Conservation Service Reform Act of 1986
PL 99-412 (S.410), enacted 08/28/1986

100 STAT. 932 
PUBLIC LAW 99-412—AUG. 28, 1986 
Public Law 99-412 
99th Congress 
An Act 
Aug. 28, 1986 
[S. 410] 
Conservation 
Service 
Reform Act of 
1986. 
Energy. 
42 use 8201 
note. 
Utilities. 
Post, p. 934. 
42 use 8216 
note. 
To reform the Residential Conservation Service and to repeal the Commercial and 
Apartment Conservation Service. 
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 "Conservation Service Reform Act of 
1986". 
TITLE 1—RESIDENTIAL CONSERVATION SERVICE 
SEC. 101. RESTATEMENT OF FINDINGS. 
Section 102(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8201(a)) (relating to findings) is amended to read as follows: 
"(a) FINDINGS.—The Congress finds that— 
"(1) the United States has survived a period of energy short-
age and has made significant progress toward improving energy 
efficiency in all sectors of the economy; 
"(2) effective measures must continue to be taken by the 
Federal Government and other users and suppliers of energy to 
control the rate of growth of demand for energy and the effi-
ciency of its use; 
"(3) the continuation of this effort will permit the United 
States to become increasingly independent of the world oil 
market, less vulnerable to interruption of foreign oil supphes, 
and more able to provide energy to meet future needs; and 
"(4) all sectors of the economy of the United States should 
continue to reduce significantly the demand for nonrenewable 
energy resources such as oil and natural gas by implementing 
and maintaining effective conservation measures for the effi-
cient use of these and other energy sources.". 
SEC. 102. CHANGES IN CERTAIN PLAN REQUIREMENTS. 
(a) INFORMATION REQUIREMENTS MADE APPUCABLE UNTIL JUNE 30, 
1989.—(1) Section 215(a) and section 217(a)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8216(a) and 42 U.S.C. 8218(aXl)) 
relating to utility programs and home heating supplier programs) 
are amended by striking out "January 1,1985" each place it appears 
and inserting in lieu thereof "June 30,1989 Ot)ut not more often than 
once during the period beginning on the date of the enactment of 
the Conservation Service Reform Act of 1986 and ending on June 30, 
1989)". 
(2)(A) Section 215(d) of such Act (42 U.S.C. 8216(d)) is amended by 
striking out "January 1, 1985" and inserting in lieu thereof "June 
30,1989". 
(B) The amendment made by subparagraph (A) shall apply only 
with respect to persons who become customers of a utility after the 
date of the enactment of this Act. 
PUBLIC LAW 99-412—AUG. 28, 1986 
100 STAT. 933 
(b) EUMINATION OF REQUIREMENTS THAT P U B U C UTILITIES AR-
RANGE FOR INSTALLATION OF SUGGESTED MEASURES AND FOR RELATED 
LOANS; EUMINATION OF LISTING REQUIREMENTS.— 
(1) Section 215(b) of such Act (42 U.S.C. 8216(b)) (relating to 
project manager requirements) is amended— 
(A) by striking out "Each utihty program shall include" 
through "procedures" and inserting in lieu thereof "Each 
E*i#;'. 
utility program shall include procedures"; 
(B) by striking out "to" through "inspect" and inserting 
in lieu thereof "to inspect"; and 
(C) by striking out inspection;" and all that follows and 
• 
inserting in lieu thereof "inspection.". 
(2) Section 217(aX2) of such Act (42 U.S.C. 8218(a)(2)) (relating 
to home heating supplier programs) is amended— 
(A) by striking out will—" through "inspect" and insert-
ing in lieu thereof "will inspect"; and 
f 
(B) by striking out "installing, suggested measures;" and 
all that follows and inserting in lieu thereof "installing, 
suggested measures.". 
vt 
(3) Section 213(a) of such Act (42 U.S.C. 8214(a)) (relating to 
general plan requirements) is amended— 
(A) by striking out paragraphs (2) and (3); and 
*
!
• 
(B) by redesignating paragraphs (4) through (9) as para-
graphs (2) through (7), respectively. 
(c) RULES.—Section 212(bX2) of such Act (42 U.S.C. 8213(bX2)) 
(relating to rules of the Secretary) is amended— 
(1) by striking out subparagraphs (E) and (F), and 
(2) by inserting "and" at the end of subparagraph (C). 
(d) DEFINITIONS.—(1) Section 210(9) of such Act (42 U.S.C. 8211(9)) 
(relating to definitions) is amended to read as follows: 
"(9) The term 'residential building' means any building used 
for residential occupancy which is not a new building to which 
final standards under section 304(a) of the Energy Conservation 
and Production Act apply and which has a system for heating or 42 use 6833 
cooling, or both.". 
