[Federal Register Volume 84, Number 243 (Wednesday, December 18, 2019)]
[Rules and Regulations]
[Pages 69602-69615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27399]



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Vol. 84

Wednesday,

No. 243

December 18, 2019

Part IV





Department of the Interior





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Bureau of Indian Affairs





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25 CFR Part 224





Tribal Energy Resource Agreements; Final Rule

  Federal Register / Vol. 84 , No. 243 / Wednesday, December 18, 2019 / 
Rules and Regulations  

[[Page 69602]]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 224

RIN 1076-AF47
[192D0102DR/DS5A300000/DR.5A311.IA000118]


Tribal Energy Resource Agreements

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Final rule.

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SUMMARY: The Bureau of Indian Affairs (BIA) is amending its regulations 
governing Tribal Energy Resource Agreements (TERAs) between the 
Secretary of the Interior (Secretary) and Indian Tribes. Tribes, at 
their discretion, may apply for TERAs. TERAs allow Tribes to enter into 
leases, business agreements, and rights-of-way for energy resource 
development on Tribal land without the Secretary's review and approval. 
This final rule updates the regulations to incorporate changes recently 
made by Congress to the Act authorizing TERAs. This rule also 
establishes how, as an alternative to entering into a TERA, a Tribe may 
obtain certification of a Tribal Energy Development Organization 
(TEDO).

DATES: This rule is effective on December 18, 2019.

FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Director, Office of 
Regulatory Affairs & Collaborative Action, (202) 273-4680; 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background
II. Responses to Comments on the Proposed Rule
    A. General Comments
    B. Comments on Consultation and Public Meetings
    C. Section-by-Section Comments
III. Overview of Final Rule
IV. Summary of Changes Made to the Proposed Rule
V. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771)
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement Fairness Act
    D. Unfunded Mandates Reform Act
    E. Takings (E.O. 12630)
    F. Federalism (E.O. 13132)
    G. Civil Justice Reform (E.O. 12988)
    H. Consultation with Indian Tribes (E.O. 13175)
    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Effects on the Energy Supply (E.O. 13211)

I. Background

    The Secretary is issuing these regulations under the authority of 
the Indian Tribal Energy Development and Self-Determination Act of 
2005, as amended by the Indian Tribal Energy Development and Self-
Determination Act Amendments of 2017, 25 U.S.C. 3501-3504, Public Law 
115-325, and 25 U.S.C. 2 and 9.
    In 2005, Congress passed a law authorizing Tribes, at their 
discretion, to apply for and enter into TERAs with the Secretary. See 
the Indian Tribal Energy Development and Self-Determination Act of 
2005, Title XXVI, Section 2604 of the Energy Policy Act (Pub. L. 109-
58). Upon Secretarial approval of a TERA, the Tribe may enter into 
energy-related leases, business agreements, and rights-of-way on Tribal 
lands without the Secretary's review and approval. The BIA finalized 
regulations to implement this authority in 2008 at 25 CFR part 224. See 
73 FR 12807 (March 10, 2008).
    TERAs further the Federal Government's policy of providing enhanced 
self-determination and economic development opportunities for Indian 
Tribes by promoting Tribal oversight and management of energy resource 
development on Tribal lands. TERAs provide another avenue, in addition 
to the Indian Minerals Development Act and the Indian Mineral Leasing 
Act, under which Tribes may develop their mineral resources. TERAs also 
support the national energy policy of increasing utilization of both 
renewable and nonrenewable domestic energy resources.
    Congress updated provisions authorizing TERAs in the Indian Tribal 
Energy Development and Self-Determination Act Amendments of 2017 (2017 
Amendments). The 2017 Amendments update the procedures and conditions 
for the Secretary's approval of TERAs, authorize Tribes to enter into 
leases and business agreements that pool a Tribe's energy resources 
with other energy resources and, among other things, establishes that 
energy-related leases, business agreements, and rights-of-way between a 
Tribe and certified TEDO do not require the Secretary's approval.
    On July 2, 2019, the BIA published a proposed rule to incorporate 
changes made by the 2017 Amendments into the TERA regulations. See 84 
FR 31529. The public comment period ended on September 3, 2019.

II. Responses to Comments on the Proposed Rule

    BIA received input from Tribes at a listening session on June 24, 
2019 in Sparks, Nevada, at the National Congress of American Indians 
Mid-Year Conference and at Tribal consultation sessions on July 11, 
2019, in Catoosa, Oklahoma; July 16, 2019, in Ignacio, Colorado; July 
18, 2019, in New Town, North Dakota; and July 23, 2019, by 
teleconference. BIA also received 14 written comment submissions. (To 
view all comments, search by Docket Number ``BIA-2019-0002'' in https://www.regulations.gov.) The following discussion addresses each topic 
raised by the comments.

A. General Comments

    Comment: Several commenters, including six Tribes and one Tribal 
organization, stated their overall support of the revisions. A few 
individual commenters stated their opposition or expressed concern that 
TERAs in general may weaken protections for individual Indian 
landowners or minerals rights holders.
    Response: The changes to the TERA regulations reflect statutory 
changes and are intended to encourage Tribes to enter into TERAs in 
support of Tribal self-governance. The regulation explicitly preserves 
the Department's trust responsibilities. See Sec.  224.40.

B. Comments on Consultation and Public Meetings

    Comment: One Tribe stated that BIA should have consulted with 
Tribes prior to publication of the proposed rule. An individual 
commenter requested a 90-day extension of the public comment period to 
obtain more input from individuals.
    Response: BIA was unable to consult prior to publication due to 
statutory timing constraints. Likewise, BIA is unable to accommodate 
the request for an extension of the public comment period. The 2017 
Amendments require publication of updates to the TERA regulations not 
later than December 18, 2019 (one year after the date of enactment of 
the 2017 Amendments). See Public Law 115-325, section 103(b).
    Comment: A few individual commenters requested BIA hold additional 
public meetings at the Fort Berthold Reservation in New Town, North 
Dakota, to provide majority trust landowners the opportunity to provide 
comment. One individual requested BIA hold both a special information 
session in Pawhuska, Oklahoma, and an election of the Osage headright 
owners to vote on whether they would like the Tribe to move forward 
with a TERA or TEDO before BIA approves any TERA or TEDO application 
from the Osage Nation.

[[Page 69603]]

    Response: The TERA regulations provide the opportunity for public 
comment before any TERA or TEDO application is approved. See Sec.  
224.67. Those provisions in the existing TERA regulations are unchanged 
by this final rule.

C. Section-by-Section Comments

1. Definitions (Sec.  224.30)
    Comment: One commenter suggested clarifying that ``decision 
deadline'' is a point in time rather than a period of time.
    Response: The final rule makes this change.
    Comment: One Tribe requested that ``energy resources'' be broadly 
defined to include growing crops or trees for biomass.
    Response: The existing regulation's definition of ``energy 
resources'' is broadly defined and includes biomass as an example.
    Comment: Several Tribes supported the definition of ``qualified 
Tribe'' in lieu of the requirement for the Secretary to determine 
Tribal capacity. One Tribe had several questions regarding what would 
meet the requirement for ``substantial experience'' in the second 
option. Another commenter asked whether ``substantial experience'' in 
the definition of ``qualified Tribe'' may include experience related to 
an agreement regarding resources on Tribal land that are developed 
elsewhere (e.g., an agreement to obtain oil on Tribal land and 
transport to a refinery off Tribal land).
    Response: The determination of what is ``substantial experience'' 
or ``substantial participation'' in the administration, review, or 
evaluation of energy resource leases or agreements depends on the scope 
of the proposed TERA. There is no standard for the number of energy-
related leases or agreements that a Tribe must have experience with, 
but the type of experience or substantial participation should be 
relevant. For example, experience in agreements regarding oil and gas 
wells, which involves significant front-end work, will differ from 
experience in agreements related to wind and solar farms, which 
involves significant back-end work on power purchase agreements. Other 
experience, such as treatment as a State status under the Clean Air Act 
may also be relevant. The definition of ``qualified Tribe'' allows two 
alternative means to qualify. Each requires a nexus to Tribal land. The 
second alternative would encompass experience with agreements regarding 
energy resources on Tribal land that are developed elsewhere.
    Comment: One individual commenter opposed deletion of the Tribal 
capacity requirements and stated opposition to removing environmental 
review.
    Response: The deletion of Tribal capacity requirements conforms to 
changes in the 2017 Amendments. The final rule does not remove 
environmental review.
    Comment: One commenter requested changing language in the 
definition of ``Tribe'' from ``because of their status as Indians'' to 
``because of their status as sovereign governments.''
    Response: While BIA recognizes that Tribes are sovereign 
governments, the wording of the definition referring to ``Indians'' 
comes from the original TERA statute, using the definition of ``Tribe'' 
from Public Law 93-638, which BIA is retaining here for consistency. 
See 25 U.S.C. 3504(e).
    Comment: A few commenters requested clarification that the Osage 
minerals estate falls within the phrase ``interests in land'' in the 
definition of ``Tribal land.''
    Response: BIA agrees that the definition of ``Tribal land'' 
includes the Osage minerals estate in its reference to ``interests in 
land,'' but for brevity declines to amend the definition to list every 
individual Tribal surface and/or mineral estate it covers.
    Comment: A Tribal organization commented that the definition of 
``TEDO'' contains inaccurate statutory citations and suggested adding 
language stating that the TEDO is organized under Tribal law and 
subject to Tribal jurisdiction, laws, and regulatory authority.
    Response: The final rule includes references to the correct 
citations, which are sections in the 2017 Amendments. The additional 
language is not necessary in the definition of TEDO because the Tribal 
law and Tribal jurisdiction language is provided in existing Sec.  
224.201(b) and (d).
2. Trust Responsibility (Sec.  224.40)
    Comment: Several commenters sought confirmation that the 
Secretary's trust responsibility and provisions of other statutes are 
unaffected by the TERA regulations or expressed concern that they will 
lose the trust responsibility protections of the Secretary if a Tribe 
enters into a TERA or TEDO.
    Response: The TERA regulations explicitly preserve the Secretary's 
trust responsibility. See Sec.  224.40. The TERA regulations do not 
affect who is considered a trust beneficiary, the 1906 Osage Allotment 
Act, or the ability of beneficiaries to elect to maintain their trustee 
for collection and disbursement of funds.
    Comment: A Tribe requested clarification on what actions the 
Secretary will or will not take to maintain his or her trust 
responsibility.
    Response: The existing TERA regulations set out what activities the 
Department will continue to perform after approval of a TERA. See Sec.  
224.82. Additionally, the application consultation meeting between the 
Tribal applicant and Secretary will identify the specific services 
consistent with the Secretary's ongoing trust responsibility and 
available resources that the Department would provide to the Tribe. See 
Sec.  224.58(c). These existing sections are unchanged by this final 
rule.
3. Pre-Application Consultation (Sec.  224.51)
    Comment: One commenter objected to the proposed change from the 
Director of IEED to the Secretary as participating in pre-application 
consultation because the Secretary's heavy schedule could cause delays.
    Response: The regulations' definition of ``Secretary'' includes the 
Secretary's designee. See Sec.  224.30. In the Departmental Manual, the 
Secretary delegates authority to the Assistant Secretary--Indian 
Affairs, and the Assistant Secretary is able to re-delegate down to 
other officials. See 209 DM 8. Using the term ``Secretary'' affords the 
Department the flexibility to delegate authorities to the most 
appropriate official at any given time.
    Comment: Two Tribes suggested adding a deadline, beginning when the 
Department receives the Tribe's pre-application, by which the Secretary 
must provide the required consultation to the Tribe. One of these 
commenters suggested a 30-day deadline.
    Response: A 30-day deadline for the entire pre-application 
consultation process may be unrealistic if there are scheduling 
challenges with the Department's and Tribe's schedules. Instead, the 
final rule incorporates a 30-day deadline for contacting the Tribe to 
schedule a pre-application consultation. See Sec.  224.51(b). This new 
deadline for coordination meets the spirit of the comment by ensuring 
that the Department will not delay responding to a pre-application and 
the process moves forward.
    Comment: A Tribe noted that BIA could provide additional legal and 
technical assistance beyond the pre-application consultation to include 
assistance in drafting the application and speeding up the approval 
process. This commenter also suggested the Department provide a 
template TERA.
    Response: The Department is available to provide assistance to 
Tribes,

