[Federal Register Volume 61, Number 148 (Wednesday, July 31, 1996)]
[Proposed Rules]
[Pages 39929-39931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19388]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Parts 19 and 21

[Notice No. 832; 95R-029P]
RIN 1512-AB60


Formulas for Denatured Alcohol and Rum

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) is proposing 
in this document to update the information provided for in parts 19 and 
21 relating to the formulation of completely denatured alcohol (CDA), 
specially denatured alcohol (SDA), and specially denatured rum (SDR); 
the denaturants authorized for use in the manufacturing of these 
formulations; and the specifications for these denaturants. The updates 
being proposed include replacing the previously named ``Scientific 
Services Division'' and ``Chemical Branch'' with their new names, 
removing the only proprietory name listed with the denaturant 
denatonium benzoate, incorporating an ATF ruling that approves the use 
of two substitute denaturants, and making other amendments to provide 
clarity. ATF believes that the proposed updates will ensure that the 
information provided in this part is current.
    As part of the President's regulatory reform initiative that calls 
for a complete review and revision of all Federal government 
regulations, ATF is proposing in this document to eliminate regulatory 
requirements that may pose an undue burden on industry members.

DATES: Written comments must be received on or before September 30, 
1996.

ADDRESSES: Submit written comments to: Chief, Wine, Beer, and Spirits 
Regulations Branch; Bureau of Alcohol, Tobacco and Firearms; PO Box 
50221; Washington, DC 20091-0221. Attn: Notice No. 832.

FOR FURTHER INFORMATION CONTACT: Mary A. Wood, Wine, Beer, and Spirits 
Regulations Branch, Bureau of Alcohol, Tobacco and Firearms, 650 
Massachusetts Avenue, NW., Washington, DC 20226; (202) 927-8210.

SUPPLEMENTARY INFORMATION:

Background

    27 CFR part 21 contains listings of information relating to the 
formulation

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of CDA, SDA, and SDR, to the specifications for denaturants and to the 
denaturants authorized for use in the formulation of CDA, SDA, and SDR. 
ATF is authorized under section 5242 of the Internal Revenue Code of 
1986 to prescribe the character and quantity of approved denaturing 
materials. Pursuant to Sec. 21.91, ATF may authorize substitutions or 
variations from the specified list of denaturants pursuant to an 
application filed with ATF by the denaturer. This document proposes to 
amend part 21 to incorporate denaturants that have been approved 
pursuant to such applications but not yet published in this part, as 
well as to clarify the regulations where necessary. Additionally, this 
document proposes to make a technical correction to the wording of 
Sec. 21.91 by replacing ``of'' with ``or'' in the second sentence.

Correcting Division and Branch Names

    The ATF National Laboratory Center, Rockville, Maryland, underwent 
reorganization and the division and certain branches were renamed. The 
division previously named ``Scientific Services Division'' has been 
renamed ``Laboratory Services Division'' and the branch previously 
named ``Chemical Branch'' has been renamed ``Alcohol and Tobacco 
Laboratory.'' The regulations are being corrected to reflect the new 
names. The division name correction affects Sec. 21.11. The branch name 
correction affects Secs. 21.3, 21.11, 21.21, 21.31, 21.33, 21.34, 
21.56, 21.65, and 21.141.

Removal of a Proprietary Name

    The appearance of the proprietary brand name ``BITREX'' in 
conjunction with the approved denaturant denatonium benzoate, N.F. may 
be mistakenly considered a product endorsement by ATF over all other 
proprietory names. Since ``denatonium benzoate, N.F.'' is the actual 
chemical name for this denaturant, ``BITREX'' is eliminated every where 
it appears in parts 19 and 21.

Substitute Denaturants

    ATF Ruling 94-4 approved the use of heptane as a substitute 
denaturant for toluene in SDA Formula No. 2-B (SDA 2-B) and alpha 
terpineol as a substitute denaturant in SDA Formula No. 38-B (SDA 38-
B).
    Heptane is currently approved as a substitute denaturant for rubber 
hydrocarbon solvent in SDA 28-A. This ruling allows for the use of 
heptane as a substitute, on an equal (1:1) basis, for any one of the 
denaturants (toluene, benzene or rubber hydrocarbon solvent) in SDA 2-
B.
    Alpha terpineol having similar specifications to those of pine oil, 
N.F., an approved denaturant for SDA 38-B, is now approved for use as a 
substitute denaturant in SDA 38-B.

