Evaluation of the Use of Electronic Shipping Papers for Hazardous Materials Shipments (2012)

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13 1.1 Project Objectives The HMCRP Project 05 statement of work (SOW) noted that: When offering hazardous material for transportation, a ship- per is required to create a shipping paper that is intended to inform the carrier of the inherent risks involved in the handling and transport of the material. Shipping papers also contain specific hazard information, standardized so that emergency responders may identify appropriate measures to be taken in the event of a hazardous material incident. The U.S. Department of Transportation (U.S. DOT) requires carriers to have a shipping paper with the hazardous material shipment at all times, and both the shipper and carrier must retain a copy of this ship- ping paper for a period of time after the shipment has reached its final destination. Hazardous material shipping papers have some drawbacks: the current paper documents may not be inter- changeable between modes; a paper system is labor intensive; and paper is perishable to the extent that in some hazardous material incidents, the shipping papers may be destroyed, removing vital emergency response information. Organizations representing shippers and carriers have expressed the need to improve the process by allowing the option of ESP [electronic shipping papers] as an important tool for enhancing productivity and efficiency in hazardous material transport. The International Maritime Dangerous Goods Code and the Inter- national Civil Aviation (Organization) Technical Instructions for the Safe Transport of Dangerous Goods by Air (ICAO Technical Instructions) permit the use of electronic data processing (EDP) and electronic data interchange (EDI) transmission techniques. Nevertheless, carriers still usually require hazardous material shippers to generate hazardous material shipping papers prior to accepting cargo, partly because no shipment can move only by aircraft or vessel, and regulations governing other modes may not facilitate the use of EDI for hazardous materials. The use of internationally compatible electronic data sharing technologies could significantly improve the exchange of hazard information among shippers, carriers, regulatory agencies, and emergency responders, especially for time-sensitive cargo and containerized cargo. Timely access to accurate hazardous materials information will likely reduce errors in information exchange, improve efficiency, enhance security, and improve the response efforts in the event of a hazardous material incident. Research is needed to identify the capability within the transport sector to use an electronic means of documentation as a comple- mentary alternative to a paper-based system. Per the U.S. DOT requirement, the carrier transporting the hazmat must keep a hard copy shipping paper for the hazmat cargo in a specified location in the vehicle for the duration of the trip (see Subsection 1.2.4.3). The objective of this project was to develop a road map for the use of ESP as an alternative to the current paper-based hazmat communication system. It should be emphasized that this research evaluated the use of electronic shipping papers for hazardous materials transportation as an alternative to hard copy shipping documents rather than a replacement for them. “Alternative” was interpreted to mean that ESP are a voluntary replacement for hard copy shipping papers under circumstances where hard copies are not required, and working in conjunction with hard copies where those are required, rather than as a mandatory replacement of hard copy ship- ping papers by ESP. The research recognizes the benefits of unifying the growing advantages of an electronic shipping paper system in a way that it becomes increasingly desirable and attainable, so that the hazardous materials transportation community is not bound by the limitations of hard copy shipping papers. While certain segments of the hazardous materials transportation community are currently using electronic shipping papers consistently and successfully, it must be recognized that a process of standardization and adoption is needed for the larger community to attain the potential benefits of a unified electronic shipping paper system. The road map addresses the electronic transfer of safety, operational, regulatory compliance, and emergency response data and documentation, for and among all (carrier) transport modes. A methodology for proof-of-concept exercises designed to test the implementation strategies and functionality of an electronic hazmat documentation and data transfer system was developed in conjunction with the road map. C H A P T E R 1 Background

14 The remaining organization of this report is as follows: • Chapter 2: Research Approach [including project objec- tives, problem statement, and preliminary findings (Tasks 1 through 3)] • Chapter 3: Findings and Applications (Tasks 4 through 7) • Chapter 4: Conclusions • References • Appendix A: Acronyms, Abbreviations, and Terms • Appendix B: Initial Research Interview Summary and Guideline • Appendix C: Results of Initial Research Interviews • Appendix D: Technology That Can Benefit Stand-Off Detection of ESP by Emergency Response and Regulatory Compliance Personnel The project’s preliminary findings that were based on Tasks 1 through 3 are provided in Chapter 2. These findings include: • Information gathered on relevant topics and organizations (Task 1); • Development of sample process maps of common and com- plex hazmat shipments, including intermodal shipments, from origin to destination (Task 2); and • An interim report (Task 3) that was based on the findings of Tasks 1 and 2. The project’s findings and applications that were based on Tasks 4 through 7 are provided in Chapter 3. These findings and applications include: • A road map for the implementation of a cost-effective electronic hazmat documentation and data transfer system (Task 4); • A methodology for proof-of-concept exercises (Task 5) designed to test the implementation strategies and func- tionality of an electronic hazmat documentation and data transfer system identified in Task 4; • A draft final report that documents the entire research effort, explains and justifies recommendations, provides background information used in the development of recom- mendations that address deficiencies, and recommends further research, including the proof-of-concept exercises (Task 6); and • This final report (Task 7). Chapter 4 provides the project’s conclusions. 