"(A) IN GENERAL.-No tax shall be imposed under section 4661(a) on any chromium, cobalt, or nickel which is diverted or recovered in the United States from any solid waste as part of a recycling process (and not as part of the original manufacturing or production process).

"(B) EXEMPTION NOT TO APPLY WHILE CORRECTIVE ACTION UNCOMPLETED.-Subparagraph (A) shall not apply during any period tht required corrective action by the taxpayer at the unit at which the recycling occurs is uncompleted.

“(C) REQUIRED CORRECTIVE ACTION.-For purposes of subparagraph (B), required corrective action shall be treated as uncompleted during the period

"(i) beginning on the date that the corrective action is required by the Administrator or an authorized State pursuant to

"(D) a final permit under section 3005 of the Solid Waste Disposal Act or a final order under section 3004 or 3008 of such Act, or

"(II) a final order under section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, and

"(ii) ending on the date the Administrator or such State (as the case may be) certifies to the Secretary that such corrective action has been completed.

"(D) SPECIAL RULE FOR GROUNDWATER TREATMENT.—In the case of corrective action requiring groundwater treatment, such action shall be treated as completed as of the close of the 10-year period beginning on the date such action is required if such treatment complies with the permit or order applicable under subparagraph (C)(i) throughout such period. The preceding sentence shall cease to apply beginning on the date such treatment ceases to comply with such permit or order.

"E) SOLID WASTE.-For purposes of this paragraph, the term 'solid waste' has the meaning given such term by section 1004 of the Solid Waste Disposal Act, except that such term shall not include any byproduct, coproduct, or other waste from any process of smelting, refining, or otherwise extracting any metal.

"(9) SUBSTANCES USED IN THE PRODUCTION OF ANIMAL fee.“(A) IN GENERAL.—In the case of—

"(i) nitric acid,

"(ii) sulfuric acid,

"(iii) ammonia, or

"(iv) methane used to produce ammonia,

which is a qualified animal feed substance, no tax shall be imposed under section 4661(a).

"(B) QUALIFIED ANIMAL FEED SUBSTANCE.-For purposes of this section, the term 'qualified animal feed substance' means any substance

"(i) used in a qualified animal feed use by the manufacturer, producer, or importer,

"(ii) sold for use by any purchaser in a qualified animal feed use, or

"(iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified animal feed use. "(C) QUALIFIED ANIMAL FEED USE.-The term 'qualified animal feed use' means any use in the manufacture or production of animal feed or animal feed supplements, or of ingredients used in animal feed or animal feed supple

ments.

"(D) TAXATION OF NONQUALFIED SALE OR USE.-For purposes of section 4661(a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the 1st person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical. "(10) HYDROCARBON STREAMS CONTAINING MIXTURES OF ORGANIC TAXABLE CHEMICALS.

“(A) IN GENERAL.-No tax shall be imposed under section 4661(a) on any organic taxable chemical while such chemical is part of an intermediate hydrocarbon stream containing a mixture of organic taxable chemicals.

"(B) REMOVAL, ETC., TREATED AS USE.-For purposes of this part, if any organic taxable chemical on which no tax was imposed by reason of subparagraph (A) is isolated, extracted, or otherwise removed from, or ceases to be part of, an intermediate hydrocarbon stream

"(i) such isolation, extraction, removal, or cessation shall be treated as use by the person causing such event, and

"(ii) such person shall be treated as the manufacturer of such chemical.

"(C) REGISTRATION REQUIREMENT.-Subparagraph (A) shall not apply to any sale of any intermediate hydrocarbon stream unless the registration requirements of clauses (i) and (ii) of subsection (c)(2)(B) are satisfied.

"(D) ORGANIC TAXABLE CHEMICAL.-For purposes of this paragraph, the term 'organic taxable chemical' means any taxable chemical which is an organic substance.

["(c) USE BY MANUFACTURER, ETC., CONSIDERED SALE.-[IF] 6 Except as provided in subsection (b), if any person manufactures, produces, or imports a taxable chemical and uses such chemical, then such person shall be liable for tax under section 4661 in the same manner as if such chemical were sold by such person.] "(c) USE AND CERTAIN EXCHAnges by ManUFACTURER, ETC.—

"(1) USE TREATED AS SALE.-Except as provided in subsections (b) and (e), if any person manufactures, produces, or imports any taxable chemical and uses such chemical, then such person shall be liable for tax under section 4661 in the same manner as if such chemical were sold by such person.

"(2) SPECIAL RULES FOR INVENTORY EXCHANGES.–

"(A) IN GENERAL.-Except as provided in this paragraph, in any case in which a manufacturer, producer, or importer

6 This amendment was made by section 1019(c) of Public Law 98-369, the Deficit Reduction Act of 1984.

of a taxable chemical exchanges such chemical as part of an inventory exchange with another person

"(i) such exchange shall not be treated as a sale, and "(ii) such other person shall, for purposes of section 4661, be treated as the manufacturer, producer, or importer of such chemical.

"B) REGISTRATION REQUIREMENT.-Subparagraph (A) shall not apply to any inventory exchange unless

"(i) both parties are registered with the Secretary as manufacturers, producers, or importers of taxable chemicals, and

"(ii) the person receiving the taxable chemical has, at such time as the Secretary may prescribe, notified the manufacturer, producer, or importer of such person's registration number and the internal revenue district in which such person is registered.

"(C) INVENTORY EXCHANGE.—For purposes of this paragraph, the term 'inventory exchange' means any exchange in which 2 persons exchange property which is, in the hands of each person, property described in section 1221(1). "(d) REFUND OR CREDIT FOR CERTAIN USES.

