Conservation Service Reform Act of 1986

(Conference report filed in House, H. Rept. 99-787)

Conservation Service Reform Act of 1986 - Title I: Residential Conservation Service - Amends the National Energy Conservation Policy Act to extend from 1985 to June 30, 1989, the date through which utility programs and home heating supplier programs must provide certain energy conservation information to new owners or occupiers of a residential building (residential customers).

Eliminates requirements that each utility and participating home heating supplier: (1) offer to arrange to have suggested conservation measures installed and for a loan to finance them; and (2) provide residential customers with a list of suppliers, contractors, and lending institutions.

Amends the definition of "residential building" to include previously exempted buildings which had central heating or cooling systems. Exempts five-or-more-unit multifamily buildings without individual meters from the energy information requirements of the Act.

Treats residential energy conservation plans which were approved before the effective date of this Act as adequately implemented approved plans if they meet the requirements of this Act.

Extends the authority of the Secretary of Energy to grant or renew temporary exemptions to certain information requirements and prohibitions. (Current law provides for a maximum three-year exemption.)

Authorizes the States to formulate and certify alternative State residential energy conservation plans. Sets forth the criteria for the formulation, content, and certification of such plans (including administrative and judicial enforcement). Requires States which have such an alternative plan to submit an annual report to the Secretary describing the plan's implementation and results. Prohibits the inclusion of a nonregulated utility in such alternative plans unless authorized under State law or agreed to by the nonregulated utility.

Authorizes States to provide incentives for utilities to meet the goals contained in the State alternative plan.

Provides guidelines under which a utility may receive a waiver from any provision of a Federal or State residential energy conservation plan if the utility demonstrates that: (1) its conservation plan results in savings that are equal to or greater than the governmental plan; and (2) adequate procedures are in effect that prevent deceptive or anticompetitive practices. Provides an approval mechanism whereby the Secretary of Energy shall approve a utility request for such waiver. Provides for revocation of such waivers by the Secretary if the State Governor determines that the affected utility is not in compliance with the criteria for a waiver.

Requires the Secretary to submit reports to certain congressional committees regarding the residential energy conservation plans, alternative State plans, and alternative utility plans.

Requires the Secretary to disseminate information annually to States and public utilities regarding: (1) technical assistance; (2) cost-effective residential energy conservation measures; and (3) the most successful residential energy conservation plans. Requires the Secretary to disseminate such information to the public through regional seminars.

Requires the Comptroller General to submit to the Congress before December 31, 1986, an evaluation of residential energy conservation measures and programs implemented under the National Energy Conservation Policy Act. Directs the Secretary of Energy to conduct a survey, in consultation with the Comptroller General, to collect the information determined necessary for such report. Details the requirements of such report.

Terminates on June 30, 1989, all Federal authority regarding residential conservation service plans.

Limits the current general (grandfather) exemption of certain utilities from the prohibition against the direct supply and installation of conservation measures by public utilities. Continues such exemption, as of July 1, 1987, only for those grandfathered utilities which actually supplied and installed such measures during the 12 months before June 1, 1985.

Prohibits specified unfair pricing and other competitive activities by such exempted utilities. Authorizes any interested State resident to request a State regulatory authority or, in certain circumstances, the Federal Trade Commission (FTC) to review alleged unfair activities by such utilities. Directs the FTC to take specified enforcement actions if it finds a utility in violation of a prohibition.

Title II: Commercial Buildings and Multifamily Dwellings - Repeals title VII of the National Energy Conservation Policy Act relating to energy conservation for commercial buildings and multifamily dwellings. Authorizes certain previously approved State energy conservation plans for commercial buildings and multifamily dwellings to continue in effect with respect to regulated utilities until January 1, 1990.

Directs the Secretary to implement energy conservation demonstration projects in commercial buildings.