85455 Federal Register / Vol. 81, No. 228 / Monday, November 28, 2016 / Proposed Rules 
Example 1. (i) Taxpayer is engaged in the 
trade or business of wholesaling products A, 
B, and C. Taxpayer also manufactures a small quantity of identical products for sale to customers. Taxpayer treats its wholesaling and manufacturing activities as a single trade or business. Taxpayer uses the IPIC method described in paragraph (e)(3) of this section. Pursuant to its election, Taxpayer establishes dollar-value pools for the wholesale items purchased for resale under paragraph (c)(2)(i) of this section, based on the 2-digit commodity codes in Table 9 of the PPI Detailed Report. Taxpayer also establishes dollar-value pools for the manufactured items under paragraph (c)(2)(ii) of this section, based on the 2-digit commodity codes in Table 9 of the PPI Detailed Report. Taxpayer does not choose to use the 5- percent rules under paragraphs (c)(2)(i) and (ii) of this section. 
(ii) Even though Taxpayer has resale and 
manufactured items that share the same 2- digit commodity codes, under paragraph (c)(2)(iii) of this section, Taxpayer’s resale 
goods may not be included in the same IPIC pool as its manufactured goods. 
Example 2.(i) The facts are the same as in 
Example 1, except Taxpayer establishes three IPIC pools for its wholesale activities and three IPIC pools for its manufacturing activities. Further, Taxpayer chooses to use the 5-percent rules of paragraphs (c)(2)(i) and (ii) of this section. The percentage of total current-year cost of each IPIC pool to the current-year cost of all dollar-value pools for the trade or business is as follows: 
Percentage of total 
current-year cost of 
IPIC pool to cur-
rent-year cost of all 
dollar-value pools 
(%) 
Wholesaling Pools: 
Pool J .................... 90 
Pool K .................... 1 
Pool L .................... 1 
Manufacturing Pools: 
Pool M ................... 6 
Pool N .................... 1 
Pool O ................... 1 
100 
(ii) For purposes of applying the 5-percent 
rules to Taxpayer’s wholesaling operations under paragraph (c)(2)(i) of this section, because Pools K and Pool L each comprise less than 5 percent of the total current-year cost of all dollar-value pools, Pools K and L may be combined to form a single miscellaneous pool of wholesale goods (new Pool P). 
(iii) For purposes of applying the 5-percent 
rules to Taxpayer’s manufacturing operations under paragraph (c)(2)(ii) of this section, because Pools N and O each comprise less than 5 percent of the total current-year cost of all dollar-value pools, Pools N and O may be combined to form a single miscellaneous pool of manufactured goods (new Pool Q). 
(iv) Because Pool P comprises less than 5 
percent of the total current-year cost of all dollar-value pools, under paragraph (c)(2)(i) of this section, Pool P may be combined with Pool J, the largest IPIC pool of resale goods. 
(v) Although Pool Q also comprises less 
than 5 percent of the total current-year cost of all dollar-value pools, under paragraph (c)(2)(ii) of this section, Pool Q may not be combined with Pool J, the largest pool of resale goods, or Pool M, the largest pool of manufactured goods. 
* * * * * 
(e) * * * 
(3) * * * (ii) Eligibility. Any taxpayer electing 
to use the dollar-value LIFO method may elect to use the IPIC method. Except as provided in other published guidance, a taxpayer that elects to use the IPIC method for a specific trade or business must use that method to account for all items of dollar-value LIFO inventory. 
* * * * * 
(v) Effective/applicability date. The 
rules of this paragraph (e)(3) and 
paragraphs (b)(4) and (c)(2) of this section are applicable for taxable years ending on or after the date the Treasury decision adopting these rules as final regulations is published in the Federal Register. 
* * * * * 
John Dalrymple, 
Deputy Commissioner for Services and 
Enforcement. 