[[Page 69604]]

beyond the formal pre-application consultation, in preparing a TERA. No 
templates are available at this time because it is not yet clear what 
standard approach would be most helpful without inadvertently limiting 
creative approaches.
4. Application Contents (Sec.  224.53)
    Comment: A Tribe and Tribal organization expressed support for 
removing requirements related to a determination of Tribal capacity.
    Response: The final rule finalizes this change.
    Comment: A Tribe pointed out that the proposed rule would require 
Tribes to submit information that the Department likely already has: A 
statement that the Secretary recognizes the Tribe and has Tribal land 
(proposed Sec.  224.53(a)(2)); a brief description of the Tribe's form 
of government (proposed Sec.  224.53(a)(3)); or documentation that the 
Tribal governing body has authority to enter into leases, rights-of-
way, and business agreements (proposed Sec.  224.53(b)).
    Response: The final rule deletes these provisions in response to 
this comment.
    Comment: The same Tribe also suggested the requirement for a map 
and description of Tribal land the Tribe intends to include in the TERA 
(Sec.  224.53(a)(5)) is duplicative with the requirement at Sec.  
224.53(c)(2).
    Response: The final rule retains both of these provisions because 
one provision requires a map and description of the Tribal land, while 
the other requires the Tribe to specify which energy resources or 
categories of energy-related leases, business agreements, or rights of 
way it intends to include in the TERA.
    Comment: The same Tribe stated that the provision at Sec.  
224.53(d)(1), requiring the Tribe to describe the scope of its plan for 
administration and management of activities, duplicates the provision 
at (d)(3), requiring the Tribe to describe the regulatory activities it 
desires to assume in the geographical area with respect to leases, 
business agreements, and rights-of-way that exist when a TERA is 
approved.
    Response: The first provision requires the Tribe to state its 
intent, if applicable, to regulate activities and describe a plan for 
administration and management, while the second provision requires the 
Tribe to describe which particular permitting, approval, or monitoring 
activities it plans undertake in the geographical areas it defines.
    Comment: One commenter requested that the Secretary require a 
forensic audit of all Tribal funds as a ``stress test'' before 
accepting a TERA or TEDO.
    Response: The final rule does not include a requirement for a 
forensic audit; including such a requirement would be inconsistent with 
other changes in the 2017 Amendments that limit the Secretary's 
examination of Tribal capacity to enter into a TERA.
5. How a Tribe Submits an Application (Sec.  224.54)
    Comment: A commenter suggested specifying only one means of 
submitting a TERA, clarifying that electronic submissions must be in 
searchable portable document format (PDF), and clarifying that the time 
period begins upon the Secretary's receipt of a submission in that 
form, to eliminate confusion on when the date of receipt occurred.
    Response: The final rule incorporates these suggestions by 
establishing email as the means of submission and requiring submissions 
be in PDF in Sec.  224.54. The electronic submission will provide 
certainty for both the Tribe and the Department as to the date of 
receipt. The final rule also makes this change to the TEDO section at 
Sec.  224.202 for the same reason.
    Comment: A commenter requested the rule clarify that a submission 
is not technically an ``application'' if it does not include all the 
required documents and information.
    Response: The requested clarification is not necessary because the 
existing regulations already specify that an application must be 
``complete'' and, if the application is not complete, then the 
Secretary must specify to the Tribe what additional information is 
required to make the application complete. See Sec.  224.56 and Sec.  
224.57.
6. Disclosure to Third Parties (Sec.  224.55)
    Comment: One Tribe stated that information submitted by Tribes 
should not be subject to disclosure to third parties under the Freedom 
of Information Act (FOIA) and that the procedures for identifying and 
justifying that information should be withheld as confidential or 
sensitive are burdensome.
    Response: Information submitted by Tribes to Interior is subject to 
disclosure to third parties under FOIA. U.S. Department of the Interior 
v. Klamath Water Users Protective Ass'n, 532 U.S. 1 (2001). The 
procedures in Sec.  224.55 for identifying and justifying that 
information should be withheld are standard FOIA Exemption 4 procedures 
that are in the existing regulation and are not being changed as a part 
of this rulemaking.
    Comment: A few commenters from one Tribe requested more disclosure 
of documents related to oil and gas production on their reservation and 
asked whether the Tribe could take over the responsibility to maintain 
custody of those records.
    Response: The individual terms of the TERA will determine what 
responsibilities a Tribe takes over; however, even if a Tribe were to 
take over as custodian of the records, the records would continue to be 
Federal records with proprietary information subject to withholding 
under FOIA exemptions.
7. Receipt of Complete Application (Sec.  224.56)
    Comment: A few commenters noted the 270-day deadline for the 
Secretary to issue a decision: Some stated that the time period is long 
and should be shortened, and others stated that the time period is 
reasonable considering all the steps that need to occur.
    Response: The 270-day timeline is in the existing regulations and 
was established by statute. This rule does not change that timeline.
    Comment: Two commenters stated that there is no statutory authority 
to allow a TERA to take effect prior to the 271st day or extend the 
deadline. Two other commenters suggested imposing a maximum on any 
extension to the 270-day period for making a decision.
    Response: In response to these comments, the final rule deletes 
provisions allowing for an extension of the deadline. This change will 
simplify the regulation to clearly provide that the TERA takes effect 
on the 271st day unless the Secretary disapproves it or approves it 
before that deadline. See, also, Sec. Sec.  224.62, 224.74. While a 
strict reading of the statute would mean that the TERA could take 
effect only on the 271st day and no earlier, such a strict reading 
would undermine the clear purposes of the statute (to streamline energy 
development and promote Tribal self-determination) by preventing a TERA 
from taking effect earlier. See, e.g., S. Rept. 115-84. See, also, 
Sec. Sec.  224.62, 224.74.
8. Financial Assistance (Sec.  224.57)
    Comment: One commenter stated that the new language providing that 
the Secretary will include, in the notice of a complete application, a 
notice of any available financial assistance duplicates the required 
TERA provision addressing financial assistance in Sec.  224.63(h).
    Response: The notice to the Tribe of available financial assistance 
may ultimately be different from what the Tribe and Secretary agree to 
include as part of the TERA, so these provisions are not duplicative.

