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(1) The term "building heating supplier" means any person engaged in the business of selling No. 2, No. 4, or No. 6 heating oil, kerosene, or propane to eligible customers. (2) The term "commercial building" means a building

(A) which was completed on or before the date of enactment of this title,

(B) which is used primarily for carrying out a business (including a nonprofit business) or for carrying out the activities or administration of a State or local government,

(C) which is not used primarily for the manufacture or production of products, raw materials, or agricultural commodities, and

(D) for which the average monthly use of energy for the calendar year 1980 is less than 4,000 kilowatt hours of electricity or 1,000 therms of natural gas or the Btu equiv

alent thereof of any other fuel; except that such term does not include a Federal building as defined in section 521(2).

( (3) The term "multifamily dwelling" means a building which is used for residential occupancy, was completed on or before the date of enactment of this title, and contains five or more dwelling units and a central heating or central cooling system.

(4) the term "energy efficient improvements” means any change in the operation or maintenance of a commercial building or multifamily dwelling, which change is designed primarily to reduce energy consumption in such building or dwelling and which has been identified by the Secretary in the rules promulgated under section 712(a) or approved by the Secre tary for consideration in the energy audits offered to eligible customers under section 731, 732, or 741.

(5) The term “commercial energy conservation measure" means an installation or modification of an installation which is primarily designed to reduce the consumption of petroleum, natural gas, or electrical power in a multifamily dwelling or commercial building, including

(A) caulking and weatherstripping;

(B) the insulation of the building or dwelling structure and systems within the building or dwelling;

(C) storm windows and doors, multiglazed windows and doors, heat absorbing or heat reflecting window and door systems, glazing, reductions in glass area, and other window and door system modifications;

(D) automatic energy control systems;

(E) equipment associated with automatic energy control systems, which is required to operate variable steam, hydraulic, or ventilating systems;

(F) furnace, or utility plant and distribution system, modifications, including

(i) replacement burners, furnaces, boilers, or any combination thereof, which (as determined by the Secretary) substantially increases the energy efficiency of the heating system,

(ii) devices for modifying flue openings which will increase the energy efficiency of the heating system, and (iii) electrical or mechanical furnace ignition systems which replace standing gas pilot lights; (G) replacement or modification of a lighting system which increases the energy efficiency of the lighting system without increasing the overall illumination of the building or dwelling (unless such increase in illumination is necessary to conform to any applicable State or loca building code or the increase is considered appropriate by the Secretary);

(H) energy recovery systems;

(I) cogeneration systems which produce electricity, as well as steam or other forms of thermal or mechanical energy, and which meet such fuel efficiency requirements as the Secretary may, by rule, prescribe;

(J) a solar energy system, as defined in section 504(8) of the Solar Energy and Energy Conservation Bank Act; and

(K) such other measures as the Secretary identifies, by rule, for purposes of this title. (6) The term "éligible customer" means

(A) with respect to a public utility, the owner or tenant of a commercial building or the owner of a multifamily dwelling to whom that public utility sells natural gas or electricity for use in such building or dwelling, or

(B) with respect to a building heating supplier, the owner or tenant of a commercial building or the owner of a multifamily dwelling to whom that building heating supplier sells No. 2, No. 4, or No. 6 heating oil, kerosene, or

propane for use in such building or dwelling. (7) The term "energy audit” means an onsite inspection of a commercial building or a multifamily dwelling which determines and informs the eligible customer of at least

(A) the type, quantity, and rate of energy consumption of such building or dwelling;

(B) energy efficient improvements appropriate to such building or dwelling; and

(C) the need, if any, for the purchase and installation of commercial energy conservation measures in such building

or dwelling. The Secretary, after consulting with appropriate State officials, may establish criteria for such audits on a regional basis to account for regional variations in energy use.

(8) The term "utility program” means a program meeting the requirements of section 731.

(9) The term “building heating supplier program” means a

program meeting the requirements of section 732. SEC. 711. COVERAGE.

This title shall apply to any public utility for which coverage is provided under section 211. SEC. 712. RULES OF SECRETARY FOR SUBMISSION AND APPROVAL OF

PLANS. (a) PROMULGATION OF RULES BY THE SECRETARY.—The Secretary shall, not later than 120 days after enactment of this title and after consultation with the Secretary of Housing and Urban Development and the heads of such other agencies as the Secretary deems appropriate, publish proposed rules on the content and implementation of State energy conservation plans for commercial buildings and multifamily dwellings which meet the requirements of this title. After publication of such proposed rules, the Secretary shall afford interested persons (including Federal and State agencies) an opportunity to present oral and written comments on such pro posed rules. Rules prescribing the content and implementation of State energy conservation plans for commercial buildings and multifamily dwellings shall be published not earlier than forty-five days after publication of the proposed rule.

(b) ENERGY EFFICIENT IMPROVEMENTS OF DIFFERENT TYPES AND CATEGORIES.— The rules promulgated under subsection (a) may identify energy efficient improvements in different types of commercial buildings and multifamily dwellings by climatic region and by categories determined by the Secretary on the basis of type of construction and any other factors which the Secretary deems ap propriate. Such improvements shall be considered in the energy audits offered to eligible customers under sections 731, 732, and 741.

(c) COORDINATION.—The rules promulgated under subsection (a) shall, to the extent practicable, coordinate the requirements of this title with the provisions of section 367(bX1) of the Energy Policy and Conservation Act and with the utility program established under title II, part 1 of this Act. Such rules shall not have the effect of delaying the submission, approval, or implementation of residential energy conservation plans under title II, part 1 of this Act.

(d) OTHER RULES.—The Secretary may prescribe any other rules necessary to carry out the provisions of this title.

