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‘‘(5) If the Basin-Wide Technical Plan is published
in final form after the date on which any contract or coop-
erative agreement under this subsection is entered into,
the contract or cooperative agreement shall be modified
by the parties to the extent necessary to be consistent with
the plan. Pursuant to such contract or cooperative agree-
ment, the Authority shall provide treatment for water
withdrawn from the Basin by qualified public water sys-
tems unless otherwise provided by the Metropolitan Water
District of Southern California.
‘‘(6) No contract or cooperative agreement entered
into under this subsection shall take effect unless the Ad-
ministrator determines that all preconditions for imple-
menting the treatment project under this subsection have
been met, as provided in subsection (b), before the date
30 months after the enactment of this section.
‘‘(7) In providing water treatment under this sub-
section and apportioning costs under this section, the Ad-
ministrator and the Authority shall give credit for costs
incurred in the design, construction, and operation of any
previously approved project undertaken with respect to
the Basin and shall take appropriate steps to ensure
continuity.
‘‘(b) PRECONDITIONS
FOR
IMPLEMENTATION
OF
TREATMENT PROJECT.—(1) No water treatment shall be
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provided pursuant to any contract or cooperative agree-
ment under subsection (a) until the Administrator, in con-
sultation with the Authority, finds that—
‘‘(A) a sufficient number (at least 65%) of the
persons notified by the Administrator under this Act
prior to the date 6 months after the enactment of
this section that they may be potentially responsible
parties have entered into long-term cost-sharing con-
tracts with the Administrator under this subsection;
and
‘‘(B) those contracts are sufficient to provide
annual payment for at least 50 percent of the total
costs incurred by the Administrator after the date of
the enactment of this section in carrying out water
treatment under subsection (a).
‘‘(2) The contracts with participating parties under
this subsection shall also require that each participating
party entering into such a contract will—
‘‘(A) conduct an environmental site assessment
in accordance with subsection (i) of the property
owned or operated by that party by reason of which
such party has been designated as a potentially re-
sponsible party, and
‘‘(B) carry out all removal and remedial action
required with respect to hazardous substances in the
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soil above the water table on such property, to the
extent necessary to comply with the standards under
section 121.
‘‘(3) Any person, including potentially responsible
parties identified by the Administrator after the date 6
months after the enactment of this section, as well as all
local government entities within the San Gabriel Basin,
who submits a request to the Administrator to participate
in the project under this section shall be offered the oppor-
tunity to enter into cost sharing contracts under this sec-
tion and those who enter into such contracts shall be treat-
ed as a participating party for purposes of this section.
‘‘(4) Each person desiring to participate under this
section shall enter into a contract under this section within
90 days after the date on which the contract is offered
by the Administrator to such party.
‘‘(5) The annual payment by each participating party
shall be made in accordance with an appropriate schedule
of periodic payments established by the Administrator and
the Authority to coincide with the funding necessary to
carry out this section. Each participating party shall be
given the opportunity to fund its periodic payment liability
on a present value basis by entering into a structured set-
tlement arrangement. If a participating party funds its
periodic payment liability through a structured settlement
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arrangement, the Authority shall be named as the owner
and payee of the funding instrument at the time of the
purchase of the instrument. Any such arrangement is sub-
ject to the approval of the Administrator and the Author-
ity, particularly as to the schedule of payments and the
licensed insurance company utilized for these purposes. A
participating party may enter into a structured settlement
arrangement as a single entity, or may enter into such
an arrangement with other participating parties. Except
as provided in subsection (c)(5), if a structured settlement
arrangement is established pursuant to the provisions of
this section, the participating party to whom the settle-
ment relates shall be released from any and all further
liability with respect to the settlement.
‘‘(6) No court shall have jurisdiction to review any
challenge to the removal or remedial action selected in any
contract or cooperative agreement under this section.
‘‘(c) COST SHARING.—(1) Six months after the en-
actment of this section, the Administrator shall notify
each potentially responsible party and each other person
who has submitted notice to the Administrator under sub-
section (b)(4) of the Administrator’s intention to allocate
the total costs incurred by the Administrator for water
treatment under subsection (a). Within 60 days after the
Administrator notifies such potentially responsible parties
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and other persons, any such parties and other persons de-
siring to become participating parties shall so notify the
Administrator and agree to provide the Administrator
with such information as the Administrator deems nec-
essary to allocate costs among participating parties under
this subsection. If the Administrator deems the informa-
tion provided by any such person to be insufficient to per-
mit the Administrator to make cost allocations under this
subsection, the Administrator designate such person as in-
eligible to be a participating party. If the parties and other
persons notified by the Administrator agree on an alloca-
tion of costs among themselves within 180 days after the
expiration of such 60-day period, the Administrator shall
allocate costs in accordance with such agreement. If such
parties fail to reach an agreement for cost allocation with-
in such 180-day period, within 30 days after the expiration
of such 180-day period the Administrator shall allocate
costs in accordance with paragraphs (2) and (3).
‘‘(2) In allocating costs to each participating party
as provided in paragraph (1), the Administrator shall
make 2 allocations. The first allocation shall allocate only
those costs associated with the specific zone of contamina-
tion located in proximity to the participating party. The
allocation shall be made among all participating parties
located in proximity to such zone, pursuant to the formula
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established by the Administrator under paragraph (3).
The second allocation shall allocate those costs not associ-
ated with specific zones of contamination. The allocation
shall be made among all participating parties, pursuant
to the formula established by the Administrator under
paragraph (3).
‘‘(3) When no agreement has been reached pursuant
to paragraph (1), the Administrator shall establish a for-
mula for allocating costs under this subsection. The for-
mula shall require that the share of the total costs to be
paid by a participating party shall be based upon the fol-
lowing factors:
‘‘(A) The Standard Industrial Code Number (as
determined by the Secretary of Commerce) of the
participating party and the Administrator’s estimate
of the likelihood that industrial operations having
that SIC Number contributed to contamination of
the Basin.
‘‘(B) The revenues attributable to the partici-
pating party’s facility in the San Gabriel Valley in
a baseline year established by the Administrator.
‘‘(C) The ability of the participating party to
pay.
‘‘(D) Prior expenditures made by the participat-
ing party for groundwater mediation in the Basin
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(not including any costs of litigation or other attor-
ney’s fees).
‘‘(4) In allocating costs under this subsection the Ad-
ministrator shall also allocate a share of the total costs
of carrying out the water treatment project under sub-
section (a) to potentially responsible parties who do not
agree to become participating parties under this section.
The 
Administrator 
shall 
recover 
cost 
from 
such
nonparticipating parties pursuant to other provisions of
this Act. The total of all shares contributed by participat-
ing parties under this subsection shall not be more than
80 percent of the total costs of carrying out the water
treatment project authorized under subsection (a), except
as provided in paragraph (5).
‘‘(5) At the time the Administrator enters into a con-
tract or cooperative agreement with the Authority under
subsection (a), the Administrator shall estimate the total
costs expected to be incurred by the Administrator under
subsection (a). Each contract with a participating party
under this section shall provide that the maximum obliga-
tion of that participating party under such contract shall
not exceed 200 percent of that participating party’s share
of such estimated total costs.
‘‘(6) Amounts received from participating parties
shall be paid to the Authority and deposited in an interest