article: SECTION 1. TREATMENT OF BONDS ISSUED TO FINANCE ELECTRIC OUTPUT FACILITIES. (a) In General.--Section 141 of the Internal Revenue Code of 1986 (relating to private activity bond; qualified bond) is amended by redesignating subsection (e) as subsection (f) and inserting after subsection (d) the following new subsection: ``(e) Bonds for Electric Output Facilities.-- ``(1) Bonds issued before enactment of comprehensive electricity competition act.-- ``(A) In general.--The determination of whether any pre-effective date electric output facility bond is a private activity bond (or an industrial development bond under the Internal Revenue Code of 1954), shall be made without regard to any permissible competitive actions taken by the issuer. ``(B) Pre-effective date electric output facility bond.--For purposes of subparagraph (A), the term `pre- effective date electric output facility bond' means any bond issued as part of an issue if-- ``(i) such bond was issued before the date of the enactment of the Comprehensive Electricity Competition Act, ``(ii) any portion of the proceeds of such issue was used with respect to an electric output facility, and ``(iii) such bond was not, as of such date of enactment, a private activity bond (or an industrial development bond under the Internal Revenue Code of 1954). ``(C) Permissible competitive actions.--For purposes of subparagraph (A), the term `permissible competitive actions' means any action taken by the issuer on or after the date of the enactment of the Comprehensive Electricity Competition Act regarding-- ``(i) transmission property owned by the issuer if the issuer is subject to an order of the Federal Energy Regulatory Commission requiring nondiscriminatory, open access to transmission facilities in a manner consistent with rules promulgated by the Commission under sections 205 and 206 of the Federal Power Act (as in effect on the date of the enactment of the Comprehensive Electricity Competition Act), or ``(ii) generation property or distribution property owned by the issuer if the issuer-- ``(I) implements retail competition under section 609 of the Public Utility Regulatory Policies Act of 1978 (as amended by, and as in effect on the date of the enactment of, the Comprehensive Electricity Competition Act), or ``(II) enters into a contract for the sale of electricity or use of its distribution property which will not become effective prior to the date that the issuer implements retail competition under section 609 of the Public Utility Regulatory Policies Act of 1978 (as amended by, and as in effect on the date of the enactment of, the Comprehensive Electricity Competition Act). ``(D) Comprehensive electricity competition act.-- For purposes of this paragraph, references to the Comprehensive Electricity Competition Act shall be treated as references to any law which is substantially identical to S. 2287 of the 105th Congress, as introduced. ``(2) Bonds issued on or after enactment of comprehensive electricity competition act.-- ``(A) In general.--For purposes of this title, the term `private activity bond' includes any bond issued as part of an issue any of the proceeds of which are to be used (directly or indirectly) for electric output facilities other than small distribution property. ``(B) Small distribution property.--For purposes of subparagraph (A), the term `small distribution property' means any output facility, including functionally related and subordinate property, that operates at 69 kilovolts or less.''. (b) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendment made by this section shall apply to obligations issued on or after the date of the enactment of the Comprehensive Electricity Competition Act (within the meaning of section 141(e)(1)(D) of the Internal Revenue Code of 1986, as added by this section). (2) Treatment of pre-effective date bonds.--Section 141(e)(1) of such Code, as added by this section, shall take effect on the date of the enactment of this Act. (3) Refunding bonds.-- (A) In general.--For purposes of this subsection and the amendment made by this section, section 141(e)(2) of the Internal Revenue Code of 1986, as added by this section, shall not apply to any qualified refunding bond. (B) Qualified refunding bond.--For purposes of subparagraph (A), the term ``qualified refunding bond'' means any bond (or a bond which is part of a series of refundings) issued to refund a pre-effective date electric output facility bond if-- (i) the weighted average maturity of the issue of which the refunding bond is a part does not exceed 120 percent of the average reasonably expected economic life of the facilities being financed with the net proceeds of such issue (determined under section 147(b) of such Code), (ii) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and (iii) the net proceeds of the refunding bond are used to redeem the refunded bond not later than 90 days after the date of issuance of the refunding bond. SEC. 2. NUCLEAR DECOMMISSIONING COSTS. (a) In General.--Subsection (b) of section 468A of the Internal Revenue Code of 1986 is amended to read as follows: ``(b) Limitation on Amount Paid Into Fund.--The amount which a taxpayer may pay into the Fund for any taxable year shall not exceed the ruling amount applicable to such taxable year.'' (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
summary: Amends the Internal Revenue Code concerning: (1) the treatment of bonds issued to finance electric output facilities; and (2) the special rules for nuclear decommissioning costs.