Assume that we have solved the problem of the motion of the particle, so that $\theta=\theta(t)$ is a known function. Put yourself in a non-inertial reference frame $K'$ which rotates with respect to the inertial one $K$ with angular velocity $\vec{\omega}(t)= \dot{\theta}(t) \frac{\vec{L}}{L}$, where we have exploited the fact that, since the potential energy $U$ is radial, the motion in $K$ is in the plane orthogonal to $\vec{L}$, which is constant in $K$.
The kinetic energy in $K'$ is $$T|_{K'} = \frac{m}{2}\dot{r}^2$$
since there is no angular motion there.
In $K'$ some apparent forces take place in addition to the force associated to $U$. They are the centrifugal force, the Coriolis force, and the Euler force (see below).
The potential energy in $K'$ takes the potential energy of the apparent centrifugal force into account,
$$U|_{K'}(r) = U(r) + \frac{m}{2}\omega^2r^2 = U(r) + \frac{m}{2}\dot{\theta}^2r^2 = U(r) + \frac{L^2}{2mr^2}\:.$$
Indeed, the centrifugal force reads
$$\vec{f} = -m \vec{\omega}\wedge(\vec{\omega} \wedge re_r)) = m \dot{\theta}^2 r e_r = \frac{L^2}{mr^{3}}e_r = - \frac{d}{dr}\left( \frac{L^2}{2mr^2}\right) e_r\:.$$
In $K'$ all (real or apparent) forces are
(a) conservative: the force associated to $U(r)$ and the centrifugal force one,
or
(b) they do not dissipate work because they acts orthogonally to the motion, i.e., orthogonally to $e_r$: the Coriolis force $-2m \vec{\omega}\wedge \dot{r} e_r$ and the Euler force $-m\dot{\vec{\omega}}\wedge re_r $.
Therefore the total mechanical energy is conserved in $K'$:
$$E|_{K'}= \frac{1}{2}m\dot{r}^2 + \left(U(r) + \frac{L^2}{2mr^2}\right) = constant$$
In $K'$, differently from $K$, the so-called "effective potential energy" is a true potential energy (though of an apparent force) and it is not part of the kinetic energy as instead it happens in $K$.