9. California Environmental Quality Act

Under the California Environmental Quality Act (CEQA) and Rule 17.1 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.⁵

In this application, the Commission is making a discretionary decision and, where CEQA applies, must act as either a Lead or Responsible Agency. On the facts, here, however, CEQA does not apply, because the decision to approve California American's application is not a project within the scope of CEQA. Here, California American has not asked for approval of any specific projects, nor is this financing order authorizing any specific capital expenditures or construction projects.

Since the details of proposed improvements are unknown at this time, we will approve the debt financing and place California American on notice that the approval of the debt requested in the application does not constitute an implied or expressed waiver of applicable environmental regulations.

This financing order will not authorize any capital expenditures or construction projects. California American will not use the proceeds authorized by this order to begin construction of capital projects until California American has obtained the required approvals from the Commission, if any, including any required environmental review under CEQA.

⁵ Pub. Resources Code Section 21080.