[Federal Register Volume 79, Number 154 (Monday, August 11, 2014)]
[Proposed Rules]
[Pages 46748-46758]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18741]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Parts 171 and 173

[Docket No. PHMSA-2011-0143 (HM-253)]
RIN 2137-AE81


Hazardous Materials: Reverse Logistics (RRR)

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: PHMSA is proposing to revise the Hazardous Materials 
Regulations applicable to return shipments of certain hazardous 
materials by motor vehicle. PHMSA proposes a definition for ``reverse 
logistics'' for hazardous materials that are intended to be returned to 
or between a vendor, distributor, manufacturer, or other person for the 
purpose of returning for credit, recalling product, replacement, or 
similar reason (for instance, from a retail or wholesale outlet). PHSMA 
proposes to establish a new section in the regulations to provide an 
exception for materials that are transported in a manner that meets the 
definition of ``reverse logistics.'' In this exception, PHMSA proposes 
to clearly identify the

[[Page 46749]]

hazardous materials authorized, packaging, hazard communication, and 
training requirements applicable to reverse logistics shipments. In 
addition to providing a new reverse logistics exception, this 
rulemaking also proposes to expand an existing exception for reverse 
logistics shipments of used automobile batteries that are being shipped 
from a retail facility to a recycling center.

DATES: Comments must be received by October 10, 2014. To the extent 
possible, PHMSA will consider late-filed comments as a final rule is 
developed.

ADDRESSES: You may submit comments by identification of the docket 
number (PHMSA-2011-0143 (HM-253)) by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
     Fax: 1-202-493-2251.
     Mail: Docket Operations, U.S. Department of 
Transportation, West Building, Ground Floor, Room W12-140, Routing 
Symbol M-30, 1200 New Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: To Docket Operations, Room W12-140 on the 
ground floor of the West Building, 1200 New Jersey Avenue SE., 
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.
    Instructions: All submissions must include the agency name and 
docket number for this notice at the beginning of the comment. All 
comments received will be posted without change to the Federal Docket 
Management System (FDMS), including any personal information.
    Docket: For access to the dockets to read background documents or 
comments received, go to http://www.regulations.gov or DOT's Docket 
Operations Office (see ADDRESSES).

FOR FURTHER INFORMATION CONTACT: Steven Andrews, Standards and 
Rulemaking Division, Office Hazardous Materials Safety, Pipeline and 
Hazardous Materials Safety Administration, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE., Washington, DC 20590, at 
(202) 366-8553.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Executive Summary
II. Background
III. ANPRM
IV. Review of Proposed Amendments
V. Rulemaking Analyses and Notices
    A. Statutory/Legal Authority for this Rulemaking
    B. Executive Order 12866, 13563, and DOT Regulatory Policies and 
Procedures
    C. Executive Order 13132
    D. Executive Order 13175
    E. Regulatory Flexibility Act, Executive Order 13272, and DOT 
Procedures and Policies
    F. Paperwork Reduction Act
    G. Regulatory Identifier Number (RIN)
    H. Unfunded Mandates Reform Act
    I. Environmental Assessment
    J. Privacy Act
    K. International Trade Analysis
    L. National Technology Transfer and Advancement Act
VI. List of Subjects

I. Executive Summary

    This notice of proposed rulemaking (NPRM) proposes to create a new 
section in the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-
180) with provisions tailored to the unique characteristics of reverse 
logistics. By creating an exception from existing regulations for 
certain reverse logistics shipments, this NPRM offers opportunities for 
reduced compliance costs among hazmat shippers and carriers, without 
any decrease in safety. In addition, PHMSA is also handling a reverse 
logistics issue related to the transportation of used automobile 
batteries to recycling centers. This change to the HMR will reduce the 
burden on the regulated community when consolidating shipments of lead 
acid batteries for recycling.
    PHMSA published an ANPRM on July 5, 2012 (77 FR 39662), to request 
comments from the public on changes to the regulations that would 
simplify requirements and reduce the burden on retail outlets. In 
response to PHMSA efforts in the area of reverse logistics, petitions 
for rulemaking, and comments submitted to the ANPRM, PHMSA is proposing 
the following changes in this NPRM:
     Define the term ``reverse logistics'';
     Establish regulations for the shipment of hazardous 
material in the reverse logistics supply chain;
     Establish clear applicability to the training requirements 
associated with ``reverse logistics'' shipments;
     Provide authorized packaging for reverse logistics 
shipments;
     Establish segregation requirements for reverse logistics 
shipments; and
     Allow more flexibility for the transportation of lead acid 
batteries.
    There are no quantified costs associated with this proposed rule--
PHMSA estimates that the simplified requirements proposed in this NPRM 
will create a safer environment for consumer products to be returned to 
distribution centers. However, we do not expect any significant change 
in the current level of safety. Benefits have been estimated in the 
areas of training and shipment preparation. Due to limited data 
availability, the benefit estimates associated with this NPRM are based 
on certain key assumptions and are presented as ranges. Annual figures 
are presented rather than a time-series of future values since no major 
variations are expected from year to year.

                                          Benefits of the Proposed Rule
                                           [Reduced compliance costs]
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          Relevant HMR citation                       Category                    Amount of annual savings
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Sec.   173.157..........................  Training.......................  $4-8 million.
Sec.   173.157..........................  Shipment Preparation...........  0-1 million.
Sec.   173.159..........................  Transportation Costs--Battery    1-2 million.
                                           Recycling.
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    A complete copy of the regulatory evaluation for this rulemaking is 
available at http://www.regulations.gov under Docket No. PHMSA-2011-
0143.

II. Background

    Currently, the HMR do not provide any specific exceptions for 
shipments made in the reverse logistics supply chain. Therefore, a 
hazardous material that is shipped from a retail outlet back to a 
distribution facility is subject to the HMR in the same manner as the 
original shipment to the retail outlet. The retail outlet is fully 
subject to the shipper's responsibility requirements provided in Sec.  
173.22 of the HMR. Key shipper

[[Page 46750]]

responsibilities include classification, selecting a packaging, closing 
the packaging, communicating the hazard, and ensuring the employees are 
properly trained in the functions they perform. In conducting 
enforcement actions and outreach, we have learned that these 
requirements are often misunderstood or overlooked. In addition, PHMSA 
received two petitions requesting that we take action to provide 
reverse logistics requirements in a single section that is both clear 
and easily understood. PHMSA's observations and the petitions are 
described below:

