[105th Congress Public Law 388]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ388.105]


[[Page 112 STAT. 3477]]

Public Law 105-388
105th Congress

                                 An Act


 
To extend certain programs under the Energy Policy and Conservation Act 
     and the Energy Conservation and Production Act, and for other 
             purposes. <<NOTE: Nov. 13, 1998 -  [S. 417]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Energy 
Conservation Reauthorization Act of 1998. 42 USC 6201 note.>> 

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:

    ``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:

[[Page 112 STAT. 3478]]

            ``(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-- <<NOTE: 87 Stat. 871.>> 
                    (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

[[Page 112 STAT. 3479]]

                    (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-- <<NOTE: 90 Stat. 1125.>> 
                    (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-- <<NOTE: 90 Stat. 3206.>> 
                    (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 <<NOTE: 50 
USC app. 2071 note.>>  is amended by striking ``(1) The authority'' and 
all that follows through ``(2)''.

[[Page 112 STAT. 3480]]

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. <<NOTE: 42 USC 13220.>> 

    ``(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

[[Page 112 STAT. 3481]]

                    ``(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 <<NOTE: 106 Stat. 2776.>> 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) <<NOTE: Deadline.>> 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--

[[Page 112 STAT. 3482]]

                    ``(A) <<NOTE: Internet.>> placing such report on a 
                publicly available website on the Internet; and
                    ``(B) <<NOTE: Federal Register, 
                publication.>> 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. <<NOTE: Hawaii.>> 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--

[[Page 112 STAT. 3483]]

                    ``(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

[[Page 112 STAT. 3484]]

        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.-- <<NOTE: 42 USC 6241 note.>> 
            (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) <<NOTE: 42 USC 6241 note.>> 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''.

[[Page 112 STAT. 3485]]

    (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''.

    Approved November 13, 1998.

LEGISLATIVE HISTORY--S. 417 (H.R. 4017):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 105-727 accompanying H.R. 4017 (Comm. on Commerce).
SENATE REPORTS: No. 105-25 (Comm. on Energy and Natural Resources).
CONGRESSIONAL RECORD:
                                                        Vol. 143 (1997):
                                    June 27, considered and passed 
                                        Senate.
                                                        Vol. 144 (1998):
                                    Sept. 28, considered and passed 
                                        House, amended, in lieu of H.R. 
                                        4017.
                                    Oct. 8, Senate concurred in House 
                                        amendments with an amendment.
                                    Oct. 15, House concurred in Senate 
                                        amendment.

                                  <all>