Page:United States Statutes at Large Volume 94 Part 1.djvu/335

 PUBLIC LAW 96-223—APR. 2, 1980

94 STAT. 285

(C) such facility is located at 1 of 2 dams located in the same county where— (i) the rated capacity of the hydroelectric generating facilities at each such dam on October 18, 1979, was more than 750 megawatts, (ii) the construction of the first such dam began in 1956, power at such first dam was first generated in 1959, and full power production at such first dam began in 1961, and (iii) the construction of the second such dam began in 1959, power at such second dam was first generated in 1963, and full power production at such second dam began in 1964, (D) acquisition or construction of the existing facility referred to in subparagraph (B) was financed with the proceeds of an obligation described in section 103(a)(l) of such Code, 26 USC 103. (E) the existing facility is owned and operated by a State, political subdivision of a State, or agency or instrumentality of any of the foregoing, (F) no more than 60 percent of the electric power and energy produced by such existing facility and of the qualified hydroelectric generating facility is to be sold to anyone other than an exempt person (within the meaning of section 103(b)(3) of such Code), and (G) the agency of the State in which the facility is located which has jurisdiction over water rights had granted, before October 18, 1979, a water right under which expanded power and energy generating capacity for the facility was contemplated. (c) EFFECTIVE DATE.—The amendments made by subsection (a) and 26 USC 103 note, the provisions of subsection (b) shall apply with respect to obligations issued after October 18, 1979. SEC, 243. RENEWABLE ENERGY PROPERTY. (a) CERTAIN PROPERTY.—

STATE

OBLIGATIONS FOR

26 USC 103 note. RENEWABLE ENERGY

(1) IN GENERAL.—Paragraph (1) of subsection (b) of section 103 of the Internal Revenue Code of 1954 shall not apply to any obligation issued as part of an issue substantially all of the proceeds of which are to be used to provide renewable energy property, if— (A) the obligations are general obligations of a State, (B) the authority for the issuance of the obligations requires that taxes be levied in sufficient amount to provide for the payment of principal and interest on such obligations, (C) the amount of such obligations, when added to the sum of the amounts of all such obligations previously issued by the State which are outstanding, does not exceed the smaller of— (i) $500,000,000 or (ii) one-half of 1 percent of the value of all property in the State, (D) such obligations are issued pursuant to a program to provide financing for small scale energy projects which was established by a State the legislature of which, before Octo-

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