10. California Environmental Quality Act
A basic purpose of the California Environmental Quality Act (CEQA)13 is to inform governmental decision-makers and the public about the potential and significant environmental effects of proposed activities.14 To achieve this goal, the Commission is required by CEQA and Rule 2.4 of the Commission's Rules of Practice and Procedure to consider the environmental consequences of projects that are subject to the Commission's discretionary approval. Thus, the Commission must consider whether approval of A.07-10-012 will alter an approved project, result in new projects, or change operations in ways that have an environmental impact.
Alco intends to use the $8 million of financing authorized by today's Decision to repay short-term debt, reimburse treasury funds, and finance future construction of utility plant and facilities. Alco provided few details regarding the timing and extent of these activities. The CEQA guidelines recognize that the timing of an environmental review involves a balancing of competing factors, and that such review should occur as early as feasible to enable environmental considerations to influence project design, yet late enough to provide meaningful information for environmental assessment.15
We conclude that it is premature to conduct a CEQA review of future construction of utility plant and facilities that are financed with the debt and equity authorized by today's Decision because there is insufficient data to conduct a meaningful environmental review at this time. Instead, we will order Alco to comply with all applicable environmental laws when planning and implementing future construction of plant and facilities that are financed, in whole or in part, with the debt and equity authorized by today's Decision.
Today's Decision does not authorize any capital expenditures or construction projects. Construction projects financed by debt and equity issued pursuant to today's Decision should undergo a CEQA review as early as feasible in the planning process, as required by CEQA Guidelines Section 15004(b).
13 Public Resources Code Section 21000, et seq.
14 CEQA Guidelines (Title 14, Division 6, Chapter 3 of the California Code of Regulations), Section 15002.
15 CEQA Guidelines Section 15004(b).
