[Federal Register Volume 67, Number 7 (Thursday, January 10, 2002)]
[Rules and Regulations]
[Pages 1290-1295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-268]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 170

RIN 1076-AE28


Distribution of Fiscal Year 2002 Indian Reservation Roads Funds

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Temporary rule and request for comments.

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SUMMARY: We are issuing a temporary rule requiring that we distribute 
75 percent of fiscal year 2002 Indian Reservation Roads (IRR) Program 
funds to projects on or near Indian reservations using the relative 
need formula. As we did in fiscal years 2000 and 2001, we are using the 
Federal Highway Administration (FHWA) Price Trends report for 
information to calculate the relative need formula, with appropriate 
modifications to address non-reporting states. We are reserving up to 
$19.53 million to allow federally recognized tribes to apply for 
$35,000 each for administrative capacity building and other eligible 
transportation activities for fiscal year 2002 and we will distribute 
the balance of the remaining 25 percent of fiscal year 2002 IRR Program 
funds according to the relative need formula.

DATES: This temporary rule is effective January 10, 2002, through 
September 30, 2002. We will accept comments on this temporary rule 
until February 11, 2002.

ADDRESSES: You may send comments on the formula for distribution of the 
Fiscal Year 2002 IRR funds to: LeRoy Gishi, Chief, Division of 
Transportation, Office of Trust Responsibility, Bureau of Indian 
Affairs, 1849 C Street, NW., MS-4058-MIB, Washington, DC 20240. Mr. 
Gishi may also be reached at 202-208-4359 (phone), 202-208-4696 (fax), 
or [email protected] (electronic mail).

FOR FURTHER INFORMATION CONTACT: LeRoy Gishi, Chief, Division of 
Transportation, Office of Trust Responsibilities, Bureau of Indian 
Affairs, 1849 C Street, NW., MS-4058--MIB, Washington, DC 20240. Mr. 
Gishi may also be reached at 202-208-4359 (phone), 202-208-4696 (fax), 
or [email protected] (electronic mail).

SUPPLEMENTARY INFORMATION:

Background

Where Can I Find General Background Information on the Indian 
Reservation Roads Program, the Relative Need Formula, the FHWA Price 
Trends Report, and the Transportation Equity Act for the 21st Century 
(TEA-21) Negotiated Rulemaking Process?

    The background information on the IRR Program, the relative need 
formula, the FHWA Price Trends Report, and the TEA-21 Negotiated 
Rulemaking process is detailed in the Federal Register Notice dated 
February 15, 2000 (65 FR 7431). You may obtain additional information 
on the IRR Program web site at http://www.irr.bia.gov.

[[Page 1291]]

What Was the Basis for Distribution of Fiscal Years 2000 and 2001 
Funds?

    For fiscal year 2000 IRR Program funds, the Secretary published two 
interim rules distributing one-half of the funds in February 2000 and 
the second half of the funds in June 2000. For fiscal year 2001 IRR 
Program funds, the Secretary published two interim rules distributing 
75 percent of the funds in January 2001, and the remaining 25 percent 
of the funds in March 2001. These distributions followed the TEA-21 
Negotiated Rulemaking Committee's recommendation to the Secretary in 
January 2000 and November 2000 to distribute fiscal years 2000 and 2001 
IRR Program funds under the relative need formula used in 1998 and 
1999, while continuing to develop a proposed formula to publish for 
comment. In addition, in fiscal years 2000 and 2001 we modified the 
Federal Highway Administration Price Trends Report indices to account 
for two non-reporting states.

What Is the Basis for Distribution of Fiscal Year 2002 IRR Program 
Funds?

