Environmental policy is dictated by all branches of government. Most of the day to day responsibility will fall on the Department of Interior and the Environmental Protection Agency, but the legislative branch will write the laws, which will be enforced and dictated by the executive branch and interpreted and upheld or rejected on merits of constitutionality by the judicial branch.
The obvious answer is the Environmental Protection Agency (EPA), but actually that is not exactly how it works. There are actually many agencies that are involved in the implementation of environmental policies, such as the department of energy (investment and subsidies for energy companies), department of transportation (investment and subsidies for public works such as roads or railways), the fish and wildlife service, and others. And as far as formulating policies much of that depends on the congress as they negotiate various bills such as the energy bill, the farm bill, and even the annual budget.
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