Reverse operations just got a nudge forward for retailers. If you manage a retail operation, you are confronted with waste and hazardous materials problems that can be confusing for even the most seasoned manager. The U.S. Department of Transportation (DOT) recently finalized efforts to make reverse logistics easier for retailers that have to ship hazardous materials.

Three Caveats

It is critical to note that the new regulation applies only to highway transportation and does not apply to hazardous waste. It also does not apply to hazardous materials that are transported according to the provisions of a special permit.

What Are Reverse Logistics?

Reverse logistics involves the transportation of hazardous materials that have been damaged or returned by the retailer to a return center. DOT’s Pipeline and Hazardous Materials Safety Administration’s (PHMSA) new rule provides a regulatory definition of “reverse logistics” and outlines the responsibilities of those that offer management of hazardous materials returned by retail customers.

Who’s Affected?

The new regulation, found at 49 CFR 173.157, primarily affects retail outlets that in the past bore the full burden of the hazardous materials regulations (HMRs) even though reverse logistics shipments of certain materials presented a low risk. The new regulation addresses hazardous materials intended to be returned by a retailer to a supplier, distributor, or manufacturer.

The primary regulatory concern has been that retail outlets are ill-equipped to meet the HMRs in such areas as classification, selecting packaging, communicating hazards, and training employees in the functions they perform.

The final rule identifies the hazardous materials authorized, packaging, hazard communication, and training requirements for reverse logistics shipments. In addition to providing a new reverse logistics exception, the rule also expands an existing exception for reverse logistics shipments of used automobile batteries that are being shipped from a retail facility to a recycling center.

According to PHMSA, the regulation is meant to ensure that retailers properly identify hazardous materials in the reverse logistics chain and to make sure that retailers’ employees have clear instructions to safely offer such shipments.

Note. Since the new rule is less strict than the applicable HMRs, it is optional. Retailers can choose to continue to operate under the full requirements of the HMRs. The reverse logistics rule is meant to provide some flexibility for retailers. According to PHMSA, the rule will not impose increased compliance costs and will in fact reduce compliance costs for those who take advantage of the alternative.

How Much Savings?

PHMSA claims the new rule will save the industry millions annually in reduced compliance costs. The biggest savings will be in training. Here’s how PHMSA breaks it down:

 

Category Amount of Annual Savings
Training $4 million – $8 million
Shipping preparation $0 – $1 million
Transportation costs for battery recycling $1 million – $2 million

Retailers should see a reduction in shipping preparation costs involving certain quantities of consumer-type hazardous materials. There are marking requirements, but the vehicles carrying the packages do not require placarding. The new training requirements are meant to reflect the distinct segment of the supply chain that transports these consumer commodity hazardous materials in limited quantities as return shipments from retail stores. The new rule should also reduce the transportation costs involved in shipments for the recycling of lead-acid batteries (a.k.a., wet batteries).

Rule Is Optional

Since the new rule is less strict than the applicable hazardous materials regulations (HMRs), it is optional. Retailers can choose to continue to operate under the full requirements of the HMRs. The new rule, found at 49 CFR 173.157, provides a definition of reverse logistics and sets out requirements for packaging, hazard communication, employee training, segregation of hazardous materials, and incident reporting. It also provides relaxed requirements for the transportation of lead-acid batteries intended for recycling.

A New Definition

The final rule defines “reverse logistics” 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, recall, replacement, recycling, or similar reason.”

Which Hazardous Materials Are Covered?

The new rule applies only to highway shipments of hazardous materials that meet the definition of reverse logistics. In addition, except for alternative training provisions, the shipments must meet the HMRs limited quantity requirements.

The reverse logistics rule is not applicable to the following hazardous materials:

  • Most Class 1 materials (explosives) except for Division 1.4G materials and Division 1.4S flares and fireworks under certain conditions;
  • Class 2 materials (gases), including all Division 2.3 (poisonous by inhalation) but excepting Division 2.1 and 2.2 gases under certain conditions;
  • Class 4, Division 4.2 (spontaneously combustible materials) and self-reactive materials;
  • Class 5, Division 5.2 (organic peroxides);
  • Class 6, Division 6.2 (infectious substances);
  • Class 7 (radioactive materials); and
  • Lithium batteries under Class 9 (miscellaneous hazardous materials).

Certain hazardous materials that are offered for transport or that are transported by private carriers are subject to other limitations, including that they must comply with the HMR segregation requirements at 49 CFR 177.848 and the incident reporting requirements at 49 CFR 171.15. These are:

Division 1.4G ammunition, Division 1.4G and 1.4S fireworks, and flares, when sold in retail stores, are limited to 66 pounds (lb) per package.

Equipment powered by flammable liquids or flammable gases:

  • For flammable, liquid-powered equipment powered an internal combustion engine, the fuel tank and fuel lines must be closed, and the fuel tank caps or closures must be securely in place.
  • For flammable, gas-powered equipment, e.g., a combustion engine or devices such as camping equipment, lighting devices, or torch kits, the flammable gas source must be disconnected, and all shut-off devices must be closed.
  • Division 2.1 or 2.2 compressed gases must weigh less than 66 lb and must be sold as retail products. Cylinders and aerosol containers may be assumed to meet the definition of 2.1 (cylinders) or 2.2 (aerosols) materials even if the exact pressure is not known.

Hazard Communication

Instead of the surface limited quantity marking, retailers transporting hazardous material by private carrier may use the marking “REVERSE LOGISTICS—HIGHWAY TRANSPORT ONLY—UNDER 49 CFR 173.157.”

Training Eased a Bit

Retail employers who choose not to train under the full-blown HMRs at 49 CFR 172.700 to172.704 are required to:

  • Identify the hazardous materials at the facility that are subject to the reverse logistics rule;
  • Verify compliance with any conditions and limitations;
  • Ensure that there are clear instructions from the manufacturer, supplier, or distributor and that the instructions are known and accessible to the employees who are preparing the shipment;
  • Document that the employees are familiar with the reverse logistics rule as well as the specific return instructions for the products; and
  • Keep the training documentation as long as the person is employed plus 60 days after employment ended.

What about batteries?

The reverse logistics rule allows for the pickup of used lead-acid batteries (for retailers, these are mostly automotive batteries) from multiple retail locations for the purposes of recycling as long as the pallets are built so that they will not cause damage to another pallet during transportation. Any batteries loaded in the same vehicle must be secured to prevent contact with or damage to other batteries. Shipments of these batteries are subject to the incident reporting requirements at 49 CFR 171.15.

For more information or assistance with your Environmental and Health & Safety regulatory compliance needs, contact Ralph Carito at Total Environmental & Safety, LLC (Total) at rcarito@TotalEnviron.com or 908-442-8599.