To amend the Clean Air Act with respect to the sulfur fuel content of heating oil.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Heating Oil Act of 2012''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The Energy Information Administration estimates that 
        3.93 billion gallons of heating oil were consumed in the United 
        States in 2010, representing 7.2 percent of total demand for 
        distillate oil in the United States.
            (2) Currently, the sulfur content of heating oil is the 
        only chemical difference between heating oil and highway diesel 
        fuel. However, the State of New York will require the same 
        sulfur content for heating oil as onroad and offroad diesel 
        fuel beginning on July 1, 2012.
            (3) Since 2010, the Environmental Protection Agency has 
        limited the sulfur content of highway and most nonroad diesel 
        fuel to no more than 15 parts per million.
            (4) The Northeast States for Coordinated Air Use Management 
        estimates that heating oil represents 54 percent of total 
        demand for heating oil and diesel fuel in the Northeast and is 
        the second largest source of sulfur dioxide emissions.
            (5) The Energy Information Administration estimates that 
        the United States exported 8.65 billion gallons of diesel fuel 
        with a sulfur content of less than 15 parts per million in 
        2011.
            (6) The Environmental Protection Agency concluded in a 2008 
        report that reducing sulfur dioxide exposure yields numerous 
        health benefits.
            (7) The Northeast States for Coordinated Air Use Management 
        estimates that reducing the sulfur content in heating oil will 
        eliminate 167,000 tons of sulfur dioxide emissions, and provide 
        substantial benefits to the health and well-being of the people 
        of the United States.
            (8) The Environmental Protection Agency has authority under 
        section 111 of the Clean Air Act (42 U.S.C. 7411) to limit the 
        sulfur content of heating oil used in stationary sources.
            (9) The Brookhaven National Laboratory estimates that 
        reducing the sulfur content of heating oil will improve overall 
        heating system efficiency and longevity, and save as much as 
        $200 million per year in system maintenance costs.

SEC. 3. SULFUR CONTENT OF HEATING OIL.

    (a) Amendment.--Part A of title I of the Clean Air Act (42 U.S.C. 
7401 et seq.) is amended by adding at the end the following:

``SEC. 132. SULFUR CONTENT OF HEATING OIL.

    ``(a) Heating Oil Defined.--In this section, the term `heating oil' 
means any number 1 distillate, number 2 dyed distillate, or non-
petroleum diesel blend that--
            ``(1) is sold for use in furnaces, boilers, stationary 
        diesel engines, or similar applications; and
            ``(2) is commonly or commercially known or sold as heating 
        oil or fuel oil or using a similar trade name.
    ``(b) Requirement.--
            ``(1) In general.--Effective June 1, 2016, no person shall 
        manufacture, sell, supply, offer for sale or supply, dispense, 
        transport, or introduce into commerce heating oil which 
        contains a concentration of sulfur in excess of--
                    ``(A) 15 parts per million; or
                    ``(B) a lesser concentration established under 
                subsection (c).
            ``(2) Early use credits.--
                    ``(A) In general.--The Administrator may, by 
                regulation, provide for the issuance of credits to 
                refiners and importers for amounts of heating oil 
                manufactured or imported before June 1, 2016, in 
                accordance with the limitation described in paragraph 
                (1).
                    ``(B) Use; transfer.--Any regulations promulgated 
                under subparagraph (A) shall provide that a refiner or 
                importer who is issued credits may use such credits, or 
                transfer all or a portion of such credits to another 
                refiner or importer for use, for the purpose of 
                complying with this subsection.
                    ``(C) Limitation.--Any credit issued under this 
                paragraph shall expire on June 1, 2019, and may not be 
                used to comply with this subsection on or after such 
                date.
    ``(c) Authority To Require Lesser Concentration.--
            ``(1) Authority.--Subject to paragraph (2), the 
        Administrator may by regulation reduce the concentration of 
        sulfur in heating oil permissible under subsection (b) to the 
        extent necessary to ensure that such concentration is not 
        reasonably anticipated to endanger the public health or 
        welfare.
            ``(2) Limitation.--Paragraph (1) does not authorize the 
        Administrator to reduce the concentration of sulfur in heating 
        oil permissible under subsection (b) to any concentration lower 
        than the concentration of sulfur in diesel fuel permissible 
        under section 211.
    ``(d) Waiver Authority.--
            ``(1) In general.--The Administrator may temporarily waive 
        the requirements of this section in whole or in part if, after 
        consultation with, and concurrence by, the Secretary of Energy, 
        the Administrator determines that, with respect to heating oil, 
        the criteria listed in subclauses (I) through (III) of section 
        211(c)(4)(C)(ii) are met.
            ``(2) Limitation and requirements.--Any waiver under 
        paragraph (1) shall be subject to the limitations and 
        requirements applicable to waivers under subclauses (I) through 
        (V) of section 211(c)(4)(C)(iii). For purposes of the preceding 
        sentence, the reference in section 211(c)(4)(C)(iii)(IV) to the 
        motor fuel distribution system is deemed to refer to the 
        heating oil distribution system.
    ``(e) Heating Oil Manufactured by Small Refineries.--The 
Administrator may waive one or more requirements of this section with 
respect to any heating oil manufactured by a small refinery (as defined 
in section 211(o)(1)(K)). The period of a waiver under this subsection 
shall terminate not later than June 1, 2019.
    ``(f) Penalties and Injunctions.--The provisions of section 211(d) 
shall apply to a violation of this section or the regulations 
thereunder to the same extent and in the same manner as such provisions 
apply to a violation of section 211(i) or the regulations 
thereunder.''.
    (b) Regulations.--Not later than 24 months after the date of the 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall issue a final regulation to implement and 
enforce section 132 of the Clean Air Act, as added by subsection (a).

Summary: Clean Heating Oil Act of 2012 - Amends the Clean Air Act to prohibit, effective June 1, 2016, any person from manufacturing, selling, supplying, offering for sale or supply, dispensing, transporting, or introducing into commerce heating oil which contains a concentration of sulfur in excess of: (1) 15 parts per million, or (2) a lesser concentration that may be established by the Administrator of the Environmental Protection Agency (EPA) (but not below the concentration of sulfur in diesel fuel permissible under renewable fuel standards) to ensure that such concentration is not reasonably anticipated to endanger the public health or welfare.

Allows the Administrator to: (1) provide for the issuance of credits to refiners and importers for amounts of heating oil manufactured or imported before June 1, 2016, in accordance with such limitation; and (2) allow a refiner or importer to use such credits, or transfer such credits to another refiner or importer for use, for the purpose of complying with this Act. Terminates such credits on June 1, 2019.

Defines "heating oil" to mean any number 1 distillate, number 2 dyed distillate, or non-petroleum diesel blend that is: (1) sold for use in furnaces, boilers, stationary diesel engines, or similar applications; and (2) commonly or commercially known or sold as heating oil or fuel oil or using a similar trade name.

Allows the Administrator to: (1) temporarily waive the requirements of this Act if the Administrator determines, and the Secretary of Energy (DOE) concurs, that the criteria for fuels and fuel additives is met with respect to heating oil; and (2) waive requirements of this Act with respect to any heating oil manufactured by a small refinery until June 1, 2019.

 Applies penalty and injunction provisions for violations of fuel regulations under the Clean Air Act to violations of this Act.