6. Environmental Review

SCE states that New Century Auto is in the process of obtaining all permits and approvals required by the appropriate governmental agencies having jurisdiction for the development of an automobile dealership facility on the site. In accordance with Article 6.2(h) of lessee's agreement with SCE, lessee must procure and deliver to SCE evidence of compliance with all applicable codes, ordinances, regulations and requirements for permits and approvals, including but not limited to grading permits, building permits, zoning and planning requirements, and approvals from the various governmental agencies and bodies having jurisdiction.

Under the California Environmental Quality Act (CEQA), the Commission must consider the environmental consequences of a project that is subject to the Commission's discretionary approval. (Pub. Resources Code § 21080.)

In the past, the Commission has treated applications like this one merely as requests by the utility to allow it to transfer a leasehold interest in utility property. The Commission does not approve the project itself and does not issue a permit for the project development. The Commission conditioned its approval of such proposed leases on lessee's compliance with all applicable environmental regulations. The Commission reasoned that local authorities are generally in a superior position to evaluate local environmental impacts and develop appropriate mitigation strategies. (See, e.g., Decision (D.) 99-02-036 and D.99-04-066.) Accordingly, the Commission deferred to the local authorities to approve the project as a whole, subject to CEQA requirements.

However, to ensure that no development will take place without CEQA review by the appropriate agency, the Commission on August 2, 2001, in D.01-08-022, announced a change in its procedures for future applications. Henceforth, we will require the utility to include with its application copies of the necessary documents issued by the local entity acting as the lead agency under CEQA to establish that the environmental review has been conducted and any mitigation measures required by CEQA have been imposed, or that the lead agency found that the project in question is exempt from CEQA. The Commission would then assume the role of a responsible agency for CEQA purposes.

Here, SCE has supplemented its application to include environmental findings and filings conducted by the City of San Gabriel. After review of the proposed project, the City has issued a conditional use permit and a mitigated negative declaration. We are aware of no information to indicate that the determination of the City of San Gabriel has been appealed. Accordingly, we will rely on the lead agency's determination that its mitigated negative declaration will govern this project under CEQA.