TERMINATION OF DYED DIESEL USE BY INTERCITY BUSES.

SEC. 857. TERMINATION OF DYED DIESEL USE BY INTERCITY BUSES.(a) In General.—Paragraph (3) of section 4082(b) (relating to nontaxable use) is amended to read as follows: “(3) any use described in section 4041(a)(1)(C)(iii)(II).”.(b) Ultimate Vendor Refund.—Subsection (b) of section 6427 is amended by adding at the end the following new paragraph:“(4) Refunds for use of diesel fuel in certain intercity buses.—With respect to any fuel to which paragraph (2)(A) applies, if the ultimate purchaser of such fuel waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor—“(A) is registered under section 4101, and“(B) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).”.(c) Payment of Refunds.—Subparagraph (A) of section 6427(i)(4), as amended by this Act, is amended by inserting “subsections (b)(4) and” after “filed under”.(d) Effective Date.—The amendments made by this section shall apply to fuel sold after December 31, 2004.