Section 210(b) of the Public Utility Regulatory Policies Act of 1978 (
16 U.S.C. 824a–3(b)) is amended in the last sentence by inserting before the period at the end the following: “, except that the rule shall provide that a State regulatory authority or nonregulated electric utility, acting under State authority, may set rates that exceed the incremental cost of alternative electric energy for purchases from any qualifying cogeneration facility or qualifying small power production facility of not more than 2 megawatts capacity”.