“(a) In General.—In order to further demonstrate the feasibility of desalination processes investigated either independently or in research conducted pursuant to section 3, the Secretary shall administer and conduct a demonstration and development program for water desalination and related activities, including the following:“(1) Desalination plants and modules.—Conduct or contract for technical work, including the design, construction, and testing of plants and modules to develop desalination processes and concepts, including modules specifically designed for brine management.
“(2) Projects.—“(A) In general.—Subject to the requirements of this subsection, the Secretary of the Interior may participate in an eligible desalination project in an amount equal to not more than 25 percent of the total cost of the eligible desalination project.
“(B) Eligible desalination project.—The term ‘eligible desalination project’ means any project in a Reclamation State, that—“(i) involves an ocean or brackish water desalination facility either constructed, operated and maintained; or sponsored by any State, department of a State, subdivision of a State or public agency organized pursuant to a State law; and
“(ii) provides a Federal benefit in accordance with the reclamation laws (including regulations).
“(C) State role.—Participation by the Secretary of the Interior in an eligible desalination project under this subsection shall not occur unless—“(i) the project is included in a state-approved plan or federal participation has been requested by the Governor of the State in which the eligible desalination project is located; and
“(ii) the State or local sponsor determines, and the Secretary of the Interior concurs, that— “(I) the eligible desalination project is technically and financially feasible and provides a Federal benefit in accordance with the reclamation laws;
“(II) sufficient non-Federal funding is available to complete the eligible desalination project; and
“(III) the eligible desalination project sponsors are financially solvent; and
“(iii) the Secretary of the Interior submits to Congress a written notification of these determinations within 30 days of making such determinations.
“(D) Environmental laws.—When participating in an eligible desalination project under this subsection, the Secretary shall comply with all applicable environmental laws, including the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
“(E) Information.—When participating in an eligible desalination project under this subsection, the Secretary of the Interior—“(i) may rely on reports prepared by the sponsor of the eligible desalination project, including feasibility (or equivalent) studies, environmental analyses, and other pertinent reports and analyses; but
“(ii) shall retain responsibility for making the independent determinations described in subparagraph (C).
“(F) Authorization of appropriations.—“(i) $30,000,000 of funding is authorized to remain available until expended; and
“(ii) Projects can only receive funding if enacted appropriations legislation designates funding to them by name, after the Secretary recommends specific projects for funding pursuant to this subsection and transmits such recommendations to the appropriate committees of Congress.
“(3) Byproducts.—Study methods for the marketing of byproducts resulting from the desalting of water to offset the costs of treatment and to reduce environmental impacts of those byproducts.
“(4) Economic surveys.—Conduct economic studies and surveys to determine present and prospective costs of producing water for beneficial purposes in various locations by desalination processes compared to other methods.
“(b) Cooperative Agreements.—Federal participation in desalination activities may be conducted through cooperative agreements, including cost-sharing agreements, with non-Federal public utilities and State and local governmental agencies and other entities, in order to develop recommendations for Federal participation in processes and plants utilizing desalting technologies for the production of water.
“(c) Prioritization.—In carrying out demonstration and development activities under this section, the Secretary shall prioritize projects—“(1) for the benefit of drought-stricken States and communities;
“(2) for the benefit of States that have authorized funding for research and development of desalination technologies and projects;
“(3) that can reduce reliance on imported water supplies that have an impact on species listed under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); and
“(4) that demonstrably leverage the experience of international partners with considerable expertise in desalination, such as the State of Israel.
“(d) Water Production.—The Secretary shall provide, as part of the annual budget submission to Congress, an estimate of how much water has been produced and delivered in the past fiscal year using processes and facilities developed or demonstrated using assistance provided under sections 3 and 4. This submission shall include, to the extent practicable, available information on a detailed water accounting by process and facility and the cost per acre foot of water produced and delivered.