(2) Section 212(cX4) of such Act (42 U.S.C. 8213(cX4)) (relating to 
TV 
A) is amended to read as follows: 
"(4) In the case of the Tennessee Valley Authority or any public 
utility with respect to which the Tennessee Valley Authority has 
ratemaking authority, the authority otherwise vested in a Governor, 
a State regulatory authority, a State agency, or an agency or 
instrumentality of a State under this part shall be vested in the 
Tennessee Valley Authority.". 
(e) EXEMPTION.—Section 215 of such Act (42 U.S.C. 8216) (relating Post, p. 934. 
to utility programs), as amended by subsection (h)(7) of this section, 
is amended by adding at the end the following new subsection: 
"(g) EXEMPTION OF CERTAIN MULTIFAMILY BUILDINGS.—The provi-
sions of this section shall not apply to any building which has five or 
more dwelling units and which does not contain individual meters 
for the dwelling units therein.". 
(f) EFFECT OF 1986 AMENDMENTS ON APPROVED PLANS FOR PUR-
POSES OF FEDERAL STANDBY AUTHORITY.—Section 219 of such Act (42 
U.S.C. 8220) (relating to Federal standby authority) is amended by 
adding at the end thereof the following new subsection: 
"(e) PLANS APPROVED BEFORE 1986 AMENDMENTS.—For purposes of 
this section, any residential energy conservation plan which was 
approved by the Secretary before the effective date of the Conserva-
Tennessee 
Valley 
Authority. 
State and local 
governments. 
100 STAT. 934 
PUBLIC LAW 99-412—AUG. 28, 1986 
tion Service Reform Act of 1986 shall be treated as an approved plan 
which is adequately implemented if such plan is adequately imple-
mented in accordance with the requirements of this Act as amended 
by the Conservation Service Reform Act of 1986.". 
(g) TEMPORARY EXEMPTIONS.—Section 218(a) of such Act (42 U.S.C. 
8219(a)) (relating to temporary exemptions) is amended by striking 
out the last sentence and inserting in lieu thereof the following: 
"Such temporary exemption may be granted or renewed until such 
date as determined by the Secretary.". 
(h) CONFORMING AMENDMENTS.— 
(1) Section 210(16) of such Act (42 U.S.C. 8211(16)) is amended 
by striking out "215(b)(1)(A)" and inserting in lieu thereof 
"215(b)". 
(2) Section 212(bX2)(C) of such Act (42 U.S.C. 8213(b)(2XC)) is 
aipended by striking out "213(a)(4)" and inserting in lieu thereof 
"213(a)(2)". 
(3) Section 213(b)(2)(A) of such Act (42 U.S.C. 8214(b)(2)(A)) is 
amended by striking out "215(b)(1)" and inserting in lieu thereof 
"215(b)". 
(4) Section 214(b) of such Act (42 U.S.C. 8215(b)) is amended by 
striking out "(8)" and inserting in lieu thereof "(6)". 
(5) Section 215(a)(3) of such Act (42 U.S.C. 8216(a)(3)) is 
amended by striking out "and the lists referred to in section 
213(a) (2) and (3)". 
Ante, p. 932. 
(6) Section 215(d) of such Act (42 U.S.C. 8216(d)) is amended by 
striking out ", the offer required under subsection (b)(lXA)" and 
all that follows and by inserting in lieu thereof "and the offer 
required under subsection (b).". 
Ante, p. 933. 
(7) Section 215 of such Act (42 U.S.C. 8216) is amended by 
striking out subsection (f) and by redesignating subsection (g) as 
subsection (f). 
(8) Section 216(cXl) of such Act (42 U.S.C. 8217(cXl)) is 
amended by striking out subparagraph (A) and by redesignating 
subparagraphs (B) and (C) as subparagraphs (A) and (B), respec-
tively. 
(9) Section 216(cX2)(C) of such Act (42 U.S.C. 8217(cX2XC)) is 
amended by striking out "on the lists referred to in section 
213(aX2)". 
42 use 8211 
(i) STATUTORY CONSTRUCTION.—Nothing in the amendments made 
note. 
by subsections (b), (c), (g), and (h) shall prevent implementation of a 
plan or program pursuant to the National Energy (Ilonservation 
42 use 8201 
Policy Act as in effect before the date of the enactment of this Act. 
note 
(j) EFFECTIVE DATE AND OTHER REQUIREMENTS.— 
not 
^^^ ^^ GENERAL.—^The amendments made by this section shall 
"° ^ 
take effect one hundred and eighty days after the date of the 
enactment of this Act. 
