SECTION 1. SHORT TITLE.

    This Act may be cited as the ``California Perchlorate Contamination 
Remediation Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) because finite water sources in the United States are 
        stretched by regional drought conditions and increasing demand 
        for water supplies, there is increased need for safe and 
        dependable supplies of fresh water for drinking and 
        agricultural purposes;
            (2) perchlorate, a naturally occurring and manmade compound 
        with commercial and national defense applications, is used 
        primarily in military munitions and rocket fuels, and also in 
        fireworks, road flares, blasting agents, and automobile 
        airbags;
            (3) perchlorate has been detected in fresh water sources 
        intended for drinking water and agricultural use in 35 States 
        and the District of Columbia;
            (4)(A) perchlorate has been detected in the food supply of 
        the United States; and
            (B) many fruits and vegetables, including lettuce, wheat, 
        tomato, cucumber, and cantaloupe, contain at least trace levels 
        of perchlorate, as do wine, whiskey, soy milk, dairy milk, and 
        human breast milk; and
            (5) if ingested in sufficient concentration and for 
        adequate duration, perchlorate may interfere with thyroid 
        metabolism, the effects of which may impair normal development 
        of the brain in fetuses, newborns, and children.
    (b) Purposes.--The purposes of this Act are--
            (1) to provide grants for remediation of perchlorate 
        contamination of water sources and supplies (including 
        wellheads) in the State;
            (2) to provide grants for research and development of 
        perchlorate remediation technologies; and
            (3) to express the sense of Congress that the Administrator 
        should establish a national drinking water standard for 
        perchlorate.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) California water authority.--The term ``California 
        water authority'' means a public water district, public water 
        utility, public water planning agency, municipality, or Indian 
        tribe that is--
                    (A) located in a region identified under section 
                4(b)(3)(B); and
                    (B) in operation as of the date of enactment of 
                this Act.
            (3) Fund.--The term ``Fund'' means the California 
        Perchlorate Cleanup Fund established by section 4(a)(1).
            (4) State.--The term ``State'' means the State of 
        California.

SEC. 4. CALIFORNIA PERCHLORATE REMEDIATION GRANTS.

    (a) Perchlorate Cleanup Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a fund, to be known as the ``California 
        Perchlorate Cleanup Fund'', consisting of--
                    (A) any amount appropriated to the Fund under 
                section 7; and
                    (B) any interest earned on investment of amounts in 
                the Fund under paragraph (3).
            (2) Expenditures from fund.--
                    (A) In general.--Subject to subparagraph (B), on 
                receipt of a request by the Administrator, the 
                Secretary of the Treasury shall transfer to the 
                Administrator such amounts as the Administrator 
                determines to be necessary to provide grants under 
                subsections (b) and (c).
                    (B) Administrative expenses.--An amount not to 
                exceed 0.4 percent of the amounts in the Fund may be 
                used to pay the administrative expenses necessary to 
                carry out this subsection.
            (3) Investment of amounts.--
                    (A) In general.--The Secretary of the Treasury 
                shall invest such portion of the Fund as is not, in the 
                judgment of the Secretary of the Treasury, required to 
                meet current withdrawals.
                    (B) Interest-bearing obligations.--Investments may 
                be made only in interest-bearing obligations of the 
                United States.
                    (C) Acquisition of obligations.--For the purpose of 
                investments under subparagraph (A), obligations may be 
                acquired--
                            (i) on original issue at the issue price; 
                        or
                            (ii) by purchase of outstanding obligations 
                        at the market price.
                    (D) Sale of obligations.--Any obligation acquired 
                by the Fund may be sold by the Secretary of the 
                Treasury at the market price.
                    (E) Credits to fund.--The interest on, and the 
                proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to and 
                form a part of the Fund.
    (b) Cleanup Grants.--
            (1) In general.--Subject to paragraph (3), the 
        Administrator shall provide grants to California water 
        authorities, the total amount of which shall not exceed 
        $50,000,000, to pay the Federal share of the cost of activities 
        relating to cleanup of water sources and supplies (including 
        wellheads) in the State that are contaminated by perchlorate.
            (2) Federal share.--The Federal share of the cost of an 
        activity described in paragraph (1) shall not exceed 50 
        percent.
            (3) Eligibility; priority.--
                    (A) Eligibility.--A California water authority that 
                the Administrator determines to be responsible for 
                perchlorate contamination shall not be eligible to 
                receive a grant under this subsection.
                    (B)  Priority.--
                            (i) Activities.--In providing grants under 
                        this subsection, the Administrator shall give 
                        priority to an activity for the remediation 
                        of--
                                    (I) drinking water contaminated 
                                with perchlorate;
                                    (II) a water source with a high 
                                concentration of perchlorate; or
                                    (III) a water source that serves a 
                                large population that is directly 
                                affected by perchlorate contamination.
                            (ii) Locations.--In providing grants under 
                        this subsection, the Administrator shall give 
                        priority to an activity described in clause (i) 
                        that is carried out in 1 or more of the 
                        following regions in the State:
                                    (I) The Santa Clara Valley.
                                    (II) Regions within the natural 
                                watershed of the Santa Ana River, 
                                including areas in Riverside and San 
                                Bernardino Counties.
                                    (III) The San Gabriel Valley.
                                    (IV) Sacramento County.
                                    (V) Any other region that has a 
                                damaged water source as a result of 
                                perchlorate contamination, as 
                                determined by the Administrator.
    (c) Research and Development Grants.--
            (1) In general.--The Administrator shall provide grants, 
        the total amount of which shall not exceed $8,000,000, to 
        qualified non-Federal entities (as determined by the 
        Administrator) for use in carrying out research and development 
        of perchlorate remediation technologies.
            (2) Maximum amount of grant.--The amount of a grant 
        provided under paragraph (1) shall not exceed $1,000,000.

SEC. 5. EFFECT OF ACT.

    Nothing in this Act affects any authority or program of a Federal 
or State agency in existence on the date of enactment of this Act.

SEC. 6. SENSE OF CONGRESS.

    It is the sense of Congress that the Administrator should establish 
a national drinking water standard for perchlorate that reflects all 
routes of exposure to perchlorate as soon as practicable after the date 
of enactment of this Act.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$58,000,000, to remain available until expended.
Output: California Perchlorate Contamination Remediation Act - Establishes the California Perchlorate Cleanup Fund. Directs the Secretary of the Treasury to transfer amounts from the Fund to the Administrator of the Environmental Protection Agency (EPA) for the federal share of grants to California water authorities for the cleanup of water sources and supplies contaminated by perchlorate. Directs the Administrator, in awarding such grants, to give priority to: (1) activities for the remediation of drinking water contaminated with perchlorate, a water source with a high concentration of perchlorate, or a water source that serves a large population that is directly affected by perchlorate contamination; and (2) activities in the Santa Clara Valley, the San Gabriel Valley, Sacramento County, regions within the natural watershed of the Santa Ana River, and any other region that has a damaged water source contaminated with perchlorate.

Authorizes the Administrator to provide grants to nonfederal entities for research and development of perchlorate remediation technologies.

Urges the Administrator to establish a national drinking water standard for perchlorate that reflects all routes of exposure to perchlorate.