Federal Register, Volume 81 Issue 62 (Thursday, March 31, 2016)

[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Rules and Regulations]
[Pages 18527-18541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07199]

[[Page 18527]]

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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: Final rule.

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SUMMARY: In this final rule, the Pipeline and Hazardous Materials
Safety Administration (PHMSA) is adopting regulatory amendments
applicable to the reverse logistics shipments of certain hazardous
materials by highway transportation. This final rule revises the
Hazardous Materials Regulations (HMR) to include a definition of
``reverse logistics'' and provides appropriate provisions for hazardous
materials within the scope of this definition. This final rule also
expands a previously existing exception for return shipments of used
automobile batteries transported between a retail facility and a
recycling center. The PHMSA incorporated recommendations from petitions
for rulemaking and public comment into this rulemaking.

DATES: Effective: March 31, 2016.

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

SUPPLEMENTARY INFORMATION:

Table of Contents of Supplementary Information

I. Executive Summary
II. Background
A. Advance Notice of Proposed Rulemaking
B. Notice of Proposed Rulemaking
III. Review of Amendments and Response to Comments
A. Definition of ``Reverse Logistics'' and Applicability and
Hazard Classes
B. Packaging
C. Hazard Communication
D. Training
E. Segregation
F. Incident Reporting
G. Battery Recycling
IV. Regulatory Review and Notices
A. Statutory Authority
B. Executive Order 12866, Executive Order 13563, Executive Order
13610, 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 of 1995
I. Environmental Assessment
J. Privacy Act
K. Executive Order 13609 and International Trade Analysis
L. National Technology Transfer and Advancement Act List of
Subjects

I. Executive Summary

This final rule creates a new section (Sec. 173.157) in the
Hazardous Materials Regulations (HMR; 49 CFR parts 171-180) with
provisions specific to reverse logistics (e.g., returning shipments
from retail stores to a product's manufacturer, supplier, or
distribution facility) by highway transportation. The PHMSA believes
that the requirements adopted in this final rule will benefit retail
operators by establishing a regulatory framework targeted to a distinct
and limited segment of the supply chain that is associated with retail
stores. In this rule, the PHMSA codifies a definition for the ``reverse
logistics'' of hazardous materials as ``the process of offering for
transport or transporting by motor vehicle goods from a retail store
for return to its manufacturer, supplier, or distribution facility for
the purpose of capturing value (e.g., to receive manufacturer's
credit), recall, replacement, recycling, or similar reason.'' The PHMSA
is also addressing the reverse logistics transportation of used
automobile batteries to recycling centers. This change to the HMR will
address the concerns of stakeholders pertaining to the consolidation of
shipments of lead-acid batteries for recycling.

II. Background

As noted in its petition (P-1528), the Council on Safe
Transportation of Hazardous Articles, Inc. (COSTHA) and the PHMSA
entered into a partnership agreement in November 2006 for the purpose
of enhancing hazardous materials transportation safety involving the
return of consumer products to a manufacturer or distributor (referred
to in the petition as ``reverse logistics''). In an effort to reduce
undeclared hazardous materials shipments and raise awareness of
applicable regulations, COSTHA worked with the PHMSA to develop and
disseminate outreach materials, training programs, and other resources.
Consequently, COSTHA engaged stakeholders in meetings, forums, and
other communications to address the challenges posed by reverse
logistics shipments. A product of this engagement was the development
of COSTHA's 2008 petition for rulemaking. In its petition, COSTHA notes
that its organization ``identified an unquantifiable exposure to risk
presented through undeclared hazmat, specifically from retail
operations that unknowingly return articles containing hazmat to the
product manufacturer or a distributor.'' \1\
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\1\ P-1528, Page 2. http://www.regulations.gov/#!docketDetail;D=PHMSA-2008-0249.
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This petition also notes that many reverse logistics shipments of
hazardous materials were eligible (at the time the petition was
drafted) to be classified as Other Regulated Material (ORM-D) and could
be shipped under the ``Consumer Commodity'' proper shipping name.\2\
COSTHA also notes that equipment powered by internal combustion engines
may be returned to retail outlets after being used and may contain
residual fuel, therefore posing a risk in transportation. As a result,
such articles transported in forward logistics may not be initially
regulated as hazardous materials, but once used, the same article
transported in reverse logistics may be regulated as a hazardous
material.
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\2\ Consumer commodity means a material that is packaged and
distributed in a form intended or suitable for sale through retail
sales agencies or instrumentalities for consumption by individuals
for purposes of personal care or household use. This term also
includes drugs and medicines. 49 CFR 171.8.
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COSTHA's petition requested that the PHMSA include a definition in
Sec. 171.8 for ``reverse logistics'' and add a new Sec. 173.157 to
outline the general requirements and exceptions for hazardous materials
shipped in reverse logistics. In addition, the petitioner also
requested regulatory relief from certain training, packaging,
segregation, hazard communication, and other baseline provisions in the
HMR.
After the acceptance of this petition, the PHMSA published a final
rule: Hazardous Materials: Harmonization With the United Nations
Recommendations, the International Maritime Dangerous Goods Code, and
the International Civil Aviation Organization Technical Instructions
for the Safe Transport of Dangerous Goods by Air; PHMSA-2009-0126 (HM-
215K) [76 FR 3308].\3\ HM-215K implemented a system for the shipment of
limited quantities of hazardous materials consistent with the
requirements in the United Nations Model Regulations.\4\ By

[[Page 18528]]

harmonizing the HMR with international standards, a common,
internationally recognized mark was adopted.\5\ In making this change,
HM-215K (as appealed) phased out the ORM-D classification and the use
of packagings marked ``Consumer commodity, ORM-D'' in surface
transportation after December 31, 2020. The majority of shipments in
reverse logistics are within the scope and quantity limits of the HMR's
limited quantity provisions.
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\3\ 76 FR 3308.
\4\ Limited quantity, when specified as such in a section
applicable to a particular material, means the maximum amount of a
hazardous material for which there is a specific labeling or
packaging exception. 49 CFR 171.8.
\5\ See 49 CFR 172.315(a)(1).
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The PHMSA also received a petition for rulemaking (P-1561) from the
Battery Council International (BCI) addressing return shipments of used
lead-acid batteries. In its petition, the BCI requested that the PHMSA
authorize the shipment of used batteries from multiple shippers on a
single transport vehicle under the exception provided in Sec.
173.159(e). The BCI noted in its petition that it is unclear whether
the current exception in Sec. 173.159(e) authorizes the shipment of
used batteries from multiple shippers for the purposes of recycling.
This rule advances government-wide efforts to clarify, streamline,
and allow for flexibility in regulations when possible. Accordingly,
this final rule is part of the DOT's Retrospective Regulatory Review
(RRR) designed to identify ways to improve the HMR. There are three (3)
Executive Orders that make up the RRR review process: Executive Order
13563 (``Improving Regulation and Regulatory Review''), Executive Order
12866 (``Regulatory Planning and Review''), and Executive Order 13610
(``Identifying and Reducing Regulatory Burden''). Executive Order 13563
specifically requires agencies to: (1) Involve the public in the
regulatory process; (2) promote simplification and harmonization
through interagency coordination; (3) identify and consider regulatory
approaches that reduce burden and maintain flexibility; (4) ensure the
objectivity of any scientific or technological information used to
support regulatory action; and (5) consider how to best promote
retrospective analysis to modify, streamline, expand, or repeal
existing rules that are outmoded, ineffective, insufficient, or
excessively burdensome. Executive Order 13563 supplements and reaffirms
the principles, structures, and definitions governing regulatory review
that were established in Executive Order 12866 issued on September 30,
1993. Furthermore, Executive Order 13610 urges agencies to conduct
retrospective analyses of existing rules to examine whether they remain
justified or whether they should be modified or streamlined in light of
changed circumstances, including the rise of new technologies. The
PHMSA's review of the reverse logistics process determined that current
regulations could better account for what is a distinct and limited
segment of the supply chain associated with the return shipment of
consumer items containing hazardous materials from retail store for
return to its manufacturer, supplier, or distribution facility.
Therefore, consistent with the DOT's RRR efforts, this final rule is
intended to clarify, streamline, and allow for flexibility in the
regulatory requirements with regards to reverse logistics.
As a result of investigative activities conducted by its field
operations staff, the PHMSA identified a need to consider regulatory
amendments to specifically address the unique issues encountered by
this distinct and limited segment of the supply chain. Some of the
unique problems that can occur during the reverse logistics of hazmat
are:
The lack of knowledge regarding the risks of transporting
certain products;
The lack of hazmat training by employees at a retail
store;
The difficulty in applying hazmat regulations to reverse
logistics shipments;
The different packaging(s) other than the original
packaging being used to ship the material;
The potential for hazmat to be subject to Environmental
Protection Agency (EPA) waste manifest rules;
The inclusion of items once classified as consumer
commodities that no longer meet the ``consumer commodity'' definition.
In order to reduce undeclared, misdeclared, or improperly packaged
hazmat from being offered and transported in commerce, we are amending
the HMR to better address the reverse logistics supply chain.
Specifically, we are seeking to ensure retail employers properly
identify hazardous materials in the reverse logistics chain and ensure
that their employees have clear instructions to safely offer such
shipments. Even when intended for ground transportation, the complex
transportation network in the U.S. means that these shipments could
inadvertently enter into air transportation--a mode of transportation
where clear hazard communications is essential. Clear and correct
hazard communication allows air carriers to manage the risk in their
system by either rejecting, or properly accepting, handling, and
segregating hazardous materials.
The PHMSA believes that the reverse logistics of hazmat will
continue to rise with the increased consumption of goods in a growing
economy. By adopting, in part, petitions P-1528 and P-1561, the PHMSA
is seeking to account for the distinct challenges associated with this
issue.

