H. R. 3—826
any amendments made by the Energy Policy Act of 2005 to 
section 38(b) of the Internal Revenue Code of 1986, the amend-
ments made by section 11126(b) of this Act shall be treated 
as having been executed before such amendments made by 
the Energy Policy Act of 2005. 
(e) CLERICAL AMENDMENTS.—
(1) Subparagraph (A) of section 9504(b)(2) is amended by 
striking ‘‘the Act entitled ‘An Act to provide that the United 
States shall aid the States in fish restoration and management 
projects, and for other purposes’, approved August 9, 1950’’ 
and inserting ‘‘the Dingell-Johnson Sport Fish Restoration Act’’. 
(2) Sections 6426(d)(2)(F) and 4041(a)(2)(B)(ii) are both 
amended by striking ‘‘section 29(c)(3)’’ and inserting ‘‘section 
45K(c)(3)’’. 
(f) EFFECTIVE DATES.—
(1) AMERICAN JOBS CREATION ACT OF 2004.—The amend-
ments made by subsections (a) and (b) shall take effect as 
if included in the provisions of the American Jobs Creation 
Act of 2004 to which they relate. 
(2) TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY.—
The amendment made by subsection (c) shall take effect as 
if included in the provision of the Transportation Equity Act 
for the 21st Century to which it relates. 
(3) ENERGY POLICY ACT OF 2005.—The amendments made 
by subsections (d)(1) and (e)(2) shall take effect as if included 
in the provision of the Energy Tax Incentives Act of 2005 
to which they relate. 
Subtitle E—Preventing Fuel Fraud 
SEC. 11161. TREATMENT OF KEROSENE FOR USE IN AVIATION. 
(a) ALL KEROSENE TAXED AT HIGHEST RATE.—
(1) IN GENERAL.—Section 4081(a)(2)(A) (relating to rates 
of tax) is amended by adding ‘‘and’’ at the end of clause (ii), 
by striking ‘‘, and’’ at the end of clause (iii) and inserting 
a period, and by striking clause (iv). 
(2) EXCEPTION FOR USE IN AVIATION.—Subparagraph (C) 
of section 4081(a)(2) is amended to read as follows: 
‘‘(C) TAXES IMPOSED ON FUEL USED IN AVIATION.—In 
the case of kerosene which is removed from any refinery 
or terminal directly into the fuel tank of an aircraft for 
use in aviation, the rate of tax under subparagraph (A)(iii) 
shall be—
‘‘(i) in the case of use for commercial aviation 
by a person registered for such use under section 4101, 
4.3 cents per gallon, and 
‘‘(ii) in the case of use for aviation not described 
in clause (i), 21.8 cents per gallon.’’. 
(3) APPLICABLE RATE IN CASE OF CERTAIN REFUELER TRUCKS, 
TANKERS, AND TANK WAGONS.—Section 4081(a)(3) (relating to 
certain refueler trucks, tankers, and tank wagons treated as 
terminals) is amended—
(A) by striking ‘‘a secured area of’’ in subparagraph 
(A)(i), and 
(B) by adding at the end the following new subpara-
graph:
H. R. 3—827
‘‘(D) APPLICABLE
RATE.—For purposes of paragraph 
(2)(C), in the case of any kerosene treated as removed 
from a terminal by reason of this paragraph—
‘‘(i) the rate of tax specified in paragraph (2)(C)(i) 
in the case of use described in such paragraph shall 
apply if such terminal is located within a secured area 
of an airport, and 
‘‘(ii) the rate of tax specified in paragraph (2)(C)(ii) 
shall apply in all other cases.’’. 
(4) CONFORMING AMENDMENTS.—
(A) Sections 4081(a)(3)(A) and 4082(b) are amended 
by striking ‘‘aviation-grade’’ each place it appears. 
(B) Section 4081(a)(4) is amended by striking ‘‘para-
graph (2)(C)’’ and inserting ‘‘paragraph (2)(C)(i)’’. 
(C) The heading for paragraph (4) of section 4081(a) 
is amended by striking ‘‘AVIATION-GRADE’’. 
(D) Section 4081(d)(2) is amended by striking so much 
as precedes subparagraph (A) and inserting the following: 
‘‘(2) AVIATION FUELS.—The rates of tax specified in sub-
section (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 cents per 
gallon—’’. 
