Rep. Crane Introduces Bill to Address San Carlos Irrigation Project Power Issues

Yesterday, Rep. Eli Crane (R-AZ) introduced H.R. 10864, the San Carlos Irrigation Project Divestiture Act of 2026, to end federal ownership of the San Carlos Irrigation Project (SCIP) electric system. The legislation seeks to address longstanding reliability and affordability problems facing roughly 10,000 residential customers.

Congress created SCIP in 1924 to irrigate land on the Gila River Indian Reservation and surrounding areas, later adding a hydroelectric system at Coolidge Dam. Over the following decades, the Bureau of Indian Affairs (BIA) extended SCIP's lines to homes and businesses across approximately 2,400 square miles. However, low river flows limited the dam's output, and a flood in 1983 halted generation entirely.

SCIP now relies on short-term deals and the day-ahead market for power, as federal procedures make long-term contracts hard to secure. In turn, customers face expensive and inconsistent service. Because some facilities are more than 80 years old and SCIP cannot issue bonds to upgrade them, ratepayers absorb the cost through higher rates. Congress passed legislation in 1991 to authorize divestiture, but the conditions for the transfer were not met by the law's 1992 deadline. Since then, efforts have stalled while the issues have worsened for rural Arizonans.

Rep. Crane's bill directs the Secretary of the Interior to transfer SCIP's electric transmission and distribution system, excluding Coolidge Dam and its generating facilities, following a plan developed with federal, state, Tribal, local, and private stakeholders. Importantly, the measure would waive the 1991 law's reversion clause, which kept the system in government hands after the 1992 deadline passed, so the outdated provision could no longer block this new effort. It also preserves the Interior Department's existing SCIP responsibilities under the Arizona Water Settlements Act. More broadly, the Secretary would be authorized to contract with Tribes, or other mutually agreed-upon entities, to sell, operate, or maintain BIA-run electric systems, subject to congressional review.

Rep. Crane believes the BIA was never meant to be a residential power company, and divestiture would free SCIP's electric grid from nearly a century of bureaucratic constraints. After hearing from constituents whose livelihoods have suffered from unreliable, costly service, he asked the U.S. Department of the Interior's Office of Inspector General in September 2025 to investigate SCIP. With no meaningful findings more than a year later, he drafted this measure with input from customers, Tribal leaders, and utility providers.

"For decades, career politicians on both sides of the aisle have let this issue linger, and residents have paid the price through routine outages and rising bills. I'm not willing to continue that pattern by waiting for someone else to take action," said Rep. Crane. "My legislation would shift the system to operators who are better equipped to invest in it and serve its customers. While it won't fix everything overnight, it's a critical step toward delivering the dependable electricity these communities need. I'm hopeful this bill helps build momentum and encourages local leaders to work together on a long-term solution that finally puts an end to a flawed arrangement."