with the Administrator, determines would be emitted by the combustion of covered fuels with respect to which the covered entity made the first sale in United States markets during the previous calendar year. (b) Use treated as sale For purposes of subsection (a), consumption for an emitting use by the covered entity of covered fuels produced by the covered entity shall be treated as a first sale. (c) Exemption A covered entity shall not have to surrender a carbon permit for the sale of a covered fuel consumed for a non-emitting use, as defined and verified by the Secretary in consultation with the Administrator, unless such covered fuel is sold to a person issued carbon permits under section 9906. 9905. Penalty for noncompliance (a) In general Any covered entity that fails for any year to surrender, by the deadline described in section 9904, one or more of the carbon permits due pursuant to such section shall be liable for payment to the Secretary of a penalty in the amount described in subsection (b). (b) Amount The amount of a penalty required to be paid under subsection (a) shall be equal to the product obtained by multiplying— (1) the number of carbon permits that the covered entity failed to surrender by the deadline, by (2) 3 times the fair market value of carbon permits issued for emissions occurring in the calendar year for which the carbon permits were due. (c) Timing A penalty required under this section shall be immediately due and payable to the Secretary, without demand, in accordance with regulations promulgated by the Secretary, which shall be issued not later than 1 year after the date of enactment of this subtitle. (d) No effect on liability A penalty due and payable by the covered entity under this section shall not diminish the liability of the covered entity for any fine, penalty, or assessment against the covered entity for the same violation under any other provision of law. (e) Penalty not deductible No deduction shall be allowed under subtitle A for a penalty paid under this section.