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(c) EFFECTIVE DATE.—The amendments made by this
section apply to articles exported on or after the date that
is 15 days after the date of the enactment of this Act.
PART III—BIODIESEL AND RENEWABLE DIESEL
FUEL
SEC. 12321. EXTENSION AND MODIFICATION OF CREDIT
FOR BIODIESEL AND RENEWABLE DIESEL
USED AS FUEL.
(a) EXTENSION.—
(1) INCOME TAX CREDITS FOR BIODIESEL AND
RENEWABLE
DIESEL
AND
SMALL
AGRI-BIODIESEL
PRODUCER CREDIT.—Section 40A(g) (relating to ter-
mination) is amended by striking ‘‘December 31,
2008’’ and inserting ‘‘December 31, 2010 (December
31, 2012, in the case of the credit allowed by reason
of subsection (a)(3))’’.
(2) EXCISE
TAX
CREDIT.—Section 6426(c)(6)
(relating to termination) is amended by striking
‘‘2008’’ and inserting ‘‘2010’’.
(3) FUELS
NOT
USED
FOR
TAXABLE
PUR-
POSES.—Section 6427(e)(5)(B) (relating to termi-
nation) is amended by striking ‘‘2008’’ and inserting
‘‘2010’’.
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(b) MODIFICATION OF CREDIT FOR RENEWABLE DIE-
SEL.—Section 40A(f) (relating to renewable diesel) is
amended by adding at the end the following new paragraph:
‘‘(4) SPECIAL RULE FOR CO-PROCESSED RENEW-
ABLE DIESEL.—In the case of a taxpayer which pro-
duces renewable diesel through the co-processing of
biomass and petroleum at any facility, this subsection
shall not apply to so much of the renewable diesel
produced at such facility and sold or used during the
taxable year in a mixture described in subsection
(b)(1)(B) as exceeds 60,000,000 gallons.’’.
(c) MODIFICATION RELATING TO DEFINITION OF AGRI-
BIODIESEL.—Paragraph (2) of section 40A(d) (relating to
agri-biodiesel) is amended by striking ‘‘and mustard seeds’’
and inserting ‘‘mustard seeds, and camelina’’.
(d) ELIGIBILITY OF CERTAIN AVIATION FUEL.—Sec-
tion 40A(f)(3) (defining renewable diesel) is amended by
adding at the end the following new flush sentence:
‘‘The term ‘renewable diesel’ also means fuel derived
from biomass (as defined in section 45K(c)(3)) using
a thermal depolymerization process which meets the
requirements of a Department of Defense specification
for military jet fuel or an American Society of Test-
ing and Materials specification for aviation turbine
fuel.’’.
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(e) EFFECTIVE DATES.—The amendments made by
this section shall apply to fuel sold or used after the date
of the enactment of this Act.
SEC. 12322. TREATMENT OF QUALIFIED ALCOHOL FUEL
MIXTURES AND QUALIFIED BIODIESEL FUEL
MIXTURES AS TAXABLE FUELS.
(a) IN GENERAL.—
(1) QUALIFIED
ALCOHOL
FUEL
MIXTURES.—
Paragraph (2) of section 4083(a) (relating to gaso-
line) is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (A),
(B) by redesignating subparagraph (B) as
subparagraph (C), and
(C) by inserting after subparagraph (A) the
following new subparagraph:
‘‘(B) includes any qualified mixture (as de-
fined in section 40(b)(1)(B)), and’’.
(2) QUALIFIED
BIODIESEL
FUEL
MIXTURES.—
Subparagraph (A) of section 4083(a)(3) (relating to
diesel fuel) is amended by striking ‘‘and’’ at the end
of clause (ii), by redesignating clause (iii) as clause
(iv), and inserting after clause (ii) the following new
clause:
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‘‘(iii) any qualified biodiesel mixture
(as defined in section 40A(b)(1)(B)), and’’.
(b) MODIFICATION OF BIODIESEL CERTIFICATION RE-
QUIREMENT.—Paragraph (4) of section 40A(b) is amended
by striking ‘‘which identifies’’ and all that follows and in-
serting ‘‘which—
‘‘(A) identifies the product produced and
the percentage of biodiesel and agri-biodiesel in
the product, and
‘‘(B) documents that the biodiesel was inde-
pendently tested and meets the requirements of
ASTM D6751.’’.
