To reauthorize the National Oilheat Research Alliance, and for other purposes.

Summary: National Oilheat Research Alliance Reauthorization Act of 2011 - Amends the National Oilheat Research Alliance Act of 2000 to adjust its focus upon oilheat to a focus upon oilheat fuel, a distillate liquid or a biobased liquid used as a fuel for nonindustrial commercial or residential space or hot water heating.

Revises the membership of the National Oilheat Research Alliance.

Expands the functions of the Alliance to include: (1) providing the cost of installing appliances in low-income households; and (2) prioritizing research, development, and demonstration projects that enhance efficiency through the use of biobased liquids and advanced biofuels.

Requires the Alliance to: (1) contract with a qualified accounting firm to develop procedures to ensure statutory compliance; and (2) include in its annual report a detailed account of the amounts spent by each qualified state association that received funds on training, research, development, and demonstration, safety, and consumer education.

Revises assessment requirements. States that the assessment rate for calendar years 2012 and 2013 shall be equal to two-tenths of 1% per gallon of oilheat fuel (currently, No. 1 distillate and No. 2 dyed distillate).

Requires the annual assessment rate, beginning with calendar year 2014, to be sufficient to cover the costs of the plans and programs developed by the Alliance.

Sets forth: (1) a maximum assessment rate; and (2) limitations on any assessment increase. Prohibits any increase in the assessment rate unless the Alliance has, by a specified deadline, notified certain congressional committees.

Prohibits: (1) the Alliance from providing funds in response to a request from state, local, or regional programs unless it determines that the funds will be used to benefit consumers of oilheat fuel (instead of the oilheat industry); (2) certain lobbying activities; and (3) any consumer education activity from including a direct reference to a competing product if it is funded from Alliance assessments.

Requires Alliance research activities to: (1) include development of renewable fuels, and (2) examine the compatibility of different renewable fuels with oilheat fuel utilization equipment, giving priority to advanced biofuels research.

Requires the Alliance to: (1) report to state leaders, the Administrator of the Environmental Protection Agency (EPA) and to Congress on the use of biofuels in oilheat fuel utilization equipment; and (2) develop consumer education materials describing the benefits of using biofuels as, or in, oilheat fuel.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Oilheat Research Alliance 
Reauthorization Act of 2011''.

SEC. 2. AMENDMENTS.