PHMSA Observations

    During investigations conducted by PHMSA field operations staff, we 
identified several instances where damaged hazardous materials were 
being shipped from retail outlets back to distribution centers without 
proper packaging or segregation. In most instances, non-compliant 
shipments were due to a lack of understanding of the HMR and hazardous 
materials shipping requirements. Often, returned hazardous materials 
and packages are damaged or compromised. Very often, the employees at 
the retail outlets responsible for packing and shipping these materials 
have little or no hazardous materials training. This may result in 
inadequate packaging and hazard communication. Below we identify 
potential problems that can occur in the reverse logistics of hazardous 
materials:
     Lack of hazardous materials training by the employees at 
the retail outlet;
     Different packaging from the original packaging being used 
to ship the material;
     Lack of knowledge regarding the hazards of the material;
     Potential for hazardous materials to be subject to 
Environmental Protection Agency (EPA) waste manifest rules;
     Items that were once classified as consumer commodities 
that no longer meet that exception;
     Undeclared hazardous materials shipped within the stream 
of commerce;
     Properly-marked and labeled original packaging being 
improperly re-used to ship returned products that are either not 
hazardous materials or hazardous materials for which said packaging is 
not authorized; and
     Shipments that are not accompanied by appropriate 
hazardous communication, such as shipping papers, emergency response 
numbers, placards, labels, markings, and other requirements of the HMR.
    PHMSA believes that reverse logistics issues involving hazardous 
materials will continue to rise with the increased consumption of goods 
in a growing economy. We also believe that it would be beneficial to 
identify those areas where PHMSA and the regulated community can work 
together to facilitate the movement of hazardous materials in the 
reverse logistics supply chain. Based on stakeholder petitions, the 
regulated industry seems to agree that we can work together to improve 
the reverse logistics supply chain. Specifically, PHMSA has received 
two petitions that provide a potential path forward to address the 
issues that both industry and government face. These petitions are 
outlined as follows:

P-1528

    PHMSA received a petition from the Council on the Safe 
Transportation of Hazardous Articles Inc. (COSTHA) outlining issues 
related to the return shipment of hazardous materials. In its petition 
for rulemaking (P-1528), COSTHA proposed that the HMR include a 
definition for ``reverse logistics'' in Sec.  171.8 and add a new 
section, Sec.  173.157 to outline the general requirements and 
exceptions for hazardous materials shipped in the context of reverse 
logistics. Additionally, in its petition, COSTHA identified an 
unquantifiable exposure to risk presented through undeclared hazmat 
from retail outlets. This includes retail operations that unknowingly 
return articles containing hazardous materials to the product 
manufacturing that are potentially compromised. COSTHA has indicated 
that the majority of these hazardous materials are returned to the 
retail outlet by the customer. COSTHA also noted that equipment powered 
by internal combustion engines may be returned to retail outlets after 
being used and may contain residual fuel, posing a hazardous materials 
risk.

P-1561

    PHMSA received a petition (P-1561) from the Battery Council 
International (Battery Council) involving the reverse logistics of used 
lead acid automobile batteries. In its petition, the Battery Council 
requests that PHMSA allow the shipment of used batteries from multiple 
shippers on a single transport vehicle under the exception provided in 
Sec.  173.159(e). The Battery Council notes in their petition that 
currently the exception in Sec.  173.159(e) does not clearly allow for 
shipment of used batteries from multiple shippers for the purposes of 
recycling.

ANPRM

    On July 5, 2012 (77 FR 39662), PHMSA published an Advanced Notice 
of Proposed Rulemaking (ANPRM), to request comments on reverse 
logistics. Specifically, we requested comments on regulatory changes 
intended to reduce the burden on retail outlets that ship consumer 
products containing hazardous materials in the reverse logistics supply 
chain. We targeted questions in the ANPRM to evaluate reverse logistics 
shipments by highway, rail, and vessel. In response to the ANPRM, we 
received comments from the following individuals and organizations:

1. NUCON International, Inc.
2. Call 2 Recycle
3. Federal Express (FedEx)
4. Lisa M. Brosseau
5. United Parcel Service (UPS)
6. International Foodservice Distributors Association (IFDA)
7. RSR Corporation
8. American Trucking Associations (ATA)
9. VaporLok Products, LLC.
10. Council on Safe Transportation of Hazardous Articles (COSTHA)
11. PSC Environmental Services
12. Veolia ES Technical Solutions, L.L.C.
13. Healthcare Distribution Management Association (HDMA)
14. PharmaLink, Inc.
15. American Coatings Association, Inc. (ACA)
16. National Electrical Manufacturers Association (NEMA)
17. Hazardous and Medical Waste Program, Army Public Health Command
18. VaporLok Products, LLC.
19. Dangerous Goods Advisory Council (DGAC)
20. Minnesota Pollution Control Agency (MPCA)
21. Nickel City Ventures, Inc.
22. Battery Council International (BCI)
23. The Rechargeable Battery Association (PRBA)
24. The Food Marketing Institute (FMI)
25. MBSource, LLC
26. Association of Hazmat Shippers, Inc.
27. Retail Industry Leaders Association (RILA)
28. Labelmaster
29. Wal-Mart
30. National Association of Chain Drug Stores (NACDS)
    A large majority of commenters were supportive of PHMSA's efforts 
to provide an exception to current regulations. However, some 
commenters did not see a need for relief for hazardous materials in the 
reverse logistics supply chain. As noted in the

[[Page 46751]]

comments to the ANPRM, reverse logistics includes such commodities as 
perfumes, automotive parts, medical supplies, and batteries. Detailed 
responses to the comments are found below in the Review of Proposed 
Amendments section of this rulemaking.

III. Review of Proposed Amendments

    PHMSA's reverse logistics initiative is the result of efforts by 
the Federal government to clarify and streamline regulations and reduce 
regulatory burden where possible. The overall intent is to provide 
clear and concise regulatory requirements that maintain a high level of 
safety. In regard to reverse logistics, PHMSA has considered petitions 
for rulemaking submitted by the regulated community, input from our 
field staff, and comments submitted to the July 5, 2012 ANPRM. As a 
result, PHMSA is proposing to make the following changes in this NPRM:
     Define the term ``reverse logistics;''
     Establish a single section in the regulations for the 
shipment of hazardous material in the reverse logistics supply chain;
     Establish training requirements tailored to reverse 
logistics shipments;
     Define the authorized packaging for reverse logistics 
shipments;
     Establish segregation requirements for reverse logistics 
shipments; and
     Allow for more flexibility in the transportation of lead 
acid batteries.
Below we describe each proposal in detail and provide our rationale for 
the change.

A. Definition of ``Reverse Logistics'' and Applicable Hazard Classes

    In the ANPRM we asked how we should best define the term ``reverse 
logistics.'' In response, we received proposed definitions for reverse 
logistics from both COSTHA and Wal-Mart. We relied heavily on the input 
provided by the commenters to develop a proposed definition for the 
term. Specifically, we are proposing to add the definition to Sec.  
171.8 of the HMR. The proposed definition for reverse logistics is the 
process of moving goods from their final destination for the purpose of 
capturing value, recall, replacement, proper disposal, or similar 
reason. PHMSA notes that as proposed in this NPRM, individual consumers 
would not be considered hazmat employees under Sec.  171.8 of the HMR 
and thus would not be directly affected by the new requirements in this 
rulemaking. However, individual consumers should also be sure to check 
United States Postal Service (USPS) or other common carrier 
requirements before shipping hazardous materials.