Other Changes

    27 CFR 21.6 and 21.141 are proposed to be amended to correctly cite 
referenced information.

Public Participation

    ATF requests written comments from all interested persons. All 
comments received on or before the closing date will be carefully 
considered. Comments received after that date will be given the same 
consideration if it is practical to do so, but assurance of 
consideration cannot be given except as to comments received on or 
before the closing date.
    ATF will not recognize any material as confidential. Any material 
which the commenter considers to be confidential or inappropriate for 
disclosure should not be included in the comment. The name of the 
person submitting the comment is not exempt from disclosure.
    Any interested person who desires an opportunity to comment orally 
at a public hearing should submit a request, in writing, to the 
Director within the 60-day comment period. The Director, however, 
reserves the right to determine, in light of all circumstances, whether 
a public hearing will be scheduled.
    Written comments will be available for public inspection during 
normal business hours at the following address: ATF Reading Room, 
Office of Public Affairs and Disclosure, Room 6480, 650 Massachusetts 
Avenue, NW., Washington, DC.

Regulatory Flexibility Act

    It is hereby certified that this proposed regulation will not have 
a significant economic impact on a substantial number of small 
entities. The regulations will provide industry members with the most 
current listings of denaturants, denatured alcohol and rum formulations 
and their specifications. The regulations will not increase 
recordkeeping or reporting requirements. Accordingly, a regulatory 
flexibility analysis is not required because the proposal, if 
promulgated as a final rule, will not have a significant economic 
impact on a substantial number of small entities. Pursuant to section 
7805(f) of the Internal Revenue Code, this regulation has been 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Executive Order 12866

    It has been determined that this proposed regulation is not a 
significant regulatory action as defined in Executive Order 12866. 
Accordingly, this proposal is not subject to the analysis required by 
this Executive Order.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1980, Public Law 
96-511, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this document because no new information 
collection requirements are being proposed.
    The collections of information referenced in this notice of 
proposed rulemaking have been previously reviewed and approved by the 
Office of Management and Budget in accordance with the requirements of 
the Paperwork Reduction Act of 1980 (44 U.S.C. 3504(h); 27 CFR parts 19 
and 20).

Drafting Information

    The principal author of this document is Mary A. Wood of the Wine, 
Beer, and Spirits Regulations Branch, Bureau of Alcohol, Tobacco, and 
Firearms.

List of Subjects

27 CFR Part 19

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Authority delegations (Government agencies), Chemicals, 
Claims, Customs duties and inspection, Electronic fund transfers, 
Excise taxes, Exports, Gasohol, Imports, Labeling, Liquors, Packaging 
and containers, Puerto Rico, Reporting and recordkeeping requirements, 
Research, Security measures, Spices and flavorings, Stills, Surety 
bonds, Transportation, Vinegar, Virgin Islands, Warehouses, Wine.

27 CFR Part 21

    Alcohol and alcoholic beverages, Authority delegation, Chemicals, 
Gasohol.

Authority and Issuance

    Accordingly, ATF is proposing to amend chapter I, of title 27 of 
the Code of Federal Regulations as follows:
    Sec. A. The regulations in 27 CFR part 19 are amended as follows:

PART 19--DISTILLED SPIRITS PLANTS

    Para. 1. The authority citation for part 19 continues to read as 
follows:

    Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006, 
5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5113,

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5142, 5143, 5146, 5171-5173, 5175, 5176 5178-5181, 5201-5204, 5206, 
5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 
5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 
5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 
6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.


Sec. 19.460  [Amended]

    Para. 2. Section 19.460(a) is amended by removing the word 
``(BITREX),'' wherever it appears.


Sec. 19.1005  [Amended]

    Para. 3. Section 19.1005(c) is amended by removing the word 
``(Bitrex),'' wherever it appears.
    Sec. B. The regulations in 27 CFR part 21 are amended as follows:

PART 21--FORMULAS FOR DENATURED ALCOHOL AND RUM

    Para. 1. The authority citation for part 21 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 26 U.S.C. 5242, 7805.


