Currie Associates, Inc. — Hazardous Materials Safety Interpretation

Page 1U.S. Department 1200 New Jersey Avenue SE of Transportation Washington, DC 20590 Pipeline and Hazardous Materials Safety Administration MAR 1 3 2015 Mr. Tom Ferguson Director of Technical Services Currie Associates, Inc. 10 Hunter Brook Lane Queensbury, NY 12804 Reference No. 14-0167 Dear Mr. Ferguson: This is in response to your September 11, 2014 inquiry requesting clarification of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) applicable to the classification of a Aqueous hybrid ion rechargeable battery. Specifically, you request confirmation that the Aqueous hybrid ion rechargeable battery described in your letter does not meet the definition of a lithium ion battery and suggest that the requirements of Special Provision 130, applicable to "Batteries, dry, sealed, n.o.s." may be more appropriate. In accordance with § 173.22, it is the shipper's responsibility to properly classify a hazardous material. This Office generally does not perform this function. However, based on the information you provided relevant to the battery's components and electrolyte, the battery does appear to meet the definition of a lithium ion cell or battery. In section 38.3 of the UN Manual of Tests and Criteria a lithium ion cell or battery is defined as a "rechargeable electrochemical cell or battery in which the positive and negative electrodes are both intercalation compounds (intercalated lithium exists in an ionic or quasi-atomic form with the lattice of the electrode material)..." The battery under consideration uses aqueous electrolyte with a lithium-containing cathode as in the case of "lithium ion cells or batteries," and works on the principle of intercalating lithium ions as well as sodium ions. For these types of batteries, hazards include inherent electrical energy and rise of temperature should short-circuiting occur. In addition, because of the low operating voltages, application of any high voltage for recharging will result in electrolysis of water which generates flammable hydrogen and oxygen. These hazards must be addressed in the classification of aqueous electrolyte based lithium ion cells and batteries. Special provision 130 applies to dry batteries not specifically covered by another entry in the §172.101 Hazardous Materials Table (HMT). Some similarities in hazard exist between dry batteries and aqueous batteries in terms of electrical energy and short#

Page 2circuiting potential; however, in our opinion the Aqueous hybrid ion rechargeable battery described in your letter meets the definition of a lithium ion battery and is covered by an entry in the HMT, and therefore would not be eligible for transport in accordance with special provision 130, unless under the terms of a Special Permit. I hope this satisfies your request. Sincerely, Duane A. PA Duane A. Pfund International Standards Coordinator Standards and Rulemaking Division#

Page 3Whener. 171116) 173-185 Goodall, Shante CTR (PHMSA) 14-016 Batting From: Betts, Charles (PHMSA) Sent: To: Friday, September 12, 2014 6:30 AM Co: Dodd, Alice (PHMSA); Goodall, Shante CTR (PHMSA) Benedict, Robert (PHMSA); Kelley, Shane (PHMSA); Pfund, Duane (PHMSA); El-Sibaie, Subject: Magdy (PHMSA) Attachments: SDS.pdf; Attachment 3 - UL1973 Test Results.pdf; Attachment 4 - Abuse Testing Results.pdf; Attachment 5 - Flame Propogation Testing Results.pdf Please log and assign for response From: Currie Associates Tom Ferguson [mailto:tom@currieassociates.coml To: El-Sibaie, Magdy (PHMSA) Sent: Thursday, September 11, 2014 05:19 PM Eastern Standard Time chris@currieassociates.com <chris@currieassociates.com> Cc: Betts, Charles (PHMSA); Kelley, Shane (PHMSA); Michael Eshoo <meshoo@aquion-energy.com>; Subject: Request for Letter of Interpretation Regarding Hybrid Ion Battery Dr. El-Sibaie, Please find attached a request for a letter of interpretation regarding Aquion's Aqueous Hybrid lon Battery. We have included product designs and relevant testing reports which describe the product and identify the minimal risk of this. technology in transport. Our client plans to ship the battery with all safety precautions necessary, however, the technology does not clearly fit into any existing descriptions. We request that PHMSA consider the information provided and suggest guidance on how the battery should be prepared for transport. Aquion and Currie Associates are available for comment should your office have any questions, either electronically, by teleconference, or in person. Please do not hesitate to contact us for any reason. Thank you for your consideration of this issue. Best Regards, Tom Ferguson, PG, CHMM, DGSA Director of Technical Services Currie Associates, Inc. 10 Hunter Brook Lane Queensbury, NY 12804 O: 770-486-5603 F: 518-792-7781 our members and has been answered to the best of our ability based on the information provided to us. We do not guarantee the This information is intended to provide interpretative and authoritative information in regard to the subject matter covered as a service to provide will guarantee compliance with any legal or regulatory requirements. Our statements or opinions do not convey legal accuracy or completeness of any such interpretation or information, however, nor do we warrant that compliance with any advice we interpretation and govemment authorities or legal counsel should be contacted for such a response. 1#