1.1.1 Nomenclature The term “hazardous materials” is most commonly used in the United States; the more universal term worldwide is “dangerous goods.” Both terms are used in this document and are interchangeable. Hazardous materials are hereafter referred to in this document by the commonly accepted abbreviated form of “hazmat.” Similarly, electronic shipping papers are hereafter referred to as “ESP,” an abbreviation that also applies to the association of hazmat ESP with their corresponding, required emergency response information. In this document, both of these terms—hazmat and ESP—refer to both singular and plural usage for convenience, although verb agreement depends on the context. The Hazardous Material Regulations are referred to as the “HMR.” The terms “marine mode” and “ocean mode” (also referred to by some sources as “maritime mode” or “water mode”) are essentially interchangeable, although inland barge transport is not included in ocean mode. The terms “paper” and “hard copy” referring to shipping papers or bills of lading are used interchangeably. Where there is mention of hazmat classes and divisions, they are per U.S. DOT designations. While international standards and commerce are discussed, this document references stake- holder organizations that are primarily North American. Nevertheless, the research recognizes that the needs, challenges, and solutions are truly international. Definitions of terms and abbreviations are found in Appendix A. 1.2 Problem Statement/Discussion 1.2.1 Background Code of Federal Regulations (CFR), Title 49—Transportation, Chapter 1—Pipeline and Hazardous Materials Safety Admin- istration (PHMSA)—Hazardous Materials Regulations are issued by the U.S. DOT and govern the transportation of hazmat in interstate, intrastate, and foreign commerce. The primary goal of the HMR is the safety of the public and those whose occupations involve preparing hazmat for transpor- tation or transporting them. The general area of the HMR that covers shipping papers is hazard communication, and it is HMR Part 172 Subpart C—Shipping Papers that gives the specific requirements for shipping papers, whether in electronic or hard copy form. While there is a substantial amount of e-commerce in transportation, especially if faxes are included, in other aspects of our lives electronic transactions have long since superseded exchange of paper as a requirement. For example, e-commerce is routinely used by banks, investment firms, and healthcare providers to transmit large amounts of sensitive information easily and securely. It is very common for an individual to pay bills and file income taxes online and withdraw money from an ATM in cases where paper may serve as a record of receipt but is not required for the transaction. Why then are electronic transactions not in greater use in commerce related to transportation in general, and more

15 particularly to types of commerce in which hazmat ESP could be used? How can the e-commerce systems that have the potential to enable more widespread use of ESP better meet the diverse needs of the hazmat stakeholder groups? This project’s research explored these and other questions in considering the path that can be taken to advance the use of ESP (i.e., the road map). The road map describes the benefits of, and the path toward, a unified ESP system view that supports interoperability and exchange of standardized electronic commerce for hazmat transportation of all carrier modes, carrier types, and hazmat classes without duplicate data entry. The road map illustrates the way ahead for affected stakeholder organizations to achieve implementation of an electronic hazmat documentation and data transfer system. When offering hazmat for transportation, a shipper is required to provide shipping documents containing the HMR- mandated information that is intended to inform the carrier of the inherent risks involved in the handling and transport of the material. Shipping documents also contain specific hazard information, standardized so that emergency responders can identify appropriate measures to be taken in the event of a hazmat incident. U.S. DOT’s HMR do not restrict this information to being paper, except that carriers of hazmat must maintain paper shipping papers for the duration of the trip as part of the current regulatory framework stated in 49 CFR 172. These shipping papers must be carried with the shipment in a specified location in the vehicle for on-scene use by enforcement officials conducting inspections and by emergency response personnel at the scene of an accident or incident. Subsection 1.2.4.3 elaborates on the details of carrying and presenting those hard copy shipping papers under that requirement. The text of 49 CFR 172.600 (c) General Requirements states that: No person to whom this subpart applies may offer for trans- portation, accept for transportation, transfer, store or otherwise handle during transportation a hazardous material unless: 1. Emergency