4. Requirements for a Certificate

In order to grant this Certificate, pursuant to Pub. Util. Code § 1001,3 the Commission must ensure that (1) any necessary environmental review pursuant to CEQA was performed, (2) the Reconductoring and New Facilities are necessary, and (3) all regulatory approvals have been obtained or granted herein. Also, pursuant to GO 131-D,4 p. 2, the Commission must find:

... said facilities are necessary to promote the safety, health, comfort, and convenience of the public, and that they are required by the public convenience and necessity.

4.1. Environmental Review

Consideration of the Reconductoring and New Facilities is to be found in the Solano County Draft and final EIR prepared for the Wind Farm and in Advice Letter 2879-E. We examine these documents in turn.

    4.1.1. The Wind Farm EIR

CEQA applies to discretionary projects to be carried out or approved by public agencies. A basic purpose of CEQA is to "inform governmental decision-makers and the public about the potential, significant environmental effects of the proposed activities." (Title 14 of the California Code of Regulations, (CEQA Guidelines) Section 15002.) CEQA requires that the Commission consider the environmental consequences before granting this Certificate.5 As stated above, the Commission was a Responsible Agency for the Wind Farm. Thus, the Commission must consider the Lead Agency's environmental documents and findings before acting upon or approving the Reconductoring and New Facilities (CEQA Guidelines 15050(b)).

As the Lead Agency for the Wind Farm, Solano County reached the conclusion that the Wind Farm would result in certain significant unmitigated and adverse environmental impacts pursuant to CEQA. The Lead Agency is the public agency with the greatest responsibility for supervising or approving the project as a whole.6 Here, Solano County was the lead agency and prepared a Final EIR for the Wind Farm Owners' proposed project, Wind Farm. We will take official notice of the Final EIR for the Wind Farm pursuant to Rule 13.9.

    4.1.2. Environmental Impacts

Solano County ordered the filing of a Notice of Determination with the County Clerk on March 20, 2008, and, pursuant to Public Resources Code Section 21152 and California Code of Regulations Section 15075, and concluded:

The Commission's Energy Division independently reviewed the application by PG&E for authority to construct the Reconductoring and New facilities and reviewed the Final EIR approved by Solano County. The Energy Division concluded that the Final EIR approved by Solano County was prepared in accordance with CEQA and is adequate for the Commission's decision-making purposes as a Responsible Agency pursuant to CEQA. The Final EIR incorporates the Draft EIR7 as an integral part of the final certified environmental review. The Draft EIR included the following description of PG&E's activity related to the Wind Farm:

PG&E evaluated the proposed ... [Wind Farm], proposed Montezuma Wind project, and other energy projects for impacts on its transmission system and determined that receiving additional power from the wind plant and other anticipated energy projects will require reconductoring an approximately 11-mile segment of the Vaca Dixon-Contra Costa 230 kV transmission line to accommodate increased capacity, referred to as the Reconductoring Project. The ... [Wind Farm] would be able to operate without the completion of the Reconductoring Project, but the Reconductoring Project is required to accept the generation of [Wind Farm] and other anticipated energy projects once they are at all full capacity. The Reconductoring Project begins in Solano County at PG&E's Birds Landing switchyard (which was built to facilitate the [earlier and separate] Shiloh I Project), traverses Solano, Sacramento, and Contra Costa Counties, and goes to the Contra Costa Substation and to the Contra Costa power plant switchyard (see Figure 1.0-1). The Reconductoring Project involves replacing two of the existing electric cable or conductor circuits on the existing PG&E towers with a heavier duty conductor that would increase the capacity of the line. Both circuits extend from the Birds Landing switchyard to the Contra Costa substation and Contra Costa power plant switchyard. A detailed description of the reconductoring component of this Reconductoring Project is provided below in Section 3.11. The Reconductoring Project also includes impact avoidance and minimization measures that are part of the Project description and Project design, as described in Section 3.12.4.

