7. California Environmental Quality Act (CEQA)

CEQA applies to discretionary projects carried out or approved by public agencies. A basic purpose of CEQA is to inform governmental decision makers and the public about potential significant environmental effects of proposed activities so that adverse effects are avoided, alternatives are investigated, and environmental quality is restored or enhanced to the fullest extent possible.

CEQA applies to this application because the approval of the Application is subject to the Commission's discretion. Therefore, when considering whether to grant this application, we must determine if the activity proposed in the Application requires environmental review. NTIC represented that the transfer of control proposed in this proceeding will not result in any new construction or changes in use of existing property or facilities. Based on this representation, we conclude that granting this application will have no adverse effects on the environment. Accordingly, no environmental review is necessary.