    The Transportation Equity Act for the 21st Century (TEA-21) 
provides that the Secretary develop rules and a funding formula for 
fiscal year 2000 and subsequent fiscal years to implement the Indian 
Reservation Roads program section of the Act. The Negotiated Rulemaking 
Committee created under Section 1115 of TEA-21 and comprised of 
representatives of tribal governments and the Federal Government has 
been diligently working to develop a funding formula that addresses the 
Congressionally identified criteria, Committee and tribal 
recommendations, and is consistent with overall Federal Indian Policy.
    The Committee is developing a permanent funding formula that will 
be published during 2002 in the Federal Register for public comment. In 
the meantime, there are about 1400 ongoing road and bridge construction 
projects on or near Indian reservations which need fiscal year 2002 
funding to continue or complete work. Partially constructed road and 
bridge projects could pose safety threats. Other road and bridge 
projects need to be planned or initiated in this fiscal year.
    This rule is published as a temporary rule only for interim funding 
for fiscal year 2002 and sets no precedent for the final rule to be 
published as required by Section 1115 of TEA-21. The TEA-21 Negotiated 
Rulemaking Committee agrees that an interim funding formula for fiscal 
year 2002 is needed. The Committee expects to recommend the publication 
of a formula for public comment so that a permanent formula can be 
established for fiscal year 2003, which will begin October 1, 2002. The 
interim formula for the current fiscal year will also provide tribes 
with the critical resources to develop inventory data, long-range 
transportation plans, transportation improvement programs and other 
information necessary to distribute funds under a new funding formula 
to be put in place for fiscal year 2003.
    The Secretary is basing this distribution on the TEA-21 Negotiated 
Rulemaking Committee's tribal caucus recommendation for distribution of 
fiscal year 2001 IRR Program funds.

How Will the Secretary Distribute Fiscal Year 2002 IRR Program Funds?

    Upon publication of this rule and upon enactment of the Department 
of Transportation Appropriations Act and receipt of contract authority 
from the Federal Highway Administration, the Secretary will distribute 
75 percent of fiscal year 2002 IRR Program funds based on the current 
relative need formula used in fiscal years 2000 and 2001, and the 
indices from the FHWA Price Trends Report with appropriate 
modifications for non-reporting states in the relative need formula 
distribution process. We will distribute fiscal year 2002 IRR Program 
funds to the twelve BIA regions using this distribution process. From 
the remaining 25 percent of fiscal year 2002 IRR Program funds, we are 
reserving $19.53 million for federally recognized tribes who apply for 
and have negotiated contracts or agreements for up to $35,000 for 
administrative capacity building and other eligible transportation 
activities under the IRR Program. We are requesting comments on the 
appropriateness of $19.53 million for administrative capacity building 
and the use of the current relative need formula for distribution of 
the remaining 25 percent of fiscal year 2002 IRR Program funds.

What Formula Components Are We Using for Distribution of Fiscal Year 
2002 IRR Program Funds and How Are They Related?

    The following diagram shows the relationship between components for 
fiscal year 2002 IRR Program funds distribution:

[[Page 1292]]

[GRAPHIC] [TIFF OMITTED] TR10JA02.002

What Data Are We Using for the Interim Distribution Funding Formula?

    We are using the most current road inventory data (September 2001) 
maintained by the Bureau of Indian Affairs.

What Is the Purpose of Administrative Capacity Building?

    The primary purpose of administrative capacity building is to 
provide all tribes an opportunity to participate in the IRR Program by 
updating transportation needs inventories and performing other 
transportation planning activities.

How Are We Distributing the Reserved Administrative Capacity Building 
Funds to the Twelve BIA Regions?

    The administrative capacity building funds are to be reserved at 
BIA until the application/award deadline is met. When we distribute the 
reserved administrative capacity building funds ($19.53 million) from 
the second distribution for 25 percent of fiscal year 2002 IRR Program 
funds, we will distribute to the twelve BIA regions based on the number 
of tribes in the region that request to participate by tribal 
resolution or other official action of the tribe.

How Will We Provide Administrative Capacity Building Funds to Tribes?

    Any federally recognized tribe may apply to the appropriate BIA 
region for administrative capacity building funds under the Indian 
Self-Determination and Educational Assistance Act (Pub. L. 93-638) no 
later than April 15, 2002.

How Will BIA Provide Administrative Capacity Building Services to 
Direct Service Tribes?

    The BIA regions will provide administrative capacity building 
services to tribes in their regions that request such services.

What Must a Self-Determination or Self-Governance Tribe Provide in Its 
Application to the BIA Region for Administrative Capacity Building 
Funds for Fiscal Year 2002?

    A self-determination or self-governance tribe must make application 
to the appropriate BIA Region by April 15, 2002 and must include:
    (a) Scope of work;
    (b) Detailed budget not to exceed $35,000; and
    (c) Official tribal resolution or other official action of the 
tribe requesting the funds.

What Will BIA Do With Any Reserved Funds That Have Not Been Awarded to 
Tribes for Administrative Capacity Building After August 15, 2002?