(c) INFORMATION REPORTING REQUIREMENT
FOR
PRODUCERS OF QUALIFIED MIXTURES.—Section 4101(d)
(relating to information reporting) is amended to read as
follows:
‘‘(d) INFORMATION REPORTING.—The Secretary—
‘‘(1) may require—
‘‘(A) information reporting by any person
registered under this section, and
‘‘(B) information reporting by such other
persons as the Secretary deems necessary to
carry out this part, and
‘‘(2) shall require information reporting by any
person registered under this section and producing
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any qualified mixture (as defined in section
40(b)(1)(B)) or any qualified biodiesel mixture (as
defined in section 40A(b)(1)(B)).
Any person who is required to report under this subsection
and who has 25 or more reportable transactions in a month
shall file such report in electronic format.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to fuels removed, entered, or sold after
December 31, 2007.
PART IV—ALTERNATIVE FUEL
SEC. 12331. EXTENSION AND MODIFICATION OF ALTER-
NATIVE FUEL CREDIT.
(a) EXTENSION.—
(1) ALTERNATIVE FUEL CREDIT.—Paragraph (4)
of section 6426(d) (relating to alternative fuel credit)
is amended by striking ‘‘September 30, 2009’’ and in-
serting ‘‘December 31, 2010’’.
(2) ALTERNATIVE
FUEL
MIXTURE
CREDIT.—
Paragraph (3) of section 6426(e) (relating to alter-
native fuel mixture credit) is amended by striking
‘‘September 30, 2009’’ and inserting ‘‘December 31,
2010’’.
(3) PAYMENTS.—Subparagraph (C) of section
6427(e)(5) (relating to termination) is amended by
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striking ‘‘September 30, 2009’’ and inserting ‘‘Decem-
ber 31, 2010’’.
(b) MODIFICATIONS.—
(1) ALTERNATIVE
FUEL
TO
INCLUDE
COM-
PRESSED
OR
LIQUIFIED
BIOMASS
GAS.—Paragraph
(2) of section 6426(d) (relating to alternative fuel
credit) is amended by striking ‘‘and’’ at the end of
subparagraph (E), by redesignating subparagraph
(F) as subparagraph (G), and by inserting after sub-
paragraph (E) the following new subparagraph:
‘‘(F) compressed or liquefied biomass gas,
and’’.
(2) CREDIT
ALLOWED
FOR
AVIATION
USE
OF
FUEL.—Paragraph (1) of section 6426(d) is amended
by inserting ‘‘sold by the taxpayer for use as a fuel
in aviation,’’ after ‘‘motorboat,’’.
(c) CARBON CAPTURE REQUIREMENT FOR CERTAIN
FUELS.—
(1) IN
GENERAL.—Subsection (d) of section
6426, as amended by subsection (a), is amended by
redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new para-
graph:
‘‘(4) CARBON CAPTURE REQUIREMENT.—
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‘‘(A) IN
GENERAL.—The requirements of
this paragraph are met if the fuel is certified,
under such procedures as required by the Sec-
retary, as having been derived from coal pro-
duced at a gasification facility which separates
and sequesters not less than the applicable per-
centage of such facility’s total carbon dioxide
emissions.
‘‘(B) APPLICABLE PERCENTAGE.—For pur-
poses of subparagraph (A), the applicable per-
centage is—
‘‘(i) 50 percent in the case of fuel pro-
duced after the date of the enactment of this
paragraph and on or before the earlier of—
‘‘(I) the date the Secretary makes
a determination under subparagraph
(C), or
‘‘(II) December 30, 2010, and
‘‘(ii) 75 percent in the case of fuel pro-
duced after the date on which the applicable
percentage under clause (i) ceases to apply.
‘‘(C) DETERMINATION TO INCREASE APPLI-
CABLE
PERCENTAGE
BEFORE
DECEMBER
31,
2010.—If the Secretary, after considering the rec-
ommendations of the Carbon Sequestration Ca-
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pability Panel, finds that the applicable percent-
age under subparagraph (B) should be 75 per-
cent for fuel produced before December 31, 2010,
the Secretary shall make a determination under
this subparagraph. Any determination made
under this subparagraph shall be made not later
than 30 days after the Secretary receives from
the Carbon Sequestration Panel the report re-
quired under section 331(c)(3)(D) of the Heart-
land, Habitat, Harvest, and Horticulture Act of
2007.’’.
