Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules 10249

building security procedures, visitors

must enter at the 10th Street entrance,

located between Constitution and

Pennsylvania Avenues, NW. In

addition, all visitors must present photo

identification to enter the building.

Because of access restrictions, visitors

will not be admitted beyond the

immediate entrance area more than 15

minutes before the hearing starts. For

information about having your name

placed on the building access list to

attend the hearing, see the FOR FURTHER

INFORMATION CONTACT section of this

preamble.

The rules of 26 CFR 601.601(a)(3)

apply to the hearing. Persons who wish

to present oral comments at the hearing

must submit written comments and an

outline of the topics to be discussed and

the time to be devoted to each topic

(signed original and eight (8) copies) by

May 14, 2001. A period of ten minutes

will be allotted to each person for

making comments. An agenda showing

the scheduling of speakers will be

prepared after the deadline for receiving

outlines has passed. Copies of the

agenda will be available free of charge

at the hearing.

Drafting Information

The principal author of these

proposed regulations is Eric Lucas,

formerly of the Office of Associate Chief

Counsel (Procedure and

Administration). However, other

personnel from the IRS and Treasury

Department participated in their

development.

List of Subjects

26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

26 CFR Part 31

Employment taxes, Income taxes,

Penalties, Pensions, Railroad retirement,

Reporting and recordkeeping

requirements, Social security,

Unemployment compensation.

26 CFR Part 301

Employment taxes, Estate taxes,

Excise taxes, Gift taxes, Income taxes,

Penalties, Reporting and recordkeeping

requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR parts 1, 31, and

301 are proposed to be amended as

follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 is amended by adding entries

in numerical order to read in part as

follows:

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

Section 1.6041–2 also issued under 26

U.S.C. 6041(d). * * *

Section 1.6050S–1 also issued under 26

U.S.C. 6050S(g).

Section 1.6050S–2 also issued under 26

U.S.C. 6050S(g). * * *

Par. 2. Section 1.6041–2 is amended

by adding a new paragraph (a)(5) to read

as follows:

§ 1.6041–2 Return of information as to

payments to employees.

(a) * * *

(5) [The text of proposed paragraph

(a)(5) is the same as the text of § 1.6041–

2T(a)(5) published elsewhere in this

issue of the Federal Register].

* * * * *

Par. 3. Sections 1.6050S–1 and

1.6050S–2 are added to read as follows:

§ 1.6050S–1 Information reporting for

payments and reimbursements or refunds

of qualified tuition and related expenses.

[The text of these proposed

regulations is the same as the text of

§ 1.6050S–1T published elsewhere in

this issue of the Federal Register].

§ 1.6050S–2 Information reporting for

payments of interest on qualified education

loans.

[The text of these proposed

regulations is the same as the text of

§ 1.6050S–2T published elsewhere in

this issue of the Federal Register].

PART 31—EMPLOYMENT TAXES AND

COLLECTION OF INCOME TAX AT

SOURCE

Par. 4. The authority citation for part

31 continues to read in part as follows:

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

Par. 5. Section 31.6051–1 is amended

by:

1. Redesignating paragraph (i) as

paragraph (j).

2. Adding a new paragraph (i).

The addition reads as follows:

§ 31.6051–1 Statements for employees.

* * * * *

(i) [The text of proposed paragraph (i)

is the same as the text of § 31.6051–1T(j)

published elsewhere in this issue of the

Federal Register].

* * * * *

PART 301—PROCEDURE AND

ADMINISTRATION

Par. 6. The authority citation for part

301 continues to read in part as follows:

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

Par. 7. Section 301.6724–1 is

amended by adding a new paragraph

(d)(3) to read as follows:

§ 301.6724–1 Reasonable cause.

* * * * *

(d) * * *

(3) [The text of proposed paragraph

(d)(3) is the same as the text of

§ 301.6724–1T(d)(3) published

elsewhere in this issue of the Federal

Register].