(2) RULES.—The Secretary of Energy shall, within the one 
hundred and eighty-day period referred to in paragraph (1), 
amend the rules promulgated under section 212 of the National 
42 use 8213. 
Energy Conservation Policy Act to carry out the amendments 
made by this Act. 
State and local 
(3) SPECIAL REQUIREMENT FOR PLANS APPROVED BEFORE 1986 
governments. 
AMENDMENTS.—The Secretary of Energy shall, with respect to 
any residential energy conservation plan approved by the Sec-
retary of Energy before the effective date (as described in 
paragraph (1)) of the amendments made by this section, require 
the appropriate official in charge of such plan to notify the 
PUBLIC LAW 99-412—AUG. 28, 1986 
100 STAT. 935 
Secretary of Energy, within one hundred and twenty days of the 
date of enactment of this Act, that the amendments made by 
subsections (a), (d), and (e) of this section shall be implemented 
for the duration of such plan. The Secretary may not impose 
any other notice or approval requirement on a Governor or 
agency or instrumentality of a State with respect to such 
amendments. 
SEC. 103. ALTERNATIVE PLANS FOR RESIDENTIAL BUILDINGS. 
(a) IN GENERAL.—The National Energy Conservation Policy Act 
(42 U.S.C. 8201 et seq.) is amended by inserting the following new 
sections after section 225: 
"SEC. 226. ALTERNATIVE STATE PLANS. 
"(a) IN GENERAL.—A Governor of any State, any State regulatory 
authority, or any agency or instrumentality of a State may elect, to 
the extent authorized under State law, to formulate and certify an 
alternative State plan for residential buildings under this section. 
"(b) CONSEQUENCES OF CERTIFICATION.—(1) Beginning with the 
date on which the certification of a plan is made with respect to a 
State under subsection (d) and ending with the date on which a plan 
is no longer in effect under this section with respect to such State— 
"(A) subsections (a) through (c)(3) of section 212, sections 213 
through 215 and sections 217 and 218 shall not apply with 
respect to— 
"(i) regulated utilities in such State, and 
J, 
"(ii) nonregulated utilities which are included in the plan; 
"(B) section 219 shall apply to utilities described in subpara-
graph (A) only to the extent provided for in subsection (f); and 
^ 
"(C) sections 212 through 219 shall apply to nonregulated 
utilities which are not included in the plan or which have not 
received an exemption under section 227. 
"(2) Except as provided in subsection (f), any State for which a 
plan is certified under subsection (d) shall continue to have such 
plan in effect until June 30,1989. 
"(c) CONTENT OF PLAN.—A plan certified pursuant to this section 
shall— 
"(1) be designed to result in annual residential energy con-
* 
servation savings of 2 percent or more; 
* 
"(2) contain the goals established for the plan and an analysis 
of the data and rationale used by the entity in charge of 
^ 
formulating the plan to determine that the plan is likely to 
"
^ 
achieve such goals; 
h 
"(3) contain adequate procedures to assure that, if a public 
• 
utility supplies or installs residential energy conservation meas-
"^ ures, such actions shall be consistent with section 216 and prices 
and rates of interest charged shall be fair and reasonable; and 
"(4) contain adequate procedures for preventing unfair, decep-
tive, or anticompetitive acts or practices affecting commerce 
which relate to the implementation of such plan. 
"(d) CERTIFICATION.—(1) The entity which elects to certify a plan 
under this section shall certify, pursuant to a form to be prescribed 
by the Secretary (ex;cept as provided by paragraph (2)), to the 
Secretary that— 
"(A) the plan meets the requirements of subsection (c); 
3 
"(B) the plan is likely to achieve the goals established for the 
plan if it is adequately implemented; and 
42 u s e 8227. 
Utilities. 
42 u s e 8213-
8216, 8218, 8219. 
Ante, p. 933. 
Post, p. 937. 
Termination 
date. 
Utilities. 
42 u s e 8217. 
Fraud. 
Business and 
industry. 
100 STAT. 936 
PUBLIC LAW 99-412—AUG. 28, 1986 
"(C) the plan will be adequately implemented. 
"(2) If a form is not made available by the Secretary within 90 
days after the date of the enactment of this section, the entity in 
charge of certifying the plan may make such certification on a form 
prescribed by such entity. 
"(3) Any certification under this subsection shall include a de-
tailed explanation of the manner in which the contents of the plan 
will be implemented. 
"(e) ANNUAL REPORT.—(1) The entity which certifies a plan under 
subsection (d) shall submit an annual report to the Secretary, within 
60 days after the end of the 1-year period to which the report relates, 
describing the implementation of the plan and the results thereof. 