(2) CONFORMING
AMENDMENT.—Subparagraph
(E) of section 6426(d)(2) is amended by inserting
‘‘which meets the requirements of paragraph (4) and
which is’’ after ‘‘any liquid fuel’’.
(3) 
CARBON
SEQUESTRATION
CAPABILITY
PANEL.—
(A) ESTABLISHMENT OF PANEL.—There is
established a panel to be known as the ‘‘Carbon
Sequestration Capability Panel’’ (hereafter in
this paragraph referred to as the ‘‘Panel’’).
(B) MEMBERSHIP.—The Panel shall be
composed of—
(i) 1 representative from the National
Academy of Sciences,
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(ii) 1 representative from the Univer-
sity of Kentucky Center for Applied Energy
Research, and
(iii) 1 individual appointed jointly by
the representatives under clauses (i) and
(ii).
(C) STUDY.—The Panel shall study the ap-
propriate percentage of carbon dioxide for sepa-
ration 
and 
sequestration 
under 
section
6426(d)(4) of the Internal Revenue Code of 1986
consistent with the purposes of such section. The
panel shall consider whether it is feasible to sep-
arate and sequester 75 percent of the carbon di-
oxide emissions of a facility, including costs and
other factors associated with separating and se-
questering such percentage of carbon dioxide
emissions.
(D) REPORT.—Not later than 6 months
after the date of the enactment of this Act, the
Panel shall report to the Secretary of Treasury,
the Committee on Finance of the Senate, and the
Committee on Ways and Means of the House of
Representatives on the study under subpara-
graph (C).
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(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to fuel sold or used after the date of the
enactment of this Act.
SEC. 12332. EXTENSION OF ALTERNATIVE FUEL VEHICLE
REFUELING PROPERTY CREDIT.
Paragraph (2) of section 30C(g) (relating to termi-
nation) is amended by striking ‘‘December 31, 2009’’ and
inserting ‘‘December 31, 2010’’.
Subtitle D—Agricultural Provisions
SEC. 12401. INCREASE IN LOAN LIMITS ON AGRICULTURAL
BONDS.
(a) IN
GENERAL.—Subparagraph (A) of section
147(c)(2) (relating to exception for first-time farmers) is
amended by striking ‘‘$250,000’’ and inserting ‘‘$450,000’’.
(b) INFLATION ADJUSTMENT.—Section 147(c)(2) is
amended by adding at the end the following new subpara-
graph:
‘‘(H) ADJUSTMENTS
FOR
INFLATION.—In
the case of any calendar year after 2008, the dol-
lar amount in subparagraph (A) shall be in-
creased by an amount equal to—
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year, determined by substituting ‘cal-
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endar year 2007’ for ‘calendar year 1992’
in subparagraph (B) thereof.
If any amount as increased under the preceding
sentence is not a multiple of $100, such amount
shall be rounded to the nearest multiple of
$100.’’.
(c) MODIFICATION OF SUBSTANTIAL FARMLAND DEFI-
NITION.—Section 147(c)(2)(E) (defining substantial farm-
land) is amended by striking ‘‘unless’’ and all that follows
through the period and inserting ‘‘unless such parcel is
smaller than 30 percent of the median size of a farm in
the county in which such parcel is located.’’.
(d) 
CONFORMING
AMENDMENT.—Section
147(c)(2)(C)(i)(II) is amended by striking ‘‘$250,000’’ and
inserting ‘‘the amount in effect under subparagraph (A)’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall apply to bonds issued after the date of the en-
actment of this Act.
SEC. 12402. MODIFICATION OF INSTALLMENT SALE RULES
FOR CERTAIN FARM PROPERTY.
(a) IN GENERAL.—Section 453(i) (relating to recogni-
tion of recapture income in year of disposition) is amended
by adding at the end the following new paragraph:
‘‘(3) EXCEPTION
FOR
CERTAIN
FARM
PROP-
ERTY.—Paragraph (1) shall not apply to any install-
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ment sale of any single purpose agricultural or horti-
cultural structure or any tree or vine bearing fruit or
nuts eligible for classification as 10-year property
under section 168(e)(3)(D).’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to installment sales occurring after the
date of the enactment of this Act.
