This report is divided into two parts. The three chapters in part 1 describe environmental conditions and trends. Chapter 1 deals with underlying trends, primarily population growth and economic factors. Chapter 2 covers environmental contaminants, including toxic substances, hazardous waste, air and water pollutants, and overall waste production. Chapter 3 deals primarily with natural resources, examining water, land (including cropland, forestland, rangeland, wildlands, and critical areas), wildlife, energy, and recreation. The five chapters in part 2 analyze several long-range issues that cut across the traditional categories used to describe environmental problems. Chapter 4 reports on several studies that have tried to identify future environmental problems and discusses the factors that are relevant for establishing priorities among these problems. Chapter 5 explains the methodology used in assessing environmental risks, focusing primarily on the analysis of chemicals in the environment. Chapter 6 analyzes the extent to which toxic substances move from air to water to land and the policy implications of such movement. Chapter 7 covers water quality and water quantity problems, the interrelationships between them, and issues related to the management of this vital resource. Chapter 8 explores the relationship between the federal government and the states in implementing environmental policies. (JN)