[Federal Register Volume 88, Number 12 (Thursday, January 19, 2023)]
[Notices]
[Pages 3478-3479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00948]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Superfund Chemical Substance Tax; Request To Modify List of 
Taxable Substances; Filing of Petition for 4,4'-Isopropylidenediphenol-
Epichlorohydrin Copolymer

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 
pursuant to Revenue Procedure 2022-26, 2022-29 I.R.B. 90, requesting 
that 4,4'-Isopropylidenediphenol-Epichlorohydrin Copolymer be added to 
the list of taxable substances under section 4672(a) of the Internal 
Revenue Code (``Code''). 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 March 20, 2023.

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 http://www.regulations.gov 
(indicate public docket number IRS-2022-0038 or 4,4'-
Isopropylidenediphenol-Epichlorohydrin Copolymer) 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or withdrawn once submitted to the Federal eRulemaking Portal.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:LPD:PR (Notice of Filing for 
4,4'-Isopropylidenediphenol-Epichlorohydrin Copolymer), 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: Please contact Amanda F. Dunlap, (202) 
317-6855 (not a toll-free number).

SUPPLEMENTARY INFORMATION: 
    (a) Overview. The petition requesting the addition of 4,4'-
Isopropylidenediphenol-Epichlorohydrin Copolymer to the list of taxable 
substances under section 4672(a) of the Code 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 content in 
this notice of filing does not constitute Department of the Treasury or 
Internal Revenue Service confirmation of the accuracy of the 
information published.
    (b) Petition Content.
    (1) Substance name: 4,4'-Isopropylidenediphenol-Epichlorohydrin 
Copolymer.
    According to the petition, these are the chemical names of 4,4'-
Isopropylidenediphenol-Epichlorohydrin Copolymer: Bisphenol A Epoxy 
Resin.
    (2) Petitioner: Westlake Epoxy Inc., an exporter of 4,4'-
Isopropylidenediphenol-Epichlorohydrin Copolymer.
    (3) Proposed Classification Numbers:
    HTSUS number: 3907.30.0000.
    Schedule B number: 3907.30.0000.
    CAS number: 25068-38-6.
    (4) Petition Filing Date: December 20, 2022.
    Petition filing date for purposes of section 11.02 of Rev. Proc. 
2022-26: July 1, 2022.
    (5) Brief Description of the Petition: According to the petition, 
4,4'-Isopropylidenediphenol-Epichlorohydrin Copolymer is a Bisphenol A 
Epoxy Resin and is used for Epoxide Resin. 4,4'-Isopropylidenediphenol-
Epichlorohydrin Copolymer is derived from the taxable chemicals 
benzene, propylene, chlorine, and sodium hydroxide and produced 
predominantly from epichlorohydrin and bisphenol-A via a two-step 
glycidation reaction sequence. Taxable chemicals comprise 92.98 percent 
of the final product.
    (6) Process Identified in Petition as Predominant Method of 
Production of Substance: 4,4'-Isopropylidenediphenol-Epichlorohydrin 
Copolymer is derived from the taxable chemicals benzene, propylene, 
chlorine, and sodium hydroxide, and is produced predominantly from 
epichlorohydrin and bisphenol-A via a two-step glycidation reaction 
sequence. Epichlorohydrin is typically produced via an addition 
reaction of chlorine to propylene that yields allyl chloride and 
subsequently dichlorohydrin isomers, followed by a dehydrochlorination 
step in the presence of sodium hydroxide to yield epichlorohydrin. 
Bisphenol A is typically produced from the reaction of benzene and 
propylene that yields phenol and acetone. Under acidic conditions and 
with an appropriate catalyst, two units of phenol can react with one 
unit of acetone to yield Bisphenol A. With available epichlorohydrin 
and Bisphenol A, 4,4'-Isopropylidenediphenol-Epichlorohydrin Copolymer 
can be obtained through a two-step glycidation

[[Page 3479]]

reaction sequence where epichlorohydrin is added to Bisphenol A 
(deprotonated with sodium hydroxide) and then water, sodium hydroxide, 
and sodium chloride are removed in a dehydrochlorination step.
    (7) Stoichiometric Material Consumption Equation, Based on Process 
Identified as Predominant Method of Production:

2 C6H6 (benzene) + 4 C3H6 
(propylene) + 4 Cl2 (chlorine) + 6 NaOH (sodium hydroxide) + 
2 O2 (oxygen) [rarr] 
(CH3)2C(C6H4OC3H5
O)2 (4,4'-Isopropylidenediphenol-Epichlorohydrin Copolymer) 
+ CH3COCH3 (acetone) + 2 HCl (hydrogen chloride) 
+ 6 NaCl (sodium chloride) + 5 H2O (water)

    (8) Rate of Tax Calculated by Petitioner Based on Petitioner's 
Conversion Factors for Taxable Chemicals Used in Production of 
Substance:
    Rate of Tax: $14.13 per ton.
    Conversion Factors:
0.46 for benzene
0.49 for propylene
0.83 for chlorine
0.71 for sodium hydroxide

    (9) Public Docket Number: IRS-2022-0038.

Stephanie Bland,
Branch Chief (Passthroughs and Special Industries), IRS Office of Chief 
Counsel.
[FR Doc. 2023-00948 Filed 1-18-23; 8:45 am]
BILLING CODE 4830-01-P