San Gabriel Basin Water Quality Initiative

San Gabriel Basin Water Quality Initiative - Establishes within the Treasury an interest bearing account to be known as the San Gabriel Basin Restoration Fund to be administered by the Secretary of the Army, acting through the Chief of Engineers, in cooperation with the San Gabriel Basin Water Quality Authority. Provides for amounts in the Restoration Fund, including interest accrued, to be utilized by the Secretary to: (1) design and construct water quality projects to be administered by the Authority and the Central Basin Water Quality Project to be administered by the Central Basin Municipal Water District; and (2) operate and maintain any project constructed for such period as the Secretary determines, but not to exceed ten years, following the initial date of operation of the project.

Prohibits the Secretary from obligating any funds appropriated to the Restoration Fund in a fiscal year until the Secretary has deposited in such fund an amount provided by non-Federal interests sufficient to ensure that at least 35 percent of any funds obligated by the Secretary are from funds provided by such interests. Makes the San Gabriel Basin Water Quality Authority responsible for providing such amount. Permits the State of California, local government agencies, and private entities to provide all or any portion of such amount.

Authorizes appropriations. Provides that no more than $10 million of such authorization shall be available to carry out such project.

Authorizes the Secretary, in cooperation with Federal, State, and local government agencies, to participate in studies and other investigative activities and in the planning and design of projects which offer a long- term solution to the problem of groundwater contamination caused by perchlorates.

Directs the Secretary, under such study: (1) in coordination with other Federal agencies and the Brazos River Authority, to participate in investigations and projects in the Bosque and Leon River watersheds in Texas to assess the impact of the perchlorate associated with the former Naval "Weapons Industrial Reserve Plant" at McGregor, Texas; (2) in coordination with other Federal agencies and the Northeast Texas Municipal Water District, to participate in investigations and projects relating to perchlorate contamination in Caddo Lake, Texas; and (3) in coordination with other Federal, State, and local government agencies, to participate in investigations and projects related to sites that are sources of perchlorates and that are located in Santa Clarita, California. Authorizes appropriations for such study, of which not more than separate, specified amounts shall be available to carry out each such set of investigations and projects under such study.