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HCM 2009

San Carlos irrigation project; divestiture

57th Legislature - First Regular Session Introduced by Walt Blackman and 6 co-sponsors

Arizona memorial urges Congress to divest SCIP electric system from federal/BIA and fund a system study plus capital upgrades to restore reliable, affordable service.

Transmit to Secretary of State
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Bill Summary · HCM 2009

Summary — HCM 2009 (San Carlos irrigation project; divestiture)

Status: Passed both chambers; transmitted to Arizona Secretary of State March 28, 2025
Introduced: February 10, 2025
Classification: House Concurrent Memorial (concurrent memorial)
Primary sponsors: Rep. Martinez; co-sponsors Blackman, Griffin, Hendrix, Lopez, Rivero, Weninger

Purpose

HCM 2009 is a non‑binding concurrent memorial from the Arizona Legislature urging the U.S. Congress to (1) enact legislation divesting the United States and the Bureau of Indian Affairs (BIA) of ownership/operation of the San Carlos irrigation project (SCIP) electric system and (2) provide federal funding for a system study and capital improvements needed to restore reliable, affordable electric service.

Key provisions / requests

  • Requests that Congress pass legislation to divest the SCIP electric system from the federal government and the BIA.
  • Requests federal funding for a comprehensive system study and for capital improvements to the SCIP electric system.
  • Directs the Arizona Secretary of State to transmit copies of the memorial to the President of the U.S. Senate, the Speaker of the U.S. House, and each Arizona member of Congress.

Note: As a memorial, HCM 2009 does not itself change law; it expresses the State Legislature’s position and asks Congress to act.

Background and rationale

  • SCIP is one of only two electric systems in the U.S. operated by the BIA. Its original energy source was intended to be hydropower.
  • Extended regional drought has reduced hydropower generation, forcing SCIP to purchase power on the open market. Federal procurement rules and BIA oversight have constrained SCIP’s ability to enter long‑term contracts, pushing it to buy in short‑term/day‑ahead markets and creating rate volatility.
  • SCIP recently raised rates by up to 40% to finance capital needs, causing financial strain and disconnections for some customers.
  • Federal regulations limit SCIP’s ability to finance capital improvements outside of appropriations (e.g., issuing bonds), and the system’s fragmented service territory (tribal and nontribal lands across rough terrain) complicates maintenance and modernization.
  • Persistent issues since the mid‑1980s prompted prior congressional authorization for possible divestiture; current stakeholders and neighboring public power entities (including the San Carlos Apache Tribe and the Gila River Indian Community) have discussed taking over service.

Who would be affected

  • SCIP customers (residential and commercial on tribal and nontribal lands) — potential for improved reliability and rate stability if divestiture and investment occur.
  • SCIP employees — memorial notes potential for stable employment under local/public ownership.
  • The BIA and federal agencies — would relinquish ownership/operation if Congress acts.
  • Potential local/public purchasers (e.g., tribal utilities, nonprofit public power entities) — may assume operation and capital responsibility.

Potential impacts and limitations

  • Divestiture could enable local entities to access long‑term contracts, bond financing, and make needed upgrades, potentially stabilizing rates and improving reliability.
  • Outcomes depend on Congressional legislation, allocated funding amounts (none specified in the memorial), the terms of any transfer, and agreements among tribes and utilities.
  • As a memorial, HCM 2009 expresses Arizona’s request but does not compel federal action.

Legislative timeline (selected)

  • Introduced: 2025‑02‑10 (House first reading)
  • Passed House: 2025‑03‑03
  • Passed Senate: 2025‑03‑27
  • Filed in Arizona Secretary of State’s office: 2025‑03‑28

What happens next: The memorial has been transmitted to the U.S. Congress and Arizona’s federal delegation. Congressional action would be required to authorize divestiture and to appropriate any requested funding.

Compiled from official sources — confirm details with the bill’s official record.

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