San Carlos Irrigation Project Divestiture Act of 2026

Federal procedures and regulations, it has been challenging to acquire long-term contracts for power and instead relies on short-term contracts and the day ahead market. As a result, SCIP's services to approximately 10,000 residential customers are both expensive and unreliable. (10) Additionally, SCIP requires infrastructure updates. SCIP is unable to raise money for new infrastructure through bonds, which has resulted in increased customer rates. (11) The Arizona Legislature, Bureau of Indian Affairs, Gila River Indian Community, the San Carlos Apache Indian Tribe, and the San Carlos Irrigation and Drainage District have petitioned the Congress to authorize the Secretary to divest the United States of ownership and responsibility for SCIP's electric power transmission and distribution systems and to take such other actions as necessary to carry out divestiture. (12) The Gila River Indian Community Utility Authority, Trico Electric Cooperative, Inc. Graham County Electric Cooperative, Inc., the San Carlos Irrigation and Drainage District, Electrical District No. 2 of Pinal County, Arizona, Electrical District No. 3 of Pinal County, Arizona, Electrical District No. 4 of Pinal County, Arizona, and Hohokam Irrigation & Drainage District, Arizona (collectively the ``Not for Profit Utilities Group'') have established principles by which divestiture and continued service to SCIP customers would be implemented between and among them, subsequent to enactment of Federal enabling authorities as provided in this Act. The Not- for-Profit Utilities Group's agreed upon principles provide a prudent method for ensuring safe, reliable, cost-effective, and long-term electric service to the residents and businesses currently served by SCIP. (b) Purpose.--The purposes of this Act are-- (1) to authorize the Secretary to divest the United States of ownership of the electric transmission and distribution system of the San Carlos Irrigation Project; (2) to facilitate the implementation of divestiture in an orderly and economic manner, consistent with the principles of the Not-for-Profit Utilities Group and with due regard for the rights and interests of current SCIP customers and employees; (3) to support the long-term provision of safe, reliable, and cost-effective power to the existing customers of SCIP by the Not-for-Profit Utilities Group; (4) to provide for the reallocation of power resources currently allocated to SCIP from Federal hydroelectric power sources to the Not-for-Profit Utilities Group; and (5) to assist the Gila River Indian Community and the San Carlos Apache Tribe in their efforts to achieve greater self- determination and economic self-sufficiency. SEC. 3. DEFINITIONS. In this Act: (1) SCIP.--The term ``SCIP'' means the San Carlos Irrigation Project authorized pursuant to the Act of June 7, 1924 (43 Stat. 475), expanded pursuant to the Act of March 7, 1928 (45 Stat. 200, 210), and administered by the Bureau of Indian Affairs. (2) SCIP electric system.--The term ``SCIP electric system'' means all electric transmission and distribution facilities, including existing associated easements, owned by the United States on behalf of SCIP and administered by SCIP's Power Division, except Coolidge Dam, the electric generating facilities within the dam's powerhouse, the lines connecting the powerhouse with the switchyard, together with such switchyard located on land withdrawn for Coolidge Dam. (3) Secretary.--The term ``Secretary'' means the Secretary of the Interior. SEC. 4. DIVESTITURE. (a) In General.--Notwithstanding the Act of September 22, 1961 (26 U.S.C. 16) and the San Carlos Indian Irrigation Project Divestiture Act of 1991 (Public Law 102-231), the Secretary is directed to transfer the SCIP electric system and associated assets. (b) Coordination.--In carrying out subsection (a), the Secretary shall create a plan for the transfer of the SCIP electric system and associated assets in coordination with the appropriate representatives of affected Federal, State, Tribal, local, and private entities. (c) Administrative Costs.-- (1) In general.--The entity or entities to which the SCIP electric system and associated assets are transferred shall be responsible for the administrative costs associated with the transfer. (2) Request for funds.--If the Secretary determines that Federal funds may be necessary to facilitate the transfer of the SCIP electric system and associated assets under this section, the Secretary shall submit to Congress all necessary documentation and information necessary to demonstrate the need for such funding. (d) Reversion Does Not Apply.--Section 10(b) of the San Carlos Indian Irrigation Project Divestiture Act of 1991 (Public Law 102-231) shall not apply with respect to the transfer of the SCIP electric system and associated assets under this Act. (e) Arizona Water Settlement.--The divestiture under subsection (a) shall not relieve the Secretary of any responsibilities with respect to SCIP under section 203(d)(1)(B) of the Arizona Water Settlements Act (Public Law 108-451). SEC. 5. BIA ELECTRIC UTILITY CONTRACTS. (a) In General.--With respect to any electric utility systems operated by the Bureau of Indian Affairs, the Secretary is authorized to contract under such terms and conditions as the Secretary considers to be in the best interest of the Federal Government and the Indian Tribe served by such electric utility system for the sale, operation, maintenance, repairs, or relocation of Government-owned utilities and utility systems and appurtenances used in the administration of the Bureau of Indian Affairs to such Indian Tribe or other entity as the Tribe and the Secretary may agree. (b) Submission to Congress.--The Secretary shall not execute a contract pursuant to this section until after submitting to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives a copy of the contract and a statement of the reasons for proposing the contract, and until such materials have lain before the Committees for 60 days (excluding the time during which either House is in recess for more than three days) unless prior thereto the Secretary is notified that neither committee has any objection to the proposed contract. <all>