H. R. 1071
IN THE HOUSE OF REPRESENTATIVES
March 3, 2005
Mr. Davis of Florida (for himself and Mr. Gibbons) introduced the following bill; which was referred to the Committee on Resources
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 such facilities, and for other purposes.
This Act may be cited as the
Desalination Drought Protection Act of 2005.
DESALINATED WATER PRODUCTION INCENTIVE PAYMENTS
The Secretary of Energy (in this Act referred to as the
Secretary) shall make incentive payments in an amount determined under subsection (e) to the owners or operators of qualified desalination facilities to partially offset the cost of electrical energy required to operate such facilities.
Qualified Desalination Facility
For purposes of this section, the term
qualified desalination facility means a facility that—
produces for sale to domestic customers desalinated seawater, brackish groundwater, or surface water whose source water is greater than 1,000 parts per million total dissolved solids;
is owned or operated by—
a State or any political subdivision, agency, authority, or instrumentality of a State; or
a corporation responsible for providing municipal water service pursuant to State law; and
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 section.
The Secretary may not make any payment to the owner or operator of a qualified desalination facility under this section, unless not later than the end of fiscal year 2016 the Secretary enters into a written agreement with the owner or operator to make such payment.
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—
beginning on the date on which the facility is first used to produce desalinated water; and
ending not later than September 30, 2026.
Amount of Payment
Payments made by the Secretary under this section to the owner or operator of any qualified desalination facility shall be based on the amount of desalinated water produced by the facility during the payment period described in subsection (d). For any facility, the amount of such payment shall be 62 cents for every thousand gallons of desalinated water produced and sold, adjusted as provided in paragraph (2).
The amount of the payment made to any person under this subsection as provided in paragraph (1) shall be adjusted for inflation for each fiscal year beginning after calendar year 2006 in the same manner as provided in the provisions of section 29(d)(2)(B) of the Internal Revenue Code of 1986 (26 U.S.C. 29(d)(2)(B)), except that in applying such provisions the calendar year 2006 shall be substituted for calendar year 1979.
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.
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.
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 appropriations Acts.
Authorization of Appropriations
There are authorized to be appropriated to the Secretary $200,000,000 to carry out this section for the period encompassing fiscal years 2006 through 2016.
Novel desalination technology
The Secretary shall support research and development of promising novel technology approaches for the cost-effective desalination of water.
Authorization of appropriation
There are authorized to be appropriated to the Secretary for carrying out this section $10,000,000 for the period encompassing fiscal years 2006 through 2016.