Affordable Power for the Northern Marianas Act

The **Affordable Power for the Northern Marianas Act** directs how existing federal capital improvement project funding for the Commonwealth of the Northern Mariana Islands (CNMI) must be spent starting in Fiscal Year 2027. It requires $15 million of CNMI’s annual Covenant agreement funds to be dedicated specifically to local law enforcement/immigration needs and electric grid improvements.

* **The Commonwealth of the Northern Mariana Islands (CNMI):** Receives structured funding for specific local priorities without needing to provide local matching funds. * **The Secretary of the Interior:** Responsible for administering, prioritizing, and distributing the funds according to the rules in the bill. * **The Commonwealth Utilities Corporation (or its successor):** The public utility entity that must carry out or benefit from the funded electric grid projects.

* **Funding Allocations:** Beginning in Fiscal Year 2027, $15 million per year from CNMI's existing capital improvement funds under Section 702 of the Covenant agreement must be assigned as follows: * **Up to $3 million:** Allocated to address CNMI immigration, labor, or law enforcement issues. * **Remaining Balance:** Allocated to modernize, repair, expand, harden, or improve the efficiency, reliability, affordability, resilience, and stability of CNMI's electric energy system (including power generation, fuel storage, transmission, distribution, and control systems). * **Order of Funding:** The Secretary of the Interior **must** fully fund the immigration, labor, or law enforcement portion (up to $3 million) before releasing any funds for electric infrastructure. * **Electric Project Priorities:** The Secretary of the Interior **must** give priority to electric projects that are expected to: * Lower or stabilize electricity rates; * Reduce fuel or operating costs; * Protect against fuel price volatility; * Improve generation or system efficiency; or * Decrease the frequency, duration, or economic cost of power outages. * **Entity Requirement:** Electric projects **must** be executed by, through, or for the benefit of the Commonwealth Utilities Corporation (or its public utility successor). * **Cost-Sharing Waiver:** The Secretary of the Interior **is prohibited** from requiring CNMI to provide any local matching funds or cost-sharing for these electric infrastructure projects.

* Sets aside **$15 million per fiscal year** from existing CNMI Covenant capital improvement funding starting in FY 2027. * Spending breakdown: Up to **$3 million** for law enforcement, labor, or immigration; the remaining balance (at least **$12 million** if the maximum $3 million is used) for power infrastructure. * **No local match:** CNMI is not required to contribute local funds to receive the electric infrastructure grants. * **Total funding limit:** The bill does not change or increase the total overall amount of funding available across all U.S. insular areas under the existing Covenant agreement.

* **No Net Increase in Federal Spending:** The bill reallocates existing funds rather than creating new federal appropriations or increasing total overall insular area funding. * **Expiration / Termination:** These rules stay in place until a new multi-year funding agreement replaces the 2004 Covenant agreement. Beginning October 1 of the first year that a successor agreement takes effect, CNMI funding will instead follow the rules and amounts set by the new agreement.

Starting in Fiscal Year 2027, this bill forces $15 million of CNMI's existing annual federal funds to be spent on two specific priorities: up to $3 million for law enforcement and immigration issues, and the rest for electric grid improvements. It waives local matching funds and requires the federal government to prioritize projects that lower power costs and reduce outages.