Firm faces $1.1M fine for hazmat shipping violations

SARASOTA — Braille Battery Inc., a Sarasota supplier of high-end lithium ion batteries, faces a possible $1.1 million civil penalty for allegedly violating federal hazardous materials shipping regulations.

The potential fine comes from the Federal Aviation Administration. The agency, in a statement, says this is “the largest civil penalty the FAA has proposed for alleged violations of the requirements for offering an air shipment of lithium batteries.” The FAA previously assessed an $8,000 civil penalty against Braille in 2013 for shipping undeclared lithium ion batteries, the release adds.

A subsidiary of Grafoid, a global graphene/carbon research, development and investment company, Braille Battery provides lithium batteries for cars that race in Nascar, IndyCar and SuperGT, among other race series. Its products are available through a variety of online distributors in the U.S., overseas and at specialty retail stores. Founded in 2002, the company's name, Braille, “reflects the concept that advantages of weight reduction in racing are sometimes only felt, not seen,” according to its website.

Braille has 30 days after receiving the FAA's enforcement letter to respond to the agency, the release states.

"Braille takes the issues referenced in the communication from the FAA very seriously," the company says in an emailed statement sent to the Business Observer Dec. 13. "Braille has been working with the FAA for many months. The result of this interaction is that Braille has made some significant personnel changes; implemented a new and complete training program for employees in the handling, packaging, and shipment of lithium ion batteries; and completely overhauled its shipping materials and procedures."

"It is important to note that the issues identified by the FAA were rooted in personnel and procedures that predated the current ownership," the statement adds. "All efforts have been made to be responsive to the FAA. As a result, the company is currently in negotiations to resolve all outstanding issues with the government."

The FAA contends that on June 1, 2016, Braille offered four shipments, each containing a 24-volt lithium ion battery, to FedEx for air transportation. One of the batteries apparently caught fire while it was being transported on a FedEx truck, after it had been transported on an aircraft, resulting in the destruction of the vehicle.

The FAA, according to the statement, alleges the lithium batteries in these shipments did not meet testing standards contained in the U.N. Manual of Tests and Criteria or the U.S. Hazardous Material Regulations; were not equipped with a means of preventing dangerous reverse current flow; and were not in a proper condition for shipment. The FAA also alleges Braille failed to provide its employees with required hazardous materials training.

On June 8, 2016 the FAA informed Braille about the concerns in its training program. Less than a week later, FAA officials informed Braille executives there are regulations that prohibit the shipment of lithium ion batteries that are not proven to meet the U.N. testing standards, according to the release.

Yet Braille continued to offer shipments of the lithium ion batteries for air transportation on 14 separate occasions between July 14, 2016 and August 3, 2016, the FAA alleges. The shipments included a total of 77 batteries. Each shipment contained between one and 27 batteries, the agency contends.

“Improperly shipped hazardous material can pose serious threats to aircraft and the people on board,” FAA Administrator Michael Huerta says in the statement. “Adhering to the Hazardous Materials Regulations is critical to ensuring safety.”

The company, in its statement, says it "looks forward to continuing to serve its strong and loyal customers with its state-of-the-art lithium ion batteries for the automotive, racing, commercial and marine industries. The company's recent safety upgrades and procedures gives it the highest level of confidence that our products will be in complete compliance and will be delivered safely and efficiently."

(This story was updated to reflect the comment from Braille Battery.)