Environmental Priorities Act of 1998

Environmental Priorities Act of 1998 - Makes this Act effective for a consumer sector in any State in the first year after all of a State's regulated and nonregulated electric utilities have established retail electric service choice for customers in such sector, but no earlier than 2001. Requires providers of retail electric services to contribute to the fiscal agent for the Environmental Priorities Board (established by this Act) ten percent of the total consumer savings for the consumer sector for that calendar year. Defines: (1) "consumer savings" as the amount by which the potential rate for electric energy provided to a consumer sector exceeds the current rate for the sector, multiplied by the sector's total consumption (in kilowatt-hours) during a calendar year; and (2) "potential rate" as the average kilowatt-hour rate paid by the provider's customers in that sector during the 12-month period preceding the date on which retail electric service choice was established, adjusted for inflation. Requires the Administrator of the Environmental Protection Agency to establish a National Environmental Priorities Board. Directs the Board to: (1) establish regulations governing creation of an Environmental Priorities Program, to include criteria and methods of selecting State projects to receive support; and (2) enter into arrangements with a non-federal fiscal agent to receive and disburse contributions described by this Act. Authorizes States in which retail electric service choice has been established for any consumer sector to establish public purpose programs and apply for matching funding to support environmental priorities programs. Requires the fiscal agent to distribute contributions to States to carry out such programs.