Currie Industrial Services, LLC — Hazardous Materials Safety Interpretation

Page 1.S. Departmen f Transportation JAN - 4 2007 Washirgton, D.C. 20590 400 Seventh Street, S.W. Pipeline and Administration Hazardous Materials Safety Mr. Allan B. Currie, Jr. Currie Industrial Services, LLC Owner Ref. No. 06-0248 12019 Pink Street Brooklyn, MI 49230 Dear Mr. Currie: This is in response to your October 13, 2006 letter regarding the hazard classification of "Biodiesel" (e.g., "Soybean Methyl Ester"), and "Crude Glycerin," commonly referred to as "Glycerol," under the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180). You also ask whether the registration requirements of the HMR are applicable to any person who offers for transportation or transports these products in commerce. According to your letter, Biodiesel is produced through a chemical process (transesterification) where a feedstock, such as soybean oil, is reacted with an alcohol, such as methanol, in the presence of a catalyst. The alcohol is recovered for reuse, leaving behind two products: (1) fatty acid methyl esters of soybean oil consisting of the following single component methyl esters: C16:0(10%), C18:0(5%), C18:1(23%) C18:2(54%), Crude Glycerin are 321°F- 425 °F and 320 °F, respectively. You further state your review C18:3(8%); and (2) Crude Glycerin. You state that the flash points for Biodiesel and of several Material Safety Data Sheets (MSDS) for each material indicates that neither product contains a hazardous material as defined by the Occupational Safety and. Health Administration (OSHA). You enclosed an MSDS for each material. hazardous material in accordance with Parts 172 and 173 of the HMR, and to determine As required under § 173.22, a shipper is required to properly class and describe the that the packaging or container is an authorized packaging in accordance with Part 173. in your letter, your material does not appear to be subject to the HMR, including the This Office does not perform this function. However, based on the information provided registration requirements specified under § 107.601 107.601 113.22 060248#

Page 2For clarification, a "hazardous material" is defined in § 171.8 of the HMR, and is a substance or material that the Secretary of Transportation has determined is capable of has been designated as hazardous under § 5103 of Federal hazardous materials posing an unreasonable risk to health, safety, and property when transported in commerce, transportation law (49 U.S.C. 5103). I hope this information is helpful. Sincerely, / Cffice of Hazardous Materials Standards Chief, Standards Development#

Page 3Foster $101.612 CURRIE INDUSTRIAL SERVICES, LLC 12019 Pink Street Brooklyn, MI 49230 Regstation 06-0248 Octobet 13, 2006 Mr. Edward T. Mazzullo Director, Office of Hazardous Materials Standards U.S. DOT/PHMSA (PHH-10) Washington, D.C. 20590-0001 400 7th Street S.W. RE: DOT Hazardous Materials Registration Biodiesel Production 49 CFR, Part 107 Applicability Request Dear Mr. Mazzullo: crude glycerin in which U.S. DOT has no apparent nor established opinions. Therefore, I am herein We have recently been confronted with an issue related to transportation of biodiesel and requesting that U.S. DOT provide a written opinion based on the facts set forth below as to whether biodiesel and/or crude glycerin are regulated as defined hazardous materials Background The production of biodiesel (e.g., soybean methyl ester) is made through a chemical process glycerin, which is a valuable byproduct used in the manufacture of soaps and other products. Biodiesel refers to the pure fatty acid methyl ester fuel as opposed to a blend of biodiesel and petroleum diesel fuel, which are typically designated as "BXX", whereby the "XX" denotes the petroleum diesel). percentage of biodiesel contained in the blend (i.e., B20 is comprised of 20% biodiesel and 80% Soyate. Crude Glycerin (C.A.S. 56-81-5) is commonly referred to as simply Glycercil. The review Biodiesel (C.A.S. No.: 67784-80-9) is also referted as B100, Soy Methyl Ester, and Methyl of several material safety data sheets for these products indicates that neither product contains a examined in our review did not define an established DOT shipping name or identification number hazardous material as that term is defined by OSHA. Likewise, the material safety data sheets for these products. The flash point of these materials are 321°-425°F and 320°F respectively.#

