Superfund Tax on Chemical Substances; Request To Modify List of Taxable Substances; Notice of Filing for Propylene Glycol Methyl Ether Acetate, 71789-71790 [2024-19608]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Notices]
[Pages 71789-71790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19608]


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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 Propylene Glycol Methyl Ether 
Acetate

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

[[Page 71790]]

requesting that propylene glycol methyl ether acetate 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 November 4, 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 https://www.regulations.gov 
(indicate public docket number IRS-2024-0041 or propylene glycol methyl 
ether acetate) 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 Comments cannot be edited or withdrawn once submitted to the 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 Propylene Glycol Methyl Ether 
Acetate), 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).

SUPPLEMENTARY INFORMATION:

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 propylene glycol methyl ether acetate be added to 
the list of taxable substances under section 4672(a) of the Internal 
Revenue Code (List). The petition requesting the addition of propylene 
glycol methyl ether acetate 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.
    (b) Petition Content.
    (1) Substance name: Propylene glycol methyl ether acetate.
    (2) Petitioner: The Dow Chemical Company, an importer and exporter 
of propylene glycol methyl ether acetate.
    (3) Proposed classification numbers:
    (i) HTSUS number: 2915.39.90.00.
    (ii) Schedule B number: 2915.39.9500.
    (iii) CAS number: 108-65-6.
    (4) Petition filing dates:
    (i) Petition filing date for purposes of making a determination: 
June 13, 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: July 1, 
2022.
    (5) Description from petition: According to the petition, propylene 
glycol methyl ether acetate is an esterification product of propylene 
glycol methyl ether and acetic acid. Propylene glycol methyl ether 
acetate, a glycol ether, is a liquid used in a variety of applications 
including coatings and cleaning.
    Propylene glycol methyl ether acetate is made from propylene, 
chlorine, sodium hydroxide, and methane. Taxable chemicals constitute 
93.00 percent by weight of the materials used to produce this 
substance.
    (6) Process identified in petition as predominant method of 
production of substance: Glycol ethers are predominantly produced by 
reacting an epoxide (typically ethylene oxide or propylene oxide) with 
an alcohol; this reaction process is referred to as alkoxylation. 
Propylene glycol methyl ether acetate is made by esterification of 
propylene glycol methyl ether and acetic acid. Propylene glycol methyl 
ether is made via the alkoxylation process (also known as ring opening 
of an epoxide) using methanol and propylene oxide. Methanol is made 
from syngas (carbon monoxide and dihydrogen). Carbon monoxide (CO) and 
dihydrogen (H2) are made by steam-methane reforming 
(CH4 and H2O). Propylene oxide is made by 
hydrochlorination (chlorine (Cl2), propylene 
(C3H6), and sodium hydroxide (NaOH)). Acetic acid 
is made via the carbonylation of methanol with carbon monoxide.
    Additional information on the production process:
     The propylene glycol methyl ether alkoxylation reaction 
(methanol + propylene oxide) is base catalyzed, using a small amount of 
metal hydroxide to produce methoxide. Once methoxide is made, it is 
regenerated following conversion to the product in the presence of 
propylene oxide. Regenerated methoxide in the presence of propylene 
oxide will perpetually react until all propylene oxide is consumed or 
the reaction is halted through the use of controls.
    [cir] Since the amount of metal hydroxide used to produce propylene 
glycol methyl ether is very small, the metal hydroxide has been 
excluded from the stoichiometric material consumption equation; 
including the metal hydroxide would lead to a distorted conversion 
factor.
     After the production of methanol from syngas, methanol is 
reacted with CO to produce acetic acid. This process is commonly 
referred to as carbonylation. The reaction is typically catalyzed by 
either a rhodium or iridium-based catalyst and involves iodomethane as 
a key intermediate.
     Acetic acid when combined with propylene glycol methyl 
under specific conditions (temperature, pressure, pH, etc.) produces 
propylene glycol methyl ether acetate. This reaction is commonly known 
as esterification (or Fischer Esterification). Esterification typically 
involves a basic or acid catalytic species and can generate water or an 
aqueous hydroxide as byproduct depending on the pH. Once the final 
reaction contents are dehydrated and separated, commercial grade 
propylene glycol methyl ether acetate is obtained.
    (7) Stoichiometric material consumption equation, based on process 
identified as predominant method of production:

C3H6 (propylene) + Cl2 (chlorine) + 2 
NaOH (sodium hydroxide) + 3 CH4 (methane) + H2O 
(water) [rarr] 2 NaCl (sodium chloride) + 5 H2 (hydrogen) + 
C6H12O3 (propylene glycol methyl ether 
acetate)

    (8) Tax rate calculated by Petitioner, based on Petitioner's 
conversion factors for taxable chemicals used in production of 
substance:
    (i) Tax rate: $8.85 per ton.
    (ii) Conversion factors: 0.32 for propylene, 0.54 for chlorine, 
0.61 for sodium hydroxide, and 0.36 for methane.
    (9) Public docket number: IRS-2024-0041.

Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of 
Chief Counsel.
[FR Doc. 2024-19608 Filed 8-30-24; 8:45 am]
BILLING CODE 4830-01-P