This Draft EIR analyzes the potential impacts of the [Wind Farm] as well as the Reconductoring Project as it relates to the construction and operation of the [Wind Farm] pursuant to the California Environmental Quality Act (CEQA). However, the Reconductoring Project is not part of the [Wind Farm's] request for a Use Permit from Solano County. Transmission line projects are regulated by the CPUC, and PG&E must therefore comply with CPUC General Order No. 131-D, which contains the permitting requirements for the construction, maintenance, or replacement of transmission and powerline facilities. The Reconductoring Project has now been determined to be exempt from CPUC permitting requirements under Section III.B.1 of General Order 131-D. Portions of the reconductoring are also outside of Solano County, where the County has no permit jurisdiction. As the lead agency for CEQA review, Solano County will coordinate with the CPUC regarding requirements for transmission line facilities, as necessary. PG&E will obtain permits for reconductoring from other federal or state agencies, including those outside of Solano County, as needed. (Draft EIR § 3 Project Description, at § 3.1.2 Reconductoring Project, p. 3-5.)8

The Final EIR provides a detailed description of the proposed transmission facilities and the potential environmental impacts, with a primary focus on avian impacts. It states in relevant part:

... the CPUC, during the CEQA process for the 3-mile transmission line, may consider the impacts to raptors due to installation of the line and PG&E's conclusion above and determine whether other design measures are warranted to ensure that impacts on birds during operation of the new 3-mile transmission line would not be significant. PG&E has indicated that they do not anticipate the CPUC would require avian or bird diverters along this existing corridor. (Final EIR, mimeo., p. 3-11.)

The Final EIR continues:

PG&E conducted a field and literature review of the area and discussed the history of bird usage in the area with biologists. PG&E found that the vicinity of the proposed new line is not located in a major avian flight path because there is no large body of water nearby, no topographic feature that would funnel bird flight toward the line, no concentrated food sources that would induce significant local movement by birds. Therefore, PG&E concluded that the addition of a new overhead transmission line immediately adjacent to the existing 230 kV and 500 kV overhead transmission lines would not cause additional bird collision hazard. Nor does PG&E believe the already existing lines themselves cause a significant collision hazard. There are no bird diverters or other mechanisms to reduce collisions on any of the existing PG&E lines in this corridor. (Final EIR, mimeo., p. 3-10.)

    4.1.3. Overriding Consideration

The Wind Farm Draft EIR and subsequent Final EIR identified a number of potentially significant environmental impacts. Some of these impacts will be fully avoided through the adoption of feasible mitigation measures. Solano County adopted Conditions of Approval for Land Use Permit No. U-050025 which specified mitigation measures for the Wind Farm. With the incorporated mitigation, certain environmental impacts associated with the Wind Farm remain significant and unavoidable. In considering the Draft EIR and Final EIR for the project, Solano County made findings for specific resource areas.

The Final EIR found that the Wind Farm will result in significant environmental effects with respect to the following issues or resources that can be reduced to less than significant levels and/or avoided with the implementation of adopted mitigation measures:

The Final EIR also found that certain unavoidable adverse significant impacts with no effective mitigation will occur with respect to:

After first mitigating those impacts which could be mitigated, Solano County adopted a Statement of Overriding Considerations for the unavoidable adverse significant impacts of the Wind Farm that could not be mitigated. In its findings, Solano County balanced the benefits against the unavoidable adverse environmental impacts and determined that the benefits of the Wind Farm outweighed the unavoidable adverse environmental impacts. Therefore, for the purposes of approving the Reconductoring and New Facilities, we adopt the county's mitigation and monitoring plan applicable to all potentially significant impacts that could be mitigated, and the Statement of Overriding Considerations applicable to the significant, but unavoidable, adverse environmental impacts.

The Commission's GO 131-D generally defines the required CEQA process for a Certificate in Section IX.A. PG&E included in the application (pp. 7-11) a description of its compliance with § IX.A including the various sub-paragraphs. The final requirement in § IX.A requires a proponent's environmental assessment (PEA) or other compliance with CEQA. PG&E submits that the Final EIR for the entire Wind Farm project complies with CEQA because the transmission portion of the whole project was studied as a part of a larger project subject to CEQA review. Thus, we find the Commission may rely on the Final EIR and may grant discretionary authority for a Certificate if PG&E satisfies all of the Commission's criteria in GO 131-D, below.

