Fukutome Comment Decision Fiber Optic Cable in Gas Pipeline

7. Assignment of Proceeding

Michael R. Peevey is the Assigned Commissioner and David Fukutome is the assigned ALJ in these proceedings.

Findings of Fact

1. The Utilities' proposed FIG program will provide a cost effective alternative for Carriers to connect the premises of end users to main trunk lines, typically fiber optic cable, established for long distance and data transmission purposes.

2. No parties are actively opposing the Utilities' FIG program proposals, as reflected in the April 1, 2003 amendments to the applications.

3. The determination of the monthly customer charge is not based on detailed cost information.

4. Ratepayers are currently paying the capital costs for gas distribution pipeline facilities that Carriers will use for the installation of fiber cable under the FIG program.

5. Ratemaking for FIG revenues will ultimately be determined in the Utilities' test year 2004 PBR/COS proceeding.

6. The Final Program EIR reflects the independent judgment of this Commission.

7. The contents of the Final program EIR conform to the requirements of CEQA.

8. The Final Program EIR identified no significant environmental effects of the FIG program that could not be avoided or reduced to non-significant levels by changes to the program that have been accepted by SoCalGas and SDG&E.

9. The Commission has considered the Final Program EIR in its determination to approve the FIG program.

Conclusions of Law

1. Since this is a new service and data for the related customer charge is not available, it is reasonable to require the detailed determination of a cost based customer charge to be a condition for continuing the FIG program beyond the initial 36-month time period or for expanding the installation mileage limits for the program beyond that reflected in the April 1, 2003 amended applications.

2. It would not be appropriate to flow FIG revenues collected for the capital costs associated with the use of the gas distribution system through the current PBR sharing mechanisms, since those costs are embedded in current rates and are already being paid for by ratepayers. The revenues associated with capital cost recovery should instead be flowed directly to ratepayers through a credit to an appropriate balancing account.

3. In all other respects the Utilities' FIG program proposals, as amended on April 1, 2003, are reasonable and should be adopted.

4. The program EIR has been processed and completed in compliance with the requirements of CEQA.

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

ORDER

IT IS ORDERED that:

1. The Final Program Environmental Impact Report (EIR), which consists of two separate documents, the Draft Program EIR and the Responses to Comments Document, is identified as Exhibit 1 and is received into evidence on September 8, 2003.

2. The Final Program EIR is certified pursuant to the requirements of the California Environmental Quality Act.

3. The mitigation measures, notification requirements and reporting requirements included in the Final Program EIR are adopted.

4. Subject to the mitigation measures and requirements described in the Final Program EIR, Southern California Gas Company (SoCalGas) and San Diego Gas & Electric Company (SDG&E) are granted authority to implement new services allowing telecommunications carriers and cable TV companies to place fiber optic cable in the utilities' active gas pipelines at tariffed rates, terms and conditions, as amended on April 1, 2003.

5. The presentation of a detailed cost based study for the determination of the customer charge shall be a condition for either continuing the fiber optic cable in gas pipeline (FIG) program beyond the initial 36 month period or expanding the installation mileage limits beyond that reflected in the April 1, 2003 amended applications.

6. Net revenues from the FIG program shall, in part, be subject to the Performance Based Ratemaking (PBR) sharing mechanisms as currently authorized in Decision (D.) 97-07-054 for SoCalGas and D.99-05-030 for SDG&E. The net revenues subject to sharing shall be determined by subtracting the incremental expenses and revenues collected for the capital costs associated with the use of the gas distribution system from the total FIG program revenues. Revenues collected for the capital costs associated with the use of the gas distribution system shall be flowed directly to ratepayers through a credit to an appropriate balancing account. These procedures shall be superseded by ratemaking adopted in the current consolidated test year 2004 PBR/Cost of Service proceeding for SoCalGas in Application (A.) 02-12-027 and SDG&E in A.02-12-028.

7. A.02-03-061 and A.02-03-062 are closed.

This order is effective today.

Dated ____________________, at San Francisco, California.