B. Applicability and Hazard Classes

    In the ANPRM we asked for information on the hazard classes and 
quantities of hazardous materials that are shipped in the reverse 
logistics supply chain. Based on that information, we are proposing to 
limit the exceptions for reverse logistics to shipments made by 
highway. UPS notes in its comments that the consequences of aviation 
incidents are too great to allow these shipments by air. PHMSA agrees 
and is not allowing shipments under the reverse logistics section by 
air. Further, PHMSA is concerned that allowing shipments by rail or 
vessel will promote consolidation of multiple reverse logistics 
shipments. The intent of this exception is to provide a means of safely 
transporting a consumer product containing a hazardous material from a 
final destination, such as a retail outlet, to a disposal or 
repackaging location. It is not our intent for reverse logistics 
shipments to be consolidated and shipped overseas, for example.
    PHMSA also received several comments on what hazard classes should 
be included in a reverse logistics exception. UPS indicates that PHSMA 
should not include explosives such as Division 1.1, 1.2, and 1.3 that 
have specific defined packaging and handling instructions. In addition, 
UPS indicates that PHMSA should not include toxic gases (Class 2.3), 
dangerous when wet (Division 4.3), Oxidizers (5.1), Organic Peroxides 
(5.2), and Class 7 materials that require a Radioactive White-I, 
Yellow-II, or Yellow-III label. Wal-Mart indicates that waiving the 
fully-regulated hazmat requirements for reverse logistics on Classes 
2.1, 2.2, 3, 4.1, 5.1, 6.1, 7, 8 and 9 would significantly reduce the 
burden and expense incurred in the reverse logistics supply chain.
    After careful review of the comments in the ANPRM, PHMSA has 
decided to include consumer products in hazard classes 1.4 
(ammunition), 2.1, 2.2, 3, 4.1, 5.1, 5.2, 6.1, 6.2, 8 and 9 in the 
reverse logistics exception. PHMSA believes that limited quantities of 
hazardous materials in these hazard classes that are used in consumer 
products present a risk that is easily managed by the proposed reverse 
logistics exception. In addition, PHSMA believes, based on comments and 
petitions, that these hazard classes cover the vast majority of 
hazardous materials in the reverse logistics supply chain and will 
effectively reduce an unnecessary burden on retail outlets.

C. Training Requirements

    In the ANPRM we asked to what extent should retail employees who 
package hazardous materials for shipments back to the distribution 
centers be subject to the requirements in 49 CFR Part 172, Subpart H. 
PHMSA also asked if retail employees are currently being trained for 
the shipment of hazardous materials under 49 CFR Part 172, Subpart H. 
Most comments indicate that full training is not necessary given the 
low risk of the materials covered. UPS supported employees meeting the 
full training requirements but stated that if PHMSA does reduce the 
training requirements, function specific training of the employees 
should not be compromised. PHMSA believes the training requirements 
proposed in this rulemaking will satisfy UPS concerns.
    Currently under the HMR, any person who meets the definition of a 
hazardous material employee is subject to the training requirements in 
Sec.  172.700. PHMSA recognizes that in a retail setting, it is 
unlikely that employees are meeting the training requirements, as their 
primary function is not shipping hazardous materials. In comments to 
the ANPRM, FMI states that any training required under the reverse 
logistics exception should take into account the small quantities of 
hazardous materials and minimal danger to the public and safety. Wal-
Mart notes that requiring retail employees to meet the full training 
requirements in Sec.  172.700 requires tens of thousands of employees 
to be trained on how to package, mark, and label hazardous materials. 
The RILA notes that due to the seasonal sales nature of the retail 
industry, the retail industry can experience a very high-turnover in 
staff making it difficult to cost effectively train all retail staff in 
accordance with the HMR. In addition, Wal-Mart adds that only a small 
portion of items returned to retail outlets are classified as hazardous 
materials and vast majority of those items present little to no safety 
risk. Wal-Mart also adds that retail employees should be exempt from 
being trained in the special permit functions of a retail item.
    UPS sees no reason to provide exceptions from training for 
employees in retail establishments that routinely stock and sell 
inventory that is regulated as hazardous materials. However, UPS adds 
that if PHMSA determines to reduce the required scope of the applicable 
training regulations, it should take care not to waive function-
specific requirements that contribute to safe shipment preparation. UPS 
indicates that employees should have

[[Page 46752]]

the full capability to create safe shipments, while understanding the 
basic packaging requirements, hazard segregation, and hazard 
communication requirements.
    PHMSA agrees with most commenters and is not proposing to require 
retail employees shipping under the proposed reverse logistics section 
to be fully trained under 49 CFR Part 172, Subpart H. After considering 
the comments from industry, PHMSA is proposing a relaxed set of 
training requirements. This NPRM proposes that employees shipping 
hazardous materials under the reverse logistics section have a minimal 
amount of hazardous materials training. Key to this training is the 
employee's knowledge of the types of materials that are being returned 
to the distribution centers. Further, required training would be 
clearly specified in the reverse logistics exception.

D. Segregation Issues

    In the ANPRM we asked if hazardous materials are currently being 
properly segregated as required by Sec.  177.843 of the HMR when being 
shipped from retail outlets to distribution centers. Generally, 
commenters indicate that in many cases segregation is not necessary 
given the low risk associated with the materials covered. UPS noted 
that while there is no direct evidence that incidents involving 
segregation issues were necessarily associated with reverse logistics, 
the incidents resulting from the dangerous combination of incompatible 
materials underscore the need to segregate hazards in all 
transportation--including reverse logistics activity.
    In the comments to the ANPRM, ATA notes that the segregation tables 
could be revised to allow some hazard classes to be transported 
together. ATA adds, since reverse logistics would most likely encompass 
smaller quantities of hazardous materials or hazardous materials that 
are packed inside another product; the current segregation standards 
may not be necessary. COSTHA notes that in most cases the materials 
previously classified as ORM-D are in small quantities and the 
designation as ORM-D do not identify the hazard class. The Association 
of Hazmat Shippers indicates that segregation of Class 2 and Class 3 
materials is unnecessary under the reverse logistics exception.
    Wal-Mart adds that the most volatile classes should not be excepted 
from segregation requirements such as Classes and Divisions 1.1, 1.2, 
2.3, 4.2, 5.2, and 6 Inhalation hazards. However, Wal-Mart adds that 
most of these do not appear in the retail arena, and therefore, are not 
generally transported in a retail reverse logistics scenario.
    PHMSA agrees with most commenters and is proposing a section in the 
NPRM to allow the mixing of various hazard classes provided the 
packages are not leaking. If the packages are compromised, those 
products would need to be placed in a leak proof inner packaging for 
liquids or sift proof inner packaging for solids to prevent leakage if 
further damage were to occur. Further, for simplicity, we propose to 
include the reverse logistics segregation requirements in the reverse 
logistics exception section.

