TREATMENT UNDER LOCAL FURNISHING RULES OF CERTAIN ELECTRICITY TRANSMITTED OUTSIDE LOCAL AREA.

SEC. 1919. TREATMENT UNDER LOCAL FURNISHING RULES OF CERTAIN ELECTRICITY TRANSMITTED OUTSIDE LOCAL AREA. (a) In General.—Subsection (f) of section 142 (relating to local furnishing of electric energy or gas) is amended to read as follows: “(f) Local Furnishing of Electric Energy or Gas.—For purposes of subsection (a)(8)— “(1) In General.— The local furnishing of electric energy or gas from a facility shall only include furnishing solely within the area consisting of— “(A) a city and 1 contiguous county, or 106 STAT. 3026 “(B) 2 contiguous counties. “(2) Treatment of certain electric energy transmitted outside local area.— “(A) In general.—A facility shall not be treated as failing to meet the local furnishing requirement of subsection (a)(8) by reason of electricity transmitted pursuant to an order of the Federal Energy Regulatory Commission under section 211 or 213 of the Federal Power Act (as in effect on the date of the enactment of this paragraph) if the portion of the cost of the facility financed with tax-exempt bonds is not greater than the portion of the cost of the facility which is allocable to the local furnishing of electric energy (determined without regard to this paragraph). “(B) Special rule for existing facilities.— In the case of a facility financed with bonds issued before the date of an order referred to in subparagraph (A) which would (but for this subparagraph) cease to be tax-exempt by reason of subparagraph (A), such bonds shall not cease to be tax-exempt bonds (and section 150(b)(4) shall not apply) if, to the extent necessary to comply with subparagraph (A)— “(i) an escrow to pay principal of, premium (if any), and interest on the bonds is established within a reasonable period after the date such order becomes final, and “(ii) bonds are redeemed not later than the earliest date on which such bonds may be redeemed.” (b) Effective Date.— The amendment made by subsection (a) shall apply to obligations issued before, on, or after the date of the enactment of this Act.