[[Page 69605]]

9. Application Consultation Meeting (Sec.  224.58)
    Comment: One commenter stated that the application consultation 
meeting should take place no later than 195 days after the Secretary 
receives the TERA application.
    Response: The Department agrees with this commenter's calculation 
that the meeting should take place by that time, but is not including 
this benchmark in the rule in order to retain the flexibility afforded 
in the existing regulation, which provides that the meeting will occur 
as at the earliest practicable time. See Sec.  224.58(a).
    Comment: A commenter stated that the Department should be required 
to consult with other Federal agencies that may be impacted by a 
proposed TERA and resolve any conflicting requirements.
    Response: Paragraph (d) of this section provides that the Secretary 
will discuss the relationship of the Tribe to other Federal agencies 
with responsibilities for leases, business agreements, or rights-of-
way. In practice, the Department will strive to use this opportunity to 
resolve any conflicting requirements with other Federal agencies.
    Comment: A commenter also stated that paragraph (e), regarding a 
discussion of the Tribe's relationship to State and local governments 
and non-Indians who may be affected by a TERA, should not hinder or 
halt a TERA approval.
    Response: Discussion regarding those who may be affected by a TERA 
will not hinder or halt approval of the TERA because the final rule 
limits the grounds upon which a TERA may be disapproved. See Sec.  
224.71.
10. Review of Final TERA Proposal (Sec.  224.62)
    Comment: A Tribe stated that the regulation refers to a ``final 
proposed TERA'' without defining what that is. This commenter expressed 
concern that having both an original proposed TERA version and a final 
proposed TERA version would cause delays.
    Response: A final proposed TERA may differ from an original 
proposed TERA in a limited number of ways, as enumerated in Sec.  
224.62. The final proposed TERA is the version of the TERA that the 
Tribe submits after the application consultation meeting, which may 
address any recommendations provided by the Secretary in the report 
provided after the application consultation meeting. See Sec.  224.60. 
The 270-day deadline for a decision on a TERA begins to run from the 
time the Department receives the original proposed TERA, so there is no 
risk of delay. See Sec.  224.62.
    Comment: Two commenters again noted that the statute does not 
provide the Secretary discretion to extend the 270-day review period.
    Response: The final rule deletes provisions allowing for an 
extension of the deadline. This change will simplify the regulation to 
clearly provide that the TERA takes effect on the 271st day unless the 
Secretary disapproves it or approves it before that deadline. See, 
also, Sec. Sec.  224.62, 224.74.
11. Required TERA Provisions (Sec.  224.63)
    Comment: One Tribe stated that certain paragraphs (e.g., paragraph 
(c)(1), regarding public opportunity to comment) should not be 
construed to mean that public comment or non-Tribal entities may impact 
TERA application approval or continuation.
    Response: This section will impact TERA application approval or 
continuation only to the extent that the listed provisions must be 
included in a TERA for the Department to approve the TERA.
    Comment: One commenter stated that the provision requiring the 
environmental review process to identify and evaluate significant 
environmental effects and proposed mitigation measures should not be 
deleted because deletion will degrade trust land, water, and air 
quality.
    Response: The final rule retains provisions informing the public of 
the opportunity to comment on environmental impacts and provides for 
Tribal responses to relevant and substantive public comments before 
approval of the lease, right-of-way, or business agreement. The 
specific references to significant environmental effects and proposed 
mitigation were deleted in the proposed and final rule to conform to 
changes to the statute at 25 U.S.C. 3504(e)(2)(C).
12. Assuming Management of Different Resources Under TERAs (Sec.  
224.64)
    Comment: Tribes and Tribal organizations supported these revisions.
    Response: The final rule retains the proposed revisions.
13. Assuming Additional Activities Under TERA (Sec.  224.65)
    Comment: One Tribe requested that this section include a definite 
timeframe for Secretarial approval of an amendment to assume additional 
activities.
    Response: Because the Department has not yet developed any 
experience in reviewing TERA amendments by which to judge what 
timeframe would be most appropriate for such a review, the final rule 
does not include a definite timeframe at this point.
14. Reducing the Scope of TERAs (Sec.  224.66)
    Comment: One Tribe requested that this section include a definite 
timeframe for Secretarial approval of an amendment to reduce the scope 
of a TERA.
    Response: Because the Department has not yet developed any 
experience in reviewing TERA amendments by which to judge what 
timeframe would be most appropriate for such a review, the final rule 
does not include a definite time frame at this point.
    Comment: The Osage Minerals Council stated that, in the case of the 
Osage Nation, there is no single Tribal governing body that can 
unilaterally decide to reduce the scope of a TERA related to the Osage 
mineral estate, because both the Osage Minerals Council and the Osage 
Nation Congress and Chief would have to agree.
    Response: No change is made to the rule to address this comment 
because the regulation continues to define ``Tribal governing body'' to 
be a Tribe's governing entity, such as Tribal council or Tribal 
business committee, as established under Tribal or Federal law and 
recognized by the Secretary. See Sec.  224.30. In the case of the 
Osage, the Osage Minerals Council is ``an independent agency within the 
Osage Nation . . . with no legislative authority for the Osage Nation 
government.'' Osage Const., Art. XV Sec.  4. See also, Boone v. Osage 
Nation of Oklahoma, No. SCV-2015-01 (Supreme Court of the Osage Nation; 
September 9, 2016). Thus, under the Osage Constitution and a decision 
of the Osage Supreme Court, the ``Tribal governing body'' as defined in 
the TERA regulations is the Chief and Osage Nation Congress, not the 
Osage Minerals Council. The Department will not insert itself into the 
internal consultation process of the Osage Nation government.
15. Public Notification and Comment (Sec. Sec.  224.67-224.68)
    Comment: Two Tribes expressed concern that allowing for comment 
from the public, States, or local governments on a TERA would derail 
the Tribe's plans and requested adding language to protect Tribes from 
undue influence.
    Response: The Tribe and Secretary may mutually agree to make 
changes to the TERA based on comments from the public, States, or local 
governments, but those comments cannot alone provide the basis for 
approving or disapproving

[[Page 69606]]

a TERA because the final rule restricts the basis for disapproving a 
TERA to three reasons. See Sec.  224.68 and Sec.  224.71.
    Comment: One Tribe suggested that Tribes provide a robust plan for 
public involvement and participation in Tribal projects under TERAs.
    Response: The Department defers to Tribes on the extent to which 
they involve their members and the public in Tribal projects under 
TERAs.
16. Standards To Approve a TERA (Sec.  224.71)
    Comment: All the comments received on this section supported the 
revisions in limiting grounds for disapproval.
    Response: The final rule retains these revisions.
17. Timing of Approval (Sec.  224.74)
    Comment: A commenter stated that there is no statutory authority to 
allow a TERA to take effect prior to the 271st day or extend the 
deadline.
    Response: The final rule deletes provisions allowing for an 
extension of the deadline. This change will simplify the regulation to 
clearly provide that the TERA takes effect on the 271st day unless the 
Secretary disapproves it or approves it before that deadline. See, 
also, Sec. Sec.  224.56, 224.62. The rule does delete the provision 
allowing for an earlier effective date because of the reasons stated in 
response to the comments on Sec.  224.56, above.
18. Action Upon Approval or Disapproval (Sec.  224.75)
    Comment: One Tribe expressed concern that the Department may wait 
until the last day to disapprove an application and require the Tribe 
to revise and resubmit the application multiple times. This Tribe 
suggested that the final rule limit the Secretary to one revision 
encompassing all needed changes or show cause for failing to request 
such changes the first time.
    Response: The final rule is designed to avoid the need for multiple 
resubmissions by first allowing the opportunity for a ``thorough 
discussion of the Tribe's application'' at the application consultation 
meeting (Sec.  224.58(b)) and then, after submission of the final 
proposed TERA, by requiring the Secretary to specify the changes or 
other actions required to address each reason for the disapproval 
(Sec.  224.75(b)).
    Comment: A Tribal organization suggested adding a requirement that 
the Secretary include notification in the approval that the Tribe may 
request non-expended amounts.
    Response: Section 224.79 provides notice of this opportunity.
    Comment: One commenter noted that the new approach that provides 
Tribes with the opportunity to revise and resubmit a TERA and requiring 
the Department to provide technical assistance to Tribes is consistent 
with contracting and compacting approvals under the Indian Self-
Determination and Education Assistance Act (ISDEAA).
    Response: The final rule includes these provisions.
19. Resubmission of TERA (Sec.  224.76)
    Comment: A commenter noted that the statute does not provide the 
Secretary discretion to agree with the Tribe to extend the period for 
resubmission review period or the period for a decision.
    Response: Provisions allowing for extensions have been deleted; see 
response to the last comment regarding Sec.  224.56.
20. Appeals of Secretary's Decision on TERA (Sec.  224.77)
    Comment: One Tribe stated that this section should be revised to 
allow a TEDO to appeal a Secretary's decision.
    Response: The final rule does not incorporate this suggested change 
because this section addresses appeals related to TERAs and a 
Secretary's decision on a TERA would not affect a TEDO, as the TEDO is 
an alternative to a TERA. The final rule does account for a TEDO's 
ability to appeal Departmental decisions or inaction in Sec.  224.181, 
however.
21. How Long a TERA Is in Effect (Sec.  224.78)
    Comment: A Tribe expressed support for the proposed changes 
providing that the TERA remains in effect unless and until the Tribe 
rescinds or the Secretary reassumes activities because these provisions 
provide certainty.
    Response: These provisions are included in the final rule.
22. Providing Unexpended Amounts to Tribe (Sec.  224.79)
    Comment: One Tribe stated that TEDOs should also have the 
opportunity to obtain unexpended amounts.
    Response: No change has been made to address this comment because 
the statute limits the availability of unexpended amounts to Tribes 
with a TERA. Additionally, because TEDOs do not take over any 
Departmental activities, there would be no unexpended amounts 
associated with a TEDO.
    Comment: A few Tribes stated that the rule should include more 
detail on how the Secretary will calculate the amount of unexpended 
funds to provide to Tribes.
    Response: The rule provides a basic framework for accounting 
because the accounting depends on the scope and breadth of activities 
each Tribe undertakes in its TERA. The Department will, by necessity, 
analyze on a case-by-case basis the particular functions undertaken, 
the funding available for those functions, and the extent to which 
there will be unexpended funds remaining when the Tribe takes over the 
functions. The accounting will be too specific to each TERA to provide 
a detailed breakdown of how the Department will calculate unexpended 
funds across the board.
    Comment: One commenter asked that this section clarify that 
unexpended funds are available based on the availability of 
appropriations.
    Response: While it is true that the availability of appropriations 
will affect the amount of unexpended funds that are available, the 
Department declines to specify this in the final rule because this fact 
applies nearly universally.
23. When a Tribe May Grant a Right-of-Way (Sec.  224.84)
    Comment: One Tribe supported revisions to this section that broaden 
the types of rights-of-way that may be included in a TERA.
    Response: The final rule includes these revisions.
    Comment: One commenter suggested making a technical edit to delete 
the word ``renewable'' from the parenthetical description in paragraph 
(a) because the regulatory definition of ``energy resources'' includes 
both renewable and nonrenewable.
    Response: The final rule does not make this edit because the term 
``renewable energy resources'' is an example of a source of electricity 
production, rather than a restriction on the source of electricity 
production. This example is included in the statute and carried into 
the regulation because it appears that Congress intended to emphasize 
that an electric production facility includes one that produces 
electricity from renewable energy resources. See 25 U.S.C. 3504(g).
24. When a Tribe May Enter Into a Lease or Business Agreement (Sec.  
224.85)
    Comment: A commenter suggested, in paragraph (d) (which addresses 
pooling, unitization, or communitization of energy mineral resources), 
deleting the word ``mineral'' from ``energy mineral resources'' and 
adding the word ``mineral'' at the end of the sentence to read ``or 
other mineral resources''.

