PRBA – The Rechargeable Battery Association 1776 K Street, NW 6th World Rechargeable Battery Regulatory Forum March 23 & 24, 2015 Berlin, Germany George A. Kerchner PRBA – The Rechargeable Battery Association 1776 K Street, NW Washington, DC 20006 202.719.4109 gkerchner@wileyrein.com PPT 1.b.4.

PRBA – The Rechargeable Battery Association Established in 1991 as the “Portable Rechargeable Battery Association” Based in Washington, DC Represent industry on regulatory and legislative issues at local, state, national and international level Observer/Advisor with UN Sub-Committee of Experts on Transport of Dangerous Goods and ICAO Dangerous Goods Panel

Members of PRBA – The Rechargeable Battery Association Primary and secondary battery manufacturers: Samsung, Panasonic, Sony, Saft, A123 Systems, Maxell, NEC, EnerSys, Boston Power, Valence Technology, Quallion, Johnson Controls, Rayovac, Duracell, Energizer, Varta …. Manufacturers of notebooks, tablets, cellular phones, power tools, medical devices, automobiles: Apple, HP, Dell, Bosch Tool, Makita, Stanley Black & Decker, Motorola, Philips Healthcare, Boston Scientific, Toyota, General Motors, Tesla Motors … Retailers, battery testing labs, battery recyclers, airline, DG consultants and packaging manufacturers

U.S. Federal Aviation Administration Lithium Battery Testing Program Recent FAA testing and research – Propagation of Lithium Battery Fire in an Inert Environment Characterize Chemical Energy Released from Li ion batteries at Different States of Charge Lithium Battery Thermal Runaway Vent Gas Composition Aircraft Installed Lithium Battery Hazard Analysis E-Tablets Fire Tests Full Scale Battery Tests-Class C - Large Format Cells Passive Fire Protection for Lithium Battery Shipments Shipment of Lithium Batteries Technology Concept, Development and Testing http://www.fire.tc.faa.gov/systems.asp#pres

Recent Media Coverage of FAA Testing on Lithium ion Batteries

U.S. DOT and Transport Canada Lithium Battery Final Rules U.S. Department of Transportation (DOT ) rule ends 5½ year regulatory process New regulations effective for AIR transport on February 6, 2015 New regulations for ground, rail and sea transport postponed until August 7, 2015 New Transport Canada rule updates 12 year old lithium battery transport regulations New regulations effective July 1, 2015 Both rules generally harmonized with international standards

State Battery Recycling Legislation States and product stewardship organizations in U.S. continue to push for battery collection and recycling laws No federal legislation States of California, Connecticut, Vermont active

Wassenaar Arrangement and Limits on Secondary Cells > 300 Wh/kg Wassenaar Arrangement established in 1996 Limits exports of “conventional arms and dual-use goods and technologies” PRBA petitioned U.S. Department of Commerce to eliminate export control on secondary cells

Information Technology Agreement ITA provides complete elimination of duties on certain IT products PRBA petitioned U.S. trade office to seek elimination of tariffs on lithium ion cells/batteries through ITA

Enforcement of Dangerous Goods Regulations in China/Hong Kong and PRBA’s Request for ICAO’s Intervention

Non-compliance and Enforcement of Dangerous Goods Regulations Documented non-compliant lithium battery manufacturers and distributors in China knowingly violating DG regulations Lithium batteries shipped by motor vehicle from Guangdong Province to Hong Kong (HK); shipped by air from HK UPS Flight 6 in Dubai, September 2010 included many non-compliant lithium battery shipments Complex, cross-border logistics involving battery manufacturers, freight forwarders, trading companies, ground handling agents, airlines Creates unique challenge for HK enforcement agency; serious safety issues for airlines

Mislabeled Lithium ion Batteries, Knowing Violations of DG Regulations Lithium ion battery intercepted by Australian transport authorities Labeling battery ≤ 100 Wh Enables airline passengers to carry battery on board aircraft Shippers of battery subject to less stringent dangerous goods regulations

Mislabeled Lithium ion Batteries, Knowing Violations of DG Regulations Non-compliant batteries shipped from Hong Kong, originating in S. China

Checked Baggage from Passengers Leaving Hong Kong on Cathay Pacific

PRBA Request for ICAO Action on Non-Compliance and Enforcement August 2014 PRBA letter to ICAO requesting assistance To date, no action by ICAO IATA recent call for action: “Flagrant abuses of dangerous goods shipping regulations, which place aircraft safety at risk, must be criminalised, as are other actions which place aircraft safety at risk.”

Outreach, Education and Industry/Government Cooperation Links to Australia and UK/FAA safety videos on lithium batteries Webinars on transport regulations Participation in international workshops on lithium battery air transport issues Work with freight forwarders, airlines, ground handling agents, transport agencies, customs agencies www.prba.org

Update on ICAO Regulations and Activities on Lithium Batteries

ICAO’s Lithium Battery Multi-Disciplinary Working Group Meeting Second meeting held in Cologne, Germany – September, 2014 Developed 14 Recommendations: Restrictions on lithium metal batteries on passenger aircraft Limitations on state of charge for Li ion cells/batteries Develop performance based provision to limit probability of propagation of thermal runaway between cells Limit carriage of lithium ion batteries in certain cargo holds of passenger aircraft Limit carriage of Li ion and Li metal batteries in Class C cargo hold of cargo aircraft Distinguish button cells from other types of Li metal cells Develop performance based packaging for Li ion and Li metal batteries

Projections for Li ion Cell Production Data courtesy of Hideo Takeshita Institute of Information Technology, Ltd.

