THE OVERRIDING PROBLEMS REDUCING PRESENT POLICY AND PROGRAM EFFECTIVENESS ARE THE LACK OF AN OVERALL ENERGY CONSERVATION GOAL, OF AN AGGRESSIVE FEDERAL INHOUSE ENERGY CONSERVATION PROGRAM, AND OF CONGRESS AND ADMINISTRATION AGREEMENT ON EMERGENCY ENERGY CONSERVATION AND GASOLINE-RATIONING PLANS. ADDITIONALLY, THE FEDERAL GOVERNMENT NEEDS TO DESCRIBE THE NATION'S ENERGY PROBLEMS TO THE PUBLIC. SELECTION FACTORS FOR CHOOSING ONE ENERGY STRATEGY OVER ANOTHER MUST BE DEVELOPED. SOME OF THESE MIGHT BE THE ENERGY SAVINGS, BY FUEL TYPE, FROM EFFECTIVE IMPLEMENTATION OF THE STRATEGY; THE TIME FRAME IN WHICH ENERGY SAVINGS CAN BE ACHIEVED; THE DOLLAR COST OF IMPLEMENTATION AND THE ADMINISTRATIVE FEASIBILITY; ENVIRONMENTAL IMPLICATIONS, PARTICULARLY FOR HEALTH AND SAFETY; ECONOMIC IMPACT, (ON INFLATION AND UNEMPLOYMENT, FOR EXAMPLE); AND THE BURDEN ON SELECTED CONSUMER GROUPS OR REGIONS. USING THESE CRITERIA, THE ADMINISTRATION CAN DEVELOP SPECIFIC ENERGY CONSERVATION STRATEGIES, INCLUDING FURNACE AND WATER HEATER THERMOSTAT SET-BACKS IN RESIDENCES, RETROFITTING OF GAS AND OIL FURNACES WITH AUTOMATIC VENT DAMPERS, ACCELERATION OF THE IMPROVEMENT OF THE AUTOMOBILE FLEET'S AVERAGE FUEL ECONOMY, IMPROVEMENT OF NEW AUTOMOBILE FUEL ECONOMY BEYOND 1985, REDUCTION OF THE AVERAGE NUMBER OF MILES TRAVELED ANNUALLY BY EACH AUTOMOBILE, OPERATIONAL MEASURES AND RETROFITTING OF EXISTING COMMERCIAL BUILDINGS, AND IMPROVED USE OF COGENERATION. GAO OUTLINES FOR EACH OF THESE STRATEGIES VOLUNTARY, INDIRECT MARKET INTERVENTION AND DIRECT MARKET INTERVENTION APPROACHES AND DISCUSSES HOW APPLICATION OF THE SELECTION FACTORS HIGHLIGHT SOME OF THE TRADE-OFFS IN SPECIFIC STRATEGIES. IN ADDITION, ENERGY CONSERVATION OPPORTUNITIES IDENTIFIED IN VARIOUS STUDIES AND REPORTS ARE LISTED IN AN APPENDIX, AND TWO ENERGY CONSERVATION STRATEGIES ARE EVALUATED IN THE TEXT IN TERMS OF THE SELECTION FACTORS. AN APPENDED LETTER DOCUMENTS DEPARTMENT OF ENERGY COMMENTS TO GAO'S PROPOSALS. (MHP)