E.V. Logistics Coordinator — Hazardous Materials Safety Interpretation

Page 1U.S. Department of Transportation 1200 New Jersey Avenue, SE Materials Safety Pipeline and Hazardous Washington, D.C. 20590 Administration JUN 1 6 2016 Mr. Mike Casas E.V. Logistics Coordinator Kinsbursky Brothers, Inc. 125 East Commercial Street, Suite A Anaheim, CA 92801 Reference No. 15-0210 Dear Mr. Casas: This letter is in response to your October 21, 2015, letter requesting clarification of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) applicable to lithium batteries. Specifically, you ask if a lithium battery or cell that has been damaged (e.g. burned, crushed, cut, etc.) to a degree that it no longer meets the definition of a battery or cell, as set forth in the United Nations (UN) Manual of Tests and Criteria Sub-section 38.3, is still considered a lithium battery to be shipped under the requirements in § 173.185? In order for a lithium battery or cell to no longer be subject to § 173.185 of the HMR, it (1) can no longer meet the definition of a battery or cell in Section 38.3.2.2. of the UN Manual of Test and Criteria, or (2) can no longer be identified as being damaged or defective such that it does not conform to the type tested in accordance to the applicable provisions of the UN Manual of Test and Criteria. In addition, a cell or battery would no longer be subject to § 173.185 of the HMR if: • The battery is cut into separate pieces, which no longer meet the definition of any hazard class including hazardous materials or hazardous waste; or The battery does not meet the definition of being damaged or defective (regardless of the voltage across the terminals). However, it is still the shipper's responsibility to properly class and describe the hazardous material in accordance with § 173.22 and to meet the applicable requirements in the HMR. I hope this information is helpful. Please contact us if we can be of further assistance. Sincerely, T. Glenn Foster Chief, Regulatory Review and Reinvention Standards and Rulemaking Division#

Page 2andrews 5/73.185 Dodd, Alice (PHMSA) Batterees 15-0210 From: Sent: Geller, Shelby CTR (PHMSA) To: Monday, October 26, 2015 3:51 PM Subject: Hazmat Interps Attachments: FW: Interpretation letter request - Lithium batteries Interpretation request letter.docx; Interpretation request letter.pdf; FW: Special Permit response 16582-N; 16582-2015100056-Denial Letter.pdf; application.doc Dear Shante and Alice, Attached is a request for a formal letter of interpretation. Mr. Casas spoke with Eamonn Patrick in the HMIC. Thanks, Shelby From: Mike Casas [mailto:mcasas@Kinsbursky.com] Sent: Monday, October 26, 2015 1:28 PM To: PHMSA HM InfoCenter Subject: Interpretation letter request - Lithium batteries matter and look forward to your response. Please find attached an interpretation request, as well as supporting documentation. I appreciate your guidance in this Thanks and regards, Mike Casas | E.V. Battery Logistics Coordinator Kinsbursky Brothers, Inc. | www.kinsbursky.com 125 East Commercial Street | Suite A | Anaheim, CA 92801 0. 714-738-8516 M. 714-365-6420 E. mcasas@Kinsbursky.com Affiliates | www.retrievtech.com | www.biggreenbox.com | www.lithchem.com should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake Disclaimer: This message contains confidential information and is intended only for the individual named. If you are not the named addressee you corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in and delete this e-mail from your system. E-mail transmission cannot be guaranteed to be secure or error-free as information could be intercepted, binding agreement by email. Agreements are only binding with the express written confirmation of a corporate officer or counsel. the contents of this message, which arise as a result of e-mail transmission. No employee or agent of this corporation is authorized to conclude any 1#

Page 3107.105(a)(2) • Name - Spectrum Brands Inc • Address - 3001 Deming Way. Middleton, WI. 53562 • Email - Richard.Weinberger@Spectrumbrands.com • Telephone - 608-742-5373 Ext. 238 • Company CEO - Andreas Rouvé (Spectrum Brands) • Physical Address Associated with Special Permit Use - Spectrum Brands - Portage Plant located at: 2851 Portage Road. Portage, WI. 53901. • Plant Manager - Dave Young The DUNS # for Spectrum Brands Inc. is 00-195-1946 and is the number used for all locations. 107.105(a)(3) • N/A 107.105(a)(4) • N/A 107.105(a)(5) • Registration #: 070615001013XZ • Name: Spectrum Brands Inc 107.105(c)(1) • Specific regulation - 49CFR 173.185, ruling on inner packaging requirement. We feel that we are exempt due to 173.185(a)(6)(d) listed below. 107.105(c)(2) • Proposed mode of transportation - Motor vehicle transportation. 107.105(c)(3) • We are seeking permit that will allow us to ship dead lithium metal cells in oil. These cells are placed in a 30 gallon, UN rated 1A2 (removable head steel drum). The cells are then filled to about 8-10 inches from the top of the drum. On top of the cells there is a layer of mineral oil filled to about 2-4 inches from the top of the drum. We would need this permit if it's ruled that#

Page 4we don't meet the requirements for inner packaging. We would ask to have this permit for 2 years to ship this hazardous waste. • Labeling - It has a hazardous waste label affixed, a dangerous when wet placard, and the description "Scrap Lithium Cells in Oil". HAZARDOUS WASTEL DANGEROUS WEN 107.105(d)(3) • Identify Hazards - The cut cells often have the lithium exposed which is why we covered them with mineral oil. So if water is able to contact the lithium that would be a potential hazard. • Potential Failure Modes - Mineral oil is a class Ill combustible liquid. If a battery wasn't dead and somehow mixed in it would have the potential to short. • Probability of Occurrence - All of the damaged or cut lithium cells don't have any charge and would not be susceptible to a short circuit by contacting another cell during transportation. It would take an operator error to place an incorrect cell in the drum. So I would say the probability would be less than 0.1% • Risk Mitigation - The lithium is covered in mineral oil to prevent contact with water and oxygen. The 30 gallon drums of lithium cells in oil are held on the facility for months. They are collected at an accumulation point and transported to our outside chemical shed for up to 9 months. We've also transported our cut/dead lithium cells in oil for 15 years+ without an incident. 173.185(a)(1) • These Rayovac cells and batteries have passed the UN model regulations, manual of test and criteria, part Ill, subsection 38.3 173.185(a)(2) • Precludes a violent rupture under conditions normally incident of transportation 173.185(a)(6)(d) • Our facility is only sending dead batteries to the disposal facility so we are protected against short circuits and are packed in a strong outer packaging conforming to requirements §§ 173.24#

Page 5and 173.24a. We believe this would except us from the specification packaging requirements of paragraph (a)(4) regarding inner packaging.#