Title 15Commerce and TradeRelease 119-73

§788 Use of commercial standards

Title 15 › Chapter CHAPTER 16B— - FEDERAL ENERGY ADMINISTRATION › Subchapter SUBCHAPTER I— - FEDERAL ENERGY ADMINISTRATION › § 788

Last updated Apr 6, 2026|Official source

Summary

When a proposed rule uses a commercial standard, the public notice must name the group that created the standard and must say whether the Administrator believes that group followed fair procedures. Fair procedures mean the group gave people notice and a chance to speak in open meetings, had a balanced membership so all interests were represented, made its records and related documents available before adopting the standard, and had ways for people to ask for reconsideration and review of the standard. The Administrator must check with the Attorney General and the Chair of the Federal Trade Commission about how the standard affects competition and must not include the standard if either official advises against it. These rules do not apply to rules about the Administration’s buying or procurement activities. No later than 90 days after July 21, 1977, the Administrator must make rules about when Administration employees may, in their official role, take part in non‑federal groups that set commercial standards; such employees may participate but may not vote. “Commercial standards” means things like material specs, test methods, performance criteria, model codes, component classifications, procedures or definitions, measurement methods for evaluating items, or similar rules.

Full Legal Text

Title 15, §788

Commerce and Trade — Source: USLM XML via OLRC

(a)If any proposed rule by the Administrator contains any commercial standards, or specifically authorizes or requires the use of any such standards, then any general notice of the proposed rulemaking shall—
(1)identify, by name, the organization which promulgated such standards; and
(2)state whether or not, in the judgment of the Administrator, such organization complied with the requirements of subsection (b) in the promulgation of such standards.
(b)An organization complies with the requirements of this subsection in promulgating any commercial standards if—
(1)it gives interested persons adequate notice of the proposed promulgation of the standards and an opportunity to participate in the promulgation process through the presentation of their views in hearings or meetings which are open to the public;
(2)the membership of the organization at the time of the promulgation of the standards is sufficiently balanced so as to allow for the effective representation of all interested persons;
(3)before promulgating such standards, it makes available to the public any records of proceedings of the organization, and any documents, letters, memorandums, and materials, relating to such standards; and
(4)it has procedures allowing interested persons to—
(A)obtain a reconsideration of any action taken by the organization relating to the promulgation of such standards, and
(B)obtain a review of the standards (including a review of the basis or adequacy of such standards).
(c)The Administrator shall not incorporate within any rule, nor prescribe any rule specifically authorizing or requiring the use of, any commercial standards unless he has consulted with the Attorney General and the Chairman of the Federal Trade Commission concerning the impact of such standards on competition and neither such individual recommends against such incorporation or use.
(d)The foregoing provisions of this section shall not apply with respect to rules prescribed by the Administrator which relate to the procurement activities of the Administration.
(e)Not later than 90 days after July 21, 1977, the Administrator shall prescribe, by rule, guidelines or criteria which set forth the extent to which, and the terms and conditions under which, employees of the Administration may participate in their official capacity in the activities of any organization (which is not a Federal entity) which relate to the promulgation of commercial standards. Such guidelines and criteria may allow for such participation if it is in the public interest and relates to the purposes of this chapter, but in no event may such employees who are participating in their official capacity be allowed under such guidelines or criteria to vote on any matter relating to commercial standards.
(f)As used in this section, the term “commercial standards” means—
(1)specifications of materials;
(2)methods of testing;
(3)criteria for adequate performance or operation;
(4)model codes;
(5)classification of components;
(6)delineation of procedures or definition of terms;
(7)measurement of quantity or quality for evaluating or referring to materials, products, systems, services, or practices; or
(8)similar rules, procedures, requirements, or standards;

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Transfer of Functions

Federal Energy Administration terminated and functions vested by law in Administrator thereof transferred to Secretary of Energy (unless otherwise specifically provided) by section 7151(a) and 7293 of Title 42, The Public Health and Welfare.

Reference

Citations & Metadata

Citation

15 U.S.C. § 788

Title 15Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73