    4.1.4. Advice Letter 2879-E

PG&E's Advice Letter 2879-E, among other things, sought an exemption from the requirements to obtain a Permit to Construct.9 The exemption would apply to facilities to connect specific wind-generated power (including the Wind Farm) with PG&E's system:

In order to accommodate additional wind-generated power including two new wind energy facilities - [Wind Farm] and Montezuma Wind - in the Montezuma Hills, Solano County, [PG&E] plans to perform upgrades to its facilities necessary to connect the projects to its electrical system. This will require reconductoring (replacing electric wires) on PG&E Co.'s 230 kilovolt (kV), double-circuit tower line between the Montezuma Hills in Solano County and the Contra Costa Substation in the City of Antioch and the Contra Costa Power Plant Switchyard in Contra Costa County. The electric line to be reconductored is approximately 11 miles long. Its northerly terminus is located at the Birds Landing Switchyard in the Montezuma Hills, Solano County, where approximately 6 new support structures will be added just outside of the switchyard in order to connect circuits into the switchyard. From the Birds Landing Switchyard, the line runs southeasterly across the Montezuma Hills, crosses the Sacramento River onto the western end of Sherman Island in Sacramento County. On Sherman Island, the line turns southerly, continues across Sherman Island and crosses the San Joaquin River into Contra Costa County and the City of Antioch. One end of the line terminates at the Contra Costa Substation located north of Highway 4 and east of Hillcrest Avenue in the City of Antioch. The easterly circuit of the line splits from the westerly circuit at an existing tower located near Trembath Lane in Contra Costa County near the City of Antioch, and runs easterly and northerly approximately 1-1/3 miles, terminating at the Contra Costa Power Plant Switchyard located north of Wilbur Avenue and west of Highway 160. One tower located in an agricultural field in Contra Costa County near the City of Antioch, southwest of Jasmine Court, will be raised up to approximately 15 feet to maintain proper wire to ground clearance. While other minor tower modifications will not require raises, it is possible (depending upon final engineering) that the four towers at the river crossings may need to be raised approximately 25 feet to maintain proper clearance above the water. The project has been designed to avoid impacts to listed species, and seasonal restrictions have been incorporated into the construction schedule. Construction activities are scheduled to begin in January, 2007, or as soon as possible thereafter, and project completion is scheduled for late March, 2008, or as soon as possible thereafter. (Advice Letter 2879-E, Attachment 1, Notice of Proposed Construction.)

PG&E also requested in Advice Letter 2879-E that the Reconductoring and New Facilities be exempt from an Electric and Magnetic Forces (EMF) mitigation "[b]ecause there are no EMF mitigation measures available on this project that would meet the CPUC's benchmark of 4% or less of the total project, no `no cost' or `low cost' measures will be employed."

CEQA does not define or adopt any standards to address the potential health risk impacts of possible exposure to EMF, primarily because of the lack of scientific evidence of such risk.  The Commission also has examined EMF impacts in several previous proceedings.  We have found the scientific evidence of possible health effects was uncertain and therefore have not adopted specific limits regarding exposure to EMF.

However, recognizing that public concern remains, we do require, in GO 131-D, that all applications for a Certificate must include a description of the measures taken or proposed by the utility to reduce the potential for exposure to EMF generated by the proposed project.  We developed an interim policy that requires utilities, among other things, to identify the no-cost measures undertaken, and the low-cost measures implemented, to reduce the potential impacts of EMF.10  The benchmark established for low-cost measures is 4% of the total budgeted project cost that result in an EMF reduction of at least a 15% (as measured at the edge of the utility right-of-way).

The Commission provides a specific exemption to these requirements in the "EMF Design guidelines for Electrical Facilities - California EMF Policy."11 (Attached as Exhibit G to the Application.) Specifically:

Projects located exclusively adjacent to undeveloped land - including land under the jurisdiction of the National Park Service, the State Department of parks and Recreation, U.S. Forest Service, or Bureau of Land Management (BLM).

