Update - Transportation of Lithium Batteries

Transportation Since the last Trilateral Meeting there has been no changes in the transportation regulations (DOT, ADR, ICAO, IATA, IMO) for any of the Dry Cell, Ni-Cd or Ni-Mh batteries As always, there continues to be ongoing changes on the transportation of both lithium and lithium ion cells and batteries. Lithium and lithium ion are now banned from Passenger Aircraft as cargo worldwide, harmonizing with the US DOT ban. “Overpacks” of ICAO/IATA PI 965 and 968, Section II batteries are now limited to one package, per one consignee per day. Lithium Ion batteries are limited to a 30% SOC when shipped under PI 965. PI 966 and 967 shipments are not SOC limited. October 2016 Wash, DC 2 NEMA – TWG 2016 BUSINESS CONFIDENTIAL

Transportation When you have an air Waybill, the following statement must be on the air Waybill. “Lithium batteries in compliance with Section II of PI – 968 – “Cargo Aircraft Only” or “CAO”. Lithium ion has an equivalent requirement. FUTURE CHANGES Effective January 1, 2019 there will be a new mandatory Class 9 label for lithium and lithium ion batteries. There will also be a new mandatory Lithium Battery Handling Label. Both of these are authorized for voluntary use effective January 1, 2017. The existing versions can still be used till December 31, 2018. October 2016 Wash, DC 3 NEMA – TWG 2016 BUSINESS CONFIDENTIAL

Transportation Effective January 1, 2017, “Simple Documentation” will no longer be required for any ICAO/IATA Section II shipments. . October 2016 Wash, DC 4 NEMA – TWG 2016 BUSINESS CONFIDENTIAL

Transportation SAE G-27 Standards Work - The Society of Aerospace Engineers (SAE) has been tasked by the ICAO Dangerous Goods Panel to develop a “Lithium Battery Performance-Based Standard. This standard is supposed to develop a mandatory standard for packaging for shipping lithium and lithium ion cells and batteries by air. The package must: be designed so that: No hazardous amount of flame can be allowed outside the package. External surface temperature of the package can’t exceed the amount to ignite adjacent packaging. October 2016 Wash, DC 5 NEMA – TWG 2016 BUSINESS CONFIDENTIAL

Transportation No hazardous fragments can exit the package and the package must contain structural integrity. Quantities of flammable gas must be limited so that any pressure pulse can’t damage the integrity of the cargo liner. The group is still discussing if the package has to protect the batteries from an external fire source. This work won’t be completed until late 2017. The goal was to again allow batteries back on Passenger Aircraft once this standard was completed. October 2016 Wash, DC 6 NEMA – TWG 2016 BUSINESS CONFIDENTIAL

Transportation ICAO Meeting in Montreal, Canada this week. PRBA has been told they can’t attend the meeting. Their presence would negatively impact the “effectiveness and efficiency” of the meeting. In total there are now 23 lithium and lithium ion Papers being addressed at this meeting. The three most important Papers would: Establish segregation requirements for lithium and lithium ion batteries. Totally eliminate PI 965 and 968 Section II shipments. Require a fire resistant ULD or Cover to transport on any type of cargo aircraft. October 2016 Wash, DC 7 NEMA – TWG 2016 BUSINESS CONFIDENTIAL