Other Alcohol

Requirements for establishing an alcohol fuel plant (AFP)

This web page provides information pertaining to:

These regulations and those pertaining to the production of alcohol fuel can be found in part 19, subpart X, of Title 27 of the Code of Federal Regulations (27 CFR part 19, subpart X). For the complete and regularly updated set of regulations, please visit the CFR online.

TTB's statutory authority to regulate AFPs

TTB has been delegated authority under 26 U.S.C. Chapter 51 of the Internal Revenue Code of 1986 (IRC) to promulgate regulations pertaining to AFPs. The principal statutory provision under which TTB promulgates such regulations is section 5181 of the IRC (26 U.S.C. 5181). Section 5181 of the IRC provides for the establishment of AFPs to produce, process, store, and use or distribute distilled spirits to be used exclusively for fuel use.

The definition of an AFP

An AFP is a type of distilled spirits plant that is authorized under 26 U.S.C. 5181 and established under 27 CFR part 19, subpart X, solely for producing, processing, and storing, and using or distributing distilled spirits to be used exclusively for fuel use.

Application requirement for an AFP permit

As provided in 27 CFR 19.673, 19.675, and 19.676, a person wishing to establish an AFP can apply for an alcohol fuel producer's permit on TTB F 5110.74. The application may be completed electronically using TTB’s Permits Online system (PONL). If the application is not completed electronically, two copies of the application should be sent to the TTB National Revenue Center. The address is:

Alcohol and Tobacco Tax and Trade Bureau
National Revenue Center
550 Main Street, Suite 8002
Cincinnati, OH 45202

AFP sizes (small, medium, and large)

TTB has defined three sizes for AFPs:  Small, medium, and large.  Each has varying application and bond requirements based on the AFP's size. The definitions for small, medium, and large AFPs are set forth in 27 CFR 19.662. They are:

  • Small plants. A small alcohol fuel plant (small AFP) is a plant which produces and/or receives not more than 10,000 proof gallons of spirits per calendar year.
  • Medium plants. A medium alcohol fuel plant (medium AFP) is a plant which produces and/or receives more than 10,000 but not more than 500,000 proof gallons of spirits per calendar year.
  • Large plants. A large alcohol fuel plant (large AFP) produces and/or receives more than 500,000 proof gallons of spirits per calendar year.

Small AFPs: Application, power of attorney, corporate and limited liability company (LLC) officials, and bond requirements

Application. In accordance with 27 CFR 19.673, an application for a small AFP permit must be made on TTB F 5110.74. The application should be completed as described in the “Application requirement for an AFP permit” section above. The application must provide the following information:

  • Name and mailing address of the applicant, and the location of the AFP if not the same as the mailing address;
  • A diagram of the plant premises;
  • A statement regarding the ownership of the premises. If the premises are not owned by the applicant, the owner's consent to access by appropriate TTB officers must be furnished;
  • A description of all the stills on the premises and a statement of the maximum capacity of each;
  • A description of the materials from which spirits will be produced;
  • A description of the security measures to be used to protect premises, buildings, and equipment where spirits are produced, processed, and stored; and
  • When requested, any additional information required by TTB to determine whether the application should be approved.  

Power of attorney. The proprietor of a small AFP must execute and file TTB F 5000.8, Power of Attorney, for each person authorized to sign or act on behalf of the proprietor. This form is not required for persons whose authority to act on behalf of the AFP and on matters before TTB is furnished in the application or in the operating agreement for a LLC or in the by-laws of a corporation. TTB F 5000.8 may be uploaded in PONL during the application process.  Alternatively, if you are submitting a paper application, the POA form should be mailed to the National Revenue Center for processing in accordance with the form’s instructions.

Corporate officials and LLC members. The proprietor of a small AFP organized as a corporation or LLC must execute and file TTB F 5100.1, Signing Authority for Corporate and LLC Officials, for each person authorized to sign or act on behalf of the proprietor. This form may be uploaded in PONL during the application process.  Alternatively, if you are submitting a paper application, the POA form should be mailed to the National Revenue Center for processing in accordance with the form’s instructions.

