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) Interagency Working Groups.--Section 256(h) of the Energy 
Policy and Conservation Act (42 U.S.C. 6276(h)) is amended to read as 
follows:
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for fiscal years 1999 through 2003 such 
sums as may be necessary to carry out subsections (d) and (e), to be 
divided equitably between the interagency working subgroups based on 
program requirements.''.
    (b) 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.''.
    (c) Schools and Hospitals.--Section 397 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.''.
Energy Conservation Reauthorization Act of 1998 - Amends the Energy Policy and Conservation Act to authorize appropriations for FY 1999 through 2003 for:  (1) State energy conservation programs; and (2) the energy conservation program for schools and hospitals. 
(Sec. 3) Amends the Energy Conservation and Production Act to authorize appropriations for FY 1999 through 2003 to implement the weatherization program. 
(Sec. 4) Amends the National Energy Conservation Policy Act to extend until October 1, 2003, Federal agency authority to enter into new energy savings performance contracts. 
(Sec. 6) Repeals termination of the President's authority to require either allocation or priority contract performance of materials supplies and equipment in order to maximize domestic energy supplies under certain energy contingencies (thereby making such authority permanent). 
(Sec. 7) Amends the Energy Policy Act of 1992 to set forth a statutory mechanism for the allocation of credit for specified biodiesel fuel use by a fleet or covered person. 
Requires the Secretary to allocate one credit to a fleet or covered person for each qualifying volume of the biodiesel component of fuel containing at least 20 percent biodiesel by volume (B-20) purchased 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.  Permits the Secretary to lower the B-20 requirement for reasons related to cold start, safety, or vehicle function considerations. 
Prohibits the allocation of credits for a purchase of biodiesel: (1) for use in alternative fueled vehicles; or (2) that is required by Federal or State law. 
Requires the Secretary, upon the request of a fleet or covered person receiving a credit allocation, to treat that purchase as the acquisition of one alternative fueled vehicle which the fleet or covered person is required to acquire by such Act. 
(Sec. 8) Requires the head of each Federal agency to report annually to the Congress on compliance with the alternative fuel purchasing requirements for Federal fleets, including a plan with specific dates for achieving compliance.  Requires public dissemination of such reports in the Federal Register and on the Internet.
Energy Conservation Reauthorization Act of 1998