PG&E asserts that this exemption applies to the Reconductoring and New Facilities. We find, based on the detailed description of the Final EIR, and the approval of Advice Letter 2879-E discussed above, that this Reconductoring and New Facilities meets the requirement for this exemption.

Advice Letter 2879-E became effective (i.e., approved) September 9, 2006, 30 days after filing. Solano County appears to have relied on the effective advice letter in its Draft and Final EIR, as discussed and quoted above. A review of the general description of the project in Advice Letter 1879-E and the Final EIR appear to be substantially similar.

4.2. Need Determination

PG&E asserts that consistent with the Commission's policy in Decision (D.) 06-10-048, if a project is needed to interconnect generation and the developer is paying the costs associated with the transmission line, then need, cost-effectiveness, and ratepayer impact of the project are not at issue when granting a Certificate. (Application, pp. 3-4.)

The Commission has already approved the purchase of renewable energy from Wind Farm Owners in Resolution E-4161, and because the proposed Reconductoring and New Facilities is a necessary part, the need for the Reconductoring and New Facilities has therefore been established. The construction of the Reconductoring and New Facilities will cause no further financial impact on PG&E's ratepayers because its cost, including the construction, operation, and maintenance charges, will be paid by Wind Farm Owners. We will approve this application with the condition that PG&E shall not pass on to its ratepayers any costs, risks, or liabilities associated with the Reconductoring and New Facilities for the Wind Farm. We imposed a similar condition when we approved another recent transmission project, for the Russell City Energy Center, LLC, where approval was conditioned on ratepayers bearing no obligation or risk for the project.12 (See Ordering Paragraph 1, D.08-03-007, p. 15.)

4.3. Regulatory Approvals

PG&E asserts that no additional regulatory permits or approvals are required for this Reconductoring and New Facilities other than the Final EIR from Solano County and the Certificate from this Commission. No one disputes this assertion.

4.4. Conclusion

Based on the Final EIR, prepared by Solano County for the Wind Farm, and the mitigation measures identified therein and incorporated into Wind Farm, the county found that the Wind Farm as approved will have a significant impact on the environment and it permitted the project based on its Statement of Overriding Considerations.  We have reviewed the subject application and considered (1) all of the above requirements; (2) our prior approval of PG&E's Advice Letter 2879-E, for a GO 131-D exemption; and (3) our prior approval in Resolution E-4161 of the purchase power agreement with Wind Farm Owners. We therefore find the present application is complete and in compliance with Pub. Util. Code § 1001 and GO 131-D.

We conclude that granting this Certificate is in the public interest and the application should be approved as set forth below.

3 "No ... electrical corporation ... shall begin the construction of ... plant, ... or of any extension thereof, without having first obtained from the commission a certificate that the present or future public convenience and necessity require or will require such construction."

4 "Rules pertaining to planning and construction of facilities for the generation of electricity and certain electric transmission facilities." ( http://162.15.7.24/PUBLISHED/Graphics/589.PDF)

5 CEQA Guidelines, Section 15050(b).

6 Id.

7 The Draft and Final EIR for Wind Farm are available from the Solano County web site. http://www.solanocounty.com/FileDownloads/Downloads.asp?NavID=1438

8 The Draft EIR is incorporated into the Final EIR and therefore unchanged text from the Draft IER is not duplicated in the Final EIR.

9 "No electric public utility shall begin construction in this state of any electric power line facilities or substations which are designed for immediate or eventual operation at any voltage between 50 kV or 200 kV or new or upgraded substations with high side voltage exceeding 50 kV without this Commission's having first authorized the construction of said facilities by issuance of a permit to construct ..." (GO 131-D, Section III B.)

10 See D.06-01-042, and D.93-11-013 for the Commission's policies on EMF.

11 See the full text as posted on the Commission's internet site: http://www.cpuc.ca.gov/PUC/energy/electric/Environment/ElectroMagnetic+Fields/

12 See also D.93-10-039, where the Commission found PG&E's shareholders, and not ratepayers, would bear all financial risk for still another earlier similar transmission project. Thus, it is a long-standing policy that ratepayers bear no risk for projects like the current Reconductoring and New Facilities.

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