^r^^ V J 
"(2) Such report shall include— 
"(A) a statement of the number of residential buildings receiv-
• ing benefits under the plan, 
"(B) an estimate of the actual energy savings resulting from 
the plan and a description of the sources of such savings, 
"(C) a statement of the percentage of individuals with low and 
'•' • '•^ 
moderate incomes who receive benefits under the plan, 
"(D) a detailed description of the benefits provided under the 
plan and of how the plan is implemented, and 
, 
. 
"(E) the names of the entities carrying out the plan. 
"(3) The first such report shall be made by an entity within the 14-
month period that begins with the date that such entity certified a 
plan under this section. 
Utilities. 
"(f) ADMINISTRATION AND JUDICIAL ENFORCEMENT PROCEEDINGS.— 
^^ 
(1)(A) At any time more than 1 year after an alternative State plan 
h£is been certified under subsection (d) with respect to a State, any 
customer of a utility subject to such alternative State plan may 
petition the Secretary of Energy to conduct a public hearing to 
determine if the alternative State plan has been adequately imple-
mented. A copy of such petition shall be transmitted to the entity in 
» charge of the plan on the same date it is transmitted to the 
Secretary. 
"(B) Within 60 days after the date on which a petition is received 
under subparagraph (A), the Secretary shall— 
"(i) conduct the hearing requested in such petition; or 
"(ii) notify in writing the customer submitting such petition of 
;r the Secretary's reasons for determining that such a hearing is 
not justified in the public interest. 
"(C) The Secretary shall provide advance notice to the public of 
any hearing carried out as a result of a petition submitted under 
subparagraph (A). Any determination by the Secretary concerning 
the adequacy of the implementation of any alternative State plan 
shall be on the record and shall be published in the Federal Register 
within 60 days after such determination is made. 
"(D) Any person alleging that he is likely to be injured as a result 
of a determination by the Secretary under this paragraph may, 
within 60 days after publication or notification of such determina-
tion, institute an action appealing the determination in the United 
States Court of Appeals for the appropriate judicial circuit. The 
Court shall review the determination of the Secretary in accordance 
5 use note 
with the Administrative Procedures Act, and shall have jurisdiction 
prec. 551. 
to affirm, modify, set aside, in whole or in part, or to remand such 
determination to the Secretary for such other action as the Court 
may direct. 
Federal 
Register, 
publication. 
PUBLIC LAW 99-412—AUG. 28, 1986 
100 STAT. 937 
Ante, p. 933. 
42 u s e 8213. 
Utilities. 
Infra. 
Utilities. 
42 u s e 8212. 
Utilities. 
"(2) Except as provided in paragraph (3), if any determination by 
the Secretary that the alternative State plan has not been ade-
quately implemented becomes final and may not be appealed, the 
Secretary shall, within 30 days of the date on which the determina-
tion may no longer be appealed, initiate standby authority under 
section 219 with respect to such State. 
"(3) If a State which had an approved plan in effect under section 
212 on the day before the date on which certification was made 
under this section informs the Secretary in writing, within 30 days 
after receiving a copy of the petition described in paragraph (1), that 
it will no longer implement a plan certified under this section and 
that it will implement the approved plan which was in effect in the 
State on the day before certification of the alternative plan under 
this section, then— 
"(A) the determinations and actions described in paragraph 
(1) may not be carried out; and 
"(B) sections 212 through 219 shall apply in such State except 
to the extent that waivers are provided for utilities under 
section 227 in such State. 
"(g) COVERAGE.—A plan certified under this section shall not 
apply to utilities other than utilities covered under section 211(a). 
"(h) INCLUSION OF NONREGULATED UTIUTIES.—A nonregulated 
utility may not be included in a plan under this section unless such 
inclusion is authorized under State law or the nonregulated utility 
agrees to such inclusion. 
"(i) INCENTIVES.—The entity in charge of a plan under this section, 
or a State regulatory authority, may, to the extent permitted under 
State law, provide incentives for utilities to meet the goals contained 
in the State's alternative plan, including providing such utilities 
that meet or exceed such goals with a rate of return on expenditures 
made for the purpose of accomplishing such goals. 
"(j) UTILITIES WITH RETAIL SERVICE TERRITORIES IN MORE THAN 1 
STATE.—For purposes of this section, any utility with a retail service 
territory in more than one State shall be considered to be a separate 
utility with respect to each State in which its retail service territory 
is located. 
*
^ 
"(k) AMENDMENT OF A PLAN.—(1) Except as provided by paragraph 
(2), a plan certified under this section may be amended by any 
amendment— 
"(A) consistent with the requirements of subsection (c); and 
"(B) certified to the Secretary of Energy in a manner consist-
ent with the requirements applicable to the certification of a 
^ 
plan under subsection (d). 
