20158 Federal Register / Vol. 63, No. 78 /Thursday, April 23, 1998 / Proposed Rules

scheduled, notice of the date, time, and

place for the hearing will be published

in the Federal Register.

Drafting Information

The principal author of these

regulations is Robin Ehrenberg, Office of

Associate Chief Counsel (Employee

Benefits and Exempt Organizations).

However, other personnel from the IRS

and Treasury Department participated

in their development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR part 1 is

proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 continues to read in part as

follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 1.513–7 is added to

read as follows:

§ 1.513–7 Travel and tour activities of tax

exempt organizations.

(a) Travel tour activities that

constitute a trade or business, as defined

in § 1.513–1(b), and that are not

substantially related to the purposes for

which exemption has been granted to

the organization constitute an unrelated

trade or business with respect to that

organization. Whether travel tour

activities conducted by an organization

are substantially related to the

organization’s exempt purpose is

determined by looking at all relevant

facts and circumstances. Section 513(c)

and § 1.513–1(b) also apply to travel

tour activity. Application of the rules of

section 513(c) and § 1.513–1(b) may

result in different treatment for

individual tours within an

organization’s travel tour program.

(b) Examples. The provisions of this

section are illustrated by the following

examples:

Example 1. O, a university alumni

association, is exempt from federal income

tax under section 501(a) as an educational

organization described in section 501(c)(3).

As part of its activities, O operates a travel

tour program. The program is open to all

current members of O and their guests. O

works with travel agencies to schedule

approximately 10 tours annually to various

destinations around the world. Members of O

pay $X to the organizing travel agency to

participate in a tour. The travel agency pays

O a per person fee for each participant.

Although the literature advertising the tours

encourages O’s members to continue their

lifelong learning by joining the tours, and a

faculty member of O’s related university is

invited to join the tour as a guest of the

alumni association, none of the tours

includes any scheduled instruction or

curriculum related to the destinations being

visited. By arranging to make travel tours

available to its members, O is not

contributing importantly to the

accomplishment of its educational purpose.

Rather, O’s program is designed to generate

revenues for O by regularly offering its

members travel services. Accordingly, O’s

tour program is an unrelated trade or

business within the meaning of section

513(a) of the Code.

Example 2. N is an organization formed for

the purpose of educating individuals about

the geography and culture of the United

States. It is exempt from federal income tax

under section 501(a) as an educational and

cultural organization described in section

501(c)(3). N engages in a number of activities

to accomplish its purposes, including

offering courses and publishing periodicals

and books. As one of its activities, N

conducts study tours to national parks and

other locations within the United States. The

study tours are conducted by teachers and

other education professionals. The tours are

open to all who agree to participate in the

required study program. The study program

consists of community college level courses

related to the location being visited by the

tour. While the students are on the tour, five

or six hours per day are devoted to organized

study, preparation of reports, lectures,

instruction and recitation by the students.

Each tour group brings along a library of

material related to the subject being studied

on the tour. Examinations are given at the

end of each tour and N’s state board of

education awards academic credit for tour

participation. Because the tours offered by N

include a substantial amount of required

study, lectures, report preparation,

examinations and qualify for academic

credit, the tours clearly further N’s

educational purpose. Accordingly, N’s tour

program is not an unrelated trade or business

within the meaning of section 513(a) of the

Code.

Example 3. R is a section 501(c)(4) social

welfare organization devoted to advocacy on

a particular issue. On a regular basis

throughout the year, R organizes a travel tour

for its members to Washington, D.C. The

tours are priced to produce a profit for R.

While in Washington, the members follow a

schedule according to which they spend

substantially all of their time over several

days attending meetings with legislators and

government officials and receiving briefings

on policy developments related to the issue

that is R’s focus. Bringing members to

Washington to participate in advocacy on

behalf of the organization and learn about

developments relating to the organization s

principal focus is substantially related to R’s

social welfare purpose. Therefore, R’s

operation of the travel tours does not

constitute an unrelated trade or business.

Example 4. S is a membership organization

formed to foster cultural unity and to educate

X Americans about X, their country of origin.