PART 2-ENERGY CONSERVATION PLANS

SEC. 721. PROCEDURES FOR SUBMISSION AND APPROVAL OF STATE

ENERGY CONSERVATION PLANS FOR COMMERCIAL BUILD

INGS AND MULTIFAMILY DWELLINGS. (a) SUBMISSION AND APPROVAL OF STATE PLANS.—Not later than 180 days after the promulgation of rules under section 712(a), the Governor of each State (or any State agency specifically authorized to do so under State law) may submit to the Secretary a proposed energy conservation plan for commercial buildings and multifamily dwellings which meets the requirements of the rules promulgated under section 712. Within such 180-day period, each nonregulated utility shall submit a proposed plan, which meets the requirements of the rules promulgated under section 712, to the Secretary unless a plan submitted under the preceding sentence for the State in which the nonregulated utility provides utility service applies to nonregulated utilities as provided in subsection (b). The Secretary may, upon request of the Governor or State agency or nonregulated utility, extend for good cause shown, the time period for submission of a plan. Each plan submitted in accordance with this subsection shall be reviewed and approved or disapproved in accordance with the procedures of subparagraphs (B) and (C) of section 212(c)(1).

(b) NONREGULATED UTILITIES.—Any plan submitted by a Governor or State agency under subsection (a) may, in the discretion of the Governor if he notifies the Secretary within 30 days after promulgation of rules under section 712(a), apply to nonregulated utilities providing utility service in the State in the same manner as to regulated utilities. In any such case, reference elsewhere in this title to regulated utilities (including references to utilities with respect to which a State regulatory authority exercises ratemaking authority) shall, with respect to such State, be treated as references also to nonregulated utilities and references elsewhere in this title to nonregulated utilities shall not apply. For purposes of this subsection, the term “nonregulated utility” shall not include any public utility which is a Federal agency.

(c) PLAN FOR BUILDING HEATING SUPPLIERS.- A plan applicable to building heating suppliers may be submitted by the Governor in his descretion.

(d) TENNESSEE VALLEY AUTHORITY.-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 the Governor or State agency under this section shall be vested in the Tennessee Valley Authority. SEC. 722. REQUIREMENTS FOR STATE PLANS FOR REGULATED UTILITIES.

No proposed energy conservation plan for commercial buildings and multifamily dwelling submitted for regulated utilities shall be approved by the Secretary unless such plan

(1) requires each regulated utility to implement a program which meets the requirements of section 731 and such other requirements as many be contained in the rules promulgated by the Secretary under section 712, except that no such program may be required to apply to all of the multifamily dwellings and commercial buildings located within such utility's service area if, within 6 months from the date on which the Secretary's rules are promulgated with respect to such program, the State regulatory authority which exercises ratemaking authority over such utility determines that the inclusion of such additional buildings or dwellings would significantly impair such utility's ability

(A) to fulfill the requirements of section 215, or

(B) to provide utility service to its customers. (2) provides adequate State procedures for implementing enforcement of the plan;

(3) provides procedures for insuring that effective coordination exists among various local, State, and Federal energy conserving programs within and affecting such State; and

(4) is adopted after notice and public hearing. SEC. 723. PLAN REQUIREMENTS FOR NONREGULATED UTILITIES AND

BUILDING HEATING SUPPLIERS. (a) REQUIREMENTS FOR PLANS FOR NONREGULATED UTILITIES.-No plan proposed by a nonregulated utility shall be approved by the Secretary unless such plan meets the same requirements as provided under section 722 for regulated utilities. In applying the requirements of section 722 in the case of a plan for a nonregulated utility under this section, any reference to a regulated utility shall be treated as a reference to a nonregulated utility and the reference to the State regulatory authority shall be treated as a reference to the Governor.

(b) REQUIREMENTS FOR PLANS FOR BUILDING HEATING SUPPLIERS. — No plan proposed for building heating suppliers shall be approved by the Secretary unless such plan meets the same require ments as provided under paragraphs (3) and (4) of section 722 and

(1) meets the requirements of section 732 and contains ade quate enforcement procedures with respect to such require ments;

(2) meets such requirements applicable to building heating suppliers as may be contained in the rules promulgated under section 712, and

(3) takes into account the resources of small building heating suppliers.

PART 3—UTILITY PROGRAMS SEC. 731. UTILITY PROGRAMS.

(a) GENERAL REQUIREMENTS.-Each utility program shall include procedures designed to provide that each public utility

(1) offers to each eligible customer, no later than 12 months after the approval of the applicable plan and every 24 months thereafter until 1990, an energy audit of the eligible customer's commercial building or multifamily dwelling;

(2) conditions the availability of an energy audit in the case of a multifamily dwelling upon the agreement by the eligible customer to provide to the tenants of the customer's multifamily dwelling the information developed by such audit concerning energy efficient improvements and commercial energy conservation measures applicable to the individual dwelling units in such dwelling;

(3) maintains a report of each audit performed pursuant to this subsection with respect to a commercial building or multifamily dwelling for not less than 10 years, which report shall be available to any subsequent eligible customer of such commercial building or multifamily dwelling; and

(4) shall not required to conduct an energy audit of a commercial building or multifamily dwelling which has been audit

ed previously pursuant to this title or title III; except that any public utility may contract with one or more persons, including another utility, to carry out directly some or all of the responsibilities required by this subsection.

(b) REQUIREMENTS CONCERNING ACCOUNTING AND PAYMENT OF Costs.-Each State regulatory authority or nonregulated utility shall, within 180 days after promulgation of rules under section 712(a), or such longer period as the Secretary for good cause may allow, provide

(1) that all amounts expended or received by the utility which are attributable to the utility program (including any penalties paid by such utility under section 741) are accounted for on the books and records of the public utility separately from amounts attributable to all other activities of such utility,

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