(E) Subsection (e) of section 4082 is amended—
(i) by striking ‘‘aviation-grade’’, 
(ii) by striking ‘‘section 4081(a)(2)(A)(iv)’’ and 
inserting ‘‘section 4081(a)(2)(A)(iii)’’, 
(iii) by adding at the end the following new sen-
tence: ‘‘For purposes of this subsection, any removal 
described in section 4081(a)(3)(A) shall be treated as 
a removal from a terminal but only if such terminal 
is located within a secure area of an airport.’’, and 
(iv) by striking ‘‘AVIATION-GRADE KEROSENE’’ in 
the heading thereof and inserting ‘‘KEROSENE REMOVED 
INTO AN AIRCRAFT’’. 
(b) REDUCED RATE FOR USE OF CERTAIN LIQUIDS IN AVIATION.—
(1) IN GENERAL.—Subsection (c) of section 4041 (relating 
to imposition of tax) is amended—
(A) by striking ‘‘aviation-grade kerosene’’ in paragraph 
(1) and inserting ‘‘any liquid for use as a fuel other than 
aviation gasoline’’, 
(B) by striking ‘‘aviation-grade kerosene’’ in paragraph 
(2) and inserting ‘‘liquid for use as a fuel other than avia-
tion gasoline’’, 
(C) by striking paragraph (3) and inserting the fol-
lowing new paragraph: 
‘‘(3) RATE OF TAX.—The rate of tax imposed by this sub-
section shall be 21.8 cents per gallon (4.3 cents per gallon 
with respect to any sale or use for commercial aviation).’’, 
and 
(D) by striking ‘‘AVIATION-GRADE KEROSENE’’ in the 
heading thereof and inserting ‘‘CERTAIN LIQUIDS USED AS 
A FUEL IN AVIATION’’. 
(2) PARTIAL REFUND OF FULL RATE.—
(A) IN
GENERAL.—Paragraph (2) of section 6427(l) 
(relating to nontaxable uses of diesel fuel, kerosene and 
aviation fuel) is amended to read as follows: 
‘‘(2) NONTAXABLE USE.—For purposes of this subsection, 
the term ‘nontaxable use’ means any use which is exempt
H. R. 3—828
from the tax imposed by section 4041(a)(1) other than by reason 
of a prior imposition of tax.’’. 
(B) REFUNDS FOR NONCOMMERCIAL AVIATION.—Section 
6427(l) (relating to nontaxable uses of diesel fuel, kerosene 
and aviation fuel) is amended by redesignating paragraph 
(5) as paragraph (6) and by inserting after paragraph (4) 
the following new paragraph: 
‘‘(5) REFUNDS FOR KEROSENE USED IN NONCOMMERCIAL AVIA-
TION.—
‘‘(A) IN
GENERAL.—In the case of kerosene used in 
aviation not described in paragraph (4)(A) (other than any 
use which is exempt from the tax imposed by section 
4041(c) other than by reason of a prior imposition of tax), 
paragraph (1) shall not apply to so much of the tax imposed 
by section 4081 as is attributable to—
‘‘(i) the Leaking Underground Storage Tank Trust 
Fund financing rate imposed by such section, and 
‘‘(ii) so much of the rate of tax specified in section 
4081(a)(2)(A)(iii) as does not exceed the rate specified 
in section 4081(a)(2)(C)(ii). 
‘‘(B) PAYMENT TO ULTIMATE, REGISTERED VENDOR.—The 
amount which would be paid under paragraph (1) with 
respect to any kerosene shall be paid only to the ultimate 
vendor of such kerosene. A payment shall be made to 
such vendor if such vendor—
‘‘(i) is registered under section 4101, and 
‘‘(ii) meets the requirements of subparagraph (A), 
(B), or (D) of section 6416(a)(1).’’. 
(3) CONFORMING AMENDMENTS.—
(A) Section 4041(a)(1)(B) is amended by striking the 
last sentence. 
(B) The heading for subsection (l) of section 6427 is 
amended by striking ‘‘, KEROSENE AND AVIATION FUEL’’ 
and inserting ‘‘AND KEROSENE’’. 
(C) Section 4082(d)(2)(B) is amended by striking ‘‘sec-
tion 6427(l)(5)(B)’’ and inserting ‘‘section 6427(l)(6)(B)’’. 
(D) Section 6427(i)(4)(A) is amended—
(i) by striking ‘‘paragraph (4)(B) or (5)’’ both places 
it appears and inserting ‘‘paragraph (4)(B), (5), or (6)’’, 
and 
(ii) by striking ‘‘subsection (b)(4) and subsection 
(l)(5)’’ in the last sentence and inserting ‘‘subsections 
(b)(4), (l)(5), and (l)(6)’’. 
