This report discusses the progress in the development and clarification of the term "environmental literacy" (EL) and suggests ways in which the term may be used to advance the field of environmental education. Part I presents the evolution of EL beginning with a description of the concept as a goal of general education. Discussed in this section is the concept of literacy in general, scientific and environmental literacies, and the essence of EL. The section concludes with a summary of the evolution of the term "EL" from 1969 to 1989. Part II presents a description of the operationalizing of the concept in four sections: (1) refining and clarifying the definition of EL in the l990's; (2) an EL continuum; (3) stages of environmental literacy; and (4) levels or degrees of EL. The specific aspects of the three major levels, nominal EL, functional EL, and operational EL are described. The third and final part explores directions for the 1990's and includes questions concerning: whose responsibility it is to stimulate and nurture EL; EL and Higher Education; and assessing EL. The appendix lists terms and concepts that environmentally literate citizens should understand. (38 references) (MCO)