V. CEQA

We must consider whether the Commission's approval of Del Oro's application for a CPCN triggers the CEQA and, if so, what steps must be taken to satisfy the statute's requirements. CEQA applies to governmental activity that involves the exercise of discretion, has the potential of causing a direct or reasonably foreseeable physical change in the environment, and satisfies the CEQA definition of project. The issuance of a CPCN is a project since it involves discretionary governmental activity in issuing a "certificate or other entitlement."⁸ A CPCN is an entitlement since it allows an entity to operate as a public utility within a specified service area. The remaining question is whether the issuance of a CPCN in this case will cause a reasonably foreseeable physical change in the environment.

Even though Del Oro itself has not applied for or received a CEQA declaration, the developer, Emmerson, received a Mitigated Negative Declaration (MND) from Shasta County on January 30, 2006. This MND included review and consideration of items such as water supply, water quality, and the effect of the development on the local area. Since CEQA review is necessary to the issuance of a CPCN, issuance of the current CPCN is conditional upon Emmersons' compliance with all conditions of the MND. Therefore, the CPCN requested in the current case is issued conditional upon Emmersons' compliance with all conditions and provision of proof of such compliance from Shasta County to the Director of the Commission's DWA.

⁸ Cal. Pub. Res. Code §§ 21001.1, 21002 & 21080.