Picking up the tab.

• Author: Savage, Melissa
• Position: IN BRIEF: ENVIRONMENTAL COSTS

State environmental agencies conduct most of the work associated with protecting the environment by enforcing rules and regulations issued at the federal level. Increasingly, however, money from the federal government to do that work is drying up.

The states, under federal rules, are responsible for implementing about 90 percent of all the federal environmental rules, including review and issuance of permits, project oversight and overall enforcement. From 2005 through 2008--while the United States was enjoying somewhat better economic times the states took on more of the expenses associated with enforcing federal environmental rules and regulations such as the Clean Air Act and the Clean Water Act.

State spending during the three-year period doubled, while the federal government decreased its support by about $650 million, according to a study released by the Environmental Council of States. This funding lag happened while the states were required to carry out an increasing number of federal environmental rules each year.

"At a time when states must implement about 40 new federal environmental rules a year, one would expect that federal support would be on the rise," says council Executive Director R. Steven Brown, the study's author. "Yet federal funds now average only about 23 percent of the source of all state environmental agency funds, a significant cut from 39 percent in FY 2005."

Furthermore, the council's study suggests the federal government is gradually passing on implementation expenses to the states by separating the issuance of environmental rules from discussion about costs.

Data from the 49 states studied by the council indicated states had to turn to other funding streams such as permit fees, bonds and state trust funds instead of using general fund money. The council's data show general fund spending on environmental rules increased slightly from 2005-2008 while expenditures from those other sources doubled.

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Now many wonder what effect the souring economy will have on the ability of states to keep pace with general fund spending on environmental protection. The council's study speculates that "states able to acquire alternate funding sources [such as increased permit fees] will be able to continue implementing new federal rules, while other states will be faced with progressively more difficult implementation pressures."

According to the council, states with other funding streams to help pay for...