[Federal Register Volume 66, Number 41 (Thursday, March 1, 2001)]
[Rules and Regulations]
[Pages 12853-12854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4845]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Parts 19 and 21

[T.D. ATF-442; Ref: Notice No. 832]
RIN 1512-AB60


Formulas for Denatured Alcohol and Rum (2000R-295P)

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

ACTION: Final Rule (Treasury decision).

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SUMMARY: This final rule amends the regulations in 27 CFR Parts 19 and 
21 by updating the information 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 include removing the proprietary brand 
name ``BITREX'' 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.

DATES: This rule is effective on March 1, 2001.

FOR FURTHER INFORMATION CONTACT: Lisa M. Gesser, Regulations Division, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue NW., 
Washington, DC 20226, (202-927-9347) or e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    27 CFR Part 21 contains listings of information relating to the 
formulation 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 Sec. 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 upon 
application filed with ATF by the denaturer. This final rule amends 
Part 21 by incorporating additional denaturants that have been approved 
pursuant to such applications. Additionally, this final rule 
incorporates several technical corrections.

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.

Removal of a Proprietary Name

    This final rule removes the proprietary brand name ``BITREX'' each 
place it appears in parts 19 and 21. The use 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 over proprietary names.

Other Changes

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

Notice of Proposed Rulemaking

    On July 31, 1996, ATF published a notice of proposed rulemaking 
(Notice No. 832, 61 FR 39929-39931) to solicit public comment on 
regulations to update the information provided in parts 19 and 21 
relating to the formulation of CDA, SDA, and SDR; the denaturants 
authorized for use in the manufacturing of these formulations; and the 
specifications for these denaturants. The comment period closed on 
September 30, 1996.

Comments on the NPRM

    ATF did not receive any comments in response to Notice 832, 
therefore, most of the amendments proposed in Notice No. 832 have been 
adopted in this final rule.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. 
Chapter 35, and its implementing

[[Page 12854]]

regulations, 5 CFR part 1320, do not apply to this final rule because 
there are no new reporting or recordkeeping requirements.

Regulatory Flexibility Act

    It is hereby certified that this final rule will not have a 
significant economic impact on a substantial number of small entities. 
The regulations 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 this 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, the NPRM preceding this 
regulation was submitted to the Chief Counsel for Advocacy of the Small 
Business Administration, for comment on its impact on small business. 
The Chief Counsel for Advocacy did not submit any comments.

Executive Order 12866

    It has been determined that this final rule is not a significant 
regulatory action as defined by Executive Order 12866. Therefore, a 
regulatory assessment is not required.

Drafting Information

    The principal author of this document is Lisa M. Gesser, 
Regulations Division, 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 amending chapter I of title 27 of the Code of 
Federal Regulations as follows:

PART 19--DISTILLED SPIRITS PLANTS

    Paragraph 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, 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]

    Par. 2. Amend Sec. 19.460(a) by removing the word ``(BITREX)''.


Sec. 19.1005  [Amended]

    Par. 3. Amend Sec. 19.1005(c)(2) by removing the word ``(Bitrex)''.

PART 21--FORMULAS FOR DENATURED ALCOHOL AND RUM

    Par. 4. The authority citation for Part 21 continues to read as 
follows:

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


Sec. 21.32  [Amended]

    Par. 5. Amend Sec. 21.32(a) by removing the word ``(BITREX)''.

    Par. 6. Revise Sec. 21.33(a) 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.
* * * * *


Sec. 21.65  [Amended]

    Par. 7. Amend Sec. 21.65(a) by adding the words ``Alpha terpineol'' 
to the top of the list of substances.


Sec. 21.76  [Amended]

    Par. 8. Amend Sec. 21.76(a) by removing the word ``(BITREX)''.


Sec. 21.91  [Amended]

    Par. 9. Amend the second sentence of Sec. 21.91 by removing the 
word ``of'' where it appears for the second time and adding the word 
``or'' in its place.


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

    Par. 10. Redesignate Sec. 21.95 through Sec. 21.132 as Sec. 21.96 
through Sec. 21.133.

    Par. 11. Add a new Sec. 21.95 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]

    Par. 12. Amend Sec. 21.141 by adding ``40-B'' 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.''


Sec. 21.151  [Amended]

    Par. 13. Amend Sec. 21.151 as follows:
    a. Add the words ``Alpha Terpineol * * * S.D.A. 38-B'' directly 
after the words ``Almond oil, bitter, N.F.X. * * * S.D.A. 38-B'';
    b. Remove the word ``(BITREX)'' from the reference to ``Denatonium 
benzoate, N.F. S.D.A. 1, 40-B''; and
    c. Add ``2-B'' between ``S.D.A.'' and ``28-A'' across from 
``Heptane.''

    Signed: January 4, 2001.
Bradley A. Buckles,
Director.
    Approved: February 1, 2001.
Timothy E. Skud,
Acting Deputy Assistant Secretary, (Regulatory, Tariff and Trade 
Enforcement).
[FR Doc. 01-4845 Filed 2-28-01; 8:45 am]
BILLING CODE 4810-31-M