As the demand for clean energy and transportation grows, so does the need for rechargeable batteries. Lithium-ion batteries are widely used, from small toys to electric cars to large energy storage systems. While some lithium-ion batteries are already subject to regulations, rechargeable batteries used in “micro-mobility devices” such as electric bikes and scooters are currently not subject to any federal safety standards. Some advocates contend that a lack of regulation has led to an increase in fires caused by poor quality, defective batteries. According to a report by CBS News New York, defective lithium-ion batteries have allegedly resulted in 400 fires, 300 injuries, and 12 deaths between 2019 and 2023 in New York City alone.
On March 24, 2023, Representative Ritchie Torres of New York introduced the “Setting Consumer Standards for Lithium-Ion Batteries Act” in the U.S. House of Representatives.[1] This bill would require the Consumer Product Safety Commission (“CPSC”) to devise product safety standards for rechargeable lithium-ion batteries within one year of enactment, specifically to protect against the risk of fires. The product safety standards would include regulations for chargers, cables, battery pack external terminals, micromobility device external terminals, and free-standing recharging stations.
Although the CPSC has not established any safety standards prior to this bill being introduced to Congress, it has interjected when necessary to highlight the hazards of improperly manufactured lithium-ion batteries. In December 2022, CPSC sent a letter to over 2000 businesses that operate in the lithium-ion space, urging those businesses to strive for compliance with applicable safety standards such as the Underwriters Laboratories (“UL”) “2272, Systems for Personal E-Mobility Devices”, and UL “2849, Standards for Safety for Electrical Systems for eBikes”. UL currently certifies electronic products that meet safety standards.[2]
On May 19, 2023, CPSC issued a statement by Commissioner Mary Boyle, which acknowledged the need for safety standards and a request for public comment on the current regime of lithium-ion safety standards. While speaking at a lithium-ion battery conference a few months later, Commissioner Boyle went even further and stated that CPSC would propose mandatory safety standards at some point in 2024. Of note, this announcement was made approximately seven months after the “Setting Consumer Standards for Lithium-Ion Batteries Act” was introduced in Congress.
Cities such as New York City have already implemented safety standards at the local level. It is likely that the standards set forth by CPSC would incorporate portions of already existing state safety standards. During a news conference while introducing the bill, Rep. Torres offered a similar sentiment towards incorporating the Underwriters Laboratories standards into the federal regulations.
In addition to current state and local standards, organizations such as the Department of Transportation (“DOT”) will likely be looked to for assistance with developing these standards. DOT currently designates lithium-ion batteries as hazardous materials and therefore subjects them to certain regulations such as the requirement that lithium-ion batteries be tested prior to being shipped into the United States. These testing requirements can be found in the United Nations Manual of Tests and Criteria. The most relevant test includes a thermal test where “[t]est cells and batteries are to be stored for at least six hours at a test temperature equal to 72 +/- 2 ℃, followed by storage for at least six hours t a test temperature equal to -40+/-2 ℃. The maximum time interval between test temperature extremes is 30 minutes. This procedure is to be repeated until 10 total cycles are complete, after which all test cells and batteries are to be stored for 24 hours at ambient temperature (20 +/- 5 ℃).” [3] On May 15, 2024, the bill was passed as amended by the house by a bipartisan vote of 374 to 34, and referred to the Senate Committee on Commerce, Science, and Transportation. On July 31st, 2024, the bill passed the Senate Committee favorably and without amendment and now awaits the vote in the Senate. Industry groups have also expressed their support for this bill. Consumer Reports commended the bill as a “critical step forward in protecting consumers from preventable fires.” New York City Fire Department Commissioner Laura Kavanagh stated that “this bill is the first step in what must be a long-term, nationwide conversation.” Until this bill is passed into law, the current state regime will control this space. Even if this bill is passed, advocates believe that any federal regulations put forth by the CPSC would operate as a “floor” or a framework for states to draft their own safety standards.
[1] That same bill was introduced in the Senate by Senator Kristen Gillibrand of New York on March 28, 2023.
[2] “Important Safety Information Concerning Micromobility Devices”, United States Consumer Product Safety Commission, December 19, 2022
[3] United Nations (“U.N.”) Manual of Tests and Criteria, Sub-section 38.3