I 
109TH CONGRESS 
2D SESSION 
H. R. 6230 
To authorize the Secretary of Energy to make energy consumption reduction 
incentive payments to encourage the utilization of the best available 
technology in the development of desalination facilities, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 28, 2006 
Mr. HALL introduced the following bill; which was referred to the Committee 
on Resources 
A BILL 
To authorize the Secretary of Energy to make energy con-
sumption reduction incentive payments to encourage the 
utilization of the best available technology in the develop-
ment of desalination facilities, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Desalination Energy 
Consumption Reduction Act of 2006’’. 
SEC. 2. DEFINITIONS. 
For purposes of this Act: 
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(1) QUALIFIED DESALINATION FACILITY.—The 
term ‘‘qualified desalination facility’’ means a facil-
ity that— 
(A) produces for sale to domestic cus-
tomers desalinated seawater, brackish ground-
water, or surface water whose source water is 
greater than 1000 milligrams per liter total dis-
solved solids; 
(B) is owned or operated by— 
(i) a State or any political subdivision, 
agency, authority, or instrumentality of a 
State; 
(ii) an Indian tribe; or 
(iii) a corporation responsible for pro-
viding municipal water service pursuant to 
State or tribal law; 
(C) is first used to produce commercial 
desalinated water for sale during the 10-year 
period beginning on October 1 of the first fiscal 
year occurring after the date of enactment of 
this Act; and 
(D) uses the best available technology as 
determined by the Secretary. 
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given that term in section 4(e) of 
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the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450b(e)). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(4) STATE.—The term ‘‘State’’ means the sev-
eral States, the District of Columbia, Puerto Rico, 
American Samoa, the Virgin Islands, Guam, and the 
Northern Mariana Islands. 
SEC. 3. DESALINATED WATER ENERGY CONSUMPTION RE-
DUCTION INCENTIVE PAYMENTS. 
(a) INCENTIVE PAYMENTS.—The Secretary shall 
make incentive payments in an amount determined under 
subsection (d) to the owners of qualified desalination fa-
cilities to encourage the utilization of the best available 
technology to reduce the consumption of electrical energy 
in the desalination process. 
(b) AGREEMENT; DEADLINE.—The Secretary may 
not make any payment to the owner or operator of a 
quailfied desalination facility under this section unless, not 
later than the end of fiscal year 2018, the Secretary enters 
into a written agreement with the owner or operator to 
make such payment. 
(c) PAYMENT PERIOD.—The Secretary may make 
payments to the owner or operator of a qualified desalina-
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tion 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, 2028. 
(d) AMOUNT OF PAYMENT.— 
(1) IN GENERAL.—Payments made by the Sec-
retary under this section to the owner or operator of 
any qualified desalination facility shall be based on 
the amount of electrical energy conserved by the fa-
cility below the benchmarks included in the formula 
established under paragraph (2) during the payment 
period described in subsection (c), adjusted as pro-
vided in paragraph (3). 
(2) BASE PAYMENT.—The Secretary shall es-
tablish a formula for making incentive payments to 
owners of qualified desalination facilities producing 
potable water from source waters ranging from 
1,000 to 35,000 milligrams per liter total dissolved 
solids or more. The payment shall range from 30 
cents per 1,000 gallons of potable water produced 
for any facility that can demonstrate a savings of 
.25 kilowatt hours per gallon to 90 cents per 1,000 
gallons of potable water produced for any facility 
that can demonstrate a savings of 4.75 kilowatt 
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hours per gallon from a benchmark for energy con-
sumption by such facilities that ranges along a lin-
ear scale from 1.8 kilowatt hours per gallon for fa-
cilities utilizing source water of 1,000 milligrams per 
liter total dissolved solids to 14 kilowatt hours per 
gallon for facilities utilizing source water of 35,000 
milligrams per liter total dissolved solids or more. 
(3) ADJUSTMENTS.—In the case of any pay-
ment made to any person under this subsection in 
a fiscal year beginning after calendar year 2008, the 
amount of such payment shall be adjusted by multi-
plying such amount by the inflation adjustment fac-
tor (determined under section 45K(d)(2) of the In-
ternal Revenue Code of 1986 by substituting ‘‘2008’’ 
for ‘‘1979’’ in subparagraph (B) thereof) for the cal-
endar year in which the payment is made. 
(e) APPLICATION.—The Secretary may not make a 
grant to the owner or operator of a qualified desalination 
facility under this section unless the facility submits an 
application to the Secretary in such form, at such time, 
and containing such information and assurances as the 
Secretary may require. Further, as a part of the applica-
tion the applicant shall provide a written assurance to the 
Secretary that the financial benefit of any incentive pay-
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ments received by the applicant will be utilized for the ben-
efit of the rate payers. 
(f) 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 from 
in-bank extraction wells that are of seawater origin. 
(g) PRIORITY.—In awarding incentive payments 
under this section, the Secretary shall give priority to any 
application for a project that— 
(1) uses innovative technologies to reduce the 
energy demand of the project; 
(2) uses renewable energy supplies in the desali-
nation process; 
(3) provides regional water supply benefits; 
(4) provides a secure source of new water sup-
plies for national defense activities; 
(5) reduces the threat of a water supply disrup-
tion as a result of a natural disaster or acts of ter-
rorism; 
(6) uses technologies that minimize the damage 
to marine life; or 
(7) provides significant water quality benefits. 
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(h) BUDGET ACT COMPLIANCE.—The authority pro-
vided by this section may be exercised only in such 
amounts or to such extent as is provided in advance in 
appropriations Acts. 
(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary 
$200,000,000 to carry out this section for the period en-
compassing fiscal years 2008 through 2018. 
Æ 
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