Document ID: PHMSA-2011-0143-0079
Agency: phmsa
Document Type: Rule
Title: Hazardous Materials: Reverse Logistics
Posted Date: 2016-03-31T04:00Z

[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.
---------------------------------------------------------------------------

    \6\ See http://www.whitehouse.gov/the-press-office/2011/01/18/improving-regulation-and-regulatory-review-executive-order.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \7\ See http://www.gpo.gov/fdsys/pkg/FR-2012-05-14/pdf/2012-11798.pdf.
---------------------------------------------------------------------------

    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).

* * * * *
    (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
9. In Sec.  173.154, add paragraph (e) to read as follows:

[[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