XXIII. CPCN and CEQA Issues

Edison crafted its application for approval of Mountainview in a manner that it asserts does not require it to seek a CPCN for the project, and obviates the need for the Commission to conduct a review under the California Environmental Quality Act (CEQA). Edison requests that the Commission make a finding verifying its assertions that neither a CPCN nor a CEQA review is necessary.

Section 1001 of the Pub. Util. Code states in pertinent part:

No . . . electric corporation . . . shall begin the construction of a street railroad, or of a line, plant, or system, or of any extension thereof, without first obtaining from the Commission a certificate that the present or future public convenience and necessity require or will require such construction.

Edison argues that since it is not "beginning" construction of a facility, and MVL is not an electric corporation, a CPCN is not required. We agree, and find that unless Edison decides to purchase Mountainview as utility owned generation, a CPCN is not necessary.

Furthermore, a CEQA review is not required since the California Energy Commission (CEC) already conducted an environmental review as part of Mountainview's Application for Certification (APC). Mountainview completed its APC with the CEC and received a license from that Commission in March 2001. Edison asserts that its requested change in ownership of MVL from Sequoia to Edison, a purely financial transaction, does not result in a "substantial" change that would trigger further CEQA reviews. Edison urges the Commission to make a finding that the CEQA review conducted by CEC is sufficient and no further reviews are triggered by the current application.

The Navajo Nation views Edison's proposal as violating State law by circumventing the CPCN filing requirement that would involve a needs assessment and a comparison of Mountainview with all reasonable alternatives, including Mohave. The CEQA review performed by CEC for Mountainview investigated whether there were significant physical impacts that would result from the construction and operation of Mountainview; but there was no comparison of Mountainview with other projects. Also, construction has been stalled since March 2002. The Navajo Nation wonders if a nearly 20-month shutdown can have significant environmental impacts in and of itself.

While this Commission takes its responsibilities under CEQA seriously and is not reticent to perform environmental reviews, under the CEC licensing provisions, the CEC functioned as the lead agency under CEQA. This Commission has no independent responsibility to conduct further environmental reviews. We have determined that the CEC's AFC process exempts projects, in this case Mountainview, from the requirements of CEQA. We therefore find that no further CEQA review is triggered by Edison's application.