Energy Conservation Reauthorization Act of 1998
PL 105-388 (S.417), enacted 11/13/1998

PUBLIC LAW 105-388—NOV. 13, 1998 
112 STAT. 3477 
Public Law 105-388 
105th Congress 
An Act 
To extend certain programs under the Energy Policy and Conservation Act and 
Nov. 13, 1998 
the Energy Conservation and Production Act, and for other purposes. 
[S. 417] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled. 
Energy 
Conservation 
SECTION 1. SHORT TITLE. 
Reauthorization 
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Act of 1998. 
This Act may be cited as the Energy Conservation Reauthonza- 
42 USC 6201 
tion Act of 1998". 
note. 
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 author-
ized 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 caniying 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 Conserva-
tion Policy Act (42 U.S.C. 8287(c)) is amended by striking "five 
years after" and all that follows through "subsection (b)" and insert-
ing "on October 1, 2003". 
(b) DEFINITION.—Section 804(1) of the National Energy Con-
servation Policy Act (42 U.S.C. 8287c(l)) is amended to read as 
follows: 
112 STAT. 3478 
PUBLIC LAW 105-388—NOV. 13, 1998 
"(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 Pol-
icy and Conservation Act is amended— 
87 Stat. 871. 
(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 relat-
ing to section 326; 
(D) by striking the items relating to part E of title 
HI; 
(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 "tjrpe 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 "stand-
ard" 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 "sub-
section (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 
PUBLIC LAW 105-388—NOV. 13, 1998 
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. 637 li) 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 4001(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 ", control-
ling," 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— 
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) DEFINI-
TIONS.—". 
(c) 
NATIONAL 
ENERGY 
CONSERVATION 
POLICY 
ACT.—The 
National Energy Conservation Policy Act is amended— 
(1) in the table of contents— 
92 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 Guide-
lines" 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 strik-
ing "explictly" and inserting "explicitly"; 
(3) in section 25 l(b)( 1) (42 U.S.C. 823 l(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 SOUSCapp. 
amended by striking "(1) The authority" and all that follows through 
2071 note. 
"(2)". 
112 STAT. 3480 
PUBLIC LAW 105-388—NOV. 13, 1998 
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: 
42 use 13220. 
"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 qualify-
ing 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 para-
graph (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 
veMcle 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 alter-
native fiieled 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 alter-
native 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 alter-
native 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 sub-
section (f)(2)(B). 
"(f) DEFINITIONS.—^For purposes of this section— 
"(1) the term 'biodiesel' means a diesel fuel substitute pro-
duced from nonpetroleum renewable resources that meets the 
registration requirements for fuels and fuel additives estab-
lished by the Environmental Protection Agency under section 
211 of the Clean Air Act; and 
"(2) the term 'qualifying volume' means— 
"(A) 450 gallons; or 
PUBLIC LAW 105-388—NOV. 13, 1998 
112 STAT. 3481 
"(B) if the Secretary determines by rule that the aver-
age 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 106 Stat. 2776. 
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 Deadline, 
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 para-
graph (1) shall include— 
"(i) any information on any failure to meet statu-
tory requirements or requirements under Executive 
Order No. 13031; 
"(ii)(l) 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 announce-
ment 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, includ-
ing— 
112 STAT. 3482 
PUBLIC LAW 105-388—NOV. 13, 1998 
Internet. 
"(A) placing such report on a publicly available website 
on the Internet; and 
Federal Register, 
"(B) publishing the availability of the report, including 
publication. 
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.". 
Hawaii. 
SEC. 9. PURCHASES FROM STRATEGIC PETROLEUM RESERVE BY ENTI-
TIES IN INSULAR AREAS OF UNITED STATES AND FREELY 
ASSOCIATED STATES. 
(a) Section 161 of the Energy Policy and Conservation Act 
(42 IJ.S.C. 6241) is amended by adding at the end the following: 
"(j) PURCHASES FROM STRATEGIC PETROLEUM RESERVE BY ENTI-
TIES 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 capac-
ity, 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 Fed-
erated States of Micronesia, and the Republic of Palau. 
"(F) OFFERING.—The term 'offering' means a solicita-
tion 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 prod-
ucts; 
"(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 Petro-
leum Reserve— 
PUBLIC LAW 105-388—NOV. 13, 1998 
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 bind-
ing 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 prod-
uct 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 sub-
section, 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 
112 STAT. 3484 
PUBLIC LAW 105-388—NOV. 13, 1998 
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 para-
graph, if the Governor of the State of Hawaii certifies 
to the Secretary that the State has entered into an agree-
ment 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.". 
42 use 6241 
(b) REGULATIONS.— 
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 Organiza-
tion Act (42 U.S.C. 7191). 
42 use 6241 
(c) EFFECTIVE DATE.—^The amendment made by subsection (a) 
iM>te- 
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 sub-
section (b). 
SEC. 
1
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INDIAN 
ENERGY 
RESOURCE 
DEVELOPMENT. 
Section 2603 of the Energy PoHcy 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". 
PUBLIC LAW 105-388—NOV. 13, 1998 
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-l) 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. 
r i ; 
Oct. 15, House concurred in Senate amendment.