Agency Penalizes Firm for Outdoor Genetic Testing

In a decision hailed by environmentalists as a major victory, the Environmental Protection Agency on Monday announced penalties against a California firm for conducting an unauthorized outdoor experiment with genetically engineered bacteria.

The EPA said that it has suspended the experimental license of Oakland-based Advanced Genetic Sciences Inc., and that the agency is seeking $20,000 in fines for four violations of federal pesticide laws.

“EPA is not going to tolerate any infraction of its regulations that govern the biogenetic industry’s pesticide efforts,” John A. Moore, assistant EPA administrator for pesticides and toxic substances, said. “If these rules are complied with, this industry, with its promise of benefits for society, can be safely regulated.”

The experiment involved a genetically engineered product called Frostban, which is supposed to prevent the formation of frost on crops at temperatures as low as 23 degrees Fahrenheit. If it works, scientists believe that it could save millions of dollars in crop damage.

Strawberry Patch Test

Last November, Advanced Genetic Sciences became the first company to win federal approval for an outdoor test of the frost-blocking bacteria. The experiment was scheduled on a test patch of strawberries in Monterey County. The Monterey County Board of Supervisors has blocked the test for an indefinite period because of protests by residents.

However, it was learned this year that the firm already had conducted an outdoor experiment in February, 1985, without federal approval. That experiment was conducted in preparation for the Monterey County test and involved injecting 45 trees with Frostban to determine whether the product would injure the trees.

It was that experiment, conducted on the roof of the company’s building in Oakland, that led to the EPA action Monday. The agency concluded that the company had misrepresented material in its application for approval of the Monterey County test because the earlier test was conducted outdoors on the roof, instead of in a greenhouse.

However, since the EPA announced its investigation last month, the agency has made clear that it was not worried about any danger from the unauthorized experiment--a position environmentalists have challenged.

Basis for Ruling

Moore called the move “a result of the firm’s failure to comply with agency regulations rather than because we have uncovered any adverse effects attributable to the outdoor rooftop tests.”

Thus, the EPA has given Advanced Genetic Sciences a chance to repeat its tests in a greenhouse. The company already has agreed to repeat the tests under proper conditions, and an EPA spokesman said that the agency may review the new experiments by the end of May.

Joseph Bouckaert, president and chief executive officer of Advanced Genetic Sciences, said that the new tests are designed to “restore the confidence” of scientists and the public at large.

He said his company “acted responsibly and in good faith, and at no time did the company knowingly falsify any information to the EPA.”

When these new tests are approved, Advanced Genetic Sciences will be able to get back its license, the EPA said.

Efforts to Continue

However, environmentalists who have fought the tests for three years indicated that they would continue efforts to block any new experiments, including new greenhouse tests.

And they hailed the EPA action, saying it helps them in their ultimate goal of beefing up federal regulations on genetic engineering.

Judy Pennycook, vice president of the Action League for Ecologically Responsible Technology, a group based in Monterey County that has vigorously fought the proposed outdoor release, called the EPA move “a clear signal to the industry that it must behave in a safe and ethical manner.”

And even if Advanced Genetic Sciences succeeds in placating the EPA, it still has Monterey County to deal with. County supervisors there placed the moratorium on genetic engineering experiments after complaining that they were not consulted about the proposed test.

Environmentalists are concerned about possible unforeseen effects of releasing the bacteria, including potential impact on the weather.

Hoping for ‘Reason’

John Bedbrook, vice president and director of research for the firm, said that “a lot of progress” has been made in negotiations with local officials, adding, “I believe reason will win the day in Monterey County.”

But Jeremy Rifkin, who has filed suit to stop the experiments, said that the EPA action is “a major victory” for environmentalists, adding that he intends to pressure the agency to adopt more stringent test-monitoring policies.

Rifkin, president of the Washington-based Foundation on Economic Trends, said he is working with officials in St. Louis County, Mo., to oppose genetic engineering experiments planned by Monsanto, the giant chemical firm.