of deceptive or mislabeled containers of 
eggs.
FAC section 27573 specifies the purposes of the 
Shell Egg Food Safety Committee which include the 
quality of shell eggs and uniformity of inspection.
FAC section 27631 provides that it is unlawful to 
violate any provision of the chapter or any regulation 
adopted pursuant to it.
FAC section 27637 provides, in part, that it is 
unlawful for any person to make any statement about 
the quality, size, weight, source, origin, or any other 
matter relating to eggs which is false, deceptive or 
misleading.
INFORMATIVE DIGEST/POLICY 
STATEMENT OVERVIEW
This rulemaking action proposed to amend the 
California Code of Regulations (CCR), Title 3, 
Division 3, section 1354. Specifically, this rulemaking 
action clarifies and makes specific the requirements to 
label consumer containers of eggs as “cage free”.
The Department’s Egg Safety and Quality 
Management (ESQM) Program is responsible for the 
regulatory authority for shell eggs and egg products produced, shipped, or sold in California. This includes 
the marketing and truth in labeling of shell eggs or egg 
products.
Benefits of the Proposed Action: This proposed 
regulatory action will assure the Consumers of 
California that when they purchase eggs that are 
labeled “cage free” that they meet minimum standards 
outlined in the cage free definition. Producers will 
have a consistent standard applied equally across the 
industry for eggs sold to California consumers.
CONSISTENCY EVALUATION
The Department has determined that this proposed 
regulatory action is not inconsistent with existing 
regulations. After conducting a review for any 
regulations that would relate to or affect this area, 
the Department has concluded that these are the only 
regulations that concern the marketing of shell eggs.
DISCLOSURES REGARDING THE  
PROPOSED ACTION
The Department has made the following initial 
determinations:
Mandate on local agencies and school districts: 
None.
Cost or Savings to any state agency: None.
Cost to any local agency or school district which must 
be reimbursed in accordance with the Government 
Code section 17500 through 17630: None.
Other nondiscretionary cost or savings imposed on 
local agencies: None.
Cost or savings in federal funding to the state: None.
Significant, statewide adverse economic impact 
directly affecting business including the ability of 
California businesses to compete with businesses in 
other states: None
Cost impacts on a representative private person or 
business: The Department is not aware of any cost 
impacts that a representative private person or business 
would necessarily incur in reasonable compliance 
with the proposed action. This is more consistent with 
the Administrative Procedure Act (APA) language of 
Government Code section 11346.5(a)(9).
RESULTS OF THE ECONOMIC IMPACT 
ASSESSMENT/ANALYSIS
The Department concludes that it is: (1) likely that 
the proposal will not create or eliminate jobs and not 
eliminate existing business; (2) likely that this proposal 
will not create new business or expand current 
business opportunities; (3) likely that this proposal 
will not lead to the expansion of businesses currently 
doing business within the state; (4) Also, enhanced CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 49-Z
1655
enforcement activities will protect consumers and the 
industry, and assure that they are provided an accurate 
and standardized definition of “cage free”. Finally, 
this proposed rulemaking will have no impact on the 
general public, protection of public health and safety, 
worker safety or the environment.
Significant effect on housing costs: None.
SMALL BUSINESS DETERMINATION
The Department has initially determined that the 
proposed changes to the regulations would have no 
significant impact directly affecting small businesses. 
These regulations do not require any additional costs 
or outputs for small businesses. These regulations do 
not establish any new limitations on small businesses. 
All egg producers would be operating under the same 
regulatory structure with regards to the regulatory 
changes.
CONSIDERATION OF ALTERNATIVES
In accordance with Government Code section 
11346.5, subdivision (a)(13), the Department must 
determine that no reasonable alternative it considered 
or that has otherwise been identified and brought to the 
attention of the Department would be more effective 
in carrying out the purpose for which the action is 
proposed 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 alternative to not pursue this regulatory action 
would result in deceptive or fraudulent labeling and 
an unfair marketing of the eggs. The adoption of a 
different definition from the one proposed here could 
cause conflict and confusion as this definition supports 
the most common understanding of cage free.
CONTACT PERSONS
Michael Abbott, Supervising Environmental  
 Scientist  
Department of Food and Agriculture  
Animal Health & Food Safety Services Meat,  
 Poultry, and Egg Safety Branch  
1220 N Street, Sacramento, CA 95814  
Telephone: (916) 900–5103  
E–mail: michael.abbott@cdfa.ca.gov
The backup contact person is:Andrew Halbert, Staff Services Manager  
Department of Food and Agriculture  
Animal Health & Food Safety Services  
1220 N Street, Sacramento, CA 95814  
Telephone: (916) 900–5372  
E–mail: andrew.halbert@cdfa.ca.gov
Please direct requests for copies of the proposed 
text of the regulations, the initial statement of reason, 
the modified text of the regulation, if any, or other 
information upon which the rulemaking is based to 
Michael Abbott at the above address.
AVAILABILITY OF STATEMENT OF 
REASONS AND TEXT OF  
PROPOSED REGULATIONS
The Department will have the rulemaking file 
available for inspection and copying throughout the 
rulemaking process at its office at: 2800 Gateway Oaks 
Drive, Suite 100, Sacramento, CA 95833. As of the 
date this notice is published in the Notice Register, the 
rulemaking file consists of this notice, the proposed 
text of the regulations, and the initial statement 
of reasons. Copies may be obtained by contacting 
Michael Abbott at the address or phone number listed 
previously.
