5. Environmental Review

The California Environmental Quality Act (CEQA) requires the Commission to consider the environmental consequences of projects that are subject to the Commission's review and approval.²² CEQA defines a "project" as an activity that (i) involves the issuance of a lease, permit, license, certificate, or other entitlement for use by one or more public agencies; and (ii) may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.²³

The Applicants' request for Commission authority under § 854(a) for Mail.com to acquire NetMoves qualifies as an "entitlement for use" under CEQA. Therefore, the acquisition meets the first test for determining if it is a "project" under CEQA. However, it can be seen with certainty that Mail.com's acquisition of NetMoves will not cause a direct or indirect physical change in the environment because (1) NetMoves is a switchless reseller with no facilities of its own, and (2) the acquisition will not result in any changes to the operations of NetMoves. Therefore, the acquisition does not meet the second test for determining if it is a "project" under CEQA. Accordingly, the Commission need not perform further CEQA review of the acquisition.²⁴