No, Mr. Q, while your observation regarding federal preemption is generally correct, your application of those observations to the NCRA is not quite right. The Interstate Commerce Act does preempt all local, state and other federal laws affecting railroad operations (in the broadest sense of that word), but it has no bearing or any effect whatsoever upon the conditions that the legislature may attach – and has attached – to the money provided by the State of California. If NCRA wants to use TCRP, TCI or any other State funds to fix the railroad, then it must comply with the CEQA requirements. That condition applies irrespective of the intended use – the obligation attaches to the money, the cash, the dollars, not to the intended use. If NCRA used federal money, then NEPA might apply, but CEQA would probably not apply. Similarly, federal categorical exclusions issued by FEMA or any other federal agency in compliance with NEPA are irrelevant with respect to the CEQA requirements arising from the acceptance of State dollars. However, if NWP Co. used private money to fund the work, then there would be no environmental review whatsoever.