Yes? You say that like it is an unreasonable position, but if you add energy demand and supply side together technically you get the entire economy and a fair amount of stuff that isn't even measured in money. The DoE isn't a bank. That is an absurdly wide field of interests.
If you look at, y'know, energy use in the US [1] then desalination doesn't even rate a mention as an energy sink. The biggest source of waste by far is the 66% losses during energy generation and in electricity and transport. Realistically they should be focusing on the supply of energy.
And to be fair they probably are. I'm repeating myself, but this looks like the bureaucratic equivalent of someone with a bee in the bonnet and nobody could be bothered to tell them no.
[1] https://en.wikipedia.org/wiki/File:US_Energy_2022.png