Bill Text: AZ HCM2009 | 2025 | Fifty-seventh Legislature 1st Regular | Introduced
Bill Title: San Carlos irrigation project; divestiture
Spectrum: Partisan Bill (Republican 7-0)
Status: (Introduced) 2025-02-11 - House read second time [HCM2009 Detail]
Download: Arizona-2025-HCM2009-Introduced.html
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REFERENCE TITLE: San Carlos irrigation project; divestiture |
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State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
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HCM 2009 |
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Introduced by Representatives Martinez: Blackman, Griffin, Hendrix, Lopez, Rivero, Weninger
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A Concurrent Memorial
urging the United States Congress to enact legislation divesting the United States of the san carlos irrigation project electric system.
(TEXT OF BILL BEGINS ON NEXT PAGE)
To the Congress of the United States of America:
Your memorialist respectfully represents:
Whereas, the San Carlos irrigation project (SCIP) electric system is one of only two electric systems in the United States that are operated by the United States Bureau of Indian Affairs; and
Whereas, SCIP's primary energy source was intended to be electric power from hydropower projects; and
Whereas, extended drought in SCIP's geographic region continues to reduce hydropower generation, requiring SCIP to seek power on the open market; and
Whereas, due to federal procedures and regulations and oversight by the Bureau of Indian Affairs agency, SCIP faces challenges in securing purchased power through long-term contracts and is required to make most purchases on a cash basis from short-term contracts and the day ahead market, resulting in rate instability and unpredictable costs for customers; and
Whereas, in order to raise funds for capital improvements, SCIP recently had to significantly increase its rates up to 40%, which was an undue financial burden for its customers and resulted in many having their SCIP service cut off due to their inability to pay; and
Whereas, federal regulations limit the ability for SCIP to invest in its system through improvements that are funded outside of federal appropriations, therefore preventing SCIP from raising funds from bonds as other federal utilities do; and
Whereas, the large and rough geographic area of SCIP's territory, which is located on both tribal and nontribal lands, creates a service territory that is fragmented and difficult to maintain and, as a result, requires significant financial investment to upgrade and modernize; and
Whereas, the challenges with maintaining the system have led to system degradation, which has caused repeated and extended power outages impacting customers across the system during both the summer and winter seasons when customers are most reliant on electric service; and
Whereas, since the mid-1980s, problems have persisted with the SCIP system, resulting in congressionally approved legislation authorizing the Bureau of Indian Affairs to divest the SCIP electric system; and
Whereas, stakeholders, including impacted customers, have renewed efforts to improve the reliability and affordability of electric service for SCIP customers; and
Whereas, neighboring nonprofit public power utilities, the San Carlos Apache Tribe and the Gila River Indian Community have engaged in discussions to service the entire SCIP electric system and provide reliable, affordable and safe service to all SCIP customers within their respective community boundaries while supporting stable employment for SCIP employees.
Wherefore your memorialist, the Senate of the State of Arizona, the House of Representatives concurring, prays:
1. That the United States Congress pass legislation divesting the United States and the Bureau of Indian Affairs of the San Carlos irrigation project electric system.
2. That the United States Congress provide funding for a necessary system study and desperately needed improvements that will provide the reliable, affordable and safe power that San Carlos irrigation project customers deserve and are entitled to as citizens of the United States and Arizona.
3. That the Secretary of State of the State of Arizona transmit copies of this Memorial to the President of the United States Senate, the Speaker of the United States House of Representatives and each Member of Congress from the State of Arizona.