(E) Paragraph (4) of section 6427(l) is amended—
(i) by striking ‘‘aviation-grade’’ in subparagraph 
(A), 
(ii) by striking ‘‘section 4081(a)(2)(A)(iv)’’ and 
inserting ‘‘section 4081(a)(2)(iii)’’, 
(iii) by striking ‘‘aviation-grade kerosene’’ in 
subparagraph (B) and inserting ‘‘kerosene used in 
commercial aviation as described in subparagraph (A)’’, 
and 
(iv) by striking ‘‘AVIATION-GRADE KEROSENE’’ in the 
heading thereof and inserting ‘‘KEROSENE
USED
IN 
COMMERCIAL AVIATION’’.
H. R. 3—829
(F) Section 6427(l)(6)(B), as redesignated by paragraph 
(2)(B), is amended by striking ‘‘aviation-grade kerosene’’ 
and inserting ‘‘kerosene used in aviation’’. 
(c) TRANSFERS FROM HIGHWAY TRUST FUND OF TAXES ON FUELS 
USED IN AVIATION TO AIRPORT AND AIRWAY TRUST FUND.—
(1) IN GENERAL.—Section 9503(c) (relating to expenditures 
from Highway Trust Fund) is amended by adding at the end 
the following new paragraph: 
‘‘(7) TRANSFERS FROM THE TRUST FUND FOR CERTAIN AVIA-
TION FUEL TAXES.—The Secretary shall pay at least monthly 
from the Highway Trust Fund into the Airport and Airway 
Trust Fund amounts (as determined by the Secretary) equiva-
lent to the taxes received on or after October 1, 2005, and 
before October 1, 2011, under section 4081 with respect to 
so much of the rate of tax as does not exceed—
‘‘(A) 4.3 cents per gallon of kerosene with respect to 
which a payment has been made by the Secretary under 
section 6427(l)(4), and 
‘‘(B) 21.8 cents per gallon of kerosene with respect 
to which a payment has been made by the Secretary under 
section 6427(l)(5). 
Transfers under the preceding sentence shall be made on the 
basis of estimates by the Secretary, and proper adjustments 
shall be made in the amounts subsequently transferred to 
the extent prior estimates were in excess of or less than the 
amounts required to be transferred. Any amount allowed as 
a credit under section 34 by reason of paragraph (4) or (5) 
of section 6427(l) shall be treated for purposes of subparagraphs 
(A) and (B) as a payment made by the Secretary under such 
paragraph.’’. 
(2) CONFORMING AMENDMENTS.—
(A) Section 9502(a) is amended by striking ‘‘appro-
priated or credited to the Airport and Airway Trust Fund 
as provided in this section or section 9602(b)’’ and inserting 
‘‘appropriated, credited, or paid into the Airport and Airway 
Trust Fund as provided in this section, section 9503(c)(7), 
or section 9602(b)’’. 
(B) Section 9502(b)(1) is amended—
(i) by striking ‘‘subsections (c) and (e) of section 
4041’’ in subparagraph (A) and inserting ‘‘section 
4041(c)’’, and 
(ii) by striking ‘‘and aviation-grade kerosene’’ in 
subparagraph (C) and inserting ‘‘and kerosene to the 
extent attributable to the rate specified in section 
4081(a)(2)(C)’’. 
(C) Section 9503(b) is amended by striking paragraph 
(3). 
(d) CERTAIN REFUNDS NOT TRANSFERRED FROM AIRPORT AND 
AIRWAY TRUST FUND.—
(1) Section 9502(d)(2) (relating to transfers from Airport 
and Airway Trust Fund on account of certain refunds) is 
amended by inserting ‘‘(other than subsection (l)(4) and (l)(5) 
thereof)’’ after ‘‘or 6427 (relating to fuels not used for taxable 
purposes)’’. 
(2) The text of section 9502(d)(3) (relating to transfers 
from Airport and Airway Trust Fund on account of certain
H. R. 3—830
section 34 credits) is amended by inserting ‘‘(other than pay-
ments made by reason of paragraph (4) or (5) of section 6427(l))’’ 
after ‘‘section 34’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to fuels or liquids removed, entered, or sold after Sep-
tember 30, 2005. 
SEC. 11162. REPEAL OF ULTIMATE VENDOR REFUND CLAIMS WITH 
RESPECT TO FARMING. 
