To amend the Federal Water Pollution Control Act relating to the water quality of Puget Sound.

Amends the Clean Water Act to direct the Administrator of the Environmental Protection Agency, at the request of the Governor of the State of Washington, to make grants to the State of Washington Puget Sound Water Quality Authority or its successor for use in: (1) implementing and updating the Puget Sound Water Quality Management Plan; (2) implementing a program for ambient monitoring of the water quality of Puget Sound; (3) supporting research which will increase understanding of Puget Sound and human impacts on the Sound; and (4) conducting other activities related to improving the water quality of Puget Sound. Requires the Governor to submit a grant proposal to the Administrator. Limits: (1) the Federal share of costs to 50 percent; and (2) the amount of administrative costs covered by such grants. Authorizes appropriations.