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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1016 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Desalination Water Supply Shortage 
Prevention Act of 2005''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Qualified desalination facility.--The term ``qualified 
        desalination facility'' means a facility that--
                    (A) produces for sale to domestic customers--
                            (i) desalinated seawater;
                            (ii) brackish groundwater; or
                            (iii) surface water the source water of 
                        which is greater than 1,000 parts per million 
                        total dissolved solids;
                    (B) is owned or operated by--
                            (i) a State or any political subdivision, 
                        agency, authority, or instrumentality of a 
                        State; or
                            (ii) a corporation responsible for 
                        providing municipal water service in accordance 
                        with State law; and
                    (C) is first used to produce desalinated water 
                during the 10-year period beginning on October 1 of the 
                first full fiscal year occurring after the date of the 
                enactment of this Act.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. DESALINATED WATER PRODUCTION INCENTIVE PAYMENTS.

    (a) Incentive Payments.--The Secretary shall make incentive 
payments in an amount determined under subsection (d) to the owners or 
operators of qualified desalination facilities to partially offset the 
cost of electrical energy required to operate the facilities.
    (b) Requirements.--The Secretary may not make a payment to the 
owner or operator of a qualified desalination facility under this 
section unless--
            (1) not later than the end of fiscal year 2015, the 
        Secretary enters into a written agreement with the owner or 
        operator to make the payment; and
            (2) the owner or operator submits an application to the 
        Secretary in such form, at such time, and containing such 
        information and assurances as the Secretary may require.
    (c) Payment Period.--The Secretary may make payments to the owner 
or operator of a qualified desalination facility under this section for 
a period not to exceed 10 years--
            (1) beginning on the date on which the facility is first 
        used to produce desalinated water; and
            (2) ending not later than September 30, 2025.
    (d) Amount of Payment.--
            (1) In general.--A payment made by the Secretary under this 
        section to the owner or operator of a qualified desalination 
        facility shall be based on the amount of desalinated water 
        produced by the facility during the payment period described in 
        subsection (c).
            (2) Base payment.--For any facility, the amount of a 
        payment described in paragraph (1) shall be 62 cents for every 
        14 kilowatt hours of electricity used to produce desalinated 
        water, as adjusted under paragraph (3).
            (3) Adjustments.--The amount of the payment described in 
        paragraph (2) shall be adjusted for inflation for fiscal year 
        2007 and each subsequent fiscal year--
                    (A) using the inflation adjustment factor defined 
                in section 29(d)(2)(B) of the Internal Revenue Code of 
                1986; but
                    (B) substituting calendar year 2005 for calendar 
                year 1979.
    (e) Limitation.--In any fiscal year, not more than 60 percent of 
the funds made available by the Secretary under this section shall be 
made available to the owners or operators of qualified desalination 
facilities that obtain source water directly from the sea, an estuary, 
or an in-bank extraction well that is of seawater origin.
    (f) Budget Act Compliance.--The authority provided by this section 
may be exercised only in such amounts or to such extent as provided in 
advance in an appropriations Act.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $200,000,000.
                                 <all>
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