Desalination Water Supply Shortage Prevention Act of 2005 - Requires the Secretary of Energy to make incentive payments to the owners or operators of qualified desalination facilities (facilities first used to produce commercial desalinated water after enactment of this Act), including facilities owned or operated by Indian tribes, for up to ten years to partially offset the cost of electrical energy required to operate such facilities.
Provides that the qualified facilities shall receive 62 cents for every thousand gallons of desalinated water produced and sold, with an adjustment for inflation. Limits to 60% of the amount of funds made available in any fiscal year that the Secretary may provide to the owners or operators of qualified facilities that obtain source water directly from the sea, an estuary, or in-bank extraction wells of sea water origin.
Directs the Secretary, in awarding incentive payments, to give priority to any application for a project that: (1) uses innovative technologies to reduce energy demand; (2) uses renewable energy supplies in the desalination process; (3) provides regional water supply benefits; (4) provides a secure source of new water supplies for national defense activities; (5) reduces the threat of a water supply disruption as a result of a natural disaster or acts of terrorism; (6) uses technologies that minimize damage to marine life; or (7) provides significant water quality benefits.
Directs the Secretary to support research and development of promising novel technology approaches for the cost-effective desalination of water.
Authorizes appropriations.