* * * * *

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

[FR Doc. 01–1293 Filed 2–13–01; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG–101520–97]

RIN 1545–AV01

Return of Property in Certain Cases

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains

proposed regulations relating to the

return of property in certain cases. The

proposed regulations reflect changes

made to section 6343 of the Internal

Revenue Code of 1986 by the Taxpayer

Bill of Rights 2. The proposed

regulations also reflect certain changes

affecting levies enacted by the Internal

Revenue Service Restructuring and

Reform Act of 1998. The proposed

regulations affect taxpayers seeking the

return of property from the IRS.

DATES: Written comments and requests

for a public hearing must be received by

May 15, 2001.

ADDRESSES: Send submissions to:

CC:M&SP:RU (REG–101520–97), room

5226, Internal Revenue Service, POB

7604, Ben Franklin Station, Washington,

DC 20044. In the alternative,

submissions may be hand delivered to:

CC:M&S:RU (REG–101520–97), room

5226, Internal Revenue Service, 1111

Constitution Avenue NW., Washington,

DC. Taxpayers may also submit

comments electronically via the Internet

by selecting the ‘‘Tax Regs’’ option on

the IRS Home Page, or by submitting

comments directly to the IRS Internet

site at http://www.irs.gov/prod/

taxlregs/regslist.html.

FOR FURTHER INFORMATION CONTACT:

Kevin B. Connelly, (202) 622–3630 (not

a toll-free number).

10250 Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed

amendments to the Procedure and

Administration Regulations (26 CFR

part 301) relating to the return of

property under section 6343 of the

Internal Revenue Code (Code). Section

501(b) of the Taxpayer Bill of Rights 2

(TBOR2), Public Law 104–168 (110 Stat.

1452), amended section 6343 to

authorize the IRS to return property in

certain cases and, to the extent possible,

but without payment of interest, return

the taxpayer to the same position as if

the levy had not been issued. These

proposed regulations reflect the

amendments made by section 501(b) of

TBOR2.

These proposed regulations also

reflect modifications made by the

Internal Revenue Service Restructuring

and Reform Act (RRA 1998), Public Law

105–206 (112 Stat. 685), which added

new sections 6331(i) and (j) of the Code,

prohibiting the issuance of levies during

the pendency of proceedings for refund

of divisible taxes or prior to completion

of an investigation of the status of

property (effective for unpaid tax

attributable to tax periods beginning

after December 31, 1998). RRA 1998 also

added section 6331(k), prohibiting

levies during the period an offer-incompromise is pending or an

installment agreement is pending or in

effect (effective for offers-in-compromise

pending on or made after December 31,

1999, and for installment agreements

submitted after July 22, 1998). In

addition, the RRA 1998 added section

6330, which provides in certain

circumstances for notice and an

opportunity for a hearing prior to the

imposition of a levy.

Explanation of Provisions

Section 6343(b) provides for the

return of levied upon property,

including levied upon money and

money received from the sale of levied

upon property, if the property was

wrongfully levied upon. Section 501(b)

of TBOR2 enacted section 6343(d) of the

Code authorizing the IRS to return

levied upon property to the taxpayer in

certain other prescribed circumstances.

Property returned under new section

6343(d) will be returned in accordance

with section 6343(b) of the Code as if

the property had been wrongfully levied

upon, except that no interest will be

allowed. The provision is designed to

permit the IRS, to the extent possible, to

restore the taxpayer to a pre-levy

position. These proposed regulations

provide guidance on the circumstances

under which levied upon property will

be returned by the IRS and the manner

in which a request for return of property

must be made.

The proposed regulations apply to the

return of (1) levied upon money that has

been applied toward the taxpayer’s

liability, (2) money received from the

sale of levied upon property under

section 6335 of the Code, and (3) levied

upon property that the United States has

purchased in a sale under section 6335

of the Code. This property may be

returned if one of the conditions

enumerated in paragraph (c) of the

proposed regulations exists.

The regulations also clarify that, other

than as provided in § 301.6343–1(b) and

paragraph (d) of this section, the IRS, in

its discretion, may return levied upon

property in its possession pending sale.

The return of levied upon property in

the IRS’s possession pending sale is not

limited by these proposed regulations.

The IRS has the authority to determine

what property of the taxpayer to levy.

As part of that authority, the IRS may

release a levy and return levied upon

property in its possession pending sale.