E. Packaging

    In the ANPRM we asked if PHMSA should define specification packages 
for materials shipped under reverse logistics. PHMSA received multiple 
comments on the types of packaging that should be required under the 
reverse logistics exception. In addition, through investigations, PHMSA 
discovered that currently many shipments of hazardous materials are 
improperly packaged in the reverse logistics supply chain.
    In its comments, UPS notes that shipments made under the reverse 
logistics exception may contain packages with unsecured closures that 
are subject to leakage. In addition, UPS expresses concern that the 
outer packaging used in the reverse logistics process may not be 
designed to contain spills from damaged retail items. UPS indicates 
that PHMSA should require packages that are used in the reverse 
logistics supply chain to incorporate an outer packaging and absorbent 
material capable of fully containing any leakage from the inner 
packagings. The Association of Hazmat Shippers adds that limited 
quantity and consumer commodity shipments might track the Canadian 
limited quantity example in TDG 1.17. Specifically, each package 
meeting the general packaging requirements, weighing no more than 30 
kg, meeting limited quantity inner packaging limits, and marked with 
ORM-D or the new limited quantity diamond, should be excepted from 
specification packaging requirements, any other markings, labels, 
placards, hazmat employee training, unintended release reporting, and 
security requirements when shipped by road, rail, or vessel when 
engaged in domestic transportation.
    Wal-Mart indicates that there is no need for specification 
packaging for consumer products in the reverse logistics supply chain 
based on the limited transportation risk they present. Rather, Wal-Mart 
recommends a common sense requirement that is simple to understand and 
execute. For instance, inner containers should be securely closed, 
protected against damage, and secured against movement within the outer 
package along with a compatible packing material. Outer packaging 
should be strong outer packaging of good integrity that clearly 
identifies the content.
    Wal-Mart also presents a scenario where a fully regulated cylinder 
of a non-flammable gas is returned to a retail outlet. In these cases, 
a retail associate cannot determine whether a container is empty, 
making it impossible for the associate to determine if the cylinder 
still meets the definition for class 2.2 non-flammable compressed gas. 
Wal-Mart suggests allowing the shipment of these cylinders as hazmat 
even if they may not meet the definition of a Class 2 non-flammable 
gas.
    Another commenter, RILA suggests that any sturdy, six-sided 
container will adequately protect the consumer products in the reverse 
logistics supply chain. Further, RLA suggests the use of orientation 
arrows and securement.
    After carefully weighing the comments from the ANPRM, PHMSA is 
proposing a set of packaging standards under the proposed reverse 
logistics exception that will ensure consistent and safe packaging 
requirements for these low hazard items. This includes requiring the 
use of the original package or a package of equivalent strength or 
integrity. It also requires that inner packagings be leakproof for 
liquids and siftproof for solids. Further, for liquids, the outer 
packaging must contain enough absorbent material to contain a spill 
from the inner packagings. The exception will also provide that 
packages be secured against shifting through the use of cages, carts, 
and bins.

F. Battery Recycling

    This NPRM also addresses an existing exception concerning the 
reverse logistics shipment of lead acid batteries. As noted in the 
ANPRM and in the Background section above, PHMSA received a petition 
from BCI to modify the exception in Sec.  173.159(e) to allow for the 
pickup of batteries from multiple retail entities for the purposes of 
recycling. Currently, the HMR include a single shipper provision which 
prohibits the pickup of batteries from multiple locations.
    PHMSA received several comments in support of modifying the battery 
exception in Sec.  173.159(e) to allow for pickup of used automobile 
batteries from multiple shipper locations. However, RSR Corporation 
urges PHMSA to keep the single shipper

[[Page 46753]]

provision in intact. RSR Corporation indicates that the removal of the 
provision would lead to an increase in incidents involving the 
transportation of used lead acid batteries.
    PHMSA does not believe that allowing a battery recycler to pick up 
batteries from multiple shipping locations will lead to an increase in 
incidents involving the transportation of used automobile batteries. 
PHMSA believes that the proposed requirements in Sec.  173.159(e) that 
batteries shipped under this section must be blocked, braced, or 
otherwise secured to prevent contact with or damage to batteries will 
prevent an increase in incidents. In addition, reducing the regulatory 
burden on lead acid battery recyclers is likely to encourage an even 
greater rate of recycling among lead acid battery recyclers. Also, as 
noted by BCI, allowing the collection of lead acid batteries from 
multiple locations will result in more batteries on a single truck and 
fewer miles traveled to accomplish battery collection activities. This 
will lead to a reduction in the number of highway miles traveled, thus 
reducing the risk of accidents on the highway. PHMSA does not 
anticipate any negative impacts on safety. Therefore, in this NPRM 
PHMSA is proposing to revise Sec.  173.159(e)(4) to allow for the pick-
up of used automotive batteries from multiple retail locations for the 
purposes of recycling as long as the pallets are built so they will not 
cause damage to another pallet during transportation. In addition, 
PHMSA is requiring an incident report to be filed for any spill that 
occurs while operating under the expanded battery exception.

V. Rulemaking Analyses and Notices

A. Statutory/Legal Authority for This Rulemaking

    This NPRM is published under the authority of the Federal Hazardous 
Materials Transportation Law, 49 U.S.C. 5101 et seq. Section 5103(b) 
authorizes the Secretary to prescribe regulations for the safe 
transportation, including security, of hazardous material in 
intrastate, interstate, and foreign commerce. This NPRM provides for 
regulations for the shipment of consumer products in the reverse 
logistics supply chain.