- "(2) A plan certified under this section may not be amended— 
"(A) during the first year after it is certified; or 
"(B) more than once a year thereafter. 
"SEC. 227. WAIVER FOR REGULATED AND NONREGULATED UTILITIES. 42 USe 8228. 
"(a) WAIVER.—Any utility subject to this part may, upon request, 
receive a waiver from the Secretary from any provision of this part 
or from any provision of a State residential energy conservation 
plan under this part if the utility shows in appropriate State 
proceedings and the appropriate State officials find that— 
"(1) the existing and planned residential energy conservation 
programs that will be implemented by the utility if a waiver 
from such provision is approved will result in savings in petro-
leum, natural gas or electric energy consumed in residential 
State and local 
governments. 
Petroleum and 
petroleum 
products. 
Natural gas. 
100 STAT. 938 
PUBLIC LAW 99-412—AUG. 28, 1986 
Fraud. 
Business and 
industry. 
State and local 
governments. 
UiiU 
42 u s e 8213. 
State and local 
governments. 
Reports. 
State and local 
governments. 
buildings served by the utility that are equal to or greater than 
the savings that would be achieved in connection with a prop-
erly implemented State residential conservation service plan 
under this part; and 
"(2) adequate procedures are in effect that prevent unfair, 
deceptive or anticompetitive acts or practices affecting com-
merce that relate to the implementation of such residential 
energy conservation programs, including provisions to assure 
that any person who alleges any injury resulting from unfair, 
deceptive or anticompetitive acts or practices in connection with 
such programs shall be entitled to redress under such proce-
dures as may be established by the Governor in the State in 
which the utility provides utility service. 
"Ob) DEFINITION.—For purposes of this section the term 'residen-
tial energy conservation program' means any program carried out 
by a utility that has as its purpose— 
"(1) increasing the efficiency with which petroleum, natural 
gas or electric energy is consumed in residential buildings 
served by such utility; or 
"(2) utilizing solar or other forms of renewable energy in 
residential buildings served by such utility. 
"(c) APPROVAL.—The Secretary shall approve a request of a utility 
for a waiver under subsection (a) if the Secretary determines that— 
"(1) opportunity for a hearing on the request for a waiver has 
been provided in the State in which the utility provides utility 
service; and 
"(2) in the case of a regulated utility, the Governor of the 
State in which the utility provides utility service and the State 
regulatory authority that has ratemaking authority with 
respect to such utility both— 
, , 
"(A) find that the showings under subsections (a) (1) and (2) 
are sufficient; and 
"(B) support the request by the utility for the waiver; or 
"(3) in the case of a nonregulated utility subject to a State 
residential energy conservation plan under section 212(c)(2), the 
Governor of the State in which the utility provides utility 
service— 
"(A) finds that the showings under subsections (a) (1) and 
h^, 
(2) are sufficient; and 
"(B) supports the request by the utility for the waiver. 
"(d) ANNUAL REVIEW AND REVOCATION OF WAIVER.—(1) The provi-
sions of this subsection do not apply to a nonregulated utility unless 
such utility is subject to a State residential energy conservation plan 
under section 212(cX2). 
"(2) Any utility that receives a waiver under this section shall 
provide the Governor of the State in which that utility provides 
utility service with an annual report describing the performance of 
its residential energy conservation programs in relation to the 
showings of such utility under subsections (a) (1) and (2). 
"(3) The Secretary shall revoke any waiver received by a utility 
under this section upon a request under this subsection by the 
Governor of the State in which the utility provides utility service. 
Such a request shall be made upon a finding— 
"(A) in the case of a regulated utility, by such Governor with 
the concurrence of the State regulatory authority that has 
ratemaking authority with respect to such utility; or 
PUBLIC LAW 99-412—AUG. 28, 1986 
100 STAT. 939 
"(B) in the case of a nonregulated utility subject to a State 
residential energy conservation plan under section 212(c)(2), by 
42 use 8213. 
such Governor, 
that the savings described in subsection (a)(1) on an annual basis are 
less than the savings in the year prior to the approval of the waiver 
.i 
or that the procedures referred to in subsection (aX2) are no longer 
• • "^ 
adequate. 
"(4) A request under paragraph (3) with respect to any utility may 
be submitted to the Secretary by a Governor only after review and 
opportunity for a hearing on the performance of the residential 
energy conservation programs of such utility. In order to facilitate 
such review and hearing, the utility shall provide to the Governor 
such information £is the Governor requests about such residential 
energy conservation programs.". 
