27134 Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules 

1See generally Hearings on the Rehabilitation and 

Colonization of Hawaiians and Other Proposed 

Amendments to the Organic Act of the Territory of 

Hawai’i before the House Committee on the 

Territories, H.R. Rep. No. 839, 66th Cong., 2d Sess., 

at 4 (1920) (Sen. John H. Wise testified, ‘‘The 

Hawaiian people are a farming people and 

fishermen, out-of-door people, and [being] frozen 

out of their lands . . . is one of the reasons why 

the Hawaiian people are dying. Now, the only way 

to save them, I contend, is to take them back to the 

lands and give them the mode of living that their 

ancestors were accustomed to and in that way 

rehabilitate them.’’). 

standards are technical standards (e.g., 

materials specifications, test methods, 

sampling procedures, and business 

practices) that are developed or adopted 

by voluntary consensus standards 

bodies. NTTAA directs EPA to provide 

Congress, through OMB, explanations 

when the Agency decides not to use 

available and applicable voluntary 

consensus standards. 

The EPA believes that this proposed 

action is not subject to requirements of 

Section 12(d) of NTTAA because 

application of those requirements would 

be inconsistent with the Clean Air Act. 

J. Executive Order 12898: Federal 

Actions To Address Environmental 

Justice in Minority Populations and 

Low-Income Population 

Executive Order 12898 (59 FR 7629 

(Feb. 16, 1994)) establishes federal 

executive policy on environmental 

justice. Its main provision directs 

federal agencies, to the greatest extent 

practicable and permitted by law, to 

make environmental justice part of their 

mission by identifying and addressing, 

as appropriate, disproportionately high 

and adverse human health or 

environmental effects of their programs, 

policies, and activities on minority 

populations and low-income 

populations in the United States. 

EPA lacks the discretionary authority 

to address environmental justice in this 

proposed rulemaking. 

List of Subjects in 40 CFR Part 52 

Environmental protection, Air 

pollution control, Incorporation by 

reference, Intergovernmental relations, 

Ozone, Lead, Reporting and 

recordkeeping requirements. 

Dated: May 1, 2015. 

Jared Blumenfeld, 

Regional Administrator, Region IX. 

[FR Doc. 2015–11340 Filed 5–11–15; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF THE INTERIOR 

Office of the Secretary 

43 CFR Parts 47 and 48 

RIN 1090–AA98 

Land Exchange Procedures and 

Procedures To Amend the Hawaiian 

Homes Commission Act, 1920 

AGENCY: Office of the Secretary, Interior. 

ACTION: Proposed rule. 

SUMMARY: This rule would remove 

ambiguities the State of Hawai‘i faces in 

administration of the Hawaiian Homes 

Commission Act. It would facilitate the 

goal of the rehabilitation of the Native 

Hawaiian community, including the 

return of native Hawaiians to the land, 

consistent with the Hawaiian Homes 

Commission Act, the State of Hawai‘i 

Admission Act, and the Hawaiian Home 

Lands Recovery Act. The rule clarifies 

the land exchange process, the 

documents required, and the respective 

responsibilities of the Department of the 

Interior, the Department of Hawaiian 

Home Lands, and other entities engaged 

in land exchanges of Hawaiian home 

lands. It also clarifies the documents 

required and the responsibilities of the 

Secretary of the Interior in the approval 

process for proposed amendments by 

the State of Hawai‘i to the Hawaiian 

Homes Commission Act, 1920, as 

amended. 

DATES: Comments must be submitted on 

or before July 13, 2015. 

ADDRESSES: You may submit comments 

on the rulemaking by either of the 

methods listed below. Please use 

Regulation Identifier Number 1090– 

AA98 in your message. 

1. Federal eRulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions on the Web site for 

submitting comments. 

2. U.S. mail, courier, or hand delivery: 

Office of Native Hawaiian Relations, 

Department of the Interior, 1849 C Street 

NW., Washington, DC 20240. 

