PUBLIC LAW 109–58—AUG. 8, 2005
119 STAT. 1019
‘‘(i) the amount of natural gas needed (other than for resale) by customers of such utility who are located within the service area of such utility, and ‘‘(ii) the amount of natural gas used to transport such natural gas to the utility. ‘‘(H) TESTING PERIOD.—For purposes of this paragraph, the term ‘testing period’ means, with respect to an issue, the most recent 5 calendar years ending before the date of issuance of the issue. ‘‘(I) SERVICE AREA.—For purposes of this paragraph, the service area of a utility owned by a governmental unit shall be comprised of— ‘‘(i) any area throughout which such utility provided at all times during the testing period— ‘‘(I) in the case of a natural gas utility, natural gas transmission or distribution services, and ‘‘(II) in the case of an electric utility, electricity distribution services, ‘‘(ii) any area within a county contiguous to the area described in clause (i) in which retail customers of such utility are located if such area is not also served by another utility providing natural gas or electricity services, as the case may be, and ‘‘(iii) any area recognized as the service area of such utility under State or Federal law.’’. (b) PRIVATE LOAN FINANCING TEST NOT TO APPLY TO PREPAYMENTS FOR NATURAL GAS.—Paragraph (2) of section 141(c) (providing exceptions to the private loan financing test) is amended by striking ‘‘or’’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘‘, or’’, and by adding at the end the following new subparagraph: ‘‘(C) is a qualified natural gas supply contract (as defined in section 148(b)(4)).’’. (c) EXCEPTION FOR QUALIFIED ELECTRIC AND NATURAL GAS SUPPLY CONTRACTS.—Section 141(d) is amended by adding at the end the following new paragraph: ‘‘(7) EXCEPTION FOR QUALIFIED ELECTRIC AND NATURAL GAS SUPPLY CONTRACTS.—The term ‘nongovernmental output property’ shall not include any contract for the prepayment of electricity or natural gas which is not investment property under section 148(b)(2).’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
26 USC 141 note.
SEC. 1328. DETERMINATION OF SMALL REFINER EXCEPTION TO OIL DEPLETION DEDUCTION.
(a) IN GENERAL.—Paragraph (4) of section 613A(d) (relating to limitations on application of subsection (c)) is amended to read as follows: ‘‘(4) CERTAIN REFINERS EXCLUDED.—If the taxpayer or one or more related persons engages in the refining of crude oil, subsection (c) shall not apply to the taxpayer for a taxable year if the average daily refinery runs of the taxpayer and such persons for the taxable year exceed 75,000 barrels. For purposes of this paragraph, the average daily refinery runs
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