EXCEPTION TO THE LOCAL FURNISHING REQUIREMENT OF THE TAX-EXEMPT BOND RULES.

SEC. 1303. EXCEPTION TO THE LOCAL FURNISHING REQUIREMENT OF THE TAX-EXEMPT BOND RULES.(a) Snettisham Hydroelectric Facility.—For purposes of determining whether any private activity bond issued before May 31, 2006, and used to finance the acquisition of the Snettisham hydroelectric facility is a qualified bond for purposes of section 142(a)(8) of the Internal Revenue Code of 1986, the electricity furnished by such facility to the City of Hoonah, Alaska, shall not be taken into account for purposes of section 142(f)(1) of such Code.(b) Lake Dorothy Hydroelectric Facility.—For purposes of determining whether any private activity bond issued before May 31, 2006, and used to finance the Lake Dorothy hydroelectric facility is a qualified bond for purposes of section 142(a)(8) of the Internal Revenue Code of 1986, the electricity furnished by such facility to the City of Hoonah, Alaska, shall not be taken into account for purposes of paragraphs (1) and (3) of section 142(f) of such Code.(c) Definitions.—For purposes of this section—(1) Lake dorothy hydroelectric facility.—The term “Lake Dorothy hydroelectric facility” means the hydroelectric facility located approximately 10 miles south of Juneau, Alaska, and commonly referred to as the “Lake Dorothy project”.(2) Snettisham hydroelectric facility.—The term “Snettisham hydroelectric facility” means the hydroelectric project described in section 1804 of the Small Business Job Protection Act of 1996.