SEC. 12403. ALLOWANCE OF SECTION 1031 TREATMENT FOR
EXCHANGES INVOLVING CERTAIN MUTUAL
DITCH, RESERVOIR, OR IRRIGATION COM-
PANY STOCK.
(a) IN GENERAL.—Section 1031 (relating to exchange
of property held for productive use or investment) is amend-
ed by adding at the end the following new subsection:
‘‘(i) SPECIAL RULES
FOR MUTUAL DITCH, RES-
ERVOIR, OR IRRIGATION COMPANY STOCK.—For purposes
of subsection (a)(2)(B), the term ‘stocks’ shall not include
shares in a mutual ditch, reservoir, or irrigation company
if at the time of the exchange—
‘‘(1) the mutual ditch, reservoir, or irrigation
company is an organization described in section
501(c)(12)(A) (determined without regard to the per-
centage of its income that is collected from its mem-
bers for the purpose of meeting losses and expenses),
and
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‘‘(2) the shares in such company have been recog-
nized by the highest court of the State in which such
company was organized or by applicable State statute
as constituting or representing real property or an
interest in real property.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to exchanges completed after the date
of the enactment of this Act.
SEC. 12404. CREDIT TO HOLDERS OF RURAL RENAISSANCE
BONDS.
(a) IN GENERAL.—Subpart H of part IV of subchapter
A of chapter 1 (relating to credits against tax) is amended
by adding at the end the following new section:
‘‘SEC. 54A. CREDIT TO HOLDERS OF RURAL RENAISSANCE
BONDS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a rural renaissance bond on 1 or more
credit allowance dates of the bond occurring during any
taxable year, there shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount
equal to the sum of the credits determined under subsection
(b) with respect to such dates.
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of the credit de-
termined under this subsection with respect to any
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credit allowance date for a rural renaissance bond is
25 percent of the annual credit determined with re-
spect to such bond.
‘‘(2) ANNUAL CREDIT.—The annual credit deter-
mined with respect to any rural renaissance bond is
the product of—
‘‘(A) the credit rate determined by the Sec-
retary under paragraph (3) for the day on which
such bond was sold, multiplied by
‘‘(B) the outstanding face amount of the
bond.
‘‘(3) DETERMINATION.—For purposes of para-
graph (2), with respect to any rural renaissance bond,
the Secretary shall determine daily or caused to be
determined daily a credit rate which shall apply to
the first day on which there is a binding, written con-
tract for the sale or exchange of the bond. The credit
rate for any day is the credit rate which the Sec-
retary or the Secretary’s designee estimates will per-
mit the issuance of rural renaissance bonds with a
specified maturity or redemption date without dis-
count and without interest cost to the qualified issuer.
‘‘(4) CREDIT ALLOWANCE DATE.—For purposes
of this section, the term ‘credit allowance date’
means—
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‘‘(A) March 15,
‘‘(B) June 15,
‘‘(C) September 15, and
‘‘(D) December 15.
Such term also includes the last day on which the
bond is outstanding.
‘‘(5) SPECIAL RULE FOR ISSUANCE AND REDEMP-
TION.—In the case of a bond which is issued during
the 3-month period ending on a credit allowance date,
the amount of the credit determined under this sub-
section with respect to such credit allowance date
shall be a ratable portion of the credit otherwise deter-
mined based on the portion of the 3-month period
during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—The
credit allowed under subsection (a) for any taxable year
shall not exceed the excess of—
‘‘(1) the sum of the regular tax liability (as de-
fined in section 26(b)) plus the tax imposed by section
55, over
‘‘(2) the sum of the credits allowable under this
part (other than subpart C, section 1400N(l), and this
section).
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‘‘(d) RURAL RENAISSANCE BOND.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘rural renaissance
bond’ means any bond issued as part of an issue if—
‘‘(A) the bond is issued by a qualified issuer
pursuant to an allocation by the Secretary to
such issuer of a portion of the national rural
renaissance bond limitation under subsection
(f)(2),
‘‘(B) 95 percent or more of the proceeds
from the sale of such issue are to be used for cap-
ital expenditures incurred by qualified borrowers
for 1 or more qualified projects,
‘‘(C) the qualified issuer designates such
bond for purposes of this section and the bond is
in registered form,
‘‘(D) the issue meets the requirements of
subsection (h), and
‘‘(E) such bond is not a federally guaran-
teed bond (within the meaning of section
149(b)(2)).