[[Page 69607]]

    Response: The Department did not make these edits because the 
wording included in the rule currently matches the wording in the 
statute. In particular, the rule does not delete the word ``mineral'' 
specifying that pooling, unitization, or communitization is for 
``energy mineral resources'' because it appears Congress intended this 
paragraph to apply only to mineral resources.
25. Interested Party Petitions (Sec.  224.101) and Requirements Before 
Filing a Petition (224.107)
    Comment: One Tribe suggested defining the phrase ``substantial 
evidence'' in this section, which requires persons or entities to 
demonstrate with substantial evidence that they have sustained or will 
sustain, an adverse environmental impact as a result of a Tribe's 
failure to comply with a TERA.
    Response: The Department declines to define ``substantial 
evidence'' in order to allow for a case-by-case analysis.
    Comment: Two individual commenters objected to limiting who is 
considered an interested party to those able to demonstrate the adverse 
environmental impact with substantial evidence, and to the requirement 
that an interested party exhaust all Tribal remedies. A Tribe supported 
limiting who is considered an interested party and requiring exhaustion 
of all Tribal remedies before filing a petition with the Secretary as 
affirming Tribal self-determination and acknowledging that Tribes are 
responsible for managing the TERA.
    Response: The final rule incorporates changes made by Congress to 
limit who is an interested party and require exhaustion of ``all'' 
Tribal remedies before filing a petition. See 25 U.S.C. 3504(e)(7)(A).
    Comment: A Tribe stated that the provisions regarding interested 
party petitions may be unduly burdensome and interfere with Tribal 
business because in the past, non-Tribal comments have derailed 
proposed actions of Tribes. This commenter suggested adding language to 
protect Tribes from undue influence.
    Response: The public comment procedures included in the regulation 
are established by statute. The revisions include protections for 
Tribes by limiting who is considered an interested party, requiring 
interested parties to first exhaust all Tribal remedies, and by 
limiting the grounds on which the Secretary may disapprove of a TERA. 
See Sec. Sec.  224.101, 224.107, and 224.71, respectively.
26. Action To Ensure Compliance (Sec.  224.120)
    Comment: A Tribe stated that, when the Secretary reassumes 
activities under a TERA, Tribes should have the opportunity for a 
hearing and the Secretary should have the burden of proving by clear 
and convincing evidence the grounds for the reassumption.
    Response: Later provisions in the regulation set out the processes 
for the Secretary to notify the Tribe of noncompliance, including the 
opportunity for a hearing, and the process for the Secretary to 
reassume functions. See Sec. Sec.  224.115 through 224.121, and 224.136 
through 224.161. This rulemaking does not change these processes.
27. Appeal of Secretary's Decision on Tribal Compliance With a TERA 
(Sec.  224.121)
    Comment: One commenter suggested technical edits to clarify that 
the Secretary's designees will be carrying out the regulation because, 
otherwise, it appears odd for the Principal Deputy Assistant 
Secretary--Indian Affairs to be the arbiter of actions taken by the 
``Secretary.''
    Response: The regulation refers to ``Secretary'' in order to 
provide the Secretary with the maximum flexibility as to who to 
designate to act on his or her behalf. See response to comment 
regarding delegation under ``3. Pre-Application Consultation (Sec.  
224.51), above.
28. Appeals of Departmental Decisions (Sec. Sec.  224.181-224.185)
    Comment: One individual commenter objected to the regulations' 
limit on who may appeal to only those who are adversely affected, as 
limiting the ability of a Tribal member to appeal and to limiting the 
basis of the appeal to those issues raised in prior participation in 
the petitioning process. Another commenter requested adding a paragraph 
to clarify that the person may petition under the First Amendment to 
the U.S. Constitution.
    Response: The Department did not propose any changes to the rights 
of an interested party to appeal, and is not making any changes in the 
final rule to an interested party's right to appeal. To the extent 
someone would have the right to petition under the First Amendment to 
the U.S. Constitution notwithstanding Congress's limitations on appeals 
as reflected in this rule, that right would exist regardless of whether 
the Department makes the right explicit in the rule.
29. TEDOs (Subpart J)
    Comment: Several Tribes expressed their strong support of 
provisions allowing for TEDOs, stating that these provisions promote 
Tribal self-determination and Tribal economic development and provide 
additional opportunities for Tribes to develop their energy resources. 
One Tribe requested clarification that a TEDO may consist of more than 
one Tribe.
    Response: The final rule includes the proposed provisions for 
certification of TEDOs as an alternative to TERAs. Paragraph (2) of the 
definition of ``TEDO'' already allows for two or more Tribes to 
organize as a TEDO. See Sec.  224.30.
    Comment: A Tribe requested clarification regarding whether a Tribe 
could enter into a TEDO with another entity if the other entity has a 
refinery that is not on Tribal land.
    Response: The regulations would allow a Tribe to enter into a TEDO 
with another entity if the other entity has a refinery not on Tribal 
land, as long as the Tribe owns and controls the majority of the 
interest in the TEDO and owns the Tribal land being developed (i.e., 
the energy resources being developed for transfer to the refinery are 
on Tribal land). See Sec.  224.201(c).
    Comment: A Tribe requested clarification on whether a joint venture 
organized under State laws (e.g., a Delaware limited liability company) 
could be certified as a TEDO.
    Response: Both the statute and regulations provide that the joint 
venture must be organized under the Tribe's law to be certified as a 
TEDO. See 25 U.S.C. 3504(h)(2)(B), and 25 CFR 224.201(b).
    Comment: One commenter asked whether a Tribe could do both a TEDO 
and a TERA and what the difference between the two is.
    Response: The TEDO is an alternative to a TERA that allows a Tribe 
to create its own entity as a TEDO or enter into a joint venture with 
other Tribes or non-Tribal entities as a TEDO and then, once the 
Secretary certifies the TEDO, the Tribe can enter into leases, rights-
of-way, and business agreements with the TEDO without the Secretary's 
approval. A TERA, on the other hand, is an agreement between the Tribe 
and the Secretary that allows the Tribe to enter into leases, rights-
of-way, and business agreements with any other entity or person (not 
just a TEDO). It would be possible for a Tribe to create a TEDO and 
also have a TERA with the Secretary.
    Comment: A commenter suggested a technical edit to clarify that the 
Tribe

[[Page 69608]]

must exercise sovereign authority over the Tribal land being developed 
by a TEDO.
    Response: The current language ``the Tribal land of which is being 
developed'' appears in several sections of the regulation and was not 
proposed for change; therefore, the final rule retains this language. 
See, e.g., Sec. Sec.  224.201(c), (d), and 224.205(a)(2), (4).
    Comment: An individual commenter stated that the intent of this 
language is to withhold trust responsibilities of the Federal 
government, especially when an individual Tribal member's energy 
resources are included in a TEDO, and that this does not comply with 
the Federal government's trust responsibility to individual Tribal 
members.
    Response: While a lease of individual Tribal member energy 
resources could be included in a Tribe's pooling, unitization, or 
communitization agreement with a TEDO, the usual requirements for 
landowner consent would still apply. Additionally, the regulation 
states that the Act preserves the Secretary's trust responsibilities 
relating to trust resources. See Sec.  224.40.

D. Inherently Federal Functions

    Comment: Several Tribes and other commenters expressed the need to 
define ``inherently Federal functions'' to clarify what functions are 
not available for Tribes to undertake in a TERA. According to these 
Tribes, a definition is necessary for several reasons, including to 
address issues, provide certainty, and ensure consistency in 
interpretation. A few requested that the definition exclude basic 
minerals development functions, like applications for permits to drill, 
thereby allowing Tribes to undertake these functions through TERAs. A 
Tribal organization commenter requested consultation with Tribes before 
the Department defines the term.
    Response: The Department has undertaken efforts to define 
``inherently Federal functions'' based on years of Tribal input and 
anticipates releasing a list of functions that it has determined to be 
``inherently Federal'' in the near future.

