The EPA says that lead bullets are safe, so long as they're not propelled by a weapon in the direction of a person of course.

The agency on Friday, Aug. 27, 2010, denied a petition calling for a ban on the production and distribution of lead hunting ammunition. The agency sent a letter to the petitioners explaining the rejection.

"EPA today denied a petition submitted by several outside groups for the agency to implement a ban on the production and distribution of lead hunting ammunition," wrote Steve Owens, EPA assistant administrator for the Office of Chemical Safety and Pollution Prevention, in the letter. "EPA reached this decision because the agency does not have the legal authority to regulate this type of product under the Toxic Substances Control Act (TSCA) – nor is the agency seeking such authority."

Owens noted that similar petitions for, e.g., lead fishing sinkers, under TSCA would likely be met with the same "we don't have nor want that authority" response.

SOURCE: EPA Press Release