II. CEQA Issues

In accordance with CEQA provisions, the Commission must assess the potential environmental impact of a CLC's proposed operation in order to determine that adverse effects are avoided, alternatives are investigated and, where applicable, environmental quality is restored or enhanced as necessary. To achieve this objective, Rule 17.1 of the Rules of Practice and Procedure requires the proponent of any project subject to Commission approval to submit with its application for approval of such project a Proponent's Environmental Assessment (PEA). The PEA is used by the Commission to focus on any impacts of the project which may be of concern, and to prepare the Commission's Initial Study to determine whether the project needs a Negative Declaration or an Environmental Impact Report (EIR).

Through the second quarter of 1999, the Commission staff's practice was to prepare a negative declaration covering all CLC petitioners filing for facilities-based CPCN authority during the previous quarter.

In D.99-12-050, the Commission concluded that more individualized treatment of the environmental review of each CPCN request was warranted. Thus, effective with D.99-12-050 and until further notice, each CLC request for CPCN authority was to be individually reviewed and, if it was determined that a negative declaration or EIR is necessary, it would be prepared on an individual basis.

In D.99-10-025, we noted that various CLC petitioners did not anticipate undertaking any new construction, at least for their initial start-up operations. Instead, they intended to collocate their network equipment within the existing structure of the central offices of the Incumbent Local Exchange Carriers (ILECs), and to provide service by purchasing an ILEC's existing local loop as a UNE under federal law. Because UNEs are considered "facilities" under federal law, a facilities-based CPCN is still necessary for a CLC to operate utilizing collocation UNEs. The CLCs argued that the deficiencies identified in the negative declaration should not prevent the Commission from granting such limited facilities-based authority at this time where no construction is involved.

We concluded in D.99-10-025 that under the limited definition of facilities-based service utilizing equipment installed in previously existing structures, no material adverse environmental impacts would result since no external construction would be involved. Accordingly, for purposes of D.99-10-025, we granted limited "facilities-based" authority in this restricted manner to each of the Petitioners covered in that order.

SCC has requested that it be given limited facilities-based authority. The services that SCC seeks to offer involve the aggregation and transport of emergency calls in conjunction with SCC's 911 SafetyNetSM services in the State of California. These services permit a public safety answering point (PSAP) designated by the authorized 911 administrative entity to receive emergency calls placed by dialing the number 911 or emergency calls originated by personal safety devices terminating at a designated service bureau and requiring public safety assistance. The services include the use of an enhanced coordinate routing call management system and may include the facilities required to transport and deliver the call to the appropriate 911 selective routing tandem for delivery to the PSAP. SCC does not intend to construct any distribution facilities at this time. As long as construction authority is limited to installing equipment in existing buildings or structures, it can be seen with certainty that there is no possibility that granting this application will have an adverse effect upon the environment. Therefore, we will grant SCC such limited facilities-based authority at this time.

Under the limited facilities-based authority granted herein, SCC shall be prohibited from engaging in any construction of buildings, towers, conduits, poles, or trenches. At such time in the future that SCC may seek to engage in the construction of facilities to be used in the provision of local exchange service, it shall first be required to file a new application seeking to expand the limited facilities-based CPCN authority granted in this order. The application shall include a PEA providing a detailed description of the proposed construction. SCC shall fully comply with CEQA.