II 

109TH CONGRESS 

1ST SESSION S. 1016 

To direct the Secretary of Energy to make incentive payments to the owners 

or operators of qualified desalination facilities to partially offset the 

cost of electrical energy required to operate the facilities, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 12, 2005 

Mr. MARTINEZ introduced the following bill; which was read twice and 

referred to the Committee on Energy and Natural Resources 

A BILL 

To direct the Secretary of Energy to make incentive payments to the owners or operators of qualified desalination 

facilities to partially offset the cost of electrical energy 

required to operate the facilities, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Desalination Water 

5 Supply Shortage Prevention Act of 2005’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 
2 

•S 1016 IS

1 (1) QUALIFIED DESALINATION FACILITY.—The 

2 term ‘‘qualified desalination facility’’ means a facil3 ity that— 

4 (A) produces for sale to domestic cus5 tomers— 

6 (i) desalinated seawater; 

7 (ii) brackish groundwater; or 

8 (iii) surface water the source water of 

9 which is greater than 1,000 parts per mil10 lion total dissolved solids; 

11 (B) is owned or operated by— 

12 (i) a State or any political subdivision, 

13 agency, authority, or instrumentality of a 

14 State; or 

15 (ii) a corporation responsible for pro16 viding municipal water service in accord17 ance with State law; and 

18 (C) is first used to produce desalinated 

19 water during the 10-year period beginning on 

20 October 1 of the first full fiscal year occurring 

21 after the date of the enactment of this Act. 

22 (2) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Energy. 
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•S 1016 IS

1 SEC. 3. DESALINATED WATER PRODUCTION INCENTIVE 

2 PAYMENTS. 

3 (a) INCENTIVE PAYMENTS.—The Secretary shall 

4 make incentive payments in an amount determined under 

5 subsection (d) to the owners or operators of qualified de6 salination facilities to partially offset the cost of electrical 

7 energy required to operate the facilities. 

8 (b) REQUIREMENTS.—The Secretary may not make 

9 a payment to the owner or operator of a qualified desalina10 tion facility under this section unless— 

11 (1) not later than the end of fiscal year 2015, 

12 the Secretary enters into a written agreement with 

13 the owner or operator to make the payment; and 

14 (2) the owner or operator submits an applica15 tion to the Secretary in such form, at such time, and 

16 containing such information and assurances as the 

17 Secretary may require. 

18 (c) PAYMENT PERIOD.—The Secretary may make 

19 payments to the owner or operator of a qualified desalina20 tion facility under this section for a period not to exceed 

21 10 years— 

22 (1) beginning on the date on which the facility 

23 is first used to produce desalinated water; and 

24 (2) ending not later than September 30, 2025. 

25 (d) AMOUNT OF PAYMENT.— 
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1 (1) IN GENERAL.—A payment made by the Sec2 retary under this section to the owner or operator of 

3 a qualified desalination facility shall be based on the 

4 amount of desalinated water produced by the facility 

5 during the payment period described in subsection 

6 (c). 

7 (2) BASE PAYMENT.—For any facility, the 

8 amount of a payment described in paragraph (1) 

9 shall be 62 cents for every 14 kilowatt hours of elec10 tricity used to produce desalinated water, as ad11 justed under paragraph (3). 

12 (3) ADJUSTMENTS.—The amount of the pay13 ment described in paragraph (2) shall be adjusted 

14 for inflation for fiscal year 2007 and each subse15 quent fiscal year— 

16 (A) using the inflation adjustment factor 

17 defined in section 29(d)(2)(B) of the Internal 

18 Revenue Code of 1986; but 

19 (B) substituting calendar year 2005 for 

20 calendar year 1979. 

21 (e) LIMITATION.—In any fiscal year, not more than 

22 60 percent of the funds made available by the Secretary 

23 under this section shall be made available to the owners 

24 or operators of qualified desalination facilities that obtain 
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•S 1016 IS

1 source water directly from the sea, an estuary, or an in2 bank extraction well that is of seawater origin. 

3 (f) BUDGET ACT COMPLIANCE.—The authority pro4 vided by this section may be exercised only in such 

5 amounts or to such extent as provided in advance in an 

6 appropriations Act. 

7 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

8 authorized to be appropriated to the Secretary to carry 

9 out this section $200,000,000. 

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