Page 4AQUION Pittsburgh, PA 15201 32 39' Street ENERGY 412.904.6400 Aqueous Hybrid Ion Rechargeable Battery SDS SF-FM-00021 Rev Date: 8/5/2014 Aquion Energy Inc. Aqueous Hybrid Ion Rechargeable Battery The batteries referenced herein are exempt articles and are not subject to the OSHA Hazard Communication Standard requirement. This sheet is provided as a service to our customers and presumes normal conditions of use of the batteries. Safety Data Sheets (SDS) are a sub-requirement of the Occupational Safety and Health Administration (OSHA) Hazard Communication Standard, 29 CFR Subpart 1910.1200. This Hazard Communication Standard does not apply to various subcategories including anything defined by OSHA as an "article". OSHA has defined "article" as a manufactured item other than a fluid or particle; (i) which is formed to a specific shape or design during manufacture; (i) which has end use function(s) dependent in whole or in part upon its shape or design during end use; and (iii) which under normal conditions of use does not release more than very small quantities, e.g. minute or trace amounts of a hazardous chemical, and does not pose a physical hazard or health risk to employees. Because all of our batteries are defined as "articles", they are exempt from the requirements of the Hazard Communication Standard; hence an SDS is not required. SECTION 1: PRODUCT AND COMPANY IDENTIFICATION SYNONYMS PRODUCT NAME Aqueous Hybrid lon Rechargeable Battery Not known RELEVANT USE Electrical CHEMICAL FAMILY MANUFACTURER Mixture Aquion Energy, Inc. ADDRESS 32 39th Street EMERGENCY PHONE | 1-412-904-6400 Pittsburgh, PA 15206 SECTION 2: HAZARDS IDENTIFICATION GLOBALLY HARMONIZED SYSTEM OF CLASSIFICATION AND LABELING (GHS) OSHA HAZARDS TARGET ORGANS Respiratory System and the Cardiovascular System SIGNAL WORDS Warning PICTOGRAMS GHS CLASSIFICATION Not Classified GHS LABEL ELEMENTS HAZARD STATEMENTS Exclamation Mark H316 Causes Mild Skin Irritation Page 1 of 7#

