IX. Categorization and Need for Hearings

This matter was preliminarily categorized as ratesetting and there is no need to alter this categorization. While the Commission initially categorized this application as a proceeding requiring hearings, the lack of objection to the First Project/Northern Portion rendered hearings on that portion unnecessary, so none were held. Hearings are necessary on the First Project/Southern Portion.

Findings of Fact

1. The First Project/Northern Portion is necessary to meet growth and reliability needs in the Yreka to Weed areas.

2. The FMND identified no significant environmental effects of the First Project/Northern Portion that could not be avoided or reduced to less than significant levels by mitigation measures.

3. The Commission has considered the FMND in determining to approve the project.

4. Evidentiary hearings are not required on the First Project/Northern Portion.

Conclusions of Law

1. The FMND has been processed and completed in compliance with the requirements of CEQA.

2. The First Project/Northern Portion should be approved, subject to the Mitigation Monitoring, Reporting and Compliance Program included in the FMND.

3. Because of the need for timely action, today's decision should be made effective immediately.

INTERIM ORDER

IT IS ORDERED that:

1. The Final Mitigated Negative Declaration (FMND) is identified as Exhibit 1 and is received into evidence on the date it was issued by the Commission.

2. The FMND related to the application in this proceeding is adopted pursuant to the requirements of the California Environmental Quality Act (CEQA).

3. The Mitigation Monitoring, Reporting and Compliance Program (MMRCP) included in the FMND is adopted.

4. PacifiCorp is authorized to construct the power lines and associated substation modifications identified and described in this decision as the First Project/Northern Portion, subject to PacifiCorp's written agreement to abide by the mitigation measures described in the FMND and MMRCP to avoid or mitigate the reasonably foreseeable adverse environmental effects of the project.

5. The Executive Director shall supervise and oversee construction of the First Project/Northern Portion insofar as it relates to monitoring and enforcement of the mitigation conditions described in the FMND. The Executive Director may delegate his duties to one or more Commission staff members or outside staff. The Executive Director is authorized to employ staff independent of the Commission staff to carry out such functions, including, without limitation, the on-site environmental inspection, environmental monitoring, and environmental mitigation supervision of the construction of the project. Such staff may be individually qualified professional environmental monitors or may be employed by one or more firms or organizations. In monitoring the implementation of the environmental mitigation measures described in the FMND, the Executive Director shall attribute the acts and omissions of PacifiCorp's employees, contractors, subcontractors, or other agents to PacifiCorp.

6. PacifiCorp shall comply with all orders and directives of the Executive Director concerning implementation of the environmental mitigation measures described in the FMND.

7. The Executive Director shall not authorize PacifiCorp to commence actual construction until PacifiCorp has entered into a cost reimbursement agreement with the Commission for the recovery of the costs of the mitigation monitoring program described in the FMND, including, but not limited to, special studies, outside staff, or Commission staff costs directly attributable to mitigation monitoring. The Executive Director is authorized to enter into an agreement with PacifiCorp that provides for such reimbursement on terms and conditions consistent with this decision in a form satisfactory to the Executive Director. The terms and conditions of such agreement shall be deemed conditions of approval of the application to the same extent as if they were set forth in full in this decision.

8. The Energy Division shall supervise and oversee the construction of the First Project/Northern Portion insofar as it relates to monitoring and enforcement of the mitigation measures described in the FMND. The Energy Division may designate outside staff to perform on-site monitoring tasks. The Commission project manager (Energy Division, Environmental Projects Unit) shall have the authority to issue a Stop Work Order on the entire project, or portions thereof, for the purpose of ensuring compliance with the mitigation measures described in the FMND. Construction may not resume without a Notice to Proceed issued by the Environmental Projects Unit of the Energy Division.

9. PacifiCorp's right to construct the project as set forth in this decision shall be subject to all other necessary state and local permitting processes and approvals.

10. PacifiCorp shall file a written notice of its agreement with the Commission, served on all parties to this proceeding, executed by a duly authorized officer of PacifiCorp, as evidenced by a resolution of its board of directors duly authenticated by a secretary or assistant secretary of PacifiCorp, to acknowledge PacifiCorp's acceptance of the conditions set forth in this order. Failure to file such notice within 75 days of the effective date of this decision shall result in the lapse of the authority granted by this decision.

11. The Executive Director shall file a Notice of Determination for the project as required by the CEQA and the regulations promulgated pursuant thereto.

12. This is a final determination that evidentiary hearings are not required for the First Project/Northern Portion. Evidentiary hearings are required for the First Project/Southern Portion, as described in this decision.

13. Nothing in this decision, the Mitigated Negative Declaration, or prior rulings in this proceeding should be construed as approval for PacifiCorp to construct the First Project/Southern Portion, as described in this decision.

14. Should PacifiCorp opt to construct the Second Project, as described in this decision, it shall file a new application and Proponent's Environmental Assessment. It shall cite this decision, and the FMND we approve herein, so that the Commission in passing on the Second Project, if any, is aware of the work that has already been done to evaluate the environmental impact of the Second Project.

15. We ratify the ruling of the Assigned Commissioner requiring the First and Second Projects to be evaluated together under CEQA, and allowing PacifiCorp to modify the Yreka and Weed substations without CEQA review because they are exempt under GO 131-D.

This order is effective today.

Dated October 19, 2006, at Fresno, California.

D0610047 Attachment to Interim Opinion Granting Application In Part

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