[FR Doc. 2016–28375 Filed 11–25–16; 8:45 am] 
BILLING CODE 4830–01–P 
ENVIRONMENTAL PROTECTION 
AGENCY 
40 CFR Part 52 
[EPA–R03–OAR–2016–0454; FRL–9955–51- 
Region 3] 
Approval and Promulgation of Air 
Quality Implementation Plans; Maryland; New Regulations for Architectural and Industrial Maintenance Coatings 
AGENCY : Environmental Protection 
Agency (EPA). 
ACTION : Proposed rule. 
SUMMARY : The Environmental Protection 
Agency (EPA) is proposing to approve a state implementation plan (SIP) revision submitted by the State of Maryland. This revision pertains to a provision establishing new volatile organic compound (VOC) content limits and standards for architectural and industrial maintenance (AIM) coatings available for sale and use in Maryland. This action is being taken under the Clean Air Act (CAA). DATES : Written comments must be 
received on or before December 28, 
2016. 
ADDRESSES : Submit your comments, 
identified by Docket ID No. EPA–R03– OAR–2016–0454 at http://www.regulations.gov, or via email to 
pino.maria@epa.gov. For comments 
submitted at Regulations.gov, follow the online instructions for submitting 
comments. Once submitted, comments cannot be edited or removed from Regulations.gov. For either manner of submission, EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be confidential business information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. EPA will generally not consider comments or comment contents located outside of the primary submission (i.e. on the web, cloud, or other file sharing system). For additional submission methods, please contact the person identified in the 
FOR FURTHER  
INFORMATION CONTACT section. For the 
full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/ commenting-epa-dockets. 
FOR FURTHER INFORMATION CONTACT : 
Irene Shandruk, (215) 814–2166, or by email at shandruk.irene@epa.gov. 
SUPPLEMENTARY INFORMATION : 
I. Background 
In 2001, the Ozone Transport 
Commission (OTC), in collaboration with the Ozone Transport Region (OTR) states, developed several emission reduction measures, including a VOC model rule for AIM coatings (known as the Phase I AIM model rule), which addressed VOC reductions in the OTR. In 2004, consistent with the OTC Phase I AIM model rule, Maryland adopted COMAR 26.11.33—Architectural Coatings, which established VOC 
content limits, recordkeeping and labeling requirements, and standard practices for use and application of coatings used in architectural and industrial maintenance. 
The Phase I AIM model rule was 
replaced with an amended OTC model rule in 2011 (known as the Phase II AIM model rule). The Phase II AIM model rule was developed for states that needed additional VOC emission 
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1The TSD contains a comparison of VOC content 
limits in COMAR 26.11.39 and COMAR 26.11.33, 
demonstrating additional VOC emission reduction potential from COMAR 26.11.39 for this source category. The TSD also describes some AIM categories that were consolidated or added in the new COMAR 26.11.39 compared to COMAR 26.11.33, which EPA had previously approved for the Maryland SIP. However, none of these adjustments removed any VOC content limits from the Maryland regulation, which EPA had approved previously into the Maryland SIP. reductions in order to meet the ozone 
national ambient air quality standards (NAAQS). Consistent with the Phase II AIM model rule, Maryland developed and adopted COMAR 26.11.39— 
Architectural and Industrial Maintenance Coatings, which is an updated version of COMAR 26.11.33. 
II. Summary of SIP Revision 
On June 27, 2016, the Maryland 
Department of the Environment (MDE) 
submitted to EPA a SIP revision containing new AIM regulations .01 
through .08 under COMAR 26.11.39— Architectural and Industrial Maintenance Coatings. The new regulations apply to any person who manufactures, blends, thins, supplies, sells, offers for sale, repackages for sale, or applies architectural and industrial maintenance coatings in Maryland. Maryland’s new AIM regulations establish more stringent VOC content limits (Table 1) and standards for AIM coating categories than in COMAR 26.11.33, as well as establish container labeling requirements, reporting requirements, and compliance procedures. The requirements of COMAR 26.11.39 will supersede those of COMAR 26.11.33. A more detailed explanation and analysis of COMAR 26.11.39 can be found in the Technical Support Document (TSD) for this rulemaking under Docket ID No. EPA– R03–OAR–2016–0454.
