IV. Environmental Findings and Statement of Overriding Considerations

As required by CEQA, we cannot approve PG&E's proposed project or an alternative unless we find that the project has been modified to mitigate or avoid each significant effect on the environment; or that specific considerations make the mitigation measures or alternatives identified in the FEIR infeasible; and specific overriding economic, legal, social, technological, or other benefits of the proposed project outweigh the significant effects on the environment. The following discussion addresses (1) mitigation measures recommended in the EIR; (2) significant effects of the proposed project; and (3) alternatives considered.

A. Mitigation Measures Recommended in EIR

The mitigation measures recommended in the EIR for the proposed project and alternatives are presented in Section C of the FEIR (attached as Appendix E). The adoption and implementation of these mitigation measures was assumed in the determination of impact levels in the EIR. Therefore, implementation of these mitigation measures is a condition of the approval of this project.

In addition to the mitigation measures, additional impact-reduction measures proposed by PG&E in its Proponent's Environmental Assessment were assumed to be implemented as a basis for the impact conclusions in the EIR. These measures, called Applicant Proposed Measures in the EIR (also listed in Appendix E), would reduce impacts in a range of environmental disciplines, and their implementation is monitored by the CPUC as part of its Mitigation Monitoring, Compliance and Reporting Program.

The FEIR includes a Mitigation Monitoring, Compliance, and Reporting Program, which presents the process for monitoring the implementation of the recommended mitigation measures and Applicant Proposed Measures.

B. Significant Effects of the Proposed Project

As described above, all significant impacts resulting from PG&E's proposed project cannot be avoided or eliminated. These impacts are:

· Bird collision with 230 kV transmission line,

· Degradation of recreational experience along regional and subregional trails,

· Degradation of visual quality from installation of 230 kV towers and lines in open space/bay margin areas,

· Inconsistency with BCDC Bay Plan policies regarding scenic views and appearance/design, and

· Loss of Prime Farmland (agricultural soils) at the proposed Los Esteros substation site.

C. Environmentally Superior Alternative

As described above, several alternative projects were considered in the Draft, Supplemental Draft, and Final EIRs. As illustrated in Appendix C to this decision, a combination of these alternatives was found to be environmentally superior to the project proposed by PG&E: the I-880-A, Northern Underground, Underground Through Business Park, and McCarthy Boulevard Alternatives, along with portions of the proposed route in the Southern Area. The use of these alternatives would offer environmental advantages, as discussed above. Therefore, we select these alternatives for approval. This combination of alternatives eliminates the bird collision impact along most of the transmission line route, and also eliminates the significant visual impact, the recreation impact along regional trails, and the inconsistency with the Bay Conservation and Development Commission Bay Plan.

The environmentally superior alternative would have two significant and unmitigable effects remaining from the proposed project: (1) the potential for bird collision with the new overhead transmission line (Mileposts 4.1 to 6.7, and (2) the conversion of Prime Farmland (agricultural soils) to non-agricultural use at the proposed substation site. In addition, the environmentally superior alternative involves use of the McCarthy Boulevard Alternative, for which the FEIR identifies another significant unavoidable impact: the inconsistency of the McCarthy Boulevard Alternative segment with the City of Milpitas' Open Space/Conservation policy.

By use of this combination of alternatives and implementation of the mitigation measures recommended in the various EIR documents, the significant impacts of the environmentally superior alternative are considered to be mitigated to the extent feasible. The benefits of the transmission line and substation project, provision of increased electric supply, and increased reliability to the Cities of San Jose, Santa Clara and Milpitas, outweigh the potential impacts.