[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 417 Enrolled Bill (ENR)]

        S.417

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
                                  eight


                                 An Act


 
To extend certain programs under the Energy Policy and Conservation Act 
 and the Energy Conservation and Production Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Conservation Reauthorization 
Act of 1998''.

SEC. 2. ENERGY POLICY AND CONSERVATION ACT AMENDMENTS.

    (a) State Energy Conservation Program.--Section 365(f) of the 
Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is amended to 
read as follows:
    ``(f) For the purpose of carrying out this part, there are 
authorized to be appropriated for fiscal years 1999 through 2003 such 
sums as may be necessary.''.
    (b) Schools and Hospitals.--Section 397 of the Energy Policy and 
Conservation Act (42 U.S.C. 6371f) is amended to read as follows:

                   ``authorization of appropriations

    ``Sec. 397. For the purpose of carrying out this part, there are 
authorized to be appropriated for fiscal years 1999 through 2003 such 
sums as may be necessary.''.

SEC. 3. ENERGY CONSERVATION AND PRODUCTION ACT AMENDMENT.

    Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended to read as follows:


                    ``authorization of appropriations

    ``Sec. 422. For the purpose of carrying out the weatherization 
program under this part, there are authorized to be appropriated for 
fiscal years 1999 through 2003 such sums as may be necessary.''.

SEC. 4. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Sunset.--Section 801(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8287(c)) is amended by striking ``five years 
after'' and all that follows through ``subsection (b)'' and inserting 
``on October 1, 2003''.
    (b) Definition.--Section 804(1) of the National Energy Conservation 
Policy Act (42 U.S.C. 8287c(1)) is amended to read as follows:
        ``(1) The term `Federal agency' means each authority of the 
    Government of the United States, whether or not it is within or 
    subject to review by another agency.''.

SEC. 5. TECHNICAL AMENDMENTS.

    (a) Energy Policy and Conservation Act.--The Energy Policy and 
Conservation Act is amended--
        (1) in the table of contents--
            (A) by striking ``Sec. 301.'' and all that follows through 
        ``Reports to Congress.'.'';
            (B) by striking ``efficiency'' and inserting 
        ``conservation'' in the item relating to section 325;
            (C) by striking ``and private labelers'' in the item 
        relating to section 326;
            (D) by striking the items relating to part E of title III;
            (E) by inserting after the items relating to part I of 
        title III the following:

           ``Part J--Encouraging the Use of Alternative Fuels

``Sec. 400AA. Alternative fuel use by light duty Federal vehicles.
``Sec. 400BB. Alternative fuels truck commercial application program.
``Sec. 400CC. Alternative fuels bus program.
``Sec. 400DD. Interagency Commission on Alternative Motor Fuels.
``Sec. 400EE. Studies and reports.'';