B. Executive Order 13610, Executive Order 13563, Executive Order 12866, 
and DOT Regulatory Policies and Procedures

    This notice of proposed rulemaking is not considered a significant 
regulatory action under Executive Order 12866 and the Regulatory 
Policies and Procedures of the Department of Transportation (44 FR 
11034).\1\ A regulatory evaluation is available for review in the 
public docket for this rulemaking, and PHMSA seeks comments on the 
methodology, assumptions, and calculations contained within it.
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    \1\ See http://www.whitehouse.gov/omb/inforeg_riaguide/.
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    Executive Order 13563 is supplemental to and reaffirms the 
principles, structures, and definitions governing regulatory review 
that were established in Executive Order 12866 Regulatory Planning and 
Review of September 30, 1993. Executive Order 13563, issued January 18, 
2011, notes that our nation's current regulatory system must not only 
protect public health, welfare, safety, and our environment but also 
promote economic growth, innovation, competitiveness, and job 
creation.\2\ Further, this executive order urges government agencies to 
consider regulatory approaches that reduce burdens and maintain 
flexibility and freedom of choice for the public. In addition, federal 
agencies were asked to periodically review existing significant 
regulations, retrospectively analyze rules that may be outmoded, 
ineffective, insufficient, or excessively burdensome, and modify, 
streamline, expand, or repeal regulatory requirements in accordance 
with what has been learned.
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    \2\ See http://www.whitehouse.gov/the-press-office/2011/01/18/improving-regulation-and-regulatory-review-executive-order.
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    Executive Order 13610, issued May 10, 2012, urges agencies to 
conduct retrospective analyses of existing rules to examine whether 
they remain justified and whether they should be modified or 
streamlined in light of changed circumstances, including the rise of 
new technologies.\3\
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    \3\ See http://www.gpo.gov/fdsys/pkg/FR-2012-05-14/pdf/2012-11798.pdf.
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    By building off of each other, these three Executive Orders require 
agencies to regulate in the ``most cost-effective manner,'' to make a 
``reasoned determination that the benefits of the intended regulation 
justify its costs,'' and to develop regulations that ``impose the least 
burden on society.''
    PHMSA has evaluated the HMR with respect to reverse logistics and 
identified areas that could be modified to enhance the program and 
increase flexibility for the regulated community. In this NPRM, the 
proposed amendments to the HMR will not impose increased compliance 
costs on the regulated industry. By proposing to add a Sec.  173.157 to 
the HMR for items shipped in the reverse logistics supply chain, PHMSA 
will reduce regulatory burden and increase flexibility to industry, 
while maintaining an equivalent level of safety. There may be a number 
of retailers who are currently not in compliance with the HMR when 
shipping hazardous materials in the reverse logistics supply chain. It 
is not feasible for PHMSA to quantify the number of retail outlets who 
are in non-compliance. However, PHMSA believes through a simplified 
regulatory approach and outreach, the proposed standards will create 
regulatory framework that will assist these retail outlets in complying 
with the HMR.
    In addition to providing a new reverse logistics exception, this 
rulemaking also proposes to expand an existing exception for reverse 
logistics shipments of used automobile batteries that are being shipped 
from a retail facility to a recycling center. This change to the HMR 
will reduce the burden on the regulated community when consolidating 
shipments of lead acid batteries for recycling.
    A summary of the regulatory evaluation used to support the 
proposals presented in this NPRM are discussed below. A complete copy 
of the regulatory evaluation for this rulemaking is available at http://www.regulations.gov under Docket No. PHMSA-2011-0143.
Regulatory Evaluation
    For the regulatory evaluation of this NPRM, PHMSA assumes that this 
rulemaking would reduce shipping paper preparation costs for shipments 
involving relevant quantities of the affected commodity types, through 
the elimination of requirements to describe the hazardous materials in 
shipping papers. Similarly, the rule also eliminates the requirement 
for emergency response information for those shipments that currently 
require a shipping paper. Packages affected by the proposed rule would 
no longer require either material-specific markings and labels, or 
limited-quantity or ORM-D markings. Vehicles carrying packages affected 
by the proposed rule would no longer require placarding. The training 
requirements would also be reduced to a level commensurate with the 
risk posed by these consumer products. In addition, PHMSA is proposing 
to relax the requirements for recycling used lead

[[Page 46754]]

acid batteries. The change will reduce the transportation costs 
associated with recycling of lead acid batteries. A table identifying 
the benefits associated with this NPRM is provided below:

                                          Benefits of the Proposed Rule
                                           [Reduced compliance costs]
----------------------------------------------------------------------------------------------------------------
          Relevant HMR citation                       Category                    Amount of annual savings
----------------------------------------------------------------------------------------------------------------
Sec.   173.157..........................  Training.......................  $4-8 million.
Sec.   173.157..........................  Shipment Preparation...........  $0-1 million.
Sec.   173.159..........................  Transportation Costs--Battery    $1-2 million.
                                           Recycling.
----------------------------------------------------------------------------------------------------------------

    PHMSA does not expect any additional cost to the regulated 
community as a result of the proposed changes. PHMSA welcomes 
additional comments from the regulated community on any cost or 
benefits resulting from this proposed action.

C. Executive Order 13132

    This proposed rule has been analyzed in accordance with the 
principles and criteria contained in Executive Order 13132 
(``Federalism''), and the President's memorandum on ``Preemption'' 
published in the Federal Register on May 22, 2009 (74 FR 24693). This 
proposed rule will preempt State, local, and Indian tribe requirements 
but does not propose any regulation that has substantial direct effects 
on the States, the relationship between the national government and the 
States, or the distribution of power and responsibilities among the 
various levels of government. Therefore, the consultation and funding 
requirements of Executive Order 13132 do not apply.
    The Federal hazardous materials transportation law, 49 U.S.C. 5101-
5128, contains an express preemption provision (49 U.S.C. 5125 (b)) 
that preempts State, local, and Indian tribe requirements on the 
following subjects:
    (1) The designation, description, and classification of hazardous 
materials;
    (2) The packing, repacking, handling, labeling, marking, and 
placarding of hazardous materials;
    (3) The preparation, execution, and use of shipping documents 
related to hazardous materials and requirements related to the number, 
contents, and placement of those documents;
    (4) The written notification, recording, and reporting of the 
unintentional release in transportation of hazardous material; and
    (5) The design, manufacture, fabrication, marking, maintenance, 
recondition, repair, or testing of a packaging or container 
represented, marked, certified, or sold as qualified for use in 
transporting hazardous material.
    This proposed rule addresses all the covered subject areas above. 
If adopted as final, this rule will preempt any State, local, or Indian 
tribe requirements concerning these subjects unless the non-Federal 
requirements are ``substantively the same'' as the Federal 
requirements. Furthermore, this proposed rule is necessary to update, 
clarify, and provide relief from regulatory requirements.
    Federal hazardous materials transportation law provides at Sec.  
5125(b)(2) that, if DOT issues a regulation concerning any of the 
covered subjects, DOT must determine and publish in the Federal 
Register the effective date of Federal preemption. The effective date 
may not be earlier than the 90th day following the date of issuance of 
the final rule and not later than two years after the date of issuance. 
PHMSA has determined that the effective date of Federal preemption for 
these requirements will be one year from the date of publication of a 
final rule in the Federal Register.

D. Executive Order 13175

    This NPRM has been analyzed in accordance with the principles and 
criteria contained in Executive Order 13175 (``Consultation and 
Coordination with Indian Tribal Governments''). Because this NPRM does 
not significantly or uniquely affect the communities of the Indian 
tribal governments and does not impose substantial direct compliance 
costs, the funding and consultation requirements of Executive Order 
13175 do not apply.

