Comments on Draft Decision

In accordance with Pub. Util. Code § 311(g)(1) and Rule 77.7 of the Rules of Practice and Procedure, the draft decision was mailed to the parties on June 20, 2000. Opening comments were filed on ____________________, and reply comments were filed on ________________.

Findings of Fact

1. D.97-04-046 imposed a $2,000 deposit requirement to be paid by each CLC seeking facilities-based CPCN authority on whose behalf the Commission prepared a MND pursuant to CEQA.

2. The $2,000 deposit amount was determined based upon the estimated cost of processing quarterly batches of CPCN filings for multiple CLCs through a consolidated MND during the year 1997.

3. Beginning in 1999, the Commission separately identified criteria for "limited" facilities-based authority that did not require preparation of a MND.

4. Beginning with filings made after January 1, 2000, the Commission no longer processed CPCN filings for facilities-based authority on a batched basis, but rather processed each filing individually as a separate application.

5. In view of the revised processing measures for CLC filings for facilities-based CPCN authority, the $2,000 deposit requirement for facilities-based authority no longer accurately reflects the likely costs that will be incurred for processing each CPCN filing on an individual basis.

6. Some administrative CEQA-related costs are incurred by the Commission even when the CPCN filings seek only limited facilities-based authority.

7. The figure of $200 represents a nominal estimate by the Commission staff of the minimum administrative overhead incurred in connection with CEQA work performed for a typical CPCN application exclusive of any costs incurred for preparing an MND or EIR.

Conclusions of Law

1. Facilities-based CLCs are responsible for reimbursing the Commission for the costs of CEQA compliance incurred in connection with processing their applications for certification pursuant to Rule 17(j) of the Commission's Rules of Practice and Procedure.

2. The previously authorized $2,000 deposit per CLC to cover the estimated costs incurred by the Commission in connection with CEQA-related functions as adopted in D.97-04-046 should be revised on a prospective basis.

3. Because the total cost that may be incurred for a particular MND is not known with sufficient certainty at this time, applicants should not be required to deposit the full CEQA fee at the time of filing, but should instead submit an initial deposit of $200.

ORDER

IT IS ORDERED that:

1. The previously required deposit of $2,000 as required by Decision 97-04-046 for competitive local carriers seeking facilities-based local exchange operating authority is hereby revised on a prospective basis.

2. For all applications seeking any kind of facilities-based local exchange authority filed on or after the effective date of this order, the required deposit to be made by the applicant shall be $200.

3. If the applicant seeks more extensive facilities-based authority that requires the preparation of either a mitigated negative declaration or an environmental impact report, however, then the applicant shall remain liable for reimbursing the Commission for additional California Environmental Quality Act (CEQA) costs in excess of the $200 deposit that may be incurred in processing its application.

4. The Commission will bill each applicant for any additional CEQA costs that are applicable once they become known.

This order is effective today.

Dated , at San Francisco, California.

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