Page:United States Statutes at Large Volume 106 Part 4.djvu/290

 106 STAT. 3026 PUBLIC LAW 102-486—OCT. 24, 1992 "(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 witii taxexempt bonds is not greater than the portion of the cost of the facility which is allocable to the local furnishing -I 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 Mdthin 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." 26 USC 142 note. (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. SEC. 1920. AIX;OHOL FUELS. (a) REDUCED RATE OF TAX ON GASOLINE MIXED WITH ALCO- HOL.— Paragraph (1) of section 4081(c) (relating to gasoline mixed with alcohol at refinery, ete.) is amended to read as follows: "(1) IN GENERAL.— Under regulations prescribed by the Secretary, subsection (a) shall be applied by multiplying the otherwise applicable rate by a fraction the numerator of which is 10 and the denominator of which is— "(A) 9 in the case of 10 percent gasohol, "(B) 9.23 in the case of 7.7 percent gasohol, and "(C) 9.43 in the case of 5.7 percent gasohol, in the case of the removal or entry of any gasoline for use in producing gasohol at the time of such removed or entry. Subject to such terms and conditions as the Secretary may prescribe (including the application of section 4101), the treatment under the preceding sentence also shall apply to use in producing gasohol after the time of such removal or entry." (b) CONFORMING AMENDMENTS.—Section 4081(c) is amended^ (1) by striking "6.1 cents a gallon" in paragraph (2) and inserting "an otherwise applicable rate", and (2) by striking paragraph (4) and inserting the following new paragraph: ^^(4) OTHERWISE APPLICABLE RATE.— For purposes of this subsection— ,^.•;

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