EPA and states share responsibility for protecting public health and the environment. Since 1995, EPA and states have been implementing the National Environmental Performance Partnership System (NEPPS), an environmental performance system designed to improve the efficiency and effectiveness of state-EPA partnerships. Several fundamental concepts underlie NEPPS. Goals, priorities, and strategies should be based on information about environmental conditions, including consideration of local conditions and respecting the need for a 'level playing field' across the country. Performance should be evaluated based on results that are achieved in the environment. By taking full advantage of the unique capacities of EPA and states and leveraging our collective resources most efficiently and effectively, we can achieve the greatest results. Performance partnerships in which EPA and states set priorities, design strategies, and negotiate grant agreements together are integral to the planning and implementation of our national environmental programs. To advance the joint planning that is central to performance partnerships, the Office of Congressional and Intergovernmental Relations (OCIR) is issuing this guidance in conjunction with the Agency-wide process for production and review of national program guidance through the Office of the Chief Financial Officer (OCFO). This guidance sets out an overarching goal for performance partnerships as well as objectives and strategies for FY 2008-20011.