8. Environmental Review

Applicants contend this application does not constitute a "project" under the California Environmental Quality Act (CEQA) since Applicants are not requesting authorization related to facilities construction or other activity that would constitute a direct or indirect physical change in the environment.

Under the CEQA, we must consider the environmental consequences of projects, as defined, that are subject to our discretionary approval. (Public Resources Code § 21080). While transfers of utility assets are generally projects subject to CEQA review by the Commission, the facts of this case indicate that this sale, while a project, is not subject to CEQA. Based upon the record, this transaction does not have the potential for causing a significant effect on the environment, and accordingly, the Commission need not perform further CEQA review. (CEQA Guideline 15061(b)(3).)

We note that any approval granted herein under Section 854 for the acquisition of the stock of Evans Telephone does not authorize Applicants to construct facilities. In addition, applicants must follow all applicable environmental regulations should they wish to construct any facilities.