E. Other Comments

    Comment: Two Tribes requested that the TERA regulations address 
dual taxation by clarifying that Tribes are the exclusive sovereign 
authority to tax improvements and activities on lands and energy 
development under TERAs.
    Response: The leasing and right-of-way regulations at 25 CFR part 
162 and 169, respectively, each include provisions that address 
taxation; these provisions apply to surface leases and rights-of-way 
under TERAs.
    Comment: One commenter stated that the rule will adversely affect 
property rights.
    Response: The rule does not affect property rights in any way 
because the Tribe is requesting the right to approve agreements related 
to Tribal land. In cases where an individual's land may be affected 
through pooling, unitization, or communitization, the requirements to 
obtain the consent of individual landowners remain.
    Comment: A few commenters asked how the National Environmental 
Policy Act (NEPA) applies to the rule and to actions taken under a 
TERA. One commenter stated the rule will be a major Federal action 
significantly affecting the quality of the human environment.
    Response: The rule will not significantly affect the quality of the 
human environment, because no action is being taken with a TERA except 
that the Tribe takes over for the Department as approving authority for 
individual leases, rights-of-way, and business agreements on Tribal 
land. The regulation requires the TERA to include an environmental 
review process for the individual leases, business agreements, and 
rights-of-way entered into under the TERA. See Sec.  224.63(c). The 
regulation also requires the Secretary to issue a notice advising the 
public when it receives a final proposed TERA of any NEPA review it is 
conducting related to approval of the final proposed TERA. See Sec.  
224.67(a)(2).
    Comment: Two commenters asked for economic analysis of how the rule 
could impact different Tribes or how much it costs to administer 
mineral estates.
    Response: Any economic effect of the TERA regulations on Tribes 
would be too speculative to estimate at this point because the 
economics will depend on whether any Tribe enters a TERA and what 
functions each Tribe chooses to undertake. To date, no Tribe has 
entered into a TERA, so there is no baseline for estimating what 
potential economic impacts may be.
    Remaining comments addressed issues specific to one individual 
Tribe, advocated for funding, were out of scope, or addressed 
implementation, rather than the regulation itself.

III. Overview of Final Rule

    This rule addresses the requirements of the Indian Tribal Energy 
Development and Self-Determination Act Amendments of 2017 (2017 
Amendments). Wherever possible, BIA has interpreted these statutory 
changes in a manner that will impose the least burden on Tribes. As 
described in more detail, below, the rule: (1) Reduces the information 
Tribes must provide in TERA applications; (2) imposes timelines on the 
Secretary for review and approval of TERAs; (3) limits the grounds on 
which the Secretary may disapprove a TERA and require an explanation of 
each of the grounds; (4) establishes a process for amending a TERA; (5) 
narrows who may be considered an interested party and procedures for 
petitioning and for the Secretary's handling of interested party 
petitions; (6) addresses how BIA will provide unexpended funds to 
Tribes; (7) establishes a process and criteria for certifying TEDOs ; 
and (8) makes various technical nomenclature and other technical edits.

A. Information Required in Applications for TERAs

    The 2017 Amendments deleted a requirement for the Secretary to 
consider the capacity (experience in managing natural, financial and 
administrative resources) of a Tribal applicant to carry out a TERA. 
See Section 103(a) of the 2017 Amendments. To reflect this deletion, 
the rule deletes several TERA application items and several required 
TERA provisions.

B. Timelines

    The rule incorporates timelines established by the 2017 Amendments 
to ensure that the TERA application process moves forward in a timely 
manner. Specifically, the rule:
     Requires the Secretary to contact the Tribe within 30 days 
of receiving a pre-application consultation request;
     Requires the Secretary to do the following within 30 days 
of a Tribe submitting a TERA:
    [cir] Notify the Tribe as to whether the agreement is complete or 
incomplete;
    [cir] If the agreement is incomplete, notify the Tribe of what 
information or documentation is needed to complete the submission; and
    [cir] Identify and notify the Tribe of the financial assistance, if 
any, to be provided by the Secretary to the Tribe to assist in the 
implementation of the TERA, including the environmental review of 
individual projects.
     Establishes that a TERA takes effect 271 days after the 
Secretary receives the TERA, unless the Secretary approves the TERA to 
take effect on an earlier date, or the Secretary disapproves the 
application before the 271st day.
     Establishes that a revised TERA takes effect 91 days after 
the Secretary receives the TERA, unless the Secretary and the Secretary 
approves the revised TERA to take effect on an earlier date,

[[Page 69609]]

or the Secretary disapproves it before the 91st day.
    The rule also incorporates statutory requirements that the TERA 
remains in effect to the extent any provision is consistent with 
applicable Federal law (including regulations), unless the Secretary 
reassumes the authority by necessity to protect the physical trust 
asset or the Tribe voluntarily rescinds the TERA pursuant to the 
regulations.

C. Grounds for Disapproval of a TERA

    The rule promotes certainty in the TERA application process by 
limiting the grounds upon which the Secretary may disapprove a TERA. 
Specifically, the rule establishes that the Secretary may disapprove a 
TERA only if:
     The Tribe does not meet the definition of a ``qualified 
Tribe;''
     A provision of the TERA violates applicable Federal law, 
regulations, or a treaty; or
     The TERA fails to include certain provisions.
In addition, the rule provides that, where the Secretary does 
disapprove a TERA application, the Secretary must provide the Tribe 
with a detailed, written explanation of each reason for a disapproval, 
specify the revisions or changes to the TERA necessary to address each 
reason, and offer the Tribe an opportunity to revise and resubmit the 
TERA.

D. Amendments to TERAs

    The rule provides more flexibility to the Tribe, in that it 
establishes a process to amend an approved TERA to assume authority for 
approving leases, business agreements, or rights-of-way for development 
of another energy resource that is not already covered, without 
requiring the Tribe to apply for a new TERA.

E. Petitions by Interested Parties

    The rule updates the existing current regulatory process for 
ensuring that the public is informed of, and has reasonable opportunity 
to comment on, environmental impacts by:
     Limiting who is considered an interested party to those 
able to demonstrate their interest with substantial evidence;
     Requiring exhaustion of all remedies provided under Tribal 
law before an interested party may submit to the Secretary a petition 
to review Tribal compliance with the TERA;
     Requiring the Secretary to determine whether the 
petitioner is an interested party and whether the Tribe is not in 
compliance with the TERA as alleged in the petition;
     Limiting the Secretary to taking only such action as the 
Secretary determines is necessary to address the noncompliance claims; 
and
     Requiring the Secretary to dismiss a petition if the Tribe 
and interested party who filed the petition reach a resolution of the 
petition's claims.

F. Unexpended Amounts

    The rule broadly sets out the manner in which the Secretary will 
provide to a requesting Tribe the amounts that the Secretary would have 
spent carrying out activities the Tribe carries out in the TERA 
(unexpended amounts), and will provide the Tribe with an accounting of 
those unexpended amounts.

G. Certification of TEDOs

    The rule establishes a process for the TEDOs to obtain 
certification from the Secretary so that they may enter into leases, 
business agreements, and rights-of-way with Tribes on Tribal land 
without Secretarial approval. See Section 103(b) of the 2017 
Amendments.

H. Nomenclature and Technical Changes

    The rule also makes changes to:
     Capitalize ``Tribe'' consistent with the Government 
Printing Office Manual;
     Add reference to the annual list of federally recognized 
Tribes in the definition of ``Tribe;''
     Replace ``Director'' of the Office of Indian Energy & 
Economic Development (IEED) with ``Secretary'' to indicate the 
Secretary of the Interior and maintain delegation flexibility, except 
where necessary to provide for administrative appeal options; and
     Add an address for receipt of TERA applications and 
requests for TEDO certifications.

IV. Summary of Changes Made to Proposed Rule

    The Department made the following changes to the proposed rule in 
response to comments, as described above:
     In Sec.  224.30, updated the definition of ``decision 
deadline'' to refer to an end date rather than a period of time, and 
corrected U.S.C. citations in the definition of ``Tribal energy 
development organization (TEDO)'';
     In Sec.  224.51, added a requirement for the Secretary to 
contact the Tribe within 30 days of receiving a request for pre-
application consultation;
     In Sec.  224.53, deleted requirements for the TERA 
application to include a statement that the Tribe is federally 
recognized and has Tribal land, a brief description of the Tribe's form 
of government, and documents such as a Tribal constitution;
     In Sec. Sec.  224.54 and 224.202, eliminated the need to 
submit a hard copy application and instead required Tribes and TEDOs to 
email a searchable, portable document format (PDF);
     In Sec. Sec.  224.56, 224.62, 224.74, and 224.76, deleting 
provisions allowing the Secretary to extend time periods; and
     In Sec.  224.181, adding that a TEDO may appeal 
Departmental decisions or inaction.
    The Department also made an additional conforming edit to the 
proposed rule, which now appears in the final Sec.  224.59 to delete 
reference to a determination of the Tribe's capacity.

V. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771)

    Executive Order (E.O.) 12866 provides that the Office of 
Information and Regulatory Affairs (OIRA) at the Office of Management 
and Budget (OMB) will review all significant rules. OIRA has determined 
that this rule is not significant.
    E.O. 13563 reaffirms the principles of E.O. 12866 while calling for 
improvements in the Nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The E.O. directs agencies to consider regulatory approaches that reduce 
burdens and maintain flexibility and freedom of choice for the public 
where these approaches are relevant, feasible, and consistent with 
regulatory objectives. E.O. 13563 emphasizes further that regulations 
must be based on the best available science and that the rulemaking 
process must allow for public participation and an open exchange of 
ideas. We have developed this rule in a manner consistent with these 
requirements. This rule is also part of the Department's commitment 
under the Executive Order to reduce the number and burden of 
regulations.
    E.O. 13771 of January 30, 2017, directs Federal agencies to reduce 
the regulatory burden on regulated entities and control regulatory 
costs. OIRA has determined that this rule is deregulatory because the 
updates will reduce the requirements and annual burden hours imposed on 
Tribes seeking to enter into a TERA.

B. Regulatory Flexibility Act

    The Department of the Interior certifies that this rule will not 
have a significant economic effect on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

[[Page 69610]]

C. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more because it merely codifies eligibility requirements that were 
already established by past practice and a Federal District Court 
ruling.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions because this rule affects only 
individuals' eligibility for certain education contracts.
    (c) 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 
because this rule affects agreements between Tribes and the Department 
to allow Tribes to authorize individual leases, business agreements, 
and rights-of-way on Tribal land

D. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or 
Tribal governments or the private sector of more than $100 million per 
year. The rule does not have a monetarily significant or unique effect 
on State, local, or Tribal governments or the private sector. A 
statement containing the information required by the Unfunded Mandates 
Reform Act (2 U.S.C. 1531 et seq.) is not required.