Under paragraph (c) of the proposed

regulations, the Commissioner may

return levied upon property if one of the

following conditions exist: (1) the levy

was premature or otherwise not in

accordance with the administrative

procedures of the IRS; (2) the taxpayer

has entered into an agreement under

section 6159 of the Code to satisfy the

liability for which the levy was imposed

by means of installment payments,

unless the agreement provides

otherwise; (3) the return of property will

facilitate collection of the tax liability;

or (4) the return of property is in the

best interest of the taxpayer, as

determined by the National Taxpayer

Advocate, and in the best interest of the

United States, as determined by the

Commissioner.

Section 6343(d)(2)(D) authorizes the

return of property if it is in the best

interests of both the United States and

the taxpayer. Therefore, two distinct

determinations must be made before the

Commissioner may return property

based on these grounds. Under the

proposed regulations the Commissioner

(or his delegate) will determine whether

the return of property is in the best

interest of the United States. The

National Taxpayer Advocate (or his

delegate) generally will determine

whether the return of property is in the

best interest of the taxpayer; however, a

finding by the Commissioner (or his

delegate) that the return of property is

in the best interest of the taxpayer, as

well as the United States, will be

sufficient to support the return of

property. Only the National Taxpayer

Advocate (or his delegate) is authorized

to determined that the return of

property is not in the taxpayer’s best

interest.

Additionally, the proposed

regulations provide that it is in the best

interests of the United States and the

taxpayer to release levies made in

violation of the law. Any property

received pursuant to a levy made in

violation of the law will be returned

unless the taxpayer gives permission to

the IRS to keep the property. For

example, section 6331(k)(2) of the

Internal Revenue Code of 1986 prohibits

levies during the period an offer to enter

into an installment agreement is

pending (and for a 30-day period after

rejection of the offer or while a timely

appeal from the rejection of an offer to

enter into an installment agreement is

pending) and during the period an

installment agreement is in effect. If

property has been received by the IRS

as the result of a levy that is prohibited

under section 6331(k)(2), the IRS will

return the property to the taxpayer

pursuant to section 6343(d)(2)(D). It

may, however, be advantageous for a

taxpayer in some circumstances to allow

the IRS to keep the levied upon property

and apply the proceeds of that levy to

the taxpayer’s outstanding tax liabilities.

These proposed regulations allow the

taxpayer to give permission to the IRS

to retain the levied upon property and

apply the proceeds of that levy to the

taxpayer’s outstanding tax liabilities.

Absent taxpayer consent, the IRS is

required to return the levied upon

property (or the proceeds if the property

had been sold) to the taxpayer.

Pursuant to the requirement of section

6343(d) that property to be returned

under this provision be treated as if it

were wrongfully levied upon, the

proposed regulations also provide that if

the United States purchases property, it

will be treated as having received an

amount of money equal to the minimum

price determined by the Commissioner

before the sale.

Property other than money may be

returned at any time. Money may be

returned any time within 9 months after

the date of the levy. In addition, when

a timely request for the return of money

is filed in accordance with these

regulations, or a determination to return

an amount of money is made before the

expiration of the 9-month period, the

money may be returned within a

reasonable period of time after the 9-

month period if additional time is

necessary for investigation or

processing. This will ensure that if a

timely request has been made, or the

IRS timely decides to return money on

its own initiative, the IRS will have

Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules 10251

sufficient time for necessary

investigation or processing.

Under the proposed regulations a

taxpayer may request the return of

property by writing to the address on

the levy form or to the Commissioner

(marked for the attention of the Chief,

Special Procedures Function) of the IRS

office in which the levy was made. A

written request for the return of

property must include: (1) the name,

current address, and taxpayer

identification number of the taxpayer

requesting the return of property; (2) a

description of the property levied upon;

(3) the date of the levy; and (4) the

grounds upon which the return of

property is being requested.

The Commissioner must consider

each taxpayer’s request for the return of

property, determine whether any of the

conditions authorizing the return of

property exist, and decide whether to

return the property. The Commissioner

also may return the property based on

information received from a source

other than the taxpayer. A decision to

return the property is within the

Commissioner’s discretion, unless the

levy was in violation of law, in which

case the Commissioner must return the

property.

