(A) advanced diagnostics and imaging sys-
tems; and 
(B) advanced computing applied to the 
physics and chemistry of oil shale production. 
(3) Minimization and re-use of water, includ-
ing— 
(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 im-
proved management of produced water from ex-
ploration 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 im-
pact 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 Tech-
nology of the House of Representatives and the Committee 
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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 Sec-
retary 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 DEVELOP-
MENT ACTIVITIES. 
(a) IN GENERAL.—The Secretary, acting through the 
Assistant Secretary, shall carry out research, development, 
and demonstration activities to facilitate commercial appli-
cation 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 ad-
vancing safe and responsible exploration, develop-
ment, 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 
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(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 con-
duct 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 in-
clude— 
(A) potential reduction in the volume of 
water utilized for shale oil and natural gas pro-
duction; 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 fresh-
water, such as water recovered from industrial 
or agricultural operations, brackish water, or 
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surface water unsuitable for human or agricul-
tural 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 re-
lationship between additives used in fracturing 
and the chemical and physical properties of dif-
ferent shale formations; and 
(C) enhancing permeability through im-
proved proppants and other materials. 
(4) Diagnostic imaging and monitoring, which 
may include— 
(A) increasing understanding of the propa-
gation 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 Sec-
retary to carry out the activities of this section 
$12,000,000 for each of fiscal years 2013 through 2015. 
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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 appli-
cation of energy technologies for environmentally sustain-
able 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 con-
duct 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, munic-
ipal, and industrial uses, or other environmentally 
sustainable purposes. 
(3) Re-injection of produced water into sub-
surface geological formations to increase energy pro-
duction. 
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(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Assistant Sec-
retary 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 de-
scribed in paragraphs (1) through (4). 
SEC. 7. ADMINISTRATION. 
In carrying out the activities under this Act, the Sec-
retary may enter into an agreement with a consortium 
whose members have collectively demonstrated capabilities 
and experience in planning and managing research, devel-
opment, demonstration, and commercial application pro-
grams 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 coordi-
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nated with, and do not duplicate the efforts of, programs 
at the Department of Energy and other Government agen-
cies. 
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, dem-
onstration, and commercial application activities author-
ized 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 establish-
ment of regulatory standards or regulatory requirements. 
SEC. 11. DEFINITIONS. 
In this Act: 
(1) ASSISTANT SECRETARY.—The term ‘‘Assist-
ant Secretary’’ means the Assistant Secretary of En-
ergy for Fossil Energy. 
(2) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
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meaning given such term in section 2 of the Energy 
Policy Act of 2005 (42 U.S.C. 15801). 
(3) NATIONAL LABORATORY.—The term ‘‘Na-
tional 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 compo-
nent 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 proc-
ess 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 for-
mations. 
Æ 
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