The CEQA process begins with a preliminary review as to whether CEQA applies to the project
in question. Generally, a project is subject to CEQA if it involves discretionary action by an
agency that may cause a significant effect on the environment. Once the agency determines that
the "project" is subject to CEQA, the lead agency must then determine whether the action is
exempt under either a statutory or categorical exemption (14 Cal. Code Regs. 15061).