text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Tapping America's Energy Potential 
  through Research and Development Act of 2012''.
  
  SEC. 2. ACTIVITIES.
  
      The Secretary, acting through the Assistant Secretary, shall carry 
  out under this Act research, development, and demonstration activities 
  of technologies that increase energy security and affordability by 
  enabling the safe and responsible production of the vast domestic 
  unconventional oil and gas resources of the United States. In carrying 
  out the activities, the Secretary may conduct research and shall 
  provide grants, cooperative agreements, contracts, or other assistance 
  through a competitive selection process to eligible entities.
  
  SEC. 3. OIL SHALE RESEARCH AND DEVELOPMENT ACTIVITIES.
  
      (a) In General.--The Secretary, acting through the Assistant 
  Secretary, shall carry out research, development, and demonstration 
  activities to facilitate commercial application of energy technologies 
  related to the exploration, development, and production of oil shale 
  resources.
      (b) Objectives.--The objectives of such activities shall be--
              (1) to address scientific and technological barriers to 
          enable economically feasible production of oil shale; and
              (2) to minimize potential associated environmental impacts.
      (c) Implementation Plan.--
              (1) In general.--Not later than 9 months after the date of 
          enactment of this Act, the Secretary shall transmit to the 
          Committee on Science, Space, and Technology of the House of 
          Representatives and the Committee on Energy and Natural 
          Resources of the Senate a program implementation plan that--
                      (A) details constraints and opportunities affecting 
                  oil shale development;
                      (B) identifies strategies to enable such 
                  development; and
                      (C) identifies and prioritizes research, 
                  development, and demonstration activities necessary to 
                  advance program objectives.
              (2) Consultation.--The Assistant Secretary shall consult 
          with a broad range of stakeholders in the development and 
          implementation of the plan.
      (d) Activities.--The Assistant Secretary may conduct research and 
  shall make awards to eligible entities for research, development, and 
  demonstration activities in areas that include the following:
              (1) Oil shale resource characterization.
              (2) Modeling and simulation of oil shale exploration and 
          production technologies, including--
                      (A) advanced diagnostics and imaging systems; and
                      (B) advanced computing applied to the physics and 
                  chemistry of oil shale production.
              (3) Minimization and re-use of water, including--
                      (A) benchmarking of current water use rates for 
                  multiple production methods;
                      (B) potential reduction in water volume needed for 
                  operations; and
                      (C) recovery, utilization, reduction, and improved 
                  management of produced water from exploration and 
                  production activities.
              (4) Efficient use of energy in exploration and production 
          activities.
              (5) Utilization of exploration and production methods and 
          materials that reduce the potential impact of such activities 
          on the environment, including improved production methods for 
          in-situ mining and ex-situ mining.
      (e) Activity Update.--Not later than 3 years after the date of 
  enactment of this Act, the Secretary shall transmit to the Committee on 
  Science, Space, and Technology of the House of Representatives and the 
  Committee on Energy and Natural Resources of the Senate a report on the 
  progress of the activities under this section.
      (f) Authorization of Appropriations.--There are authorized to be 
  appropriated to the Assistant Secretary to carry out the activities of 
  this section $10,000,000 for each of fiscal years 2013 through 2017.
  
  SEC. 4. SHALE EXTRACTION RESEARCH AND DEVELOPMENT ACTIVITIES.
  
      (a) In General.--The Secretary, acting through the Assistant 
  Secretary, shall carry out research, development, and demonstration 
  activities to facilitate commercial application of energy technologies 
  related to the exploration, development, and production of oil, natural 
  gas, and other liquid resources from shale formations.
      (b) Objectives.--The objectives of such activities shall be--
              (1) to maximize the benefits of the United States shale oil 
          and natural gas resources by advancing safe and responsible 
          exploration, development, and production of these resources;
              (2) to minimize surface impacts from activities related to 
          shale oil and natural gas production;
              (3) to focus on areas that provide benefits to the public 
          and to industry; and
              (4) to advance the scientific and technological foundation 
          available to producers, Federal and State Government agencies, 
          and other stakeholders in identified research areas.
      (c) Activities.--The Assistant Secretary may conduct research and 
  shall make awards to eligible entities for research, development, and 
  demonstration activities in areas that include the following:
              (1) Water use and demand, which may include--
                      (A) potential reduction in the volume of water 
                  utilized for shale oil and natural gas production; and
                      (B) alternative materials, substances, or 
                  ingredients for use in shale oil and natural gas 
                  operations that could mitigate the need for or volume 
                  of water used.
              (2) Water sourcing, which may include--
                      (A) expanding options for sources of water used in 
                  shale oil and natural gas operations; and
                      (B) alternatives to groundwater or freshwater, such 
                  as water recovered from industrial or agricultural 
                  operations, brackish water, or surface water unsuitable 
                  for human or agricultural use, in areas with water 
                  supply concerns.
              (3) Materials used in shale oil and natural gas operations, 
          which may include--
                      (A) increasing the efficiency of shale oil and 
                  natural gas operations by minimizing fluid use;
                      (B) improving the understanding of the relationship 
                  between additives used in fracturing and the chemical 
                  and physical properties of different shale formations; 
                  and
                      (C) enhancing permeability through improved 
                  proppants and other materials.
              (4) Diagnostic imaging and monitoring, which may include--
                      (A) increasing understanding of the propagation of 
                  fractures within target zones; and
                      (B) advancing fundamental technologies that enable 
                  improved tracking and enhanced understanding of 
                  fracture movements.
      (d) Authorization of Appropriations.--There are authorized to be 
  appropriated to the Assistant Secretary to carry out the activities of 
  this section $12,000,000 for each of fiscal years 2013 through 2015.
  
