This JLARC-initiated study examines the performance of 12 capital budget-funded grant and loan programs that, together, fund over $400 million in environmental quality projects during the 1999/01 Biennium. The audit reviews the performance of these programs from an investment perspective new way of examining the performance of such programs. Two questions are addressed what are the results of the investments made thus far, and which investment practices are in place to produce desired long-term results? The audit finds that many programs lack key features for fostering sound long-term environmental investments. Recommendations to improve program investment performance and grant and loan services to local governments are made.