Categorization and Need for Hearings

This matter was preliminarily categorized as ratesetting and there is no need to alter this categorization. While the Commission initially categorized this application as a proceeding requiring hearings, the lack of objection to the project or significant environmental impact rendered hearings unnecessary, so none were held.

Findings of Fact

1. The project will serve San Francisco.

2. The project is necessary to meet growth and reliability needs in the San Francisco area.

3. The FMND identified no significant environmental effects of the project that could not be avoided or reduced to less than significant levels by mitigation measures or changes to the project that have been accepted by PG&E.

4. The Commission has considered the FMND in determining to approve the project.

5. With implementation of the mitigation measures included in the FMND, the project will not have a significant effect on the environment.

6. Evidentiary hearings are not required.

Conclusions of Law

1. The FMND has been processed and completed in compliance with the requirements of CEQA.

2. The project should be approved, subject to the Mitigation and Monitoring Plan included in the FMND.

3. Because of the need for timely action, today's decision should be made effective immediately.

ORDER

IT IS ORDERED that:

1. The Final Mitigated Negative Declaration (FMND) is identified as Exhibit 1 and is received into evidence on November 19, 2004.

2. The FMND related to the application in this proceeding is adopted pursuant to the requirements of the California Environmental Quality Act.

3. The mitigation, monitoring, and reporting program included in the FMND is adopted.

4. Pacific Gas and Electric Company (PG&E) is authorized to construct the power lines and associated substation modifications identified on PG&E's Proponent's Environmental Assessment as the "Potrero to Hunters Point 115kV Project," as modified in the FMND, subject to the mitigation measures described in the FMND to avoid or mitigate the reasonably foreseeable adverse environmental affects of the project.

5. The Executive Director shall supervise and oversee construction of the project insofar as it relates to monitoring and enforcement of the mitigation conditions described in the FMND. The Executive Director may delegate his duties to one or more Commission staff members or outside staff. The Executive Director is authorized to employ staff independent of the Commission staff to carry out such functions, including, without limitation, the on-site environmental inspection, environmental monitoring, and environmental mitigation supervision of the construction of the project. Such staff may be individually qualified professional environmental monitors or may be employed by one or more firms or organizations. In monitoring the implementation of the environmental mitigation measures described in the FMND, the Executive Director shall attribute the acts and omissions of PG&E's employees, contractors, subcontractors, or other agents to PG&E.

6. PG&E shall comply with all orders and directives of the Executive Director concerning implementation of the environmental mitigation measures described in the FMND.

7. The Executive Director shall not authorize PG&E to commence actual construction until PG&E has entered into a cost reimbursement agreement with the Commission for the recovery of the costs of the mitigation monitoring program described in the FMND, including, but not limited to, special studies, outside staff, or Commission staff costs directly attributable to mitigation monitoring. The Executive Director is authorized to enter into an agreement with PG&E that provides for such reimbursement on terms and conditions consistent with this decision in a form satisfactory to the Executive Director. The terms and conditions of such agreement shall be deemed conditions of approval of the application to the same extent as if they were set forth in full in this decision.

8. The Energy Division shall supervise and oversee the construction of the project insofar as it relates to monitoring and enforcement of the mitigation measures described in the FMND. The Energy Division may designate outside staff to perform on-site monitoring tasks. The Commission project manager (Energy Division, Environmental Projects Unit) shall have the authority to issue a Stop Work Order on the entire project, or portions thereof, for the purpose of ensuring compliance with the mitigation measures described in the FMND. Construction may not resume without a Notice to Proceed issued by the Environmental Projects Unit of the Energy Division.

9. PG&E's right to construct the project as set forth in this decision shall be subject to all other necessary state and local permitting processes and approvals.

10. PG&E shall file a written notice with the Commission, served on all parties to this proceeding, of its agreement, executed by an officer of PG&E duly authorized, as evidenced by a resolution of its board of directors duly authenticated by a secretary or assistant secretary of PG&E, to acknowledge PG&E's acceptance of the conditions set forth in this order. Failure to file such notice within 75 days of the effective date of this decision shall result in the lapse of the authority granted by this decision.

11. The Executive Director shall file a Notice of Determination for the project as required by the CEQA and the regulations promulgated pursuant thereto.

12. This is a final determination that evidentiary hearings are not required.

13. Application 03-12-039 is closed.

This order is effective today.

Dated December 2, 2004, at San Francisco, California.

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