E. Takings (E.O. 12630)

    This rule does not affect a taking of private property or otherwise 
have taking implications under Executive Order 12630 because this rule 
does not affect individual property rights protected by the Fifth 
Amendment or involve a compensable ``taking.'' A takings implication 
assessment is not required.

F. Federalism (E.O. 13132)

    Under the criteria in section 1 of Executive Order 13132, this rule 
does not have sufficient federalism implications to warrant the 
preparation of a federalism summary impact statement because the rule 
affects only agreements entered into by Tribes and the Department. A 
federalism summary impact statement is not required.

G. Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of Executive Order 12988. 
Specifically, this rule: (a) Meets the criteria of section 3(a) 
requiring that all regulations be reviewed to eliminate errors and 
ambiguity and be written to minimize litigation; and (b) Meets the 
criteria of section 3(b)(2) requiring that all regulations be written 
in clear language and contain clear legal standards.

H. Consultation With Indian Tribes (E.O. 13175)

    The Department of the Interior strives to strengthen its 
government-to-government relationship with Indian Tribes through a 
commitment to consultation with Indian Tribes and recognition of their 
right to self-governance and Tribal sovereignty. We have evaluated this 
rule under the Department's consultation policy and under the criteria 
in Executive Order 13175 and have determined that it has substantial 
direct effects on federally recognized Indian Tribes because the rule 
affects the criteria, process, and effectiveness of agreements Tribes 
may enter into with the Department of the Interior to develop energy 
resources. The Department hosted consultation sessions with Tribes and 
individually notified each federally recognized Tribe of those 
opportunities to consult.

I. Paperwork Reduction Act

    OMB Control No. 1076-0167 currently authorizes the collections of 
information contained in 25 CFR part 224, with an expiration of January 
31, 2020. With this rulemaking, we are seeking to renew this 
information collection. The current authorization totals an estimated 
3,968 annual burden hours. This rule decreases the annual burden hours 
by an estimated 1,008 hours, due to: A decrease in the information 
requested as part of the TERA application process in Sec. Sec.  224.53 
and 224.63, and the streamlined process for seeking expansion of an 
existing TERA to cover additional Tribal land, energy resources, or 
categories of energy-related leases, business agreements, or rights-of-
way in Sec.  224.64. Also, under Sec.  224.64, a Tribe now may submit 
an amendment, rather than applying for a new TERA. These revisions 
reduce the hour burden, as a result of a program change made through 
regulatory updates to implement a new statute, and so require a 
revision to an approved information collection under the Paperwork 
Reduction Act (PRA), 44 U.S.C. 3501 et seq. for which we are requesting 
OMB approval.
    OMB Control Number: 1076-0167.
    Title: Tribal Energy Resource Agreements, 25 CFR 224.
    Brief Description of Collection: Submission of this information is 
required for federally recognized Indian Tribes to apply for, 
implement, reassume, or rescind a TERA that has been entered into under 
25 U.S.C. 3501 et. seq., and 25 CFR 224. This collection also requires 
the Tribe to notify the public of certain actions and allows a petition 
from the public to be submitted to Interior to inform of possible 
noncompliance with a TERA.
    Type of Review: Revision of a currently approved collection.
    Respondents: Federally recognized Indian Tribes and the public.
    Number of Respondents: 1 on average (each year).
    Number of Responses: 11 on average (each year).
    Frequency of Response: On occasion.
    Estimated Time per Response: Varies from 32 hours to 432 hours.
    Estimated Total Annual Hour Burden: 2,960 hours.
    Estimated Total Non-Hour Cost: $18,100.

J. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act of 1969 (NEPA) is not 
required because this is an administrative and procedural regulation. 
(For further information see 43 CFR 46.210(i)). We have also determined 
that the rule does not involve any of the extraordinary circumstances 
listed in 43 CFR 46.215 that would require further analysis under NEPA.

K. Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in Executive Order 13211. A Statement of Energy Effects is not 
required.

List of Subjects in 25 CFR Part 224

    Agreement, Appeals, Application, Business Agreements, Energy 
Development, Interested Party, Lease, Record keeping requirements, 
Reporting requirements, Right-of-Way, Tribal Energy Resource 
Agreements, Tribal capacity, Tribal lands, Trust, Trust asset.

    For the reasons stated in the preamble, the Department of the 
Interior, Bureau of Indian Affairs, amends part 224 in Title 25 of the 
Code of Federal Regulations as follows:

[[Page 69611]]

PART 224--TRIBAL ENERGY RESOURCE AGREEMENTS UNDER THE INDIAN TRIBAL 
ENERGY DEVELOPMENT AND SELF DETERMINATION ACT

0
1. Revise the authority citation for part 224 to read as follows:

    Authority: 25 U.S.C. 2 and 9; 25 U.S.C. 3501-3504; Pub. L. 109-
58; Pub. L. 115-325.


0
2. In part 224:
0
a. Throughout the part, remove the words ``tribe'', ``tribe's'', 
``tribes'', and ``tribal'', wherever they appear, and add in their 
place the words ``Tribe'', ``Tribe's'', ``Tribes'', and ``Tribal'', 
respectively.
0
b. In subparts B through H, remove the words ``Director'' and 
``Director's'', wherever they appear, and add in their place the words 
``Secretary'' and ``Secretary's'', respectively.

0
3. Amend Sec.  224.30 by:
0
a. Revising the definitions of ``Act'', ``Decision Deadline'', and 
``Designated Tribal Official'';
0
b. Adding in alphabetical order definitions for ``Qualified Tribe'' and 
``Tribal energy development organization''; and
0
c. Revising the definition of ``Tribe''.
    The revisions and additions read as follows:


Sec.  224.30   What definitions apply to this part?

    Act means the Indian Tribal Energy Development and Self-
Determination Act of 2005, as promulgated in Title V of the Energy 
Policy Act of 2005, Public Law 109-58, 25 U.S.C. 3501-3504, and as 
amended by the Indian Tribal Energy Development and Self-Determination 
Act Amendments of 2017, Public Law 115-325.
* * * * *
    Decision Deadline means the end of the 120-day period within which 
the Secretary will make a decision about a petition submitted by an 
interested party under subpart E. The Secretary may extend this 
deadline for up to 120 days.
* * * * *
    Designated Tribal Official means the official designated in a 
Tribe's pre-application consultation request, application, or agreement 
to assist in scheduling consultations or to receive communications from 
the Secretary to the Tribe regarding the status of a TERA or activities 
under a TERA.
* * * * *
    Qualified Tribe means a Tribe with Tribal land that has--
    (1) For a period of not less than 3 consecutive years ending on the 
date on which the Tribe submits the application, carried out a contract 
or compact relating to the management of tribal land or natural 
resources under title I or IV of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5301 et seq.) without material 
audit exception (or without any material audit exceptions that were not 
corrected within the 3-year period); or
    (2) Substantial experience in the administration, review, or 
evaluation of energy resource leases or agreements or has otherwise 
substantially participated in the administration, management, or 
development of energy resources located on the Tribal land of the 
Indian Tribe.
* * * * *
    Tribal energy development organization or TEDO means:
    (1) Any enterprise, partnership, consortium, corporation, or other 
type of business organization that is engaged in the development of 
energy resources and is wholly owned by a Tribe, including but not 
limited to an organization incorporated under section 17 of the Indian 
Reorganization Act, 25 U.S.C. 5124 or section 3 of the Oklahoma Indian 
Welfare Act, 49 Stat, 1967, chapter 831; and
    (2) Any organization of two or more entities, at least one of which 
is a Tribe, that has the written consent of the governing bodies of all 
Tribes participating in the organization, to apply for a grant, loan, 
or other assistance under 25 U.S.C. 3502 or to enter into a lease or 
business agreement with, or acquire a right-of-way from, a Tribe under 
25 U.S.C. 3504(a)(2)(A)(ii) or (b)(2)(b).
* * * * *
    Tribe means any Indian Tribe, band, nation, or other organized 
group or community that is recognized as eligible for the special 
programs and services provided by the United States to Indians because 
of their status as Indians, except a Native Corporation as defined in 
the Alaska Native Claims Settlement Act, 43 U.S.C. 1602, as evidenced 
by inclusion of the Tribe on the list of recognized Tribes published by 
the Secretary under 25 U.S.C. 5131.
* * * * *


Sec.  224.51   [Amended]

0
4. Amend Sec.  224.51 by:
0
a. Removing the words ``Office of Indian Energy and Economic 
Development'' in paragraph (a);
0
b. Adding the words ``within 30 days'' after the words ``Designated 
Tribal Official'' in paragraph (b).

0
5. Amend Sec.  224.53 by:
0
a. Removing paragraphs (a)(2), (3), (4), (7), (8), (10);
0
b. Redesignating paragraphs (a)(5) and (6) as (a)(2) and (3), 
respectively;
0
c. Adding a new paragraph (a)(4);
0
d. Redesignating paragraph (a)(9) as paragraph (a)(5);
0
e. In newly redesignated paragraph (a)(5), removing the words 
``paragraph (e)'' and adding the words ``paragraph (d)'' in their 
place;
0
f. Redesignating paragraphs (a)(11) and (12) as paragraphs (a)(6) and 
(7), respectively.
0
g. Removing paragraph (b);
0
h. Redesignating paragraph (c) and paragraph (b);
0
i. Removing paragraphs (d) and (f);
0
j. Redesignating paragraph (e) as paragraph (c);
0
k. In newly redesignated paragraph (c) introductory text, removing the 
words ``paragraph (a)(9)'' and adding the words ``paragraph (a)(5)'' in 
their place; and
0
l. In newly redesignated paragraph (c)(1), removing the phrase ``in 
sufficient detail for the Secretary to determine the Tribe's capacity 
to administer and manage the regulatory activity(ies)''.
    The addition reads as follows:


Sec.  224.53   What must an application for a TERA contain?

