HouseH.R. 10864119th Congress
San Carlos Irrigation Project Divestiture Act of 2026
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10864 Introduced in House (IH)]
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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.
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