(b) The table of contents for the National Energy Conservation 
Policy Act is amended by adding at the end of the table of contents 
for part 1 of title II the following: 
"Sec. 226. Alternative State plans.". 
"Sec. 227. Waiver for regulated and nonregulated utilities.". 
SEC. 104. REPORTS AND DISSEMINATION OF INFORMATION. 
(a) IN GENERAL.—Section 225 of the National Energy Conservation 
Policy Act (42 U.S.C. 8226) (relating to a Federal Trade Commission 
study and report submitted before January 1, 1982) is amended to 
read as follows: 
"SEC. 225. REPORTS AND DISSEMINATION OF INFORMATION. 
"(a) GENERAL REPORT.—(1) No later than December 31, 1987, and 
December 31, 1989, the Secretary shall submit a report to the 
Chairman of the Committee on Energy and Commerce of the House 
of Representatives and the Chairman of the Committee on Energy 
and Natural Resources of the Senate relating to the operation of this 
part. 
"(2) Each such report shall include— 
"(A) a comparison of estimated actual and predicted energy 
savings resulting from plans under this part, 
"(B) identification of the most effective plans (or portions 
thereof), 
"(C) an analysis, b£ised on completed audits and other rel-
evant data, of the energy saving potential of the installation of 
additional residential conservation measures, and 
"(D) an analysis of economic, technical, behavioral, and other 
factors considered relevant to energy consumption by the 
Secretary. 
Nothing in this paragraph shall require a survey of each residential 
building in which a residential energy conservation measure has 
been installed under this part. 
"(b) SUMMARY OF ALTERNATIVE PLAN AND UTIUTY WAIVER RE-
PORTS.—No later than December 31, 1987, and December 31, 1989, 
the Secretary shall submit a report to the Chairman of the Commit-
tee on Energy and Commerce of the House of Representatives and 
the Chairman of the Committee on Energy and Natural Resources of 
the Senate summarizing the annual reports the Secretary received 
under section 226(e). 
"(c) DISSEMINATION OF INFORMATION.—(IXA) The Secretary shall 
at least annually, in fiscal years beginning after September 30,1986, 
disseminate to the States and public utilities information providing 
:i£8 'Jki^J itb' 
.riSiJiiijU 
Ante, p. 935. 
State and local 
governments. 
Utilities. 
100 STAT. 940 
PUBLIC LAW 99-412—AUG. 28, 1986 
Public 
information. 
Utilities. 
42 u s e 8211. 
Utilities. 
Fraud. 
Business and 
industry. 
technical assistance and relating to the most cost-effective energy 
conservation procedures and devices (including residential energy 
conservation measures) and the most successful plans (or portions 
thereof) under this part. 
"(B) The Secretary shall make the information described in 
subparagraph (A) available to the public. 
"(2) The Secretary shall conduct seminars in various regions of 
the United States to disseminate information described in para-
graph (1).". 
(b) CLERICAL AMENDMENT.—The table of contents of such Act is 
amended by striking out the item relating to section 225 and 
inserting in lieu thereof the following: 
"Sec. 225. Reports and dissemination of information.". 
(c) REPORT BY COMPTROLLER GENERAL.—(1) The Comptroller Gen-
eral shall prepare and transmit to Congress before December 31, 
1986, a report evaluating the utility and home heating supplier 
plans implemented under part 1 of title II of the National Energy 
Conservation Policy Act. 
(2) The Secretary of Energy shall conduct a survey in consultation 
with the Comptroller General to collect the information the 
Comptroller General determines is necessary for the preparation of 
such report. 
(3) The report referred to in paragraph (1) shall examine and 
assess— 
(A) the potential for achievable energy savings through 
installation of residential energy conservation measures in resi-
dential dwellings in the United States and the importance of 
the programs carried out by the Residential Conservation Serv-
ice of the Department of Energy in achieving these savings; 
(B) the costs of Residential Conservation Service programs in 
a representative sample of States, taking into consideration the 
costs to the taxpayer and ratepayers of affected utilities; 
(C) the benefits of Residential Conservation Service programs 
in a representative sample of States, taking into consideration 
the value of energy conservation and the value of deferral of 
investment in new capacity to provide energy; 
(D) efforts of utilities to encourage the implementation of 
residential energy conservation measures by their customers 
and the relationship between these efforts and Residential Con-
servation Service programs; 
(E) measured energy savings achieved in residential dwellings 
in which residential energy conservation measures have been 
installed under such programs; 
(F) the extent to which utilities have adopted programs volun-
tarily or under State law that offer more potential for encourag-
ing energy efficiency than do the programs carried out by the 
Residential Conservation Service; 
(G) the extent to which modifications in the regulations im-
plementing the programs carried out by the Residential Con-
servation Service could improve the cost effectiveness of the 
programs; 
(H) legislative changes that are necessary to improve the cost 
effectiveness of residential energy conservation programs; 
(I) the extent of unfair, deceptive, or anticompetitive acts or 
practices affecting commerce that relate to the implementation 
of such residential energy conservation programs, and the ade-
PUBLIC LAW 99-412—AUG. 28, 1986 
100 STAT. 941 
quacy of procedures which are in effect to prevent such unfair, 
deceptive, or anticompetitive acts or practices; and 
(J) such other matters as the Comptroller General considers 
appropriate in order to assist the Congress in deciding the 
future of the programs carried out by the Residential Conserva-
tion Service. 