Page 5AQUION Pittsburgh, PA 15201 32 39* Street ENERGY 412.904.6400 R.3202000 Aqueous Hybrid Ion Rechargeable Battery SDS SF-FM-00021 B Rev Date: 8/5/2014 PRECAUTIONARY STATEMENTS HANDLING P261 P280 Avoid breathing dust RESPONSE Wear protective gloves/protective clothing/eye protection P304+340 IF INHALED: Remove victim to fresh air and keep at rest in a position P305+P351+P338 comfortable for breathing. IF IN EYES; Rinse cautiously with water for several minutes. Remove P332+313 If skin irritation occurs: Get medical advice/attention contact lenses if present and easy to do so. Continue rinsing. STORAGE P402 P404 Store in a dry place Store in a closed container CHRONIC HEALTH HAZARDS None known MEDICAL CONDITIONS GENERALLY AGGRAVATED BY EXPOSURE None known CARCINOGENICITY OSHA Not known NTP ACGIH Not known Not known IARC Not known SECTION 3: COMPOSITION /INFORMATION ON INGREDIENTS INGREDIENT Water COMMON NAME 7532-18-5 CAS NUMBER % WT Water 30-35 Sodium Sulfate Sodium Sulfate 7757-82-6 2-5 Activated Carbon Sodium Lithium Activated Carbon 7440-44-0 5-8 Lithium Manganese Dioxide Dititanium Triphosphate N/A N/A 20-25 LMO 39457-42-6 25-30 Graphite Polypropylene Graphite Polypropylene 7782-42-5 PTFE 9002-84-0 9003-07-0 Not applicable 2-7 0.5-2 Acrylic Acrylic Mixture 0.5-2 Stainless Steel Stainless Steel N/A 8-10 SECTION 4: FIRST AID MEASURES EYES Contact with the contents of an opened battery can cause irritation. If eye contact with contents of an open cell occurs, immediately flush the contaminated eye(s) with lukewarm, gently flowing water for at least 30 minutes while holding the eyelids open. If irritation persists, transport the victim to an emergency care facility. If necessary, continue flushing during transport to emergency care facility. Contact with the contents of an opened battery may cause irritation. If skin contact with contents of an open cell occurs, as quickly as possible remove contaminated clothing, shoes and leather goods. Immediately flush Page 2 of 7#

Page 6AQUION Pittsburgh, PA 15201 32 39t^ Street ENERGY 30L10n2088p093 412.904.6400 Aqueous Hybrid lon Rechargeable Battery SDS SF-FM-00021 B Rev Date: 8/5/2014 with lukewarm, gently flowing water for at least 30 minutes. If irritation persists, seek medical attention. INGESTION Give one or two glasses of water to drink to any victim who may have ingested battery materials. Seek medical center immediately. Refer to oral ingestion limits based on LD50 values given below for individual chemical attention if gastrointestinal symptoms develop. If ingestion of a large amount does occur, call a poison control INHALATION components. products, remove the affected victim from exposure. Provide artificial respiration if necessary and seek medical Exposure to combustion products can be harmful. In case of adverse exposure to vapors or combustion attention. Inhalation of dust generated from an opened/damaged battery can result in irritation in the throat. Move to fresh air and get medical attention if discomfort continues. GENERAL Contaminated clothing should be removed. SECTION 5: FIRE-FIGHTING MEASURES FLAMMABLE LIMITS IN AIR, (% BY VOLUME) UPPER Not known LOWER FLASH POINT Not known Not applicable Fahrenheit AUTOIGNITION TEMPERATURE Not known Celsius Not known NFPA HAZARD CLASSIFICATION HEALTH 1 FLAMMABILITY 0 REACTIVITY OTHER Not known GENERAL HAZARD battery case ruptures. Combustion products include carbon monoxide and carbon dioxide. The case itself may The battery case may melt when heated above 120°C. The electrode materials may ignite in the event the burn above 250°C and toxic fumes may be generated as the case burns. EXTINGUISHING MEDIA SPECIAL FIRE FIGHTING PROCEDURES Water or other suitable extinguishing may be used to put out a fire. If possible, remove the battery from firefighting area. If heated above 120°C, battery case may melt exposing flammable electrode materials to the fire. However, there is no risk of explosion. Use NIOSH/MSHA approved full-face self-contained breathing apparatus (SCBA) with full protective gear. UNUSUAL FIRE AND EXPLOSION HAZARDS When burned, hazardous products of combustion including carbon oxides can occur. Not known to be combustible but if dust is airborne keep a safe distance from dust cloud if ignition is possible. HAZARDOUS DECOMPOSITION PRODUCTS Not known Page 3 of 7#

