California Environmental Quality Act (CEQA)

The California Public Utilities Commission (CPUC) regulates services and utilities, projects consumers, safeguards the environment, and assures Californians’ access to safe and reliable utility infrastructure and services. The essential services regulated include electric, natural gas, telecommunications, water, railroad, rail transit, and passenger transportation companies.

CPUC issues permits for electrical, gas, and water infrastructure projects constructed and operated by public utilities. CPUC must comply with the California Environmental Quality Act (CEQA) when issuing these permits. CPUC also approves of crossings of public rail by roads, other rail lines, or trails and must comply with CEQA as a responsible agency. CPUC also awards grant funding for broadband (telecommunications) projects for a variety of grant programs which is also subject to CEQA. Finally, CPUC must comply with CEQA when evaluating transactions under Public Utilities Code 851 for the transfer or encumbrance of utility property. CPUC’s CEQA and FERC Branch provides support to CPUC Commissioners and Administrative Law Judges in complying with CEQA when making decisions regarding these types of proceedings.

CEQA generally requires state and local government agencies, including the CPUC, to inform decision-makers and the public about the potential environmental impacts of a proposed project and to prevent and minimize damage to the environment. reduce those environmental impacts to the extent feasible. The CPUC conducts environmental reviews pursuant to CEQA, where the CPUC is a lead or responsible agency, and as further specified by the CPUC's CEQA-related rules. The laws and rules governing the CEQA process are contained in the CEQA statute (Public Resources Code Section 21000 and following), the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 and following), published court decisions interpreting CEQA, and locally adopted CEQA procedures.

Below is a description of each CPUC Program/Work Area that is subject to CEQA below.

Programs/Work Areas

Electrical Infrastructure Permitting

Article XII of the California Constitution established the CPUC and gives the CPUC broad authority. The CPUC regulates public utilities in California, including evaluating the need for transmission projects; issuing projects, certificates of public convenience and necessity (CPCNs), and permits to construct (PTCs); and performing the environmental reviews required to be conducted under CEQA prior to the issuance of any new permits. California law also specifically directs that the CPUC is responsible for approving construction of utility facilities, including electrical infrastructure. The CPUC's General Order (GO) 131-E outlines rules for the permitting and construction of electrical transmission lines, power lines, distribution lines, substations, and electric generation facilities in California. GO 131-E defines a transmission line as a line designed to operate at or above 200 kilovolts (kV), a power line as a line designed to operate between 50 and 200 kV, and a distribution line as a line designed to operate under 50 kV and do not require a CPCN or PTC. GO 131-E also identifies a number of project types that are exempt from CPUC permitting, including distribution lines, and contains detailed criteria for determining which permit is required based upon the individual details of the project.

Gas Infrastructure Permitting

GO 177 requires CPUC-regulated gas corporations to file an application for a CPCN prior to commencing construction on any gas infrastructure that meets either of these criteria: the project cost exceeds $75 million; or, (1) project is located within 1,000 feet of a “sensitive receptor” (including housing, educational institutions or health care facilities) and (2) operation of the completed project by the gas corporation requires a permit from the relevant local air quality district. GO 177 outlines CPCN application and notification requirements and specifies the types of exempt projects for which CPCN applications are not required. Because CPUC issues a permit for these types of projects, CPUC serves as lead CEQA agency for these projects.

Water Infrastructure Projects

The CPUC regulates the construction and expansion of water lines, plants, and systems by such private water service providers pursuant to Certificates of Public Convenience and Necessity (CPCNs) (Public Utilities Code Section 1001) and requires that water service providers charge their customers “just and reasonable rates.” (Public Utilities Code Sections 451 and 454). Issuance of CPCNs is subject to CEQA. Because CPUC issues a permit for these types of projects, CPUC typically serves as lead CEQA agency for these projects, but can also serve as responsible agency in certain circumstances.

Rail Crossing Projects

Under Public Utilities Code 1201 et seq., the CPUC is the state agency with exclusive jurisdiction over rail crossings in California. CPUC engineers evaluate the safety of rail crossings and review of proposed construction where roadways or pathways cross railroad or rail transit tracks. Because CPUC has approval authority over these types of rail projects, CPUC serves as responsible agency under CEQA for these projects.

Telecommunications

The CPUC regulates privately-owned telecommunications (i.e., phone and internet) companies and creates policies for the telecommunications industry to ensure fair, affordable universal access to necessary services. This includes monitoring consumer protection and service issues and reviewing, analyzing, and advising on carrier-to-carrier arrangements, interconnection agreements, competitive access issues, and utility applications for mergers, divestitures, and acquisitions. The CPUC also oversees and implements the Universal Service Programs, which are legislatively mandated programs to ensure safe, reliable, affordable, and universal access to telecommunications services.