  SEC. 5. PRODUCED WATER UTILIZATION RESEARCH AND DEVELOPMENT ACTIVITIES.
  
      (a) In General.--The Secretary, acting through the Assistant 
  Secretary, shall carry out research, development, and demonstration 
  activities to facilitate commercial application of energy technologies 
  for environmentally sustainable utilization of produced water for 
  agricultural, irrigational, recreational, power generation, municipal, 
  and industrial uses, or other environmentally sustainable purposes.
      (b) Activities.--The Assistant Secretary may conduct research and 
  shall make awards to eligible entities for research, development, and 
  demonstration activities, including improving safety and minimizing 
  environmental impacts of activities, in areas that include the 
  following:
              (1) Produced water recovery, including research for 
          desalination and demineralization to reduce total dissolved 
          solids in the produced water.
              (2) Produced water utilization for agricultural, 
          irrigational, recreational, power generation, municipal, and 
          industrial uses, or other environmentally sustainable purposes.
              (3) Re-injection of produced water into subsurface 
          geological formations to increase energy production.
      (c) Authorization of Appropriations.--There are authorized to be 
  appropriated to the Assistant Secretary to carry out the activities of 
  this section $5,000,000 for each of fiscal years 2013 through 2017.
  
  SEC. 6. ELIGIBLE ENTITIES.
  
      To be eligible for a grant, cooperative agreement, contract, or 
  other assistance under this Act, an applicant shall be--
              (1) an institution of higher education;
              (2) a National laboratory;
              (3) a private sector entity;
              (4) a nonprofit organization; or
              (5) a consortium of two or more entities described in 
          paragraphs (1) through (4).
  
  SEC. 7. ADMINISTRATION.
  
      In carrying out the activities under this Act, the Secretary may 
  enter into an agreement with a consortium whose members have 
  collectively demonstrated capabilities and experience in planning and 
  managing research, development, demonstration, and commercial 
  application programs for unconventional natural gas and other petroleum 
  production and produced water utilization.
  
  SEC. 8. COORDINATION.
  
      To the maximum extent practicable, the Secretary shall ensure that 
  the activities under this Act are coordinated with, and do not 
  duplicate the efforts of, programs at the Department of Energy and 
  other Government agencies.
  
  SEC. 9. COST SHARING.
  
      All activities authorized by this Act shall adhere to the cost 
  sharing guidelines established by section 988 of the Energy Policy Act 
  of 2005 (42 U.S.C. 16352).
  
  SEC. 10. LIMITATIONS.
  
      (a) In General.--All research, development, demonstration, and 
  commercial application activities authorized by this Act shall be 
  limited to technology areas that industry by itself is not likely to 
  undertake because of technical and financial uncertainty.
      (b) Effect on Regulation.--Nothing in this Act creates any new 
  authority for any Federal agency, or may be used by any Federal agency, 
  to support the establishment of regulatory standards or regulatory 
  requirements.
  
  SEC. 11. DEFINITIONS.
  
      In this Act:
              (1) Assistant secretary.--The term ``Assistant Secretary'' 
          means the Assistant Secretary of Energy for Fossil Energy.
              (2) Institution of higher education.--The term 
          ``institution of higher education'' has the meaning given such 
          term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 
          15801).
              (3) National laboratory.--The term ``National laboratory'' 
          has the meaning given such term in section 2 of the Energy 
          Policy Act of 2005 (42 U.S.C. 15801).
              (4) Oil shale.--The term ``oil shale'' means the geologic 
          deposits in which the petroleum component kerogen has not fully 
          transformed into oil or gas.
              (5) Produced water.--The term ``produced water'' means 
          water from an underground source that is brought to the surface 
          as a part of the process of exploration for or development of 
          coalbed methane, oil, natural gas, or any other substance to be 
          used as an energy source.
              (6) Secretary.--The term ``Secretary'' means the Secretary 
          of Energy.
              (7) Shale oil and natural gas.--The term ``shale oil and 
          natural gas'' means oil, natural gas, and other liquid 
          resources produced from shale formations.
target: Tapping America's Energy Potential through Research and Development Act of 2012 - Directs the Secretary of Energy (Secretary), acting through the Assistant Secretary of Energy for Fossil Energy, to implement research, development, and demonstration (R&D) activities of technologies to: (1) enable safe and responsible production of domestic unconventional oil and gas resources; (2) facilitate commercial application of energy technologies for the exploration, development, and production of oil shale resources including oil, natural gas, and other liquid resources from shale formations; and (3) use produced water, in an environmentally sustainable manner, for agricultural, irrigational, recreational, power generation, municipal, and industrial purposes.
  
  Requires oil shale R&D activities to include: (1) oil shale resource characterization, (2) modeling and simulation of oil shale exploration and production technologies, and (3) minimization and re-use of water.
  
  Requires shale extraction R&D activities to include: (1) water use and demand, (2) water sourcing, (3) materials used in shale oil and natural gas operations, and (4) diagnostic imaging and monitoring.
  
  Includes among produced water utilization R&D activities: (1) produced water recovery, (2) use of produced water for specified environmentally sustainable purposes, and (3) re-injection of produced water into subsurface geological formations to increase energy production.
  
  Limits such activities to technology areas that industry by itself is not likely to undertake because of technical and financial uncertainty.
feat_title: To authorize research, development, and demonstration activities that increase energy security and affordability by enabling the safe and responsible production of the United States vast domestic unconventional oil and gas resources.