Page 7AQUION Pittsburgh, PA 15201 32 39" Street 412.904.6400 204014082: 030: Aqueous Hybrid Ion Rechargeable Battery SDS SF-FM-00021 B Rev Date: 8/5/2014 SECTION 6: ACCIDENTAL RELEASE MEASURES ACCIDENTAL RELEASE MEASURES ON LAND Do not touch damaged containers or spilled material unless wearing appropriate protective clothing. Use a vacuum equipped with a HEPA filter and place in containers to properly dispose. Avoid raising dust. Avoid inhalation of dust and contact with skin and eyes. Collect the spilled material in containers and prevent them IN WATER from contaminating water. If possible, remove from water and call local fire/police department. Not known CONTAINMENT/CLEANUP SECTION 7: HANDLING AND STORAGE HANDLING temperatures to below 0°C or above 60 °C. No special protective clothing required for handling individual battery modules. Do not expose operating STORAGE Store in a cool, dry place. OTHER PRECAUTIONS Not known SECTION 8: EXPOSURE CONTROLS/PERSONAL PROTECTION ENGINEERING CONTROLS Keep away from heat and open flame. Store in a cool, dry place. Airborne exposures to hazardous substances are not expected when product is used for its intended purpose. VENTILATION Use in well-ventilated area. RESPIRATORY PROTECTION Not required during normal operations. SCBA required in the event of a fire. EYE PROTECTION SKIN PROTECTION Not required beyond safety practices of employer. Not required for handling of cells. FOOT PROTECTION OTHER PROTECTIVE CLOTHING OR EQUIPMENT Steel-toed shoes recommended for large container handling. WORK HYGIENE PRACTICES Have a safety shower and eye-wash fountain readily available in the immediate work area. Wash all exposed areas with soap and water. CONCENTRATION PPM OSHA PEL-TWA OSHA PEL STEL Not known mg/m3 Not known OSHA PEL CEILING Not known Not known Not known Not known ACGIH TLV-TWA Not known Not known ACGIH TLV STEL ACGIH TV CEILING Not known Not known Not known Not known Page 4 of 7#

Page 8AQUION Pittsburgh, PA 15201 32 39h Street ENERGY 412.904.6400 Aqueous Hybrid Ion Rechargeable Battery SDS SF-FM-00021_B Rev Date: 8/5/2014 SECTION 9: PHYSICAL AND CHEMICAL PROPERTIES ODOR APPEARANCE Solid Object ODOR THRESHOLD No characteristic odor Not applicable PHYSICAL STATE 7 MELTING/FREEZING POINT Solid BOILING POINT Not known FLASH POINT Not known EVAPORATION RATE Not known Not known FLAMMABILITY (solid/gas) UPPER/LOWER Not known FLAMMABILITY/EXPLOSIVELIMITS Not known VAPOR PRESSURE VAPOR DENSITY Not known DENSITY Not known SOLUBILITY IN WATER Not known AUTO-IGNITION TEMPERATURE Insoluble DECOMPOSITION TEMPERATURE Not known VISCOSITY Not known MOLECULAR WEIGHT Not known Not known SECTION 10: STABILITY AND REACTIVITY REACTIVITY Not known CHEMICAL STABILITY Stable at standard temperature and pressure. Not known POSSIBILITY OF HAZARDOUS REACTIONS CONDITIONS TO AVOID (STABILITY) Avoid exposing the cell to fire or temperatures above 80°C. Do not disassemble, crush, short or install with incorrect polarity. Avoid mechanical or electrical abuse. HAZARDOUS DECOMPOSITION OR BY-PRODUCTS release toxic fumes if burned or exposed to fire. No hazardous decomposition materials are generated during normal operating conditions. This material may Will not occur HAZARDOUS POLYMERIZATION CONDITIONS TO AVOID (POLYMERIZATION) Avoid exposure to heat and open flame. Do not puncture, crush or incinerate. SECTION 11: TOXICOLOGICAL INFORMATION ROUTES OF EXPOSURE SKIN CONTACT The chemicals in this battery are contained in a sealed container. EYE CONTACT Under normal conditions of use, no known risk of exposure exists via inhalation, ingestion, skin and eyes. Risk of exposure occurs only if the INHALATION cell is thermally or electrically abused to the point of compromising the Page 5 of 7#

