6. California Environmental Quality Act
Under the California Environmental Quality Act (CEQA) and Rule 17.1 of the Commission's Rules of Practice and Procedure (Rules), we must consider the environmental consequences of projects that are subject to our discretionary approval.42 Thus, in deciding whether to approve A.04-05-041, we must consider if doing so will alter an approved project, result in new projects, change operations, etc., in ways that have an environmental impact.
PG&E intends to use $1.008 billion of long-term debt and preferred stock authorized by this Opinion to finance capital expenditures during 2005 - 2008.43 PG&E estimates that its total capital expenditures during this period will exceed $6.5 billion.44 However, PG&E represents that it cannot identify the specific capital expenditures that will be financed with the long-term debt and preferred stock issued pursuant to this Opinion.45 PG&E states that to the extent capital expenditures are financed with the proceeds of the long-term debt and preferred stock issued pursuant to this Opinion, CEQA review will occur as needed when PG&E goes through the regulatory processes applicable to each capital project.46
CEQA guidelines recognize that the timing of the environmental review involves a balancing of competing factors, and that such review should occur as early as feasible in the planning process to enable environmental considerations to influence project design, yet late enough to provide meaningful information for environmental assessment.47 We conclude that it is premature to conduct a CEQA review of the projects that may be funded with debt and preferred stock issued pursuant to this Opinion, as PG&E is unable to provide basic details about the potential projects, such as the location, design, and engineering of the projects. Consequently, there is not sufficient information to conduct a meaningful environmental assessment at this time.
This Financing Order does not authorize any capital expenditures or construction projects. PG&E shall not use any proceeds from the debt and preferred stock issued pursuant to this Opinion to begin construction of capital projects until PG&E has obtained the required approvals from the Commission, if any, including any required environmental review under CEQA.
42 Pub. Resources Code Section 21080.
43 PG&E Supplement filed on July 16, 2004, response to Question 9, Schedules II(1) and III(1).
44 Ibid., Schedule II.
45 PG&E Supplement filed on August 19, 2004, response to Question 1.a.
46 PG&E Supplement filed on August 19, 2004, response to Question 1.b.
47 Code of Regs., Title 14, § 15004.