A. Advance Notice of Proposed Rulemaking

On July 5, 2012 [77 FR 39662], the PHMSA published an Advance
Notice of Proposed Rulemaking (ANPRM) to request comments on reverse
logistics. Specifically, we requested comments on regulatory changes
intended to address retail operations that ship consumer products
containing hazmat in the reverse logistics supply chain. We presented
targeted questions in the ANPRM in order to evaluate reverse logistics
shipments by highway, rail, and vessel, as these types of shipments are
not intended for transportation by air. The PHMSA used the data
collected by the ANPRM in its development of the NPRM.

B. Notice of Proposed Rulemaking

On August 11, 2014 [79 FR 46748], the PHMSA published a Notice of
Proposed Rulemaking (NPRM) to request comments on a proposed new
section of the regulations for reverse logistics shipments. In response
to the NPRM, the PHMSA received comments from the following entities:

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Advanced Auto Parts............................................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0056.
Airline Pilots Association (APA)................................................ http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0049.
Alaska Airlines................................................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0043.
American Coatings Association (ACA)............................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0060.
American Pyrotechnics Association............................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0070.
American Trucking Association (ATA)............................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0055.
Anonymous....................................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0050.

[[Page 18529]]

Anonymous....................................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0039.
Association of HAZMAT Shippers (AHS)............................................ http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0061.
Battery Council International (BCI)............................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0065.
Billy Puk....................................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0052.
C&S Wholesale Grocers........................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0068.
Council on the Safe Transportation of Hazardous Articles (COSTHA)............... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0064.
Crazy Cracker................................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0042.
Dangerous Goods Advisory Council (DGAC)......................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0063.
Federal Express (FedEx)......................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0053.
g2 Revolution................................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0044.
Giant Cement Holding, Inc....................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0073.
Graylin Presbury................................................................ http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0051.
Heritage Environmental Services................................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0059.
Inmar Inc....................................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0045.
Kellner's Fireworks Inc......................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0046.
National Association of Manufactures............................................ http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0071.
National Fireworks Association.................................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0047.
Orion Safety Products........................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0062.
Rechargeable Battery Association (PRBA)......................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0074.
Retail Industry Leaders Association (RILA)...................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0058.
RSR Corporation................................................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0066.
Siemens Healthcare.............................................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0072.
Sporting Arms and Ammunition Manufacturers' Institute (SAAMI)................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0069.
Stephen Charles................................................................. http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0040.
United Parcel Service (UPS)..................................................... http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0057.
Wal-Mart........................................................................ http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-
0143-0048.
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III. Review of Amendments and Response to Comments

With regard to providing clarity and concise hazmat transport
regulations for reverse logistics shipments, the PHMSA considered
petitions for rulemaking submitted by the regulated community, input
from the PHMSA's enforcement division, and comments submitted to both
the July 5, 2012 ANPRM and the August 11, 2014 NPRM. The PHMSA received
34 comments to the ANPRM and 33 comments to the NPRM. As a result, in
this final rule, the PHMSA is amending the HMR to:
Define the term ``reverse logistics'';
Establish a new section in the HMR specifically for the
reverse logistics shipment of hazmat;
Ensure employees have knowledge and familiarity in
preparing hazardous materials shipments subject to the reverse
logistics shipments;
Define the authorized packaging for reverse logistics
shipments;
Allow more flexibility in the transportation of lead-acid
batteries;
Authorize certain materials to be offered in accordance
with the new reverse logistics requirements when transported by private
carrier.

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

Definition of ``Reverse Logistics''
In the NPRM, we proposed to define ``reverse logistics'' as ``the
process of moving goods from their final destination for the purpose of
capturing value, recall, replacement, proper disposal, or similar
reason.'' We received several comments pertaining to this definition
from the regulated community.
The American Coatings Association (ACA) supports a definition for
``reverse logistics'' provided the definition is broad enough to
capture recycling, business-to-business transactions, and return
scenarios that exist in the marketplace. While the PHMSA appreciates
ACA's comments, this rule is more focused on the specific relationship
between retail stores and distribution facilities, and not business-to-
business operations. However, the PHMSA agrees with ACA's comment
pertaining to recycling and is adding the term ``recycling'' to the
definition for ``reverse logistics'' in Sec. 171.8 of the HMR. In
addition, the Retail Industry Leaders Association (RILA) suggests
adding ``such as a retail store'' to the definition of ``reverse
logistics'' to provide an example of a final destination. The PHMSA
agrees with the intent of this comment and, in the final rule, has
amended the definition of ``reverse logistics'' by removing the term
``final destination'' to clarify that, for the purposes of this
rulemaking, reverse logistics applies solely to shipments of hazardous
materials returned to their manufacturer, supplier, or distribution
facility.
The American Trucking Association (ATA) and COSTHA are concerned
that the proposed definition for ``reverse logistics'' did not include
carriers. COSTHA asserts that the term ``moving'' is not appropriate
and instead suggests adding the language ``offering for transport or
transporting'' to include carriers in the reverse logistics definition.
The PHMSA agrees and is addressing COSTHA's comment by modifying the
definition of ``reverse logistics'' to include both the process of
offering hazmat for transport and the transport of hazmat.
The Dangerous Goods Advisory Council (DGAC) suggests limiting the
carrier scenarios proposed in Sec. 173.157(b)(1)(ii) and (iii) of the
NPRM to only private or dedicated carriers. The DGAC is aware that
contract and common carriers have significant concerns with aspects of
this rulemaking, whereas private or dedicated carriers are supportive.
It is DGAC's view that while exceptions are necessary, the shipper, as
appropriate, should retain responsibility for the transportation of
hazmat shipments and the responsibility without control should not be
placed on contract or common carriers. The PHMSA agrees and is adopting
revisions in this final rule so that reverse logistics shipments by
non-private carriers are consistent with the HMR's marking requirements
for limited quantity shipments. It should be noted that training
requirements are an exception to this alignment. This issue is
discussed later in this final rule (see heading ``Training.'') We also
note that certain types of hazmat proposed in the NPRM, such as retail
fireworks, would not be appropriate for shipment as reverse logistics
by non-private carriers. Therefore, we are limiting those hazard
classes to private carriers only. For the purposes of this final rule,
a non-private

[[Page 18530]]

