What steps must a public agency take to determine whether or not a project is exempt from a CEQA environmental review?

"To achieve these goals, CEQA and the implementing regulations provide for a three-step process. In the first step, the public agency must determine whether the proposed development is a 'project,' that is, 'an activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment' undertaken, supported, or approved by a public agency." (Tomlinson v. County of Alameda (2012) 54 Cal.4th 281, 286 (Tomlinson), quoting 21065.) If the proposed activity is a project, the public agency must decide "whether it is exempt from compliance with CEQA under either a statutory exemption ( 21080) or a categorical exemption set forth in the regulations ( 21084, subd. (a); [Guidelines], 15300). A categorically exempt project is not subject to CEQA, and no further environmental review is required. [Citations.] If the project is not exempt, the agency must determine whether the project may have a significant effect on the environment. If the agency decides the project will not have such an effect, it must 'adopt a negative declaration to that effect.' ( 21080, subd. (c); see [Guidelines], 15070; [citations].) Otherwise, the

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