[Federal Register Volume 89, Number 39 (Tuesday, February 27, 2024)]
[Notices]
[Pages 14558-14559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03897]


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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 Iso-butanol

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 
requesting that iso-butanol 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 April 29, 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 http://www.regulations.gov 
(indicate public docket number IRS-2024-0007 or iso-butanol) 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cannot be edited or withdrawn once submitted to the Federal eRulemaking 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 Iso-butanol), 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 www.regulations.gov, 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).

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 iso-butanol be added to the list of taxable 
substances under section 4672(a) of the Internal Revenue Code (List). 
The petition requesting the addition of iso-butanol 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.

[[Page 14559]]

    (b) Petition Content.
    (1) Substance name: Iso-butanol.
    The substance is also known as isobutanol, iso butyl alcohol, 2-
methyl propan-1-ol, or 2-methyl-1-propanol.
    (2) Petitioner: OQ Chemicals Corporation, an exporter of iso-
butanol.
    (3) Proposed classification numbers:
    (i) HTSUS number: 2905.14.50.10.
    (ii) Schedule B number: 2905.14.5010.
    (iii) CAS number: 78-83-1.
    (4) Petition filing dates:
    (i) Petition filing date for purposes of making a determination: 
January 25, 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: April 1, 
2023.
    (5) Description from petition: According to the petition, iso-
butanol is an isomer of n-butanol. Iso-butanol is a four carbon 
branched aliphatic alcohol. It is used as a solvent or in the 
manufacture of esters, such as isobutyl acetate, isobutyl acrylate, and 
isobutyl methacrylate.
    Iso-butanol is made from methane and propylene. Taxable chemicals 
constitute 78.41 percent by weight of the materials used to produce 
this substance.
    (6) Process identified in petition as predominant method of 
production of substance: Iso-butanol is co-produced by hydroformylation 
of propylene to produce both iso-butyraldehyde and n-butyraldehyde 
followed by hydrogenation of the aldehyde intermediates to the 
corresponding iso-butanol and n-butanol.
    An explanation of the predominant method of production:
    a. Partial oxidation of methane with oxygen to produce synthesis 
gas, a mixture of carbon monoxide and hydrogen. OQ uses a Partial 
Oxidation (POX) process that is non catalytic but operates at >1300 deg 
C and >40 atm pressure. Thus, synthesis gas is produced from methane 
and oxygen:
    CH<INF>4</INF> + \1/2\ O<INF>2</INF> [rarr] CO + 2H<INF>2</INF>
    b. Oxo process: Hydroformylation of propylene with carbon monoxide 
and hydrogen over a catalyst to produce iso-butyraldehyde. (Reaction 
also produces normal butyraldehyde simultaneously not shown for 
simplification; stoichiometry is the same for either the iso or the 
normal aldehyde.) Thus, iso-butyraldehyde is produced from propylene 
and syngas.
    CO + H<INF>2</INF> + CH<INF>2</INF> =CH-CH<INF>3</INF> [rarr] 
(CH<INF>3</INF>)<INF>2</INF>-CH-CHO
    c. Iso-butyraldehyde is hydrogenated with hydrogen over a catalyst. 
Thus, iso- butanol is produced from iso-butyraldehyde and hydrogen.
    (CH<INF>3</INF>)<INF>2</INF>-CH-CHO + H<INF>2</INF> [rarr] 
(CH<INF>3</INF>)<INF>2</INF>CHCH<INF>2</INF>OH
    (7) Stoichiometric material consumption equation, based on process 
identified as predominant method of production:
    CH<INF>4</INF> (methane) + \1/2\ O<INF>2</INF> + CH<INF>2</INF> = 
CH-CH<INF>3</INF> (propylene) [rarr] 
(CH<INF>3</INF>)<INF>2</INF>CHCH<INF>2</INF>OH (iso-butanol)
    (8) Tax rate calculated by Petitioner, based on Petitioner's 
conversion factors for taxable chemicals used in production of 
substance:
    (i) Tax rate: $7.07 per ton.
    (ii) Conversion factors: 0.22 for methane, 0.57 for propylene.
    (9) Public docket number: IRS-2024-0007.

Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of 
Chief Counsel.
[FR Doc. 2024-03897 Filed 2-26-24; 8:45 am]
BILLING CODE 4830-01-P