carrier is anyone who does not own or operate its own fleet of
vehicles.
The ACA asked for clarification of ``capturing value'' in the
definition for ``reverse logistics.'' The PHMSA intended ``capturing
value'' to be a way for retailers to return consumer products
containing hazmat to their manufacturer, supplier, or distribution
facility to receive manufacturer's credit, be resold, or be donated,
etc. This final rule seeks to clarify this term within the definition.
Several commenters, including Mr. Billy Puk and the ACA, raise
concerns about the use of the term ``proper disposal'' in the
definition of ``reverse logistics.'' These commenters express concern
about potential overlaps with EPA rules for the Federal regulation of
hazardous waste. In order to avoid confusion, the PHMSA is removing the
term ``proper disposal'' and adding language to the general section in
Sec. 173.157 that specifically excludes hazardous waste as defined in
Sec. 171.8 as a material eligible for shipment under the reverse
logistics section. By eliminating the term ``proper disposal'' from the
definition, the PHMSA is avoiding any potential inconsistencies with
EPA hazardous waste regulations. Furthermore, the PHMSA notes there is
nothing in this final rule that supersedes EPA's Resource Conservation
and Recovery Act (RCRA) regulations related to when a material is
considered a solid or hazardous waste. The PHMSA is therefore
clarifying in Sec. Sec. 171.8 and 173.157 that hazardous waste is
outside the scope of this rulemaking.
As previously stated, the PHMSA is also clarifying that the
definition of ``reverse logistics'' applies only to the return of
hazardous materials from a retail store to the product's manufacturer,
supplier, or distribution facility. Therefore, in this final rule, the
definition for ``reverse logistics'' has been revised to read, ``Means
the process of offering for transport or transporting by motor vehicle
goods from a retail store for return to its manufacturer, supplier, or
distribution facility for the purpose of capturing value (e.g. to
receive manufacturer's credit), recall, replacement, recycling, or
similar reason.'' In addition, the PHMSA notes that individual
consumers are not considered hazmat employees under Sec. 171.8 of the
HMR and, therefore, would not be directly affected by the new
requirements in this rulemaking.
Applicability and Hazard Classes
In the NPRM, we proposed hazard classes and quantities of hazmat
authorized for reverse logistics shipments. We also proposed to limit
shipments under the reverse logistics to highway transportation only.
Several commenters request that the PHMSA extend the applicability to
rail and vessel transportation. These commenters believe the rule
should authorize the use of domestic vessel and rail shipments where
such modes of transportation are used as part of the reverse logistics
process. Commenters express that without an extension of the proposed
rule to cover domestic vessel and rail shipments utilized during
reverse logistics, some retailers may have to create two reverse
logistics processes, which will add complexity, confusion, and
ultimately, difficulty in execution. Since additional modes were not
proposed in the NPRM, these comments are beyond the scope of this
rulemaking, and the PHMSA is not adding these modes to the
applicability section of this final rule.
Heritage Environmental Services notes that the PHMSA already
provides limited quantity provisions in Part 173 of the HMR for retail
products that would typically be shipped under the reverse logistics
section. The PHMSA agrees and notes that the hazmat classes and
quantities addressed in this final rule are consistent with existing
limited quantity provisions when using non-private carriers. One
exception is that the final rule authorizes the transportation by
private carrier of certain Division 2.1 and 2.2 cylinders without the
cylinders being tested for pressure. This exception would authorize
retail stores to offer certain returned cylinders as a hazardous
material when they may no longer meet the definition of a Division 2.1
or Division 2.2 hazardous material. Other deviations from the limited
quantities approach, which would allow for the shipment of 1.4G
(fireworks and flares), Division 2.1 and 2.2 cylinders (that do not
qualify as limited quantity shipments) sold as retail products, and the
return of equipment powered by flammable liquids or flammable gases,
are permitted under this section only when offered and transported by
private carrier. As discussed later in this final rule, the PHMSA also
revised employee training requirements for the shipments under the
reverse logistics section.
Comments submitted by FedEx seek clarification on the methodology
used to develop the authorized hazard classes for this rulemaking. The
list of hazardous classes eligible for the reverse logistics section in
the NPRM was developed based on information provided in petitions,
comments to the ANPRM, and the initial regulatory analysis. However, in
response to comments to the NPRM, the PHMSA has revised this final rule
to be consistent (with exception of the deviations noted in the
previous paragraph) with the hazard classes and quantity limitations
found in the applicable corresponding limited quantities sections of
the HMR.
In the NPRM, we proposed to limit applicable Division 1.4 hazmat to
consumer fireworks and ammunition. The PHMSA received comments from the
American Pyrotechnics Association, Kellner's Fireworks, the National
Fireworks Association, and Greyland Presbury supporting the inclusion
of 1.4S and 1.4G fireworks in the final rule. COSTHA commented that the
PHMSA should implement a quantity-per-package limit for Division 1.4
hazmat and does not believe that the PHMSA demonstrated an adequate
safety analysis to justify including flares and fireworks. The DGAC
commented that Division 1.4 materials should not be limited to
fireworks and flares and proposed a tiered approach to regulating
Division 1.4 hazmat. United Parcel Service (UPS) indicates that
Division 1.4 hazmat should not be included as part of this rulemaking
since there are already applicable limited quantity provisions.
We agree. Therefore, in response to the comments, the PHMSA has
revised the proposed language to include Division 1.4 materials in the
final rule with certain limitations. For the purposes of fireworks and
flares, the reverse logistics transportation of these materials will be
limited to consumer grade fireworks sold at retail facilities. In
addition, the PHMSA is requiring consumer grade fireworks to be
packaged as required by the approval assigned to those fireworks. This
will help to ensure that fireworks packages are shipped in an
equivalent manner to when they were originally shipped in the forward
logistics chain. In response to comments discussed later, the PHMSA has
also added language that limits all reverse logistics shipment of
Division 1.4 materials to 30 kg (66 pounds) per package. This is
consistent with what is required for limited quantities shipments in
the forward logistics chain. Also, in response to UPS and other
commenters, the PHMSA is limiting the shipment of 1.4S and 1.4G
fireworks and flares to transportation by private carrier when shipped
as reverse logistics. By authorizing the shipment of these materials as
limited quantities by private carrier, the PHMSA is providing an
exception from existing limited quantity provisions to authorize for
transportation the shipment of consumer fireworks and flares as reverse

[[Page 18531]]

logistics. However, we believe that the proposed controls coupled with
limitation to private carrier-only appropriately balances any safety
concerns.
With the exception pertaining to 1.4S and 1.4G fireworks and flares
as noted above, explosive materials authorized under Sec. 173.157 for
non-private carrier will be consistent with the types of 1.4S
(ammunition-related) materials authorized to be shipped as limited
quantities. Specifically, the PHMSA is authorizing 1.4S hazardous
materials that are allowed for shipment as a limited quantity under
Sec. 173.63(b) to be allowed for both private and non-private carrier
transport of reverse logistics shipments. By ensuring consistent hazard
communications for non-private carrier shipments under reverse
logistics, air carrier employees will be better able to recognize and
reject shipments not authorized for air transportation.
The PHMSA received several comments regarding other hazard classes
proposed in the applicability section of the NPRM. Several commenters
present concerns with including hazard Divisions of 5.2 (organic
peroxides), 6.1 (toxic materials), and 6.2 (infectious substances).
Specifically, ATA and COSTHA question the inclusion of Division 6.1
hazmat that is also toxic-by-inhalation (TIH). In addition to noting
that these materials are inherently dangerous in transport and are not
permitted to be shipped as limited quantities, COSTHA asserts its
belief that it would be prudent to also prohibit these materials from
being offered as reverse logistics shipments. Further, ATA notes its
concern with the inclusion of Division 6.2 materials and adds that a
shipper with limited training could ship Ebola, for example, under the
proposed exception. FedEx and UPS also comment that Division 6.1 and
6.2 materials should not be included in the final rule. Specifically,
FedEx contends that even when transported in limited quantities,
Division 6.2 hazardous materials may pose a risk to health, safety, and
property when transported under the scope of ``reverse logistics.''
Further, UPS notes that including Division 6.2 materials could conflict
with various state regulations involving the transportation of medical
waste. UPS adds that under the limited quantities section, Division 6.1
hazmat is limited to Packaging Groups (PG) II and III.
We agree. Therefore, based on these comments, the PHMSA has
determined that Division 5.2 and 6.2 materials would not be appropriate
for reverse logistics shipments. Therefore, we are removing the
applicability of this rule to Division 5.2 and 6.2 hazardous materials.
In addition, the PHMSA is also excluding Division 4.1 materials that
are also self-reactive as these materials present a similar risk as
Division 5.2 materials. With regards to Division 6.1 materials, the
PHMSA notes that there are consumer products found in retail outlets
(such as rat poison), that would meet the definition of Division 6.1
and be appropriate for reverse logistics shipments. Additionally, the
PHMSA agrees with UPS that these materials should be limited to PG II
and III in order to remain consistent with the limited quantities
provisions of the HMR. The PHMSA also agrees that TIH materials should
not be included and is clarifying in this final rule that Division 6.1
materials which also meet the definition of a TIH material cannot be
transported as a reverse logistics shipment. Therefore, in this final
rule we are limiting Division 6.1 materials (excluding TIH materials)
to PG II and III only.
The DGAC suggested that the PHMSA should not include any materials
found in Table 1 of the Sec. 172.504 general placarding requirements
as part of this rulemaking. Hazardous materials found in Table 1 of
Sec. 172.504 must display appropriate placards when any quantity of a
material is being transported. We agree. Therefore, we are not
including any materials found in Table 1 of the Sec. 172.504 general
placarding requirements as part of this rulemaking. In addition, we are
also limiting this rulemaking to only a portion of materials found in
Table 2 of Sec. 172.504.
Wal-Mart requests that the PHMSA extend the applicability to Class
7 (radioactive) materials, which would include retail products such as
smoke detectors. Since the PHMSA did not propose to include Class 7
materials as part of the NPRM, the comment is beyond the scope of this
rulemaking, and we are not able to accommodate the change it as part of
this rulemaking.
The ATA expresses concern about the inclusion of Division 4.3
(dangerous when wet) materials and notes that these substances can
flare when exposed to water, thus causing issues for emergency
responders. COSTHA adds that the PHMSA should consider limits on
Division 4.3 materials. We agree. Therefore, based on comments received
the PHMSA is no longer considering Division 4.3 materials for this
rulemaking and is removing it from the applicability section.
Similarly, the PHMSA believes that Class 8 and Class 5, PG I materials
are not typically sold as retail products and are otherwise
inappropriate due to their risk profile. Therefore, the PHMSA is
limiting Class 8 and Class 5 materials to PG II and III, which will
also be consistent with the hazard classes authorized under the limited
quantity provisions.
The PHMSA is not authorizing the shipment of lithium batteries as
reverse logistics as the current exceptions for the shipment of lithium
batteries in Sec. 173.185 already provide a means for the return of
these products. Specifically, Sec. 173.185(d) authorizes the shipment
of lithium cells and batteries (including lithium cells and batteries
contained in equipment) for disposal and recycling. Section 173.185(f)
authorizes the shipment of lithium cells and batteries that are
damaged, defective, or recalled. Particularly with the international
supply chain associated with these products, establishing a new,
alternative, and domestic-only hazard communication requirement for
these shipments would be duplicative and would not be in the interests
of safety.
In summary, after careful review and consideration of the comments
to the NPRM, the PHMSA is including certain consumer products in
Classes 3, 8 (PG II and III), and 9 (except lithium batteries); certain
Division 1.4S materials; and Divisions 2.1, 2.2, 4.1 (excluding self-
reactive materials), 5.1 (PG II and III), and 6.1 (excluding TIH and PG
I), within the scope of reverse logistics under this final rule.
The PHMSA believes, based on comments and petitions, that these
hazard classes and divisions cover much of the hazmat in the reverse
logistics process, and the risk presented by the quantities of such
hazmat used in consumer products can be managed within the reverse
logistics provisions established under this rule. In order to codify
these hazmat and quantities, the PHMSA is providing an exception for
reverse logistics shipments in each of the applicable sections for each
hazard class or division that is included as a part of this rulemaking:
For example, Sec. 173.150 provides exceptions for flammable liquids.
The PHMSA is adding new paragraph (h) to Sec. 173.150 to authorize
reverse logistics shipments that meet the limited quantity provision of
Sec. 173.150(b), the requirements in the new reverse logistics
definition in Sec. 171.8, and the new reverse logistics section in
Sec. 173.157. Similar language is being codified to the exceptions
section for each hazard class or division included as a part of this
rulemaking. However, we note that not all hazmat authorized under the
limited quantity