(a) IN
GENERAL.—Subparagraph (A) of section 6427(l)(6) 
(relating to registered vendors to administer claims for refund of 
diesel fuel or kerosene sold to farmers and State and local govern-
ments), as redesignated by section 11161, is amended to read as 
follows: 
‘‘(A) IN GENERAL.—Paragraph (1) shall not apply to 
diesel fuel or kerosene used by a State or local govern-
ment.’’. 
(b) CONFORMING AMENDMENT.—The heading of paragraph (6) 
of section 6427(l), as so redesignated, is amended by striking 
‘‘FARMERS AND’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to sales after September 30, 2005. 
SEC. 11163. REFUNDS OF EXCISE TAXES ON EXEMPT SALES OF FUEL 
BY CREDIT CARD. 
(a) REGISTRATION OF PERSON EXTENDING CREDIT ON CERTAIN 
EXEMPT SALES OF FUEL.—Section 4101(a) (relating to registration) 
is amended by adding at the end the following new paragraph: 
‘‘(4) REGISTRATION OF PERSONS EXTENDING CREDIT ON CER-
TAIN EXEMPT SALES OF FUEL.—The Secretary shall require reg-
istration by any person which—
‘‘(A) extends credit by credit card to any ultimate pur-
chaser described in subparagraph (C) or (D) of section 
6416(b)(2) for the purchase of taxable fuel upon which 
tax has been imposed under section 4041 or 4081, and 
‘‘(B) does not collect the amount of such tax from 
such ultimate purchaser.’’. 
(b) REFUNDS OF TAX ON GASOLINE.—
(1) IN GENERAL.—Paragraph (4) of section 6416(a) (relating 
to condition to allowance) is amended—
(A) by inserting ‘‘except as provided in subparagraph 
(B),’’ after ‘‘For purposes of this subsection,’’ in subpara-
graph (A), 
(B) by redesignating subparagraph (B) as subpara-
graph (C) and by inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) CREDIT CARD ISSUER.—For purposes of this sub-
section, if the purchase of gasoline described in subpara-
graph (A) (determined without regard to the registration 
status of the ultimate vendor) is made by means of a 
credit card issued to the ultimate purchaser, paragraph 
(1) shall not apply and the person extending the credit 
to the ultimate purchaser shall be treated as the person 
(and the only person) who paid the tax, but only if such 
person—
‘‘(i) is registered under section 4101, 
‘‘(ii) has established, under regulations prescribed 
by the Secretary, that such person—
H. R. 3—831
‘‘(I) has not collected the amount of the tax 
from the person who purchased such article, or 
‘‘(II) has obtained the written consent from 
the ultimate purchaser to the allowance of the 
credit or refund, and 
‘‘(iii) has so established that such person—
‘‘(I) has repaid or agreed to repay the amount 
of the tax to the ultimate vendor, 
‘‘(II) has obtained the written consent of the 
ultimate vendor to the allowance of the credit or 
refund, or 
‘‘(III) has otherwise made arrangements which 
directly or indirectly provides the ultimate vendor 
with reimbursement of such tax. 
If clause (i), (ii), or (iii) is not met by such person extending 
the credit to the ultimate purchaser, then such person 
shall collect an amount equal to the tax from the ultimate 
purchaser and only such ultimate purchaser may claim 
such credit or payment.’’, 
(C) by striking ‘‘subparagraph (A)’’ in subparagraph 
(C), as redesignated by paragraph (2), and inserting 
‘‘subparagraph (A) or (B)’’, 
(D) by inserting ‘‘or credit card issuer’’ after ‘‘vendor’’ 
in subparagraph (C), as so redesignated, and 
(E) by inserting ‘‘OR
CREDIT
CARD
ISSUER’’ after 
‘‘VENDOR’’ in the heading thereof. 
(2) 
CONFORMING
AMENDMENT.—Section 
6416(b)(2) 
is 
amended by adding at the end the following new sentence: 
‘‘Subparagraphs (C) and (D) shall not apply in the case of 
any tax imposed on gasoline under section 4081 if the require-
ments of subsection (a)(4) are not met.’’. 