FOR FURTHER INFORMATION CONTACT: 

Ka‘i‘ini Kimo Kaloi, Director, Office of 

Native Hawaiian Relations, telephone 

(202) 208–7462. 

SUPPLEMENTARY INFORMATION: 

I. Background 

In 1921, Congress enacted the 

Hawaiian Homes Commission Act 

(HHCA), 42 Stat. 108, to provide a 

homesteading program for native 

Hawaiians by placing approximately 

200,000 acres of land (known as 

Hawaiian home lands) into trust. The 

HHCA and the Hawaiian Home Lands 

Trust are administered by the 

Department of Hawaiian Home Lands 

(DHHL), an agency of the State of 

Hawai‘i. The HHCA provides the DHHL 

the authority to propose to the Secretary 

of the Interior the exchange of Hawaiian 

home lands for land privately or 

publicly owned in furtherance of the 

purposes of the HHCA. 

The Hawaiian Homes Commission 

Act, among other things, created a series 

of funds HHCA section 213, 42 Stat. 108 

(as amended). The intent of one of these 

funds is the ‘‘rehabilitation of native 

Hawaiians,’’ which includes the 

rehabilitation of ‘‘the educational, 

economic, political, social, and cultural 

processes by which the general welfare 

and conditions of native Hawaiians are 

thereby improved and perpetuated.’’ Id. 

The Department of the Interior 

interprets the term ‘‘rehabilitation’’ to 

include political, cultural and social 

reorganization that would facilitate the 

stated goals of rehabilitation.1 By 

providing a clear process for the 

Department’s review and approval of 

land exchanges and HHCA 

amendments, this regulation will further 

the goals of the HHCA, including 

rehabilitation. 

In 1959, Congress enacted the Hawai‘i 

Admission Act, 73 Stat. 4, to admit the 

State of Hawai‘i into the United States. 

In compliance with the Hawai‘i 

Admission Act, and as a compact 

between the State of Hawai‘i and the 

United States relating to the 

management and disposition of the 

Hawaiian home lands, the State of 

Hawai‘i adopted the HHCA, as 

amended, as a law of the State through 

Article XII of the Constitution of the 

State. Because Congress in the HHCA 

section 223 reserved the right to alter, 

amend, or repeal Title 2 of the HHCA, 

section 4 of the Hawai‘i Admission Act 

provides that the HHCA is subject to 

amendment or repeal by the State of 

Hawai‘i only with the consent of the 

United States. Recognizing, however, 

that it was granting the State 

administrative authority, Congress in 

section 4 also provided exceptions 

within which the State could amend 

certain administrative provisions of the 

HHCA without the consent of the 

United States. 

During the territorial period of 

Hawai‘i, the HHCA was included in the 

compilation of the Revised Laws of 

Hawai‘i. Following Hawai‘i’s statehood, 

the HHCA was not repealed and 

remains in effect with elements of both 

Federal and State law. The compilation 

of the HHCA was removed from the text 

of the United States Code and inserted 

into a note in the Code, recognizing the 

State’s authority to amend provisions of 

the HHCA that do not alter the 

responsibilities of the United States or 

infringe upon its interests or the 

interests of the beneficiaries. 

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Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules 27135 

The HHCA is a compound of 

interdependent Federal and State law. 

Congress enacted the Hawaiian Home 

Lands Recovery Act, 1995, (HHLRA), 

Public Law 104–42, 109 Stat. 357, 

which provides that the Secretary of the 

Interior shall determine whether a 

proposed amendment to the HHCA 

requires the consent of the United States 

under section 4 of the Hawai‘i 

Admission Act. It is appropriately the 

function of the United States to ensure 

conformance with the limitations in the 

Admissions Act and protect the 

integrity of this statutory framework. 

