By: Ethan Lee
When it comes to transporting hazardous materials, the regulatory landscape can be a minefield of permits, approvals, and international standards. Few people understand this world better than Ryan Paquet, the President of Hazmat Safety Consulting.
With over 20 years of experience, including a decade serving as the Director of Approvals and Permits Division for the USDOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA), Ryan offers a unique “insider” perspective on how the government processes critical safety applications. We sat down with Ryan to discuss his transition to the private sector, the challenges of introducing new technologies to the market, and the importance of international diplomacy in logistics.
Q: You bring over 20 years of experience to your role as President of Hazmat Safety Consulting, including a decade leading the Approvals and Permits Division at PHMSA. How does having that specific “regulator’s mindset” allow you to help your clients navigate government boundaries more effectively than they could on their own?
Ryan Paquet: I was fortunate enough to serve the American people at the USDOT for over 16 years, and I loved being a federal employee. The benefits of that experience for our clients include a deep understanding of what information government employees need to make decisions. We tend to look at government as a machine, when in fact it is a group of well-meaning individuals whose days are spent working for all of us. We have to provide a good story and enough data to compel the human within the government to say “yes” to our request, whether that is a waiver, approval, or regulatory change.
Q: During your time at the Department of Transportation, you led the processing of special permits and approvals. For a company currently struggling to get a new application through, what is the biggest misconception they often have about how that government process works?
Ryan Paquet: One misconception of the special permit or approval process is that receiving a denial is the end of the conversation. It does not need to be. The permit and approval review process is remarkably sound for standard applications, but for new technologies or methods, it can be overly conservative. For precedent-setting operations, the decision on approval or denial will often need to be made at the Director or executive level. This means that if you receive a denial, then use the denial reasoning to develop a sounder argument and file for reconsideration. The process that we created during my tenure ensures that the reconsideration will be elevated to at least the Director/Executive level, where policy decisions are made. There is a perceived administrative risk in approving a precedent-setting application, which is why many of those applications are initially denied and only approved when the policymakers are involved and confident that the decision is safe and provides a benefit that outweighs the actual risk in transport.
Q: Your bio mentions that you led government responses to “worldwide recalls” and national disasters. When a crisis hits a supply chain involving dangerous goods, what is the first step an organization needs to take to mitigate risk and ensure compliance?
Ryan Paquet: During my tenure as Director of Approvals and Permits, we were actively involved in the Galaxy Note 7 recall, the Tabata Airbag recall, the Ebola Virus scare, and numerous earthquake, hurricane, and flood responses. In these cases, making the toughest decisions fast led to better outcomes. I remember reading about the Tylenol recall in graduate school and the immediate decision to pull all the product off the shelves. The idea of reducing the potential for further harm and controlling the narrative enables more confident actions later. If you have a faulty product, haven’t determined a root cause, and don’t have enough data to differentiate between production lots, then the best course of action may be to pull back everything. After forensic analysis, you may find that it was only one production site or lot, and the others can be re-entered into the market. If the recall is driven by a problem with lithium batteries, make sure your recall provides adequate resources to ensure that these batteries aren’t just being tossed in garbage cans, and transferring the risk to the men and women that collect our trash every day, have a plan to either have the batteries collected or sent in for destruction, in a package that will mitigate the hazard of the battery.
Q: You previously served as Assistant Director of International Standards, representing the U.S. at the UN and the International Maritime Organization. Why is international alignment so critical for today’s transporters, and how do you help clients bridge the gap between domestic and international regulations?
Ryan Paquet: My role as Assistant Director of International Standards for PHMSA was a dream job, where I had the honor of representing the USA in international forums. Fortunately, we at Hazmat Safety Consulting still participate in many of these bodies representing industry through NGO’s with observer status. As with other committees, there is a process and pace that must be followed to be successful in bringing new topics or proposing changes to the existing regulations. We have successfully represented many clients by championing proposals at the United Nations Subcommittee of Experts on the Transport of Dangerous Goods, where all global dangerous goods regulations are originated. Our active participation has enabled us to build relationships with colleagues and access resources on every continent.
When representing a client with (or seeking) a global presence, we provide strategic guidance on how to bring their innovation to the world. We have clients with facilities in every corner of the globe, and others that are expanding their footprint; in both scenarios, taking an active role in future regulations is paramount to lasting success.
Q: You have dealt extensively with the “introduction of new technologies into the US market.” As innovation outpaces regulation in many sectors, how do you help companies bring novel products to market without being stalled by outdated safety codes?
Ryan Paquet: HazMat Safety Consulting prides itself on helping companies bring their innovations to the global marketplace safely. When working with innovation and innovators, it is always best to develop strategies for the short-, mid-, and long-term. These can be as simple as: How is your product regulated today? What is the actual risk in transport? How can we mitigate the risks? How can we, through sound engineering or operations, reduce our regulatory burdens and more easily get our innovations wherever we need them? It’s important to understand all of the tools we have at our disposal: Special permits, approvals, interpretations, packaging solutions, testing, and regulatory changes. My best advice for innovators is to have a trusted partner that understands the regulatory framework and is an active advocate for your company and industry.
To learn more about hazardous materials transportation safety and consulting, visit https://hazmatsafety.com/.
