(4) by striking ‘‘alternative fuel’’ each place it 
appears in paragraphs (4) and (6), as redesignated 
by paragraph (2), and inserting ‘‘fuel’’, and 
(5) by striking ‘‘biodiesel mixture (as defined in 
section 6426(c)(3))’’ in paragraph (7)(B), as so re-
designated, and inserting ‘‘biodiesel (within the 
meaning of section 40A)’’. 
(c) EXEMPTION FOR TRANSFERS BETWEEN REG-
ISTERED
FACILITIES.—Subparagraph (B) of section 
4081(a)(1) of such Code is amended by adding at the end 
the following new clause: 
‘‘(iii) The tax imposed by this para-
graph shall not apply to biodiesel that is 
removed from a registered IRS biodiesel 
plant and is transferred to a IRS reg-
istered terminal or refinery.’’. 
(d) PRODUCER
REGISTRATION
REQUIREMENT.— 
Subsection (a) of section 6426 of such Code is amended 
by striking ‘‘subsections (d) and (e)’’ in the flush sentence 
at the end and inserting ‘‘subsections (c), (d), and (e)’’. 
(e) RECAPTURE.—Subsection (f) of section 6426 of 
such Code is amended to read as follows: 
‘‘(f) RECAPTURE.— 
‘‘(1) ALCOHOL FUEL MIXTURES.—If— 
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‘‘(A) any credit was determined under this 
section with respect to alcohol used in the pro-
duction of any alcohol fuel mixture, and 
‘‘(B) any person— 
‘‘(i) separates the alcohol from the 
mixture, or 
‘‘(ii) without separation, uses the mix-
ture other than as a fuel, 
then there is hereby imposed on such person a tax 
equal to the product of the applicable amount and 
the number of gallons of such alcohol. 
‘‘(2) BIODIESEL.—If any credit was determined 
under this section with respect to the production of 
any biodiesel and any person does not use such bio-
diesel for a purpose described in subsection (c)(1), 
then there is hereby imposed on such person a tax 
equal to $1 for each gallon of such biodiesel. 
‘‘(3) APPLICABLE LAWS.—All provisions of law, 
including penalties, shall, insofar as applicable and 
not inconsistent with this section, apply in respect of 
any tax imposed under paragraph (1) or (2) as if 
such tax were imposed by section 4081 and not by 
this section.’’. 
(f) CLERICAL AMENDMENT.—The heading of section 
6426 of such Code (and the item relating to such section 
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in the table of sections for subchapter B of chapter 65 
of such Code) is amended by striking ‘‘alcohol fuel, bio-
diesel, and alternative fuel mixtures’’ and inserting ‘‘alco-
hol fuel mixtures, biodiesel production, and alternative fuel 
mixtures’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to biodiesel sold or used after De-
cember 31, 2009. 
SEC. 3. BIODIESEL TREATED AS TAXABLE FUEL. 
(a) BIODIESEL TREATED
AS TAXABLE FUEL.— 
Clause (i) of section 4083(a)(3)(A) of such Code is amend-
ed by inserting ‘‘, including biodiesel (as defined in section 
6426(c)(3)),’’ after ‘‘(other than gasoline)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to biodiesel removed, entered, or 
sold after the date which is 6 months after the date of 
the enactment of this Act. 
Æ 
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