[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5531 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5531

To amend the Internal Revenue Code of 1986 to impose a windfall profit 
              tax on electricity, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 24, 2000

  Mr. Kucinich (for himself and Mr. Filner) introduced the following 
  bill; which was referred to the Committee on Ways and Means, and in 
addition to the Committee on Commerce, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to impose a windfall profit 
              tax on electricity, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electricity Price Spike Act of 
2000''.

SEC. 2. WINDFALL PROFITS TAX.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
(relating to alcohol, tobacco, and certain other excise taxes) is 
amended by adding at the end thereof the following new chapter:

              ``CHAPTER 55--WINDFALL PROFIT ON ELECTRICITY

                              ``Sec. 5886. Imposition of tax.

``SEC. 5886. IMPOSITION OF TAX.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed an excise tax on the sale in the United 
States of any electricity equal to the applicable percentage of the 
windfall profit on such sale.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Windfall profit.--The term `windfall profit' means, 
        with respect to any sale, so much of the profit on such sale as 
        exceeds a reasonable profit.
            ``(2) Applicable percentage.--The term `applicable 
        percentage' means--
                    ``(A) 50 percent to the extent that the profit on 
                the sale exceeds 100 percent of the reasonable profit 
                on the sale but does not exceed 102 percent of the 
                reasonable profit on the sale,
                    ``(B) 75 percent to the extent that the profit on 
                the sale exceeds 102 percent of the reasonable profit 
                on the sale but does not exceed 105 percent of the 
                reasonable profit on the sale, and
                    ``(C) 100 percent to the extent that the profit on 
                the sale exceeds 105 percent of the reasonable profit 
                on the sale.
            ``(4) Reasonable profit.--The term `reasonable profit' 
        means the amount determined by the Reasonable Profits Board to 
        be a reasonable profit on the sale.
    ``(c) Liability for Payment of Tax.--The taxes imposed by 
subsection (a) shall be paid by the seller.''
    (b) Clerical Amendment.--The table of chapters for subtitle E of 
such Code is amended by adding at the end the following new item:

                              ``Chapter 55. Windfall profit on 
                                        electricity.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. CREDIT FOR ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25A the 
following new section:

``SEC. 25B. ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 20 percent of the amount paid 
or incurred by the taxpayer for qualified energy efficiency 
improvements installed during such taxable year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by this section 
        with respect to a dwelling shall not exceed $2,000.
            ``(2) Prior credit amounts for taxpayer on same dwelling 
        taken into account.--If a credit was allowed to the taxpayer 
        under subsection (a) with respect to a dwelling in 1 or more 
        prior taxable years, the amount of the credit otherwise 
        allowable for the taxable year with respect to that dwelling 
        shall not exceed the amount of $2,000 reduced by the sum of the 
        credits allowed under subsection (a) to the taxpayer with 
        respect to the dwelling for all prior taxable years.
    ``(c) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) exceeds the limitation imposed by section 26(a) for such 
taxable year reduced by the sum of the credits allowable under subpart 
A of part IV of subchapter A (other than this section), such excess 
shall be carried to the succeeding taxable year and added to the credit 
allowable under subsection (a) for such taxable year.
    ``(d) Qualified Energy Efficiency Improvements.--For purposes of 
this section, the term `qualified energy efficiency improvements' means 
any energy efficient building envelope component, and any energy 
efficient heating, cooling, or water heating appliance, the 
installation of which, by itself or in combination with other such 
components or appliances, is certified to improve the annual energy 
performance of the existing home by at least 30 percent, if--
            ``(1) such component or appliance is installed in or on a 
        dwelling--
                    ``(A) located in the United States, and
                    ``(B) owned and used by the taxpayer as the 
                taxpayer's principal residence (within the meaning of 
                section 121),
            ``(2) the original use of such component or appliance 
        commences with the taxpayer, and
            ``(3) such component or appliance reasonably can be 
        expected to remain in use for at least 5 years.
Such certification shall be made by the contractor who installed such 
improvements, a local building regulatory authority, or a qualified 
energy consultant (such as a utility or an accredited home energy 
rating system provider).
    ``(e) Special Rules.--
            ``(1) 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 paid his tenant-
        stockholder's proportionate share (as defined in section 
        216(b)(3)) of the cost of qualified energy efficiency 
        improvements made by such corporation.
            ``(2) 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 paid his 
                proportionate share of the cost of qualified energy 
                efficiency improvements made by 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.
    ``(f) Basis Adjustment.--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) Termination.--Subsection (a) shall apply to qualified energy 
efficiency improvements installed during the period beginning on 
January 1, 1999, and ending on December 31, 2003.''.
    (b) Conforming Amendments.--
            (1) Subsection (c) of section 23 of such Code is amended by 
        inserting ``, section 25B, and section 1400C'' after ``other 
        than this section''.
            (2) Subparagraph (C) of section 25(e)(1) of such Code is 
        amended by striking ``section 23'' and inserting ``sections 23, 
        25B, and 1400C''.
            (3) Subsection (d) of section 1400C of such Code is amended 
        by inserting ``and section 25B'' after ``other than this 
        section''.
            (4) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (26), by striking 
        the period at the end of paragraph (27) and inserting ``; 
        and'', and by adding at the end the following new paragraph:
            ``(28) to the extent provided in section 25B(f), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 25B.''.
            (5) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 25A the following new item:

                              ``Sec. 25B. Energy efficiency 
                                        improvements to existing 
                                        homes.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 1998.

SEC. 4. CITIZENS' UTILITY BOARDS.

    (a) Establishment.--Unless already in existence, each State shall 
create a not-for-profit membership corporation to be known as the 
``Citizens' Utility Board, Inc.'' herein referred to as the State CUB. 
An existing not-for-profit membership corporation located in a State 
may become the State CUB provided it meets all the requirements of this 
section.
    (b) Membership.--The membership of the State CUB shall consist of 
all residential consumers of electricity 16 years of age or older who 
have contributed to the State CUB an annual membership fee, provided, 
that any person may resign from membership.
    (c) Duties, Rights, and Powers of the State CUB.--
            (1) Duties.--The State CUB shall--
                    (A) represent and promote the interests of a 
                State's residential consumers of electricity, and all 
                actions by the State CUB under this section shall be 
                directed toward such duty;
                    (B) inform, insofar as possible, all residential 
                consumers of electricity about the State CUB, including 
                the procedure for obtaining membership in the State 
                CUB;
                    (C) establish an annual membership fee which shall 
                be set at a level that provides sufficient funding for 
                the State CUB to effectively perform its powers and 
                duties, and is affordable for as many electricity 
                consumers as is possible, but nevertheless is not less 
                than $5; and
                    (D) have all rights and powers accorded generally 
                to, and be subject to all duties imposed generally 
                upon, not-for-profit membership corporations under the 
                laws of a State.
            (2) Rights and powers.--In addition, the State CUB shall 
        have the following rights and powers:
                    (A) To solicit and accept gifts, loans, grants or 
                other aid in order to support activities concerning the 
                interests of residential consumers of electricity, 
                except that the State CUB may not accept gifts, loans 
                or other aid from any person or company that generates, 
                transmits, distributes, or supplies electricity, or 
                from any director, employee or agent or member of the 
                immediate family of a director, employee or agent of 
                any company that generates, transmits, distributes, or 
                supplies electricity.
                    (B) To seek tax-exempt status under State and 
                Federal law.
                    (C) To conduct, support, and assist research, 
                surveys, investigations, planning activities, 
                conferences, demonstration projects, and public 
                information activities concerning the interests of 
                residential consumers of electricity. The State CUB may 
                accept grants, contributions, and legislative 
                appropriations for such activities.
                    (D) To contract for services which cannot 
                reasonably be performed by its employees.
                    (E) To represent the interests of residential 
                consumers of electricity before regulatory agencies, 
                legislative bodies and other public bodies.
                    (F) To initiate, to intervene as a party, to 
                maintain, or to otherwise participate on behalf of 
                residential consumers of electricity in any proceeding 
                that affects the interests of residential consumers of 
                electricity.
                    (G) To support or oppose ballot propositions 
                concerning matters that it determines may affect the 
                interests of residential consumers of electricity.
            (3) The State CUB shall have, in addition to the rights and 
        powers enumerated in this section, such other incidental rights 
        and powers as are reasonably necessary for the effective 
        representation and protection of the interests of residential 
        consumers of electricity.
            (4) Nonpolitical.--The State CUB shall not sponsor, 
        endorse, or otherwise support, nor shall it oppose, any 
        political party or the candidacy of any person for public 
        office.
    (d) State-Assisted Fundraising by the State CUB.--
            (1) In general.--(1) The State CUB shall have the authority 
        to prepare and furnish to any State agency an enclosure that 
        the State agency shall include within any mailing designated by 
        the State CUB. The State CUB shall provide the agency with any 
        such enclosure at a time reasonably in advance of the mailing. 
        The State CUB may not require any State agency to mail an 
        enclosure more than four times in any calendar year.
            (2) Limitation.--Enclosures furnished by the State CUB 
        under this section shall be limited to soliciting information 
        and money from consumers and explaining--
                    (A) the purpose, history, nature, activities, and 
                achievements of the State CUB;
                    (B) that the State CUB is open to membership by 
                residential consumers;
                    (C) that the State CUB is not connected to any 
                utility company or governmental agency;
                    (D) that the State CUB is a not-for-profit 
                corporation directed by its consumer members;
                    (E) the procedure for contributing to or becoming a 
                member of the State CUB; and
                    (F) the yearly membership fee.
            (3) Approval of content of enclosure.--Prior to furnishing 
        an enclosure to a State agency for mailing, the State CUB shall 
        seek and obtain the approval of the appropriate State authority 
        of the content of the enclosure. The State authority shall 
        approve the enclosure if it determines that the enclosure--
                    (A) is not false or misleading, and
                    (B) contains and is limited to the information 
                permitted by this section.
        The State authority shall be deemed to have approved the 
        enclosure unless it disapproves the enclosure within 14 days of 
        receipt.
            (4) Reimbursement of costs incurred.--The State CUB shall 
        reimburse each State agency for all reasonable incremental 
        costs incurred by the State agency in complying with this 
        section above the agency's normal mailing and handling costs, 
        provided that--
                    (A) the State agency shall first furnish the State 
                CUB with an itemized accounting of such additional 
                costs; and
                    (B) the State CUB shall not be required to 
                reimburse the State agency for postage costs if the 
                weight of the State CUB's enclosure does not increase 
                the cost of the State agency mailing.
        If the State CUB's enclosure increases the cost of the State 
        agency mailing, then it will be required to reimburse the State 
        agency for postage cost over and above what the agency's 
        postage cost would have been without the State CUB's enclosure.