    (a) Findings.--Section 702 of the National Oilheat Research 
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is 
amended by striking ``oilheat'' each place it appears and inserting 
``oilheat fuel''.
    (b) Definitions.--Section 703 of the National Oilheat Research 
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is 
amended--
            (1) by striking ``oilheat'' each place it appears (other 
        than paragraph (10)) and inserting ``oilheat fuel'';
            (2) in paragraph (2), by inserting ``, including 
        information on energy conservation strategies, safety, new 
        technologies that reduce consumption or improve safety, and 
        State, local, or Federal programs designed to assist oilheat 
        fuel consumers'' after ``hot water heating fuels'';
            (3) by striking paragraph (7) and inserting the following:
            ``(7) Oilheat fuel.--The term `oilheat fuel' means fuel 
        that--
                    ``(A) is--
                            ``(i) No. 1 distillate;
                            ``(ii) No. 2 dyed distillate;
                            ``(iii) a liquid blended with No. 1 
                        distillate or No. 2 dyed distillate; or
                            ``(iv) a biobased liquid; and
                    ``(B) is used as a fuel for nonindustrial 
                commercial or residential space or hot water 
                heating.'';
            (4) in the heading for paragraph (8), by striking 
        ``Oilheat'' and inserting ``Oilheat fuel'';
            (5) in paragraph (14)--
                    (A) by striking ``No. 1 distillate or No. 2 dyed 
                distillate'' each place it appears and inserting 
                ``oilheat fuel''; and
                    (B) in subparagraph (B), by striking ``sells the 
                distillate'' and inserting ``sells the oilheat fuel''; 
                and
            (6) by redesignating paragraphs (14) and (15) as paragraphs 
        (15) and (14), respectively, and moving paragraph (15) (as so 
        redesignated) to appear after paragraph (14).
    (c) Referenda.--Section 704 of the National Oilheat Research 
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is 
amended--
            (1) by striking ``oilheat'' each place it appears and 
        inserting ``oilheat fuel'';
            (2) by striking ``No. 1 distillate and No. 2 dyed 
        distillate'' each place it appears in subsections (a) and (c) 
        and inserting ``oilheat fuel'';
            (3) in subsection (a)--
                    (A) in paragraph (5)(B), by striking ``Except as 
                provided in subsection (b), the'' and inserting 
                ``The''; and
                    (B) in paragraph (6), by striking ``, No. 1 
                distillate, or No. 2 dyed distillate'';
            (4) in subsection (b), by striking ``under'' and inserting 
        ``consistent with''; and
            (5) in the heading for subsection (d), by striking 
        ``Oilheat'' and inserting ``Oilheat Fuel''.
    (d) Membership.--Section 705 of the National Oilheat Research 
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is 
amended--
            (1) by striking ``oilheat'' each place it appears and 
        inserting ``oilheat fuel'';
            (2) in subsection (b)(2), by striking ``No. 1 distillate 
        and No. 2 dyed distillate'' and inserting ``oilheat fuel''; and
            (3) by striking subsection (c) and inserting the following:
    ``(c) Number of Members.--
            ``(1) In general.--The membership of the Alliance shall be 
        as follows:
                    ``(A) One member representing each State 
                participating in the Alliance.
                    ``(B) Five representatives of retail marketers, of 
                whom 1 shall be selected by each of the qualified State 
                associations of the 5 States with the highest volume of 
                annual oilheat fuel sales.
                    ``(C) Five additional representatives of retail 
                marketers.
                    ``(D) Twenty-one representatives of wholesale 
                distributors.
                    ``(E) Six public members, who shall be 
                representatives of significant users of oilheat fuel, 
                the oilheat fuel research community, State energy 
                officials, or other groups with expertise in oilheat 
                fuel.
            ``(2) Full-time owners or employees.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), other than the public members of the 
                Alliance, Alliance members shall be full-time 
                managerial owners or employees of members of the 
                oilheat fuel industry.
                    ``(B) Employees.--Members described in 
                subparagraphs (B), (C), and (D) of paragraph (1) may be 
                employees of the qualified industry organization or an 
                industry trade association.''.
    (e) Functions.--Section 706 of the National Oilheat Research 
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is 
amended--
            (1) by striking ``oilheat'' each place it appears and 
        inserting ``oilheat fuel'';
            (2) in subsection (a)(1)(A)(ii), by inserting ``, including 
        providing the cost of installing appliances in low-income 
        households'' after ``utilization equipment'';
            (3) in subsection (a), by adding at the end the following 
        new paragraph:
            ``(4) Training and research and development as a 
        priority.--Of the assessments collected by the Association 
        pursuant to section 707, not less than 40 percent shall be 
        devoted to a category of outlays comprised of training projects 
        and research, development, and demonstration projects, with a 
        priority on research, development, and demonstration projects 
        that would enhance efficiency through the use of biobased 
        liquids. Training and research under this paragraph shall 
        include the development and demonstration of advanced 
        biofuels.'';
            (4) in the heading for subsection (c)(2), by striking 
        ``oilheat'' and inserting ``oilheat fuel'';
            (5) by redesignating paragraph (4) of subsection (e) as 
        paragraph (5);
            (6) by inserting after subsection (e)(3) the following new 
        paragraph:
            ``(4) Response to recommendations.--If the Secretary makes 
        recommendations under paragraph (3), the Alliance shall, before 
        implementation of the budget with respect to which the 
        recommendations pertain, provide to the Secretary and the 
        Congress a report describing the Alliance's response to the 
        recommendations.'';
            (7) by amending subsection (f)(2)(C) to read as follows:
                    ``(C) Procedures to ensure compliance.--The 
                Alliance shall contract with a qualified accounting 
                firm to develop procedures to ensure compliance with 
                the Act. The Alliance shall contract on a yearly basis 
                with a qualified accounting firm to evaluate whether 
                such procedures have been followed. Such evaluation 
                shall be included in the annual report required under 
                subsection (h) and shall be furnished to Congress and 
                to the Secretary of Energy.''; and
            (8) in subsection (h)--
                    (A) by striking ``and'' at the end of paragraph 
                (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) provides a detailed account of the amounts spent by 
        each qualified State association that received funds pursuant 
        to subsection (e) on training, research, development, and 
        demonstration, safety, and consumer education.''.
    (f) Assessments.--Section 707 of the National Oilheat Research 
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is 
amended--
            (1) by striking ``oilheat'' each place it appears and 
        inserting ``oilheat fuel'';
            (2) by striking subsection (a) and inserting the following:
    ``(a) Rate.--
            ``(1) In general.--The assessment rate for calendar years 
        2012 and 2013 shall be equal to \2/10\ of 1 cent per gallon of 
        oilheat fuel.
            ``(2) Subsequent assessments.--Subject to paragraphs (3) 
        and (4), beginning with calendar year 2014, the annual 
        assessment rate shall be sufficient to cover the costs of the 
        plans and programs developed by the Alliance.
            ``(3) Limitations on increase.--
                    ``(A) In general.--The annual assessment shall not 
                exceed \1/2\ of 1 cent per gallon of oilheat fuel.
                    ``(B) Limitation.--The annual assessment may not 
                change by more than \1/10\ of 1 cent per gallon of 
                oilheat fuel in any 12 month-period.
                    ``(C) Approval.--No increase in the assessment may 
                occur unless--
                            ``(i) the increase is approved by \3/4\ of 
                        the members voting at a regularly scheduled 
                        meeting of the Alliance; and
                            ``(ii) at least 90 days before the date of 
                        the meeting of the Alliance, the Alliance 
                        provides notice of the proposed increase to the 
                        Committee on Energy and Natural Resources of 
                        the Senate and the Committee on Energy and 
                        Commerce of the House of Representatives.
                    ``(D) Notice.--The Alliance shall provide notice of 
                a change in assessment at least 90 days before the date 
                on which the change is to take effect.'';
            (3) in subsections (b)(1) and (c), by striking ``No. 1 
        distillate and No. 2 dyed distillate'' each place it appears 
        and inserting ``oilheat fuel'';
            (4) in subsection (b)--
                    (A) by striking ``No. 1 distillate or No. 2 dyed 
                distillate'' each place it appears and inserting 
                ``oilheat fuel''; and
                    (B) in paragraphs (2)(B) and (5)(B), by striking 
                ``fuel'' each place it appears and inserting ``oilheat 
                fuel'';
            (5) in the heading for subsection (c), by striking 
        ``Oilheat'' and inserting ``Oilheat Fuel''; and
            (6) in subsection (e)(2)(A)(ii)(III), by striking 
        ``directly benefit'' and all that follows through ``industry'' 
        and inserting ``consumers of oilheat fuel''.
    (g) Market Survey and Consumer Protection.--Section 708 of the 
National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; 
Public Law 106-469) is repealed.
    (h) Lobbying Prohibition.--Section 710 of the National Oilheat 
Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-469) 
is amended to read as follows:

``SEC. 710. LOBBYING PROHIBITION.

    ``No funds derived from assessments under section 707 collected by 
the Alliance shall be used directly or indirectly to influence Federal, 
State, or local legislation or elections, or the manner of execution of 
legislation, except that the Alliance may use such funds to provide 
information requested by a Member of Congress, or an official of any 
Federal, State, or local agency, in the course of the official business 
of such Member or official.''.
    (i) Violations.--Section 712(a) of the National Oilheat Research 
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is 
amended--
            (1) in paragraph (2), by striking ``oilheat'' and inserting 
        ``oilheat fuel''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) a direct reference to a competing product.''.
    (j) Extension.--Section 713 of the National Oilheat Research 
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is 
amended by striking ``9 years after the date on which the Alliance is 
established'' and inserting ``7 years after the date of enactment of 
the National Oilheat Research Alliance Reauthorization Act of 2011''.

SEC. 3. RENEWABLE FUEL CONTENT.

    (a) Renewable Fuel Research.--Section 706(a)(3)(B)(i)(I) of the 
National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; 
Public Law 106-469) is amended by inserting ``, including research to 
develop renewable fuels and to examine the compatibility of different 
renewable fuels with oilheat fuel utilization equipment, with priority 
given to research on the development and use of advanced biofuels'' 
after ``utilization equipment''.
    (b) Report.--The National Oilheat Research Alliance shall prepare a 
report no later than one year after date of enactment of this Act on 
the use of biofuels in oilheat fuel utilization equipment. This report 
shall provide information on the environmental benefits, economic 
benefits, and any technical limitations on the use of biofuels in 
oilheat fuel utilization equipment. It shall also describe market 
acceptance of the fuel, and information on State and local governments 
that are encouraging the use of these fuels in oilheat fuel utilization 
equipment. The Alliance shall provide this report to the Governor of 
each State, and other appropriate State leaders, where the Alliance is 
operating. Additionally, a copy of this report will be furnished to the 
Administrator of the Environmental Protection Agency and to the 
Congress.
    (c) Consumer Education Materials.--The Alliance shall develop 
consumer education materials in conjunction with an institution or 
organization engaged in biofuels research describing the benefits of 
using biofuels as or in oilheat fuel based on the technical information 
developed pursuant to subsection (b), as well as other information 
generally available.