PGS 37-2 examined closely

The PGS 37² guideline has appeared in its final New Style version. As a company with lithium batteries in storage, how can you comply with these complex regulations? As a knowledge institute in the field of dangerous goods, Special Cargo supports you in this, with information, advice, training and in logistics operations.

The Dutch Hazardous Substances Publication Series (Nederlandse Publicatiereeks Gevaarlijke stoffen or PGS) is a set of guidelines for storage and related activities involving hazardous substances. The PGS 37² is focused on the safe storage of lithium-based energy carriers, or lithium batteries. It was developed to minimize risks such as fires, explosions and environmental damage that may result from improper storage or handling of these dangerous goods. Therefore, it is crucial that companies with lithium batteries in storage follow the PGS 37² implement correctly to ensure safety. However, this can have quite an impact on your business and business processes. That’s why Special Cargo takes you through this process with all kinds of information.

Read below, including whether the PGS 37² willapply to your company and what the most notable changes are from the previously released draft version. Next, do you have any questions? Then sign up for our white paper!

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Hazardous Substances Publication Series (Publicatiereeks Gevaarlijke Stoffen)

The Publicatiereeks Gevaarlijke Stoffen (PGS) is a Dutch series of publications containing guidelines and regulations for the storage, use and transport of dangerous goods. This series is managed by the PGS Program Office, which is part of the Ministry of Infrastructure and Water Management.

The PGS guidelines are prepared by experts from various fields, including government, industry and industry associations. They are designed to ensure safety when handling dangerous goods and to minimize environmental risks.

Each PGS publication addresses specific aspects of dangerous goods, such as storage and use. The numbering of the PGS publications indicates which topic is covered. For example, PGS 15 deals with the storage of packaged dangerous goods, and the PGS 37² deals with the storage of lithium batteries.

New Style

A new draft of the PGS guidelines was started in 2015: the PGS New Style. The measures in this New Style are based on a risk approach: what are the risks associated with activities involving the hazardous substance in question? The situations where things can go wrong are described in scenarios. For these scenarios, goals were formulated aimed at controlling the risks. The goals, in turn, refer to actions that must be taken to achieve the goal. Measures allow a company to meet a goal.

All in all, the New Style PGS has the following main elements:

• the legal frameworks;
• The risk approach with the scenarios;
• the goals;
• measures to meet targets.

PGS 37²

Directive PGS 37² of the Hazardous Substances Publication Series deals with the safe storage of lithium-based energy carriers, or lithium batteries. Improper handling or storage of lithium batteries can lead to the occurrence of a “thermal runaway. This is an uncontrollable heat increase in the energy carrier, as a result of which it decomposes, ignites and emits toxic, flammable and corrosive gases. Such a thermal runaway can have several causes: the battery can be dropped, heat up, short-circuited, overcharged or over discharged, improperly charged or damaged.

When in effect?

The first version of PGS 37² was published in March 2022. This was a draft version, on which the business community and other stakeholders could formally comment. That generated about 1,200 comments. Based on these comments, changes were made, leading to a new and final version. It was published on Nov. 8, 2023.

So is the new directive effective immediately? No, first the new PGS 37² must be approved by the Administrative Environment Board (Bestuurlijk Omgevingsberaad, BOb). The next step is to give it legal status and thus become mandatory for companies covered by it. On Jan. 1, 2024, the new Environment Act will take effect. However, then PGS 37² will not immediately come into effect as well. In fact, to do so, it must be included in the Living Environment Activities Decree (Besluit activiteiten leefomgeving, Bal), which will link it to the Environment Act. This will probably happen by Jan. 1, 2025, but there is a chance that it will be as early as July 1, 2024.

PGS sometimes already mandatory

However, the new PGS 37² directive can and may be applied now. In fact, in some cases this is already required by the competent authority. For example, in the form of customization requirements, when submitting an activity report or a new permit application. Unfortunately, the extent to which this is enforced can vary from municipality to municipality.

Does my company fall under PGS 37²?

All companies that have lithium energy carriers on their premises may have to deal with PGS 37². Even if these batteries are part of tools or other devices. Therefore, the big question many companies are asking is: does my company fall under the scope of the PGS 37²? And if so, do I have to comply with all the rules? To answer that question, we look at section 1.2 of PGS 37².

Nothing has changed about the products covered by PGS 37² from the draft version. Still covered is storage of all lithium energy carriers identified in ADR. These are the following UN numbers: UN 3090, UN 3091, UN 3166 – hybrid, UN 3171, UN 3480, UN 3481 and UN 3536.