ATTACHMENT A

TABLE 1

SUMMARY OF IMPACTS AND MITIGATION MEASURES FOR
SCG/SDG&E SCHEDULE NO. G-FIG "FIBER OPTIC CABLE IN GAS PIPELINES"

Environmental Impact	Significance before Mitigation	Mitigation Measures	Significance after Mitigation
Aesthetics
AES-1: Possible temporary, minor changes to the resources visible from a scenic vista or State Scenic Highway might result from construction activities and FIG operation.	Less than Significant	No mitigation required.
AES-2: Possible minor changes in the existing visual character or quality of a site might result from construction activities and FIG operation.	Potentially Significant	AES-2a: SCG/SDG&E would minimize visual impacts of program facilities and comply with local regulations, keep construction and staging areas orderly and free of trash and debris, and restore areas disturbed by construction activities to their pre-construction condition.	Less than Significant
Air Quality
AIR-1: Introduction of additional emissions sources in a region for which air quality plans have been developed.	Less than Significant	No mitigation is required.
AIR-2: Increase in local pollutant concentrations.	Potentially Significant	AIR-2a: SCG/SDG&E would require the construction contractors to implement a dust abatement program to reduce dust and air emissions.	Less than Significant
AIR-3: FIG and handhole installation could create an increase in local pollutant concentrations.	Potentially Significant	Implement Mitigation Measure AIR-2a.	Less than Significant
AIR-4: FIG and handhole installation could expose sensitive receptors to substantial pollutant concentrations.	Potentially Significant	Implement Mitigation Measure AIR-2a.	Less than Significant
Biology
BIO-1: FIG and handhole installations located within or adjacent to areas that support natural habitat and special-status species may adversely affect these species.	Potentially Significant	BIO-1a: Prior to construction, a qualified biologist will conduct preconstruction surveys of proposed FIG installation locations which, may support special status species habitat.	Less than Significant
		BIO-1b: If the qualified biologist determines that FIG installation sites support natural habitat (i.e., wetlands, other water resources, upland communities) that may support special-status species, project activities will be relocated outside of these habitats. Natural habitat will be avoided by subsequent activities that may impact special status species.
*(i)*		BIO-1c: If the qualified biologist determines that FIG installation sites are adjacent to natural habitat (i.e., wetlands, other water resources, upland communities) that may support special-status species, the following measures will apply:
*(ii)*		· A qualified biological monitor will demarcate the construction zone in the field to ensure that special-status species habitat is not disturbed during construction activities.
*(iii)*		· A qualified biological monitor will be present for construction activities adjacent to sensitive habitat or areas, which may support special-status species.
*(iv)*		· If preconstruction surveys determine that special-status wildlife species have the potential to enter the construction zone from adjacent natural habitat, exclusion fencing shall be constructed and maintained in good condition between construction areas and potential habitat for special-status wildlife species. The temporary fence shall be constructed with typical silt fencing, and shall be substantial enough to deter animals from entering the work area and to prevent parking construction vehicles or staging or storage of construction materials on road shoulders adjacent to habitat. The location of the fence shall be determined by the biological monitor.
*(v)*		· If preconstruction surveys identify potential nesting habitat for special-status birds or roosting habitat for special-status bats adjacent to proposed project activities, a no-disturbance buffer zone would be established around active nests and roosts during the breeding season. If construction activities are scheduled to occur during the breeding season of birds (February through August) or bats (March through August), pre-construction surveys will be conducted within 500 feet of project activities. If construction activities are scheduled to occur during the non-nesting season, then no surveys would be required. If surveys indicate that nests/roosts are inactive or potential habitat is unoccupied during the construction period, no further mitigation would be required. If active nests/roosts are found, SCG/SDG&E would establish a no-disturbance buffer acceptable in size to CDFG around the active nest/roost.
BIO-2: FIG and handhole installation could result in potential short-term disturbance of waters of the U.S. (including wetland communities).	Potentially Significant	Implement Mitigation Measures BIO-1a, BIO-1b, and BIO-1c.	Less than Significant
BIO-3: FIG and handhole installation could result in impacts to heritage or other significant trees in the project area.	Less than Significant	No mitigation is required.
