To direct the Secretary of the Interior to exclude and defer from the pooled reimbursable costs of the Central Valley Project the reimbursable capital costs of the unused capacity of the Folsom South Canal, Auburn-Folsom South Unit, Central Valley Project, and for other purposes.

Directs the Secretary of the Interior to: (1) exclude and defer from the pooled reimbursable costs of the Central Valley Project the reimbursable capital costs of the unused capacity of the Folsom South Canal, Auburn-Folsom South Unit, of such Project; and (2) calculate the amount to be assigned to deferred use, which shall be reflected in future years' water rates. Sets forth a formula for calculating such excluded reimbursable cost.

Provides that as long as an entity that is allocated and that pays capital, interest, and operation and maintenance costs associated with an amount of Project water historically assigned to the Canal does not use the Canal for the conveyance of Project water, that entity shall be entitled to convey an equivalent amount of non-Project water through the Canal without additional cost.