article: SECTION 1. TAX CREDIT FOR ENERGY CONSERVATION EXPENDITURES. (a) In General.--Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 35 as section 36 and by inserting after section 34 the following new section: ``SEC. 35. ENERGY CONSERVATION EXPENDITURES. ``(a) Allowance of Credit.--In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the energy conservation expenditures made by the taxpayer during such year. ``(b) Maximum Credit.--The amount of the credit allowed under subsection (a) with respect to each dwelling unit for the taxable year shall not exceed $2,000. ``(c) Energy Conservation Expenditures.--For purposes of this section-- ``(1) In general.--The term `energy conservation expenditures' means expenditures made by the taxpayer for qualified energy property-- ``(A) which is certified to equal or exceed energy conservation standards for such property or for the installation of such property as prescribed by the Secretary, in consultation with the Secretary of Energy, and ``(B) which is installed on or in connection with a dwelling unit-- ``(i) which is located in the United States, and ``(ii) which is used by the taxpayer as a residence. Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or installation of the property. ``(2) Qualified energy property.-- ``(A) In general.--The term `qualified energy property' means-- ``(i) swimming pool and hot tub covers, ``(ii) ceiling insulation, ``(iii) weatherstripping, ``(iv) water heater insulation blankets, ``(v) low-flow showerheads, ``(vi) caulking in ceilings, ``(vii) insulation of plenums and ducts, ``(viii) installation of storm windows with a U-value of 0.45 or less, ``(ix) thermal doors and windows, ``(x) duty cyclers, ``(xi) clock thermostats, ``(xii) evaporative coolers, ``(xiii) whole house fans, ``(xiv) external shading devices, ``(xv) thermal energy storage devices with central control systems, ``(xvi) controls and automatic switching devices between natural and electric lighting, or ``(xvii) any other property that the Secretary of Energy determines to be an effective device for the conservation of energy. ``(d) Certification.-- ``(1) Products.--A certification with respect to a qualified energy property shall be made by the manufacturer of such property. ``(2) Installation.--A certification with respect to the installation of a qualified energy property shall be made by the person who sold or installed the property. ``(3) Form of certifications.--Certifications referred to in this subsection shall be in such form as the Secretary shall prescribe, and, except in the case of a certification by a representative of a local building regulatory authority, shall include the taxpayer identification number of the person making the certification. ``(e) Special Rules.--For purposes of this section-- ``(1) Dollar amounts in case of joint occupancy.--In the case of any dwelling unit which if jointly occupied and used during any calendar year as a residence by 2 or more individuals the following shall apply: ``(A) The amount of the credit allowable under subsection (a) by reason of expenditures (as the case may be) made during such calendar year by any of such individuals with respect to such dwelling unit shall be determined by treating all of such individuals as 1 taxpayer whose taxable year is such calendar year. ``(B) There shall be allowable with respect to such expenditures to each of such individuals, a credit under subsection (a) for the taxable year in which such calendar year ends in an amount which bears the same ratio to the amount determined under subparagraph (A) as the amount of such expenditures made by such individual during such calendar year bears to the aggregate of such expenditures made by all of such individuals during such calendar year. ``(2) Tenant-stockholder in cooperative housing corporation.--In the case of an individual who is a tenant- stockholder (as defined in section 216) in a cooperative housing corporation (as defined in such section), such individual shall be treated as having made his tenant- stockholder's proportionate share (as defined in section 216(b)(3)) of any expenditures of such corporation. ``(3) Condominiums.-- ``(A) In general.--In the case of an individual who is a member of a condominium management association with respect to a condominium which he owns, such individual shall be treated as having made his proportionate share of any expenditures of such association. ``(B) Condominium management association.--For purposes of this paragraph, the term `condominium management association' means an organization which meets the requirements of paragraph (1) of section 528(c) (other than subparagraph (E) thereof) with respect to a condominium project substantially all of the units of which are used as residences. ``(4) Joint ownership of energy items.-- ``(A) In general.--Any expenditure otherwise qualifying as a energy conservation expenditure shall not be treated as failing to so qualify merely because such expenditure was made with respect to 2 or more dwelling units. ``(B) Limits applied separately.