diff --git a/utils/python/CIME/SystemTests/lii.py b/utils/python/CIME/SystemTests/lii.py
new file mode 100644
index 000000000000..c807d9fc93e8
--- /dev/null
+++ b/utils/python/CIME/SystemTests/lii.py
@@ -0,0 +1,82 @@
+"""
+Implementation of the CIME LII test.  This class inherits from SystemTestsCommon
+
+This is a CLM specific test:
+Verifies that namelist variable 'use_init_interp' works correctly
+(1) do a run with use_init_interp false (suffix base)
+(2) do a run with use_init_interp true (suffix init_interp_on)
+"""
+
+import shutil, glob
+from CIME.XML.standard_module_setup import *
+from CIME.SystemTests.system_tests_common import SystemTestsCommon
+
+logger = logging.getLogger(__name__)
+
+class LII(SystemTestsCommon):
+
+    def __init__(self, case):
+        """
+        initialize a test object
+        """
+        SystemTestsCommon.__init__(self, case)
+
+    def build(self, sharedlib_only=False, model_only=False):
+
+        # Make copies of the namelist files for each part of the test. Enclose the
+        # copies in conditionals so that we only do this namelist setup the first time
+        # the build script is invoked - otherwise, if the build is rerun, the namelist
+        # files would build up repeated instances of the setting of force_init_intep.
+        #
+        # Note the use of shell wildcards to make sure we apply these mods to
+        # multi-instance versions
+
+        if not os.path.exists("user_nl_nointerp"):
+            os.makedirs("user_nl_nointerp")
+            for filename in glob.glob(r'user_nl_clm*'):
+                shutil.copy(filename, os.path.join("user_nl_nointerp",filename))
+                with open(os.path.join("user_nl_nointerp",filename), "a") as newfile:
+                    newfile.write("use_init_interp = .false.")
+
+        if not os.path.exists("user_nl_interp"):
+            os.makedirs("user_nl_interp")
+            for filename in glob.glob(r'user_nl_clm*'):
+                shutil.copy(filename, os.path.join("user_nl_interp",filename))
+                with open(os.path.join("user_nl_interp",filename), "a") as newfile:
+                    newfile.write("use_init_interp = .true.")
+
+        self.clean_build()
+        SystemTestsCommon.build(self, sharedlib_only=sharedlib_only, model_only=model_only)
+
+    def run(self):
+        '''
+        Do a run with init_interp false, a run with init_interp true and
+        compare
+        '''
+        caseroot = self._case.get_value("CASEROOT")
+
+        self._case.set_value("CONTINUE_RUN",False)
+        self._case.set_value("REST_OPTION","none")
+        self._case.set_value("HIST_OPTION","$STOP_OPTION")
+        self._case.set_value("HIST_N","$STOP_N")
+        self._case.flush()
+        for user_nl_dir in ("nointerp", "interp"):
+            for filename in glob.glob(r'user_nl_%s/*'%user_nl_dir):
+                shutil.copy(filename,
+                            os.path.join(caseroot,os.path.basename(filename)))
+
+            stop_n = self._case.get_value("STOP_N")
+            stop_option = self._case.get_value("STOP_OPTION")
+            logger.info("doing a %d %s initial test with init_interp set to %s, no restarts written"
+                        % (stop_n, stop_option, user_nl_dir == "interp"))
+
+            success = SystemTestsCommon._run(self, suffix=user_nl_dir)
+            if not success:
+                break
+        if success:
+            return self._component_compare_test("nointerp", "interp")
+        else:
+            return False
+
+    def report(self):
+        SystemTestsCommon.report(self)