response information conforming to this subpart is immediately available for use at all times the hazardous material is present; and 2. Emergency response information, including the emergency response telephone number, required by this subpart is immediately available to any person who, as a representative of a Federal, State or local government agency, responds to an incident involving a hazardous material, or is conducting an investigation which involves a hazardous material. Hard copies of shipping papers are an original and autho- rized method of documentation in the United States; however, the use of ESP is also currently authorized as a method of documentation. For example, 49 CFR 174.24 (Carriage by Rail) states that “(b) Each person receiving a shipping paper required by this section must retain a copy or an electronic image thereof, that is accessible at or through its principal place of business and must make the shipping paper available, upon request, to an authorized official of a Federal, State, or local government agency at reasonable times and locations” (italics added for emphasis). Indeed, ESP are in use for hazmat transportation of all modes and are used almost exclusively for North American Class 1 railroads. The Canadian Transportation Commission has mandated the use of the Emergency Response Form (ERF) for rail ship- ments of dangerous goods as classified by Transport Canada with regulated form and printing styles. Every full load of most dangerous goods shipped by rail must have an ERF, which provides emergency responders with basic information about the properties of the most dangerous goods. The ERF includes the shipper’s name and phone number, destination, and location of the product (shipping or routing information). Similar to the U.S. DOT requirement, ERFs must be physically attached to dangerous goods shipping documents, which currently precludes their replacement by an EDI system. Hard copy hazmat shipping papers have some drawbacks. A hazmat shipment may be exchanged between different modes and different vehicles within a mode, which is more easily handled electronically since the current paper documents may not be easily interchangeable between modes. A hard copy system is labor intensive and subject to human error, and there are several disadvantages to using physical forms, including lack of availability, potential destruction in an accident, time wasted looking for the form if it is not stored where intended, and misinterpretation of the information. Organizations representing shippers and carriers have expressed the need to improve the process by allowing the option of ESP as an important tool for enhancing produc- tivity and efficiency in hazmat transport. The International Maritime Dangerous Goods (IMDG) code and the International Civil Aviation (Organization) Technical Instructions for the Safe Transport of Dangerous Goods by Air (ICAO Technical Instructions) permit the use of e-commerce transmission techniques. Nevertheless, carriers still usually require hazmat shippers to generate hard copy hazmat shipping papers prior to accepting cargo, partly because no shipment can move only by aircraft or vessel, and regulations governing other modes may not facilitate the use of e-commerce for hazmat. The use of internationally compatible e-commerce technologies could significantly improve the exchange of hazmat information among shippers, carriers, regulatory agencies, and emergency responders, especially for time-sensitive cargo and container- ized cargo. It should be noted that numerous other federal and state agencies regulate materials not covered under the HMR (e.g., industrial waste) that can pose some degree of risk if mishandled; thus, many of the advantages that ESP bring

16 to hazmat shipments also apply to non-hazmat shipments. Timely access to accurate hazmat information will likely reduce errors in information exchange, improve efficiency, enhance security, and improve the response efforts in the event of a hazmat incident. Research was needed to understand the issues and capabilities associated with the transport sector using an electronic means of documentation as an alternative to a paper-based system. A highly capable ESP system can only be as versatile as the e-commerce system that it depends upon. U.S. DOT’s Electronic Freight Management (EFM) program (3) demon- strated the capability of an e-commerce system to maintain a high degree of visibility over in-transit shipments as they pass mode to mode and country to country. North American Class 1 railroads use e-commerce almost exclusively for their shipment transactions. U.S. Customs and Border Protection’s (CBP’s) Automated Commercial Environment (ACE) program (4) and Canada’s Advance Commercial Information (ACI) program (5) require that an electronic manifest be transmitted in advance of a shipment crossing the border. The largest freight forwarders have invested in proprietary systems and devel- oped IT systems that communicate on behalf of shippers and customers within discrete supply chains. Thus, there are examples of both demonstrated potential and everyday use of e-commerce in supply chains. For the future, certain U.S. DOT initiatives are looking to move the highway trans- portation community toward vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and infrastructure-to-vehicle (I2V) communications, potentially including the retrieval of electronic manifest information as part of that concept. 