ALJ/VSK/oma Date of Issuance 12/24/2009
Decision 09-12-044 December 17, 2009
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Southern California Edison Company |
Application 07-06-031 (Filed June 29, 2007) |
DECISION GRANTING A CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY FOR THE
TEHACHAPI RENEWABLE TRANSMISSION PROJECT
(SEGMENTS 4-11)
DECISION GRANTING A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE TEHACHAPI RENEWABLE TRANSMISSION PROJECT (SEGMENTS 4-11) 11
3. Standard of Review and Governing Law 77
4. Need Pursuant to Section 399.2.5 99
4.1. Need Determination in this Case is for the Entire Project and Not Individual Segments 99
4.2. The Three Prong Test of D.07-03-012 1111
4.2.1. Project Brings Otherwise Unavailable Renewable Generation to the Grid 1212
4.2.2. The Area Within the Project's Reach Plays a Critical Role
for Meeting RPS Goals 1515
4.2.3. Cost of the Line is Appropriately Balanced Against the Certainty of the Line's Contribution to Economically Rational RPS Compliance 1616
5. Environmental Review Process 2020
5.1. California Environmental Quality Act (CEQA) 2020
5.2. National Environmental Policy Act (NEPA) 2323
6. The Environmental Review Process Applied to the TRTP 2424
6.1. Project Objectives and Description 2424
6.2. Description of the Studied Alternatives 2626
6.2.1. The Proposed Project (Alternative 2) 2727
6.2.2. West Lancaster Alternative (Alternative 3) 2929
6.2.3. Chino Hills Alternatives (Alternative 4A, 4B, 4C, 4CM
and 4D) 3030
6.2.3.2. The Aerojet Property 3232
6.2.3.3. The Chino Hills State Park and the 21st Century
Green Proposal 3333
6.2.4. Partial Underground Alternative (Alternative 5) 3535
6.2.5. Maximum Helicopter Construction in ANF Alternative (Alternative 6) 3636
6.2.6. 66 kV Subtransmission Alternative (Alternative 7) 3636
7. Certification of Final EIR, Project Authorization, Statement of Overriding Considerations, and Related Issues 4545
7.1. Certification of Final EIR 4545
7.2. CEQA Findings of Fact 4646
7.3. Authorization of the Environmentally Superior Alternative 4646
7.3.1. Section 1002 and the Environmentally Superior
Alternative 4646
7.3.1.1. Community Values 4747
7.3.1.2. Recreational and Park Areas 4747
7.3.1.3. Historical and Aesthetic Values 4949
7.3.2. Feasibility of the Environmentally Superior Alternative 5151
7.3.2.1. Construction Risks 5151
7.3.2.2. Operational Risks 5454
7.3.3. Relative Costs of the Environmentally Superior Alternative and Alternative 4CM 6262
7.3.4. Authorization for the Environmentally Superior
Alternative 6363
7.4. Statement of Overriding Considerations 6464
8. Compliance with Public Utilities Code Section 625 6767
9. Specification of Maximum Reasonable and Prudent Cost 6868
9.1. Maximum Direct Cost and Administrative Cost of the Project 6868
9.3. Allowances for Funds Used During Construction (AFUDC) 7373
9.5. Eligibility for Backstop Cost Recovery Under § 399.2.5 7575
10. Testimony and Exhibits 7676
11. Comments on Proposed Decision 7777
DECISION GRANTING A CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY FOR THE
TEHACHAPI RENEWABLE TRANSMISSION PROJECT
(SEGMENTS 4-11)
1. Summary
This decision grants the application of Southern California Edison Company (SCE) for a Certificate of Public Convenience and Necessity (CPCN) to construct the Tehachapi Renewable Transmission Project (Segments 4-11) (Project) using the Environmentally Superior Alternative, and subject to the mitigation measures and other conditions, described herein. SCE shall file an advice letter after final route selection and final engineering regarding the maximum reasonable and prudent cost ("maximum cost") of the Project
The Project is a portion of the Tehachapi Renewable Transmission Project (TRTP). The TRTP is designed to provide access to up to 4,500 megawatts (MW) of renewable energy generation, primarily wind energy, from the Tehachapi Wind Resource Area in Kern County and to deliver it to load in Los Angeles and San Bernardino counties. We approved Segment 1 in Decision (D.) 07-03-012 and Segments 2-3 in D.07-03-045, which together form the Antelope Transmission Project (ATP), which will deliver approximately 700 MW of the total TRTP carrying capacity. 1 The ATP is currently under construction, and the first portions were energized this year.
A statutory framework governs our review of this application. Pursuant to Pub. Util. Code § 1001,2 before granting a CPCN we must find a need for the Proposed Project or an alternative evaluated in this proceeding. Section 1002(a) requires that we consider four additional factors: community values; recreational and park areas; historical and aesthetic values; and influence on the environment.
However, § 399.2.5 states that notwithstanding these provisions, an application for a CPCN is deemed necessary if the Commission finds "that the new facility is necessary to facilitate achievement of the renewable power goals established" under the Public Utilities Code. In a prior decision, D.07-03-012, the Commission established a three-prong test for reliance upon § 399.2.5: "(1) that a project would bring to the grid renewable generation that would remain otherwise unavailable; (2) that the area within the line's reach would play a critical role in meeting the RPS goals; and (3) that the cost of the line is appropriately balanced against the certainty of the line's contribution to economically rational RPS compliance."3
SCE has demonstrated that it meets all three of these elements and therefore has established need for the Project.
While application of § 399.2.5 results in a determination of the need for the Project, § 1002 is relevant in determination of the specific route selected for the Project.
The review process established by the California Environmental Quality Act (CEQA)4 has been the primary means of environmental review. CEQA requires a lead agency to identify and study potentially feasible alternatives and mitigation measures to reduce a project's significant environmental impacts. As the public agency with the greatest responsibility for approving the project, the Commission is the lead agency pursuant to CEQA and is responsible for preparation of an environmental impact report (EIR) in compliance with CEQA. As part of our review, we have evaluated the environmental impacts of the Proposed Project, eleven alternatives (five proposed by the City of Chino Hills), and a No Project Alternative.
The Final EIR identifies an Environmentally Superior Alternative, which we find to be feasible and consistent with the application of § 1002, and adopt herein as the approved route for the Project.5 Although the Environmentally Superior Alternative results in significant environmental impacts that cannot be mitigated, we find below that there are substantial benefits that outweigh those impacts and which constitute overriding considerations under CEQA.
1 For purposes of this decision, we will use "TRTP" to refer to Segments 1-11 collectively, the "Project" to refer to Segments 4-11 and "ATP" to refer to Segments 1-3.
2 Unless otherwise expressly stated, all references to statutes are to the California Public Utilities Code.
3 D.07-03-012 at 16. RPS refers to Renewables Portfolio Standards.
4 Pub. Res. Code § 21000, et seq. CEQA and its federal counterpart, the National Environmental Policy Act (NEPA, 42 USC § 4321, et seq.) require the preparation, respectively, of an environmental impact report (EIR) and an environmental impact statement (EIS) to identify alternatives to the proposed project, the potentially significant effects on the environment of the proposed project and its alternatives, and to indicate the manner in which those significant environmental effects can be mitigated or avoided.
5 These alternatives are described in detail in Sections 6.3.1 and 7.3 herein.
