Categorical Exclusion Zone On June 14, 1977, the Coastal Commission adopted Categorical Exclusion Order E-77-5, at the request of the City of Newport Beach pursuant to Section 30610 (e) of the Coastal Act. The categorical exclusion is for the demolition and/or construction of all single-family and two-family residences and their appurtenant facilities in most residentially-zoned districts within the City of Newport Beach within the coastal zone. The categorical exclusion, however, does not include the first row of lots adjacent to the beach, bay or wetlands nor is the categorical exclusion applicable to major undeveloped residential sites within the coastal zone, Planned Community zoned districts or gated communities within the City.