    We will distribute the remaining funds to the twelve BIA regions 
based on the relative need formula discussed in this rule. It is 
important that each tribe submit its application for administrative 
capacity building within the established deadlines so that we can make 
a timely reallocation of any reserved funds that are not awarded by 
August 15, 2002.

Are There Any Differences in the Distribution of Fiscal Year 2002 IRR 
Program Funds as Compared to the Distributions of Fiscal Years 2000 and 
2001 IRR Program Funds?

    The distribution of fiscal year 2002 IRR Program funds is based on 
the current relative need formula and the FHWA Price Trends Report 
indices that were used for the adjusted fiscal years

[[Page 1293]]

2000 and 2001 distribution. In February 2000 the Secretary partially 
distributed fiscal year 2000 IRR Program funds using the relative need 
formula. In June 2000 the Secretary distributed the remaining funds 
under the relative need formula by modifying the FHWA price trend 
report indices for two non-reporting states, Washington and Alaska, 
that impact tribes in those non-reporting states. In January 2001 the 
Secretary partially distributed fiscal year 2001 IRR Program funds 
using the relative need formula. In June 2001 the Secretary distributed 
the remaining funds under the relative need formula by modifying the 
FHWA price trend report indices for two non-reporting states, 
Washington and Alaska, that impact tribes in those non-reporting 
states. We are using the same modification process for non-reporting 
states for distribution of fiscal year 2002 IRR Program funds. For 
fiscal year 2001 we distributed funds in the same manner as in fiscal 
year 2000, except that we reserved up to $19.53 million for 
administrative capacity building for federally recognized tribes. We 
are distributing fiscal year 2002 funds in the same way as fiscal year 
2001 IRR Program funds.

Why Does This Temporary Rule Not Allow for Notice and Comment on the 
First Partial Distribution of Fiscal Year 2002 IRR Program Funds, and 
Why Is It Effective Immediately?

    Under 5 U.S.C. 553(b)(3)(B), notice and public procedure on the 
first partial distribution under this rule are impracticable, 
unnecessary, and contrary to the public interest. In addition, we have 
good cause for making this temporary rule for distribution of 75 
percent of fiscal year 2002 IRR Program funds effective immediately 
under 5 U.S.C. 553(d)(3). Notice and public procedure would be 
impracticable because of the urgent need to distribute 75 percent of 
fiscal year 2002 IRR Program funds. Approximately 1400 road and bridge 
construction projects are at various phases that require additional 
funds this fiscal year to continue or complete work, including 196 
deficient bridges and the construction of approximately 600 miles of 
roads. Fiscal year 2002 IRR Program funds will be used to design, plan, 
and construct improvements (and, in some cases, to reconstruct 
bridges). Without this immediate partial distribution of fiscal year 
2002 IRR Program funds, tribal and BIA IRR projects will be forced to 
cease activity, placing projects and jobs in jeopardy. Waiting for 
notice and comment on this temporary rule would be contrary to the 
public interest. In some of the BIA regions, approximately 80 percent 
of the roads in the IRR system (and the majority of the bridges) are 
designated school bus routes. Roads are essential access to schools, 
jobs, and medical services. Many of the priority tribal roads are also 
emergency evacuation routes and represent the only access to tribal 
lands. Two-thirds of the road miles in Indian country are unimproved 
roads. Deficient bridges and roads are health and safety hazards. 
Partially constructed road and bridge projects and deficient bridges 
and roads jeopardize the health and safety of the traveling public. 
Further, over 200 projects currently in progress are directly 
associated with environmental protection and preservation of historic 
and cultural properties. This temporary rule is going into effect 
immediately because of the urgent need for partially distributing 
fiscal year 2002 IRR Program funds to continue these construction 
projects.
    Distribution of the remaining 25 percent of fiscal year 2002 IRR 
Program funds will be distributed under the same relative need formula 
as the first 75 percent of the funds after we review and consider 
comments.

Clarity of This Temporary Rule

    Executive Order 12866 requires each agency to write regulations 
that are easy to understand. We invite your comments on how to make 
this temporary rule easier to understand, including answers to 
questions such as the following: (1) Are the requirements in the 
temporary rule clearly stated? (2) Does the temporary rule contain 
technical language or jargon that interferes with its clarity? (3) Does 
the format of the temporary rule (grouping and order of sections, 
paragraphing, etc.) aid or reduce its clarity? (4) Is the description 
of the temporary rule in the SUPPLEMENTARY INFORMATION section of the 
preamble helpful in understanding the temporary rule? What else could 
we do to make the temporary rule easier to understand?