AVAILABILITY OF CHANGED OR  
MODIFIED TEXT
After considering all timely and relevant comments 
received, the Department may amend the proposed 
regulations substantially as described in this notice. 
If the Department makes modifications, which are 
sufficiently related to the originally proposed text, 
it will make the modified text (with the changes 
clearly indicated) available to the public for at least 
15 days before the Department adopts the regulations 
as revised. Please send requests for copies of any 
modified regulations to the attention of Maria Tenorio 
at the address listed above. The Department will accept 
written comments on the modified regulations for 15 
days after the date on which they are made available.
AVAILABILITY OF FINAL  
STATEMENT OF REASONS
Upon its completion, copies of the Final Statement 
of Reasons may be obtained by contacting Michael 
Abbott at the address listed previously.
A V AILABILITY OF  
DOCUMENTS ON THE INTERNET
Copies of the Notice of Proposed Rulemaking, 
the Initial Statement of Reasons, and the text of the CALIFORNIA REGULATORY NOTICE REGISTER 2021, VOLUME NUMBER 49-Z
1656regulations in underline and strikeout can be accessed 
through the Department’s website at: http://www.cdfa.
ca.gov/ahfss/regulations.html
TITLE 4.  ALTERNATIVE ENERGY 
AND ADVANCED TRANSPORTATION 
FINANCING AUTHORITY
NOTICE IS HEREBY GIVEN that the California 
Alternative Energy and Advanced Transportation 
Financing Authority (“CAEATFA” or the “Authority”) 
proposes to amend Sections 10031 through 10036 of 
Article 2, Division 13, Title 4 of the California Code 
of Regulations concerning the implementation of the 
Sales and Use Tax Exclusion Program after consider -
ing all comments, objections, and recommendations 
regarding the proposed action.
PUBLIC HEARING
The Authority has not scheduled a public hearing on 
this proposed action. However, a public hearing will 
be held if any interested person, or his or her duly au -
thorized representative, requests a public hearing to 
be held relevant to the proposed action by submitting 
a written request to the Agency Contact Person iden -
tified in this notice no later than 5:00 p.m., fifteen (15) 
days prior to the close of the written comment period.
WRITTEN COMMENT PERIOD
Any interested person, or his or her authorized rep -
resentative, may submit written comments relevant to 
the proposed regulations to the Authority. The written 
comment period for the proposed regulations ends on 
January 18, 2022 . All comments must be submitted 
in writing to the Agency Contact Person identified in 
this Notice by that time in order for them to be consid -
ered by the Authority.
In the event that substantial changes are made to 
the regulations during the written comment peri -
od, the Authority will also accept additional written 
comments limited to any changed or modified reg -
ulations for fifteen (15) calendar days after the date 
on which such regulations, as changed or modified, 
are made available to the public pursuant to Title 1, 
Chapter 1, Article 2, Section 44 of the California Code 
of Regulations. Such additional written comments 
should be addressed to the Agency Contact Person 
identified in this Notice.
AUTHORITY AND REFERENCE
Authority:  Public Resources Code (PRC) Sections 
26009 and 26011  .8 . Revenue and Taxation Code 
Section 6010  .8. Public Resources Code Section 26009 authorizes CAEATFA to adopt necessary regulations 
relating to its authority established by the Act, and 
Public Resources Code Section 26011.8 provides the 
authority to develop the Sales and Use Tax Exclusion 
Program. Revenue and Taxation Code Section 6010.8 
provides CAEATFA the ability to provide financial as -
sistance in the form of a sales and use tax exclusion.
Reference:  Section 26011  .8 of the Public Resources 
Code  . This regulation will implement, interpret, and 
make specific Section 26011.8 of the Public Resources 
Code.
INFORMATIVE DIGEST/POLICY 
STATEMENT OVERVIEW
The California Alternative Energy and Advanced 
Transportation Financing Authority Act establish -
es the California Alternative Energy and Advanced 
Transportation Financing Authority (“CAEATFA”) 
and requires CAEATFA to establish programs to pro -
vide Financial Assistance to Participating Parties for 
Projects related to alternative energy sources and ad -
vanced transportation.
Existing law authorizes CAEATFA to provide a 
sales and use tax exclusion (“STE”) to certain types of 
manufacturers and recyclers to promote the creation 
of California–based manufacturing, California–based 
jobs, advanced manufacturing, the reduction of green -
house gases, or reductions in air and water pollution or 
energy consumption. (PRC Section 26011.8(a).)
Existing law specifies criteria by which CAEATFA 
shall evaluate Project Applications, including the ex -
tent to which the Project will create new, permanent 
full–time jobs in California; the extent of unemploy -
ment in the area in which the Project is proposed to be 
located; and, to the extent feasible, the extent to which 
the Project, or the product produced by the Project, 
results in a reduction of greenhouse gases, a reduction 
in air or water pollution, an increase in energy effi -
ciency, or a reduction in energy consumption, beyond 
what is required by federal or state law or regulation; 
and any other factors the Authority deems appropri -
ate in accordance with Section 26011.8. (PRC Section 
26011.8(d).)
In October 2019, Governor Newsom signed into law 
Assembly Bill 176 (Cervantes, Chapter 672, Statutes 
of 2019), which adds to the Application evaluation cri -
teria the extent to which a Project will result in the loss 
of permanent, full–time jobs in California, including 
the average and minimum wage for each classification 
of full–time employees proposed to be hired or not 
retained. Existing law also limits the amount of STE 
CAEATFA may grant for each calendar year to $100 
million. (PRC Section 26011.8(h).)
Existing Program regulations establish eligibility 
and evaluation criteria by which Applications are re -