Source: https://www.federalregister.gov/documents/2012/07/05/2012-16177/hazardous-materials-reverse-logistics-rrr
Timestamp: 2018-07-21 06:58:43
Document Index: 690922713

Matched Legal Cases: ['§\u2009171', '§\u2009173', 'art 173', '§\u2009171', '§\u2009173', '§\u2009173', '§\u2009173', '§\u2009177']

Federal Register :: Hazardous Materials; Reverse Logistics (RRR)
A Proposed Rule by the Pipeline and Hazardous Materials Safety Administration on 07/05/2012
39662-39666 (5 pages)
2012-16177
https://www.federalregister.gov/d/2012-16177 https://www.federalregister.gov/d/2012-16177
PHMSA is publishing this ANPRM to identify ways to reduce the regulatory burden for persons who ship consumer products containing hazardous materials in the “reverse logistics” supply chain. Reverse logistics is the process that is initiated when a consumer product goes backwards in the distribution chain. It may be initiated by the consumer, the retailer, or anyone else in the chain. Therefore, the process may involve consumers, retailers, manufacturers, and even disposal facilities. Following this ANPRM, PHMSA anticipates publishing an NPRM that will propose to simplify the regulations for reverse logistics shipments and provide avenue means for regulatory compliance that maintains transportation safety. This action is part of DOT's retrospective plan under EO 13563 completed in August 2011 DOT's plan is available at: http://www.dot.gov/​open/​docs/​dot-final-rrr-plan-08-23-2011.pdf. To fully engage the broad spectrum of stakeholders affected by reverse logistics, this ANPRM solicits comments and input on several questions in the context of reverse logistics. Any comments, data, and information received will be used to evaluate and shape the proposals in the NPRM.
You may submit comments identified by the docket number PHMSA-2011-0143 (HM-253) by any of the following methods:
Privacy Act: Anyone is able to search the electronic form of any written communications and comments received into any of our dockets by the name of the individual submitting the document (or signing the document, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the Federal Register published on April 11, 2000 [45 FR 19477] or you may visit http://www.regulations.gov.
Steven Andrews, Office of Hazardous Materials Standards, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, 1200 New Jersey Avenue SE., Washington, DC 20590-0001, telephone (202) 366-8553.
In general, “reverse logistics” pertains to the safe return of goods from the marketplace to the original vendor, manufacturer, or supplier. Reverse logistics of hazardous materials affects many industries including high-tech, retail, medical, pharmaceutical, automotive, and aerospace. In effect, reverse logistics is the supply chain in reverse. PHMSA is publishing this ANPRM to identify possible ways to reduce the regulatory burden on retail outlets that ship consumer products containing hazardous materials in the “reverse logistics” supply chain. PHMSA is looking to evaluate the shipment of “reverse logistics” by Start Printed Page 39663highway, rail, and vessel. In addition, PHMSA received two petitions from industry regarding the shipping requirements for “reverse logistics” shipments. These petitions are outlined as follows:
PHMSA received a petition from the Council on the Safe Transportation of Hazardous Articles Inc. (COSTHA) outlining issues related to hazardous materials and “reverse logistics.” In its petition for rulemaking (P-1528), COSTHA proposed that the HMR include a definition for “reverse logistics” in § 171.8 and add a new section, § 173.157 to outline the general requirements and exceptions for hazardous materials shipped in the context of “reverse logistics.” In its petition COSTHA identified an unquantifiable exposure to risk presented through undeclared hazmat from retail outlets. This includes retail operations that unknowingly return articles containing hazardous materials to the product manufacturing that are potentially compromised. The purpose of this ANPRM is to gather data on how these hazardous materials are shipped with respect to “reverse logistics.”