Regulatory Planning and Review (Executive Order 12866)

    Under the criteria in Executive Order 12866, this temporary rule is 
a significant regulatory action requiring review by the Office of 
Management and Budget because it will have an annual effect of more 
than $100 million on the economy. The total amount available for 
distribution of fiscal year 2002 IRR Program funds is approximately 
$226 million and we are distributing approximately $169.5 million under 
this temporary rule. Congress has already appropriated these funds and 
FHWA has already allocated them to BIA. The cost to the government of 
distributing the IRR Program funds, especially under the relative need 
formula with which the tribal governments and tribal organizations and 
the BIA are already familiar, is negligible. The distribution of fiscal 
year 2002 IRR Program funds does not require tribal governments and 
tribal organizations to expend any of their own funds.
    This temporary rule is consistent with the policies and practices 
that currently guide our distribution of IRR Program funds. This 
temporary rule continues to adopt the relative need formula that we 
have used since 1993, adjusting the FHWA Price Trends Report indices 
for states that do not have current data reports.
    This temporary rule will not create a serious inconsistency or 
otherwise interfere with an action taken or planned by another Federal 
agency. The FHWA has transferred the IRR Program funds to us and fully 
expects the BIA to distribute the funds according to a funding formula 
approved by the Secretary. This temporary rule does not alter the 
budgetary effects on any tribes from any previous or any future 
distribution of IRR Program funds and does not alter entitlement, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients.
    This temporary rule does not raise novel legal or policy issues. It 
is based on the relative need formula in use since 1993. We are 
changing determination of relative need only by appropriately modifying 
the FHWA Price Trend Report indices for states that did not report data 
for the FHWA Price Trends Report, just as we did for the distribution 
of fiscal year 2001 IRR Program funds.
    Approximately 1400 road and bridge construction projects are at 
various phases that depend on this fiscal year's IRR Program funds. 
Leaving these ongoing projects unfunded will create undue hardship on 
tribes and tribal members. Lack of funding would also pose safety 
threats by leaving partially constructed road and bridge projects to 
jeopardize the health and safety of the traveling public. Thus, the 
benefits of this rule far outweigh the costs. This rule is consistent 
with the policies and practices that currently guide our distribution 
of IRR Program funds. This rule continues to adopt the relative need 
formula that we have used since 1993.

Regulatory Flexibility Act

    A Regulatory Flexibility analysis under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq. is not required for this

[[Page 1294]]

temporary rule because it applies only to tribal governments, which are 
not covered by the Act.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is a major rule under 5 U.S.C. 804(2), the Small Business 
Regulatory Enforcement Fairness Act, because it has an annual effect on 
the economy of $100 million or more. We are distributing approximately 
$169.5 million under this temporary rule. Congress has already 
appropriated these funds and FHWA has already allocated them to BIA. 
The cost to the government of distributing the IRR Program funds, 
especially under the relative need formula with which tribal 
governments, tribal organizations, and the BIA are already familiar, is 
negligible. The distribution of the IRR Program funds does not require 
tribal governments and tribal organizations to expend any of their own 
funds.
    This rule will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. Actions under this rule will 
distribute Federal funds to Indian tribal governments and tribal 
organizations for transportation planning, road and bridge 
construction, and road improvements.
    This rule does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises. In 
fact, actions under this rule will provide a beneficial effect on 
employment through funding for construction jobs.

Unfunded Mandates Reform Act

    Under the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.), 
this temporary rule will not significantly or uniquely affect small 
governments, or the private sector. A Small Government Agency Plan is 
not required.
    This temporary rule will not produce a federal mandate that may 
result in an expenditure by State, local, or tribal governments of $100 
million or greater in any year. The effect of this temporary rule is to 
immediately provide 75 percent of fiscal year 2002 IRR Program funds to 
tribal governments for ongoing IRR activities and construction 
projects.

Takings (Executive Order 12630)

    With respect to Executive Order 12630, the rule does not have 
significant takings implications since it involves no transfer of title 
to any property. A takings implication assessment is not required.