E. Regulatory Flexibility Act, Executive Order 13272, and DOT 
Procedures and Policies

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires an 
agency to review regulations to assess their impact on small entities 
unless the agency determines that a rule is not expected to have a 
significant impact on a substantial number of small entities. The 
primary costs to small entities include ensuring that damaged consumer 
commodities are shipped properly under Sec.  173.157 and ensuring that 
its employees have access to the minimal training requirements as 
required under this section.
    PHMSA expects impacts of this rule will be quite limited for many 
small entities. The estimated benefits and costs figures discussed 
below should be viewed as upper bounds, both of which will be reduced 
by the extent of current practice.
    Retail, trucking, and other industries potentially affected by the 
proposed rule all have substantial numbers of small entities. The 
impacts of the proposed rule are expected to be favorable because of 
the significant new flexibility being proposed for the preparation and 
transport of certain hazardous materials in reverse logistics. However, 
PHMSA does not expect that the impacts will be significant. A typical 
small entity would save roughly $60 per affected new employee on 
training costs, and $0.17 to $2 per affected package in shipment 
preparation costs. PHMSA invites comments on these estimates.
    Based upon the above estimates and assumptions, PHMSA certifies 
that the proposals in this NPRM will not have a significant economic 
impact on a substantial number of small entities. Further information 
on the estimates and assumptions used to evaluate the potential impacts 
to small entities is available in the Regulatory Impact Assessment that 
has been placed in the public docket for this rulemaking.
    This notice has been developed in accordance with Executive Order 
13272 (``Proper Consideration of Small Entities in Agency Rulemaking'') 
and DOT's procedures and policies to promote compliance with the 
Regulatory Flexibility Act to ensure that potential impacts of draft 
rules on small entities are properly considered. More information can 
be found in the Initial Regulatory Flexibility Act (IFRA) that is 
included in the Regulatory Impact Analysis (RIA) document.

[[Page 46755]]

F. Paperwork Reduction Act

    PHMSA currently has an approved information collection under OMB 
Control Number 2137-0034, entitled ``Hazardous Materials Shipping 
Papers & Emergency Response Information,'' with an expiration date of 
April 30, 2015. This NPRM will result in a decrease in the annual 
burden and cost to OMB Control Number 2137-0034 due to the decrease in 
the number of shipments subject to the shipping paper requirements.
    Under the Paperwork Reduction Act of 1995, no person is required to 
respond to an information collection unless it has been approved by OMB 
and displays a valid OMB control number. Section 1320.8(d), title 5, 
Code of Federal Regulations requires that PHMSA provide interested 
members of the public and affected agencies an opportunity to comment 
on information and recordkeeping requests.
    This notice identifies revised information collection requests that 
PHMSA will submit to OMB for approval based on the requirements in this 
proposed rule. PHMSA has developed burden estimates to reflect changes 
in this proposed rule and estimates that the information collection and 
recordkeeping burdens will be revised as follows:
    OMB Control No. 2137-0034.
    Decrease in Annual Number of Respondents: 12,600.
    Decrease in Annual Responses: 630,000.
    Decrease in Annual Burden Hours: 210,000.
    Decrease in Annual Burden Costs: $5,250,000.
    PHMSA specifically requests comments on the information collection 
and recordkeeping burdens associated with developing, implementing, and 
maintaining these requirements for approval under this proposed rule.
    Requests for a copy of this information collection should be 
directed to Steven Andrews or T. Glenn Foster, Office of Hazardous 
Materials Standards (PHH-12), Pipeline and Hazardous Materials Safety 
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590-0001, 
Telephone (202) 366-8553.
    Address written comments to the Dockets Unit as identified in the 
ADDRESSES section of this rulemaking. We must receive comments 
regarding information collection burdens prior to the close of the 
comment period identified in the DATES section of this rulemaking. In 
addition, you may submit comments specifically related to the 
information collection burden to the PHMSA Desk Officer, Office of 
Management and Budget, at fax number (202) 395-6974.

G. Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN contained in the heading of 
this document can be used to cross-reference this action with the 
Unified Agenda.

H. Unfunded Mandates Reform Act of 1995

    This proposed rule does not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It does not result in costs of 
$141.3 million or more to either state, local or tribal governments, in 
the aggregate, or to the private sector, and is the least burdensome 
alternative that achieves the objective of the rule.

I. Draft Environmental Assessment Prepared in Compliance With the 
National Environmental Policy Act

    The National Environmental Policy Act, 42 U.S.C. 4321 et seq., 
(NEPA) requires that federal agencies consider the environmental 
effects of proposed actions in their decision making process. In 
accordance with the Council on Environmental Quality (CEQ) regulations 
(40 CFR Parts 1500-1508), which implement NEPA, an agency may prepare 
an environmental assessment (EA) when it does not anticipate that the 
proposed action will have significant environmental effects. An EA must 
provide sufficient evidence and analysis for determining whether to 
prepare an environmental impact statement or a finding of no 
significant impact and include (1) the need for the proposed action (2) 
alternatives to the proposed action (3) environmental impacts of the 
proposed action and alternatives and (4) a list of the agencies and 
persons consulted during the consideration process. 40 CFR 1508.9(b).
1. Purpose and Need
    The purpose of this rulemaking is to provide an exception in the 
HMR for the shipment of low hazard items in the reverse logistics 
supply chain. Currently, shipment of hazardous material shipped from 
retail outlets to distribution centers are considered fully regulated. 
PHMSA is proposing to revise the HMR to provide requirements that are 
more logical in a consumer/retail environment. Additionally, PHMSA 
expects a reduction in the burden to industry when shipping these low 
hazard consumer products back to the distribution center. Further, 
PHMSA is proposing to provide more flexibility for lead acid battery 
recyclers that would promote recycling and allow carriers to 
consolidate shipments of batteries from multiple shippers on a single 
transport vehicle.
2. Alternatives
    The alternatives considered in this draft EA include:
    Alternative 1: Allowing proposed rule to allow low hazard consumer 
items to be returned under a new section of the HMR. This is the action 
that PHMSA proposes to select. This action would provide a mechanism 
for the regulated community to safely transport low hazard items back 
to distribution facilities in the reverse logistics supply chain. PHMSA 
believes incorporation of this section will simplify the return process 
and maintain an equivalent level of safety.
    Alternative 2: The ``no action'' alternative, meaning that the 
regulatory scheme will stay the same and the proposed rule would not be 
promulgated. This alternative would result in no change to the HMR, 
which requires full regulation for low hazard items shipped to 
distribution facilities via the reverse logistics supply chain. While 
this alternative would not impose any new cost or change any 
environmental impacts, it would not account for the compliance 
obstacles and regulatory concerns raised by retailers and shared by 
PHMSA.
3. Environmental Consequences
    When developing potential regulatory requirements, PHMSA evaluates 
those requirements to consider the environmental impact of each 
amendment. Specifically, PHMSA evaluates: The risk of release and 
resulting environmental impact; the risk to human safety, including any 
risk to first responders; longevity of the packaging; and if the 
proposed regulation would be carried out in a defined geographic area, 
the resources, especially any sensitive areas, and how they could be 
impacted by any proposed regulations.
    Of the regulatory changes in Alternative 1, none have negative 
environmental impacts. The relaxation of the battery recycling 
regulations in Sec.  173.159 may promote and simplify the recycling of 
used automobile batteries. In turn, this may lead to fewer shipments of 
such batteries on highways. Positive impacts of the NPRM include the 
reduction in the number of shipments by highway that will lead to