Page 4Mr. Mazzullo Cictober 13, 2006 Page 2 49CFR, Part 107.601 Applicability of 49 CFR, Part 107.601, which apply to any person who offer the following materials for In attempting to resolve this issue, we have examined the registration and fee requirements transportation, or transports these materials, in foreign, interstate or intrastate comerce: (1) A highway route-controlled quantity of a Class 7 (radioactive) material, as defined in $ 173.403 of this chapter; (2) More than 25 kg (55 pounds) of a Division 1.1, 1.2, or 1.3 (explosive) material (see $ 173.50 of this chapter) in a motor vehicle, rail car or freight container; (3) More than one L (1.06 quarts) per package of a material extremely toxic by inhalation (ie.," for " hazard zone A," as specified in SS 173.116(a) or 173.133(a) of this chapter). material poisonous by inhalation," as defined in § 171.8 of this chapter, that teets the criteri (4) A shipment of a quantity of hazardous materials in a bulk packaging (see § 171.8 of this chapter) having a capacity equal to or greater than 13,248 L (3,500 gallons) for liquids or gases or more than 13.24 cubic meters (468 cubic feet) for solids; (5) A shipset in other us an a bul packaging pol 2068 5.00 plai) gross wright or mine of required for that class, under the provisions of subpart F of part 172 of this chapter; or (6) Except as provided in paragraph (b) of this section, a quantity of hazardous material that requires placarding, under provisions of subpart E of part 172 of this chapter. With respect to the applicability criteria cited above, the term "hazardous material" is defined as: unreasonable risk to health, safety, and property when transported in commerce, and has designated a substance or material that the Secretary of Transportation has determined is capable oj posing an as hazardous under section 5103 of Federal hazardous materials transportation law (49 U.S.C. 5103). The term includes hazardous substances, hazardous wastes, marine pollutants, elevated temperature materials, materials designated as hazardous in the Hazardous Materials Table (see 49 part 173 of subchapter C of this chapter (emphasis added). CFR 172.101), and materials that meet the defining criteria for hazard classes and aivisions in regard, the term "hazardous substance" is defined as a material, including its mixtures and solutions, The implementing rules also provide clarification to the underlined terms cited above. In that (1) Is listed in the Appendix A to S 172.101 of this subchapter; (2) Is in a quantity, in one package, which equals or exceeds the reportable quantity (R) 'isted in the (3) When in a mixture or solution- Appendix A to $ 172.101 of this subchapter; and (i) For radionuclides, conforms to paragraph 7 of the Appendix A to S 172.101. (i) For otber than radionuclides, is in a concentration by weight which equals or exceeds the concentration corresponding to the RQ of the material, as shown in the following table: RQ pounds (kilograms) Concentration by weight Percent PPM 5000(2270) 10 100,000#

Page 5Nir: Mazzullo October 13, 2006 Page 3 1000(454) 20,000 10(4.54) 100(45.4) 10.02 2,000 200 [1 (0.454) 10.002 20 The term does not include petroleum, including crude oil or any fraction thereof which is not otherurse specifically listed r designated as a hazardous substance in Appendix A to S 172.101 of this subchapter, and the term does noi nilude natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natura ga: and such synthetic gas). Appendix A to § 172.101 _lists materials and their corresponding reportable quantities (RQ's) that are listed or designated as " hazardous substances" under section 101(14) of the Comprehensive U.S.C. 9601 et seq). Appendix A is divided into two tables entitled " TABLE 1 HAZARDOUS Environmental Response, Compensation, and Liability Act, 42 U.S.C. 9601(14) (CERCLA; 42 SUBSTANCES OTHER THAN RADIONUCLIDES" and " TABLE 2-RADIONUCLIDES." A naterial listed in Appendix A is regulated as a hazardous material and a hazardous substance unde his subchapter if it meets the definition of a hazardous substance in $ 171.8 of this subchapte: Hazardous waste, is defined as any material that is subject to the Hazardous Waste Manifest Requirements ofth: U.S. Environmental Protection Agency specified in 40 CFR part 262. Appendix B to $ 172.101 lists potential marine pollutants as defined in $ 171.8. Elevated temperature material, is defined as a material which, when offered for transportation or (212°F); or (2) is in a liquid phase with a flash point at or above 37.8 °C" (100°F) tha: is intentionally transported in a bulk packaging: (1) is in a liquid phase and at a temperature at or above 100°C heated and offered for transportation or transported at or above its flash point; or (3) is in a solid phase and at a temperature at or above 240°C (464°F). 49 CFR, Part 172 contains the DOT hazardous materials table referred to in the definition. The following table, taken from Part 173.2, lists the hazardous materials classes and index to hazard class, which contain the definitions for classifying a material as a regulated "hazardous material". Class Division No. None No. (if any) Name of Class or Division 49 CFR Forbidden materials 173.21 Reference None 1.1 Forbidden explosives 173.54 Explosives (with a mass explosion hazard) 173.50 1.3 1.2 Explosives (with a projection hazard) 173.50 1.4 Explosives (with no significant blast hazard Explosives (with predominately a tire hazard 173.50 173.50 1.5 Very insensitive explosives; blasting agents 173.50 1.6 2 2.1 Extremely insensitive detonating substances 173.50 173.1157#