    (a) * * *
    (4) Documentation that the Tribe meets the definition of 
``qualified Tribe'' in Sec.  224.30;
* * * * *

0
6. Revise Sec.  224.54 to read as follows:


Sec.  224.54   How must a Tribe submit an application?

    A Tribe must submit an application and all supporting documents in 
a searchable portable document format (PDF) to [email protected].

0
7. Revise Sec.  224.56 to read as follows:


Sec.  224.56   What is the effect of the Secretary's receipt of a 
qualified Tribe's complete application?

    The Secretary's receipt of a qualified Tribe's complete application 
begins a 270-day statutorily mandated period during which the Secretary 
must approve or disapprove a proposed TERA. The TERA takes effect upon 
the 271st day after the Secretary's receipt of a complete application 
from a qualified Tribe, unless the Secretary approves the TERA to take 
effect on an earlier date, or the Secretary disapproves the application 
before that date.

0
8. Amend Sec.  224.57 by redesignating paragraph (a)(3)(i)(B) as 
paragraph (a)(3)(i)(C) and adding a new paragraph (a)(3)(i)(B).
    The addition reads as follows:

[[Page 69612]]

Sec.  224.57   What must the Secretary do upon receipt of an 
application?

    (a) * * *
    (3) * * *

------------------------------------------------------------------------
 If the Director determines that .
                . .                     Then the Director must . . .
------------------------------------------------------------------------
(i) * * *.........................  (B) Identify in the written notice
                                     any financial assistance available
                                     from the Secretary to assist in
                                     implementing the TERA, including
                                     environmental review of individual
                                     projects; and
------------------------------------------------------------------------

* * * * *

0
9. Revise Sec.  224.59 to read as follows:


Sec.  224.59   How will the Secretary use the results of the 
application consultation meeting?

    The Secretary will use the information gathered during the 
application consultation meeting in conjunction with information 
provided through Sec. Sec.  224.53 and 224.63 to determine whether to 
recommend any revisions to the proposed TERA.

0
10. Revise Sec.  224.62 to read as follows:


Sec.  224.62   May a final proposed TERA differ from the original 
proposed TERA?

    The final proposed TERA may or may not contain provisions that 
differ from the original proposed TERA submitted with the application. 
In either case, the 270-day review period will begin to run on the date 
the original complete application was received (under Sec.  224.57).

0
11. Amend Sec.  224.63 by:
0
a. Removing paragraphs (c)(1) and (2);
0
b. Redesignating paragraphs (c)(3) through (6) as (c)(1) through (4);
0
c. Removing paragraphs (d)(1) and (5);
0
d. Redesignating paragraphs (d)(2) through (4) as paragraphs (d)(1) 
through (3);
0
e. Redesignating paragraphs (d)(6) through (14) as paragraphs (d)(4) 
through (12); and
0
f. Adding paragraph (m).
    The addition reads as follows:


Sec.  224.63   What provisions must a TERA contain?

* * * * *
    (m) At the option of the Tribe, identify which functions, if any, 
the Tribe intends to conduct to authorize any operational or 
development activities pursuant to a lease, business agreement, or 
right-of-way approved by the Tribe.

0
12. Revise Sec.  224.64 to read as follows:


Sec.  224.64   How may a Tribe assume management of development of 
different types of energy resources?

    (a) In order for a Tribe to assume authority for approving leases, 
business agreements, and rights-of-way for the development of another 
energy resource that is not included in the TERA, a Tribe must submit 
to the Secretary:
    (1) An amendment to the TERA that specifies and describes the 
additional Tribal land, energy resources, or categories of energy-
related leases, business agreements, or rights-of-way that the Tribe 
intends to include in the TERA; and
    (2) A copy of the resolution or formal action of the Tribal 
governing body, or Tribal governing bodies if the land is held for the 
benefit of more than one Tribe, that approves submission of the TERA 
amendment.
    (b) Submission of the documents in paragraph (a) of this section 
will trigger the public notice and opportunity for comment consistent 
with Sec.  224.67.
    (c) The Secretary will process the amendment in accordance with 
Sec. Sec.  224.67 through 224.78.
    (d) Each Tribal governing body that is party to the TERA must sign 
the TERA amendment upon approval.


Sec.  224.65   [Amended]

0
13. In Sec.  224.65, remove the last sentence.


Sec.  224.68   [Amended]

0
14. In Sec.  224.68, remove the last sentence in paragraph (d).

0
15. Revise Sec.  224.71 to read as follows:


Sec.  224.71   What standards will the Secretary use to decide to 
approve a final proposed TERA?

    The Secretary must approve a final proposed TERA unless:
    (a) The Tribe does not meet the definition of a ``qualified Tribe'' 
in Sec.  224.30;
    (b) A provision of the TERA violates applicable Federal law 
(including regulations) or a treaty applicable to the Tribe; or
    (c) The TERA fails to include the provisions required by Sec.  
224.63.


Sec. Sec.  224.72 and 224.73  [Removed and Reserved]

0
16. Remove and reserve Sec. Sec.  224.72 and 224.73.

0
17. Revise Sec.  224.74 to read as follows:


Sec.  224.74  When must the Secretary approve or disapprove a final 
proposed TERA?

    The Secretary must approve or disapprove a final proposed TERA 
within 270 days of the Secretary's receipt of a complete application 
for a TERA. If the Secretary fails to approve or disapprove a final 
proposed TERA within 270 days, the TERA takes effect on the 271st day 
after the Secretary's receipt of a complete application from a 
qualified Tribe.

0
18. In Sec.  224.75, revise paragraph (b) to read as follows:


Sec.  224.75   What must the Secretary do upon approval or disapproval 
of a final proposed TERA?

* * * * *

------------------------------------------------------------------------
If the Secretary's decision is . .
                 .                      Then the Secretary will . . .
------------------------------------------------------------------------
 
                              * * * * * * *
(b) To disapprove the final         Send the Tribe a notice of
 proposed TERA.                      disapproval that must include:
                                    (1) A detailed written explanation
                                     of each reason for the disapproval;
                                    (2) The changes or other actions
                                     required to address each reason for
                                     the Secretary's disapproval;
                                       (3) An opportunity to revise and
                                        resubmit the TERA: and
                                    (4) A statement that the decision is
                                     a final agency action and is
                                     subject to judicial review.
------------------------------------------------------------------------


[[Page 69613]]


0
19. In Sec.  224.76, revise the introductory text to read as follows:


Sec.  224.76   Upon notification of disapproval, may a Tribe re-submit 
a revised final proposed TERA?

    Yes, within 45 days of receiving the notice of disapproval, or a 
later date as the Secretary and the Tribe agree to in writing, the 
Tribe may re-submit a revised final proposed TERA, approved by the 
Tribal governing body and signed by the Tribe's authorized 
representative, to the Secretary that addresses the Secretary's 
concerns. The Secretary must approve or disapprove the revised final 
proposed TERA within 90 days of the Secretary's receipt of the revised 
final proposed TERA. If the Secretary does not approve or disapprove 
the revised proposed TERA within that time, it will take effect on the 
91st day. Within 10 days of the Secretary's approval or disapproval of 
a revised final proposed TERA, the Secretary must notify the Tribal 
governing body in writing and take the following actions:
* * * * *

0
20. Add Sec.  224.78 to subpart C to read as follows:


Sec.  224.78   How long will a TERA remain in effect?

    A TERA that takes effect under this part remains in effect to the 
extent any provision of the TERA is consistent with applicable Federal 
law (including regulations), unless and until either:
    (a) The Secretary reassumes all activities included within a TERA 
without the consent of the Tribe under Subpart G; or
    (b) The Tribe rescinds a TERA under Subpart H.

0
21. Add Sec.  224.79 to subpart C to read as follows:


Sec.  224.79   Will the Secretary make non-expended amounts available 
to the Tribe?

    Upon written request of a Tribe for whom an approved TERA is in 
effect, the Secretary will provide to the Tribe those amounts that the 
Secretary would otherwise have expended to carry out any program, 
function, service, or activity (or portion thereof) that the Secretary 
does not expend as a result of the Tribe carrying out the activities 
under a TERA. The Secretary will provide the Tribe with a full 
accounting of the amounts as calculated based on the specific terms of 
the TERA, the scope of the contracted functions, and applicable 
circumstances.


Sec.  224.80   [Amended]

0
22. In Sec.  224.80, add the word ``Federal'' before the word 
``authorities''.

0
23. Revise Sec.  224.84 to read as follows:


Sec.  224.84   When may a Tribe grant a right-of-way?

    A Tribe may grant a right-of-way under a TERA if the grant of 
right-of-way is over tribal land and the right-of-way serves:
    (a) An electric production, generation, transmission, or 
distribution facility (including a facility that produces electricity 
from renewable energy resources) located on tribal land;
    (b) A facility located on tribal land that processes or refines 
energy resources; or
    (c) The purposes, or facilitates in carrying out the purposes, of 
any lease or agreement entered into for energy resources development on 
tribal land.

0
24. Revise Sec.  224.85 to read as follows:


Sec.  224.85   When may a Tribe enter into a lease or business 
agreement?

