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 AFP’s 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alcohol fuel may be withdrawn free of tax as authorized by the IRC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
collection’s 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]