‘‘(2) 
QUALIFIED
PROJECT; 
SPECIAL
USE
RULES.—
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‘‘(A) IN
GENERAL.—The term ‘qualified
project’ means 1 or more projects described in
subparagraph (B) located in a rural area.
‘‘(B) PROJECTS DESCRIBED.—A project de-
scribed in this subparagraph is a project eligible
for assistance under—
‘‘(i) the utilities programs described in
section 381E(d)(2) of the Consolidated
Farm and Rural Development Act (7
U.S.C. 2009d(d)(2)),
‘‘(ii) the distance learning or telemedi-
cine programs authorized pursuant to chap-
ter 1 of subtitle D of title XXIII of the
Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 950aaa et seq.),
‘‘(iii) the rural electric programs au-
thorized pursuant to the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 901 et seq.),
‘‘(iv) the rural telephone programs au-
thorized pursuant to the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 901 et seq.),
‘‘(v) the broadband access programs
authorized pursuant to title VI of the Rural
Electrification Act of 1936 (7 U.S.C. 950bb
et seq.), and
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‘‘(vi) the rural community facility pro-
grams as described in section 381E(d)(1) of
the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2009d(d)(1)).
‘‘(C) REFINANCING
RULES.—For purposes
of paragraph (1)(B), a qualified project may be
refinanced with proceeds of a rural renaissance
bond only if the indebtedness being refinanced
(including any obligation directly or indirectly
refinanced by such indebtedness) was originally
incurred by a qualified borrower after the date
of the enactment of this section.
‘‘(D) REIMBURSEMENT.—For purposes of
paragraph (1)(B), a rural renaissance bond may
be issued to reimburse a qualified borrower for
amounts paid after the date of the enactment of
this section with respect to a qualified project,
but only if—
‘‘(i) prior to the payment of the origi-
nal expenditure, the qualified borrower de-
clared its intent to reimburse such expendi-
ture with the proceeds of a rural renais-
sance bond,
‘‘(ii) not later than 60 days after pay-
ment of the original expenditure, the quali-
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fied issuer adopts an official intent to reim-
burse the original expenditure with such
proceeds, and
‘‘(iii) the reimbursement is made not
later than 18 months after the date the
original expenditure is paid.
‘‘(E) TREATMENT OF CHANGES IN USE.—
For purposes of paragraph (1)(B), the proceeds
of an issue shall not be treated as used for a
qualified project to the extent that a qualified
borrower or qualified issuer takes any action
within its control which causes such proceeds not
to be used for a qualified project. The Secretary
shall prescribe regulations specifying remedial
actions that may be taken (including conditions
to taking such remedial actions) to prevent an
action described in the preceding sentence from
causing a bond to fail to be a rural renaissance
bond.
‘‘(F) TREATMENT OF OTHER SUBSIDIES.—
For purposes of subparagraph (B), a qualified
project does not include any portion of a project
financed by grants or subsidized financing pro-
vided (directly or indirectly) under a Federal
program, including any State or local obligation
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used to provide financing for such portion the
interest on which is exempt from tax under sec-
tion 103.
‘‘(e) MATURITY LIMITATIONS.—
‘‘(1) DURATION OF TERM.—A bond shall not be
treated as a rural renaissance bond if the maturity
of such bond exceeds the maximum term determined
by the Secretary under paragraph (2) with respect to
such bond.
‘‘(2) MAXIMUM
TERM.—During each calendar
month, the Secretary shall determine the maximum
term permitted under this paragraph for bonds issued
during the following calendar month. Such maximum
term shall be the term which the Secretary estimates
will result in the present value of the obligation to
repay the principal on the bond being equal to 50
percent of the face amount of such bond. Such present
value shall be determined without regard to the re-
quirements of paragraph (3) and using as a discount
rate the average annual interest rate of tax-exempt
obligations having a term of 10 years or more which
are issued during the month. If the term as so deter-
mined is not a multiple of a whole year, such term
shall be rounded to the next highest whole year.
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‘‘(3) RATABLE
PRINCIPAL
AMORTIZATION
RE-
QUIRED.—A bond shall not be treated as a rural ren-
aissance bond unless it is part of an issue which pro-
vides for an equal amount of principal to be paid by
the qualified issuer during each calendar year that
the issue is outstanding.