Page 6Mr. Mazzullo Oriober 13, 2006 Page 4 Class Division No. No. 2 (if any) Name of Class or Division 49 CFR Reference 2.2 3 2 2.3 Non-flammable compressed gas 173.115 lammable and combustible liqui 173.115 4 4.1 lammable solid 173.120 173.124 4 4.2 4 4.3 173.124 173.124 5 173.127 5.2 a a u 6.1 173.128 173.132 6.2 nfectious substance (Etiologic ager oisonous materia 173.134 8 Corrosive materia adioactive materia 173.136 173.403 173.140 None Other regulated material: ORM-D 173.114 Regulatory Discussion and Request for Opinion unmarizes our preliminary opinion regarding the app Because of the onerous nature of ding pulpic with or prepared are at ched table that Materials Program. If you have any questions or need additional information, please call. Sincerely, Alunch Owner Allan (Dusty) B. Currie Jr. (517) 740-2991 Attachments: Material Safety Data Sheet for Biodiesel (Biodiesel Industries, Inc.) Material Safety Data Sheet for Crude Glycerin (Biodiesel Industries, Inc,)#

Page 7Mr. Mazzullo not more than 500 mg/kg. subpart F of part 172. 173 uf subchapter C. Is a hazardous waste. (explosive) material (S 173.50) material, as defined in § 173.403. Is an elevated temperature material. cubic meters (468 cubic feet) for solids; Is listed in the Hazardous Materials Table. > Is a marine pollutant listed in Appendix B. Is a hazardous substance listed in Appendix A. Meets the definition of a hazardous material defined below. hazardous material that requires placarding, under provisions of required for that clas, under the provisions of subpart ofpart for which placarding of a vehicle, rail car, or freight container is Is a shipment in other than a bulk packaging of 2,268 kg (5,000 13,248 L (3,500 gallons) for liquids or gases or more than 13.24 Is a shipment of a quantity of hazardous materials in a bulk hazard zone A," as specified in SS 173.116(a) or 173.133(a) packaging (see S 171.8.) having a capacity equal to or greater than inhalation," as defined in § 171.8, that meets the criteria for " Is more than 25 kg (55 pounds) of a Division 1.1, 1.2, or 1.3 Class 6 Poisonous Material with an LD50 for acute oral toxicity of Clov 3 Com busible Liquid that has a fash point above 141° Fanc • Meets the defining criteria of a hazard class and division in Part Except as provided in paragraph (b) of this section, is a quantity of pounds) gross weight or more of one class of hazardous materials Is a highway route-controlled quantity of a Class 7 (radioactive) Regulatory Reference No (321°F) No No No No No No material hazardous not a material hazardous not a material hazardous not a No No No Biodiesel No (320°F) No No No No No No material hazardous not a material hazardous not a material hazardous not a No No No Glycerin Crude Not list in Appendix A. hazardous material. radioactive materials. toxicity values of 17,400 and 12,600 mg/kg. have flash points of 321°F and 320°F. Not ised and ending perin are ner wastes. the definition of a hazardous material. Biodiesel and crude glycerin have published oral Biodiesel and crude glycerin are loaded at 120°F. Not listed in the Hazardous Materials Table. With respect to Class 3, biodiesel and crude glycerin Biodiesel and crude glycerin do not appear to meet neither material appears to meet the definition of a neither material appears to meet the definition of a containers with a capacity greater than 3,500 gallons, ofered for shipmentry truck and ail normally crude glycerin would be extremely toxic by inhalation. Alive mate docs not indicate that biodiese or Biodiesel and Crude Glycerin are not defined as Biodiesel and Crude Glycerin are not defined as Cumment Page 5#