10. California Environmental Quality Act
Under the California Environmental Quality Act (CEQA) and Rule 2.4 of the Commission's Rules of Practice and Procedure (Rules), we must consider the environmental consequences of projects that are subject to our discretionary approval.10 Thus, we must consider whether approval of this application will alter an approved project, result in new projects or change operations in ways that have an environmental impact.
According to Cal Am, it is unknown at this time what the specific project activities and new construction associated with the authority to issue debt will be. The application specifies that the purpose of the application is to secure approval for Debt Securities, to be used partly for acquisition of property, construction, completion, extension, or improvement of Cal Am facilities. Cal Am has general plans for the use of the debt proceeds, but it does not have the basic details regarding those contemplated projects. Cal Am simply possesses inadequate basic information regarding future projects that might be financed through the contemplated Debt Securities. However, securing the financing authority now will put Cal Am in a better position to undertake plant improvements without delay when construction plans are finalized.
Cal Am is aware and states in the application that the utility will comply with all environmental permitting requirements applicable to the construction and improvements that it will undertake in conjunction with the proposed debt issue.
Since the details of the proposed improvements are unknown at this time, we will put Cal Am on notice that our approval to issue debt does not constitute an implied or expressed waiver of applicable environmental regulations.
This decision does not authorize any capital expenditures or construction projects. New construction projects which Cal Am intends to finance via this application should undergo a CEQA review as early as feasible in the planning process, as required by CEQA Guidelines Section 15004(b). Ongoing projects have already been subject to any necessary CEQA review undertaken prior to Cal Am receiving a certificate of public convenience and necessity or permit to construct. To the extent capital expenditures are financed with the proceeds of the long-term debt issued pursuant to this decision, CEQA review should occur as needed through the regulatory processes applicable to each capital project.
10 Public Resources Code Section 21080.