SEC. 105. TERMINATION. 
(a) IN GENERAL.—Part I of title II of the National Energy Con-
servation Policy Act (42 U.S.C. 8211 and following), as amended by 
section 103, is amended by adding at the end the following new Ante, p. 935. 
section: 
"SEC. 228. TERMINATION. 
42 USC 8229. 
"Effective June 30, 1989, all authority, including the authority to 
enforce any prohibitions, under this part shall terminate, except 
that such expiration shall not affect any action or proceeding based 
upon an act committed prior to midnight June 30, 1989, and not 
finally determined by such date.". 
(b) CLERICAL AMENDMENT.—The table of contents of such Act, as 
amended by section 103(c) of this Act, is amended by inserting after 
the item relating to section 227 the following new item: 
"Sec. 228. Termination.". 
SEC. 106. SUPPLY AND INSTALLATION BY PUBLIC UTILITIES. 
(a) GENERAL EXEMPTION.—Section 216(d) of the National Energy 
Conservation Policy Act (42 U.S.C. 8217(d)) (relating to general 
exemptions from prohibitions on supply and installation) is 
amended— 
(1) by striking out "The" and inserting in lieu thereof: 
"(1) Except £is provided in paragraph (2), the"; 
(2) by redesignating paragraphs (1), (2), and (3) as subpara-
graphs (A), (B), and (C), respectively; and 
(3) by adding at the end thereof the following new paragraph: 
"(2) Effective July 1,1987, subparagraphs (A) and (B) of paragraph Effective date. 
(1) shall not apply to the supply or installation of residential energy 
conservation measures other than measures which the Secretary 
determines were being installed or supplied by a public utility 
during the 12-month period ending June 1,1985.". 
(b) PROHIBITION; ENFORCEMENT.—(1) Section 216 of such Act (42 
U.S.C. 8217) (relating to prohibitions on supply and installations) is 
amended by striking out subsection (gX2) and subsection (h) and 
inserting in lieu thereof the following: 
"(2) No public utility that has an exemption or waiver under this Fraud. 
section may carry out under this Part and pursuant to an exemption 
or waiver any activity if the Federal Trade Commission, pursuant to 
subsection (h), or a State regulatory authority, pursuant to State 
law, has determined that such activity involves— 
"(A) charging unfair or unreasonable prices or rates of 
interest with respect to the supply and installation of residen-
tial energy conservation measures; or 
"(B) engaging in unfair methods of competition or unfair or 
deceptive acts or practices with respect to such supply and 
installation. 
"(h) ENFORCEMENT.—(1) For the purpose of determining whether a 
public utility which has an exemption or waiver under this section is 
State and local 
governments. 
Post, p. 943. 
100 STAT. 942 
PUBLIC LAW 99-412—AUG. 28, 1986 
engaging in any activity described in subsection (g)(2), a person 
alleging injury from any such activity may request— 
"(A) to the extent authorized under State law, a State regu-
latory authority; or 
"(B) in any case described in paragraph (2), the Federal Trade 
Commission, 
to review an activity being carried out by such a public utility in 
whole or in part in such State. Such request shall contain a descrip-
tion of the actions of the utility alleged to constitute an activity 
described in subsection (g)(2); an allegation that an injury h£is been 
, >:., L 
incurred by the person requesting the review; and an allegation that 
such injury resulted from an activity described in subsection (g)(2). 
"(2) The Federal Trade Commission may review an activity of a 
• 
public utility as a result of a request made under paragraph (1) only 
if— 
"(A) a State regulatory authority has— 
"(i) informed the resident making the request that it will 
uni 
not review such activity for the purpose described in para-
graph (1); or 
' 
"(ii) within the 90-day period beginning on the date on 
which the request to review such activity was made to the 
State regulatory authority by the resident, failed to inform 
the resident that it will review such activity for such 
purpose; or 
"(B) a State regulatory authority has informed the resident 
that it will review such activity for such purpose but has failed 
'} 
to initiate a proceeding for such purpose during the 6-month 
period beginning on the date on which the request to review 
' 
such activity was made to the State regulatory authority by the 
resident. 