(c) DIESEL FUEL OR KEROSENE.—Paragraph (6) of section 6427(l) 
(relating to nontaxable uses of diesel fuel and kerosene), as redesig-
nated by section 11161, is amended—
(1) by striking ‘‘The amount’’ in subparagraph (C) and 
inserting ‘‘Except as provided in subparagraph (D), the 
amount’’, and 
(2) by adding at the end the following new subparagraph: 
‘‘(D) CREDIT CARD ISSUER.—For purposes of this para-
graph, if the purchase of any fuel described in subpara-
graph (A) (determined without regard to the registration 
status of the ultimate vendor) is made by means of a 
credit card issued to the ultimate purchaser, the Secretary 
shall pay to the person extending the credit to the ultimate 
purchaser the amount which would have been paid under 
paragraph (1) (but for subparagraph (A)), but only if such 
person meets the requirements of clauses (i), (ii), and (iii) 
of section 6416(a)(4)(B). If such clause (i), (ii), or (iii) is 
not met by such person extending the credit to the ultimate 
purchaser, then such person shall collect an amount equal 
to the tax from the ultimate purchaser and only such 
ultimate purchaser may claim such amount.’’. 
(d) CONFORMING PENALTY AMENDMENTS.—
(1) Section 6206 (relating to special rules applicable to 
excessive claims under sections 6420, 6421, and 6427) is 
amended—
H. R. 3—832
(A) by striking ‘‘Any portion’’ in the first sentence 
and inserting ‘‘Any portion of a refund made under section 
6416(a)(4) and any portion’’, 
(B) by striking ‘‘payments under sections 6420’’ in the 
first sentence and inserting ‘‘refunds under section 
6416(a)(4) and payments under sections 6420’’, 
(C) by striking ‘‘section 6420’’ in the second sentence 
and inserting ‘‘section 6416(a)(4), 6420’’, and 
(D) by striking ‘‘SECTIONS 6420, 6421, AND 6427’’ in the 
heading thereof and inserting ‘‘CERTAIN SECTIONS’’. 
(2) Section 6675(a) is amended by inserting ‘‘section 
6416(a)(4) (relating to certain sales of gasoline),’’ after ‘‘made 
under’’. 
(3) Section 6675(b)(1) is amended by inserting ‘‘6416(a)(4),’’ 
after ‘‘under section’’. 
(4) The item relating to section 6206 in the table of sections 
for subchapter A of chapter 63 is amended by striking ‘‘sections 
6420, 6421, and 6427’’ and inserting ‘‘certain sections’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to sales after December 31, 2005. 
SEC. 11164. REREGISTRATION IN EVENT OF CHANGE IN OWNERSHIP. 
(a) IN GENERAL.—Section 4101(a) (relating to registration) is 
amended by adding at the end the following new paragraph: 
‘‘(4) REREGISTRATION IN EVENT OF CHANGE IN OWNERSHIP.—
Under regulations prescribed by the Secretary, a person (other 
than a corporation the stock of which is regularly traded on 
an established securities market) shall be required to reregister 
under this section if after a transaction (or series of related 
transactions) more than 50 percent of ownership interests in, 
or assets of, such person are held by persons other than persons 
(or persons related thereto) who held more than 50 percent 
of such interests or assets before the transaction (or series 
of related transactions).’’. 
(b) CONFORMING AMENDMENTS.—
(1) CIVIL PENALTY.—Section 6719 (relating to failure to 
register) is amended—
(A) by inserting ‘‘or reregister’’ after ‘‘register’’ each 
place it appears, 
(B) by inserting ‘‘OR REREGISTER’’ after ‘‘REGISTER’’ in 
the heading for subsection (a), and 
(C) by inserting ‘‘OR REREGISTER’’ after ‘‘REGISTER’’ 
in the heading thereof. 
(2) CRIMINAL PENALTY.—Section 7232 (relating to failure 
to register under section 4101, false representations of registra-
tion status, etc.) is amended—
(A) by inserting ‘‘or reregister’’ after ‘‘register’’, 
(B) by inserting ‘‘or reregistration’’ after ‘‘registration’’, 
and 
(C) by inserting ‘‘OR REREGISTER’’ after ‘‘REGISTER’’ 
in the heading thereof. 
(3) ADDITIONAL CIVIL PENALTY.—Section 7272 (relating to 
penalty for failure to register) is amended—
(A) by inserting ‘‘or reregister’’ after ‘‘failure to register’’ 
in subsection (a), and 
(B) by inserting ‘‘OR REREGISTER’’ after ‘‘REGISTER’’ 
in the heading thereof.
H. R. 3—833
(4) CLERICAL AMENDMENTS.—The item relating to section 
6719 in the table of sections for part I of subchapter B of 
chapter 68, the item relating to section 7232 in the table 
of sections for part II of subchapter A of chapter 75, and 
the item relating to section 7272 in the table of sections for 
subchapter B of chapter 75 are each amended by inserting 
‘‘or reregister’’ after ‘‘register’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to actions, or failures to act, after the date of the 
enactment of this Act. 
