Federal support for nanotechnology research totaled about $1.3 billion in  fiscal year 2006. The NSTC is an  organization through which the President coordinates science and  technology policies across the federal government. Almost 20 Percent of EHS Research Projects Were Not Primarily Focused on Studying the EHS Risks of Nanotechnology

Although the NNI reported that federal agencies in fiscal year 2006  devoted $37.7 million—or about 3 percent of the total of all  nanotechnology research funding—to research that primarily focused on  studying the EHS risks of nanotechnology, we found that about 18 percent  of the EHS research reported by the NNI cannot actually be attributed to  this purpose. This was largely due to a reporting structure that did not  lend itself to categorizing particular types of projects and limited guidance  provided to the agencies by the NNI on how to consistently report EHS  research. Our review of data on agency funding for 119 projects that were underway  in fiscal year 2006 largely confirmed the figures reported by the NNI. We found that the primary purpose of many of these 22 projects was to  explore ways to use nanotechnology to remediate environmental damage  or to identify environmental, chemical, or biological hazards. Agencies Conduct Additional Research that Also Helps Advance Scientific Knowledge of Potential EHS Risks

In addition to research reported to the NNI as being primarily focused on  the EHS risks of nanotechnology, some agencies conduct research that is  not reflected in the EHS totals provided by the NNI either because they are  not considered federal research agencies or because the primary purpose  of the research was not to study EHS risks. Processes to Identify and Prioritize Needed EHS Research Appear Reasonable and Are Ongoing but a Comprehensive Research Strategy Has Not Yet Been Developed

Ongoing agency and NEHI working group efforts to identify and prioritize  needed research related to the potential EHS risks of nanotechnology  appear reasonable but have not as yet resulted in a comprehensive  research strategy to guide EHS research across agencies. We found that  the EHS risk research undertaken in fiscal year 2006 addressed a range of  EHS topics, was generally consistent with both agency- and NEHI- identified research priorities, and focused on the priority needs within  each category to varying degrees. NNI’s Efforts to Prioritize Research Needs Are Ongoing

In addition to the efforts of individual agencies, the NSET subcommittee  has engaged in an iterative prioritization process through its NEHI  working group, although this process is not yet complete. According to agency and NNI officials, once this  gap analysis is complete, NEHI will formulate a long-term, overarching  EHS research strategy. Agencies’ and the NNI’s Prioritization Processes Appear Reasonable

Despite the fact that a comprehensive research strategy for EHS research  has yet to be finalized, the prioritization processes taking place within  individual agencies and the NNI appear so far to be reasonable. For example, 8 of the 11 projects in the  Instrumentation, Metrology, and Analytic Methods category focused on the  highest-priority need to “develop methods to detect nanomaterials in  biological matrices, the environment, and the workplace.” In contrast, of  the 25 projects related to Nanomaterials and the Environment, 3 addressed  the highest-priority need in the category—”understand the effects of  engineered nanomaterials in individuals of a species and the applicability  of testing schemes to measure effects”—and 11 addressed the fourth- ranked priority—”determine factors affecting the environmental transport  of nanomaterials.” Moreover, although the NEHI working group  considered the five specific research priorities related to human health  equally important, 19 of the 43 projects focused on a single priority— ”research to determine the mechanisms of interaction between  nanomaterials and the body at the molecular, cellular, and tissular levels.”  See table 3 for a summary of projects by agency and specific NEHI  research priority. Coordination Processes Have Fostered Interagency Collaboration and Information-Sharing

Agency and NNI processes to coordinate research and other activities  related to the potential EHS risks of nanotechnology have been generally  effective, and have resulted in numerous interagency collaborations. Furthermore, the NEHI working group has adopted a number of practices  GAO has previously identified as essential to helping enhance and sustain  collaboration among federal agencies. Finally, all agency officials we spoke with expressed satisfaction with their  agency’s participation in the NEHI working group, specifically, the  coordination and collaboration on EHS risk research and other activities  that have occurred as a result of their participation.
Why GAO Did This Study

The National Nanotechnology Initiative (NNI), administered by the Office of Science and Technology Policy (OSTP), is a multiagency effort intended to coordinate the nanotechnology-related activities of 25 federal agencies that fund nanoscale research or have a stake in the results. Nanotechnology is the ability to control matter at the scale of a nanometer--one billionth of a meter. A key research area funded by some federal agencies relates to potential environmental, health, and safety (EHS) risks that may result from exposure to nanoscale materials. Because of concerns about federal efforts to fund and prioritize EHS research, GAO was asked to determine (1) the extent to which selected agencies conducted such research in fiscal year 2006; (2) the reasonableness of the agencies' and the NNI's processes to identify and prioritize such federal research; and (3) the effectiveness of the agencies' and the NNI's process to coordinate this research. GAO reviewed quantitative and qualitative data from five federal agencies that provided 96 percent of fiscal year 2006 funding for EHS research.

What GAO Found

The NNI reported that in fiscal year 2006,federal agencies devoted $37.7million--or 3 percent of the $1.3 billion total nanotechnology research funding--to research that was primarily focused on the EHS risks of nanotechnology. However, about 20 percent of this total cannot actually be attributed to this purpose; GAO found that 22 of the 119 projects identified as EHS-related by five federal agencies in fiscal year 2006 were not focused on determining the extent to which nanotechnology poses an EHS risk. Instead, the focus of many of these projects was to explore how nanotechnology could be used to remediate environmental damage or to detect a variety of hazards. GAO determined that this mischaracterization is rooted in the current reporting structure which does not allow these types of projects to be easily categorized and the lack of guidance for agencies on how to apportion funding across multiple topics. In addition to the EHS funding totals reported by the NNI, federal agencies conduct other research that is not captured in the totals. This research was not captured by the NNI because either the research was funded by an agency not generally considered to be a research agency or because the primary purpose of the research was not to study EHS risks. Federal agencies and the NNI are currently in the process of identifying and prioritizing EHS risk research needs; the process they are using appears reasonable overall. For example, identification and prioritization of EHS research needs is being done by the agencies and the NNI. The NNI also is engaged in an iterative prioritization effort through its Nanotechnology Environmental and Health Implications (NEHI) working group. NEHI has identified five specific research priorities for five general research categories, but it has not yet completed the final steps of this process, which will identify EHS research gaps, determine specific research needed to fill those gaps, and outline a long-term, overarching EHS research strategy. GAO found that the focus of most EHS research projects underway in fiscal year 2006 was generally consistent with agency priorities and NEHI research categories and that the projects focused on the priority needs within each category to varying degrees. The anticipated EHS research strategy is expected to provide a framework to help ensure that the highest priority needs are met. Agency and NNI processes to coordinate activities related to potential EHS risks of nanotechnology have been generally effective. The NEHI working group has convened frequent meetings that have helped agencies identify opportunities to collaborate on EHS risk issues, such as joint sponsorship of research and workshops to advance knowledge and facilitate information-sharing among the agencies. In addition, NEHI has incorporated several practices that are key to enhancing and sustaining interagency collaboration, such as leveraging resources. Finally, agency officials GAO spoke with expressed satisfaction with the coordination and collaboration on EHS risk research that has occurred through NEHI. They cited several factors they believe contribute to the group's effectiveness, including the stability of the working group membership and the expertise and dedication of its members.