To provide for outlet modifications to Folsom Dam, a study for reconstruction of the Northfork American River Cofferdam, and the transfer to the State of California all right, title, and interest in and to the Auburn Dam, and for other purposes.

Directs the Secretary of the Interior to carry out the new outlets plan for modifications of Folsom Dam, California. Requires the Secretary, upon project completion, to operate the Folsom Dam and Reservoir to the variable 400,000-600,000 acre-feet of flood control storage capacity. Provides a 65 percent Federal cost share.

Directs the Secretary to complete a study to determine the feasibility of a project to reconstruct and make safety improvements to Northfork American River Cofferdam to enable it to impound safely a minimum of 180,000 acre-feet of water. Provides a 65 percent Federal cost share.

Directs the Secretary, at the request of the Governor of California, to transfer to California all U.S. rights and interest to the Auburn Dam and Reservoir portion of the Auburn-Folsom South Unit, Central Valley Project after completion of the above projects. Reserves certain U.S. rights upon such transfer.

Authorizes appropriations.