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Q: 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).
A:
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.