Bond. The applicant is not required to provide a bond in order to establish a small plant, unless the applicant will not conduct bona fide production operations. Plants for the receipt of spirits without production must furnish a bond in accordance with 27 CFR 19.699 with a penal sum as prescribed in 27 CFR 19.700. The appropriate TTB officer must approve the bond before TTB will issue the permit.

Medium AFPs: Application, power of attorney, corporate and limited liability company (LLC) officials, and bond requirements

Application. In accordance with 27 CFR 19.675, an application for a medium AFP permit must be made on TTB F 5110.74. The application should be completed as described in “Application requirement for an AFP permit” section above. The application must provide the following information:

  • The information that is required for a small AFP permit (see the preceding section on this webpage);
  • A statement of the maximum total proof gallons of spirits that will be produced and received during a calendar year;
  • Information identifying the principal persons involved in the business. This identifying information must include each person's name, address, title, social security number, date of birth, and place of birth;
  • A statement indicating whether or not the applicant or any other principal person involved in the business has been convicted of a felony or misdemeanor under Federal or State law. The statement may exclude convictions for misdemeanor traffic violations; and
  • A statement of the amount and source of funds invested in the business.

Power of attorney. The proprietor of a medium AFP shall execute and file TTB F 5000.8, Power of Attorney, for each person authorized to sign or act on behalf of the proprietor. This form is not required for persons whose authority to act on behalf of the AFP and on matters before TTB is furnished in the application or in the operating agreement for a LLC or in the by-laws of a corporation. This form may be uploaded in PONL during the application process.  Alternatively, if you are submitting a paper application, the POA form should be mailed to the National Revenue Center for processing in accordance with the form’s instructions.

Corporate and limited liability company (LLC) officials. The proprietor of a medium AFP organized as a corporation or LLC shall execute and file TTB F 5100.1, Signing Authority for Corporate and LLC Officials, for each person authorized to sign or act on behalf of the proprietor.  This form may be uploaded in PONL during the application process.  Alternatively, if you are submitting a paper application, the form should be mailed to the National Revenue Center for processing in accordance with the form’s instructions.

Bond. In accordance with 27 CFR 19.675 and 19.699, a bond of sufficient sum, as prescribed in 27 CFR 19.700, is required for medium AFPs. The bond must be filed on TTB F 5110.56 and can be submitted with the application. The bond must be submitted before TTB will issue the permit.

The terms and conditions of a bond state that that the person furnishing the bond will faithfully comply with all provisions of law and regulations relating to the activities covered by the bond, and will pay all taxes imposed by the IRC and all penalties incurred or fines imposed for violations of any such provision of the IRC relating to the activity covered by the bond.

Large AFPs:  Application, supporting information, power of attorney, corporate and LLC officials, and bond requirements

Application. In accordance with 27 CFR 19.676, an application for a large AFP permit must be made on TTB F 5110.74. The application should be completed as described in "Application requirement for an AFP permit" section above. The application must provide the following information:

  • The information that is required for a medium AFP permit (see the preceding section on this webpage); and
  • A statement identifying the type of business organization and the persons having an ownership interest in the business. The applicant must support this statement by providing the information specified in 27 CFR 19.677.

Supporting information. In accordance with 27 CFR 19.677, the supporting information required by 27 CFR 19.676, includes, as applicable, copies of—