Trade Values of U.S. Imports

Recent Paper Filed with ICAO Dangerous Goods Panel WG International Coordination Council for Aerospace Industry Association (ICCAIA) recommendations: Establish packaging and shipping requirements to “more safely ship” lithium ion batteries as cargo on passenger aircraft; Prohibit high density packages of lithium ion batteries as cargo on passenger aircraft until “safer shipping methods” are established; and Establish packaging and shipping requirements to “more safely ship” lithium metal and lithium ion batteries as cargo on freighter aircraft.

Next Steps for ICAO DGP in 2015 Meetings in April and October – Montreal, Canada Proposals to prohibit lithium ion batteries as cargo on passenger aircraft? Proposals to place additional restrictions and limitations on all lithium batteries shipped on cargo aircraft? Limitations on state of charge for lithium ion cells and batteries? Limitations on “overpacks” but exceptions for button cells and cells/batteries for medical devices? Changes to lithium battery handling label and Class 9 label PRBA participates in all ICAO DGP meetings

Power Banks Are they lithium ion batteries or equipment? Implications for transport regulations Battery packaging more stringent for air transport Lengthy discussions at ICAO and UN meetings Issue on agenda for UN working group meeting in Brussels, March 2015

Lithium Battery Safety Issues in Air Mode and Industry Response

Misinformation on Aircraft Incidents Malaysia Airlines Flight 370 – March 2014 Asiana Flight 991 – July 2011 UPS Flight 6 – September 2010

Size of Battery Excepted Hazard Communication Label/Document Changes to ICAO Regulations Applicable to Small, Excepted Lithium Batteries: 1999 - 2017 Text in red indicates significant change from previous year Size of Battery Excepted UN Testing? Per Package Limits Hazard Communication Label/Document Li ion ELC/Wh* Li Metal 1999 ≤ 25 g Only for larger batteries None 2003 ≤ 8 g ≤ 2 g All batteries 30 kg Yes. If package > 12 batteries 2009 ≤ 100 Wh 10 kg 2.5 kg All packages 2013 2 batteries Mandatory training for shippers also required in 2013 2015 Lithium metal batteries banned as cargo on passenger aircraft 2017 ICAO likely to adopt significant new restrictions on large shipments of lithium batteries. * 25 g ELC (Equivalent Lithium Content) = 300 Wh 8 g ELC = 100 Wh

14 Recommendations from ICAO’s Lithium Battery Multi-Disciplinary WG meeting Second meeting held in Cologne, Germany – September, 2014 Developed 14 Recommendations: Restrictions on lithium metal batteries on passenger aircraft Limitations on state of charge for Li ion cells/batteries Develop performance based provision to limit probability of propagation of thermal runaway between cells Limit carriage of lithium ion batteries in certain cargo holds of passenger aircraft Limit carriage of Li ion and Li metal batteries in Class C cargo hold of cargo aircraft Distinguish button cells from other types of Li metal cells Develop performance based packaging for Li ion and Li metal batteries

New Developments in Lithium Battery Packaging for Transport

New Developments in Lithium Battery Packaging for Transport Pyrophobic https://vimeo.com/90529359 (9:15) https://vimeo.com/108568119 (1:00) Akrofire https://www.youtube.com/watch?v=sSowNgiR0ng (37:00)

New Developments in Lithium Battery Packaging for Transport FedEx gel packs Pouch containing liquid coolant is placed above cells When cell experiences thermal event, heat from cell ruptures pouch releasing coolant

Wassenaar Arrangement

Wassenaar Arrangement and Energy Density Limits on Secondary Cells Wassenaar Arrangement (WA) established in 1996; limits exports of “conventional arms and dual-use goods and technologies” Participating countries: Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Republic of Korea, Romania, Russian Federation, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom and United States China does not participate

Wassenaar Arrangement and Energy Density Limits on Secondary Cells Limits energy density (Wh/kg) on primary and secondary cells Secondary cell limit = 300 Wh/kg Primary cell limit = 550 Wh/kg Raised from 250 to 300 Wh/kg in 2012 on Japan’s request PRBA petitioned U.S. Department of Commerce (DOC) in 2014 to eliminate export controls on secondary cells

Increasing Energy Density (Wh/kg) of Secondary Cells

Wassenaar Arrangement and Energy Density Limits on Secondary Cells U.S. DOC must consult with Department of Defense and Department of State on WA proposals U.S. Department of Defense opposed PRBA petition Compromise proposal: 350 Wh/kg U.S. will submit proposal to raise secondary cell energy density limit to 350 Wh/kg at WA meeting in April 2015 Korea or Japan could request higher energy density limit at WA meeting (400 Wh/kg?)

Wassenaar Arrangement and Energy Density Limits on Secondary Cells Shipments of secondary cells over 300 Wh/kg requires license from government export authorities in country of origin Does WA secondary cell limit apply to – Single cell batteries: NO Batteries: NO Equipment containing cells or batteries: NO

Information Technology Agreement

Information Technology Agreement ITA established in December 1996 80 participating countries, representing 97% of world trade in information technology products ITA provides complete elimination of duties on IT products covered by Agreement PRBA petitioned U.S. trade office to seek elimination of tariffs on lithium ion cells/batteries through ITA

Information Technology Agreement EU COUNCIL REGULATION No 722/2014 – June 2014 Suspends tariff duties on certain “agricultural and industrial products” Includes long list of lithium ion cells and batteries (8507.60.00) U.S. / Korea free trade agreement (FTA) China opposes inclusion of lithium ion batteries in ITA ITA negotiations currently stalled Need coordination between RECHARGE, KBIA, BAJ and PRBA to secure support for inclusion of lithium ion batteries in ITA