7. Compliance with the California Environmental Quality Act (CEQA)

The sole remaining issue is whether, as Joint Applicants assert, the proposed transfer qualifies for an exemption from CEQA. Under CEQA and Rule 2.4 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. ⁵⁹

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, as the transfer application states, the proposed change of control will not result in a change in operation or change in the use of existing assets and facilities. Nor do Joint Applicants seek approval of new construction or request approval for any future utility infrastructure. In accordance with today's decision and except as otherwise authorized herein, CalPeco will continue to operate the California Utility in the manner the Commission has approved for Sierra.

⁵⁹ See, Public Resources Code § 21080.