--In the case of any expenditure described in subparagraph (A), the amount of the credit allowable under subsection (a) shall (subject to paragraph (1)) be computed separately with respect to the amount of the expenditure made for each dwelling unit. ``(5) Allocation in certain cases.--If less than 80 percent of the use of an item is for nonbusiness residential purposes, only that portion of the expenditures for such item which is properly allocable to use for nonbusiness residential purposes shall be taken into account. ``(6) When expenditure made; amount of expenditure.-- ``(A) In general.--Except as provided in subparagraph (B), an expenditure with respect to an item shall be treated as made when the original installation of the item is completed. ``(B) Expenditures part of building construction.-- In the case of an expenditure in connection with the construction or reconstruction of a structure, such expenditure shall be treated as made when the original use of the constructed or reconstructed structure by the taxpayer begins. ``(C) Amount.--The amount of any expenditure shall be the cost thereof. ``(7) Other applicable rules.--Rules similar to the rules of paragraphs (4) and (5) of section 48(a) shall apply for purposes of this section. ``(f) Basis Adjustments.--For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed. ``(g) Denial of Double Benefit.--No deduction or other credit shall be allowed under this chapter for any expenditure for which credit is allowed under this section. ``(h) Election To Have Credit Not Apply.--A taxpayer may elect to have this section not apply for any taxable year. ``(i) Application of Section.--This section shall apply to expenditures with respect to property placed in service after December 31, 2000.''. (b) Conforming Amendments.-- (1) Section 1324(b)(2) of title 31, United States Code, is amended by striking ``or'' before ``enacted'' and by inserting before the period at the end ``, or from section 35 of such Code''. (2) The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 35 and inserting the following new items: ``Sec. 35. Energy conservation expenditures. ``Sec. 36. Overpayments of tax.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years ending after December 31, 2000. SEC. 2. FINANCIAL ASSISTANCE TO RETROFIT SCHOOLS TO INCREASE ENERGY EFFICIENCY AND CONSERVATION. (a) In General.--The Secretary of Energy shall establish a program to be known as the ``Elementary and Secondary School Energy Efficiency and Conservation Program''. (b) Grants.-- In carrying out this section, the Secretary shall provide grants to local educational agencies to retrofit elementary and secondary schools to increase energy efficiency and conservation. (c) Eligibility.--To be eligible to receive a grant under this section, a local educational agency shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (d) Use of Funds.--Amounts provided to a local educational agency under a grant under this section shall be used to pay the costs of-- (1)(A) energy-efficient heating, ventilation, and air conditioning; and (B) other equipment that would increase the energy efficiency of a school; and (2) insulation and other materials and equipment that would decrease the amount of energy required to operate a school. (e) Priority.--In awarding grants under this section, the Secretary shall give priority to projects to retrofit elementary and secondary schools in low-income school districts. (f) Cost Sharing.-- (1) In general.--Except as provided in paragraph (2), the Federal share of the cost of a project funded with a grant under this section shall be not more than 50 percent. (2) Financial hardship.--In a case of financial hardship, the Secretary may provide a grant in an amount exceeding 50 percent of the cost of the project. (g) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2002 through 2006. SEC. 3. ELECTRIC UTILITY DISCLOSURE OF PEAK HOUR AND NONPEAK HOUR ELECTRIC ENERGY USE BY CONSUMERS. Each electric utility that sells electric energy at retail shall-- (1) disclose in each billing statement-- (A) the amount of electric energy used by the consumer during peak hours (as defined by the electric utility) and nonpeak hours during the billing period; and (B) the rate charged during peak hours and nonpeak hours during the billing period; and (2) from time to time provide consumers information concerning ways of reducing electric energy consumption during peak hours.
summary: Amends the Internal Revenue Code to allow an annual residential energy credit of up to $2,000 for qualifying conservation expenditures.Directs the Secretary of Energy to establish the Elementary and Secondary School Energy Efficiency and Conservation Program to provide grants to local educational agencies to retrofit schools for increased energy conservation.Requires electric utility company billing statements to provide peak and nonpeak hour energy use and rate information.