The HHLRA also clarified the role of 

the Secretary in the oversight of the 

Hawaiian Home Lands Trust. Section 

204(a)(3) of the HHCA, in conjunction 

with Section 205 of the HHLRA, 

requires the approval or disapproval of 

the Secretary of the Interior for the 

exchange of Hawaiian home lands. The 

HHLRA details the Secretary’s 

responsibilities to ensure that Hawaiian 

home lands are administered in a 

manner that advances the interests of 

the beneficiaries. 

The HHLRA clarifies the scope of two 

of the continuing responsibilities of the 

Federal Government with regard to the 

HHCA. It clarifies the role of the 

Secretary in land exchanges and 

requires the State of Hawai‘i to notify 

the Secretary of the Interior of any 

amendment it proposes to the HHCA 

and requires the Secretary to determine 

whether the State is proposing to amend 

the Federal responsibilities under the 

HHCA, or infringe on Federal interests 

or those of the beneficiaries, thus 

requiring Congress to approve the 

proposed amendment. 43 CFR part 47 of 

the proposed regulations sets forth the 

Secretary’s process for approving or 

disapproving land exchanges of 

Hawaiian home lands conducted by 

DHHL under the HHCA and HHLRA. 43 

CFR part 48 of the proposed regulations 

establishes the review and approval 

process for State of Hawai‘i proposed 

amendments to the HHCA. 

II. Summary of Impacts 

1. Regulatory Planning and Review 

(Executive Orders 12866 and 13563.) 

Executive Order 12866 provides that 

the Office of Information and Regulatory 

Affairs will review all significant rules. 

The Office of Information and 

Regulatory Affairs determined that this 

rule is not significant. 

Executive Order 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 

executive order 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. This proposed rule is 

consistent with these requirements. 

2. Regulatory Flexibility Act 

The Department of the Interior 

certifies that this proposed 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.). 

3. Small Business Regulatory 

Enforcement Fairness Act (SBREFA) 

This is not a major rule under 5 U.S.C. 

804(2), the Small Business Regulatory 

Enforcement Fairness Act. This 

proposed rule: 

(a) Does not have an annual effect on 

the economy of $100 million or more. 

(b) Will not cause a major increase in 

costs or prices for consumers, 

individual industries, Federal, State, or 

local government agencies, or 

geographic regions. 

(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. 

4. Unfunded Mandates Reform Act 

This proposed 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 

proposed rule does not have a 

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. 

5. Takings (E.O. 12630) 

In accordance with Executive Order 

12630, the rule does not have significant 

takings implications. A takings 

implication assessment is not required. 

6. Federalism (E.O. 13132) 

In accordance with Executive Order 

13132, the proposed rule does not have 

sufficient federalism implications to 

warrant the preparation of a Federalism 

Assessment. It would not substantially 

and directly affect the relationship 

between the Federal and state 

governments. The Secretary of the 

Department of the Interior has oversight 

to ensure that land under the HHCA is 

administered in a manner that advances 

the interests of the beneficiaries. A 

Federalism Assessment is not required. 

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

In accordance with Executive Order 

12988, the Office of the Solicitor 

determined that this proposed rule does 

not unduly burden the judicial system 

and meets the requirements of sections 

3(a) and 3(b)(2) of the Order. 

8. Consultation With Indian Tribes (E.O. 

13175) 

Under the criteria in Executive Order 

13175, the Department evaluated this 

proposed rule and determined that it 

has no potential effects on federally 

recognized Indian tribes. This proposed 

rule does not have tribal implications 

that impose substantial direct 

compliance costs on Indian Tribal 

governments. 

9. Paperwork Reduction Act 

This proposed rule does not require 

an information collection from 10 or 

more parties and a submission under 

the Paperwork Reduction Act is not 

required. An OMB form 83–I is not 

required. 

10. National Environmental Policy Act 

This proposed 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, 1969, is not 

required. Under Departmental Manual 

516 DM 2.3A(2), Section 1.10 of 516 DM 

2, Appendix 1 excludes from 

documentation in an environmental 

assessment or impact statement 

‘‘policies, directives, regulations and 

guidelines of an administrative, 

financial, legal, technical or procedural 

nature; or the environmental effects of 

which are too broad, speculative or 

conjectural to lend themselves to 

meaningful analysis and will be subject 

later to the NEPA process, either 

collectively or case-by-case.’’ 

