7. California Environment Quality Act (CEQA)
CEQA requires the Commission as the designated lead agency to assess the potential environmental impact of a project in order that adverse effects are avoided, alternatives are investigated, and environmental quality is restored or enhanced to the fullest extent possible. In this instance, because the proposed merger transaction involves only an indirect change in ownership of stock in Frontier-California, Frontier-Tuolumne, Frontier-Golden State and Frontier-Global Valley, the transaction does not constitute a "project" within the meaning of CEQA. Also, it can be seen with certainty that there is no possibility that the proposed activity in question may have a significant effect on the environment.2 As a result, CEQA does not apply to this Application.
2 CEQA Guideline § 1506(b)(3).
