4. The Pub. Util. Code § 1002(a) Factors Raised by the Application
As we pointed out in D.06-03-012, in deciding whether to grant a CPCN, the Commission is required to consider, in addition to the standard set forth in Pub. Util. Code § 1001, four additional factors that are set forth in § 1002(a).9 These four factors are:
Community values;
Recreational and park areas;
Historical and aesthetic values; and
Influence on the environment.
Further, as we noted in D.90-09-057 and D.00-05-048, § 1002 imposes upon the Commission a "responsibility independent of CEQA to include environmental influences and community values in our consideration of a request for a CPCN." (37 CPUC 2d 413, 453; D.00-05-048 at 27-28; emphasis added.) In this case, LGS asserts that the proposed Phase II of the Kirby Hills Facility would be consistent with all four of the factors set forth in § 1002(a).
With respect to community values, LGS maintains that it has "secured all necessary rights from private landowners to construct and operate Kirby Hills II," and that it has briefed local agencies and officials on the project, including the affected Assembly member and county supervisor. LGS also points out that the proposed Facility will create considerable economic benefits for Solano County, including 90 construction jobs, other construction spending, and approximately $400,000 per year in additional county tax revenues to support schools, libraries, parks and local government. (Application, pp. 20-21.)
Although, as noted above, a dispute developed after the filing of the application over whether LGS had obtained the necessary rights from KH Associates to enable Phase II to go forward, that dispute has now been resolved, and KH Associates states that it supports the application. In addition, the Commission has received letters of support for Phase II from Assembly Member Lois Wolk, State Senator Patricia Wiggins, and Solano County Supervisor Mike Reagan.10 In D.00-05-048, we noted that in assessing community values under § 1002(a), "we acknowledge the positions of the elected representatives of the area because we believe they are also speaking on behalf of their constituents." (D.00-05-048 at 30.)
With respect to recreational and park areas, LGS argues, as it did in connection with the first phase of the Facility, that all of Phase II's components will be located on private lands "remotely located from park and recreation areas," and that none of them will lead to any change in the use of any existing park or recreation area. (Application at 21.)
With respect to historical values, LGS notes that Phase II would be "consistent with the extensive historical gas production that has occurred in this area over the last sixty years," as well as with the gas storage operations that occurred on the Kirby Hills Ranch when it was leased by Dow Chemical Corporation from the late 1970s to the mid-1990s. (Id. at 22.) With respect to aesthetics, LGS points out that the construction and operation of the well and compressor facilities will be remote from public view, and that the facilities associated with the metering station visible from Birds Landing Road at the end of the 5.9-mile pipeline are "low lying" and will not affect the visual characteristics of the surrounding area. (Id.)
Finally, with respect to influence on the environment, LGS points out that when the APMs set forth in its PEA are taken into account, the environmental impacts of Phase II will be reduced to less-than-significant levels. These APMs include the avoidance of sensitive habitat or areas, the fact that construction and operation of the new facilities will take place at an existing site that is remote, the scheduling of construction to minimize impacts on surrounding communities, and compliance with all applicable federal, state, and local regulations and requirements. LGS also points to its excellent record in operating the Lodi and first phase of the Kirby Hills Facilities, which contributed to LGS being designated as the recipient of the 2006 "Outstanding Lease Award" given by the California Division of Oil, Gas and Geothermal Resources. According to LGS, all of these factors ensure that the fourth criterion set forth in Pub. Util. Code § 1002(a) is satisfied. (Id. at 22-23.)
9 Pub. Util. Code § 1002(a) provides in pertinent part:
"The commission, as a basis for granting any certificate pursuant to Section 1001 shall give consideration to the following factors:
1. Community values.
2. Recreational and park areas.
3. Historical and aesthetic values.
4. Influence on environment, except that in the case of any line, plant, or system or extension thereof located in another state which will be subject to environmental impact review pursuant to the National Environmental Policy Act of 1969 . . . or similar state laws in the other state, the commission shall not consider influence on the environment unless any emissions or discharges therefrom would have a significant influence on the environment of this state."
10 The Commission has also received a letter in support of the application from State Senator Michael Machado, who represents the 5th District, where LGS's other facility, the Lodi Gas Storage Facility, is located.
