San Carlos Irrigation Project Divestiture Act of 2026
- Sponsor
- Rep. Crane, Elijah [R-AZ-2]
- Committees
- Natural Resources Committee (primary)
- Last action
- Oct 22, 2026
Bottom line
The bill aims to transfer the San Carlos Irrigation Project's electric system from federal control to local not-for-profit utilities to improve service reliability and cost-effectiveness, while also promoting tribal self-determination and providing a general mechanism for BIA utility divestitures.
What it actually does
This bill authorizes and directs the Secretary of the Interior to divest the United States of ownership and operational responsibility for the electric transmission and distribution system of the San Carlos Irrigation Project (SCIP) in Arizona. It facilitates the transfer of these assets to a consortium of local not-for-profit utilities, reallocates associated federal power resources, and grants the Secretary broader authority to manage other Bureau of Indian Affairs (BIA) electric utility systems.
Proponents argue
Proponents argue that federal management of the SCIP electric system has resulted in outdated infrastructure, unreliable service, and high costs due to budgetary and administrative constraints. They contend that local not-for-profit utilities, with their ability to secure long-term power contracts and raise capital through bonds, can provide more efficient, reliable, and cost-effective service. Furthermore, supporters emphasize that this divestiture supports the Gila River Indian Community and San Carlos Apache Tribe's goals for greater self-determination and economic self-sufficiency.
Opponents contend
The bill text does not explicitly detail opposition arguments. However, potential concerns might revolve around ensuring the long-term financial stability of the receiving entities, the potential for increased rates for customers post-divestiture, or whether the transfer fully upholds the federal government's trust responsibility to the affected Indian tribes.
The bill is relatively short and clearly structured, making it accessible for a reader to understand its core provisions and implications within a reasonable timeframe.
Section 1
Short Title
This section establishes the official short name of the Act as the 'San Carlos Irrigation Project Divestiture Act of 2026.' This title provides a concise and easily recognizable reference for the legislation, facilitating discussion and legal citation.
Supporters argue
Supporters argue that a clear short title is standard legislative practice and essential for effective communication and legal referencing of the Act.
Critics contend
No specific opposition is typically raised against short title provisions as they are a routine part of legislative drafting.
Tradeoffs
None apparent for this provision.
Section 2
Congressional Findings and Purpose
This section outlines the historical context and challenges of the San Carlos Irrigation Project (SCIP), including its original purpose, the development of its hydroelectric system, and the subsequent issues with outdated infrastructure, unreliable power generation, and federal management constraints. It then states the Act's five core purposes: authorizing divestiture, facilitating an orderly transfer, ensuring safe and reliable power, reallocating federal power resources, and assisting tribal self-determination.
Section 3
Key Definitions
This section defines key terms used throughout the Act to ensure clarity and precise scope. It defines 'SCIP' as the San Carlos Irrigation Project, 'SCIP electric system' by specifying which electric transmission and distribution facilities are included (and explicitly excluding Coolidge Dam and its generating facilities), and 'Secretary' as the Secretary of the Interior. These definitions are crucial for the accurate implementation of the divestiture.
Section 4
Divestiture of SCIP Electric System and Associated Assets
This section directs the Secretary of the Interior to transfer the SCIP electric system and associated assets, overriding previous legislation. It mandates the Secretary to coordinate with federal, state, tribal, local, and private entities to create a transfer plan. The receiving entity(ies) are made responsible for administrative costs, though federal funding can be requested if necessary. The provision also clarifies that a reversion clause from the 1991 Divestiture Act will not apply, and the divestiture does not diminish the Secretary's responsibilities under the Arizona Water Settlements Act.
Section 5
Authorization for BIA Electric Utility Contracts
This section grants the Secretary of the Interior broad authority to contract for the sale, operation, maintenance, repairs, or relocation of any Government-owned electric utility systems operated by the Bureau of Indian Affairs (BIA) to Indian Tribes or other agreed-upon entities. Before executing such a contract, the Secretary must submit a copy to the Senate Committee on Energy and Natural Resources and the House Committee on Natural Resources, allowing a 60-day review period.
Authorizes the Secretary of the Interior to contract for the sale, operation, maintenance, repairs, or relocation of *any* Government-owned electric utility systems operated by the Bureau of Indian Affairs to Indian Tribes or other entities, subject to Congressional review.
Section 5
Why it matters:This appears to be a strategic inclusion to leverage the SCIP divestiture bill as a vehicle for a broader policy change regarding BIA-managed utilities, potentially streamlining future divestitures without needing separate legislation for each instance.
Case for: Supporters argue this provides essential flexibility and efficiency for BIA to manage its utility portfolio, enabling other tribes to pursue self-determination by taking control of their infrastructure without requiring individual acts of Congress.
Case against: Critics might argue that such a broad authority should be subject to more extensive debate and specific safeguards, rather than being included in a bill primarily focused on a single project, potentially leading to less scrutiny of future transfers.
Estimated impact: Potentially impacts all Indian Tribes currently served by BIA-operated electric utility systems nationwide, facilitating the transfer of federal assets and responsibilities.