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Environmental Federalism is the concept of finding the “optimal” balance between state and federal governance of environmental policy. Issues regarding the environment are often not bound by state or national boundaries, so the level of government that is responsible for addressing the issue is often topic for debate. Environmental policy is not always cut and dry. Implementation and enforcement can be difficult to regulate, because of the abundance and variety of stakeholders involved.

Vertical Federalism
Vertical Federalism is what would come to mind for most people when they hear the word “federalism.” As described by Heather Gerken, vertical federalism addresses each issue with the same question: “How should we think of federal-state relations writ large?” The field of vertical federalism is one that is clear, unified, and accepted. Decisions are based off precedent and promote choice and competition. This concept generally refers to interactions between the state and federal governments.

Horizontal Federalism
The less commonly known field of federalism is horizontal federalism. Unlike the “one theory fits all” basis of vertical federalism, horizontal federalism approaches each issue on a case-by-case basis. Context of the issue is very important with evaluation of a problem, and each problem is handled individually. This concept is more commonly applied to interactions between states and the central government, states and other states, and states and their residents. Because of the variance and versatility associated with environmental policymaking, the theory of horizontal federalism is applied often.

Variance in Issues Between States
Two key aspects in the argument over what level of government has control over certain environmental policy is what problem is being addressed, and where the problem is located. For example, imagine a law that protects a specific tree species native to one state, by prohibiting the use of clear cutting. This would be best implemented and regulated in the state in which this problem occurs. Similarly, laws that directly affect treatment of oceans and coastlines are essential to states such as Hawaii and Florida, but do not have a direct effect on landlocked states. Federal intervention is not always necessary in scenarios like these, because it is not an interstate issue. However, the reverse is the case in issues such as carbon emissions, which negatively impact more than just the state that is producing them. Negative externalities like these are referred to as spillovers, and often require federal intervention.

Interstate Spillover
Interstate spillovers are effects that states’ regulations have on other states, because of the inability of the effect to be contained by borders. This is an important aspect of environmental policymaking because environmental problems often affect multiple states at the same time. As put by Heather Gerken, “spillovers force us all to live under someone else’s law.” For example, air pollution from a power plant in one state is likely to travel across state lines, affecting more than just the state in which the plant itself is located. This is where federalism comes into play. The federal government has constitutional powers that gives in some power in the intervention of interstate affairs. Specifically, the Commerce Clause, Necessary and Proper Clause, and Supremacy Clause are utilized to justify federal intervention in state affairs.

Environmental Protection Agency
The Environmental Protection Agency claims that they find their work to be most effective when they are able to successfully collaborate with the state and local governments that their policies and regulations directly affect. An example of an EPA program that required cooperation between the federal and state governments was the implementation of the Navigable Waters Protection Rule. Under this legislation, water systems including certain seas, tributaries, lakes, ponds, and wetlands are subject to federal regulation. Because these water bodies are located within state lines, this policy required cooperation between all levels of government. The EPA states that they value transparency and collaboration when it comes to policies like these.

Federal and State Cooperation
An often occurrence when looking at environmental policy is the partnership between federal and state governments. For example, when the federal government makes a law placing a limit on carbon emissions for the entire country, states have the opportunity to decide how they will adhere to this limit and can go further with environmental protection if they choose. This is helpful when some federal laws apply more to one state than another but is still a requirement for all states to follow.