Plant operation currently consumes about 8 percent of an institution's budget (10-12 percent is not uncommon), of which half is expended on energy. In addition, the deferred maintenance of existing plant, a measure by which many institutions balanced their budget or minimized their deficits, can no longer be postponed. Nationally, an estimated $22 billion to $35 billion worth of maintenance is "now due." Rising energy costs and aging buildings will require institutions to devote an increasing share of their budget to the physical plant. As space becomes more expensive to maintain and operate, the method by which it is allocated and utilized will become of greater concern to the academic community. The issue this paper examines is: Should institutions of higher education cost-account space and physical plant operating and maintenance expenses to their academic units or programs? And if so, should fiscal responsibility include managerial control of the physical environment by those units? It is believed that if academic departments of colleges were financially responsible for their physical environment, the resources of the university's plant used in support of the academic mission would be more effectively utilized. (Author)