6. This Application is Exempt from California Environmental Quality Act (CEQA) Requirements

CEQA applies to projects that require discretionary approval from a governmental agency, unless exempted by statute or regulation. It is long established that the act of ratemaking by the Commission is exempt from CEQA review. As stated in the California Public Resources Code, the "establishment, modification, structuring, restructuring or approval of rates, tolls, fares, or other charges by public agencies" is exempt from CEQA.2 Likewise, funding decisions are not "projects" subject to CEQA.3

2 Public Resources Code Section 21080(b)(8).

3 See, Citizens to Enforce CEQA v. City of Rohnert Park (2005) 131 Cal.App.4th 1594, 1601.

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