11. Effects on the Energy Supply (E.O. 

13211) 

This proposed rule is not a significant 

energy action under the definition in 

Executive Order 13211. A Statement of 

Energy Effects is not required. This 

proposed rule will not have a significant 

effect on the nation’s energy supply, 

distribution, or use. 

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27136 Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules 

12. Clarity of This Regulation 

The Department is required by 

Executive Orders 12866 and 12988 and 

by the Presidential Memorandum of 

June 1, 1998, to write all rules in plain 

language. This means that each rule the 

Department publishes must: 

(a) Be logically organized; 

(b) Use the active voice to address 

readers directly; 

(c) Use clear language rather than 

jargon; 

(d) Be divided into short sections and 

sentences; and 

(e) Use lists and tables wherever 

possible. 

If you feel that the Department did not 

meet these requirements, please send 

comments by one of the methods listed 

in the ADDRESSES section. To better help 

the Department revise the rule, your 

comments should be as specific as 

possible. For example, you should tell 

us the numbers of the sections or 

paragraphs that you find unclear, which 

sections or sentences are too long, the 

sections where you feel lists or tables 

would be useful, etc. 

13. Public Availability of Comments 

Before including your address, phone 

number, email address, or other 

personal identifying information in your 

comment, you should be aware that 

your entire comment—including your 

personal identifying information—may 

be made publicly available at any time. 

While you can ask the Department in 

your comment to withhold your 

personal identifying information from 

public review, the Department cannot 

guarantee that it will be able to do so. 

List of Subjects in 43 CFR Parts 47 and 

48 

Hawaii, Intergovernmental programs, 

Land, State-Federal relations. 

Dated: May 6, 2015. 

Kristen J. Sarri, 

Principal Deputy Assistant Secretary for 

Policy, Management and Budget. 

For the reasons stated in the 

preamble, the Department of the Interior 

proposes to amend title 43 of the Code 

of Federal Regulations by adding new 

parts 47 and 48 as set forth below: 

PART 47—LAND EXCHANGE 

PROCEDURES 

Sec. 

47.5 What is the purpose of this part? 

47.10 What definitions apply to terms used 

in this part? 

47.15 What laws apply to exchanges made 

under this part? 

Subpart A—The Exchange Process 

47.20 What factors will the Secretary 

consider in analyzing a land exchange? 

47.30 When does a land exchange advance 

the interests of the beneficiaries? 

47.35 Must lands exchanged be of equal 

value? 

47.40 How must properties be described? 

47.45 How does the exchange process 

work? 

47.50 What should DHHL include in a land 

exchange proposal for the Secretary? 

47.55 What are the minimum requirements 

for appraisals used in a land exchange? 

47.60 What documentation must DHHL 

submit to the Secretary in the land 

exchange packet? 

Subpart B—Approval and Finalization 

47.65 When will the Secretary approve or 

disapprove the land exchange? 

47.70 How does DHHL complete the 

exchange once approved? 

Authority: State of Hawai‘i Admission 

Act, 73 Stat. 4, chapter 339, approved March 

18, 1959; Hawaiian Homes Commission Act, 

1920, as amended, Act of July 9, 1921, 

chapter 42, 42 Stat. 108; Hawaiian Home 

Lands Recovery Act, 1995, 109 Stat. 537, 

Public Law 104–42; 5 U.S.C. 301; 25 U.S.C. 

2 and 9; 43 U.S.C. 1457; 112 Departmental 

Manual 28. 

§ 47.5 What is the purpose of this part? 

This part sets forth the procedures for 

conducting land exchanges of Hawaiian 

home lands authorized by the Hawaiian 

Homes Commission Act (HHCA), 1920, 

as amended. 

§ 47.10 What definitions apply to terms 

used in this part? 