Secs. 21.3, 21.21, 21.31, 21.34, and 21.56  [Amended]

    Para. 2. Sections 21.3(b), 21.21 (b) and (c), 21.31(c), 21.34(c), 
and 21.56(a) are amended by removing the words ``Chemical Branch'' and 
adding in their place the words ``Alcohol and Tobacco Laboratory.''
    Para. 3. Section 21.6 is amended by revising the first sentence of 
paragraph (a) to read as follows:


Sec. 21.6  Incorporations by reference.

    (a) ``The United States Pharmacopoeia and the National Formulary'' 
published together as ``The USP and NF Compendia,'' are incorporated by 
reference in this part. * * *
* * * * *


Sec. 21.11  [Amended]

    Para. 4. Section 21.11 is amended in the definition ``Chief, 
Chemical Branch'' by removing the words ``Scientific Services 
Division'' and adding in their place the words ``Laboratory Services 
Division'' and by removing the words ``Chemical Branch'' and adding in 
their place the words ``Alcohol and Tobacco Laboratory.''


Sec. 21.32  [Amended]

    Para. 5. Section 21.32(a) is amended by removing the word 
``(BITREX).''
    Para. 6. Section 21.33 is amended as follows:
    1. Paragraph (a) is revised to read as follows:


Sec. 21.33  Formula No. 2-B.

    (a) Formula. To every 100 gallons of alcohol add:

    One-half gallon of benzene, \1/2\ gallon of rubber hydrocarbon 
solvent, \1/2\ gallon of toluene, or \1/2\ gallon of heptane.
* * * * *
    2. Paragraph (c) is amended by removing the words ``Chemical 
Branch'' and adding in their place ``Alcohol and Tobacco Laboratory.''


Sec. 21.65  [Amended]

    Para. 7. Section 21.65(a) is amended as follows:
    1. The words ``Alpha terpineol'' are added at the top of the list 
of substances.
    2. In the concluding text, the words ``Chemical Branch'' are 
removed and added in their place are the words ``Alcohol and Tobacco 
Laboratory'' every place they appear.


Sec. 21.76  [Amended]

    Para. 8. Section 21.76(a) is amended by removing the word 
``(BITREX).''


Sec. 21.91  [Amended]

    Para. 9. Section 21.91 is amended by removing ``of'' where it 
appears for the second time in the second sentence and adding ``or'' in 
its place.


Secs. 21.95 through 21.132  [Redesignated as Secs. 21.96 through 
21.133]

    Para. 10. Sections 21.95 through 21.132 are redesignated as 
Secs. 21.96 through 21.133.
    Para. 11. A new Sec. 21.95 is added to read as follows:


Sec. 21.95  Alpha terpineol.

    (a) Boiling point at 752mm 218.8-219.4  deg.C.
    (b) Density at 15 deg. 0.9386.
    (c) Refractive index at 20 deg. 1.4831.


Sec. 21.141  [Amended]

    Para. 12. Section 21.141 is amended as follows:
    1. Formula 40-B is added to the end of the list in the column 
entitled ``Formulas authorized for the entry ``External 
pharmaceuticals, miscellaneous, U.S.P. or N.F.'', Code No. 249.''
    2. The words ``Chemical Branch'' are removed from footnote 1 and 
added in their place are the words ``Alcohol and Tobacco Laboratory.''


Sec. 21.151  [Amended]

    Para. 13. Section 21.151 is amended as follows:
    1. ``Alpha Terpineol * * * S.D.A. 38-B'' is added directly after, 
``Almond oil, bitter, N.F.X * * * S.D.A. 38-B.''
    2. ``(BITREX)'' is removed from the reference to ``Denatonium 
benzoate, N.F. S.D.A. 1, 40-B.''
    3. ``2-B'' is added between ``S.D.A.'' and ``28-A'' across from 
``Heptane.''

    Signed: May 29, 1996.
John W. Magaw,
Director.
    Approved: June 6, 1996.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 96-19388 Filed 7-30-96; 8:45 am]
BILLING CODE 4810-31-U