1 
TABLE 1—VOC C ONTENT LIMITS UNDER COMAR 26.11.39 FORVARIOUS AIM C OATING CATEGORIES  
Architectural and industrial maintenance coatings category Maryland’s new 
VOC content limits 
(grams/liter) under 
COMAR 26.11.39 
Flat coatings .................................................................................................................. .............................................................. 50 
Non-flat coatings .............................................................................................................. ............................................................ 100 
Non-flat—high gloss coatings ................................................................................................... ................................................... 150 
Specialty Coatings: 
Aluminum roof coatings ......................................................................................................... ...................................................... 450 
Basement specialty coatings .................................................................................................... ................................................... 400 
Bituminous roof coatings ....................................................................................................... ...................................................... 270 
Bituminous roof primers ........................................................................................................ ....................................................... 350 
Bond breakers .................................................................................................................. ........................................................... 350 
Calcimine recoater ............................................................................................................. .......................................................... 475 
Concrete curing compounds ...................................................................................................... .................................................. 350 
Concrete/masonry sealers ....................................................................................................... .................................................... 100 
Concrete surface retarders ..................................................................................................... ..................................................... 780 
Conjugated oil varnish ......................................................................................................... ........................................................ 450 
Conversion varnish ............................................................................................................. ......................................................... 725 
Driveway sealers ............................................................................................................... .......................................................... 50 
Dry fog coatings ............................................................................................................... ............................................................ 150 
Faux finishing coatings ........................................................................................................ ........................................................ 350 
Fire-resistive coatings ........................................................................................................ .......................................................... 350 
Floor coatings ................................................................................................................. ............................................................. 100 
Form-release coatings .......................................................................................................... ....................................................... 250 
Graphic arts coatings (Sign paints) ............................................................................................ ................................................. 500 
High-temperature coatings ...................................................................................................... .................................................... 420 
Impacted immersion coatings .................................................................................................... .................................................. 780 
Industrial maintenance coatings ................................................................................................ .................................................. 250 
Low-solids coatings ............................................................................................................ ......................................................... 120 
Magnesite cement coatings ...................................................................................................... ................................................... 450 
Mastic texture coatings ........................................................................................................ ........................................................ 100 
Metallic pigmented coatings .................................................................................................... .................................................... 500 
Multi-color coatings ........................................................................................................... ........................................................... 250 
Nuclear coatings ............................................................................................................... ........................................................... 450 
Pre-treatment wash primers ..................................................................................................... ................................................... 420 
Primers, sealers, and undercoaters ............................................................................................. ............................................... 100 
Reactive penetrating sealers ................................................................................................... .................................................... 350 
Reactive penetrating carbonate stone sealers ................................................................................... ......................................... 500 
Recycled coatings .............................................................................................................. .......................................................... 250 
Roof coatings .................................................................................................................. ............................................................. 250 
Rust preventative coatings ..................................................................................................... ..................................................... 250 
Shellacs: 