[[Page 46756]]

lower emissions through a reduction in fuel consumption. This change 
will also further increase the lead acid battery recycling rate thus 
reducing the number of these batteries that end up in landfills. This 
reduction in the likelihood of spills will reduced the likelihood that 
any hazardous materials are spilled into the environment. Overall, all 
of these impacts will have a net positive impact on the environment. 
PHMSA does not believe that these environmental impacts will be 
significant, but invites comment on this issue.
    Alternative 2, the no-action alternative, would not lead to any 
environmental costs or benefits.
4. Federal Agencies Consulted and Public Participation
    In an effort to ensure all appropriate federal stakeholders are 
provided a chance to provide input on potential rulemaking actions, 
PHMSA, as part of its rulemaking development, consults other federal 
agencies that a proposed rule could affect. In developing this 
rulemaking action, PHMSA consulted the Federal Motor Carrier Safety 
Administration (FMCSA), Federal Railroad Administration (FRA), 
Environmental Protection Agency (EPA), Occupational Safety and Health 
Administration (OSHA), and the Consumer Products Safety Commission 
(CPSC).
    PHMSA invites other interested parties and members of the public to 
provide input on this draft EA. PHMSA welcomes any data or information 
related to environmental impacts that may result from the proposed 
action discussed in this notice. PHMSA will consider any comments it 
receives in preparing the final EA, which would accompany any final 
rule.

J. Privacy Act

    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit 
http://www.dot.gov.

K. International Trade Analysis

    Under E.O. 13609, agencies must consider whether the impacts 
associated with significant variations between domestic and 
international regulatory approaches are unnecessary or may impair the 
ability of American business to export and compete internationally. In 
meeting shared challenges involving health, safety, labor, security, 
environmental, and other issues, international regulatory cooperation 
can identify approaches that are at least as protective as those that 
are or will be adopted in the absence of such cooperation. 
International regulatory cooperation can also reduce, eliminate, or 
prevent unnecessary differences in regulatory requirements.
    Similarly, the Trade Agreements Act of 1979 (Pub. L. 96-39), as 
amended by the Uruguay Round Agreements Act (Pub. L. 103-465), 
prohibits Federal agencies from establishing any standards or engaging 
in related activities that create unnecessary obstacles to the foreign 
commerce of the United States. For purposes of these requirements, 
Federal agencies may participate in the establishment of international 
standards, so long as the standards have a legitimate domestic 
objective, such as providing for safety, and do not operate to exclude 
imports that meet this objective. The statute also requires 
consideration of international standards and, where appropriate, that 
they be the basis for U.S. standards.
    PHMSA participates in the establishment of international standards 
in order to protect the safety of the American public. We have assessed 
the effects of the proposed rule, and found that this domestic 
exception for the return of consumer products through the reverse 
logistics supply chain will not cause unnecessary obstacles to foreign 
trade. Accordingly, this rulemaking is consistent with Executive Order 
13609 and PHMSA's obligations under the Trade Agreement Act, as 
amended.

L. National Technology Transfer and Advancement Act

    The National Technology Transfer and Advancement Act of 1995 (15 
U.S.C. 272 note) directs federal agencies to use voluntary consensus 
standards in their regulatory activities unless doing so would be 
inconsistent with applicable law or otherwise impractical. Voluntary 
consensus standards are technical standards (e.g. specification of 
materials, test methods, or performance requirements) that are 
developed or adopted by voluntary consensus standard bodies.
    This proposed rulemaking does not involve voluntary consensus 
standards.

List of Subjects

49 CFR Part 171

    Administrative practice and procedure, Hazardous materials 
transportation, Penalties, Reporting and record keeping requirements.

49 CFR Part 173

    Hazardous materials transportation, Packaging and containers, 
Radioactive materials, Reporting and recordkeeping requirements, 
Uranium.

    In consideration of the foregoing, 49 CFR chapter I is proposed to 
be amended as follows:

PART 171--HAZARDOUS MATERIALS PROGRAM PROCEDURES

0
1. The authority citation for part 171 continues to read as follows:

    Authority:  49 U.S.C. 5101-5128, 44701; Pub. L. 101-410 section 
4 (28 U.S.C. 2461 note); Pub. L. 104-134, section 31001; 49 CFR 1.81 
and 1.97.
0
2. In Sec.  171.8, in alphabetical order add the definition for 
``Reverse logistics'' to read as follows:


Sec.  171.8  Definitions and abbreviations.

* * * * *
    Reverse logistics is the process of moving goods from their final 
destination for the purpose of capturing value, recall, replacement, 
proper disposal, or similar reason.
* * * * *

PART 173--SHIPPERS--GENERAL REQUIREMENTS FOR SHIPMENTS AND 
PACKAGINGS

0
3. The authority citation for part 173 continues to read as follows:

    Authority:  49 U.S.C. 5101-5128, 44701; 49 CFR 1.81, 1.96 and 
1.97.
0
4. Add Sec.  173.157 to read as follows:


Sec.  173.157  Reverse Logistics--General requirements and exceptions 
for reverse logistics.

    General. Reverse logistics is defined in Sec.  171.8 of this 
subchapter. When transported by motor vehicle in conformance with this 
section, a hazardous material is not subject to any other requirements 
of this subchapter besides those set forth or referenced in this 
section.
    (a) Applicability. Hazardous materials authorized for 
transportation under this section are limited to the following 
materials within the quantity limitations specified.
    (1) Division 1.4S and 1.4G fireworks, flares and signals and 
ammunition;
    (2) A Class 3, 8, 9, Division 4.1, 5.1, 5.2, 6.1, 6.2 material 
contained in a packaging having a gross mass or capacity in each inner 
packaging not exceeding:
    (i) 0.5 kg or 0.5 L for a Packing Group I material;

[[Page 46757]]