If the Commissioner returns property,

and the taxpayer fails to pay the

previously assessed liability for which

the levy was made on the returned

property, the Commissioner may

administratively collect the liability.

Collection may include levying again on

the returned property provided statutory

and administrative requirements are

followed.

Special Analyses

It has been determined that this notice

of proposed rulemaking is not a

significant regulatory action as defined

in Executive Order 12866. Therefore, a

regulatory assessment is not required. It

also has been determined that section

553(b) of the Administrative Procedure

Act (5 U.S.C. chapter 5) does not apply

to these regulations, and because the

regulation does not impose a collection

of information on small entities, the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) does not apply. Pursuant to

section 7805(f) of the Internal Revenue

Code, this notice of proposed

rulemaking will be submitted to the

Chief Counsel for Advocacy of the Small

Business Administration for comment

on its impact on small business.

Comments and Requests for a Public

Hearing

Before these proposed regulations are

adopted as final regulations,

consideration will be given to any

written comments that are submitted

timely (preferably a signed original and

eight (8) copies) to the IRS.

Alternatively, taxpayers may submit

comments electronically via the Internet

by selecting the ‘‘Tax Regs’’ option on

the IRS Home Page, or by submitting

comments directly to the IRS Internet

site at http://www.irs.gov/prod/

taxlregs/regslist.html. All comments

will be available for public inspection

and copying. A public hearing may be

scheduled if requested in writing by a

person that timely submits written

comments. If a public hearing is

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 Kevin B. Connelly, Office

of Assistant Chief Counsel (General

Litigation) CC:EL:GL, IRS. However,

other personnel from the IRS and

Treasury Department participated in

their development.

List of Subjects in 26 CFR Part 301

Employment taxes, Estate taxes,

Excise taxes, Gift taxes, Income taxes,

Penalties, Reporting and recordkeeping

requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR part 301 is

proposed to be amended as follows:

PART 301—PROCEDURE AND

ADMINISTRATION

Paragraph 1. The authority citation

for part 301 continues to read in part as

follows:

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

Par. 2. Section 301.63 43–3 is added

to read as follows:

§ 301.6343–3 Return of property in certain

cases.

(a) In general. If money has been

levied upon and applied toward the

taxpayer’s liability, or property has been

levied upon and sold, and the receipts

have been applied toward the taxpayer’s

liability, or property has been levied

upon and purchased by the United

States and the United States still

possesses the property, and the

Commissioner determines that any of

the conditions in paragraph (c) of this

section exist, the Commissioner may

return—

(1) An amount of money equal to the

amount of money levied upon;

(2) An amount of money equal to the

amount of money received by the

United States from a sale of the

property; or

(3) The specific property levied upon

and purchased by the United States.

(b) Return of levied upon property in

possession of the Internal Revenue

Service (IRS) pending sale under section

6335. Other than as provided in

§ 301.6343–1(b) or in paragraph (d) of

this section, the Commissioner, in his or

her discretion, may return levied upon

property that is in the possession of the

United States pending sale under

section 6335.

(c) Conditions authorizing the return

of property. The Commissioner may

return property upon determining that

one of the following conditions exist:

(1) Premature or not in accordance

with administrative procedures. The

levy was premature or otherwise not in

accordance with the administrative

procedures of the Secretary.

(2) Installment agreement. Subsequent

to the levy, the taxpayer enters into an

agreement under section 6159 to satisfy

the liability for which the levy was

made by means of installment

payments. If, however, the agreement

specifically provides that already levied

upon property will not be returned

under section 6343(d), the

Commissioner may not grant a request

for return of property under this

paragraph (c)(2).

(3) Facilitate collection. The return of

property will facilitate the collection of

the tax liability for which the levy was

made.

(4) Best interests of the United States

and the taxpayer—(i) In general. The

taxpayer or the National Taxpayer

Advocate (or his delegate) has

consented to the return of property, and

the return of property would be in the

best interest of the taxpayer, as

determined by the National Taxpayer

Advocate (or his delegate), and in the

best interest of the United States, as

determined by the Commissioner.