Lower Limits

However, the lower limits have been adjusted. These are the limits below which companies do nothave to comply with PGS37². A total of five groups of lithium energy carriers are now distinguished for which a lower limit per fire compartment has been set (see table below).

Group	Description	Lower limit per fire compartment
1	Energy carriers in accordance with Special Provision 188 of the ADR	1,000 kg
2	Energy carriers not included in Group 1	333 kg
3	Energy carriers stored outdoors, not included in Group 1 and incorporated in vehicles, tools or machinery	333 kg and storage > 2,500m2
4	Damaged or defective energy carriers	30 kg
5	Energy carriers for the purpose of product reuse or material reuse	333 kg

Therefore, as long as that lower limit is not exceeded, you do not have tocomply with PGS37². In case you want to store multiple groups of lithium energy carriers in one fire compartment, a formula has been added. Using this formula, you can calculate how to stay below the lower limit per fire compartment. We discuss this in more detail in our free white paper.

Exemptions

Furthermore, the number of exemptions from PGS 37² has beenexpanded . These situations are not covered by the new directive under certain conditions:

• cross-docking (temporary storage);
• lithium energy carriers in waste streams.

A good example of a condition of an exemption is the maximum permitted stay of 48 hours in cross-docking. If this residence time is exceeded, storage under PGS 37² is indeed mandatory. This may be the case, for example, at companies that work only Monday through Friday.

The exemption in relation to rental of vehicles, tools and two-wheelers has just been tightened.

What strikes us is that the new cross-docking exemption only solves part of the problem. Under the first version of PGS 37², crossdocking with lithium energy carrierswas not possible at all, now it is. However, the wording of this exemption still causes some headaches. Learn more in our white paper as a free download.

Compliance

It is important to follow the guidelines of PGS 37²correctly . If not, there are several risks:

• Fire hazard: lithium batteries can cause fire if not stored or handled properly.
• Explosion hazard: in some cases, lithium batteries may decompose explosively due to overheating or damage. Improper storage can increase the risk of explosions.
• Environmental risks: toxic and corrosive vapors are generated during a thermal runaway, which are environmental pollutants. Used firefighting water is also heavily contaminated by these products.
• Health risks: exposure to vapors generated during a thermal runaway can cause major health problems.
• Legal consequences: failure to comply with the requirements of PGS37²can have legal consequences such as fines, administrative enforcement or criminal prosecution.

Notable changes

For those already familiar with the draft version of PGS37², below are some notable changes from this earlier version:

Typicals and stores that fall outside the classification

The PGS 37² classifies types of storage facilities and calls them “typicals. As expected, a typographical error in Table 3 has been corrected in typical 2c (30m² has been changed to 300m²). Furthermore, it has been clarified that a showroom may contain products other than just lithium energy carriers. In addition, a flow chart has been added in Appendix H. This allows you to determine which typical applies to you.

What is also noticeable is that the “old” section 1.2.1 has been removed. This stated the following: if a business cannot be classified in a typical – for example, because of exceeding 2,500m² of floor area per fire compartment – then the business is subject to a permit requirement. In itself, it is logical that this section has been removed, since activities requiring permits (soon to be called Environmentally Harmful Activities) will soon have to be regulated in the Living Environment Activities Decree (Bal). A PGS cannot impose a permit requirement.

For now, the texts of the Ball state a permit requirement for storage of >10 tons of packaged dangerous goods per fire compartment. There is now a gap for logistics companies that want to store ≤ 10,000 kg of lithium energy carriers per fire compartment in fire compartments with a gross floor area > 2,500 m². They are not subject to licensing, but also do not fit within the formulated typicals. Thus, it is now unclear what rules apply to such businesses.

‘Used’ versus ‘in use’

When subdividing energy carriers, the terms “energy carriers used” and “energy carriers in use” are used. The distinction between these terms was somewhat unclear, but is now made clear in a newly inserted flow chart (PGS 37², Figure 1). In fact, this flow chart indicates that:

• in-service energy carriers (“in-service energy carriers”) are not covered by PGS 37². If they are in use as part of an Energy Storage System, they do fall under PGS 37¹;
• the moment the energy carrier has been used (“used energy carrier”) and is placed or stored somewhere for later use, it does fall under PGS 37².

The term “unpackaged

In the PGS37², in some cases the conditions for packaged and unpackaged energy carriersare different. To better clarify the difference, the definition “unpackaged” has been added in Appendix A. It is clear from this that what is meant is “the absence of packaging as stated in the relevant ADR packaging instructions and special provision 188.

