“The problem is that agencies like EPA just have too little budget and the agencies that are doing research and development and advancing nanotechnology are much stronger financially,” Sass says.

This week the NRDC filed the first-ever lawsuit to block the use of a nano chemical in a commercial product - specifically, antimicrobial "nanosilver" used in clothing, baby blankets and other textiles. Sass says the EPA approved the chemical on the condition that safety data would be supplied over four years.

“And we don’t think that’s good enough. We think that these chemicals should not be in commercial products until they have been fully tested.”

Sass suggests consumers can fight back with their pocketbooks.

“So consumers can avoid buying things that say they are colored with nanosilver or advertise that they have antimicrobial or germ-fighting properties in the clothing. Nobody needs germ free clothing.”

The National Research Council report recommends replacing the U.S. National Nanotechnology Initiative that currently coordinates efforts across 25 government agencies, but has no authority over management, budget or research.

The committee also warns against cuts to the $120 million annual budget for nanotechnology health and safety research.