(ii) Best interest of the taxpayer. The

National Taxpayer Advocate (or his

delegate) generally will determine

whether the return of property is in the

best interest of the taxpayer. If, however,

a taxpayer requests the Commissioner to

return property and has not specifically

requested the National Taxpayer

Advocate (or his delegate) to determine

the taxpayer’s best interest, a finding by

the Commissioner that the return of

property is in the best interest of the

taxpayer will be sufficient to support

the return of property. Only the

National Taxpayer Advocate (or his or

her delegate) may determine that a

return of property is not in the best

interest of the taxpayer.

10252 Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules

(5) Examples. The following examples

illustrate the provisions of this

paragraph (c):

Example 1. A owes $1,000 in Federal

income taxes. The IRS levies on a broker with

respect to a money market account belonging

to the taxpayer and receives payment from

the broker which it applies to the taxpayer’s

outstanding liability. However, the IRS failed

to follow procedure provided by the Internal

Revenue Manual (but not required by statute)

with regard to managerial approval prior to

the making of the levy. The Commissioner

may return an amount of money equal to the

amount of money the IRS levied upon and

applied toward the taxpayer’s tax liability.

Example 2. B owes $1,000 in Federal

income taxes. The IRS levies on a bank with

respect to a savings account belonging to the

taxpayer and receives funds from the bank

which it applies to the taxpayer’s liability.

Subsequent to the levy, B enters into an

installment agreement, under which it will

pay timely installments to satisfy the entire

liability. The installment agreement does not

by its terms preclude the return of levied

upon property. The revenue officer verifies

that B is financially capable of paying the

entire liability, including accruals, in the

agreed-upon installment payments. The

Commissioner may return an amount of

money equal to the amount of money levied

upon and applied toward the taxpayer’s

liability.

Example 3. C owns a house that is

deteriorating and in unsalable condition. C is

in the process of renovating the house for

sale when the IRS levies upon C’s bank

account for the payment of a $20,000

outstanding Federal tax liability and receives

funds in the amount of $3,000, which it

applies toward C’s liability. A notice of

federal tax lien is the only lien

encumbrancing the house. C requests that an

amount of money equal to the amount seized

from the bank account be returned so that C

can complete the renovations on the house.

Without the funds, C will be unable to

complete the renovations and sell the house.

Upon examination, the Commissioner

determines that the IRS will be able to collect

the entire tax liability if C’s house is restored

to salable condition. If the National Taxpayer

Advocate, or the Commissioner in lieu of the

National Taxpayer Advocate, determines that

the return of the seized money is in the

taxpayers best interest, the Commissioner

may return an amount of money equal to the

amount seized from the bank account in the

best interest of the taxpayer and the United

States.

(d) Best Interests of the United States

and the taxpayer to release levy and

return of property where levy made in

violation of law—(1) In General. If the

Internal Revenue Service (IRS) makes a

levy in violation of the law, it is in the

best interest of the United States and the

taxpayer to release the levy and the IRS

will return to the taxpayer any property

obtained pursuant to the levy. For

example, the IRS will release the levy

and return the taxpayer’s property if the

levy was made—

(i) Without giving the requisite thirtyday notice of intent to levy under

section 6330;

(ii) During the pendency of a

proceeding for refund of divisible tax in

violation of section 6331(i);

(iii) Before investigation of the status

of levied upon property in violation of

section 6331(j);

(iv) During the pendency of offers-incompromise in violation of section

6331(k)(1); or

(v) During the period an offer to enter

into an installment agreement is

pending (or for 30 days following the

rejection of an offer, or, if the rejection

is timely appealed, during the period

that the appeal is pending) or during the

period an installment agreement is in

effect (or during the 30 days following

a termination or, if a timely appeal of

termination is filed, during the period

the appeal is pending) in violation of

section 6331(k)(2).

(2) Property may not be credited to

outstanding liability without the

taxpayer’s permission. When the release

of a levy and the return of property are

required under this paragraph (d), the

property or the proceeds from the sale

of the property received by the IRS

pursuant to the levy must be returned to

the taxpayer unless the taxpayer

requests otherwise. The property or

proceeds of sale may not be credited to

any outstanding tax liability of the

taxpayer, including the one with respect

to which the IRS made the levy, without

the written permission of the taxpayer.