[[Page 18532]]

provisions is authorized under the reverse logistics section.

B. Packaging

General Packaging
In the NPRM, the PHMSA proposed a set of packaging standards under
the reverse logistics exception to ensure consistent and safe packaging
requirements for low hazard items. The proposed standard included
requiring the use of the original packaging or a packaging of
equivalent strength or integrity. The NPRM also proposed to require
that inner packagings be leak-proof for liquids and sift-proof for
solids. Further, for liquids that require an outer packaging, enough
absorbent material to contain a spill from the inner packagings must be
present. The proposed exception also required shippers to secure
products in cages, carts, or bins to prevent shifting during transport.
In response to this proposal, ATA suggests that the PHMSA redraft
the packaging requirement to read ``each material must be packaged in
the manufacturer's original packaging, if available, and in
substantially similar condition to when it left the manufacturer, or a
packaging of strength and integrity commensurate to the manufacturer's
original packaging.'' The ACA states its belief that use of original
packaging or one of equivalent strength containing absorbent material
is problematic; the Airline Pilots Association supports the packaging
standards proposed in the NPRM; and Siemens Healthcare suggests the
packaging standards should only apply when original packaging is
unavailable. FedEx adds that the PHMSA should require original
packaging, and if one is not available, the PHMSA should require
salvage drums for consolidation, asserting that it is unreasonable to
expect minimally-trained employees to put damaged materials in
packaging of equal strength. G2 Revolution expresses its concern that
this section will interfere with the ``salvage drums'' requirements
under Sec. 173.3(c) of the HMR. UPS expresses concern pertaining to
the reliance on fiberboard packages that could result in structural
failures of the packagings. Giant Cement Holding, Inc. (Giant Cement)
asks the PHMSA to clarify what constitutes a ``packaging of equal or
greater strength and integrity.'' Wal-Mart seeks clarification on what
items require an outer packaging and whether ``receptacles'' are the
same as an ``inner packaging.''
After consideration of the aforementioned comments, the PHMSA is
modifying the packaging requirements as proposed in the NPRM. The PHMSA
disagrees with FedEx that salvage drums are necessary for the shipment
of consumer-type products that are placed in a package of equal or
greater strength and integrity. However, the PHMSA notes that packages
that are leaking or damaged would not be in compliance with limited
quantity provisions. The PHMSA believes that the consumer products that
are authorized under this rulemaking are consistent with what is
authorized under the limited quantities sections. As written, consumer-
type products shipped under this final rule should not be in such a
damaged state that a salvage drum would always be required. The PHMSA
agrees with the language suggested by ATA and is adding this language
to the packaging section for clarification that packages should be in
the original packaging or a package of similar strength and integrity.
Especially for transport by non-private carrier, it is the PHMSA's
intent is to ensure that hazmat shipped under the reverse logistics
section will be transported in packages that are the same as what would
be required under the limited quantities sections of the HMR.
The ACA suggests amending proposed Sec. 173.157(a)(2)(ii) to
incorporate Special Provision 149 in Sec. 172.102 to authorizes inner
packagings not exceeding 5 L (1.3 gallons) for PG III materials,
further adding that there should be some consideration of increasing
the capacity threshold for Class 3, PG III materials to authorize the
return of 5-gallon pails of paint.
As the PHMSA did not propose to expand the quantities for PG III
materials, the ACA's comment is beyond the scope of this rulemaking,
and therefore, we are not adopting such a revision in this final rule.
However, if the ACA believes that revision of the threshold quantities
for certain materials authorized under ``reverse logistics'' is
justified, the PHMSA suggests they submit a petition for rulemaking
providing justification.
Several commenters from the regulated community express concern
that there is no size limitation on the packages used in the reverse
logistics process. COSTHA suggests implementing a 30 kg (66 pounds)
limit on reverse logistics shipments. Conversely, Giant Cement suggests
Large Gaylord boxes (large corrugated boxes) should be allowed as a
strong outside package. The PHMSA agrees with the majority of
commenters that there should be a limit on the size per package of
shipments made under the reverses logistics section. As there is a size
limit of 30 kg (66 pounds) per package for hazmat shipped as limited
quantities under Part 173 of the HMR, the types of packages shipped
under the reverse logistics will be consistent with those products
shipped as limited quantities. Otherwise, packages shipped under the
reverse logistics section would be shipped in sizes larger than what is
authorized by the limited quantities sections. Therefore, in this final
rule, the PHMSA is setting a 30 kg (66 pound) limit for each package
shipped under the reverse logistics section.
Giant Cement expresses concern that shippers will add absorbent
material even when there is no damage to the products shipped under the
reverse logistics section. Inmar Inc. suggests mandating absorbent
materials is unnecessary and suggests that leak-proof cardboard boxes
should be adequate for reverse logistics shipments. Inmar Inc. adds
that the term ``compromised receptacle'' is unnecessarily vague and not
needed in the provisions, therefore suggesting that the PHMSA clarify
what types of receptacles would be considered compromised. In this
final rule, the PHMSA is removing the language proposed in Sec.
173.157(b)(2) and (b)(3) related to leaking products containing hazmat,
as well as aligning the reverse logistics section with the limited
quantities section of the HMR. Therefore, only packages that would be
suitable for shipment under the limited quantities section would be
eligible for shipment under this section.
Inmar Inc. also notes that the section in the NPRM discussing
equipment with batteries needs clarification as to what type of
products this section addresses. For clarification, the PHMSA is
specifying that only equipment containing non-lithium batteries may be
shipped as reverse logistics. Lithium cells or batteries, as well as
products containing lithium cells or batteries, must be offered in
accordance with the requirements in Sec. 173.185 and are not within
the scope of this final rule.
The RILA asks the PHMSA to clarify if there is a difference between
``leak-proof'' and ``leak-tight,'' with UPS and Wal-Mart stating that
the PHMSA should clarify what is considered ``leak-proof'' or ``sift-
proof.'' In addition, RILA suggests the PHMSA include a definition for
``leak-proof,'' while Wal-Mart expresses concern that there is neither
a definition of ``leak-proof'' nor ``leak-tight.''
For the purposes of packagings shipped under the reverse logistics
requirements, the PHMSA is only requiring that the reverse logistics
packages are closed in a manner that

