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03/27/2007 rather than adverse environmental effects. As such, the program meets the intent of the "common sense" exemption under CEQA, and is hereby granted such an exemption by the City of Redwood City. NEPA compliance: The Federal Transit Administration (FTA) is the funding entity for the federal funding component of the program. According to the MTC, the FTA issues guidance, often in the form of circulars, to provide grantee direction on program-specific issues and statutory requirements. Circular C5620.1, titled "Guidelines for Preparing Environmental Assessments," was issued in October 1979 and provides guidance in the preparation and review of environmental assessments of mass transportation projects. The guidance identifies three classes of action that require different levels of environmental analysis and documentation. Projects are place in one of these three classes according to the probable significance of their impacts on the human environment. Class 1 actions normally have a significant impact on the environment and thus require an Environmental Impact Statement (EIS). Class 3 actions are those in which the significance of the impacts on the environment is not clearly established and for which an Environmental Assessment (EA) is prepared to determine the probable impacts. Class 2 actions normally do not entail significant impacts on the environment and, therefore, require neither an EIS nor an EA. These actions are considered categorical exclusions under NEPA. One type of categorical exclusion under Class 2 actions includes "operating assistance to transit authorities to continue existing service or increase service to meet demand." According to the MTC, this is the appropriate categorical exclusion for the federal funding component of the Redwood City Community Shuttle Service Pilot Program, and is hereby used by the City of Red ATTY/RESO/RES0.1688 030707 14768 Muff # 702 4