Federalism (Executive Order 13132)

    With respect to Executive Order 13132, the rule does not have 
significant Federalism implications to warrant the preparation of a 
Federalism Assessment. This temporary rule should not affect the 
relationship between State and Federal governments because this rule 
concerns administration of a fund dedicated to IRR projects on or near 
Indian reservations that has no effect on Federal funding of state 
roads. Therefore, the rule has no Federalism effects within the meaning 
of Executive Order 13132.

Civil Justice Reform (Executive Order 12988)

    This rule does not unduly burden the judicial system and meets the 
requirements of sections 3(a) and 3(b)(2) of Executive Order 12988. 
This rule contains no drafting errors or ambiguity and is clearly 
written to minimize litigation, provide clear standards, simplify 
procedures, and reduce burden. This rule does not preempt any statute. 
We are still pursuing the TEA-21 mandated negotiated rulemaking process 
to set up a permanent funding formula distributing IRR Program funds. 
The rule is not retroactive with respect to any funding from any 
previous fiscal year (or prospective to funding from any future fiscal 
year), but applies only to 75 percent of fiscal year 2002 IRR Program 
funding.

Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this rule does 
not impose record keeping or information collection requirements or the 
collection of information from offerors, contractors, or members of the 
public that require the approval of the Office of Management and Budget 
under 44 U.S.C. 501 et seq. We already have all of the necessary 
information to implement this rule.

National Environmental Policy Act

    This rule is categorically excluded from the preparation of an 
environmental assessment or an environmental impact statement under the 
National Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq., 
because its environmental effects are too broad, speculative, or 
conjectural to lend themselves to meaningful analysis and the road 
projects funded as a result of this rule will be subject later to the 
National Environmental Policy Act process, either collectively or case-
by-case. Further, no extraordinary circumstances exist to require 
preparation of an environmental assessment or environmental impact 
statement.

Government-to-Government Relationship With Tribes

    Under the President's memorandum of May 14, 1998, Consultation and 
Coordination with Indian Tribal Governments (63 FR 27655) and 512 DM 2, 
we have evaluated any potential effects upon federally recognized 
Indian tribes and have determined that this rule preserves the 
integrity and consistency of the relative need formula process we have 
used since 1993. The only changes we are making from previous years 
(which we also made for fiscal years 2000 and 2001) IRR Program funds 
are to modify the FHWA Price Trends Report indices for non-reporting 
states which do not have current price trends data reports. The yearly 
FHWA Report is used as part of the process to determine the cost-to-
improve portion of the relative need formula. Consultation with tribal 
governments and tribal organizations is ongoing as part of the TEA-21 
negotiated rulemaking process and this distribution uses the TEA-21 
Negotiated Rulemaking Committee's tribal caucus recommendation.

List of Subjects in 25 CFR Part 170

    Highways and Roads, Indians--lands.


    For the reasons set out in the preamble, we are amending Part 170 
in Chapter I of Title 25 of the Code of Federal Regulations as follows.

PART 170--ROADS OF THE BUREAU OF INDIAN AFFAIRS

    1. The authority citation for part 170 continues to read as 
follows:

    Authority: 36 Stat. 861; 78 Stat. 241, 253, 257; 45 Stat. 750 
(25 U.S.C. 47; 42 U.S.C. 2000e(b), 2000e-2(i); 23 U.S.C. 101(a), 
202, 204), unless otherwise noted.


    2. Effective January 10, 2002, through September 30, 2002, add 
Sec. 170.4b to read as follows:


Sec. 170.4b  What formula will BIA use to distribute 75 percent of 
fiscal year 2002 Indian Reservation Roads funds?

    On January 10, 2002, we will distribute 75 percent of fiscal year 
2002 IRR Program funds authorized under Section 1115 of the 
Transportation Equity Act for the 21st Century, Public Law 105-178, 112 
Stat. 154. We will distribute the funds to Indian Reservation Roads 
projects on or near Indian reservations using the relative need formula 
established and approved in January 1993. We are modifying the formula 
to account for non-reporting States by inserting the latest data

[[Page 1295]]

reported for those States for use in the relative need formula process.

    Dated: December 19, 2001.
Neal A. McCaleb,
Assistant Secretary--Indian Affairs.
[FR Doc. 02-268 Filed 1-9-02; 8:45 am]
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