Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Rules and Regulations 50891 

for the organizational expenses and must 

change its method under § 1.446–1(e) and the 

applicable general administrative procedures 

in effect in 2013. 

Example 5. Expenditures of more than 

$50,000 but less than or equal to $55,000. 

The facts are the same as in Example 1 

except that Partnership X incurs 

organizational expenses of $54,500. Under 

paragraph (b)(2) of this section, Partnership 

X is deemed to have elected to amortize 

organizational expenses under section 709(b) 

in 2011. Therefore, Partnership X may deduct 

$500 ($5,000¥$4,500) and the portion of the 

remaining $54,000 that is allocable to July 

through December of 2011 ($54,000/180 × 6 

= $1,800) in 2011, the taxable year in which 

Partnership X begins business. Corporation X 

may amortize the remaining $52,200 

($54,000¥$1,800 = $52,200) ratably over the 

remaining 174 months. 

Example 6. Expenditures of more than 

$55,000. The facts are the same as in 

Example 1 except that Partnership X incurs 

organizational expenses of $450,000. Under 

paragraph (b)(2) of this section, Partnership 

X is deemed to have elected to amortize 

organizational expenses under section 709(b) 

in 2011. Therefore, Partnership X may deduct 

the amounts allocable to July through 

December of 2011 ($450,000/180 × 6 = 

$15,000) in 2011, the taxable year in which 

Partnership X begins business. Corporation X 

may amortize the remaining $435,000 

($450,000¥$15,000 = $435,000) ratably over 

the remaining 174 months. 

(5) Effective/applicability date. This 

section applies to organizational 

expenses paid or incurred after August 

16, 2011. However, taxpayers may apply 

all the provisions of this section to 

organizational expenses paid or 

incurred after October 22, 2004, 

provided that the period of limitations 

on assessment of tax for the year the 

election under paragraph (b)(2) of this 

section is deemed made has not expired. 

For organizational expenses paid or 

incurred on or before September 8, 

2008, taxpayers may instead apply 

§ 1.709–1, as in effect prior to that date 

(§ 1.709–1 as contained in 26 CFR part 

1 edition revised as of April 1, 2008). 

§ 1.709–1T [Removed] 

■ Par. 7. Section 1.709–1T is removed. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: August 9, 2011. 

Emily S. McMahon, 

Acting Assistant Secretary of the Treasury 

(Tax Policy). 

[FR Doc. 2011–20872 Filed 8–16–11; 8:45 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2011–0545; FRL–9447–4] 

Revisions to the California State 

Implementation Plan, South Coast Air 

Quality Management District 

(SCAQMD) 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: EPA is finalizing approval of 

revisions to the SCAQMD portion of the 

California State Implementation Plan 

(SIP). These revisions were proposed in 

the Federal Register on October 5, 2010 

and concern volatile organic compound 

(VOC) emissions from architectural 

coatings. We are approving a local rule 

that regulates these emission sources 

under the Clean Air Act as amended in 

1990 (CAA or the Act). 

DATES: Effective Date: This rule is 

effective on September 16, 2011. 

ADDRESSES: EPA has established docket 

number EPA–R09–OAR–2011–0545 for 

this action. Generally, documents in the 

docket for this action are available 

electronically at http:// 

www.regulations.gov or in hard copy at 

EPA Region IX, 75 Hawthorne Street, 

San Francisco, California. While all 

documents in the docket are listed at 

http://www.regulations.gov, some 

information may be publicly available 

only at the hard copy location (e.g., 

copyrighted material, large maps, multivolume reports), and some may not be 

available in either location (e.g., 

confidential business information 

(CBI)). To inspect the hard copy 

materials, please schedule an 

appointment during normal business 

hours with the contact listed in the FOR

FURTHER INFORMATION CONTACT section. 

FOR FURTHER INFORMATION CONTACT: 

David Grounds, EPA Region IX, (415) 

972–3019, grounds.david@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document, ‘‘we,’’ ‘‘us’’ 

and ‘‘our’’ refer to EPA. 

Table of Contents 

I. Proposed Action 

II. Public Comments and EPA Responses 

III. EPA Action 

IV. Statutory and Executive Order Reviews 

I. Proposed Action 

On October 5, 2010 (75 FR 61367), 

EPA proposed to approve the following 

rule into the California SIP. 

Local agency Rule No. Rule title Adopted Submitted 

SCAQMD .......... 1113 Architectural Coatings ................................................................................... 07/13/07 03/07/08 

We proposed to approve this rule 

because we determined that it complied 

with the relevant CAA requirements. 

