This seventh annual report discusses the state of the environment and new or continuing efforts to improve it. The topics are treated in two parts. The first part discusses events of the past year and cites new legislation, court rulings, and other major developments affecting the environment. Part two focuses on conditions and trends by analyzing data to show environmental improvement or deterioration over the years. Chapters in part one of the report deal with pollution, land use and coastal zone management, natural resources, energy, international events, and economics. Chapters in part two explore the environmental consequences of energy technology, air quality, water quality, and environmental indicators. Current projects of the Council on Environmental Quality are included in the appendix. (CS)