            (F) by inserting ``Environmental'' after ``Energy Supply 
        and'' in the item relating to section 505; and
            (G) by striking the item relating to section 527;
        (2) in section 321(1) (42 U.S.C. 6291(1))--
            (A) by striking ``section 501(1) of the Motor Vehicle 
        Information and Cost Savings Act'' and inserting ``section 
        32901(a)(3) of title 49, United States Code''; and
            (B) by striking the second period at the end thereof;
        (3) in section 322(b)(2)(A) (42 U.S.C. 6292(b)(2)(A)) by 
    inserting close quotation marks after ``type of product'';
        (4) in section 324(a)(2)(C)(ii) (42 U.S.C. 6294(a)(2)(C)(ii)) 
    by striking ``section 325(j)'' and inserting ``section 325(i)'';
        (5) in section 325 (42 U.S.C. 6295)--
            (A) by striking ``paragraphs'' in subsection (e)(4)(A) and 
        inserting ``paragraph''; and
            (B) by striking ``Ballasts;'' in the heading of subsection 
        (g) and inserting ``Ballasts'';
        (6) in section 336(c)(2) (42 U.S.C. 6306(c)(2)) by striking 
    ``section 325(k)'' and inserting ``section 325(n)'';
        (7) in section 345(c) (42 U.S.C. 6316(c)) by inserting 
    ``standard'' after ``meets the applicable'';
        (8) in section 362 (42 U.S.C. 6322)--
            (A) by inserting ``of'' after ``of the implementation'' in 
        subsection (a)(1); and
            (B) by striking ``subsection (g)'' and inserting 
        ``subsection (f)(2)'' in subsection (d)(12);
        (9) in section 391(2)(B) (42 U.S.C. 6371(2)(B)) by striking the 
    period at the end and inserting a semicolon;
        (10) in section 394(a) (42 U.S.C. 6371c(a))--
            (A) by striking the commas at the end of paragraphs (1), 
        (3), and (5) and inserting semicolons;
            (B) by striking the period at the end of paragraph (2) and 
        inserting a semicolon; and
            (C) by striking the colon at the end of paragraph (6) and 
        inserting a semicolon;
        (11) in section 400 (42 U.S.C. 6371i) by striking ``(a)'';
        (12) in section 400D(a) (42 U.S.C. 6372c(a)) by striking the 
    commas at the end of paragraphs (1), (2), and (3) and inserting 
    semicolons;
        (13) in section 400I(b) (42 U.S.C. 6372h(b)) by striking 
    ``Secretary shall,'' and inserting ``Secretary shall'';
        (14) in section 400AA (42 U.S.C. 6374) by redesignating 
    subsection (i) as subsection (h);
        (15) in section 503 (42 U.S.C. 6383)--
            (A) by striking ``with repect to'' and inserting ``with 
        respect to'' in subsection (b); and
            (B) by striking ``controlling'' and inserting ``, 
        controlling,'' in subsection (c)(1); and
        (16) in section 552(d)(5)(A) (42 U.S.C. 6422(d)(5)(A)) by 
    striking ``notion'' and inserting ``motion''.
    (b) Energy Conservation and Production Act.--The Energy 
Conservation and Production Act is amended--
        (1) in the table of contents--
            (A) by striking ``rules and regulations'' and inserting 
        ``regulations and rulings'' in the item relating to section 
        106; and
            (B) by striking the item relating to section 207 and 
        inserting the following:
``Sec. 207. State utility regulatory assistance.
``Sec. 208. Authorization of appropriations.'';

    and
        (2) in section 202 (42 U.S.C. 6802) by striking ``(b) 
    Definitions.--''.
    (c) National Energy Conservation Policy Act.--The National Energy 
Conservation Policy Act is amended--
        (1) in the table of contents--
            (A) by striking ``, installation, and financing'' and 
        inserting ``and installation'' in the item relating to section 
        216;
            (B) by striking ``Ratings'' and inserting ``Rating 
        Guidelines'' in the item relating to part 6 of title II;
            (C) by striking the item relating to section 304; and
            (D) by striking ``goals'' and inserting ``requirements'' in 
        the item relating to section 543;
        (2) in section 216(d)(1)(C) (42 U.S.C. 8217(d)(1)(C)) by 
    striking ``explictly'' and inserting ``explicitly'';
        (3) in section 251(b)(1) (42 U.S.C. 8231(b)(1))--
            (A) by striking ``National Housing Act to projects'' and 
        inserting ``National Housing Act) to projects''; and
            (B) by striking ``accure'' and inserting ``accrue'';
        (4) in section 266 (42 U.S.C. 8235e) by striking ``(17 U.S.C.'' 
    and inserting ``(15 U.S.C.''; and
        (5) in section 551(8) (42 U.S.C. 8259(8)) by striking 
    ``goethermal'' and inserting ``geothermal''.

SEC. 6. MATERIALS ALLOCATION AUTHORITY EXTENSION.

    Section 104(b) of the Energy Policy and Conservation Act is amended 
by striking ``(1) The authority'' and all that follows through ``(2)''.

SEC. 7. BIODIESEL FUEL USE CREDITS.

    (a) Amendment.--Title III of the Energy Policy Act of 1992 (42 
U.S.C. 13211-13219) is amended by adding at the end the following new 
section:

``SEC. 312. BIODIESEL FUEL USE CREDITS.

