7. California Environmental Quality Act
Under the California Environmental Quality Act (CEQA) and Rule 2.4 of the Commission's Rules of Practice and Procedure (Rules), we must consider the environmental consequences of projects that are subject to our discretionary approval.4 Thus, we must consider whether approval of this application will alter an approved project, result in new projects, or change operations in ways that have an environmental impact.
Valencia expects that it will use the entire $30 million proposed financing proceeds to retire senior secured notes due June 15, 2009, and to reimburse its treasury for monies expended and to be expended for the construction, completion, extension, or improvement of utility plant facilities. This decision does not authorize any capital expenditures or construction projects. New construction projects which Valencia intends to finance via this application should undergo a CEQA review as early as feasible in the planning process, as required by CEQA Guidelines Section 15004(b). To the extent capital expenditures are financed with the proceeds of the long-term debt issued pursuant to this decision, CEQA review should occur to the extent needed through the regulatory processes applicable to each capital project.
4 Pub. Resources Code Section 21080.
