Government approval procedures, even if they slow down the rate at which newer and safer products come on the market. CEQ says EPA is beginning to use risk management to try to lessen this bias. CEQ is particularly supportive of efforts to use marketplace incentives to reduce pollution and preserve natural resources. EPA's expansion of the bubble policy whereby companies can buy and sell pollution credits for future use is seen as a strong incentive for firms to reduce pollution. CEQ contends that in some cases government regulations and subsidies have created shortages of natural resources that otherwise would not exist in a free market economy. Specifically, the report points to deregulation of oil and natural gas as an example of what can happen in a more open market—prices and consumption both fell. Thus, CEQ concludes that potential natural resource scarcities, such as the water crisis in the West,
can be eliminated by conveying the right price signals to private markets, and by avoiding the cost distortions that are created through subsidies or stiff regulations. CEQ urges that more policies be created to take advantage of marketplace incentives. Another area recognized in this year's report is the large amount of natural resource conservation accomplished by private groups, both profit and nonprofit. CEQ cites dramatic increases in voluntary efforts to enhance recreational and wildlife habitats and the contributions of land and money to benefit national parks and wildlife refuges. A special chapter presents 12 case studies of such conservation efforts. Copies of CEQ's report, "Envir o n m e n t a l ' Q u a l i t y 1984," can be obtained from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The stock number is 041-01100078-5 and the price is $16. •
Biotech regulatory policy issues aired The steady advance of genetic engineering products to the marketplace is taking a breather as both regulators and businesses wait for action by the Administration and Congress. In Washington, D.C, last month, the second annual conference on biotechnology held by Brookings Institution tried to get things moving as it discussed scientific and policy issues affecting biotechnology. It concluded that the likelihood of regulatory changes this year seems small. Serving as groundwork for this year's conference were two reports on genetically engineered organisms. The first is a draft report from the Office of Technology Assessment that comes from a workshop held by OTA in collaboration with the National Science Foundation this past November. The primary concern discussed in this report is the
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horizontal transfer of genetic material between species. The report's most important conclusion is that, at least for the time being, each application for a genetic release must be assessed individually. An extensive review of the legal and regulatory status of genetically engineered organisms also was presented at the conference. Prepared by an ad hoc committee with government and business representatives including conference organizer Robert B. Nicholas of the law firm Blum, Nash & Railsback of Washington, D.C., the report focuses on genetically engineered microorganisms and plants. It considers both the risks and potential benefits of biotechnology and details the government response to the supposed risks. The past year represented a highwater mark for genetic engineering activities. The Environmental Protection Agency's approval of a field test of an altered bacterium on straw-
berries was significant, as was the formation of a new biotechnology review board by the Administration comprising all the interested federal regulatory agencies. Also of key importance were the introduction in December of a bill by Sen. David Durenberger (R.-Minn.) to regulate biotechnology and a report critical of the Department of Agriculture's biotechnology programs from the General Accounting Office. Judging by the attitudes of the conference participants, 1986 is more likely to be a year of introspection. Although two House committees, Science & Technology and Energy & Commerce, are in the process of writing legislation to regulate biotechnology, the bills are not expected for some time. Consequently, the probability that a new biotechnology law will be passed this year is very low. The Administration, on the other hand, continues to maintain that existing laws provide all the protection that is needed.
On the science side, the OTA draft report makes recommendations for improved basic research on the fate of bacteria in the environment and concludes that, for now, the present case-by-case analysis of field test experiments is the best way to go. One problem mentioned is that because this kind of ecological research is not on the cutting edge of science, it is hard to persuade federal granting agencies to fund such mundane work. This will have to change, the report states. Scientists at the conference agreed with this assessment. They also wondered if a lot of poor information given to the public about biotechnology has led to overanxiety about its use. They noted that a large body of population dynamics research on bacteria is available that can be used to answer at least some of the questions raised about the safety of releasing altered organisms into t h e environment. David Hanson, Washington
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