III. CEQA

CEQA requires the Commission as the designated lead agency to assess the potential environmental impact of a project in order that adverse effects are avoided, alternatives are investigated, and environmental quality is restored or enhanced to the fullest extent possible.

Rule 17.1 of the Commission's Rules of Practice and Procedure requires the proponent of any project subject to Commission approval to submit with the application for approval of such project a Proponent's Environmental Assessment (PEA). The PEA is used by the Commission to focus on any impacts of the project that may be of concern, and to prepare the Commission's Initial Study to determine whether the project needs a Negative Declaration or an Environmental Impact Report. We have reviewed the proposed project for compliance with CEQA.

Applicant proposes to offer Last Mile telecommunications services in urban areas within the San Francisco Bay Area, and the Sacramento Metropolitan Area. Applicant proposes to construct fiber optic cable facilities and ancillary equipment between structures to which service will be provided. The term "Last Mile" refers to the distance between the source facility and the new customer. Installation methods include: use of existing dark fiber unbundled network elements; use of existing conduits, ducts, and rights-of-way of existing utilities and other companies for installation of new fiber optic cable; use of pole attachment rights for installation of fiber optic cable on existing utility structures; construction of new underground conduit in existing public and utility rights-of-way; and construction of new central offices.

It is not possible to identify all potential customers and, therefore, the proposed project has no preplanned routes. To address this type of project, the Commission developed the Last Mile initial study/mitigated negative declaration (MND) as a process-oriented approach that sets forth performance standards for analyzing potential impacts, and for identifying and implementing required mitigation measures. Because the specific locations are not known, the MND takes the conservative approach of presenting all possible impacts and the required mitigation measures. This process provides CEQA compliance for the Commission and responsible agencies, but does not limit the authority of responsible agencies to issue permits and approvals for future specific project routes.

The Commission staff prepared a public notice that announced the preparation of the draft MND, the locations where it was available for review, and the deadline for written comments. The public notice was advertised in newspapers throughout the state. The draft MND was submitted to the State Clearinghouse, main local libraries, and city and county planning departments in project counties, as well as other appropriate state, county and city agencies for review and comment.

Public comments on the draft MND were reviewed and answered, as necessary. The Commission staff then finalized the MND in July 2002 (final MND). The final MND includes a list of mitigation measures with which Applicant must comply as a condition of its CPCN authority. It also includes a Mitigation Monitoring Compliance and Reporting Plan to ensure that the mitigation measures are followed and implemented as intended. The introduction to the final MND is attached to this decision as Attachment A. The final MND shall be attached to the formal file copy of this decision and is incorporated herein by reference. The actual MND language from the final MND, including the required mitigations, is attached to this decision as Attachment B. We hereby approve the final MND.