‘‘(f) LIMITATION
ON
AMOUNT
OF
BONDS
DES-
IGNATED.—
‘‘(1) NATIONAL
LIMITATION.—There is a na-
tional 
rural 
renaissance 
bond 
limitation 
of
$400,000,000.
‘‘(2) ALLOCATION BY SECRETARY.—
‘‘(A) IN
GENERAL.—In accordance with
subparagraph (B), the Secretary shall allocate
the amount described in paragraph (1) among at
least 20 qualified projects, or such lesser number
of qualified projects with proper applications
filed after 12 months after the adoption of the se-
lection process under subparagraph (B).
‘‘(B) SELECTION
PROCESS.—In consulta-
tion with the Secretary of Agriculture, the Sec-
retary shall adopt a process to select projects de-
scribed in subparagraph (A). Under such proc-
ess, the Secretary shall not allocate more than 15
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percent of the allocation under subparagraph (A)
to qualified projects within a single State.
‘‘(g) CREDIT INCLUDED IN GROSS INCOME.—Gross in-
come includes the amount of the credit allowed to the tax-
payer under this section (determined without regard to sub-
section (c)) and the amount so included shall be treated as
interest income.
‘‘(h) SPECIAL RULES RELATING TO EXPENDITURES.—
‘‘(1) IN GENERAL.—An issue shall be treated as
meeting the requirements of this subsection if, as of
the date of issuance, the qualified issuer reasonably
expects—
‘‘(A) at least 95 percent of the proceeds from
the sale of the issue are to be spent for 1 or more
qualified projects within the 5-year period begin-
ning on the date of issuance of the rural renais-
sance bond,
‘‘(B) a binding commitment with a third
party to spend at least 10 percent of the proceeds
from the sale of the issue will be incurred within
the 6-month period beginning on the date of
issuance of the rural renaissance bond or, in the
case of a rural renaissance bond the proceeds of
which are to be loaned to 2 or more qualified
borrowers, such binding commitment will be in-
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curred within the 6-month period beginning on
the date of the loan of such proceeds to a quali-
fied borrower, and
‘‘(C) such projects will be completed with
due diligence and the proceeds from the sale of
the issue will be spent with due diligence.
‘‘(2) EXTENSION OF PERIOD.—Upon submission
of a request prior to the expiration of the period de-
scribed in paragraph (1)(A), the Secretary may ex-
tend such period if the qualified issuer establishes that
the failure to satisfy the 5-year requirement is due to
reasonable cause and the related projects will continue
to proceed with due diligence.
‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT OF
BOND PROCEEDS WITHIN 5 YEARS.—To the extent that
less than 95 percent of the proceeds of such issue are
expended by the close of the 5-year period beginning
on the date of issuance (or if an extension has been
obtained under paragraph (2), by the close of the ex-
tended period), the qualified issuer shall redeem all of
the nonqualified bonds within 90 days after the end
of such period. For purposes of this paragraph, the
amount of the nonqualified bonds required to be re-
deemed shall be determined in the same manner as
under section 142.
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‘‘(i) SPECIAL RULES RELATING TO ARBITRAGE.—A
bond which is part of an issue shall not be treated as a
rural renaissance bond unless, with respect to the issue of
which the bond is a part, the qualified issuer satisfies the
arbitrage requirements of section 148 with respect to pro-
ceeds of the issue.
‘‘(j) DEFINITIONS AND SPECIAL RULES RELATING TO
ISSUERS AND BORROWERS.—For purposes of this section—
‘‘(1) QUALIFIED
ISSUER.—The term ‘qualified
issuer’ means—
‘‘(A) a rural renaissance bond lender,
‘‘(B) a cooperative electric company, or
‘‘(C) a governmental body.
‘‘(2) QUALIFIED BORROWER.—The term ‘quali-
fied borrower’ means—
‘‘(A) a mutual or cooperative electric com-
pany 
described 
in 
section 
501(c)(12) 
or
1381(a)(2)(C), or
‘‘(B) a governmental body.
‘‘(3) RURAL RENAISSANCE BOND LENDER.—The
term ‘rural renaissance bond lender’ means a lender
which is a cooperative which is owned by, or has out-
standing loans to, 100 or more cooperative electric
companies and is in existence on February 1, 2002,