1.2.2 Research Objective The objective of this research was to develop a road map for the use of ESP as an alternative to the current paper-based hazmat communication system. The road map addresses the electronic transfer of safety, operational, regulatory compliance, and emergency response data and documentation for and among all transport modes (6). The modes that require ship- ping papers per the HMR are those that involve carriers but not pipeline. Modal provisions involving shipping papers are: • 49 CFR 172.606, carrier information contact/parked trailers; • 49 CFR 174.24 and 174.26, shipping papers for rail transport; • 49 CFR 175.33, shipping paper and notification of pilot in command for air transport; • 49 CFR 176.24, 27, and 30, shipping papers, certificates, and dangerous cargo manifests (DCMs) for vessel transport (which in some areas outside the United States is called the dangerous goods manifest, or DGM); and • 49 CFR 177.817, shipping papers for motor vehicle transport. 1.2.3 Definition of the Road Map and Methodology for Proof-of-Concept Exercises The road map describes: the implementation of an electronic hazmat documentation and data transfer system including, but not limited to: 1. Safety and operational implications of mixed paper and electronic operations; 2. Solutions to maximize benefits and minimize impe diments to the use of electronic hazardous materials documentation, such as how the implementation of an electronic commu- nication system will impact a. Safety and security, b. Incident mitigation, c. Total transportation costs, d. Movement of hazmat, and, e. Preparedness of emergency responders for incidents; 3. Methods to transfer and receive safety, operational, regula- tory compliance, and emergency response data; 4. Regulatory changes; 5. Standard electronic hazmat communication practices to exchange data across international borders and amongst intermodal carriers; and 6. Secure transfer and receipt of electronic data communica- tions (7) [which should be only to authorized users]. Per the definition used by U.S. DOT’s relevant Dynamic Mobility Applications (DMA) program that is referenced in the Summary and Subsection 3.2.2.2, “Proof-of-Concept testing . . . include(s) testing of standards, procedures, tools, and institutional arrangements. Test results will be used to refine existing standards, procedures, and tools. Promising data environments (and associated applications) identi- fied . . . will be considered for pilot deployment (8) . . .” Per the HMCRP Project 05 SOW, the proof-of-concept describes “exercises designed to test the implementation strategies and functionality of an electronic hazmat documentation and data transfer system identified in the road map. The proof- of-concept is not expected to detail specific scenarios, but is intended to provide a framework, a guideline, and/or a series of questions through which future researchers may propose validation exercises.” The proof-of-concept process described in Subsection 4.2.1 includes: 1. Performance objectives, 2. Identification of potential electronic data exchange systems for ESP, 3. Determination of major characteristics and strengths and weaknesses of each system, 4. Identification of the system for testing the systems’ appli- cability to hazmat shipments in the United States, 5. Selection of a scenario for a test that meets certain criteria,

17 6. Development of a table-top exercise in a workshop prior to the field exercise, 7. Conduct of a limited field test of the selected system fol- lowing selected scenarios, 8. Evaluation of the field test and recommendations for the next steps, and 9. Conduct of a wider field test of the selected system. 1.2.4 Definition and Requirements of Shipping Paper/Emergency Response Information This subsection describes U.S. DOT requirements for ship- ping papers and associated emergency response information. 1.2.4.1 Hazmat Shipping Paper A hazmat shipping paper is a shipping order, bill of lading (BOL), manifest, or other shipping document serving a similar purpose and containing the information required by Part 172, Section C of the HMR. The HMR do not require that the shipper use a special form but instead require that descriptive information be provided in a specific sequence. A proper hazmat shipping description includes a basic descrip- tion (identification number, proper shipping name, hazard class, and packing group if applicable), additional informa- tion that depends on the materials and mode of transport, quantity of hazmat, and type of packing used (9). Some in the hazmat transportation industry use the term “bill of lading” interchangeably with “shipping paper.” PHMSA has made available a guide to preparing hazmat shipping papers including a checklist, hazmat table excerpts and shipping descriptions, hazmat table description, and a sample shipping paper. The description of hazmat on shipping papers includes (10): • Basic description: identification number – Proper shipping name (PSN) – Hazard class or division (plus subsidiary risks) – Packing group • Technical names [required for “not otherwise specified” (NOS) entries] (may be entered after PSN) • Total quantity: mass or volume, except: – Net explosive mass for Class 1 (explosives) – Activity for Class 7 (radioactive materials) • Number and type of packages Requirements for additional description found in 49 CFR 172.203 include: • Special permits (exemptions) – DOT-SP12345 • Limited quantity (Ltd Qty) • Hazardous substance – reportable quantity (RQ) • Radioactive material • Empty packages • Transportation by modes • Technical names • Marine pollutants • Poison inhalation hazard or toxic inhalation hazard (PIH/TIH) • Elevated temperature materials • Organic peroxides 1.2.4.2 Emergency Response Information Per 49 CFR 172.600, emergency response information must be provided during transportation and at facilities where hazmat is loaded, handled, or stored incidental to trans- portation. This applies to persons who offer or accept for transportation, transfer, or otherwise handle hazmat during transportation. The emergency