It is exempt from federal income tax under

section 501(a) and is described in section

501(c)(3) as an educational and cultural

organization. Membership in S is open to all

Americans interested in the X heritage. As

part of its activities, S sponsors a program of

travel tours to X. All of S’s tours are priced

to produce a profit for S. The tours are

divided into two categories. Category A tours

are trips to X that are designed to immerse

participants in the X history, culture and

language. The itinerary is designed to have

participants spend substantially all of their

time while in X receiving instruction on the

X language, history and cultural heritage.

Destinations are selected because of their

historical or cultural significance or because

of instructional resources they offer. Category

B tours are also trips to X, but rather than

offering scheduled instruction, participants

are given the option of taking guided tours

of various X locations included in their

itinerary. Other than the optional guided

tours, Category B tours offer no instruction or

curriculum. Even if participants take all of

the tours offered, they have a substantial

amount of time free to pursue their own

interests once in X. Destinations of

principally recreational interest, rather than

historical or cultural interest, are regularly

included on Category B tour itineraries.

Based on the facts and circumstances,

sponsoring Category A tours is an activity

substantially related to S’s exempt purposes,

and does not constitute an unrelated trade or

business with respect to S. However,

sponsoring Category B tours does not

contribute importantly to S’s

accomplishment of its exempt purposes and

is designed to generate a profit for S.

Therefore, sponsoring the Category B tours

constitutes an unrelated trade or business

with respect to S.

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

[FR Doc. 98–10747 Filed 4–20–98; 2:48 pm]

BILLING CODE 4830–01–U

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 62

[NE 052–1052b; FRL–6002–3]

Approval and Promulgation of State

Plans for Designated Facilities and

Pollutants; Nebraska; Control of

Landfill Gas Emissions From Existing

Municipal Solid Waste Landfills

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule.

SUMMARY: The EPA proposes to approve

the Nebraska state 111(d) plan for

controlling landfill gas emissions from

existing municipal solid waste (MSW)

landfills. The plan was submitted to

fulfill the requirements of the Clean Air

Act. The state plan establishes emission

limits for existing MSW landfills, and
Federal Register / Vol. 63, No. 78 /Thursday, April 23, 1998 / Proposed Rules 20159

provides for the implementation and

enforcement of those limits.

In the final rules section of the

Federal Register, the EPA is approving

the state’s submittal as a direct final rule

without prior proposal because the

Agency views this as a noncontroversial

action and anticipates no relevant

adverse comments. A detailed rationale

for the approval is set forth in the direct

final rule. If no relevant adverse

comments are received in response to

this proposed rule, no further activity is

contemplated and the direct final rule

will become effective. If the EPA

receives relevant adverse comments, the

direct final rule will be withdrawn and

all public comments received will be

addressed in a subsequent final rule

based on this proposed rule. The EPA

will not institute a second comment

period on this document. Any parties

interested in commenting on this

document should do so at this time.

DATES: Comments on this proposed rule

must be received in writing by May 26,

1998.

ADDRESSES: Comments may be mailed to

Wayne Kaiser, Environmental

Protection Agency, Air Planning and

Development Branch, 726 Minnesota

Avenue, Kansas City, Kansas 66101.

FOR FURTHER INFORMATION CONTACT:

Wayne Kaiser at (913) 551–7603.

SUPPLEMENTARY INFORMATION: See the

information provided in the direct final

rule which is located in the rules

section of the Federal Register.

Dated: April 9, 1998.

Dennis Grams, P.E.,

Regional Administrator, Region VII.

[FR Doc. 98–10856 Filed 4–22–98; 8:45 am]

BILLING CODE 6560–50–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 62

[IA 051–1051b; FRL–6002–7]

Approval and Promulgation of State

Plans for Designated Facilities and

Pollutants; Iowa; Control of Landfill

Gas Emissions From Existing

Municipal Solid Waste Landfills

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule.

SUMMARY: The EPA proposes to approve

the Iowa state 111(d) plan for

controlling landfill gas emissions from

existing municipal solid waste (MSW)

landfills. The plan was submitted to

fulfill the requirements of the Clean Air

Act. The state plan establishes emission

limits for existing MSW landfills, and

provides for the implementation and

enforcement of those limits.

