April 14, 2000

Mr. James K. O'Steen
Director
Office of Hazardous Materials Technology
DHM-20
U.S. Department of Transportation
Research and Special Programs Administration
400 Seventh Street, SW
Washington, DC 20590-0001

RE: RSPA Risk Management Initiative

Dear Mr. O'Steen:

On behalf of the undersigned organizations, we are writing to thank you for the update about the Research and Special Programs Administration's (RSPA) initiative to encourage industry self-evaluation of hazardous materials transportation practices that you provided on January 7, 2000. We agree with RSPA that managing the risks associated with the transportation of hazardous materials serves to protect the public, our employees and the environment from unintended releases of hazardous materials. However, we also want to reaffirm the concerns we raised during that meeting about aspects of this initiative and suggest that RSPA's best opportunity to better manage risk lies in a comprehensive review of its own regulatory program.

As you pointed out, the risk presented by hazardous materials transportation is minimal compared to other risks in society. We believe this is the success story of the hazardous materials regulations and industry's ongoing efforts to reduce transportation risks in ways that are appropriate for different segments of the regulated community. Indeed, during your presentation, you recognized several success stories that demonstrate the variety of industry efforts to voluntarily manage risk. However, it is precisely because of the diversity in the hazardous materials industry that we have concern about any risk management initiative that would attempt to develop a standardized "one-size-fits-all" best practices methodology. In addition, an initiative that would try to create a "best practices" methodology that could be applied to each and every industry segment would overwhelm RSPA resources.

Industry and government share a common interest in assuring the safe, efficient transportation of hazardous materials. We have worked closely with RSPA in the development of a safety program for this heavily regulated industry. You acknowledge that additional regulatory actions are unlikely to bring sweeping new improvements in safety and, as a result, the agency has undertaken a review of existing industry risk management programs. We appreciate RSPA's attention to the accomplishments of these programs and suggest that the agency could create a data bank of these programs that would be accessible to companies and associations that may be interested in using or adapting them for their own purposes. Keeping these programs and the importance of risk management in front of the regulated community is a public service message that helps stimulate interest and participation in risk management programs.

There is also another approach that RSPA should consider as it determines the proper course to follow with respect to risk management. The agency could conduct an assessment of the hazardous materials transportation continuum as a whole and then focus RSPA's resources on the critical control points within that continuum, to minimize the risks at those points. The transportation of hazardous materials is a complex process. A typical shipment may be handled by as many as four or five different parties before it reaches its final destination, as it goes from the shipper, to the carrier, possibly to a warehouse, and the customer. It may travel by more than one mode. It may be one of a number of increasing international shipments subject not only to domestic regulations, but international requirements as well. Given the complexity of this transportation continuum, there is potential for error at any point. To decrease the risk of an incident, RSPA already has in place comprehensive regulations that require controls throughout this transportation chain. However, RSPA's assessment of this chain will likely identify points within the continuum at which risks may be greater. RSPA should use HMIS incident data and recent cross-modal studies of the program's effectiveness to identify areas of concern. The agency should then focus its resources to address these concerns. This approach would provide RSPA with the direct ability to minimize the risks associated with the transportation of hazardous materials.

We would be interested in continuing our dialog about risk management and these ideas, and we invite you and your contractor, ICF, to join us at an upcoming meeting. We will call you to select a convenient date.

Sincerely,

Meredith Grider Co-Facilitator

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Cynthia Hilton Co-Facilitator

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Paul Rankin Co-Facilitator

American Petroleum Institute
American Trucking Associations, Inc.
Chemical Manufacturers Association
The Chlorine Institute, Inc.
Compressed Gas Association|
Committee on Radionuclides and Radiopharmaceuticles
Conference on Safe Transportation of Hazardous Articles
The Fertilizer Institute
Hazardous Materials Advisory Council
Institute of Makers of Explosives
National Association of Chemical Distributors
National Industrial Transportation League
National Paint and Coatings Association
National Tank Truck Carriers, Inc.
Nuclear Energy Institute
Petroleum Marketers Association of America
Radiopharmaceutical Shippers & Carriers Conference, Inc.
Railway Progress Institute
Reusable Industrial Packaging Association
Steel Shipping Container Institute
Sulfur Dioxide Mutual Assistance Response Team
Utility Solid Waste Activities Group
Vessel Operators Hazardous Materials Association