Federal agency activities, such as those of the Tennessee Valley Authority, the Bonneville Power Authority, and the military departments often contribute significantly to ambient loads of air, water, and noise pollution. In recognition of the seriousness of these sources, Congress, in §118 of the Clean Air Act,¹ §313 of the Federal Water Pollution Control Act,² and §4 of the Noise Control Act of 1972,³ provided that all federal agencies operating facilities or engaging in activities that may result in air, water, or noise pollution shall comply with federal, state, interstate, and local pollution control and abatement requirements to the same extent that any person is subject to such requirements.

Although this mandate seems unambiguous, §118 of the Air Act, which is set forth below,⁴ has been the subject of conflicting interpretations by federal officials and state pollution control agencies. State officials have argued that the law clearly subjects federal facilities to all state air pollution control requirements, including the necessity of obtaining state permits before emitting air pollutants. The federal contention on the other hand has been that although government facilities must meet substantive emissions standards set by state implementation plans, they are not bound to comply with state procedural requirements, such as permit regulations also contained in those plans. Executive Order No. 11752,⁵ which was issued by President Nixon on December 17, 1973, formally stated this position as executive policy. Section 1 of the Order provides that: