VII. Authorized DPV2 Project and Statement
of Overriding Considerations

A. Authorized DPV2 Project

Based on the considerations above, we authorize SCE to construct the proposed DPV2 project with the following routing conditions:

SCE should terminate DPV2 at a new Harquahala Junction, if a commercially reasonable agreement can be reached and subject to approval by the Arizona Corporation Commission and any other needed authorizations. Otherwise, SCE may terminate DPV2 at the Harquahala switchyard.

SCE may construct a route in the Kofa area that is acceptable to the USFWS and other permitting agencies.

SCE should construct the North of Desert Center alternative in the Alligator Rock ACEC area if BLM authorizes this route. Otherwise, SCE may build DPV2 on a route segment through the Alligator Rock ACEC area acceptable to BLM, if the segment received full consideration in the Final EIR/EIS or deviates from one of the reviewed route segments solely within BLM land.

SCE should construct the Devers-Valley No. 2 500 kV alternative rather than the 230 kV upgrades that SCE proposed west of the Devers substation.

Attachment B presents the findings required by CEQA Guidelines Section 15091, describing each significant and potentially significant impact identified in the Final EIR/EIS, the relevant mitigation measures, and the findings of the Commission with respect to each impact.

The Final EIR/EIS has identified unavoidable significant impacts that will result from construction and operation of the authorized DPV2 project. Section 15093(b) of the CEQA Guidelines provides that, when the decision of the public agency allows the occurrence of significant impacts which are identified in the EIR but are not at least substantially mitigated, the agency must state in writing the reasons to support its action based on the completed EIR and/or other information in the record. CEQA Guidelines Section 15093(b) requires that the decision-maker adopt a Statement of Overriding Considerations at the time of approval of the project if it finds that significant adverse environmental effects have been identified in the EIR that cannot be substantially mitigated to an insignificant level or be eliminated.

The following impacts are not mitigated to a less than significant level for the proposed project: visual impacts in Kofa (Arizona), Harquahala Mountain Telecommunication Facility (Arizona), and the Alligator Rock ACEC); wilderness/recreation effects at the same three locations and also at the Chuckwalla Dune Thicket ACEC; the conversion of agricultural land to non-agricultural use (13.6 acres in Arizona); potential adverse changes to known historic resources, to buried prehistoric and historical archaeological sites, or to human remains; corona noise that would exceed Riverside County standards; and air emissions that would exceed thresholds in the SCAQMD.

Implementation of alternatives could eliminate some of these identified impacts. Use of the North of Desert Center alternative to avoid new impacts to the Alligator Rock ACEC would eliminate visual, wilderness/recreation, and cultural resources impacts to the ACEC, but would create additional visual impacts resulting from the addition of the transmission line in a new corridor north of the ACEC. Implementation of the Harquahala Junction Switchyard alternative would eliminate the significant impact from conversion of agricultural lands in Arizona. While a wide range of alternatives was evaluated in an attempt to avoid impacts to Kofa, no feasible alternatives were identified that would reduce impacts in comparison with the impacts of the proposed project.

In the project segment west of the Devers substation, the proposed West of Devers upgrades would not create any significant unmitigable impacts. Since the Morongo Tribe has informed SCE that its proposed West of Devers upgrades are not acceptable, this portion of the project is not feasible, and we authorize construction of the Devers-Valley No. 2 alternative. This alternative would have the following significant and unmitigable impacts: visual impacts in several locations; inconsistency with BLM's Visual Resources Methodology management objectives in the Potrero ACEC and with the San Bernardino National Forest's Scenic Integrity Objectives; wilderness/recreation impacts at Santa Rosa and San Jacinto Mountains National Monument, Pacific Crest Trail, San Jacinto Wilderness Area, and Potrero ACEC; potential adverse changes to known historic resources, to buried prehistoric and historical archaeological sites, or to human remains.; corona noise; and air emissions.

None of the other alternatives alleviate the significant impacts and are feasible in light of the project objectives, as described in Final EIR/EIS Appendix 1 (Alternatives Screening Report). Accordingly, the Commission adopts the following Statement of Overriding Considerations.

B. Statement of Overriding Considerations

The Commission recognizes that significant and unavoidable impacts will result from implementation of the DPV2 project. Having (i) adopted all feasible mitigation measures, (ii) adopted certain alternatives that reduce the impacts of the proposed project, (iii) rejected as infeasible alternatives to the project discussed above, (iv) recognized all significant, unavoidable impacts, and (v) balanced the benefits of the project against the project's significant and unavoidable impacts, the Commission hereby finds that the benefits outweigh and override the significant unavoidable impacts for the reasons stated below.

The Commission adopts and makes this statement of overriding considerations concerning the DPV2 project's unavoidable significant impacts to explain why the project's benefits outweigh its unavoidable impacts.

The discussion above and in Sections III and IV describes each alternative that was considered in the Final EIR/EIS and explains why each one has been included in the authorized project or rejected.

This project will provide substantial benefits, in that it will provide significant economic benefits for CAISO ratepayers, increase the reliability of the interstate transmission network, increase operational flexibility, and provide insurance value as an economic hedge against low-probability, high-impact events. We set forth the reasons for finding these substantial benefits, with citations to the record, in Section III above. The Commission finds that the DPV2 project's unavoidable impacts are acceptable in light of these substantial benefits, which constitute an overriding consideration warranting approval of the project, despite each and every unavoidable impact.