To authorize the Secretary of the Army to carry out a project for flood control and recreation on the Sacramento and American Rivers, California.

Authorizes the Secretary of the Army (Secretary) to: (1) carry out a project for flood control and recreation, Sacramento and American Rivers, California, subject to specified requirements; and (2) exercise authority under the Water Supply Act of 1958, for such project, for water storage and conservation only upon supplemental authorization by the Congress and in compliance with all applicable laws.

Requires: (1) the flood control dam constructed as part of the project to be designed so as not to preclude future expansion for water, power, and other beneficial purposes; and (2) the Secretary to cooperate with the State of California to establish an independent consulting board (composed of recognized dam engineering experts) to review the design and construction effort, provide technical confirmation that such dam will create no significantly greater economic, procedural, or other impediments to expansion of the project than construction of a multipurpose dam, and ensure that the design is technically consistent with soil conservation and fish and wildlife mitigation requirements under this Act.

Specifies that: (1) this Act shall not constitute a congressional determination that expansion of the project in the future would be justified from either an environmental or economic perspective; (2) expansion shall require separate congressional authorization and compliance with all applicable laws; and (3) if such authorization is granted, the costs of the project shall be reallocated and an appropriate proportion of the costs assigned to those benefiting from the water and power features of the expanded project.

Directs: (1) the Secretary to consider any planning and construction work of the non-Federal sponsors to protect the Natomas area which is commenced prior to the Army Corps of Engineers receiving appropriations to initiate construction of the project; (2) the Secretaries of the Interior and Agriculture to cooperate with the Corps and make available any lands under their respective control for the purposes of the project; and (3) the Secretary of Transportation to participate in, and provide appropriate Federal financial assistance for, feasibility and environmental studies on alternative alignments for the relocation of that portion of California Route 49 which will be affected by the project, subject to specified requirements. Sets forth additional requirements with respect to cost sharing.

Requires that: (1) the flood control structure authorized by this Act be designed and operated to minimize the frequency of inundation of the canyons upstream of the flood control dam and adverse effects of the project on canyon soils and vegetation resulting from inundation and release of flood waters; (2) the project include such measures as the Secretary deems appropriate to mitigate any unavoidable adverse effects of the project on aquatic, riparian, and upland habitat and on the fish and wildlife resources dependent thereon, including post-flood revegetation and rehabilitation of the canyons; and (3) mitigation for impacts on the elderberry longhorn beetle be accomplished, to the extent practicable, on lands in Federal ownership on the date of enactment.

Directs the Secretary to: (1) ensure that Federal lands in the canyons in the vicinity of the project are actively managed to provide additional river-based and other recreation under the auspices of the Auburn State Recreation Area, California; and (2) identify necessary funding sources and assist as needed with development of an appropriate management plan adopted with due regard to potential future uses of the canyon lands.

Authorizes the Secretary to expend specified sums on appropriate capital expenditures and on operation and maintenance of facilities and a program to implement any management plan prepared and adopted for the Auburn State Recreation Area, California.

Requires the Secretary to direct that the Folsom Dam and Reservoir be operated to provide adequate protection against a flood event of 100-year frequency, as determined by the Federal Emergency Management Agency, uuntil such time as the construction of the project is completed.