10. California Environmental Quality Act (CEQA) Compliance

Pursuant to CEQA and Rule 2.4, the Commission examines projects to determine any potential environmental impacts in order that adverse effects are avoided and environmental quality is restored or enhanced to the fullest extent possible under CEQA.

Pacific Lightwave's proposed construction activities will generally take place in existing rights-of-way, utility easements, and/or on top of existing utility poles.⁶ The proposed construction may include trenching for the placement of underground conduit, installing cable in existing or new conduit, and installing cable on existing poles. Pacific Lightwave may also utilize fixed wireless facilities to connect customers to backbone facilities, which would require installation of small antennae and associated radio transmitters.

Pacific Lightwave asserts that, these activities, by their very nature, fall within classes of projects that are exempt from CEQA and for which neither an Environmental Impact Report nor a Negative Declaration is required. Specifically, Pacific Lightwave identifies:

· Class 1 Exemption: operation, repair, maintenance, leasing or minor alteration of existing public or private structures and facilities, with negligible or no expansion of an existing use. This includes existing facilities used to provide public utility services. 14 CCR Section 15301.

· Class 3 Exemption: construction including water main, sewage, electrical, gas and other utility extensions of reasonable length to serve such construction. This includes the construction of limited numbers of new small facilities or utility extensions. 14 CCR Section 15303.

Pacific Lightwave's proposed activities involve construction of reasonably short utility extensions (Class 3). In order to provide its service, Pacific Lightwave also intends to utilize the existing conduits, poles, and other facilities of local cable operators (Class 1). Exemption of these activities is consistent with Commission precedent. Pacific Lighwave's proposed new construction activities are similar to those undertaken by other carriers that we have decided are categorically exempt from CEQA. See, e.g, D.06-04-063 (ClearLinx Network Corporation); D.06-04-067 (CA-CLEC LLC).

Pacific Lightwave does not know at this time, all of the specific areas where it may have to undertake construction. Pacific Lightwave, therefore, requests approval to utilize a procedure for expedited review of its projects once it is aware of a specific site(s) in which it plans construction. The proposed procedure, described in Application Exhibit B, tracks the expedited review procedure that we have approved for other carriers. Such a process will expedite CEQA review and is appropriate for the type of construction outlined here, which will be categorically exempt. By establishing this expedited review process, we are able to review the information on a specific project to confirm that it is categorically exempt from CEQA or explain why further environmental review is required. At the same time, the proposed CEQA review process will enable Pacific Lightwave to undertake construction of its projects in an efficient manner without experiencing delays caused by an unnecessarily protracted CEQA review.

The Commission will use a review procedure comparable to that approved for other carriers that have sought Commission approval for CEQA exemption for proposed construction projects. Pacific Lightwave will provide and the Commission's Energy Division will review a detailed description of the proposed project, the environmental setting, and the construction workplan, as well as a statement of CEQA exemptions (See Attachment E for a complete description of procedure) that is adopted by this decision.

We approve the process set forth in Attachment E for Commission review of claimed CEQA exemptions for construction projects undertaken pursuant to Pacific Lightwave's full facilities-based authority, based on the specific facts of this case.

Pacific Lightwave shall not perform any full facilities-based construction activities without first obtaining a Notice to Proceed from the Energy Division or authorization by the Commission after the requisite environmental review.

We have previously determined that the public convenience and necessity require that competition be allowed in the provision of competitive local exchange service, Rulemaking 95-04-043/Investigation 95-04-044. Granting this application will benefit the public interest by expanding the availability of technologically advanced telecommunications services within the state.

⁶ See Proponents Environmental Assessment (PEA), filed September 18, 2009.