    (ii) 1.0 kg or 1 L for a Packing Group II;
    (iii) 5kg or 5L for a Packing Group III, or ORM-D material;
    (iv) 30 L for a diluted mixture, not to exceed 2 percent 
concentration, of a Class 3, 8 or 9 material or a Division 6.1 
material;
    (3) A Division 2.1 or 2.2 material in a cylinder or aerosol 
container with a gross weight not over 30 kg. For the purposes of this 
section a cylinder or aerosol container may be assumed to meet the 
definition of a Division 2.1 or 2.2 materials, respectively, even if 
the exact pressure is unknown.
    (4) A Division 4.3 material in Packing Group II or Ill contained in 
a packaging having a gross capacity not exceeding 1 L.
    (b) Packaging.
    (1) Packagings must be leak tight for liquids and gases, sift proof 
for solids, and be securely closed, secured against shifting, and 
protected against damage. Inner packagings must be secured against 
movement within the outer package and protected against damage under 
conditions normally incident to transportation. For liquids, the inner 
packaging must be leak proof, and the outer packaging must contain 
sufficient absorbent material to absorb the entire contents of the 
inner packaging. For solids, inner packaging must be sift proof.
    (2) Each material must be packaged in the manufacturer's original 
packaging if available, or a packaging of equal or greater strength and 
integrity.
    (3) Outer packagings are not required for receptacles (e.g., cans 
and bottles) that are secured against shifting in cages, carts, bins, 
boxes or compartments. However, any compromised receptacle must be 
placed in an inner packaging or outer packing that will prevent 
spillage in transportation.
    (4) The fuel tank and fuel lines of equipment powered by an 
internal combustion engine must have the flammable liquid fuel drained 
to the greatest degree possible, shut-off valves, if present, must be 
in the closed position, and all fuel tank caps or closures must be 
securely in place.
    (5) Equipment powered by an internal combustion engine using 
flammable gas fuel, or other devices using flammable gas fuel (such as 
camping equipment, lighting devices, and torch kits) must have the 
flammable gas source disconnected and all shut-off devices in the 
closed position.
    (6) Equipment powered by electric storage batteries must have the 
batteries properly installed within the equipment and protected against 
short circuit. The activation switch on the equipment must be protected 
to prevent inadvertent activation. If the equipment is damaged to the 
extent that the battery or switches may not be protected, the battery 
should be removed and packaged separately in a manner that will protect 
the terminals from short circuit. Batteries should also indicate the 
proper orientation during transportation and storage.
    (7) Aerosols must be packed to prevent inadvertent discharge of the 
contents from the aerosol packaging during transport. Each aerosol 
container must be secured with a cap to protect the valve stem.
    (8) Cylinders or other pressure vessels containing a Division 2.1 
or 2.2 materials such as DOT-39 cylinders and cylinders containing 
limited quantities of compressed gases must conform to the packaging, 
qualification, maintenance, and use requirements of this subchapter.
    (9) Materials authorized for transport according to a special 
permit as defined in Sec.  171.8 of this subchapter:
    (i) Each outer packaging that has not been opened and is in the 
original undamaged condition with the closure secure, shall be offered 
for transportation and transported in the original packaging as 
authorized by the special permit;
    (ii) When the inner receptacles have been removed from the outer 
packaging of a combination packaging and remain undamaged with closure 
secure they must be packed either in the original packaging authorized 
by the special permit if available and undamaged or packed in a 
suitably strong outer packaging with suitable cushioning material and 
securely closed.
    (c) Hazard communication.
    (1) The outer packaging, other than a cylinder shipped as a single 
packaging, must be marked with a common name or proper shipping name to 
identify the hazardous material it contains.
    (2) A DOT specification cylinder (except DOT specification 39) must 
be marked and labeled as prescribed in this subchapter. Each DOT 
Specification 39 cylinder must display the following markings:
    (i) DOT-39.
    (ii) NRC.
    (iii) The service pressure.
    (iv) The test pressure.
    (v) The registration number (M****) of the manufacturer.
    (vi) The lot number.
    (vii) The date of manufacture if the lot number does not establish 
the date of manufacture.
    (viii) With one of the following statements:
    (A) For cylinders manufactured prior to October 1, 1996: ``Federal 
law forbids transportation if refilled-penalty up to $25,000 fine and 5 
years imprisonment (49 U.S.C. 1809)'' or ``Federal law forbids 
transportation if refilled-penalty up to $500,000 fine and 5 years 
imprisonment (49 U.S.C. 5124).''
    (B) For cylinders manufactured on or after October 1, 1996: 
``Federal law forbids transportation if refilled-penalty up to $500,000 
fine and 5 years imprisonment (49 U.S.C. 5124).''
    (d) Training. Each person who offers or transports a hazardous 
material under the requirements of this section must be familiar with 
the requirements of this section. Employees preparing reverse logistics 
shipments, as defined in Sec.  171.8 of this subchapter and authorized 
by this section, are not subject to the Subpart H of Part 172--Training 
requirements of this subchapter provided:
    (1) The employer has identified the hazardous materials subject to 
the provisions of this section, has verified compliance with the 
appropriate conditions and limitations, and has provided training and 
supervision to persons preparing or offering these shipments for 
transportation, or transporting shipments in reverse logistics to make 
the provisions of this section effective.
    (2) The employee has received appropriate training applicable to 
the material to be offered in transport in accordance with the 
provisions of this section. The training must enable the employee to 
recognize the hazardous materials, identify the hazards associated with 
the applicable material and prepare the shipment as provided by this 
section.
    (3) The employer must maintain a record of those employees 
receiving the training required by this section.
    (4) The operator of a motor vehicle that contains a reverse 
logistics material must be informed of the presence of the hazardous 
material and must be informed of the requirements of this section.
    (e) Exceptions.
    (1) A reverse logistics material may be transported by motor 
vehicle under the provisions of this section with other hazardous 
materials without affecting its eligibility for exceptions provided by 
this section.
    (2) Hazardous materials that may react dangerously with one another 
may not be transported in the same outer packaging.
    (3) Different hazard classes of materials in reverse logistics may 
be transported in the same cargo transport unit provided that they are 
adequately

[[Page 46758]]

separated to prevent commingling of materials that may result in a 
dangerous reaction in the event of an accidental release during 
transport.
    (4) Shipments made under this section are subject to the incident 
reporting requirements in Sec.  171.15.
    (5) Shipments prepared, offered for transportation, or transported 
according to this section are not subject to any other requirements of 
this subchapter.
0
5. In Sec.  173.159, revise paragraphs (e)(3) and (e)(4) paragraphs 
(e)(5) and (e)(6)are added to read as follows:


Sec.  173.159  Batteries, wet.

* * * * *
    (e) * * *
    (3) Any other material loaded in the same vehicle must be blocked, 
braced, or otherwise secured to prevent contact with or damage to the 
batteries. In addition, pallets used should be built as to not cause 
damage to another pallet in transportation.
    (4) A carrier may accept shipments of lead acid batteries from 
multiple locations for the purpose of consolidating shipments of lead 
acid batteries for recycling.
    (5) Class 8 lead acid batteries are the only hazardous material 
authorized on the transport vehicle under this section.
    (6) Shipments made under this section are subject to the incident 
reporting requirements in Sec.  171.15.
* * * * *

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.97(b).
 Magdy El-Sibaie,
Associate Administrator for Hazardous Materials Safety, Pipeline and 
Hazardous Materials Safety Administration.
[FR Doc. 2014-18741 Filed 8-8-14; 8:45 am]
BILLING CODE 4910-60-P