  • Corporate documents. If the applicant is a corporation, the applicant must provide the following:
    • The corporate charter or a certificate of corporate existence or incorporation;
    • A list of officers and directors with their names and addresses, other than officers and directors who will have no responsibilities in connection with the operation of the alcohol fuel plant;
    • Certified minutes or extracts of board of directors meetings, showing those individuals authorized to sign for the corporation;
    • A statement showing the number of shares of each class of stock or other basis of ownership, authorized and outstanding, and the voting rights of the respective owners or holders; and
    • A list of the offices or positions, the incumbents of which are authorized by the articles of incorporation or the board of directors to act on behalf of the proprietor or to sign the proprietor's name.
  • Partnership documents. If the applicant is a partnership, the applicant must provide a copy of the articles of partnership or association, or certificate of partnership or association if required to be filed by any State, county, or municipality.
  • Limited liability company/limited liability partnership documents. If the applicant is a limited liability company or limited liability partnership or other entity recognized by law as a person, the applicant must provide a copy of the articles of organization, the operating agreement, and the names and addresses of all members and managers.
  • Statement of interest.
    • The application must include the names and addresses of the 10 persons that have the largest stock ownership, by stock class, or other interest in the corporation, limited liability company/limited liability partnership, or other legal entity, and the nature and amount of the stock or other interest of each, whether the interest is recorded in the name of the interested party or in the name of another for the interested party. If a corporation is wholly owned or controlled by another corporation, the appropriate TTB officer may request that the applicant furnish the same information for persons of the parent corporation.
    • In the case of an individual owner or a partnership, the application must include the name and address of each person interested in the large plant, whether the interest is recorded in the name of the interested party or in the name of another for the interested party.

Availability of documents. An applicant must make available to any appropriate TTB officer upon request all originals of documents submitted under 27 CFR 19.677 and any additional related organizational documents such as articles of incorporation, bylaws, operating agreements, and State certifications.

Power of attorney. In accordance with 27 CFR 19.676, the proprietor of a large AFP shall execute and file TTB F 5000.8, Powers of Attorney, for each person authorized to sign or act on behalf of the proprietor. This form is not required for persons whose authority to act on behalf of the AFP and on matters before TTB is furnished in the application or in the operating agreement for a LLC or in the by-laws of a corporation. This form may be uploaded in PONL during the application process.  Alternatively, if you are submitting a paper application, the POA form should be mailed to the National Revenue Center for processing in accordance with the form’s instructions.

Corporate and limited liability company (LLC) officials. The proprietor of a large AFP organized as a corporation or LLC shall execute and file TTB F 5100.1, Signing Authority for Corporate and LLC Officials, for each person authorized to sign or act on behalf of the proprietor. This form may be uploaded in PONL during the application process.  Alternatively, if you are submitting a paper application, the form should be mailed to the National Revenue Center for processing in accordance with the form’s instructions.

Bond. In accordance with 27 CFR 19.676 and 19.699, a bond of sufficient sum, as prescribed in 27 CFR 19.700, is required for large plants. The bond must be filed on TTB F 5110.56 and can be submitted with the application. The bond must be submitted before a permit is issued.

The terms and conditions of a bond state that the person furnishing the bond will faithfully comply with all provisions of law and regulations relating to the activities covered by the bond, and will pay all taxes imposed by the IRC and all penalties incurred or fines imposed for violations of any such provision of the IRC relating to the activity covered by the bond.

Registration of stills

In accordance with 27 CFR 19.680, the description of stills on the approved alcohol fuel producer's permit application (TTB F 5110.74) constitutes registration of stills. A change in type or location of a still constitutes amendment of the permit. Permits can be amended on TTB F 5110.74.

Life of an AFP permit

Under 27 CFR 19.679, an AFP may conduct the operations authorized by its permit on a continuing basis unless the permit is automatically terminated under 27 CFR 19.684, suspended or revoked as provided in 27 CFR 19.697, or voluntarily surrendered.

In accordance with 27 CFR 19.684, automatic termination of an AFP permit occurs if the operations that are authorized by the permit are leased, sold, or transferred to another person. In the case of a corporation holding a permit under 27 CFR part 19, subpart X, if actual or legal control of the permittee corporation changes, directly or indirectly, whether by reason of change in stock ownership or control (in the permittee corporation or in any other corporation), by operation of law, or in any other manner, the permit may remain in effect until the expiration of 30 days after the change, whereupon the permit will automatically terminate. However, if operations are to be continued after the change in control, and an application for a new permit is filed within 30 days of the change, then the outstanding permit may remain in effect until final action is taken on the new application. When final action is taken on the application, the outstanding permit automatically terminates.

TTB G: 2011-2
OPR: RRD
October 14, 2015

 

Page last reviewed: September 4, 2015
Page last updated: October 14, 2015
Maintained by: Regulations and Rulings Division

TTB
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