[[Page 18533]]

leakage will not occur under normal conditions of transportation. This
means transporting retail items in their original packaging or a
packaging of equal or greater strength if the original packaging is
unavailable. The PHMSA does not believe it is necessary to define
``leak-proof'' or ``leak-tight'' for the purposes of this rulemaking.
Cylinders and Aerosols
The ATA notes that the proposed rule extends to cylinders shipped
as single packages. In addition, ATA comments that carriers' hazmat
training programs teach drivers to demand shipping papers, placards,
etc. when receiving cylinder shipments and asserts that allowing
cylinders to be shipped as reverse logistics hazmat without these
documents undermines carriers' overall hazmat training programs for
their drivers. UPS also expresses concern that allowing the transport
of Division 2.1 and 2.2 materials without a shipping paper could cause
confusion concerning standard procedures that carriers use for the
shipment of cylinders.
The PHMSA disagrees that shipments of cylinders returned from
retail facilities to distribution centers in accordance with this rule
would compromise safety. The cylinders shipped under this section are
retail consumer products representing a low hazard and are limited to
the return of products from the retail facility to the manufacturer,
supplier, or distribution facility. Cylinders offered to non-private
carriers must be in full compliance with existing limited quantity
provisions--including existing hazard communications requirements.
Cylinder or aerosols containing hazardous materials that are not
limited quantities that weigh less than 66 pounds, and that are
intended for retail sale are restricted to transportation by private
carriers.
In the NPRM, the PHMSA proposed that aerosols shipped under this
section must have caps and closures. Several commenters raise questions
pertaining to the preparation of aerosols (see Sec. 171.8 of the HMR
for the definition of ``aerosol'') for reverse logistics shipments.
Giant Cement requests clarification that aerosols are not liquids for
shipping purposes and, therefore, are not required to be shipped with
absorbent material. The Association of Hazmat Shippers (AHS) and Inmar
Inc. suggest that the stem of an aerosol should be allowed to be
removed, while C&S Wholesale Grocers and Wal-Mart suggest that the
PHMSA allow caps other than the original cap for the aerosol can. Inmar
Inc. asks if receptacles include aerosols, and if so, it suggests the
PHMSA consider size limitation on the entire package.
The HMR currently authorizes the shipment of aerosol cans as
consumer commodities in Sec. 173.306. The PHMSA believes the
provisions in Sec. 173.306 are adequate to address the transportation
of aerosol cans as reverse logistics shipments. Therefore, based on our
intent to align the reverse logistics section with the limited quantity
provisions, shipments of aerosol cans transported as reverse logistics
shipments should be packaged in accordance with the limited quantity
provisions specified in Sec. 173.306.
Internal Combustion Powered Equipment
In the NPRM, the PHMSA proposed to authorize the transport of
equipment powered by an internal combustion engine containing a
flammable liquid under the reverse logistics section provided the
flammable liquid source was drained and all shut-off devices were in
the closed position. These products are unique in that they did not
contain hazardous materials at the time of purchase but could become
regulated by the HMR as return shipments. In its comments, DGAC seeks
clarification from the PHMSA about whether equipment powered by an
internal combustion engine (with either flammable liquid or gas fuel)
and equipment powered by electric storage batteries are excepted from
the packaging requirement in Sec. 173.157(b)(2) as proposed. Inmar
Inc. notes that the proposed Sec. 173.157(c) requirements for internal
combustion powered equipment (i.e., lawn mowers, weed trimmers) seem
more stringent than Sec. 173.220, which authorizes gasoline to remain
in equipment. Inmar Inc. believes these requirements should match what
is currently required in Sec. 173.220. Wal-Mart supports the proposal
to allow reverse logistics shipment of items with a fuel tank provided
they are drained with closures securely in place.
The PHMSA agrees with Inmar Inc. that the requirements for reverse
logistics shipments of internal combustion powered equipment should
align with what is currently allowed by highway in Sec. 173.220(b)(4).
Therefore, the PHMSA is allowing the return of internal combustion
powered equipment by motor vehicle provided the fuel tank remains
securely closed. The PHMSA is also restricting the allowances proposed
in the NPRM for flammable liquid-powered equipment, flammable gas-
powered equipment, and other equipment powered by flammable gas to
transportation by private carrier.
Other Comments
The Rechargeable Battery Association (PRBA) suggests revising Sec.
172.102 Special Provision 130 to allow for batteries utilizing
different chemistries. Except for lead-acid batteries and lithium
batteries, the PHMSA did not propose in the NPRM to authorize batteries
utilizing different chemistries for reverse logistics shipments.
Expanding these provisions in this final rule would be beyond the scope
of this rulemaking. Therefore, we are unable to accommodate PRBA's
comments in this final rule.

C. Hazard Communication

In the NPRM, the PHMSA proposed that packages shipped under reverse
logistics be marked with the common names or proper shipping names of
the hazmat contained within the package. The PHMSA received several
comments expressing safety concerns with this proposed requirement. For
example, ATA notes that a common name could be as uninformative as
``lawn care product'' or ``expired cosmetics,'' further adding that a
common name might also be a brand name, such as ``Dutch Boy'' to
represent a flammable paint. Therefore, ATA suggests the PHMSA require
the use of a ``REVERSE LOGISTICS--HIGHWAY TRANSPORT ONLY'' marking
similar to other marking requirements in the HMR. C&S Wholesale Grocers
suggests the PHMSA require a sticker advising that the box may contain
limited amounts of hazmat. The DGAC adds that shipments made under
reverse logistics should require a marking, contending that a marking
would alert drivers and carriers to the presence of hazmat being
transported under the reverse logistics section. The DGAC further
suggests that the marking read, ``This package conforms to 49 CFR 173.4
for domestic highway or rail transport only,'' or, more preferably,
that there be a pictogram to indicate a reverse logistics shipment.
FedEx and other commenters express concern that only requiring a
common name on a package and not a hazmat marking could lead to reverse
logistics shipments on aircraft. COSTHA comments that requiring the
common name or shipping name of items in the package would not provide
much value. Instead, COSTHA suggests requiring the marking, ``This
package conforms to the requirements of Sec. 173.157 for domestic
surface transport only.'' Alaska Airlines comments that packages need
more information on the outside regarding the contents and supports a
marking similar to what ATA and COSTHA suggest. UPS states a lack of
communication on

[[Page 18534]]

packages will result in difficulty when reporting spills of hazmat,
such as is required by some states. Conversely, both Wal-Mart and
Advanced Auto Parts suggested not requiring an additional marking when
an outer packaging is already required.
After consideration of all the comments, the PHMSA agrees with the
majority of the commenters that a more informative and recognizable
marking is needed and that it is necessary to modify the marking
requirement for packages shipped under the reverse logistics.
Therefore, the PHMSA is replacing the proposed common name or proper
shipping name marking requirement with the marking ``REVERSE
LOGISTICS--HIGHWAY TRANSPORT ONLY--UNDER 49 CFR 173.157.'' Moreover,
this marking would only be permissible for shipments offered to and
transported by private carriers. Conversely, as shipments made by non-
private carriers meet all limited quantity conditions except for
training, the limited quantity marking found in Sec. 172.315(a)(1)
will be required. We note that the limited quantity marking is well-
recognized in both ground and air modes. This familiarity will help to
ensure that air carriers are better able to identify shipments offered
for non-private carrier transportation under the reverse logistics
section of the HMR, thus safeguarding that hazmat shipments are even
more readily recognized and, therefore, more easily rejected from
inadvertent air transportation. This revision is intended to address
the concerns of air carriers and other commenters that these shipments
could enter into transportation modes other than highway.
Advance Auto Parts states its belief that the requirement to notify
the driver of the presence of hazmat needs clarification or should be
removed; FedEx and Inmar Inc. are not sure how the PHMSA expects the
requirement to notify the driver of the presence of hazmat to be
satisfied; and DGAC notes that a marking on the package would alert
drivers and carriers to the presence of hazmat under the reverse
logistics section.
We agree. Therefore, in this final rule, the PHMSA is removing the
proposed requirement to notify drivers of the presence of hazmat with a
reverse logistics shipment. The PHMSA believes that the revised reverse
logistics marking on packages is sufficient to indicate the presence of
a reverse logistics shipment is present and negates the need for driver
notification.

D. Training

In the NPRM, the PHMSA proposed that retail employees who prepare
hazmat shipments for return from retail facilities to the distribution
centers be excepted from comprehensive training requirements. A central
element of this training is the employee's knowledge of the types of
materials that are being returned to manufacturers, suppliers, or
distribution facilities. As proposed, for reverse logistics shipments,
employees must be able to recognize hazmat and prepare the shipments in
accordance with the requirements specified in the reverse logistics
section--including adherence to the clear instructions provided by
manufacturers, suppliers, or distribution facilities. This approach was
considered acceptable in light of the wide array of hazmat common to
many retail stores and the limited public exposure such shipments will
have in the overall transport system. Moreover, consumer products in
the retail industry are generally lower risk and easier to package than
industrial-type hazardous materials.
The PHMSA received a range of comments pertaining to the reduced
training requirements. The Airline Pilots Association and FedEx express
their disagreement with the reduced training requirement: The Airline
Pilots Association notes that currently there are occurrences of
undeclared hazmat in the air mode, and it is concerned that a reduction
in training will increase the opportunity for these shipments to be
loaded onto an aircraft. FedEx also expresses concern about whether
relaxed training requirements as proposed will provide an adequate
level of safety. COSTHA adds that the PHMSA should better define who
requires training and should eliminate the recordkeeping requirement
for training under the reverse logistics section. C&S Wholesale
Grocery, DGAC, ACA, and Kellner's Fireworks expressed support of the
reduced training requirements. Giant Cement notes it should be made
clear that management and supervisors should not be excepted from the
full training requirements. G2 Revolution believes that the PHMSA is
underestimating the savings with the reduced training requirement but
did not quantify by how much.
The PHMSA considered and agreed in principle with commenters
pertaining to training requirements and is simplifying these
requirements in this final rule. Specifically, the PHMSA is clarifying
that retail employees shipping hazardous materials as reverse logistics
shipments must be familiar with the reverse logistics requirements
adopted in this final rule. Retail employees must also document that
returned shipments of hazardous materials authorized in this final rule
are done so in a manner that is consistent with instructions provided
by the manufacturer, supplier, or distribution facility. For example,
instructions could be emailed, retrieved from a Web site, or retained
in hard copy with instructions on how to return certain hazardous
materials as instructed by the manufacturer, supplier, or distribution
facility. The PHMSA believes that these requirements, in conjunction
with the requirement that retail employees have knowledge of the types
of materials that are being returned, would be sufficient to properly
prepare hazmat for reverse logistics shipments.
We recognize that hazmat employees of manufacturers, suppliers, or
original distributors who have already been trained in accordance with
the training requirements in Sec. 172.704 of the HMR will assist in
ensuring that a majority of shipments are being shipped in appropriate
packaging. In this final rule, the PHMSA is clarifying that when
performing hazmat functions for the purpose of transporting reverse
logistics shipments, employees are subject only to those training
requirements specified in this final rule for reverse logistics.