SEC. 11165. RECONCILIATION OF ON-LOADED CARGO TO ENTERED 
CARGO. 
(a) IN GENERAL.—Subsection (a) of section 343 of the Trade 
Act of 2002 is amended by inserting at the end the following 
new paragraph: 
‘‘(4) TRANSMISSION OF DATA.—Pursuant to paragraph (2), 
not later than 1 year after the date of enactment of this para-
graph, the Secretary of Homeland Security, after consultation 
with the Secretary of the Treasury, shall establish an electronic 
data interchange system through which the United States Cus-
toms and Border Protection shall transmit to the Internal Rev-
enue Service information pertaining to cargoes of any taxable 
fuel (as defined in section 4083 of the Internal Revenue Code 
of 1986) that the United States Customs and Border Protection 
has obtained electronically under its regulations adopted in 
accordance with paragraph (1). For this purpose, not later 
than 1 year after the date of enactment of this paragraph, 
all filers of required cargo information for such taxable fuels 
(as so defined) must provide such information to the United 
States Customs and Border Protection through such electronic 
data interchange system.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 11166. TREATMENT OF DEEP-DRAFT VESSELS. 
(a) IN GENERAL.—On and after the date of the enactment 
of this Act, the Secretary of the Treasury shall require that a 
vessel described in section 4042(c)(1) of the Internal Revenue Code 
of 1986 be considered a vessel for purposes of the registration 
of the operator of such vessel under section 4101 of such Code, 
unless such operator uses such vessel exclusively for purposes of 
the entry of taxable fuel. 
(b) EXEMPTION FOR DOMESTIC BULK TRANSFERS BY DEEP-DRAFT 
VESSELS.—
(1) IN GENERAL.—Subparagraph (B) of section 4081(a)(1) 
(relating to tax on removal, entry, or sale) is amended to 
read as follows: 
‘‘(B) EXEMPTION FOR BULK TRANSFERS TO REGISTERED 
TERMINALS OR REFINERIES.—
‘‘(i) IN GENERAL.—The tax imposed by this para-
graph shall not apply to any removal or entry of a 
taxable fuel transferred in bulk by pipeline or vessel 
to a terminal or refinery if the person removing or 
entering the taxable fuel, the operator of such pipeline 
or vessel (except as provided in clause (ii)), and the 
operator of such terminal or refinery are registered 
under section 4101.
H. R. 3—834
‘‘(ii) NONAPPLICATION OF REGISTRATION TO VESSEL 
OPERATORS ENTERING BY DEEP-DRAFT VESSEL.—For pur-
poses of clause (i), a vessel operator is not required 
to be registered with respect to the entry of a taxable 
fuel transferred in bulk by a vessel described in section 
4042(c)(1).’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall take effect on the date of the enactment of this 
Act. 
SEC. 11167. PENALTY WITH RESPECT TO CERTAIN ADULTERATED 
FUELS. 
(a) IN GENERAL.—Part I of subchapter B of chapter 68 (relating 
to assessable penalties) is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 6720A. PENALTY WITH RESPECT TO CERTAIN ADULTERATED 
FUELS. 
‘‘(a) IN GENERAL.—Any person who knowingly transfers for 
resale, sells for resale, or holds out for resale any liquid for use 
in a diesel-powered highway vehicle or a diesel-powered train which 
does not meet applicable EPA regulations (as defined in section 
45H(c)(3)), shall pay a penalty of $10,000 for each such transfer, 
sale, or holding out for resale, in addition to the tax on such 
liquid (if any). 
‘‘(b) PENALTY IN THE CASE OF RETAILERS.—Any person who 
knowingly holds out for sale (other than for resale) any liquid 
described in subsection (a), shall pay a penalty of $10,000 for 
each such holding out for sale, in addition to the tax on such 
liquid (if any).’’. 
(b) DEDICATION OF REVENUE.—Paragraph (5) of section 9503(b) 
(relating to certain penalties) is amended by inserting ‘‘6720A,’’ 
after ‘‘6719,’’. 
(c) CLERICAL AMENDMENT.—The table of sections for part I 
of subchapter B of chapter 68 is amended by adding at the end 
the following new item:
‘‘Sec. 6720A. Penalty with respect to certain adulterated fuels.’’.
H. R. 3—835
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to any transfer, sale, or holding out for sale or resale 
occurring after the date of the enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.