Our proposed action contains more 

information on the rule and our 

evaluation. 

II. Public Comments and EPA 

Responses 

EPA’s proposed action provided a 30- 

day public comment period. During this 

period, we received comments from the 

following parties. 

1. Dan Pourreau and Dave Roznowski, 

Lyondell Chemical; letter dated October 

25, 2010. 

2. David Darling, American Coatings 

Association; letter dated November 3, 

2010. 

The comments and our responses are 

summarized below. 

Comment #1: Lyondell Chemical 

commented that, in 2009, they 

requested that EPA remove all reporting 

and recordkeeping requirements for 

tertiary-butyl acetate (TBAc), but has 

not yet received a formal response from 

EPA. Lyondell’s comment requests that 

EPA respond to the 2009 request by 

removing the unique tracking 

requirement for TBAc and moving TBAc 

to the 40 CFR 51.100(s)(1) list of exempt 

compounds. Lyondell further requests 

that EPA remove the proposed 

recommendation to include a 

recordkeeping requirement for future 

Rule 1113 revisions, because this is 

complicating the rule development 

process and making TBAc a less 

attractive VOC-compliance option than 

it should be regarding Rule 1113 as well 

as coatings subject to other South Coast 

rules. 

In support of these requests, Lyondell 

states that EPA is not using the TBAc 

data for modeling purposes and does 

not require reporting for any other 

exempt compound with ‘‘borderline’’ 

reactivity, that TBAc has low toxicity 

and negligible environmental impact, 

and that reporting and tracking its 

emissions does not help protect human 

health or the environment. Lyondell 

also states most States do not track and 

report TBAc emissions. Lyondell feels 

that tracking and reporting TBAc 

emissions is a new and burdensome 


Emcdonald on DSK2BSOYB1PROD with RULES
50892 Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Rules and Regulations 

requirement, and that Lyondell has 

provided and continues to provide 

TBAc sales data by State to the EPA, so 

requiring that users and the States also 

report emissions is redundant, an 

unnecessary bureaucratic burden, and 

fraught with error. 

American Coatings Association (ACA) 

similarly objects to EPA’s recordkeeping 

recommendations on the grounds that 

the reporting and recordkeeping 

requirements created in 2004 

specifically for TBAc in 40 CFR 

51.100(s)(5) are burdensome, arbitrary, 

contrary to the goals of the CAA, and 

should be rescinded. 

Response #1: Similar comments were 

summarized and replied to in EPA’s 

final action to revise treatment of TBAc 

in 40 CFR 51.100(s)(5) (See 69 FR 

69298, November 29, 2004). The 

comments have not provided new 

information that changes EPA’s 

previous response to these issues. In 

addition, we note that TBAc is only 

addressed in recommendations 

discussed in the preamble to today’s 

action. Today’s final action does not 

require any revisions to South Coast’s 

treatment of TBAc. 

Comment #2: ACA states it is 

questionable whether the Averaging 

Compliance Option is an Economic 

Incentive Program (EIP) as defined in 

EPA’s guidance. Emissions occur during 

the activity of applying coatings, which 

is not regulated under Rule 1113. The 

limits of Rule 1113 apply to the VOC 

contents, not emissions, of coating 

expressed as mass of VOC per volume 

of coating, not activity level. ACA 

further comments that, given the 

extremely low limits of Rule 1113, 

additional discounting is not feasible for 

specific compliance, averaging 

compliance, or a combination of the 

two. 

Response #2: As ACA noted, part of 

the regulatory approach in architectural 

coatings requires manufacturers to meet 

specified VOC standards in their 

products. EPA’s EIP guidance applies 

broadly and is not limited to only direct 

emitters of pollution. EIP is defined as 

a program which may include State 

established measures directed toward 

stationary, area, and/or mobile sources, 

to achieve emissions reductions 

milestones, to attain and maintain 

ambient air quality standards, and/or 

provide more flexible, lower-cost 

approaches to meeting environmental 

goals. The Averaging Compliance 

Option in Rule 1113 provides 

manufacturers a more flexible and 

potentially lower cost approaches to 

meeting the standards. As such, Rule 

1113 is an EIP. Please see page 158 of 

the EIP Guidance (see http:// 

www.epa.gov/ttn/oarpg/t1/memoranda/ 

eipfin.pdf). 