"(3) If a request for review is made to the Commission in any case 
described in paragraph (2), and the Commission determines, on the 
basis of the information provided, that there is reason to believe 
that the public utility is carrying out an activity described in 
, 
subsection (g)(2), the Commission shall issue and serve upon such 
' 
utility a complaint and a notice of hearing and conduct a proceeding 
15 use 45. 
in accordance with section 5(b) of the Federal Trade Commission Act 
to determine if such an activity is being carried out by the utility. 
"(4) If the Commission makes a determination pursuant to a 
proceeding described in paragraph (3) that a public utility is carry-
Ante, p. 941. 
ing out an activity described in subsection (g)(2) of this section, the 
Commission shall, utilizing the authority of the Commission to 
enforce prohibitions made by section 5 of the Federal Trade Commis-
j^ 
sion Act, take appropriate action to enforce the prohibition in 
subsection (gX2) of this section. 
"(5) Any violation of a prohibition contained in this section other 
than a violation of subsection (g)(2) shall be treated, for purposes of 
42 use 8220. 
section 219(d), as a violation of a plan promulgated under section 
219(a).". 
(c) CONFORMING AMENDMENTS.—(1) Section 216(c)(2)(A) of such Act 
(42 U.S.C. 8217(c)(2)(A)) (relating to an exemption from the prohibi-
tion on supply and installation by a public utility) is amended by 
inserting the following before the semicolon at the end: "or other 
activities described in subsection (g)(2)". 
(2) Section 216(f) of such Act (42 U.S.C. 8217(f)) (relating to the 
applicability of section 215) is amended by striking out "(dX2)", 
PUBLIC LAW 99-412—AUG. 28, 1986 
100 STAT. 943 
"(d)(1)", and "(d)(3)" and inserting in lieu thereof "(d)(1)(B)", 
"(d)(1)(A)", and "(d)(1)(C)", respectively. 
(3) The heading of subsection (g) of section 216 is amended to read 
as follows: "Authority to Monitor and Terminate Certain Activities 
by Utilities.—". 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
become effective 180 days after the date of the enactment of this 
Act. 
Ante, p. 941. 
42 u s e 8217 
note. 
4 TITLE II—COMMERCIAL BUILDINGS AND MULTIFAMILY 
DWELLINGS 
SEC. 201. REPEAL OF TITLE VII OF THE NATIONAL ENERGY CONSERVA-
TION POLICY ACT. 
(a) IN GENERAL.—Title VII of the National Energy Conservation 
Policy Act (42 U.S.C. 8281 and following) (relating to energy con-
servation for commercial buildings and multifamily dwellings) is 
hereby repealed. 
(b) CLERICAL AMENDMENT.—The table of contents for such Act is 
amended by striking out the items relating to such title VII. 
(c) AUTHORITY TO CONTINUE CERTAIN STATE ENERGY CONSERVA-
TION PLANS.—Notwithstanding subsection (a), any State energy con-
servation plan for commercial buildings and multifamily dwellings 
approved under section 721 of the National Energy Conservation 
Policy Act before August 1, 1984, may, with respect to regulated 
utilities, continue in effect until January 1, 1990. 
SEC. 202. DEMONSTRATION PROJECTS FOR ENERGY EFFICIENCY IN 
COMMERCIAL BUILDINGS. 
The Secretary of Energy shall, using funds appropriated for 
energy conservation activities of the Department of Energy, carry 
out demonstration projects by sharing the cost of the construction 
and development by nongovernmental entities of facilities which 
demonstrate innovative technologies for utility applications that 
increase energy efficiency in commercial buildings. 
Approved August 28, 1986. 
Termination 
date. 
42 u s e 8282 
note. 
42 u s e 8282. 
Science and 
technology. 
42 u s e 8281 
note. 
LEGISLATIVE HISTORY—S. 410 (H.R. 969): 
HOUSE REPORTS: No. 99-484 accompanying H.R. 969 (Comm. on Energy and 
Commerce) and No. 99-787 (Comm. of Conference). 
SENATE REPORTS: No. 99-94 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD: 
Vol. 131 (1985): July 29, considered and passed Senate. 
Vol. 132 (1986): Mar. 11, H.R. 969 considered and passed House; S. 410, 
amended, passed in lieu. 
Aug. 15, House and Senate agreed to conference report. 
Senate receded from disagreement to House amendment.