    ``(a) Allocation of Credits.--
        ``(1) In general.--The Secretary shall allocate one credit 
    under this section to a fleet or covered person for each qualifying 
    volume of the biodiesel component of fuel containing at least 20 
    percent biodiesel by volume purchased after the date of the 
    enactment of this section for use by the fleet or covered person in 
    vehicles owned or operated by the fleet or covered person that 
    weigh more than 8,500 pounds gross vehicle weight rating.
        ``(2) Exceptions.--No credits shall be allocated under 
    paragraph (1) for a purchase of biodiesel--
            ``(A) for use in alternative fueled vehicles; or
            ``(B) that is required by Federal or State law.
        ``(3) Authority to modify percentage.--The Secretary may, by 
    rule, lower the 20 percent biodiesel volume requirement in 
    paragraph (1) for reasons related to cold start, safety, or vehicle 
    function considerations.
        ``(4) Documentation.--A fleet or covered person seeking a 
    credit under this section shall provide written documentation to 
    the Secretary supporting the allocation of a credit to such fleet 
    or covered person under paragraph (1).
    ``(b) Use of Credits.--
        ``(1) In general.--At the request of a fleet or covered person 
    allocated a credit under subsection (a), the Secretary shall, for 
    the year in which the purchase of a qualifying volume is made, 
    treat that purchase as the acquisition of one alternative fueled 
    vehicle the fleet or covered person is required to acquire under 
    this title, title IV, or title V.
        ``(2) Limitation.--Credits allocated under subsection (a) may 
    not be used to satisfy more than 50 percent of the alternative 
    fueled vehicle requirements of a fleet or covered person under this 
    title, title IV, and title V. This paragraph shall not apply to a 
    fleet or covered person that is a biodiesel alternative fuel 
    provider described in section 501(a)(2)(A).
    ``(c) Credit Not a Section 508 Credit.--A credit under this section 
shall not be considered a credit under section 508.
    ``(d) Issuance of Rule.--The Secretary shall, before January 1, 
1999, issue a rule establishing procedures for the implementation of 
this section.
    ``(e) Collection of Data.--The Secretary shall collect such data as 
are required to make a determination described in subsection (f)(2)(B).
    ``(f) Definitions.--For purposes of this section--
        ``(1) the term `biodiesel' means a diesel fuel substitute 
    produced from nonpetroleum renewable resources that meets the 
    registration requirements for fuels and fuel additives established 
    by the Environmental Protection Agency under section 211 of the 
    Clean Air Act; and
        ``(2) the term `qualifying volume' means--
            ``(A) 450 gallons; or
            ``(B) if the Secretary determines by rule that the average 
        annual alternative fuel use in light duty vehicles by fleets 
        and covered persons exceeds 450 gallons or gallon equivalents, 
        the amount of such average annual alternative fuel use.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy Act of 1992 is amended by adding at the end of the items 
relating to title III the following new item:
``Sec. 312. Biodiesel fuel use credits.''.
SEC. 8. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE FUEL VEHICLE 
PURCHASING REQUIREMENTS.
    (a) In General.--Section 310 of the Energy Policy Act of 1992 (42 
U.S.C. 13218) is amended--
        (1) by striking the heading and inserting the following:

``SEC. 310. REPORTS.'';

        (2) by inserting ``(a) General Service Administration Program 
    Report.--'' before ``Not later than''; and
        (3) by adding at the end the following:
    ``(b) Compliance Report.--
        ``(1) In general.--Not later than 1 year after the date of 
    enactment of this subsection, and annually thereafter for the next 
    14 years, the head of each Federal agency which is subject to this 
    Act and Executive Order No. 13031 shall prepare, and submit to 
    Congress, a report that--
            ``(A) summarizes the compliance by such Federal agency with 
        the alternative fuel purchasing requirements for Federal fleets 
        under this Act and Executive Order No. 13031; and
            ``(B) includes a plan of compliance that contains specific 
        dates for achieving compliance using reasonable means.
        ``(2) Contents.--
            ``(A) In general.--Each report submitted under paragraph 
        (1) shall include--
                ``(i) any information on any failure to meet statutory 
            requirements or requirements under Executive Order No. 
            13031;
                ``(ii)(I) any plan of compliance that the agency head 
            is required to submit under Executive Order No. 13031; or
                ``(II) if a plan of compliance referred to in subclause 
            (I) does not contain specific dates by which the Federal 
            agency is to achieve compliance, a revised plan of 
            compliance that contains specific dates for achieving 
            compliance; and
                ``(iii) any related information the agency head is 
            required to submit to the Director of the Office of 
            Management and Budget under Executive Order No. 13031.
            ``(B) Penultimate report.--The penultimate report submitted 
        under paragraph (1) shall include an announcement that the 
        report for the next year shall be the final report submitted 
        under paragraph (1).
        ``(3) Public dissemination of report.--Each report submitted 
    under paragraph (1) shall be made public, including--
            ``(A) placing such report on a publicly available website 
        on the Internet; and
            ``(B) publishing the availability of the report, including 
        such website address, in the Federal Register.''.
    (b) Clerical Amendment.--The table of contents for the Energy 
Policy Act of 1992 contained in section 1(b) of that Act (106 Stat. 
2776 et. seq.) is amended by striking the item relating to section 310 
and inserting the following:
``Sec. 310. Reports.''.