SEC. 5. REASONABLE PROFITS BOARD.

    (a) Establishment.--There is established an independent board to be 
known as the ``Reasonable Profits Board'' (hereafter in this section 
referred to as the ``Board'').
    (b) Duties.--The Board shall make reasonable profit determinations 
for purposes of applying section 5886 of the Internal Revenue Code of 
1986 (relating to windfall profit on electricity).
    (c) Advisory Committee.--The Board shall be considered an advisory 
committee within the meaning of the Federal Advisory Committee Act (5 
U.S.C. App.).
    (d) Appointment.--
            (1) Members.--The Board shall be composed of 3 members 
        appointed by the President of the United States.
            (2) Term.--Members of the Board shall be appointed for a 
        term of 3 years.
            (3) Background.--The members shall have no financial 
        interests in any of the businesses for which reasonable profits 
        are determined by the Board.
    (e) Pay and Travel Expenses.--
            (1) Pay.--Notwithstanding section 7 of the Federal Advisory 
        Committee Act (5 U.S.C. App.), members of the Board shall be 
        paid at a rate equal to the daily equivalent of the minimum 
        annual rate of basic pay for level IV of the Executive Schedule 
        under section 5315 of title 5, United States Code, for each day 
        (including travel time) during which the member is engaged in 
        the actual performance of duties vested in the Board.
            (2) Travel expenses.--Members shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with section 5702 and 5703 of title 5, United States 
        Code.
    (f) Director of Staff.--
            (1) Qualifications.--The Board shall appoint a Director who 
        has no financial interests in any of the businesses for which 
        reasonable profits are determined by the Board.
            (2) Pay.--Notwithstanding section 7 of the Federal Advisory 
        Committee Act (5 U.S.C. App.), the Director shall be paid at 
        the rate of basic pay payable for level IV of the Executive 
        Schedule under section 5315 of title 5, United States Code.
    (g) Staff.--
            (1) Additional personnel.--The Director, with the approval 
        of the Board, may appoint and fix the pay of additional 
        personnel.
            (2) Appointments.--The Director may make such appointments 
        without regard to the provisions of title 5, United States 
        Code, governing appointments in the competitive service, and 
        any personnel so appointed may be paid without regard to the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        that title relating to classification and General Schedule pay 
        rates.
            (3) Detailees.--Upon the request of the Director, the head 
        of any Federal department or agency may detail any of the 
        personnel of that department or agency to the Board to assist 
        the Board in accordance with an agreement entered into with the 
        Board.
            (4) Assistance.--The Comptroller General of the United 
        States may provide assistance, including the detailing of 
        employees, to the Board in accordance with an agreement entered 
        into with the Board.
    (h) Other Authority.--
            (1) Experts and consultants.--The Board may procure by 
        contract, to the extent funds are available, the temporary or 
        intermittent services of experts or consultants pursuant to 
        section 3109 of title 5, United States Code.
            (2) Leasing.--The Board may lease space and acquire 
        personal property to the extent that funds are available.
    (i) Funding.--There are authorized to be appropriated such funds as 
are necessary to carry out this section.
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