response information must be available at all times hazmat is present and be immediately available during an incident. Per CFR 172.202, emergency response information includes: • Minimum content information used in mitigation of an incident: – Basic description and technical name; – Immediate hazards to health; – Risks of fire or explosion; – Immediate precautions to be taken in the event of an accident or incident; – Immediate method for handling fires; – Initial methods for handling spills or leaks in the absence of fire; and – Preliminary first aid measures. • Format: – Printed legibly in English; available away from hazmat package; maintained like shipping paper; – Presented on shipping paper, in a document that includes basic description and technical name (e.g., Material Safety Data Sheets, or MSDSs); or related to info on shipping paper, Notification to Captain (NOTOC)/ Notification to Pilot in Command (NOPIC), or DCM in a separate document (e.g., the Emergency Response Guidebook, or ERG). (It should be noted that the NOTOC or NOPIC is the written information that must be pro- vided to the aircraft commander when dangerous goods are carried as cargo on an aircraft. The electronic data are verified during hazmat acceptance or, if not present, converted from paper to electronic form at the dangerous goods acceptance location.) • Emergency response telephone numbers: – Person who offers hazmat shipping papers must provide an emergency response telephone number monitored at all times the hazmat is in transportation;

18 – Number of offeror or agency capable of, and accepting responsibility for, providing detailed information; – Provider must have comprehensive emergency response and incident mitigation information for that material, or immediate access to a person who possesses such knowledge; and – Number entered on shipping paper in clearly visible location or following hazmat descriptions. As mentioned, U.S. DOT requires all hazmat shippers to provide constant monitoring of an emergency response telephone number while the hazmat is being transported. In the event of a hazmat accident or incident, to ensure that they are acting on correct information, it is important for the emergency responder and the carrier/transporter to call that number found in the emergency response information before taking any action. U.S. DOT rulemaking HM-206F regarding new require- ments for emergency response telephone numbers on ship- ping papers became effective October 1, 2010. The website for the Council on Safe Transportation of Hazardous Articles (COSTHA) notes that “with few exceptions, hazardous materials shipping papers are required to include a telephone number where emergency responders can obtain product- specific information in the event of an incident during trans- portation. This number may connect directly to either the initial shipper/offeror of the material or to a contract emergency response information (ERI) provider” (11). Although the chemical name and United Nations (UN) number are required for shipping papers, inclusion of the hazmat chemical’s trade name has been shown to have advan- tages over use of its U.S. DOT proper shipping name in the emergency response scenario (12). 1.2.4.3 Presentation and Retention of ESP According to 49 CFR 5110, Shipping Papers and Dis- closure, responsibility for retaining and providing hazmat shipping papers or their electronic format is as follows for these key groups (“Secretary” refers to the U.S. Secretary of Transportation): (a) Providing Shipping Papers. Each person offering for transpor- tation in commerce hazardous material to which the shipping paper requirements of the Secretary apply shall provide to the carrier providing the transportation a shipping paper that makes the disclosures the Secretary prescribes in regulations. (b) Keeping Shipping Papers on the Vehicle. (1) A motor carrier, and the person offering the hazardous material for transportation if a private motor carrier, shall keep the shipping paper on the vehicle transporting the material. (2) Except as provided in paragraph (1) of this section, the shipping paper shall be kept in a location the Secretary specifies in a motor vehicle, train, vessel, aircraft, or facility until (A) The hazardous material no longer is in transporta- tion; or (B) The documents are made available to a representa- tive of a department, agency, or instrumentality of the United States Government or a State or local authority responding to an accident or incident involving the motor vehicle, train, vessel, aircraft, or facility. (c) Disclosure to Emergency Response Authorities. When an incident involving hazardous material being transported in commerce occurs, the person transporting the material, immediately on request of appropriate emergency response authorities, shall disclose to the authorities information about the material. (d) Retention of Papers: (1) Offerors. The person who provides the shipping paper under this section shall retain the paper, or an electronic format of it, for a period of 2 years after the date that the shipping paper is provided to the carrier, with the paper or electronic format to be accessible through the offeror’s principal place of business. (2) Carriers. The carrier required to keep the shipping paper under this section, shall retain the paper, or an electronic format of it, for a period of 1 year after the date that the shipping paper is provided to the carrier, with the paper or electronic format to be accessible through the carrier’s principal place of business. (3) Availability to government agencies. Any person required to keep a shipping paper under this section shall, upon request, make it available to a Federal, State, or local government agency at reasonable times and locations.