[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Notices]
[Pages 71784-71785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19607]


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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

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 
requesting that propylene glycol methyl ether 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.

[[Page 71785]]


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-2024-0042 or propylene glycol methyl 
ether) 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Comments cannot be edited or withdrawn once submitted to the Federal 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), 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 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 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.
    (2) Petitioner: The Dow Chemical Company, an importer and exporter 
of propylene glycol methyl ether.
    (3) Proposed classification numbers:
    (i) HTSUS number: 2909.49.6000.
    (ii) Schedule B number: 2909.49.0000.
    (iii) CAS number: 107-98-2.
    (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 is a fast evaporating ether-alcohol solvent with 
high water solubility and active solvency used in a variety of 
applications such as solvent-based coatings, household and industrial 
cleaners, and agricultural pesticides.
    Propylene glycol methyl ether is made from propylene, chlorine, 
sodium hydroxide, and methane. Taxable chemicals constitute 100.00 
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 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)).
    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.
    (7) Stoichiometric material consumption equation, based on process 
identified as predominant method of production:

C3H6 (propylene) + Cl2 (chlorine) + 2 
NaOH (sodium hydroxide) + CH4 (methane) [rarr] 
C4H10O2 (propylene glycol methyl 
ether) + 2 NaCl (sodium chloride) + H2 (hydrogen)

    (8) Tax rate calculated by Petitioner, based on Petitioner's 
conversion factors for taxable chemicals used in production of 
substance:
    (i) Tax rate: $10.58 per ton.
    (ii) Conversion factors: 0.47 for propylene, 0.79 for chlorine, 
0.89 for sodium hydroxide, and 0.18 for methane.
    (9) Public docket number: IRS-2024-0042.

Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of 
Chief Counsel.
[FR Doc. 2024-19607 Filed 8-30-24; 8:45 am]
BILLING CODE 4830-01-P