Clear ............................................................................................................................................................................................ 730 
Opaque ........................................................................................................................................................................................ 550 
Specialty primers, sealers, and undercoaters ................................................................................... .......................................... 100 
Stains ........................................................................................................................................................................................... 250 
Stone consolidant .............................................................................................................. .......................................................... 450 
Swimming pool coatings ......................................................................................................... ..................................................... 340 
Thermoplastic rubber coatings and mastic ....................................................................................... .......................................... 550 
Traffic marking coatings ....................................................................................................... ....................................................... 100 
Tub and tile refinish coatings ................................................................................................. ..................................................... 420 
Waterproofing membranes ........................................................................................................ .................................................. 250 
Wood coatings .................................................................................................................. ........................................................... 275 
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TABLE 1—VOC C ONTENT LIMITS UNDER COMAR 26.11.39 FORVARIOUS AIM C OATING CATEGORIES —Continued 
Architectural and industrial maintenance coatings category Maryland’s new 
VOC content limits 
(grams/liter) under 
COMAR 26.11.39 
Wood preservatives ............................................................................................................. ........................................................ 350 
Zinc-rich primers .............................................................................................................. ............................................................ 340 
III. Proposed Action 
EPA’s review of this material 
indicates that Maryland’s new 
regulations for AIM coatings under COMAR 26.11.39 are based on the OTC’s Phase II AIM model rule and establish more stringent VOC content limits and requirements for certain AIM coating categories compared to COMAR 26.11.33. Therefore, these new regulations should lead to additional VOC reductions from this category. Additionally, Maryland’s new AIM coating regulations are more stringent than the federal standards found at 40 CFR 59, subpart D—National Volatile Organic Compound Emission Standards for Architectural Coatings, which in 1998 established nationwide VOC content limits and other requirements for manufacturers of architectural coatings. EPA expects more stringent VOC content limits will reduce emissions of VOCs, a precursor to ozone formation. Reduced VOC emissions and reduced ozone formation will assist Maryland with attaining and maintaining the ozone NAAQS. EPA proposes to add COMAR 26.11.39 to the Maryland SIP as a SIP strengthening measure. Pursuant to section 110 of the CAA, EPA is proposing to approve Maryland’s new AIM coating provision, COMAR 26.11.39, which was submitted on June 27, 2016, as a revision to the Maryland SIP. EPA is soliciting public comments on the issues discussed in this document. These comments will be considered before taking final action. 
IV. Incorporation by Reference 
In this proposed rule, EPA is 
proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, EPA is proposing to incorporate by reference Maryland’s new regulations for AIM coatings under COMAR 26.11.39. EPA has made, and will continue to make, these materials generally available through http://www.regulations.gov and/or at the EPA 
Region III Office (please contact the person identified in the 
FOR FURTHER  
INFORMATION CONTACT section of this 
preamble for more information). V. Statutory and Executive Order Reviews 
Under the CAA, the Administrator is 
required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA’s role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely approves state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action: 
•Is not a ‘‘significant regulatory 
action’’ subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011); 
•does not impose an information 
collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.); 
•is certified as not having a 
significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.); 
•does not contain any unfunded 
mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104–4); 
•does not have federalism 
implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999); 
•is not an economically significant 
regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997); 
•is not a significant regulatory action 
subject to Executive Order 13211 (66 FR 28355, May 22, 2001); 
•is not subject to requirements of 
Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and 
•does not provide EPA with the 
discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994). 
In addition, this proposed rule 
pertaining to Maryland’s new regulations for AIM coatings under COMAR 26.11.39, does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the state, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law. 
List of Subjects in 40 CFR Part 52 
Environmental protection, Air 
pollution control, Incorporation by 
reference, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds. 
Authority: 42 U.S.C. 7401 et seq. 
Dated: November 10, 2016. 
Shawn M. Garvin, 
Regional Administrator, Region III. 
[FR Doc. 2016–28436 Filed 11–25–16; 8:45 am] 
BILLING CODE 6560–50–P 
ENVIRONMENTAL PROTECTION 
AGENCY 
40 CFR Part 62 
[EPA–R03–OAR–2016–0053; FRL–9955–69- 
Region 3] 
Approval and Promulgation of Air 
Quality Plans; State of Maryland; Control of Emissions From Existing Hospital/Medical/Infectious Waste Incineration Units 
AGENCY : Environmental Protection 
Agency (EPA). 
ACTION : Proposed rule. 
SUMMARY : The Environmental Protection 
Agency (EPA) is proposing to approve a section 111(d)/129 plan submitted by the State of Maryland for existing hospital/medical/infectious waste incineration (HMIWI) units. The section 111(d)/129 plan contains revisions to a previously-approved state plan for existing HMIWI units and was submitted as a result of the October 6, 2009 promulgation of federal new source performance standards (NSPS) and emission guidelines for HMIWI 
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