    A Tribe may enter into a lease or business agreement for the 
purpose of energy resource development for:
    (a) Exploration for, extraction of, or other development of the 
Tribe's energy mineral resources on tribal land including, but not 
limited to, marketing or distribution;
    (b) Construction or operation of an electric production, 
generation, transmission, or distribution facility (including a 
facility that produces electricity from renewable energy resources) 
located on tribal land;
    (c) Construction or operation of a facility to process or refine 
energy resources, at least a portion of which have been developed on 
tribal land; or
    (d) Pooling, unitization, or communitization of the energy mineral 
resources of the Indian tribe located on tribal land with any other 
energy mineral resource (including energy mineral resources owned by 
the Indian tribe or an individual Indian in fee, trust, or restricted 
status or by any other persons or entities) if the owner, or, if 
appropriate, lessee, of the resources has consented or consents to the 
pooling, unitization, or communitization of the other resources under 
any lease or agreement.

0
25. Revise Sec.  224.101 to read as follows:


Sec.  224.101   Who is an interested party?

    For the purposes of this part, an interested party is a person or 
entity that the Secretary determines has demonstrated with substantial 
evidence that an interest of the person or entity has sustained, or 
will sustain, an adverse environmental impact as a result of a Tribe's 
failure to comply with a TERA.

0
26. Revise Sec.  224.107 to read as follows:


Sec.  224.107   What must a petitioner do before filing a petition with 
the Secretary?

    Before a petitioner may file a petition with the Secretary under 
this subpart, the petitioner must have exhausted all tribal remedies by 
participating in any tribal process under Sec.  224.106, and available 
under the laws, regulations, or procedures of the Tribe, including any 
tribal appeal process.

0
27. In Sec.  224.110 revise paragraph (b) to read as follows:


Sec.  224.110   What must a petition to the Secretary contain?

* * * * *
    (b) Specific facts demonstrating that the petitioner is an 
interested party under Sec.  224.101, including identification of the 
affected interest;
* * * * *

0
28. In Sec.  224.115, revise the introductory text to read as follows:


Sec.  224.115   When in the petition process must the Secretary 
investigate a Tribe's compliance with a TERA?

    The Secretary must investigate the petitioner's claims of the 
Tribe's noncompliance with a TERA only after making a threshold 
determination that the petitioner is an interested party and:
* * * * *

0
29. Revise Sec.  224.116 to read as follows:


Sec.  224.116   What is the time period in which the Secretary must 
investigate a Tribe's compliance with a TERA?

    (a) If the Secretary determines under Sec.  224.115 that one of the 
threshold determinations in Sec.  224.114 has been met, then within 120 
days of the Secretary's receipt of a petition, the Secretary must 
determine:
    (1) Whether the petitioner is an interested party; and
    (2) If the petitioner is an interested party, whether or not a 
Tribe is in compliance with the TERA as alleged in the petition;
    (b) The Secretary may extend the time for the Tribe making the 
determinations in paragraph (a) of this section for up to 120 days in 
any case in which the Secretary determines that additional time is 
necessary to evaluate the claims in the petition and the Tribe's 
written response, if any. If the Secretary decides to extend the time, 
the Secretary must notify the petitioner and the Tribe in writing of 
the extension.

0
30. In Sec.  224.119, revise paragraph (b)(1) and add paragraph (c) to 
read as follows:


Sec.  224.119   What must the Secretary do when making a decision on a 
petition?

* * * * *

[[Page 69614]]

    (b) * * *
    (1) Include findings of fact and conclusions of law with respect to 
each claim made in the petition in the written decision to the Tribe; 
and
* * * * *
    (c) The Secretary will dismiss any petition if the interested party 
who filed the petition has agreed with the Tribe to a resolution of the 
claims presented in the petition.

0
31. In Sec.  224.120, revise the introductory text to read as follows:


Sec.  224.120   What action may the Secretary take to ensure compliance 
with a TERA?

    If the Secretary decides that a Tribe is not in compliance with a 
TERA, the Secretary may take only such action as the Secretary 
determines to be necessary to address the claims of noncompliance made 
in the petition including:
* * * * *

0
32. In Sec.  224.181 revise paragraphs (a) and (c) to read as follows:


Sec.  224.181   Who may appeal Departmental decisions or inaction under 
this part?

* * * * *
    (a) A Tribe or TEDO that is adversely affected by a decision of or 
inaction by an official of the Department of the Interior under this 
part;
* * * * *
    (c) An interested party who is adversely affected by a decision or 
inaction by the Secretary under subpart E of this part, provided that 
the interested party may appeal only those issues raised in its prior 
participation under subpart E of this part and may not appeal any other 
decision rendered or inaction under this part.

0
33. In Sec.  224.182, revise paragraph (a) to read as follows:


Sec.  224.182   What is the Initial Appeal Process?

* * * * *
    (a) Within 30 days of receiving an adverse decision by the Director 
or similar level official within 30 days after the time period within 
which the Secretary is required to act under subpart E, a party that 
may appeal under this subpart may file an appeal to the Principal 
Deputy Assistant Secretary--Indian Affairs;
* * * * *

0
34. Add subpart J, consisting of Sec. Sec.  224.200 through 224.206, to 
read as follows:

Subpart J--Alternative to TERAs: Tribal Energy Development 
Organization (TEDO) Certification

Sec.
224.200 What is the purpose of this subpart?
224.201 What must an application for certification as a Tribal 
energy development organization (TEDO) include?
224.202 How must a TEDO submit an application for certification?
224.203 What must the Secretary do upon receipt of an application 
for certification as a TEDO?
224.204 What criteria will the Secretary use to determine whether to 
approve an application for certification of a TEDO?
224.205 What must the Secretary do upon approval of an application 
for certification?
224.206 What is the effect of a TEDO receiving certification?


Sec.  224.200  What is the purpose of this subpart?

    The purpose of this part is to establish a process by which an 
entity may be certified as an Tribal energy development organization 
(TEDO) that may enter into a lease or business agreement with an Indian 
Tribe without Secretarial review under 25 U.S.C. 3504(a)(2) or right-
of-way with an Indian Tribe without Secretarial review under 25 U.S.C. 
3504(b)(2)(B) and without a TERA.


Sec.  224.201   What must an application for certification as a Tribal 
energy development organization (TEDO) include?

    An application for certification as a TEDO must include 
documentation of the items listed in paragraphs (a) through (d) of this 
section.
    (a) The Tribe has carried out a contract or compact under title I 
or IV of the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 5301 et seq.) for a period of not less than 3 consecutive years 
ending on the date on which the Tribe submits the application, and the 
contract or compact:
    (1) Has been carried out by the Tribe without material audit 
exceptions (or without any material audit exceptions that were not 
corrected within the 3-year period); and
    (2) Has included programs or activities relating to the management 
of Tribal land;
    (b) The TEDO is organized under the Tribe's laws;
    (c) The majority of the interest in the TEDO is owned and 
controlled by the Tribe (or the Tribe and one or more other Tribes) the 
Tribal land of which is being developed; and
    (d) The TEDO's organizing document:
    (1) Requires the Tribe with jurisdiction over the land to maintain, 
at all times, the controlling interest in the TEDO;
    (2) Requires the Tribe (or the Tribe and one or more other Tribes 
the Tribal land of which is being developed) to own and control, at all 
times, a majority of the interest in the TEDO; and
    (3) Includes a statement that the TEDO is subject to the 
jurisdiction, laws, and authority of the Tribe.


Sec.  224.202  How must a TEDO submit an application for certification?

    A TEDO must submit an application and all supporting documents in a 
searchable portable document format (PDF) to [email protected].


Sec.  224.203   What must the Secretary do upon receipt of an 
application for certification as a TEDO?

    Within 90 days of receiving an application for certification as a 
TEDO, the Secretary must approve or disapprove the application.


Sec.  224.204   What criteria will the Secretary use to determine 
whether to approve an application for certification of a TEDO?

    The Secretary will approve the application for certification upon 
determining that the application contains the documentation required in 
Sec.  224.201.


Sec.  224.205   What must the Secretary do upon approval of an 
application for certification?

    If the Secretary approves an application for certification, the 
Secretary must do the following within 10 days of making the 
determination under Sec.  224.203:
    (a) Issue a certification stating that:
    (1) The TEDO is organized under the laws of the Tribe and subject 
to the Tribe's jurisdiction, laws, and authority;
    (2) The majority of the interest in the TEDO is owned and 
controlled by the Tribe (or the Tribe and one or more other Tribes) and 
the Tribal land of which is being developed;
    (3) The TEDO's organizing document requires the Tribe with 
jurisdiction over the land to maintain, at all times, the controlling 
interest in the TEDO;
    (4) The TEDO's organizing document requires the Tribe (or the Tribe 
and one or more other Tribes the Tribal land of which is being 
developed) to own and control, at all times, a majority of the interest 
in the TEDO;
    (5) The certification is issued under 25 U.S.C. 3504(h); and
    (6) Nothing in the certification waives the sovereign immunity of 
the Tribe.
    (b) Deliver a copy of the Certification to the applicant Tribe (or 
Tribes, as applicable); and
    (c) Publish the certification in the Federal Register.

[[Page 69615]]

Sec.  224.206  What is the effect of a TEDO receiving certification?

    Upon receiving certification under this subpart, a TEDO may enter 
into a lease, business agreement, or right-of-way with an Indian Tribe 
without Secretarial approval as long as:
    (a) The scope of the lease or business agreement does not exceed 
that of a TERA as established in Sec.  224.85 of this part.
    (b) The scope of a right-of-way does not exceed that of a TERA as 
established in Sec.  224.84 of this part.
    (c) The term of a lease, business agreement, or right-of-way does 
not exceed that of a TERA as established in Sec.  224.86 of this part.

    Dated: November 15, 2019.
Tara Sweeney,
Assistant Secretary--Indian Affairs.
[FR Doc. 2019-27399 Filed 12-17-19; 8:45 am]
 BILLING CODE 4337-15-P