Desalination Energy Consumption Reduction Act of 2006

Desalination Energy Consumption Reduction Act of 2006 - Requires the Secretary of Energy to make specified incentive payments to the owners of qualified desalination facilities for up to ten years to encourage the utilization of the best available technology to reduce the consumption of electrical energy in the desalination process. Limits to 60% the amount of available funds to be provided to facilities that obtain source water directly from the sea, an estuary, or from in-bank extraction wells that are of seawater origin.

Directs the Secretary, in awarding incentive payments, to give priority to projects that: (1) use innovative technologies to reduce its energy demand; (2) use renewable energy supplies; (3) provide regional water supply benefits; (4) provide a secure source of new water supplies for national defense activities; (5) reduce the threat of a water supply disruption as a result of a natural disaster or acts of terrorism; (6) use technologies that minimize the damage to marine life; or (7) provide significant water quality benefits.