A bill to amend the Act entitled "An Act to authorize the Secretary of the Interior to construct, operate, and maintain the Auburd-Folsom South unit, American River division, Central Valley project, California, under Federal reclamation laws", enacted September 2, 1965.

Directs the Secretary of the Interior to enter into negotiations directed toward agreements with non-Federal entities which provide for cost-sharing toward financing the construction, operation, and maintenance of the Auburn-Folsom South unit of the American River division, Central Valley irrigation project, California. Prohibits any agreement from taking effect until funds are appropriated to carry out such agreement. Authorizes participating non-Federal entities to share in the power and other project services of the Auburn-Folsom South unit. Directs the Secretary to report to the appropriate House and Senate committees concerning such agreements.