HouseH.R. 10864119th Congress

San Carlos Irrigation Project Divestiture Act of 2026

Full Text

Official text as published. Use Ctrl+F / Cmd+F to search within the document.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10864 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                               H. R. 10864

To provide for the divestiture of certain properties of the San Carlos 
  Irrigation Project in the State of Arizona, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 22, 2026

  Mr. Crane introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL

 
To provide for the divestiture of certain properties of the San Carlos 
  Irrigation Project in the State of Arizona, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``San Carlos Irrigation Project 
Divestiture Act of 2026''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) To provide water for irrigating, first, land allotted 
        to Pima Indians on the Gila River Reservation and, second, 
        other lands in public or private ownership which, in the 
        opinion of the Secretary of the Interior, could be served 
        without diminishing the supply necessary for the Indian lands, 
        Congress, by the Act of June 7, 1924, authorized construction 
        of Coolidge Dam and creation of San Carlos Reservoir on the 
        Gila River in Arizona.
            (2) The Secretary, through the San Carlos Irrigation 
        Project (SCIP) administered by the Bureau of Indian Affairs, 
        operates Coolidge Dam and approximately two hundred irrigation 
        wells to provide water to SCIP lands on the Gila River 
        Reservation and to the SCIP lands outside the reservation which 
        is within the San Carlos Irrigation and Drainage District.
            (3) A hydroelectric power system was developed at Coolidge 
        Dam pursuant to the Act of March 7, 1928, as amended, to 
        generate power incidental to the use of San Carlos Reservoir 
        for storing irrigation water. The system's primary purpose was 
        to provide power for irrigation pumping on SCIP lands and for 
        BIA agency and school purposes and for irrigation pumping by 
        Apache Indians on the San Carlos Reservation.
            (4) SCIP's transmission and distribution electric system, 
        which has been extended to domestic and commercial users on 
        SCIP lands and to other homes and businesses not on SCIP lands, 
        currently provides service within portions of Pinal, Pima, 
        Maricopa, Graham, and Gila Counties covering approximately 
        2,400 square miles.
            (5) Unexpectedly low and erratic Gila River flows into San 
        Carlos Reservoir since 1928 have limited power generation at 
        Coolidge Dam, causing SCIP to secure additional power through 
        market purchases, contracts with the Western Area Power 
        Administration, the Salt River Project, and Arizona Public 
        Service Company to meet its customers' needs. Since October 
        1988, when a flood damaged the switchyard at Coolidge Dam, no 
        power has been generated at the dam.
            (6) Much of SCIP's power system needs modernization, with 
        some facilities over eighty years old, well past their design 
        life. However, Federal budgetary and administrative policies 
        have impaired long-range, consistent planning and construction 
        necessary for efficient SCIP operation and maintenance and for 
        timely replacement of obsolete or worn-out facilities.
            (7) Based on these conditions, Congress, by the San Carlos 
        Indian Irrigation Project Divestiture Act of 1991, authorized 
        the Secretary of the Interior to transfer the electrical 
        transmission and distribution system of SCIP to the Gila River 
        Indian Community, the San Carlos Apache Tribe and several 
        Arizona utilities, consistent with the agreements entered into 
        between and among them.
            (8) The agreements related to the San Carlos Indian 
        Irrigation Project Divestiture Act of 1991 have since expired 
        and the issues prompting the first divestiture have persisted.
            (9) Because SCIP is subject to 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>