COSTHA noted that hazardous materials commonly shipped from distribution centers to various retail outlets are often shipped under the ORM-D exception. PHMSA notes that the ORM-D exception allows for a hazardous material, which is a limited quantity and which meets the consumer commodity definition, to be reclassified as an ORM-D and assigned a consumer commodity shipping name. However, in a final rule issued under docket HM-215K (76 FR 3308, January 19, 2011), PHMSA began phasing out the ORM-D hazard class. Based on the final rule, the phase-out of the ORM-D system will be completed on December 31, 2014. Those materials previously shipped under the ORM-D hazard class may be able to be shipped as consumer commodities under the appropriate limited quantities exception in part 173.
COSTHA has indicated that a significant volume of these hazardous materials are returned to the retail outlet by the customer. PHMSA believes based on its enforcement experience that significant quantities of these returned hazardous materials may be in damaged packaging or even leaking prior to their shipment back to the return center. If this is the case, the materials must be repackaged and shipped as fully regulated hazardous materials under the HMR. The HMR generally defines a “hazmat employee” as a person employed on a full-time, part time, or temporary basis by a hazmat employer and who in the course of such full time, part time or temporary employment directly affects hazardous materials transportation safety. However, PHMSA recognizes that most retail employees or other related employees are not readily identifiable as “hazmat employees” as defined by § 171.8 of the HMR. Consequently this results in employees that often lack sufficient training and qualifications to classify, package, mark, label, and ship hazardous materials. This may result in unsafe shipping practices (e.g., hazardous materials shipped in containers that are not designed for the safe transportation of hazardous materials.) These occurrences are often exacerbated by hazardous materials being improperly segregated in packages. COSTHA also noted that equipment powered by internal combustion engines may be returned to retail outlets after being used and may contain residual fuel, posing a hazardous materials risk.
PHMSA received a petition (P-1561) from the Battery Council International (Battery Council). In its petition, the Battery Council requests that PHMSA allow the shipment of used batteries from multiple shippers on a single transport vehicle under the exception provided in § 173.159(e). The Battery Council notes in their petition that currently the exception in § 173.159(e) does not clearly allow for shipment of used batteries from multiple shippers for the purposes of recycling. The petition also notes that, when this regulation was written in 1969, it was not common practice for battery to be recycled using multiple shippers. PHMSA believes that the collection of these used batteries for return, disposal, or recycling falls within the realm of “reverse logistics.” Currently § 173.159(e)(4) prevents a battery recycler from picking up shipments of used batteries from multiple locations. In looking at incident history, PHMSA has not identified any significant incidents involving the shipment of wet lead acid batteries. PHMSA believes that modifying this section to allow battery recyclers to pick up wet lead acid batteries from multiple locations will likely reduce the number of battery shipments on the highway and thus reduce the likelihood of an accident involving hazmat.
Under the current HMR, consumer products that are no longer suitable for retail sale are considered fully regulated. This presents a problem to retail outlets in that many may not have the necessary training or resources to handle fully regulated hazardous materials. PHMSA is looking to identify ways to potentially reduce the regulatory burden associated with the return of these hazardous materials in the “reverse logistics” supply chain, while at the same time ensuring their safe transportation.
The rapidly expanding market for consumer electronics is another topic of interest with respect to the “reverse logistics” supply chain. As emerging technologies come online, there are an ever increasing number of batteries that come along with consumer devices. As the batteries in these devices become unusable, PHSMA expects to see large quantities of batteries being returned to retail outlets. PHMSA seeks comment on this assumption. This ANPRM is seeking comment on how the retail industry should handle the recycling or disposal of these batteries for use in consumer electronics.Start Printed Page 39664
PHMSA believes that its enforcement data show that “reverse logistics” issues involving hazardous materials will continue to rise with the increased consumption of goods in a growing economy. PHMSA believes it could be beneficial to identify those areas where PHMSA and the regulated community can work together to facilitate the movement of hazardous materials in the “reverse logistics” supply chain. This could include identifying whether or not there are actually safety concerns involving “reverse logistics” for the transport of hazardous materials as well as identifying potential solutions moving forward.
PHMSA invites comments on the data and information contained in this section. How can we work together to better facilitate the movement of hazardous materials in the “reverse logistics” supply chain? What data is available regarding the current and anticipated future number of reverse logistic shipments for hazardous materials?