SEC. 9. PURCHASES FROM STRATEGIC PETROLEUM RESERVE BY ENTITIES IN 
              INSULAR AREAS OF UNITED STATES AND FREELY ASSOCIATED 
              STATES.

    (a) Section 161 of the Energy Policy and Conservation Act (42 
U.S.C. 6241) is amended by adding at the end the following:
    ``(j) Purchases From Strategic Petroleum Reserve by Entities in 
Insular Areas of United States and Freely Associated States.--
        ``(1) Definitions.--In this subsection:
            ``(A) Binding offer.--The term `binding offer' means a bid 
        submitted by the State of Hawaii for an assured award of a 
        specific quantity of petroleum product, with a price to be 
        calculated pursuant to paragraph (2) of this subsection, that 
        obligates the offeror to take title to the petroleum product 
        without further negotiation or recourse to withdraw the offer.
            ``(B) Category of petroleum product.--The term `category of 
        petroleum product' means a master line item within a notice of 
        sale.
            ``(C) Eligible entity.--The term `eligible entity' means an 
        entity that owns or controls a refinery that is located within 
        the State of Hawaii.
            ``(D) Full tanker load.--The term `full tanker load' means 
        a tanker of approximately 700,000 barrels of capacity, or such 
        lesser tanker capacity as may be designated by the State of 
        Hawaii.
            ``(E) Insular area.--The term `insular area' means the 
        Commonwealth of Puerto Rico, the Commonwealth of the Northern 
        Mariana Islands, the United States Virgin Islands, Guam, 
        American Samoa, the Freely Associated States of the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
            ``(F) Offering.--The term `offering' means a solicitation 
        for bids for a quantity or quantities of petroleum product from 
        the Strategic Petroleum Reserve as specified in the notice of 
        sale.
            ``(G) Notice of sale.--The term `notice of sale' means the 
        document that announces--
                ``(i) the sale of Strategic Petroleum Reserve products;
                ``(ii) the quantity, characteristics, and location of 
            the petroleum product being sold;
                ``(iii) the delivery period for the sale; and
                ``(iv) the procedures for submitting offers.
        ``(2) In general.--In the case of an offering of a quantity of 
    petroleum product during a drawdown of the Strategic Petroleum 
    Reserve--
            ``(A) the State of Hawaii, in addition to having the 
        opportunity to submit a competitive bid, may--
                ``(i) submit a binding offer, and shall on submission 
            of the offer, be entitled to purchase a category of a 
            petroleum product specified in a notice of sale at a price 
            equal to the volumetrically weighted average of the 
            successful bids made for the remaining quantity of the 
            petroleum product within the category that is the subject 
            of the offering; and
                ``(ii) submit one or more alternative offers, for other 
            categories of the petroleum product, that will be binding 
            if no price competitive contract is awarded for the 
            category of petroleum product on which a binding offer is 
            submitted under clause (i); and
            ``(B) at the request of the Governor of the State of 
        Hawaii, a petroleum product purchased by the State of Hawaii at 
        a competitive sale or through a binding offer shall have first 
        preference in scheduling for lifting.
        ``(3) Limitation on quantity.--
            ``(A) In general.--In administering this subsection, in the 
        case of each offering, the Secretary may impose the limitation 
        described in subparagraph (B) or (C) that results in the 
        purchase of the lesser quantity of petroleum product.
            ``(B) Portion of quantity of previous imports.--The 
        Secretary may limit the quantity of a petroleum product that 
        the State of Hawaii may purchase through a binding offer at any 
        offering to 1/12 of the total quantity of imports of the 
        petroleum product brought into the State during the previous 
        year (or other period determined by the Secretary to be 
        representative).
            ``(C) Percentage of offering.--The Secretary may limit the 
        quantity that may be purchased through binding offers at any 
