(a) Whenever any public agency to the state board for discretionary financial assistance from the state board for a project to be undertaken by such public agency, the application shall be supported by an Initial Study and an adopted Negative Declaration, or a Final Environmental Impact Report, as required by CEQA, or the public agency shall provide documentation to support the basis for a statutory or categorical exemption from CEQA.

(b) Whenever any person that is not a public agency applies to the state board for any form of discretionary financial assistance for a project to be undertaken by such person, the application shall be submitted with sufficient information and data to determine whether the project may have a significant effect on the environment. If the supplied information and data indicate that the project will have a significant effect on the environment, then such person shall submit with the application sufficient information and data to determine feasible changes in the project that mitigate or avoid the substantial adverse changes in the environment. This information may be supplied in the form of a draft EIR or an Initial Study and Negative Declaration. However, regardless of the format used, the state board shall not use the information or documents as its own without an independent evaluation and analysis of such information or documents.