As previously noted, the purpose of this ANPRM is to invite comments on “reverse logistics.” PHSMA is considering a definition for “reverse logistics” and a possible new section in the HMR that will clearly identify the regulatory responsibilities of the shipper. To assist PHMSA in getting valuable data and information from commenters, we have compiled questions pertaining to the “reverse logistics” process and welcome input from all interested parties. Below we outline the key issues identified above:
PHMSA is considering a regulatory definition for “reverse logistics.” The definition would likely be added to 49 CFR 171.8. It would clearly define the term “reverse logistics.” Generally, “reverse logistics” is thought of as the flow of surplus or unwanted material, goods, or equipment back to the firm, through its logistics chain, for reuse, recycling, or disposal. By defining “reverse logistics” in the HMR, PHMSA will identify how it can assist the regulated community in ensuring the safe and swift movement of these materials in the “reverse logistics” supply chain.
PHMSA is considering adding a section outlining the shippers' responsibilities with respect to “reverse logistics.” PHMSA believes a section outlining the regulations for materials meeting the definition of “reverse logistics” should address:
1. Classification of materials under the definition of “reverse logistics”;
2. Training requirements for employees who handle materials under “reverse logistics;” and
3. Packaging approved for the shipment of hazardous materials under “reverse logistics.”
PHMSA is considering regulatory relief for “reverse logistics.” We have developed the following questions to solicit comments on the key issues, please provide sources for your data when available:
2. What is the volume of returns? Is there a “rule-of-thumb” metric—e.g., 10% of retail sales are returned?
6. Are hazardous materials being properly segregated as required by § 177.843 of the HMR when being shipped from retail outlets to their distribution centers? How are they being segregated?
7. Should certain hazard classes/divisions be excluded when considering regulations for “reverse logistics?” If so, why?
8. Should PHMSA define specification packages for materials shipped under “reverse logistics”? If so, why?
11. What role(s) do 3rd party logistics providers [1] play in the reverse logistics process, if any?
13. How does the regulated community currently handle hazardous materials that are imported and must then be shipped back in the “reverse logistics” supply chain?
15. Should PHMSA define “reverse logistics”? If so, to what extent should PHMSA define types of shipments that would receive a relaxation under the HRM for “reverse logistics” shipments?
Executive Orders 12866 (“Regulatory Planning and Review”) and 13563 (“Improving Regulation and Regulatory Review”) 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.”
Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has been designated a “significant regulatory action,” although not economically significant, under section 3(f) of Executive Order 12866. Accordingly, the rule has been reviewed by the Office of Management and Budget (OMB). The ANPRM is considered a significant regulatory action under the Regulatory Policies and Procedures order issued by the Department of Transportation [44 FR 11034].
Executive PHMSA invites comments on this section. How should we approach the “reverse logistics” issue to ensure that we regulate in the “most cost-effective manner?” Please provide any cost or benefit figures to support that approach along with any sources that were used to obtain the information.
Under the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.), we must consider whether a rulemaking would have a significant economic impact on a substantial number of small entities. “Small entities” include small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations under 50,000. If you believe that revisions to the HMR relative to reverse logistics would have a significant economic impact on a substantial number of small entities, please submit a comment to explain how and to what extent your business or organization could be affected and whether there are alternative approaches to this regulations the agency should consider that would minimize any significant impact on small business while still meeting the agency's statutory objectives
Anyone is able to search the electronic form of any written communications and comments received into any of our dockets by the name of the individual submitting the document (or signing the document, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Start Printed Page 39666Statement in the Federal Register published on April 11, 2000 (65 FR 19477) or you may visit http://www.dot.gov/​privacy.html.
1. The Reverse Logistics Association (RLA) defines 3rd party logistics providers as entities who “provide services for OEMs, ODMs and Branded Companies. Some of these services include, but are not limited to: Repair, customer service, parts management, end-of-life manufacturing, returns processing order fulfillment, help desk, and many aspects of field service repair.”
[FR Doc. 2012-16177 Filed 7-3-12; 8:45 am]