        offering to 3 percent of the offering.
        ``(4) Adjustments.--
            ``(A) In general.--Notwithstanding any limitation imposed 
        under paragraph (3), in administering this subsection, in the 
        case of each offering, the Secretary shall, at the request of 
        the Governor of the State of Hawaii, or an eligible entity 
        certified under paragraph (7), adjust the quantity to be sold 
        to the State of Hawaii in accordance with this paragraph.
            ``(B) Upward adjustment.--The Secretary shall adjust upward 
        to the next whole number increment of a full tanker load if the 
        quantity to be sold is--
                ``(i) less than 1 full tanker load; or
                ``(ii) greater than or equal to 50 percent of a full 
            tanker load more than a whole number increment of a full 
            tanker load.
            ``(C) Downward adjustment.--The Secretary shall adjust 
        downward to the next whole number increment of a full tanker 
        load if the quantity to be sold is less than 50 percent of a 
        full tanker load more than a whole number increment of a full 
        tanker load.
        ``(5) Delivery to other locations.--The State of Hawaii may 
    enter into an exchange or a processing agreement that requires 
    delivery to other locations, if a petroleum product of similar 
    value or quantity is delivered to the State of Hawaii.
        ``(6) Standard sales provisions.--Except as otherwise provided 
    in this Act, the Secretary may require the State of Hawaii to 
    comply with the standard sales provisions applicable to purchasers 
    of petroleum products at competitive sales.
        ``(7) Eligible entities.--
            ``(A) In general.--Subject to subparagraphs (B) and (C) and 
        notwithstanding any other provision of this paragraph, if the 
        Governor of the State of Hawaii certifies to the Secretary that 
        the State has entered into an agreement with an eligible entity 
        to carry out this Act, the eligible entity may act on behalf of 
        the State of Hawaii to carry out this subsection.
            ``(B) Limitation.--The Governor of the State of Hawaii 
        shall not certify more than one eligible entity under this 
        paragraph for each notice of sale.
            ``(C) Barred company.--If the Secretary has notified the 
        Governor of the State of Hawaii that a company has been barred 
        from bidding (either prior to, or at the time that a notice of 
        sale is issued), the Governor shall not certify the company 
        under this paragraph.
        ``(8) Supplies of petroleum products.--At the request of the 
    Governor of an insular area, the Secretary shall, for a period not 
    to exceed 180 days following a drawdown of the Strategic Petroleum 
    Reserve, assist the insular area or the President of a Freely 
    Associated State in its efforts to maintain adequate supplies of 
    petroleum products from traditional and nontraditional 
    suppliers.''.
    (b) Regulations.--
        (1) In general.--The Secretary of Energy shall issue such 
    regulations as are necessary to carry out the amendment made by 
    subsection (a).
        (2) Administrative procedure.--Regulations issued to carry out 
    the amendment made by subsection (a) shall not be subject to--
            (A) section 523 of the Energy Policy and Conservation Act 
        (42 U.S.C. 6393); or
            (B) section 501 of the Department of Energy Organization 
        Act (42 U.S.C. 7191).
    (c) Effective Date.--The amendment made by subsection (a) takes 
effect on the earlier of--
        (1) the date that is 180 days after the date of enactment of 
    this Act; or
        (2) the date that final regulations are issued under subsection 
    (b).

SEC. 10. INDIAN ENERGY RESOURCE DEVELOPMENT.

    Section 2603 of the Energy Policy Act of 1992 (25 U.S.C. 3503) is 
amended in subsection (c) by striking ``and 1997'' each place it 
appears and inserting ``1999, 2000, 2001, 2002 and 2003'' in lieu 
thereof.

SEC. 11. REMEDIAL ACTION.

    (a) Section 1001(b)(2)(C) of the Energy Policy Act of 1992 (42 
U.S.C. 2296a) is amended by striking ``$65,000,000'' and inserting 
``$140,000,000''.
    (b) Section 1003(a) of such Act (42 U.S.C. 2296a-2) is amended by 
striking ``$415,000,000'' and inserting ``$490,000,000''.
    (c) Section 1802(a) of the Atomic Energy Act of 1954 (42 U.S.C. 
2297g-1) is amended by striking ``$480,000,000'' and inserting 
``$488,333,333''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.