California Advanced Services Fund (CASF)

CPUC established the Broadband Public Housing Account in the California Advanced Services Fund (CASF) and makes the moneys in the account available to the commission to award grants and loans to low-income communities to finance projects to connect broadband networks that offer free broadband service that meets or exceeds state standards for residents of low-income communities.

Last Mile Federal Funding Account (FFA)

The Last Mile Federal Funding Account (FFA) is a $2 billion grant program administered by the CPUC aimed at funding the construction of last-mile broadband infrastructure projects to connect unserved Californians in both rural and urban areas, with the goal of bridging the digital divide by providing access to high-speed internet where it currently doesn't exist; eligible applicants include service providers, local governments, non-profits, and tribal entities, and projects must meet specific speed requirements to be considered for funding.

21-Day Environmental Review

New entrants to the California telecommunications marketplace that wish to perform new construction must generally undergo CEQA review at the Commission in order to obtain a full facilities-based Certificate of Public Convenience and Necessity (CPCN). A carrier may also obtain a special CPCN through the CPUC’s Telecommunications Division for small-scale projects that are anticipated to be exempt from CEQA. These special CPCNs would allow carriers to submit projects through an expedited 21-day approval process. Applicants must submit a detailed description of the proposed project, a description of the environmental setting, a construction workplan, a statement of the CEQA exemption(s) applicable to the proposed project, and documentation and factual evidence sufficient to support a finding that the claimed exemption(s) is applicable to the CPUC’s Energy Division CEQA staff. The CEQA staff then reviews the submittal and approves or denies the applicant’s claim for exemption from CEQA within 21 days of the applicant’s submittal date. If CEQA staff does not approve the applicant’s claimed CEQA exemption(s), the applicant can either re-design the project and re-apply for an exemption from CEQA or file a formal application with the Commission incorporating a full CEQA review.

For 21-Day questions, please contact npcsubmittal@cpuc.ca.gov. Please also consult the secure file transfer protocol for 21-Day application submissions and the Notice of Proposed Construction template.

Broadband Equity Access and Deployment (BEAD) Program

The Broadband Equity, Access, and Deployment (BEAD) Program, established by the Infrastructure Investment and Jobs Act in 2021 and administered by the National Telecommunications and Information Administration (NTIA), provided $42.45 billion nationally to expand high-speed internet access by funding planning, infrastructure deployment, and adoption programs. California has been allocated $1.86 billion under BEAD, with the CPUC serving as the administering agent. The CEQA Broadband BEAD Section within the CPUC’s Energy Division conducts and/or supports the NTIA in conducting environmental review of projects applying for funding under the BEAD Program to ensure compliance with all applicable Federal, State, and local environmental regulations, including the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA). For general information on California’s BEAD Program, visit the California BEAD Program website.

Section 851 Applications

California Public Utilities Code Section 851 requires that a public utility obtain CPUC approval for the sale, lease, encumbrance, or other disposition of any property, equipment, or other plant assets. A formal Section 851 application must be filed or an Advice Letter filed under General Order 173 to request CPUC approval of these transactions. Disposition of real property is subject to the CPUC’s Tribal Land Transfer Policy where Tribes must be notified of such proposed transactions in advance and provided an opportunity to acquire the property first.

Projects

The CEQA and FERC Branch of the Energy Division conducts and manages environmental reviews of infrastructure projects that are required to file for permits at the CPUC.

The project websites for permit applications that come before the CPUC include electric, gas, water and telecommunications projects. The CPUC maintains websites for both current projects and past projects:

Rules and Regulations

Investor-owned utilities are required to obtain a permit from the CPUC for construction of certain specified infrastructure listed under Public Utilities Code sections 1001. The CPUC reviews permit applications under two concurrent processes: (1) an environmental review pursuant to the California Environmental Quality Act (CEQA), and (2) the review of project need and costs pursuant to Public Utilities Code (PU Code) sections 1001 et seq. and General Order (GO) 131-E (Certification of Public Necessity and Convenience (CPCN) or Permit to Construct (PTC)). Below are resources for permit applicants and public parties interested in participating in CPUC's environmental review and/or the CPUC's economic and need assessment for a particular project.

CPUC General Order (GO) 131-E
General Order 131-D Update
CPUC Decision and Review Process
CPUC Rules of Practice and Procedure (Rule 2.4 CEQA Compliance)
Public Utilities Code Section 1001 et seq. (Basis for granting CPCN)
CEQA Statute and Guidelines (California Natural Resources Agency website)

CPUC Guidance on the Permitting Process

Guidelines for Energy Project Applications Requiring CEQA Compliance: Pre-filing and Proponent's Environmental Assessments (contains 2019 PEA Checklist) Word | PDF
General Guidance for Filing a CPCN/PTC application with the CPUC Docket Office