Cultural Resources
CUL-1: Possible substantial effects can occur to known, but unevaluated prehistoric and historic archaeological deposits from ground disturbing construction operations (construction related impact, particularly portals outside of previously excavated areas).	Potentially Significant	CUL-1a: For any excavation outside of previously excavated areas, conduct a records search for the proposed study area and the lands within a one-mile radius from the appropriate California Historical Resources Information System (CHRIS).	Less than Significant
		CUL-1b: For any proposed locations that have the potential for buried prehistoric cultural material or fossils, all grading and excavation for fiber in gas installation will be monitored by a qualified archaeologist. Monitoring is required within 500 feet of the boundaries of known cultural resources (including extant architectural features) and within 1,000 feet of the locations of modern and historic stream crossings. Monitors must have 2 years of professional experience and be certified by the CPUC. Monitors will be under the supervision of the cultural resources specialist.
CUL-2: Potential discovery or disturbance of unique paleontological resources during construction could constitute an impact. Because significant fossil discoveries can be made in areas designated as low, as well as moderate to high potential, excavation activities could possibly unearth significant paleontological resources. While this in unlikely, should such resources be encountered, this would be a significant impact.	Potentially Significant	CUL-2a: In the event that fossil remains are encountered, either by the cultural resources monitor or by construction personnel, qualified paleontological specialists will be contacted. Construction within 50 feet of the find will be temporarily halted or diverted until the discovery is examined by a qualified vertebrate paleontologist. The paleontologist shall notify the appropriate agencies to determine procedures that would be followed before construction is allowed to resume at the location of the find. Significant fossils will be salvaged through a program of excavation, analysis, and documentation. Fossil remains collected during the salvage program shall be cleaned, sorted, catalogued, and then deposited in a public, non-profit institution with research interests in the materials.	Less than Significant
CUL-3: Possible substantial effects may occur to human burials from construction operations. Subsurface excavation in the areas known or suspected to contain burials or archaeological sites of the type known to possess burials (occupation sites), could disturb or destroy significant human remains. This could include burials of prehistoric remains or non-Indian pioneers.	Potentially Significant	CUL-3a: If human remains are found at any time during site preparation or excavation activities, all work will immediately stop within 100 feet of the find. The project archaeologist will be notified immediately and will, in turn, immediately notify the county coroner for the appropriate county in compliance with Section 7050.5 of the California Health and Safety Code. Upon the completion of compliance with all relevant sections of the California Health and Safety Code, the cultural resources specialist will implement Mitigation Measure CUL-1b.	Less than Significant
Hazards and Public Safety
HAZ-1: Possible temporary exposure to or release of hazardous materials during construction.	Potentially Significant	HAZ-1a: Ensure proper labeling, storage, handling, and use of hazardous materials.	Less than Significant
		HAZ-1b: Report all significant releases or threatened releases of hazardous materials.
		HAZ-1c: Reduce excavation impacts.
HAZ-2: FIG and handhole installation activities could require disposal of potentially contaminated soils.	Potentially Significant	HAZ-2a: Implement an Awareness Training Program to educate field personnel regarding the unexpected discovery of contaminated soil.	Less than Significant
		HAZ-2b: Characterize excavated materials for disposal if those materials have the odor or appearance of contamination and report all discovery of significant hazardous waste, including soil and groundwater contamination, to the inspector of the local agency.
HAZ-3: Potential public health hazard associated with a pipeline rupture during FIG installation and operation that could lead to an explosion resulting in property damage or fatalities.	Potentially Significant	HAZ-3a: SCG/SDG&E will continue to update safety procedures to address FIG installation procedures in compliance with all federal and state pipeline safety regulations.	Less than Significant
HAZ-4: Possible Exposure of the Public or Environment to Hazardous Materials Sites.	Potentially Significant	Implement Mitigation Measure HAZ-2a and HAZ-2b.	Less than Significant
HAZ-5: Possible Temporary Limited Emergency Access.	Potentially Significant	Implement Mitigation Measure TRA-1a.	Less than Significant