Comment #3: ACA states that a 

shorter averaging period is not feasible 

because of the complexity involved in 

gathering and verifying retail sales data, 

and making program adjustments to 

ensure continuous compliance. 

Response #3: The recommendation 

was made based on the EIP guidance. 

However, after a review of the 

provision, we feel an averaging period 

longer than 30 days is acceptable for 

this rule. Therefore, we are no longer 

recommending the district reduce the 

averaging period to 30 days or less and 

we have communicated this to the 

district. 

III. EPA Action 

No comments were submitted that 

change our assessment that the 

submitted rules comply with the 

relevant CAA requirements. Therefore, 

as authorized in section 110(k)(3) of the 

Act, EPA is fully approving these rules 

into the California SIP. 

IV. Statutory and Executive Order 

Reviews 

Under the Clean Air Act, the 

Administrator is required to approve a 

SIP submission that complies with the 

provisions of the Act 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 Clean Air Act. 

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 action: 

• Is not a ‘‘significant regulatory 

action’’ subject to review by the Office 

of Management and Budget under 

Executive Order 12866 (58 FR 51735, 

October 4, 1993); 

• 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 Clean Air Act; 

and 

• Does not provide EPA with the 

discretionary authority to address 

disproportionate human health or 

environmental effects with practical, 

appropriate, and legally permissible 

methods under Executive Order 12898 

(59 FR 7629, February 16, 1994). 

In addition, this rule 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. 

The Congressional Review Act, 5 

U.S.C. 801 et seq., as added by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996, generally provides 

that before a rule may take effect, the 

agency promulgating the rule must 

submit a rule report, which includes a 

copy of the rule, to each House of the 

Congress and to the Comptroller General 

of the United States. EPA will submit a 

report containing this action and other 

required information to the U.S. Senate, 

the U.S. House of Representatives, and 

the Comptroller General of the United 

States prior to publication of the rule in 

the Federal Register. A major rule 

cannot take effect until 60 days after it 

is published in the Federal Register. 

This action is not a ‘‘major rule’’ as 

defined by 5 U.S.C. 804(2). 

Under section 307(b)(1) of the Clean 

Air Act, petitions for judicial review of 

this action must be filed in the United 

States Court of Appeals for the 

appropriate circuit by October 17, 2011. 

Filing a petition for reconsideration by 

the Administrator of this final rule does 

not affect the finality of this action for 

the purposes of judicial review nor does 

it extend the time within which a 

petition for judicial review may be filed, 

and shall not postpone the effectiveness 

of such rule or action. This action may 

not be challenged later in proceedings to 

enforce its requirements (see section 

307(b)(2)). 


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Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Rules and Regulations 50893 

List of Subjects in 40 CFR Part 52 

Environmental protection, Air 

pollution control, Incorporation by 

reference, Intergovernmental relations, 

Reporting and recordkeeping 

requirements, Volatile organic 

compounds. 

Dated: July 18, 2011. 

Jared Blumenfeld, 

Regional Administrator, Region IX. 

Part 52, Chapter I, Title 40 of the Code 

of Federal Regulations is amended as 

follows: 

PART 52—[AMENDED] 

■ 1. The authority citation for Part 52 

continues to read as follows: 

Authority: 42 U.S.C. 7401 et seq. 

Subpart F—California 

■ 2. Section 52.220 is amended by 

adding paragraph (c)(354)(i)(A)(5) to 

read as follows: 

§ 52.220 Identification of plan. 

* * * * * 

(c) * * * 

(354) * * * 

(i) * * * 

(A) * * * 

(5) Rule 1113, ‘‘Architectural 

Coatings,’’ amended on July 13, 2007. 

* * * * * 

[FR Doc. 2011–20842 Filed 8–16–11; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 180 

[EPA–HQ–OPP–2010–0725; FRL–8884–4] 

Fluoxastrobin; Pesticide Tolerances 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This regulation establishes a 

tolerance for residues of fluoxastrobin in 

or on squash/cucumber subgroup 9B. 

Arysta LifeScience North America, LLC 

requested this tolerance under the 

Federal Food, Drug, and Cosmetic Act 

(FFDCA). 

DATES: This regulation is effective 

August 17, 2011. Objections and 

requests for hearings must be received 

on or before October 17, 2011, and must 

be filed in accordance with the 

instructions provided in 40 CFR part 

178 (see also Unit I.C. of the 

SUPPLEMENTARY INFORMATION). 

ADDRESSES: EPA has established a 

docket for this action under docket 

identification (ID) number EPA–HQ– 

OPP–2010–0725. All documents in the 

docket are listed in the docket index 

available at http://www.regulations.gov. 

