3. Overview of CEQA
CEQA requires public agencies,6 under certain conditions, to identify the significant environmental effects7 of their actions, and alternatives to these actions, and to either avoid or mitigate those significant environmental effects, where feasible.8 CEQA applies to a government action if it involves a discretionary decision of a public agency, a public agency is approving an activity that may have a significant effect on the environment, and it falls within the definition of a project.9 In determining whether an activity constitutes a project, a public agency must look at all of the parts, components, and phases of the activity.10
A "lead agency" determines whether a government action constitutes a project. A lead agency is the public agency that has the principal responsibility for carrying out or approving a project which may have a significant effect upon the environment.11 A "responsible agency" is a "public agency, other than the lead agency, which has responsibility for carrying out or approving a project."12
Once a lead agency has determined that an activity is a project under CEQA, the lead agency must decide whether an exemption applies.13 If an exemption does not apply to a project, then the lead agency must prepare an initial study to determine whether to prepare either a negative declaration14 or an environmental impact report (EIR).15 If the lead agency finds that there is no substantial evidence showing that the project will have a significant effect on the environment, it must prepare a negative declaration. In some cases, a public agency may find that certain measures can be incorporated in, or changes made, to the project description that would mitigate any significant environmental impacts, and that an EIR may not be necessary. In those cases, the public agency prepares a "mitigated negative declaration."16
If the lead agency determines that a government activity is a project, is not exempt from CEQA, and may cause significant effects on the environment that cannot be addressed by a mitigated negative declaration, then the lead agency must prepare an EIR.
6 "`Public agency' includes any state agency, board, or commission, any county, city and county, city, regional agency, public district, redevelopment agency, or other political subdivision." (Pub. Res. Code, § 21063.)
7 "`Significant effect on the environment' means a substantial, or potentially substantial, adverse change in the environment." (Pub. Res. Code, § 21068.)
8 "`Feasible' means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors." (Pub. Res. Code, § 21061.1.)
9 "`Project' means an activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and which is any of the following: "(a) An activity directly undertaken by any public agency. (b) An activity undertaken by a person which is supported, in whole or in part, through contracts, grants, subsidies, loans, or other forms of assistance from one or more public agencies. (c) An activity that involves the issuance to a person of a lease, permit, license, certificate, or other entitlement for use by one or more public agencies." (Pub. Res. Code, § 21065.)
10 California courts have interpreted the statutory definition of the definition of "project" (particularly the phrase "whole of the action") as meaning that it is contrary to CEQA to break up a project into smaller components to avoid CEQA requirements. (See CEQA Guidelines, 14 Cal. Code Reg., § 15378(c); Laurel Heights Improvement Association v. Regents of the University of California (1988) 47 Cal. 3d 376, *394-*396.)
11 Pub. Res. Code, § 21067.
12 Id., § 21069.
13 CEQA Guidelines, 14 Cal. Code Reg., § 15061(b).
14 "Negative declaration' means a written statement briefly describing the reasons that a proposed project will not have a significant effect on the environment and does not require the preparation of an environmental impact report." (Pub. Res. Code, § 21064.)
15 An EIR is a detailed statement discussing any potential significant environmental impacts of a project. An EIR " . . . shall be considered by every public agency prior to its approval or disapproval of a project. The purpose of an environmental impact report is to provide public agencies and the public in general with detailed information about the effect which a proposed project is likely to have on the environment; to list ways in which the significant effects of such a project might be minimized; and to indicate alternatives to such a project . . ." (Pub. Res. Code, § 21061.)
16 "Mitigated negative declaration' means a negative declaration prepared for a project when the initial study has identified potentially significant effects on the environment, but (1) revisions in the project plans or proposals made by, or agreed to by, the applicant before the proposed negative declaration and initial study are released for public review would avoid the effects or mitigate the effects to a point where clearly no significant effect on the environment would occur, and (2) there is no substantial evidence in light of the whole record before the public agency that the project, as revised, may have a significant effect on the environment." (Pub. Res. Code, § 21064.5.)