In the final rules section of the

Federal Register, the EPA is approving

the state’s submittal as a direct final rule

without prior proposal because the

Agency views this as a noncontroversial

action and anticipates no adverse

comments. A detailed rationale for the

approval is set forth in the direct final

rule. If no adverse comments are

received in response to this proposed

rule, no further activity is contemplated

and the direct final rule will become

effective. If the EPA receives adverse

comments, the direct final rule will be

withdrawn and all public comments

received will be addressed in a

subsequent final rule based on this

proposed rule. The EPA will not

institute a second comment period on

this document. Any parties interested in

commenting on this document should

do so at this time.

DATES: Comments on this proposed rule

must be received in writing by May 26,

1998.

ADDRESSES: Comments may be mailed to

Wayne Kaiser, Environmental

Protection Agency, Air Planning and

Development Branch, 726 Minnesota

Avenue, Kansas City, Kansas 66101.

FOR FURTHER INFORMATION CONTACT:

Wayne Kaiser at (913) 551–7603.

SUPPLEMENTARY INFORMATION: See the

information provided in the direct final

rule which is located in the rules

section of the Federal Register.

Dated: April 9, 1998.

Dennis Grams, P.E.,

Regional Administrator, Region VII.

[FR Doc. 98–10854 Filed 4–22–98; 8:45 am]

BILLING CODE 6560–50–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 88

[FRL–5994–6]

RIN 2060–AH56

Clean Fuel Fleet Program

AGENCY: Environmental Protection

Agency.

ACTION: Notice of proposed rulemaking;

delay of implementation date.

SUMMARY: The provisions of subpart C of

Title II of the Clean Air Act require

states with certain ozone and carbon

monoxide (CO) nonattainment areas to

revise their State Implementation Plans

(SIP) to incorporate a Clean Fuel Fleet

Program. Under this program, specified

percentages of new vehicles acquired by

covered fleet operators in certain ozone

and CO nonattainment areas must meet

EPA’s clean-fuel vehicle (CFV)

emissions standards. In this action, EPA

proposes to delay by one model year,

the requirement that a covered area’s

State Implementation Plan implement a

Clean Fuel Fleet Program (CFFP) fleet

operator purchase requirement. As a

result, EPA would approve a CFFP SIP

revision which provides that covered

fleet operators must include a certain

percentage of CFVs in their fleet vehicle

purchases each year beginning with

model year 1999. This proposal is

intended to ensure successful

implementation of the CFFP, and to

ensure that an adequate supply of

appropriate vehicles is available for fleet

operators to purchase and use once the

program is underway, so that

compliance with the mandatory

purchase requirements will be possible

and economically feasible for covered

fleet operators.

DATES: Written comments on this

proposal must be received no later than

May 26, 1998.

ADDRESSES: Interested parties may

submit written comments in response to

this rule (in duplicate if possible) to

Public Docket No. A–97–53. It is

requested that a duplicate copy may be

submitted to Sally Newstead at the

address in the FOR FURTHER INFORMATION

CONTACT section below. The docket is

located at the Air Docket, Room M–1500

(6102), Waterside Mall SW, Washington,

DC 20460. The docket may be inspected

between 8:00 a.m. and 5:30 p.m. on

weekdays, excluding holidays. A

reasonable fee may be charged for

copying docket material.

FOR FURTHER INFORMATION CONTACT:

Sally Newstead, Office of Mobile

Sources, National Vehicle and Fuel

Emissions Laboratory, 2565 Plymouth

Road, Ann Arbor, Michigan, 48105.

Telephone (734) 668–4474.

SUPPLEMENTARY INFORMATION:

Statutory Authority

The statutory authority for this action

is provided by sections 246 and 301 of

the Clean Air Act.

Background

In the Rules and Regulations section

of this Federal Register, EPA is

adopting this provision as a direct final

rule without prior proposal because the

Agency views this as a noncontroversial

action and anticipates no adverse

comments. A detailed rationale for this

action is set forth in the direct final rule.

If no adverse comments are received in

response to this proposed rule, no