Although listed in the index, some 

information is not publicly available, 

e.g., Confidential Business Information 

(CBI) or other information whose 

disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, is not placed on 

the Internet and will be publicly 

available only in hard copy form. 

Publicly available docket materials are 

available in the electronic docket at 

http://www.regulations.gov, or, if only 

available in hard copy, at the OPP 

Regulatory Public Docket in Rm. S– 

4400, One Potomac Yard (South Bldg.), 

2777 S. Crystal Dr., Arlington, VA. The 

Docket Facility is open from 8:30 a.m. 

to 4 p.m., Monday through Friday, 

excluding legal holidays. The Docket 

Facility telephone number is (703) 305– 

5805. 

FOR FURTHER INFORMATION CONTACT: 

Heather Garvie, Registration Division 

(7505P), Office of Pesticide Programs, 

Environmental Protection Agency, 1200 

Pennsylvania Ave., NW., Washington, 

DC 20460–0001; telephone number: 

(703) 308–0034; e-mail address: 

garvie.heather@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. General Information 

A. Does this action apply to me? 

You may be potentially affected by 

this action if you are an agricultural 

producer, food manufacturer, or 

pesticide manufacturer. Potentially 

affected entities may include, but are 

not limited to those engaged in the 

following activities: 

• Crop production (NAICS code 111). 

• Animal production (NAICS code 

112). 

• Food manufacturing (NAICS code 

311). 

• Pesticide manufacturing (NAICS 

code 32532). 

This listing is not intended to be 

exhaustive, but rather to provide a guide 

for readers regarding entities likely to be 

affected by this action. Other types of 

entities not listed in this unit could also 

be affected. The North American 

Industrial Classification System 

(NAICS) codes have been provided to 

assist you and others in determining 

whether this action might apply to 

certain entities. If you have any 

questions regarding the applicability of 

this action to a particular entity, consult 

the person listed under FOR FURTHER

INFORMATION CONTACT. 

B. How can I get electronic access to 

other related information? 

You may access a frequently updated 

electronic version of EPA’s tolerance 

regulations at 40 CFR part 180 through 

the Government Printing Office’s e-CFR 

site at http://ecfr.gpoaccess.gov/cgi/t/ 

text/text-idx?&c=ecfr&tpl=/ecfrbrowse/ 

Title40/40tab_02.tpl. 

C. How can I file an objection or hearing 

request? 

Under FFDCA section 408(g), 21 

U.S.C. 346a, any person may file an 

objection to any aspect of this regulation 

and may also request a hearing on those 

objections. You must file your objection 

or request a hearing on this regulation 

in accordance with the instructions 

provided in 40 CFR part 178. To ensure 

proper receipt by EPA, you must 

identify docket ID number EPA–HQ– 

OPP–2010–0725 in the subject line on 

the first page of your submission. All 

objections and requests for a hearing 

must be in writing, and must be 

received by the Hearing Clerk on or 

before October 17, 2011. Addresses for 

mail and hand delivery of objections 

and hearing requests are provided in 40 

CFR 178.25(b). 

In addition to filing an objection or 

hearing request with the Hearing Clerk 

as described in 40 CFR part 178, please 

submit a copy of the filing that does not 

contain any CBI for inclusion in the 

public docket. Information not marked 

confidential pursuant to 40 CFR part 2 

may be disclosed publicly by EPA 

without prior notice. Submit a copy of 

your non-CBI objection or hearing 

request, identified by docket ID number 

EPA–HQ–OPP–2010–0725, by one of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the on-line 

instructions for submitting comments. 

• Mail: Office of Pesticide Programs 

(OPP) Regulatory Public Docket (7502P), 

Environmental Protection Agency, 1200 

Pennsylvania Ave., NW., Washington, 

DC 20460–0001. 

• Delivery: OPP Regulatory Public 

Docket (7502P), Environmental 

Protection Agency, Rm. S–4400, One 

Potomac Yard (South Bldg.), 2777 S. 

Crystal Dr., Arlington, VA. Deliveries 

are only accepted during the Docket 

Facility’s normal hours of operation 

(8:30 a.m. to 4 p.m., Monday through 

Friday, excluding legal holidays). 

Special arrangements should be made 

for deliveries of boxed information. The 

Docket Facility telephone number is 

(703) 305–5805. 


Emcdonald on DSK2BSOYB1PROD with RULES