F. CEQA Compliance

The principal remaining issue is whether, as the joint applicants assert, the proposed transfer qualifies for an exemption from CEQA. Under CEQA and Rule 17.1 of the Commission's Rules of Practice and Procedure, we are required to consider the environmental consequences of projects that are subject to our discretionary approval. (See, Pub. Resources Code § 21080.)

We acknowledge that in some cases, it is possible that a change of ownership and/or control may alter an approved project, result in new projects, or change facility operations in ways that have an environmental impact. However, based upon the application here, the change of ownership at issue in this proceeding will have no significant effect upon the environment. As the joint applicants have stated, the Lodi Facility will continue to be operated as previously authorized by the Commission, all environmental mitigation measures contained in the certified EIR will continue to apply, and all monitoring requirements and restrictions imposed in the decision that certified the EIR, D.00-05-048, will continue to apply. Accordingly, the proposed project qualifies for an exemption from CEQA pursuant to § 15061(b)(3) of the CEQA guidelines, and the Commission need perform no further environmental review.

In certifying the EIR for the Lodi Facility, D.00-05-048 restricted persons and entities with a beneficial interest in LGS (or its present owners) from monitoring the implementation of the required environmental mitigation measures. The restriction applies to any person or entity

". . . who beneficially owns any security of, or has received during the past five years or is presently entitled to receive at any time in the future more than a de minimis amount of compensation for consulting services [from LGS or its owners.]" (D.00-05-048, OP 16.)

We will continue to apply this restriction to such persons and entities following the transfer of Western Hub's 50% interest in Lodi Holdings to WHP Acquisition II, and we will extend the restriction to ArcLight Fund II and ArcLight Capital Partners as well as WHP Acquisition II.