Phase 1: glucose is present, so cAMP is low and CAP is inactive; allolactose may release the repressor, but without CAP there is only basal lac transcription, so cells use glucose. When glucose runs out, cAMP rises, CAP-cAMP binds the activator site, and with allolactose inactivating the repressor the lac operon turns fully ON. There is a lag while lac enzymes are made, then a second growth phase on lactose.