E. Segregation

In the NPRM, the PHMSA proposed to authorize the mixing of various
hazard classes and divisions provided the contents of the packages are
not leaking. The ATA suggests that parties offering shipments comprised
of both traditional and ``reverse logistics'' hazmat be required to
manifest all hazmat on the load's shipping papers, including hazmat
moving under the reverse logistics exception. COSTHA adds that reverse
logistics shipments transported with traditional hazardous materials
should comply with all segregation, shipping paper, placarding, etc.
requirements, unless some portion of the hazmat qualifies for a
demonstrably safe exemption from these requirements, such as the
limited quantity regulations. FedEx suggests that the segregation
requirement should be re-worded to say, ``Hazardous materials that may
react dangerously with one another may not be offered for
transportation in the same outer package.'' Inmar Inc. comments that
the PHMSA should provide a table to make it easier for industry to know
what types of materials would react dangerously and also suggests that
the requirement for hazmat to be ``adequately separated'' is vague and
needs clarification. COSTHA supports the proposed segregation language
for

[[Page 18535]]

outer packages but notes that it is impractical for carriers to know if
various outer packages meet the segregation requirement. Further, for
simplicity, COSTHA suggests that the PHMSA include the reverse
logistics segregation requirements in the reverse logistics exception
section.
The PHMSA is aligning the reverse logistics section for
transportation on non-private carriers with the requirements specified
in the limited quantities section of the HMR. Therefore, for non-
private carriers, no additional or specific language on segregation
requirements is required under this rule. The PHMSA notes, however,
that segregation requirements will apply for reverse logistics
shipments of 1.4S and 1.4G fireworks and flares, which this final rule
authorize for transport by private carrier only.

F. Incident Reporting

In the NPRM, the PHMSA proposed to limit incident reporting to
those outlined in Sec. 171.15 for shipments made under the reverse
logistics requirements. In response to this proposal, the ACA suggests
that incident reporting should not be required for reverse logistics
shipments since incident reports are not required for materials of
trade (MOTs) transport or limited quantities shipments. COSTHA suggests
that the written report requirements of Sec. 171.16 should not apply
to the reverse logistics section and that this requirement poses
difficulties for carriers, as much of the information required to be
reported on a DOT-5800.1 will not be available. The ATA recommends
either treating reverse logistics hazmat releases as if the carrier
discovered undeclared hazmat under Sec. 171.16(a)(4) or treating these
releases as being exempt from incident reporting requirements under
Sec. 171.16(d). The ATA adds that filling out an incident form for a
reverse logistics shipment will be impossible without shipping papers
and other hazard communication (e.g., proper shipping name marking).
FedEx asks how the PHMSA expects carriers to comply with incident
reporting when there is little to no hazard communication required.
As noted in the hazard communication discussion above, the PHMSA
believes that requiring a marking that indicates a shipment contains
hazmat under the reverse logistics section provides the necessary
information for carriers to report a hazmat release in accordance with
the reporting requirements in Sec. 171.15. For non-private carriers,
the PHMSA has aligned with limited quantity provisions, thus subjecting
these shipments to the current incident reporting requirements and
exceptions.

G. Battery Recycling

In the NPRM, the PHMSA proposed to revise Sec. 173.159(e) to
authorize the pick-up of used automobile batteries (i.e., electric
storage batteries) from multiple shipper locations. The PHMSA received
comments from DGAC, BCI, and the National Association of Manufactures
in support of modifying the battery exception in Sec. 173.159(e) to
authorize the pick-up of used automobile batteries from multiple
shipper locations. However, RSR Corporation opposes the change and
urges the PHMSA to keep the single shipper provision intact, further
specifying that the removal of the provision would lead to an increase
in incidents involving the transportation of used lead-acid batteries.
The BCI and DGAC seek clarification on what the PHMSA meant by the
language in this section that reads ``pallets should be built.''
The 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.
Rather, it is the PHMSA's position that because Sec. 173.159(e)
requires batteries to be loaded or braced to prevent damage and short
circuits in transit, the likelihood of an incident is minimal Allowing
the collection of lead-acid batteries from multiple locations, as the
BCI notes, will result in fewer miles traveled to accomplish battery
collection activities. Therefore, this will reduce the number of
highway miles traveled, the risk of highway accidents, and the impact
on the environment. For these reasons, the PHMSA is revising Sec.
173.159(e)(4) to authorize the pick-up of used automotive batteries
from multiple retail locations for the purposes of recycling, provided
those batteries are consolidated on pallets and loaded so as to not
cause damage to the batteries during transportation.
When the PHMSA used the term ``should be built'' in the proposed
revision to Sec. 173.159(e)(4), we were referring to how the batteries
were stacked on the pallet, not the construction of the pallet itself.
In this final rule, the PHMSA is revising this language to clarify our
intention. In addition, the PHMSA is requiring incident reporting for a
spill that occurs while transporting under the revised battery
exception. It should be noted that EPA export requirements (i.e., 40
CFR part 266, subpart G and 40 CFR part 273), such as notice and
consent and annual reporting, apply even if spent lead-acid batteries
(SLABs) are recycled.

IV. Regulatory Review and Notices

A. Statutory Authority

Federal Hazardous Materials Transportation Law (49 U.S.C. 5101-
5128) authorizes the Secretary of Transportation (Secretary) to
``prescribe regulations for the safe transportation, including
security, of hazardous material in intrastate, interstate, and foreign
commerce.'' The Secretary delegated this authority to the PHMSA in 49
CFR 1.97(b). The PHMSA is responsible for overseeing a hazardous
materials safety program that minimizes the risks to life and property
inherent in the transportation of hazardous materials in commerce.
Annually, the HMR provides safety and security requirements for
transport of more than 2.5 billion tons of hazardous materials
(hazmat), valued at about $2.3 trillion, accounting for 307 billion
miles traveled on the nation's interconnected transportation network.
In addition, the HMR includes operational requirements applicable to
each mode of transportation.
This final rule 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 final rule provides
regulations for the transport of hazardous consumer products in the
reverse logistics process.

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

This final rule is not considered a significant regulatory action
within the meaning of Executive Order 12866 (``Regulatory Planning and
Review'') and the Regulatory Policies and Procedures of the Department
of Transportation (44 FR 11034).
Executive Order 13563 (``Improving Regulation and Regulatory
Review'') is supplemental to and reaffirms the principles, structures,
and definitions governing regulatory review that were established in
Executive Order 12866 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,

[[Page 18536]]

and job creation.\6\ 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 directed 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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\6\ 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 (``Identifying and Reducing Regulatory
Burdens''), issued May 10, 2012, urges agencies to conduct
retrospective analyses of existing rules to examine whether they remain
justified or whether they should be modified or streamlined in light of
changed circumstances, including the rise of new technologies.\7\
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\7\ See http://www.gpo.gov/fdsys/pkg/FR-2012-05-14/pdf/2012-11798.pdf.
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These three Executive Orders act together to 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.''
Additionally, Executive Orders 12866, 13563, and 13610 require
agencies to provide a meaningful opportunity for public participation.
Accordingly, the PHMSA invited public comment twice (ANRPM published on
July 5, 2012 [77 FR 39662]; NPRM published on August 11, 2014 [79 FR
46748]) on these considerations, including any cost or benefit figures
or factors, alternative approaches, and relevant scientific, technical
and economic data. These comments aided the PHMSA in the evaluation of
the proposed requirements. The PHMSA has since revised our evaluation
and analysis to address the public comments received.
The PHMSA has evaluated the HMR with respect to reverse logistics
and identified areas that could be modified to increase flexibility for
the regulated community. In this final rule, the amendments are an
optional means to comply with the HMR and will not impose increased
compliance costs on the regulated industry. By proposing to add a new
Sec. 173.157 to the HMR for items shipped in the reverse logistics
supply chain, the PHMSA will increase flexibility to industry. The
PHMSA believes that the implementation of a regulatory approach
addressing a distinct segment of the supply that transports consumer-
type goods, coupled with outreach, will create a framework that will
allow for the safe transportation of dangerous goods.
In addition to providing a new reverse logistics section for
transporting specifically authorized hazmat, this rulemaking expands an
existing exception for exclusive shipments of used automobile
batteries. This exception is typically used for shipment of these
batteries from a retail facility to a recycling center. This change to
the HMR will allow the regulated community to consolidate shipments of
automotive batteries (i.e., lead-acid batteries) for recycling.
A summary of the Regulatory Evaluation used to support the
requirements presented in this final rule are discussed below, and 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
The PHMSA assumes that this rulemaking would reduce shipping paper
preparation costs for shipments involving certain quantities of
commodities. The packages will, however, require a marking indicating
that the materials are being shipped in accordance with Sec. 173.157
or the existing limited quantity marking. Transport vehicles carrying
packages affected by the rule will no longer require placarding.
Additionally, the training requirements are amended to reflect a
distinct segment of the supply chain which transports consumer-type
hazardous materials as return shipments from retail stores. Finally,
the PHMSA is relaxing the requirements for exclusive use shipment of
wet batteries (i.e., lead-acid batteries). This change will reduce the
transportation costs associated with shipment for the recycling of
lead-acid batteries. A table identifying the benefits associated with
this final rule is provided below:

Benefits of the Final Rule (Reduced Compliance Costs)
------------------------------------------------------------------------
Amount of annual
Relevant HMR citation Category savings
------------------------------------------------------------------------
Sec. 173.157................ Training.............. $4-8 million.
Sec. 173.157................ Shipment Preparation.. $0-1 million.
Sec. 173.159................ Transportation Costs-- $1-2 million.
Battery Recycling.
------------------------------------------------------------------------

Note that the numbers above represent an upper bound on the
expected savings from this final rule. In this final rule, the PHMSA
did remove some hazard classes from the applicability and reduced the
size limit on packages to 30 kg (66 pounds). The hazard classes in this
final rule represent a vast majority of the consumer-type products
containing hazardous materials. In addition, the 30 kg (66 pound)
package limit is consistent with limited quantity shipments used for
these products in the forward logistics chain. Therefore, the PHMSA
believes the above numbers are a general representation of the savings
expected form this final rule. The PHMSA does not expect any additional
cost to the regulated community because of these changes.

C. Executive Order 13132

This final 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 final rule will preempt
State, local, and tribal government requirements but does not propose
any regulation that has substantial direct effects on the states, the
relationship between the Federal 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 tribal government requirements on the
following subjects:

[[Page 18537]]

(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;
(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 final rule addresses all the covered subject areas above. This
final rule will preempt any State, local, or tribal requirements
concerning these subjects unless the non-Federal requirements are
``substantively the same'' as the Federal requirements. Furthermore,
this final 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 the DOT issues a regulation concerning any of the
covered subjects, the 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.
The PHMSA has determined that the effective date of Federal preemption
for these requirements will be one year from the date of publication of
the final rule in the Federal Register.

D. Executive Order 13175

This final rule has been analyzed in accordance with the principles
and criteria contained in Executive Order 13175 (``Consultation and
Coordination with Indian Tribal Governments''). The PHMSA did not
receive any comments from or requests for consultation and coordination
with tribal governments related to this rulemaking action. Because this
final rule does not significantly or uniquely affect the communities of
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 reverse logistics
shipments are shipped properly under Sec. 173.157 and ensuring that
its employees have access to the minimal training requirements as
required under this new section.
The PHMSA expects this rule to have little or no impact on small
entities since these entities are already subject to hazmat shipping
requirements and this rule will provide an optional alternative to
current regulations. 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 this
final rule all have substantial numbers of small entities. The impacts
of the final rule are expected to be favorable because of the new
flexibility for the preparation and transport of certain hazmat within
the scope of reverse logistics. However, the PHMSA does not expect that
the impacts will be significant. A typical small entity would save
roughly $60 per affected new employee in training costs and $0.17-$2
per affected package in shipment preparation costs.
This rule applies to all shippers and carriers of hazardous
materials, to the extent that they (1) are involved in reverse
logistics movements and (2) choose to avail of the proposed new
regulations rather than the existing HMR. Key affected industries are
specialized freight trucking (NAICS 484200), general freight trucking
(NAICS 484100), electronics and home furnishing retail (NAICS 442000),
and health and personal care stores (NAICS 446000). The PHMSA does not
have detailed data on the number of potentially affected entities by
industry or their distribution by entity size; however, based on hazmat
registration data, roughly 10,785 registered shippers are small
entities (75 percent of the total) and 11,131 registered carriers are
small businesses (85 percent of the total). Not all of these offer or
transport materials in reverse logistics.
Based upon the above estimates and assumptions, the PHMSA certifies
that the amendments in this final rule 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
Evaluation, which is available in the public docket for this
rulemaking. This rule has been developed in accordance with Executive
Order 13272 (``Proper Consideration of Small Entities in Agency
Rulemaking'') and the DOT's procedures and policies to promote
compliance with the Regulatory Flexibility Act to ensure that potential
impacts of 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 Evaluation document.

F. Paperwork Reduction Act

The 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
May 30, 2016. This final rule 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 the PHMSA provide interested
members of the public and affected agencies an opportunity to comment
on information and recordkeeping requests.
The PHMSA received no comments on the information collection
portion of this rulemaking. This final rule identifies revised
information collection requests that the PHMSA will submit to OMB for
approval based on the requirements in this final rule. The PHMSA has
developed burden estimates to reflect changes in this final rule and
approximates 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.
Requests for a copy of this information collection should be

[[Page 18538]]

directed to Steven Andrews or T. Glenn Foster, (202) 366-8553, Office
of Hazardous Materials Safety, Pipeline and Hazardous Materials Safety
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590-0001.

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 final 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 it is the least
burdensome alternative that achieves the objective of the rule.

I. Environmental Assessment

The National Environmental Policy Act, 42 U.S.C. 4321 et seq.,
(NEPA) requires that Federal agencies consider the environmental
effects of final rule 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
final 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 action; (2)
alternatives to the action; (3) environmental impacts of the action and
alternatives; and (4) a list of the agencies and persons consulted
during the consideration process [See 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. The PHMSA is revising the HMR to provide requirements
that are more tailored to a consumer or retail environment. Further,
the PHMSA is providing more flexibility for exclusive use shipments of
wet batteries (i.e., lead-acid batteries) in order to promote recycling
and to allow carriers to consolidate shipments of batteries from
multiple shippers on a single transport vehicle.
2. Alternatives
The alternatives considered in this Environmental Assessment
include the following:
Alternative 1: A final rule providing regulatory flexibility to
allow low hazard consumer products to be returned to points of
origination under a new section of the HMR. This action, Alternative 1,
provides a mechanism for the regulated community to safely transport
low hazard items back to distribution centers, for example, in the
reverse logistics supply chain. The PHMSA believes that the
incorporation of this section will address the unique aspects of
reverse logistics in the retail sector.
Alternative 2: The ``no action'' alternative, meaning that the
regulatory scheme will stay the same and the final rule would not be
promulgated. This action, Alternative 2, results 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, neither would it account for the compliance
obstacles and regulatory concerns raised by retailers and shared by the
PHMSA.
3. Environmental Impacts of Selected Action
When developing potential regulatory requirements, the PHMSA
evaluates those requirements to consider the environmental impact of
each amendment. Specifically, the PHMSA evaluates the following: The
risk of release of hazmat and resulting environmental impact; the risk
to human safety, including any risk to first responders; the longevity
of the packaging; and the circumstances in which the regulations would
be carried out (i.e., the defined geographic area, the resources, any
sensitive areas) and how they could thus be impacted.
Of the regulatory changes in Alternative 1, none has negative
environmental impacts. The revision of the exclusive use shipment of
automobile batteries in Sec. 173.159 promote and simplify the
recycling of used automobile batteries. This revision will result in
more consolidated shipments of such batteries from multiple shippers
and, in turn, will reduce the number of highway shippers on the road.
Currently, the HMR limits transport of these batteries to one shipper,
but by reducing the number of shipments by highway, this will result in
lower emissions and fuel consumption. This change will also likely
increase the lead-acid battery-recycling rate, thus reducing the number
of these batteries that end up in landfills. This reduction in
shipments will reduce the likelihood that hazmat is spilled into the
environment. Overall, all of these impacts will have a net positive
impact on the environment. The PHMSA does not believe that these
environmental impacts will be significant.
Alternative 2, the ``no-action alternative,'' would not lead to any
environmental costs or benefits.
4. Discussion of Environmental Impacts in Response to Comments
The PHMSA did not receive any comments on the environmental impact
of this rulemaking. However, the PHMSA did receive comments from the
EPA that were unrelated to the potential impact to the environment.
These comments were related to inclusion of the word ``disposal'' in
the definition of ``reverse logistics.''
5. 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, the
PHMSA, as part of its rulemaking development, consults other Federal
agencies that this rule could affect. In developing this rulemaking
action, the 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).
6. Conclusion
The provisions of this rule build on current regulatory
requirements and are modeled after existing regulatory exceptions for
low hazard materials. The PHMSA has calculated that this rulemaking
will not increase the current risk of release of hazardous materials
into the environment. Therefore, the PHMSA finds that there are no
significant environmental impacts associated with this final rule.

