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.

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.

Summary: 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 (RD) 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 RD 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 RD 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 RD 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.