ALJ/BDP/sid DRAFT Item CA-10

11/29/2001

Decision PROPOSED DECISION OF ALJ PATRICK (Mailed 10/30/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Valencia Water Company (U34-W) seeking approval of its updated Water Management Program as ordered in Commission Resolution W-4154 dated August 5, 1999.

Application 99-12-025 (Filed December 17, 1999)

Nossaman, Guthner, Knox & Elliott, LLP, by
Martin A. Mattes, Attorney at Law, and
Robert J. Di Primio, for Valencia Water Company,
applicant.

Brecher & Volker, LLP, by Stephan C. Volker.
Attorney at Law, for Friends of the Santa Clara
River, Santa Clarita Organization for Planning the
Environment and Sierra Club, complainants.

James L. McBride, County Counsel, by Dennis L. Slivinski,
Assistant County Counsel and Antonette B. Cordero,
Assistant County Counsel for the County
of Ventura.

Edwin and Joan Dunn, Robert P. Lathrop, for themselves.

Peter G. Fairchild, Attorney at Law, and Fred Curry,
for the Water Division.

OPINION APPROVING WATER MANAGEMENT PROGRAM

AND AUTHORIZING SERVICE AREA EXPANSION

TABLE OF CONTENTS

Title Page

OPINION APPROVING WATER MANAGEMENT PROGRAM

AND AUTHORIZING SERVICE AREA EXPANSION 2

I. Summary 2

II. Factual Background Regarding Valencia's Water Supplies 3

III. Procedural Summary 4

A. Events Before This Proceeding 4

B. This Proceeding 5

IV. The Proper Role of the Commission Under CEQA 10

A. Position of Ventura 10

B. Position of Sierra Club 11

C. Position of Valencia 12

D. Discussion 13

V. The WMP 21

A. Water Demand 22

B. The Alluvial Aquifer and the Saugus Formation 24

C. The Perchlorate Problem 28

D. Supply From State Water Project and Firming Resouces 29

E. Conclusion 33

VI. Comments on Proposed Decision 36

Findings of Fact 36

Conclusions of Law 43

ORDER 44

APPENDIX A - WMP Figure III-2

APPENDIX B - List of Acronyms and Abbreviations

OPINION APPROVING WATER MANAGEMENT PROGRAM

AND AUTHORIZING SERVICE AREA EXPANSION

I. Summary

The Commission approves Valencia Water Company's (Valencia) 1999 Water Management Program (WMP) and Advice Letters (ALs) 88 and 90, requesting permission to expand its service area. Approval of these advice letters authorizes Valencia to provide water service to the North Valencia 2, Mountain View, West Creek, and Tesoro del Valle development projects. Upon completion of the projects, Valencia would add a total of approximately 6020 customers to its service area, and the incremental water demand would be 5,011 acre-feet per year (AFY).

The respective Environmental Impact Reports (EIRs) for these four development projects were previously certified either by Los Angeles County or the City of Santa Clarita acting as "lead agency" under the California Environmental Quality Act (CEQA). Along with its Proponents' Environmental Assessment (PEA), as required by Rule 17.1 of the Commission's Rules of Practice and Procedure, Valencia submitted copies of these EIRs, with a motion requesting approval of its ALs 88 and 90 covering the four projects. The Commission staff reviewed these EIRs and concluded that the EIRs were complete and adequate for purposes of the Commission's review.

As a "responsible agency" pursuant to the CEQA Guideline 15096, the Commission has considered the environmental assessments contained in the environmental documents for the four related land development projects that encompass ALs 88 and 90. The Commission concludes that all environmental impacts and mitigation measures that may be associated with the extensions of water service proposed by ALs 88 and 90 were reasonable as to the scope of the environmental impact reviews that were performed in connection with the related land development projects.

The Commission rejects the arguments of Sierra Club and the County of Ventura that the Commission should assume the role of lead agency and issue an EIR on the WMP and all water supplies shown as available in the WMP before it can address ALs 88 and 90.

After review of the WMP in conjunction with ALs 88 and 90, the Commission concludes that the water supplies that the WMP demonstrates to be available provide an ample margin of safety to allow Valencia to serve new customers to the extent contemplated by ALs 88 and 90.