J. Privacy Act

In accordance with 5 U.S.C. 553(c), the DOT solicits comments from
the public to better inform its rulemaking process. The DOT posts these
comments, without edit, including any

[[Page 18539]]

personal information the commenter provides, to www.regulations.gov, as
described in the system of records notice (DOT/ALL-14 FDMS), which can
be reviewed at www.dot.gov/privacy.

K. Executive Order 13609 and International Trade Analysis

Under Executive Order 13609 (``Promoting International Regulatory
Cooperation''), agencies must consider whether the impacts associated
with significant variations between domestic and international
regulatory approaches are unnecessary or if they 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.
The 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 final rule and have found that this
domestic exception for the return of hazardous 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 the 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 final
rule does not involve voluntary consensus standards.

List of Subjects

49 CFR Part 171

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

49 CFR Part 173

Hazardous materials transportation, Packaging and containers,
Reporting and recordkeeping requirements.
In consideration of the foregoing, 49 CFR Chapter I is 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. 104-121, sections 212-213; Pub. L.
104-134, section 31001; 49 CFR 1.81 and 1.97.

0
2. In Sec. 171.8, a definition for ``Reverse logistics'' is added in
alphabetical order to read as follows:

Sec. 171.8 Definitions and abbreviations.

* * * * *
Reverse logistics means the process of offering for transport or
transporting by motor vehicle goods from a retail store for return to
its manufacturer, supplier, or distribution facility for the purpose of
capturing value (e.g., to receive manufacturer's credit), recall,
replacement, recycling, or similar reason. This definition does not
include materials that meet the definition of a hazardous waste as
defined in this section.
* * * * *

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. In Sec. 173.63, add paragraph (d) to read as follows:

Sec. 173.63 Packaging exceptions.

* * * * *
(d) Reverse logistics. Hazardous materials meeting the definition
of ``reverse logistics'' under Sec. 171.8 of this subchapter and in
compliance with paragraph (b) of this section may be offered for
transport and transported in highway transportation in accordance with
Sec. 173.157.
* * * * *

0
5. In Sec. 173.150, add paragraph (i) to read as follows:

Sec. 173.150 Exceptions for Class 3 (flammable and combustible
liquids).

* * * * *
(i) Reverse logistics. Hazardous materials meeting the definition
of ``reverse logistics'' under Sec. 171.8 of this subchapter and in
compliance with paragraph (b) of this section may be offered for
transport and transported in highway transportation in accordance with
Sec. 173.157.

0
6. In Sec. 173.151, add paragraph (f) to read as follows:

Sec. 173.151 Exceptions for Class 4.

* * * * *
(f) Reverse logistics. Except for Division 4.2 hazardous materials
and self-reactive materials, hazardous materials meeting the definition
of ``reverse logistics'' under Sec. 171.8 of this subchapter and in
compliance with paragraph (b) of this section may be offered for
transport and transported in highway transportation in accordance with
Sec. 173.157.
0
7. In Sec. 173.152, add paragraph (d) to read as follows:

Sec. 173.152 Exceptions for Division 5.1 (oxidizers) and Division 5.2
(organic peroxides).

* * * * *
(d) Reverse logistics. Except for Division 5.2 hazardous materials,
hazardous materials meeting the definition of ``reverse logistics''
under Sec. 171.8 of this subchapter and in compliance with paragraph
(b) of this section may be offered for transport and transported in
highway transportation in accordance with Sec. 173.157.
0
8. In Sec. 173.153, add paragraph (d) to read as follows:

Sec. 173.153 Exceptions for Division 6.1 (poisonous materials).

[[Page 18540]]

Sec. 173.154 Exceptions for Class 8 (corrosive materials).

* * * * *
(e) Reverse logistics. Hazardous materials meeting the definition
of ``reverse logistics'' under Sec. 171.8 of this subchapter and in
compliance with paragraph (b) of this section may be offered for
transport and transported in highway transportation in accordance with
Sec. 173.157.
0
10. In Sec. 173.155, add paragraph (d) to read as follows:

Sec. 173.155 Exceptions for Class 9 (miscellaneous hazardous
materials).

* * * * *
(d) Reverse logistics. Except for Lithium batteries, hazardous
materials meeting the definition of ``reverse logistics'' under Sec.
171.8 of this subchapter and in compliance with paragraph (b) of this
section may be offered for transport and transported in highway
transportation in accordance with Sec. 173.157.
0
11. Add Sec. 173.157 to subpart D to read as follows:

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

(a) Authorized hazardous materials. Hazardous materials may be
offered for transport and transported in highway transportation under
this section when they meet the definition of reverse logistics as
defined under Sec. 171.8 of this subchapter. However, hazardous
materials that meet the definition of a hazardous waste as defined in
Sec. 171.8 of this subchapter are not permitted to be offered for
transport or transported under this section. Hazardous materials
authorized for transport according to a special permit as defined in
Sec. 171.8 of this subchapter must be offered for transportation and
transported as authorized by the special permit.
(b) When offered for transport or transported by non-private
carrier. Hazardous materials must be both authorized for limited
quantity provisions as well as explicitly authorized for reverse
logistics transportation under their applicable limited quantities
section. Except for alternative training provisions authorized under
paragraph (e) of this section, all hazardous materials must otherwise
meet the requirements for a limited quantity shipment.
(c) When offered for transport or transported by private carrier.
Hazardous materials are authorized under paragraph (b) of this section
or are subject to the following limitations:
(1) Division 1.4G materials offered for transport and transported
in accordance with Sec. 173.65 of this subchapter.
(2) When sold in retail facilities; Division 1.4G or 1.4S
fireworks, Division 1.4G ammunition, or Division 1.4G or 1.4S flares.
Shipments offered for transport or transported under this subparagraph
are limited to 30 kg (66 pounds) per package. All explosive materials
subject to an approval must meet the terms of the approval, including
packaging required by the approval.
(3) Equipment powered by flammable liquids or flammable gases.
(i) Flammable liquid-powered equipment. The fuel tank and fuel
lines of equipment powered by an internal combustion engine must be in
the closed position, and all fuel tank caps or closures must be
securely in place.
(ii) Flammable gas-powered equipment. A 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.
(4) Division 2.1 or 2.2 compressed gases weighing less than 66
pounds and sold as retail products. 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.
(5) Materials shipped under this paragraph (c) must also comply
with the segregation requirements as required in Sec. 177.848.
(6) Shipments made under this section are subject to the incident
reporting requirements in Sec. 171.15.
(d) Hazard communication. Hazardous materials offered for
transportation and transported by private carrier in accordance with
paragraph (c) of this section may use the marking ``REVERSE LOGISTICS--
HIGHWAY TRANSPORT ONLY--UNDER 49 CFR 173.157'' as an alternative to the
surface limited quantity marking found under Sec. 172.315(a). Size
marking requirements found in Sec. 172.301(a)(1) apply.
(e) Training (1) Any person preparing a shipment under this section
must have clear instructions on preparing the reverse logistics
shipment to the supplier, manufacturer, or distributor from the retail
store. This includes information to properly classify, package, mark,
offer, and transport. These instructions must be provided by the
supplier, manufacturer, or distributor to ensure the shipment is
correctly prepared for transportation or through training requirements
prescribed under part 172 Subpart H of this subchapter.
(2) Employers who do not provide training under part 172 Subpart H
of this subchapter must:
(i) Identify hazardous materials subject to the provisions of this
section, verify compliance with the appropriate conditions and
limitations, as well as ensure clear instructions from the
manufacturer, supplier, or distributor associated with product's
origination or destination;
(ii) Ensure clear instructions provided are known and accessible to
the employee at the time they are preparing the shipment; and
(iii) Document that employees are familiar with the requirements of
this section as well as the specific return instructions for the
products offered under this section. Documentation must be retained
while the employee is employed and 60-days thereafter. Alternatively,
recordkeeping requirements under part 172 Subpart H may be used.
0
12. In Sec. 173.159, revise paragraphs (e)(3) and (4) and add
paragraph (e)(5) 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, batteries on pallets, must be stacked to not
cause damage to another pallet in transportation;
(4) A carrier may accept shipments of batteries from multiple
locations for the purpose of consolidating shipments of batteries for
recycling; and
(5) Shipments made under this paragraph are subject to the incident
reporting requirements in Sec. 171.15.
* * * * *

0
13. In Sec. 173.306, add paragraph (m) to read as follows:

Sec. 173.306 Limited quantities of compressed gases.

* * * * *
(m) Reverse logistics. Hazardous materials meeting the definition
of ``reverse logistics'' under Sec. 171.8 of this subchapter and in
compliance with this section may be offered for transport and
transported in highway transportation in accordance with Sec. 173.157.
For the purposes of this paragraph a cylinder or aerosol container may
be assumed to meet the definition of a Division 2.1 or 2.2 material,
respectively, even if the exact pressure is unknown.

[[Page 18541]]

Issued in Washington, DC on, March 25, 2016, under the authority
delegated in 49 CFR 1.97.
Marie Therese Dominguez,
Administrator, Pipeline and Hazardous Materials Safety Administration.
[FR Doc. 2016-07199 Filed 3-30-16; 8:45 am]
BILLING CODE 4910-60-P