in ways that will not adversely affect water 
quality or the environment. 
(c) PURPOSES.—The purposes of this Act are— 
(1) to optimize the production of energy re-
sources— 
(A) by minimizing the quantity of produced 
water; and 
(B) by facilitating the use of produced 
water for irrigation and other purposes without 
adversely affecting water quality or the environ-
ment; and 
(2) to demonstrate means of accomplishing those 
results. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) LOWER
BASIN
STATE.—The term ‘‘Lower 
Basin State’’ means any of the States of— 
(A) Arizona; 
(B) California; and 
(C) Nevada. 
(2) PRODUCED
WATER.—The term ‘‘produced 
water’’ means water from an underground source that 
is brought to the surface as part of the process of ex-
ploration for, or development of— 
(A) oil; 
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(B) natural gas; 
(C) coalbed methane; or 
(D) any other substance to be used as an 
energy source. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(4) UPPER
BASIN
STATE.—The term ‘‘Upper 
Basin State’’ means any of the States of— 
(A) Colorado; 
(B) New Mexico; 
(C) Utah; and 
(D) Wyoming. 
SEC. 3. IDENTIFICATION OF PROBLEMS AND SOLUTIONS. 
(a) STUDY.—The Secretary shall conduct a study to 
identify— 
(1) the technical, economic, environmental, and 
other obstacles to reducing the quantity of produced 
water; 
(2) the technical, economic, environmental, legal, 
and other obstacles to increasing the extent to which 
produced water can be used for irrigation and other 
purposes without adversely affecting water quality or 
the environment; 
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(3) the legislative, administrative, and other ac-
tions that could reduce or eliminate the obstacles 
identified in paragraphs (1) and (2); and 
(4) the costs and benefits associated with reduc-
ing or eliminating the obstacles identified in para-
graphs (1) and (2). 
(b) REPORT.—Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to the 
Committee on Natural Resources of the House of Represent-
atives and the Committee on Energy and Natural Resources 
of the Senate a report describing the results of the study 
under subsection (a). 
SEC. 4. IMPLEMENTATION. 
(a) GRANTS.—Subject to the availability of appropria-
tions, the Secretary shall provide financial assistance for 
the development of facilities, technologies, and processes to 
demonstrate the feasibility, effectiveness, and safety of— 
(1) optimizing energy resource production by re-
ducing the quantity of produced water generated; or 
(2) increasing the extent to which produced 
water may be recovered and made suitable for use for 
irrigation, municipal, or industrial uses, or other 
purposes without adversely affecting water quality or 
the environment. 
(b) LIMITATIONS.—Assistance under this section— 
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(1) shall be provided for— 
(A) at least 1 project in each of the Upper 
Basin States; and 
(B) at least 1 project in at least 1 of the 
Lower Basin States; 
(2) shall not exceed $1,000,000 for any project; 
(3) shall be used to pay not more than 50 per-
cent of the total cost of a project; 
(4) shall not be used for the operation or mainte-
nance of any facility; and 
(5) may be in addition to assistance provided by 
the Federal Government pursuant to other provisions 
of law. 
SEC. 5. CONSULTATION, ADVICE, AND COMMENTS. 
In carrying out this Act, including in preparing the 
report under section 3(b) and establishing criteria to be 
used in connection with an award of financial assistance 
under section 4, the Secretary shall— 
(1) consult with the Secretary of Energy, the Ad-
ministrator of the Environmental Protection Agency, 
and appropriate Governors and local officials; 
(2)(A) review any relevant information devel-
oped in connection with research carried out by oth-
ers, including research carried out pursuant to sub-
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title J of title IX of the Energy Policy Act of 2005 
(42 U.S.C. 16371 et seq.); and 
(B) to the extent the Secretary determines to be 
advisable, include that information in the report 
under section 3(b); 
(3) seek the advice of— 
(A) individuals with relevant professional 
or academic expertise; and 
(B) individuals or representatives of entities 
with industrial experience, particularly experi-
ence relating to production of oil, natural gas, 
coalbed methane, or other energy resources (in-
cluding geothermal resources); and 
(4) solicit comments and suggestions from the 
public. 
SEC. 6. RELATION TO OTHER LAWS. 
Nothing in this Act supersedes, modifies, abrogates, or 
limits— 
(1) the effect of any State law or any interstate 
authority or compact relating to— 
(A) any use of water; or 
(B) the regulation of water quantity or 
quality; or 
(2) the applicability or effect of any Federal law 
(including regulations). 
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SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated— 
(1) $1,000,000 to carry out section 3; and 
(2) $7,500,000 to carry out section 4. 
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Calendar No. 256 
110TH CONGRESS 
1ST SESSION 
H. R. 902 
[Report No. 110–122] 
AN ACT 
To facilitate the use for irrigation and other pur-
poses of water produced in connection with devel-
opment of energy resources. 
JUNE 28, 2007 
Reported with an amendment 
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