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 the Secretary to use the Fund 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.
Terminates this Act ten years after its enactment.