To authorize the Secretary of the Interior, acting through the Bureau of Reclamation and in coordination with other Federal, State, and local government agencies, to participate in the funding and implementation of a balanced, long-term groundwater remediation program in California, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Llagas Reclamation Groundwater 
Remediation Initiative''.

SEC. 2. DEFINITIONS.

    For the purposes of this Act:
            (1) Groundwater remediation.--The term ``groundwater 
        remediation'' means actions that are necessary to prevent, 
        minimize, or mitigate damage to groundwater.
            (2) Local water authority.--The term ``local water 
        authority'' means the Santa Clara Valley Water District.
            (3) Remediation fund.--The term ``Remediation Fund'' means 
        the California Basins Groundwater Remediation Fund established 
        pursuant to section 3(a).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. CALIFORNIA BASINS REMEDIATION.

    (a)  California Basins Remediation.--
            (1) Establishment of remediation fund.--There shall be 
        established within the Treasury of the United States an 
        interest bearing account to be known as the California Basins 
        Groundwater Remediation Fund.
            (2) Administration of remediation fund.--The Remediation 
        Fund shall be administered by the Secretary of the Interior, 
        acting through the Bureau of Reclamation. The Secretary shall 
        administer the Remediation Fund in cooperation with the local 
        water authority.
            (3) Purposes of remediation fund.--
                    (A) In general.--Subject to subparagraph (B), the 
                amounts in the Remediation Fund, including interest 
                accrued, shall be used by the Secretary to provide 
                grants to the local water authority to reimburse the 
                local water authority for the Federal share of the 
                costs associated with designing and constructing 
                groundwater remediation projects to be administered by 
                the local water authority.
                    (B) Cost-sharing limitation.--
                            (i) In general.--The Secretary may not 
                        obligate any funds appropriated to the 
                        Remediation Fund in a fiscal year until the 
                        Secretary has deposited into the Remediation 
                        Fund an amount provided by non-Federal 
                        interests sufficient to ensure that at least 35 
                        percent of any funds obligated by the Secretary 
                        for a project are from funds provided to the 
                        Secretary for that project by the non-Federal 
                        interests.
                            (ii) Non-federal responsibility.--Each 
                        local water authority shall be responsible for 
                        providing the non-Federal amount required by 
                        clause (i) for projects under that local water 
                        authority. The State of California, local 
                        government agencies, and private entities may 
                        provide all or any portion of the non-Federal 
                        amount.
                            (iii) Credits toward non-federal share.--
                        For purposes of clause (ii), the Secretary 
                        shall credit the appropriate local water 
                        authority with the value of all prior 
                        expenditures by non-Federal interests made 
                        after January 1, 2000, that are compatible with 
                        the purposes of this section, including--
                                    (I) all expenditures made by non-
                                Federal interests to design and 
                                construct groundwater remediation 
                                projects, including expenditures 
                                associated with environmental analyses 
                                and public involvement activities that 
                                were required to implement the 
                                groundwater remediation projects in 
                                compliance with applicable Federal and 
                                State laws; and
                                    (II) all expenditures made by non-
                                Federal interests to acquire lands, 
                                easements, rights-of-way, relocations, 
                                disposal areas, and water rights that 
                                were required to implement a 
                                groundwater remediation project.
    (b) Compliance With Applicable Law.--In carrying out the activities 
described in this section, the Secretary shall comply with any 
applicable Federal and State laws.
    (c) Relationship to Other Activities.--Nothing in this section 
shall be construed to affect other Federal or State authorities that 
are being used or may be used to facilitate remediation and protection 
of the Llagas groundwater subbasin. In carrying out the activities 
described in this section, the Secretary shall integrate such 
activities with ongoing Federal and State projects and activities. None 
of the funds made available for such activities pursuant to this 
section shall be counted against any Federal authorization ceiling 
established for any previously authorized Federal projects or 
activities.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Remediation Fund $25,000,000. Such funds shall 
remain available until expended.

            Passed the House of Representatives September 21, 2004.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Llagas Reclamation Groundwater Remediation Initiative - Establishes within the Treasury an interest bearing account to be known as the California Basins Groundwater Remediation Fund, which shall be administered by the Secretary of the Interior, acting through the Bureau of Reclamation, in cooperation with the Santa Clara Valley Water District.

Requires that the Fund be used by the Secretary to provide grants to reimburse the District for the Federal share of the costs associated with designing and constructing groundwater remediation projects. Prohibits the Secretary from obligating any funds appropriated to the Fund in a fiscal year until the Secretary has deposited a matching amount provided by non-Federal interests of at least 35 percent for a project.

Makes each local water authority responsible for providing the non-Federal amount required for projects under that authority. Allows the State of California, local government agencies, and private entities to provide all or any portion of the non-Federal amount. Directs the Secretary to credit the appropriate authority with the value of all prior expenditures by non-Federal interests made after January 1, 2000, that are compatible with the purposes of this Act. Authorizes appropriations to the Fund.