TRANSMIX AND DIESEL FUEL BLEND STOCKS TREATED AS TAXABLE FUEL.

SEC. 870. TRANSMIX AND DIESEL FUEL BLEND STOCKS TREATED AS TAXABLE FUEL.(a) In General.—Paragraph (3) of section 4083(a) is amended to read as follows:“(3) Diesel fuel.—“(A) In general.—The term ‘diesel fuel’ means—“(i) any liquid (other than gasoline) which is suitable for use as a fuel in a diesel-powered highway vehicle, or a diesel-powered train, “(ii) transmix, and“(iii) diesel fuel blend stocks identified by the Secretary.118 STAT. 1624“(B) Transmix.—For purposes of subparagraph (A), the term ‘transmix’ means a byproduct of refined products pipeline operations created by the mixing of different specification products during pipeline transportation.”.(b) Conforming Amendment.—Subsection (h) of section 6427 is amended to read as follows:“(h) Blend Stocks Not Used for Producing Taxable Fuel.—“(1) Gasoline blend stocks or additives not used for producing gasoline.—Except as provided in subsection (k), if any gasoline blend stock or additive (within the meaning of section 4083(a)(2)) is not used by any person to produce gasoline and such person establishes that the ultimate use of such gasoline blend stock or additive is not to produce gasoline, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such gasoline blend stock or additive.“(2) Diesel fuel blend stocks or additives not used for producing diesel.—Except as provided in subsection (k), if any diesel fuel blend stock is not used by any person to produce diesel fuel and such person establishes that the ultimate use of such diesel fuel blend stock is not to produce diesel fuel, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such diesel fuel blend stock.”.(c) Effective Date.—The amendment made by this section shall apply to fuel removed, sold, or used after December 31, 2004.