Noise
NOI-1: Construction activities could generate noise levels in excess of local standards during construction and FIG operation.	Potentially Significant	NOI-1a: SCG/SDG&E would require construction contractors to comply with the construction hours limitations and construction equipment standards set forth in the local general plan noise element and the noise ordinance of all applicable jurisdictions of cities and counties, or in compliance with conditions outlined in acquired permits from those applicable jurisdictions.	Less than Significant
		NOI-1b: To reduce daytime noise impacts due to construction, SCG/SDG&E shall require construction contractors to implement the following measures when operating adjacent to sensitive receptors in order to maintain compliance with local noise standards:
		· Equipment and trucks used for construction shall utilize the best available noise control techniques (e.g., improved mufflers, equipment redesign, use of intake silencers, ducts, engine enclosures and acoustically-attenuating shields or shrouds, wherever feasible);
		· Impact tools (e.g., jack hammers, pavement breakers, and rock drills) used for construction shall be hydraulically or electrically powered wherever possible to avoid noise associated with compressed air exhaust from pneumatically powered tools. However, where use of pneumatic tools is unavoidable, an exhaust muffler on the compressed air exhaust shall be used; this muffler can lower noise levels from the exhaust by up to about 10 dBA. External jackets on the tools themselves shall be used where feasible, and this could achieve a reduction of 5 dBA. Quieter procedures shall be used, such as drills rather than impact equipment, whenever feasible; and
		· Construction equipment shall be located as far from sensitive receptors as possible.
NOI-2: Exposure of sensitive receptors to localized groundborne vibration and groundborne noise during FIG installation.	Less than Significant	No mitigation is required.
NOI-3: Temporary and intermittent noise increases during FIG installation.	Less than Significant	No mitigation is required.
NOI-1: Construction activities could generate noise levels in excess of local standards during construction and FIG operation.	Potentially Significant	NOI-1a: SCG/SDG&E would require construction contractors to comply with the construction hours limitations and construction equipment standards set forth in the local general plan noise element and the noise ordinance of all applicable jurisdictions of cities and counties, or in compliance with conditions outlined in acquired permits from those applicable jurisdictions.	Less than Significant
Transportation and Public Services
TRA-1: Pipeline access points and handholes for FIG installation within streets could reduce the number of, or the available width of, travel lanes on roads, resulting in temporary disruption of traffic flows and increases in traffic congestion.	Potentially Significant	TRA-1a: Obtain and comply with local and state road encroachment permits, and railroad encroachment permits.	Less than Significant
TRA-2: FIG and handhole installation within or adjacent to roadways would temporarily increase the potential for accidents.	Potentially Significant	Implement Mitigation Measure TRA-1a.	Less than Significant
TRA-3: FIG and handhole installation within or adjacent to streets would affect emergency access.	Potentially Significant	Implement Mitigation Measure TRA-1a.	Less than Significant
TRA-4: Construction required for FIG and handhole installation would generate a temporary demand for parking spaces for construction worker vehicles; in addition, FIG installation would temporarily displace existing on-street parking on a number of streets.	Potentially Significant	Implement Mitigation Measure TRA-1a.	Less than Significant
TRA-5: FIG and handhole installation could temporarily disrupt bus service near pipeline access points.	Potentially Significant	Implement Mitigation Measure TRA-1a.	Less than Significant
TRA-6: FIG and handhole installation could temporarily disrupt existing transportation and circulation patterns in the vicinity, and impact response times for fire and police emergencies, by disrupting traffic flows and street operations.	Potentially Significant	Implement Mitigation Measure TRA-1a.	Less than Significant
Utilities and Service Systems
UTL-1: The placement of fiber optic cable within existing gas pipelines would reduce the service capacity of the existing gas pipelines.	Potentially Significant	UTL-1a: Application of the Schedule No. G-FIG's Terms and Special Conditions shall address/avoid potentially significant impacts to pipeline service capacity.	Less than Significant
UTL-2: The proposed new form of service will have service implications including potential impacts on operations.	Potentially Significant	UTL-2a: Primary operations and maintenance procedures shall be modified to address potential operational impacts.	Less than Significant

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