Page:United States Statutes at Large Volume 94 Part 1.djvu/793

 PUBLIC LAW 96-294—JUNE 30, 1980

94 STAT. 743

(5) by striking out "(C)" in subsection (c)(2)(0 and inserting in lieu thereof "(B)"; and (6) by striking out subsection (f) and inserting in lieu thereof the following: "(f) LOANS.—In the case of a loan which is arranged by a public utility under subsection (b)(l)(C), the utility, at the request of the person making such loan, shall permit repayment of the loan as part of the periodic utility bill. The utility may recover from the person making such loan the cost incurred by the utility in carrying out such manner of repayment.". TAX TREATMENT

SEC. 545. Section 216 of the National Energy Conservation Policy Act is amended by adding the following new subsection at the end 42 USC 8217. thereof: "(i) TAX TREATMENT.—The value of any subsidy provided by a utility to any residential customer for the purchase and installation of residental energy conservation measures shall not be included in the gross income of such customer for purposes of the Internal Revenue Code of 1954, and such customer shall not receive any 26 USC i et seq. increase in basis under the Internal Revenue Code of 1954 which is attributable to any such subsidy.". SUPPLY, INSTALLATION, AND FINANCING BY PUBLIC UTILITIES

SEC. 546. (a) Section 216 of the National Energy Conservation Policy Act is amended— 42 USC 8217. (1) by striking out the section heading and inserting in lieu thereof the following: "SEC. 216. SUPPLY AND INSTALLATION BY PUBLIC UTILITIES.";

(2) by striking out subsection (a) and inserting in lieu thereof the following: "(a) PROHIBITION ON SUPPLY AND INSTALLATION BY PUBLIC U T I U -

TIES.—Except as provided in this section, no public utility may supply or install a residential energy conservation measure for any residential customer."; (3) by striking out "(1)" in subsection (b); and (4) by striking out subsection (c) and inserting in lieu thereof the following: "(c) EXEMPTION FROM PROHIBITION ON SUPPLY AND INSTALLATION.—

(1) The prohibition contained in subsection (a) shall not apply to any residential energy conservation measure supplied or installed by a public utility through contracts between such utility and independent suppliers or contractors where the customer requests such supply or installation and each such supplier or contractor— "(A) is on the list of suppliers and contractors referred to in section 213(a)(2); Ante, p. 742. "(B) is not subject to the control of the public utility, except as to the performance of such contract, and is not an affiliate or a subsidiary of such utility; and "(C) if selected by the utility, is selected in a manner consistent with paragraph (2). "(2) As provided under the provisions described in section 213(b)(2)(D), activities of a public utility under paragraph (1)— "(A) may not involve unfair methods of competition;

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