“(1) IN GENERAL.-Under regulations prescribed by the Secretary, if—

"(A) a tax under section 4661 was paid with respect to any taxable chemical, and

"(B) such chemical was used by any person in the manufacture or production of any other substance [the sale of which by such person would be taxable under such section, which is a taxable chemical,

then an amount equal to the tax so paid shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by such section. In any case to which this paragraph applies, the amount of any such credit or refund shall not exceed the amount of tax [imposed by such section on the other substance manufactured or produced.] imposed by such section on the other substance manufactured or produced (or which would have been imposed by such section on such other substance but not for subsection (b) or (e) of this section).

"(2) USE AS FERTILIZER.-Under regulations prescribed by the Secretary, if

"(A) a tax under section 4661 was paid with respect to nitric acid, sulfuric acid, ammonia, or methane used to make ammonia without regard to subsection (b)(2), and

["(B) any person uses such substance, or sells such substance for use, as a qualified substance,]

7

"(B) any person uses such substance as a qualified fertil

izer,7 then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(2) shall be allowed as a credit or refund (without interest) to such person in the

"This amendment was made by section 1019(b)(2)(B) of Public Law 98-369, the Deficit Reduction Act of 1984.

same manner as if it were an overpayment of tax imposed by this section.

8"(3) USE AS Qualified fuel.-Under regulations prescribed by the Secretary, if

"(A) a tax under section 4661 was paid with respect to any chemical described in subparagraph (D) of subsection (b)(5) without regard to subsection (b)(5), and

"(B) any person uses such chemical as a qualified fuel substance,

then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(2) shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by this section.

"(4) USE IN THE PRODUCTION OF ANIMAL FEED.—Under regulations prescribed by the Secretary, if—

"(A) a tax under section 4661 was paid with respect to nitric acid, sulfuric acid, ammonia, or methane used to produce ammonia, without regard to subsection (b)(9), and

"(B) any person uses such substance as a qualified animal feed substance,

then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(9) shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by this section.

"(e) EXEMPTION FOR EXPORTS OF TAXABLE CHEMICALS.—

"(1) TAX-FREE SALES.

"(A) IN GENERAL.-No tax shall be imposed under section 4661 on the sale by the manufacturer or producer of any taxable chemical for export, or for resale by the purchaser to a second purchaser for export.

"(B) PROOF OF EXPORT REQUIRED.-Rules similar to the rules of section 4221(b) shall appy for purposes of subparagraph (A).

"(2) CREDIT OR REFUND WHERE TAX PAID.

“(A) IN GENERAL.-Except as provided in subparagraph (B), if

"(i) tax under section 4661 was paid with respect to any taxable chemical, and

"(ii)(I) such chemical was exported by any person, or "(II) such chemical was used as a material in the manufacture or production of a substance which was exported by any person and which, at the time of export, was a taxable substance (as defined in section 4672(a)),

credit or refund (without interest) of such tax shall be allowed or made to the person who paid such tax.

"(B) CONDITION TO ALLOWANCE.-No credit or refund shall be allowed or made under subparagraph (A) unless the person who paid the tax establishes that he

Paragraph (3) is an amendment made by section 1019(a)(2) of Public Law 98-369, the Deficit Reduction Act of 1984.

"(i) has repaid or agreed to repay the amount of the tax to the person who exported the taxable chemical or taxable substance (as so defined), or

"(ii) has obtained the written consent of such exporter to the allowance of the credit or the making of the refund.

"(3) REGULATIONS.-The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection.

["(e)] "(f) DISPOSITION OF REVENUES FROM PUERTO RICO AND THE VIRGIN ISLANDS.-The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4661.".

(b) CLERICAL AMENDMENT.-The table of chapters for subtitle D is amended by inserting after the item relating to chapter 37 the following new item:

"CHAPTER 38. Environmental taxes.".

(c) EFFECTIVE DATE.-The amendments made by this section shall take effect on April 1, 1981.

[Subtitle B 9-Establishment of Hazardous Substance Response Trust Fund

[SEC. 221. ESTABLISHMENT OF HAZARDOUS SUBSTANCE RESPONSE TRUST FUND.

[(a) CREATION OF TRUST FUND.-There is established in the Treasury of the United States a trust fund to be known as the ["Hazardous Substance Response Trust Fund"] "Hazardous Substances Superfund" 10 (hereinafter in this subtitle referred to as the "Response Trust Fund"), consisting of such amounts as may be appropriated or transferred to such Trust Fund as provided in this section.

[(b) TRANSFERS TO RESPONSE TRUST FUND.—

[(1) AMOUNTS EQUIVALENT TO CERTAIN TAXES, ETC.-There are hereby appropriated, out of any money in the Treasury not otherwise appropriated, to the Response Trust Fund amounts determined by the Secretary of the Treasury (hereinafter in this subtitle referred to as the "Secretary") to be equivalent

to

[(A) the amounts received in the Treasury under section 4611 or 4661 of the Internal Revenue Code of 1954,

[(B) the amounts recovered on behalf of the Response Trust Fund under this Act,

[(C) all moneys recovered or collected under section 311(b)(6)(B) of the Clean Water Act,

[(D) penalties assessed under title I of this Act, and

[(E) punitive damages under section 107(c)(8) of this Act. [(2) AUTHORIZATION FOR APPROPRIATIONS.-There is authorized to be appropriated to the Emergency Response Trust Fund for fiscal year—

Section 517(c) of Public Law 99-499 repeals this subtitle.

10 This amendment was made by section 204 of Public Law 99-499.