However, some of the listed ADR packaging instructions allow unpackaged transportation of energy carriers (heavier than 12 kg and fitted with sturdy, shockproof housing). Such energy carriers thus comply with a stated packaging instruction, but do not have a single packaging layer. The question now is whether such energy carriers should be seen as “packaged” or “unpackaged.

Detection systems

Minor adjustments were made to various systems. However, these adjustments do give some more breathing room. For example, standard and heat detection and ^CO-/H2 detection no longer need to be installed. The preparer of the Baseline Document (Uitgangspuntendocument, UPD) of these systems can determine, based on an assessment, whether the installation of either detection system is sufficient.

Storage smaller quantities in fire safety storage cabinets and safes

Appendix E deals with requirements for fire safety storage cabinets and safes. This appendix has been completely updated. It is now clear that if the conditions in Annex E are met, most of the measures in Chapter 7 of PGS 37² no longer apply.

However, the number of fire safety storage cabinets to be used is now capped at:

– 3 per fire compartment (WBDBO 60 minutes) on the first floor (unless the fire compartment is equipped with a certified sprinkler system);

– 1 per fire compartment (WBDBO 60 minutes) on a floor and in a basement.

Storage in fireproof storage vaults is allowed up to a maximum of 2,500 kg. This makes many of the currently circulating vaults (20 ft container size) less practical for storage of UN 3090 and UN 3480. This is because (depending on the weight of the stored energy carriers) they will reach their weight limit faster than their volume limit.

For whom is the PGS 37²guideline useful?

It is intended primarily for companies that store lithium batteries. So also companies that distribute, assemble or install the batteries, such as web shops, electronics dealers, bicycle manufacturers and electric car showrooms. In addition, the guideline is useful for:

• engineering and consulting firms;
• environmental services;
• Safety Regions.

Get our free white paper

Thereis , of course, much more practical information about the PGS 37² than we can include in this article. In particular, changes made in the measures, however small sometimes, have, or may have, a major impact. So do you have lithium batteries in storage? Then make sure you get our free white paper that we have put together as a download for our clients. In it you will find the answers to these questions, among others:

• What are the key details of the new PGS 37²?
• What will be the obligations for my company?
• What steps do I need to take to be fully compliant?

Courses

As a knowledge leader in the field of dangerous goods transportation and storage, Special Cargo College also conducts training and courses on lithium battery storage. This way, we ensure that your employees are always working in accordance with applicable laws and regulations. We have the following courses for the different target groups dealing with lithium batteries:

• Full PGS 37²training, PGS 37²Storage of Lithium Energy Carriers: this training is fully consistent with the final PGS 37-2 (New Style, November 2023). It was developed for employees who need to work independently with the scheme. We teach them all the ins and outs of PGS 37-2 so they are able to apply the rules effectively and ensure the safety of lithium batteries. The training is conducted in a classroom setting, but we can also come to your facility for in-company or customized training.
• Lithium Energy Carrier Storage Awareness PGS 37²: This e-learning is specifically designed for all employees who work at a company site where lithium batteries are stored. It is an awareness training that enables them to recognize and understand the risks, even if they do not come into direct contact with the batteries. The e-learning is available in English or Dutch.

Frequently Asked Questions

1. What is PGS37²?

PGS37² is a guideline within the Hazardous Substances Publication Series that regulates the safe storage of lithium-based energy carriers, or lithium batteries.

2. Why is PGS 37² important?

PGS37² is important because improper handling or storage of lithium batteries can lead to hazardous situations such as “thermal runaway,” fire, and explosion hazards.

3. What is the “New Style” of PGS guidelines?

The “New Style” of PGS guidelines, started in 2015, bases measures on a risk approach, with scenarios, targets, and measures to meet those targets.

4. When will the new PGS 37² go into effect?

The final version of PGS 37² was published on Nov. 8, 2023, but it will not become legally required until its inclusion in the Decree on Activities in the Living Environment (Bal) linked to the Environment Act. That will likely happen by Jan. 1, 2025, but may be sooner or later.

5. Who is PGS 37² relevant to?

PGS 37² is relevant to companies that store, distribute, assemble or install lithium energy carriers. In addition, for engineering and consulting firms, environmental services, and Safety Regions.

6. How can I determine if my company is covered by PGS 37²?

This is determined using the lower limits for different groups of lithium energy carriers and the specific UN numbers covered by PGS 37².

7. Does Special Cargo also offer courses on PGS 37²?

Yes, Special Cargo College offers various courses on the storage of lithium batteries and the application of PGS 37².

Resources

PGS 37²: guideline for the safe storage of lithium-based energy carriers

The Living Environment Information Point (IPLO) describes on its website how business and government can already use PGS 37².

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