Notice2024-19608
Superfund Tax on Chemical Substances; Request To Modify List of Taxable Substances; Notice of Filing for Propylene Glycol Methyl Ether Acetate
Primary source
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Published
September 3, 2024
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This notice of filing announces that a petition has been filed requesting that propylene glycol methyl ether acetate be added to the list of taxable substances. This notice of filing also requests comments on the petition. This notice of filing is not a determination that the list of taxable substances is modified.
Full Text
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<title>Federal Register, Volume 89 Issue 170 (Tuesday, September 3, 2024)</title>
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[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Notices]
[Pages 71789-71790]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19608]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Superfund Tax on Chemical Substances; Request To Modify List of
Taxable Substances; Notice of Filing for Propylene Glycol Methyl Ether
Acetate
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of filing and request for comments.
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SUMMARY: This notice of filing announces that a petition has been filed
[[Page 71790]]
requesting that propylene glycol methyl ether acetate be added to the
list of taxable substances. This notice of filing also requests
comments on the petition. This notice of filing is not a determination
that the list of taxable substances is modified.
DATES: Written comments and requests for a public hearing must be
received on or before November 4, 2024.
ADDRESSES: Commenters are encouraged to submit public comments or
requests for a public hearing relating to this petition electronically
via the Federal eRulemaking Portal at <a href="http://www.regulations.gov">http://www.regulations.gov</a>
(indicate public docket number IRS-2024-0041 or propylene glycol methyl
ether acetate) by following the online instructions for submitting
comments. Comments cannot be edited or withdrawn once submitted to the
Federal eRulemaking Portal. Alternatively, comments and requests for a
public hearing may be mailed to: Internal Revenue Service, Attn:
CC:PA:01:PR (Notice of Filing for Propylene Glycol Methyl Ether
Acetate), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington,
DC 20044. All comments received are part of the public record and
subject to public disclosure. All comments received will be posted
without change to <a href="http://www.regulations.gov">www.regulations.gov</a>, including any personal
information provided. You should submit only information that you wish
to make publicly available. If a public hearing is scheduled, notice of
the time and place for the hearing will be published in the Federal
Register.
FOR FURTHER INFORMATION CONTACT: Camille Edwards Bennehoff at (202)
317-6855 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Request To Add Substance to the List
(a) Overview. A petition was filed pursuant to Rev. Proc. 2022-26
(2022-29 I.R.B. 90), as modified by Rev. Proc. 2023-20 (2023-15 I.R.B.
636), requesting that propylene glycol methyl ether acetate be added to
the list of taxable substances under section 4672(a) of the Internal
Revenue Code (List). The petition requesting the addition of propylene
glycol methyl ether acetate to the List is based on weight and contains
the information detailed in paragraph (b) of this document. The
information is provided for public notice and comment pursuant to
section 9 of Rev. Proc. 2022-26. The publication of petition
information in this notice of filing is not a determination and does
not constitute Treasury Department or IRS confirmation of the accuracy
of the information published.
(b) Petition Content.
(1) Substance name: Propylene glycol methyl ether acetate.
(2) Petitioner: The Dow Chemical Company, an importer and exporter
of propylene glycol methyl ether acetate.
(3) Proposed classification numbers:
(i) HTSUS number: 2915.39.90.00.
(ii) Schedule B number: 2915.39.9500.
(iii) CAS number: 108-65-6.
(4) Petition filing dates:
(i) Petition filing date for purposes of making a determination:
June 13, 2024.
(ii) Petition filing date for purposes of section 11.02 of Rev.
Proc. 2022-26, as modified by section 3 of Rev. Proc. 2023-20: July 1,
2022.
(5) Description from petition: According to the petition, propylene
glycol methyl ether acetate is an esterification product of propylene
glycol methyl ether and acetic acid. Propylene glycol methyl ether
acetate, a glycol ether, is a liquid used in a variety of applications
including coatings and cleaning.
Propylene glycol methyl ether acetate is made from propylene,
chlorine, sodium hydroxide, and methane. Taxable chemicals constitute
93.00 percent by weight of the materials used to produce this
substance.
(6) Process identified in petition as predominant method of
production of substance: Glycol ethers are predominantly produced by
reacting an epoxide (typically ethylene oxide or propylene oxide) with
an alcohol; this reaction process is referred to as alkoxylation.
Propylene glycol methyl ether acetate is made by esterification of
propylene glycol methyl ether and acetic acid. Propylene glycol methyl
ether is made via the alkoxylation process (also known as ring opening
of an epoxide) using methanol and propylene oxide. Methanol is made
from syngas (carbon monoxide and dihydrogen). Carbon monoxide (CO) and
dihydrogen (H<INF>2</INF>) are made by steam-methane reforming
(CH<INF>4</INF> and H<INF>2</INF>O). Propylene oxide is made by
hydrochlorination (chlorine (Cl<INF>2</INF>), propylene
(C<INF>3</INF>H<INF>6</INF>), and sodium hydroxide (NaOH)). Acetic acid
is made via the carbonylation of methanol with carbon monoxide.
Additional information on the production process:
<bullet> The propylene glycol methyl ether alkoxylation reaction
(methanol + propylene oxide) is base catalyzed, using a small amount of
metal hydroxide to produce methoxide. Once methoxide is made, it is
regenerated following conversion to the product in the presence of
propylene oxide. Regenerated methoxide in the presence of propylene
oxide will perpetually react until all propylene oxide is consumed or
the reaction is halted through the use of controls.
[cir] Since the amount of metal hydroxide used to produce propylene
glycol methyl ether is very small, the metal hydroxide has been
excluded from the stoichiometric material consumption equation;
including the metal hydroxide would lead to a distorted conversion
factor.
<bullet> After the production of methanol from syngas, methanol is
reacted with CO to produce acetic acid. This process is commonly
referred to as carbonylation. The reaction is typically catalyzed by
either a rhodium or iridium-based catalyst and involves iodomethane as
a key intermediate.
<bullet> Acetic acid when combined with propylene glycol methyl
under specific conditions (temperature, pressure, pH, etc.) produces
propylene glycol methyl ether acetate. This reaction is commonly known
as esterification (or Fischer Esterification). Esterification typically
involves a basic or acid catalytic species and can generate water or an
aqueous hydroxide as byproduct depending on the pH. Once the final
reaction contents are dehydrated and separated, commercial grade
propylene glycol methyl ether acetate is obtained.
(7) Stoichiometric material consumption equation, based on process
identified as predominant method of production:
C<INF>3</INF>H<INF>6</INF> (propylene) + Cl<INF>2</INF> (chlorine) + 2
NaOH (sodium hydroxide) + 3 CH<INF>4</INF> (methane) + H<INF>2</INF>O
(water) [rarr] 2 NaCl (sodium chloride) + 5 H<INF>2</INF> (hydrogen) +
C<INF>6</INF>H<INF>12</INF>O<INF>3</INF> (propylene glycol methyl ether
acetate)
(8) Tax rate calculated by Petitioner, based on Petitioner's
conversion factors for taxable chemicals used in production of
substance:
(i) Tax rate: $8.85 per ton.
(ii) Conversion factors: 0.32 for propylene, 0.54 for chlorine,
0.61 for sodium hydroxide, and 0.36 for methane.
(9) Public docket number: IRS-2024-0041.
Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of
Chief Counsel.
[FR Doc. 2024-19608 Filed 8-30-24; 8:45 am]
BILLING CODE 4830-01-P
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