A bill to amend the Internal Revenue Code of 1986 to provide a refundable personal credit for energy conservation expenditures, and for other purposes.

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.