Page 9AQUION Pittsburgh, PA 15201 32 39im Street ENERGY 1023000VCM 412.904.6400 Aqueous Hybrid lon Rechargeable Battery SDS SF-FM-00021 Rev Date: 8/5/2014 INGESTION enclosure and/or initiating a fire. If this occurs, exposure to the SYMPTOMS (PHYSICAL, CHEMICAL, AND TOXICOLOGICAL CHARACTERISTICS) combustion products may happen by inhalation of the vapors. Not known EFFECTS (DELAYED/IMMEDIATE & CHRONIC EFFECTS OF SHORT/LONG TERM EXPOSURE) None known NUMERICAL MEASURES OF TOCIXITY CHEMICAL NAME Sodium Sulfate LETHAL DOSE (LD50, oral, rat) mg/kg Activated Carbon 5989 10000 Sodium Lithium Dititanium Triphosphate Unknown Manganese Dioxide 3478 Polypropylene 2000-10000 Lithium Carbonate 525 Graphite 2500 SECTION 12: ECOLOGICAL INFORMATION ECOTOXICITY environment. The product is not classified as environmentally hazardous. The degradability of the product has Under normal conditions, these materials are contained and pose no known risk to persons or the surrounding not been stated. No data available on bioaccumulation.The batteries are not intended to be released into water PERSISTENCE AND DEGRADABILITY or on land but should be disposed or recycled according to local regulations. The degradability of this material has not been stated BIOACCUMULATIVE POTENTIAL Not known MOBILITY IN THE SOIL Not known OTHER ADVERSE EFFECTS Not known SECTION 13: DISPOSAL CONSIDERATIONS WASTE DISPOSAL METHOD Do not dump into any sewers, on the ground or into any body of water. Store material for disposal as indicated in Section 8 - Handling and Storage. Dispose of this material and its container to hazardous or special waste collection point. Do not allow this material to drain into sewers/water supplies. Dispose of according to all federal, state, and local regulations. RCRA HAZARD CLASS Not listed SECTION 14: TRANSPORT INFORMATION In general, all batteries in all forms of transportation (ground, air, or ocean) must be packaged in a safe and packaged in a manner that prevents short circuits and be contained in "strong outer packaging" that prevents responsible manner. Regulatory concerns from all agencies for safe packaging require that batteries be spillage of contents. UN NUMBER AND SHIPPING NAME Page 6 of 7#

Page 10AQUION Pittsburgh, PA 15201 32 39th Stree: ENERGY 20A0028/0100 412.904.6400 Aqueous Hybrid lon Rechargeable Battery SDS SF-FM-00021_B Rev Date: 8/5/2014 Not known TRANSPORT HAZARD CLASS(ES) Not known U.S. DEPARTMENT OF TRANSPORTATION The sodium ion battery is not regulated by the DOT as a dangerous good. The individual constituents in the WATER TRANSPORTATION battery are not regulated by DOT. Not known AIR TRANSPORTATION Not known OTHER AGENCIES None SECTION 15: REGULATORY INFORMATION U.S. FEDERAL REGULATIONS OSHA Hazard Communication Standard, 29 CFR 1910.1200 Manganese compounds are listed as hazardous materials. However, in an enclosed battery under normal conditions of use, no known risk of exposure exists. TSCA Section 8b - Inventory Status All chemicals comprising this product are either exempt or listed on the TSCA Inventory. TSCA Section 12b - Export Notification If the finished product contains chemicals subject to TSCA Section 12b export notification, they are listed below: Lithium Manganese Oxide (CAS# 12057-17-9) -- 1.0% One-Time Export Notification only As an article, this battery and its contents are not subject to the requirements of the Emergency Planning and SARA/TITLE 3 III (SUPERFUND AMENDMENTS AND REAUTHORIZATION ACT) Community Right-To-Know Act. STATE REGULATIONS None known INTERNATIONAL REGULATIONS OTHER AGENCIES None known None known SECTION 16: OTHER INFORMATION DISCLAIMER: As the conditions of use of the product described herein are beyond our control, Aquion Energy inc. neither assumes nor authorizes any person to assume for it any liability in connection with the use of the product. The information provided herein is given in good faith, but Aquion Energy Inc. MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. In no event shall Aquion Energy Inc. be liable for any special, incidental, or consequential damages resulting from the use of the product or in reliance upon information herein. Page 7 of 7#