V. Environmental Review

Pursuant to the California Environmental Quality Act (CEQA), Pub. Resources Code §§ 21000-21176, SDG&E submitted a PEA, which evaluates the potential environmental impacts from the proposed project. Rule 17.1 of the Commission's Rules of Practice and Procedure requires the proponent of a project to submit an environmental assessment or PEA with its application. The PEA is used by the Commission to focus on potentially significant environmental impacts and to prepare an Initial Study that determines whether the project requires a Negative Declaration or an Environmental Impact Report.

After reviewing the PEA and developing an Initial Study, the Commission's staff concluded that a Mitigated Negative Declaration would ensure compliance with CEQA. As provided in CEQA Guidelines § 21064.5, a Mitigated Negative Declaration may be prepared when an Initial Study identifies potentially significant effects on the environment that can be avoided or reduced to less than significant through mitigation efforts. A Negative Declaration does not require that the Commission analyze alternative sites.

The Commission, as the designated lead agency, attempted to ensure that adverse effects were avoided, and that environmental quality would be restored or enhanced to the fullest extent possible. To that end, the Commission's environmental staff, with the assistance of its environmental consultant conducted on-site inspections and performed extensive research and consultations. The Commission's environmental staff has independently determined that the Pala Substation Expansion would not have a significant impact on the environment provided that specific mitigation measures are implemented in the construction and operation of the project.

Hence, the Commission's Energy Division issued for comment a Draft Mitigated Negative Declaration in compliance with CEQA, Rule 17.1(f) of the Rules of Practice and Procedure, and GO 131-D. This document concluded that there were no residences or sensitive receptors (i.e., schools) located within 1,900 feet of the project site. The document was sent to various federal, state and county agencies. Public review began on May 29, 2001, and ended on June 29, 2001.

The Commission received nine comment letters from the private sector, federal, state, and local agencies as well as one community group:

As a result of the comments, several areas of textual discussion, and identified mitigation measures, were amended. Because of the volume of the Final Mitigated Negative Declaration (which includes the Response to Comments and the Mitigation Monitoring and Reporting Program), this

document is not appended to this decision. The Final Mitigated Negative Declaration is posted on the Commission's website at www.cpuc.ca.gov under Commission's Environmental Materials, Current Projects (see Attachment A).

SDG&E has agreed to comply with and incorporate the mitigation measures as part of its project. The mitigation measures required by the Final Mitigated Negative Declaration are designed to protect resource categories such as biology, hydrology and water quality, geology, cultural, air quality, visual aspects, noise and traffic impacts. A Mitigation Monitoring Plan calls for oversight inspection of all construction activities by an environmental project manager from the Energy Division.

To ensure that the mitigation measures are fulfilled, the Commission's staff or representatives will periodically review the project and follow up with local jurisdictions. A formal complaint procedure has been established, and the Commission reserves its right to halt construction if environmental infractions occur.

Based on its environmental review, the Commission's staff has concluded that SDG&E's proposed project will not have significant effects on the environment, provided SDG&E carries out the mitigation measures outlined in the Final Mitigated Negative Declaration. It will be filed with the Governor's office of Planning and Research (along with the required fees) in November 2001.

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