(e) Time of return. Levied upon

property in possession of the IRS (other

than money) may be returned under

paragraphs (c) and (d) of this section at

any time. An amount of money equal to

the amount of money levied upon or

received from a sale of property may be

returned at any time before the

expiration of 9 months from the date of

the levy. When a request for the return

of money filed in accordance with

paragraph (h) of this section is filed

before the expiration of the 9-month

period, or a determination to return an

amount of money is made before the

expiration of the 9-month period, the

money may be returned within a

reasonable period of time after the

expiration of the 9-month period if

additional time is necessary for

investigation or processing.

(f) Purchase by the United States. For

purposes of paragraph (a)(2) of this

section, if property is declared

purchased by the United States at a sale

pursuant to section 6335(e)(1)(C), the

United States will be treated as having

received an amount of money equal to

the minimum price determined by the

Commissioner before the sale.

(g) Determinations by the

Commissioner. The Commissioner must

determine whether any of the

conditions authorizing the return of

property exists if a taxpayer submits a

request for the return of property in

accordance with paragraph (h) of this

section. The Commissioner also may

make this determination independently.

If the Commissioner determines that

conditions authorizing the return of

property are not present, the

Commissioner may not authorize the

return of property. If the Commissioner

determines that conditions authorizing

the return of property are present, the

Commissioner may (but is not required

to, unless the reason for the return of

property is that the levy was made in

violation of law and is governed by

paragraph (d) of this section) authorize

the return of property. If the

Commissioner decides independently to

return property under paragraph (c)(4)

of this section based on the best

interests of the taxpayer and the United

States, the taxpayer or the National

Taxpayer Advocate (or his delegate)

must consent to the return of property.

(h) Procedures for request for the

return of property—(1) Manner. A

request for the return of property must

be made in writing to the address on the

levy form.

(2) Form. The written request must

include the following information—

(i) The name, current address, and

taxpayer identification number of the

person requesting the return of money

(or property purchased by the United

States);

(ii) A description of the property

levied upon;

(iii) The date of the levy; and

(iv) A statement of the grounds upon

which the return of money is being

requested (or property purchased by the

United States).

(i) No interest. No interest will be paid

on any money returned under this

section.

(j) Administrative collection upon

default. If the Commissioner returns

property under this section, and the

taxpayer fails to pay the previously

assessed liability for which the levy was

made on the returned property, the

Commissioner may administratively

collect the liability. Collection may

include levying again on the returned

property as long as statutory and

administrative requirements are

followed.

Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules 10253

(k) Effective date. This section is

applicable on the date final regulations

are published in the Federal Register.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

[FR Doc. 01–1562 Filed 2–13–01; 8:45 am]

BILLING CODE 4830–01–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 420

[FRL 6897–8]

RIN 2040–AB79

Effluent Limitations Guidelines,

Pretreatment Standards, and New

Source Performance Standards for the

Iron and Steel Manufacturing Point

Source Category

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Extension of comment period;

correction.

SUMMARY: On December 27, 2000 (65 FR

81964), EPA published proposed

effluent limitations guidelines,

pretreatment standards, and new source

performance standards under the Clean

Water Act (CWA) for wastewater

discharges from iron and steel

manufacturing facilities. The proposed

regulation would revise technologybased effluent limitations guidelines

and standards for wastewater discharges

associated with the operation of new

and existing iron and steel facilities.

This action presents clarifying

discussion on seven regulatory issues

related to the proposed effluent

limitations guidelines and standards for

the iron and steel industry and solicits

public comment. This action also

contains corrections to certain portions

of the proposed regulation and

accompanying preamble to eliminate

inconsistencies in the proposal, and to

correct potentially confusing

typographical errors.

This action also provides additional

information on the pretreatment hearing

and public meeting.

This action also announces that EPA

is extending the comment period on the

proposed rule until March 26, 2001.

EPA is providing this extension in

response to numerous requests for

additional time to allow the public to

consolidate their comments on the

proposal.

DATES: EPA must receive comments on

this action by midnight March 26, 2001.

This is also the new deadline for

submitting comments on the proposed

rule, which was published on December

27, 2000 (65 FR 81964). On February 20,

2001, EPA will conduct a hearing on the

pretreatment standards (9:00 AM–10:30

AM), followed by a public meeting on

the entire proposed rule, including

issues in today’s action (10:30 AM–

12:00 PM and 1:00 PM–2:30 PM).

