Under the authority of the Internal Revenue Code at 26 U.S.C. 5181(a)(1), persons wishing to establish a distilled spirits plant for the sole purpose of producing and receiving distilled spirits for fuel use must provide an application and bond as the Secretary of the Treasury may prescribe by regulation. Under this authority, TTB has issued regulations concerning the establishment of such alcohol fuel plants (AFPs) in 27 CFR part 19, subpart X. Those regulations require that a person wishing to establish a new AFP must submit an application for an alcohol fuel producer permit using form TTB F 5110.74. The regulations also require existing AFP proprietors to use that same form to make certain amendments to their permit information. TTB F 5110.74 and its required supporting documents identify or describe, among other things, the applicant, the proposed AFPâs location and layout, its stills, its size category (small, medium, or large) based on the amount of alcohol fuel to be produced annually, and the security measures to be taken to prevent theft and diversion of the distilled spirits produced. The collected information allows TTB to determine the applicant's eligibility under the IRC to obtain or modify an alcohol fuel producer permit, and to determine whether the applicant's AFP operations will conform to Federal law and regulations. Such determinations are necessary to protect the revenue as distilled spirits produced at an AFP are potable and thus subject to Federal excise tax until denatured for fuel use. Once distilled spirits are denatured at an AFP, the resulting alcohol fuel may be withdrawn free of tax as authorized by the IRC at 26 U.S.C. 5214(a)(12).
There are no program changes associated with this information collection. As for adjustments, due to changes in agency estimates, TTB is decreasing this collectionâs estimated number of annual respondents and responses from 251 to 240, its per-response burden from 1.5 hours to 1.479 hours, and its total burden from 377 hours to 355 hours. These decreases are due to a drop in the number of alcohol fuel producer permit applications TTB has received in recent years, and a more accurate accounting of the per-response burden difference between PONL applications (1.3 hours) and paper applications (1.8 hours). The number of annual responses per respondent (one) remains the same as previously reported. TTB also is now accounting for the mailing costs associated with this collection.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Application for an Alcohol Fuel Producer Permit Under 26 U.S.C. 5181 [Individuals]
1513-0051 Supporting Statement (10-2020)-2.docx
Application for an Alcohol Fuel Producer Permit Under 26 U.S.C. 5181 [Individuals]