National Oilheat Research Alliance Reauthorization Act of 2011

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.