ADDRESSES: The public meeting and

hearing will be held at the EPA

auditorium in Waterside Mall, 401 M

Street SW., Washington, DC.

Submit written comments to Mr.

George M. Jett at the following address:

Office of Water, Engineering and

Analysis Division (4303), U.S. EPA,

1200 Pennsylvania Avenue, NW.,

Washington, DC 20460. Comments

submitted via hand-delivery or Federal

Express may be sent to the following

address: Room 607a West Tower, 401 M

Street SW., Washington, DC 20460. For

additional information on how to

submit comments, see ‘‘HOW TO

SUBMIT COMMENTS’’ in the

SUPPLEMENTARY INFORMATION section of

this action.

The public record for this action and

the proposed rulemaking has been

established under docket number W–

00–25 and is located in the Water

Docket East Tower Basement, Room

EB57, 401 M Street SW., Washington,

DC 20460. The record is available for

inspection from 9:00 a.m. to 4:00 p.m.,

Monday through Friday, excluding legal

holidays. For access to the docket

materials, call (202) 260–3027 to

schedule an appointment. You may

have to pay a reasonable fee for copying.

FOR FURTHER INFORMATION CONTACT: For

technical information concerning this

action and the proposed rule, contact

Mr. George M. Jett at (202) 260–7151 or

Mr. Kevin Tingley at (202) 260–9843.

For economic information, contact Mr.

William Anderson at (202) 260–5131.

SUPPLEMENTARY INFORMATION:

How to Submit Comments

EPA encourages comments on today’s

action to be combined with comments

on the notice published on December

27, 2000. EPA requests an original and

three copies of your comments and

enclosures (including references).

Commenters who want EPA to

acknowledge receipt of their comments

should enclose a self-addressed,

stamped envelope. No facsimiles (faxes)

will be accepted. Please submit any

references cited in your comments.

Comments may also be sent via e-mail

to jett.george@epa.gov. Electronic

comments must specify docket number

W–00–25 and must be submitted as an

ASCII, Word, or WordPerfect file

avoiding the use of special characters

and any form of encryption. Electronic

comments on this action may be filed

online at many Federal Depository

Libraries. No confidential business

information (CBI) should be sent via email.

Contents of This Document

I. Purpose of this Action

II. Solicitation of Public Comment on New

Regulatory Issues

III. Corrections to Proposed Preamble and

Regulation

I. Purpose of This Action

In this action, EPA presents seven

regulatory issues related to the proposed

effluent limitations guidelines and

standards for the Iron and Steel

Manufacturing Point Source Category.

This action also contains corrections to

certain portions of the proposed

regulation and accompanying preamble.

This action also announces March 26,

2001 as the new deadline for submitting

comments on the proposed rule. EPA

solicits public comment on all

information presented in this action and

in the administrative record supporting

this action.

II. Solicitation of Public Comment on

New Regulatory Issues

EPA has identified seven substantive

issues related to the proposed

rulemaking to bring to the public’s

attention. These issues are discussed

below. EPA solicits comment on these

issues and the various approaches the

Agency is considering to resolve these

issues.

A. BPT Revision for Semi-wet BOF

Operations

In the effluent limitations guidelines

and standards promulgated for the Iron

and Steel Manufacturing Point Source

Category in 1982, BPT and BAT for

basic oxygen furnaces with semi-wet air

pollution controls (semi-wet BOFs) were

set at no discharge of process

wastewater pollutants to waters of the

United States. In the December 27, 2000

notice, we proposed to revise BAT for

semi-wet BOFs in the steelmaking

subcategory. We had intended to revise

BPT at the same time so that BAT and

BPT would be consistent. However, we

failed to do that. Instead, we

republished the 1982 BPT of no

discharge of process wastewater

pollutants for semi-wet BOFs, with the

result that the BPT would be more

stringent than the proposed BAT. EPA

did not intend this anomalous result.

Today’s action advises the public that

we intend to revise BPT to be consistent

with BAT in the final action.

Conforming BPT to BAT, as EPA

intended, would allow for the discharge