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RECOMMENDATIONS FOR THE NEW POLICY BRIEFS ADMINISTRATION These policy briefs outline a series of recommendations from the Baker Institute for the incoming president’s administration. RECOMMENDATIONS FOR THE NEW POLICY BRIEF ADMINISTRATION Five Major Challenges to the Beneficial Use of Non- Fresh Water, Including Oil- and Gas-Produced Water Linda Capuano, Ph.D., Fellow in Energy Technology Anna Mikulska, Ph.D., Nonresident Scholar in Energy Studies Unconventional shale oil and natural the nation’s total estimated water use of gas extraction are important elements 355 bgpd, produced water can represent of the U.S. energy revolution. Increased an important new water source, especially domestic production has improved energy for more arid states. State water plans are security while lower prices and more already beginning to include the use of affordable energy have supported industrial treated brackish and waste water. Treated expansion, created jobs, and fueled produced water would add to this supply and economic growth. Recent developments, further displace the use of fresh water, which however, have not been without would then be available for other purposes. challenges, two of which relate to water: The Center for Energy Studies (CES) has 1) the industry’s reliance on water as part actively engaged stakeholders, including of extraction by the method of hydraulic government, industry, and academia, in fracturing, and 2) the need to store, treat, this discussion. We have hosted workshops and/or dispose of the large amount of and conferences to clarify the challenges, “produced water” that is brought to the share successful practices, and overcome surface during production. At the same barriers in produced water treatment and time, many states are coming to realize use. As a result, CES has provided insights the potential for using produced water to to assist state and federal policymakers. There is the potential meet growing water demand rather than Most recently, we partnered with the for treated oil and injecting it into underground disposal wells. Ground Water Protection Council (GWPC), This brief describes five high priority Interstate Oil and Gas Compact Commission, natural gas produced challenges that must be overcome to and National Rural Water Association water and other non- accelerate the beneficial use of produced (NRWA) to organize a National Produced fresh water sources to and other non-fresh water sources. We also Water Forum hosted by Oklahoma governor augment water supplies believe there is an active role for federal Mary Fallin. CES has also facilitated and displace the use agencies, particularly the Department of discussions on produced water and state Energy and its laboratories, to assist local, water plans at the co-located September of fresh water, which state, regional, and other stakeholders as 2016 GWPC/NRWA Conference. would then be available they develop and adapt water policies and These discussions have convinced us for other purposes in practices to convert produced and other that broad collaborative action is necessary state water plans. non-fresh water supplies into a resource to overcome challenges and successfully that is included in state water plans. enable the beneficial use of non-fresh The volume of produced water in 2012 waters, especially produced water. CES also was approximately 2.4 billion gallons per believes that federal participation in the day (bgpd), of which 75% was produced in following five high-priority challenges is California, Kansas, Oklahoma, Texas, and essential in assisting local, state, regional, Wyoming. Although small compared with and other stakeholders as they develop and RICE UNIVERSITY’S BAKER INSTITUTE FOR PUBLIC POLICY // POLICY BRIEF adapt water policies and practices related National laboratories could also play to produced water and other non-fresh an important role in developing acceptable water supplies: water quality guidelines for different uses. • Standardize approaches to verify and These guidelines could help clarify the test new water analysis and treatment technical challenges of designing water technologies that are supported by treatments for specific applications, and impartial and objective guidelines. focus policy discussions on removing barriers and accelerating progress. This policy brief is • Develop comprehensive modeling methods to calculate and compare the In addition, by sharing its modeling part of a series of environmental impact, carbon intensity, expertise, DOE’s Energy Information recommendations risks, costs, and other characteristics of Administration and its national laboratories from the Baker using produced water when compared to could provide guidance in expanding other water sources, and collect the data GWPC, U.S. Geological Survey, DOE and Institute for the other databases to include water quality incoming president’s needed to support the models. • Clarify produced water ownership and quantity data, and intended use administration. and liability to encourage industry’s requirements. This would support advanced participation in treating and putting modeling to minimize environmental impact produced water to beneficial use. and the cost of storing, treating, transporting, • Communicate with and educate the public and using/disposing produced water. and other end-users about the potential DOE and its laboratories are also trusted benefits of using non-fresh water sources, educators who could assist in educating including produced water. potential end-users on the benefits of using • Create forums for centralized discussions non-fresh water sources; the importance to share successful regional practices of conservation and reuse; and the ability to treat non-fresh water so that it meets See more policy briefs at: in treating and using non-fresh water, www.bakerinstitute.org/policy-briefs including produced water. standards for oil and natural gas, agriculture, industrial and other sectors. This publication was written by a The Department of Energy has already taken Finally, current water policies and researcher (or researchers) who steps consistent with these measures. The regulations are often tailored to local participated in a Baker Institute project. Water-Energy Nexus crosscutting initiative conditions, which make them complex Wherever feasible, this research is and difficult to navigate. This presents an reviewed by outside experts before it is in the DOE’s FY2017 Budget Request released. However, the views expressed supports lower-carbon, lower-energy, and opportunity for the new administration to herein are those of the individual lower-cost water treatment technologies, leverage federal agencies as facilitating author(s), and do not necessarily such as advanced desalination techniques, leaders that engage local, state, and federal represent the views of Rice University’s to provide additional water supplies. We stakeholders in cross-region and interstate Baker Institute for Public Policy. believe, however, that the DOE should forums where policies and regulatory © 2016 Rice University’s Baker Institute increase emphasis on the five priority reforms are discussed and successful for Public Policy challenges above to help accelerate the practices shared, thereby accelerating beneficial use of non-fresh water, including and promoting the development of new This material may be quoted or produced water. water resources while ensuring appropriate reproduced without prior permission, For example, independent testing of environmental safeguards. provided appropriate credit is given to In summary, we encourage expansion the author and Rice University’s Baker water analysis and treatment methods by Institute for Public Policy. national laboratories could give industry and of the Water-Energy Nexus crosscutting municipalities confidence in the method’s initiative in the DOE’s FY2017 Budget Request Cite as: accuracy and reliability and thus accelerate to include more emphasis on the five high Capuano, Linda, and Anna Mikulska. adoption of uniform methods. Developing priority items above. We also encourage 2016. Five Major Challenges to the and adopting rapid test and analysis the DOE, EPA, USDA, the Bureau of Land Beneficial Use of Non-Fresh Water, Including Oil- and Gas-Produced techniques to quickly determine treatment Management, and other federal agencies to Water. Policy Brief: Recommendations requirements or intended uses of produced continue to cooperate and partner with local for the New Administration. Rice water will reduce the need for above- and state governments as well as industry, University’s Baker Institute for Public ground storage and the associated impact agriculture, academia, and water consumers Policy, Houston, Texas. on the environment. to enable the beneficial use of this new and much needed source of water. 2 RECOMMENDATIONS FOR THE NEW POLICY BRIEF ADMINISTRATION U.S. Energy Policy: Guidance for the Next Administration Kenneth B. Medlock, III, Ph.D., James A. Baker III and Susan G. Baker Fellow in Energy and Natural Resources, and Senior Director, Center for Energy Studies The last decade has unveiled significant nations—the Organisation for Economic change in global energy markets, with Co-operation and Development (OECD)— crude oil, natural gas, coal, and electricity played in shaping global energy demand markets all in the midst of transition. growth in the 20th century. According to Developments in the U.S. have served the International Energy Agency (IEA), the as a principal antagonist, with