As used in this part, the following 

terms have the meanings given in this 

section. 

Appraisal or Appraisal report means 

a written statement independently and 

impartially prepared by a qualified 

appraiser setting forth an opinion as to 

the market value of the lands or 

interests in lands to be exchanged as of 

a specific date(s), supported by the 

presentation and analysis of relevant 

market information. 

Beneficiaries means ‘‘native 

Hawaiian(s)’’ as that term is defined 

under section 201(a) of the Hawaiian 

Homes Commission Act. 

Chairman means the Chairman of the 

Hawaiian Homes Commission 

designated under section 202 of the 

Hawaiian Homes Commission Act. 

Commission means the Hawaiian 

Homes Commission established by 

section 202 of the Hawaiian Homes 

Commission Act, which also serves as 

the executive board of the Department 

of Hawaiian Homes Lands. 

Consultation means an open 

discussion process that allows 

interested parties to address potential 

issues, changes, or actions. Consultation 

does not require formal face to face 

meetings. However, it does require 

dialogue (verbal, electronic, or printed) 

or at least a good faith effort to engage 

in dialogue between the DHHL and the 

beneficiaries, consideration of their 

views, and, where feasible, seek 

agreement with the beneficiaries when 

engaged in the land exchange process. 

DHHL or Department of Hawaiian 

Home Lands means the department 

established by the State of Hawai‘i 

under sections 26–4 and 26–17 of the 

Hawai‘i Revised Statutes to administer 

the Hawaiian Homes Commission Act. 

This department assumes the authorities 

and responsibilities of the Hawaiian 

Homes Commission and the 

Commission serves as the department’s 

executive board under amended section 

202 of the Hawaiian Homes Commission 

Act. 

Hawaiian home lands means all trust 

lands given the status of Hawaiian home 

lands under section 204 of the Hawaiian 

Homes Commission Act, and those 

lands obtained through approval under 

this part, and as directed by Congress. 

Hazardous substances means those 

substances designated under 

Environmental Protection Agency 

regulations at 40 CFR part 302. 

HHCA or Hawaiian Homes 

Commission Act means the Hawaiian 

Homes Commission Act, 1920, Act of 

July 9, 1921, chapter 42, 42 Stat. 108, as 

amended. 

HHLRA or Hawaiian Home Lands 

Recovery Act means the Hawaiian Home 

Lands Recovery Act, 1995, Public Law 

104–42, 109 Stat. 357. 

Land exchange is any transaction, 

other than a sale, that transfers 

Hawaiian home lands from DHHL to 

another entity and in which DHHL 

receives the other entity’s land as 

Hawaiian home lands. A land exchange 

can involve trading Hawaiian home 

lands for private land, but it can also 

involve trading land between DHHL and 

State or Federal agencies. 

Market value means the most 

probable price in cash, or terms 

equivalent to cash, that lands or 

interests in lands should bring in a 

competitive and open market under all 

conditions requisite to a fair sale, where 

the buyer and seller each acts prudently 

and knowledgeably, and the price is not 

affected by undue influence. 

Native Hawaiian or native Hawaiian 

has the same meaning as that term 

defined under section 201(a) of the 

Hawaiian Homes Commission Act. 

Office of Valuation Services (OVS) 

means the Office with real estate 

appraisal functions within the Office of 

the Assistant Secretary—Policy, 

Management, and Budget of the 

Department of the Interior. 

Outstanding interests means rights or 

interests in property involved in a land 

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exchange held by an entity other than a 

party to the exchange. 

Secretary means the Secretary of the 

Interior or the individual to whom the 

authority and responsibilities of the 

Secretary have been delegated. 

§ 47.15 What laws apply to exchanges 

made under this part? 

(a) DHHL may only exchange land 

under the authority of the HHCA in 

conformity with the HHLRA. 

(b) When DHHL makes any land 

exchange, the following laws and 

regulations constitute a partial list of 

applicable laws and regulations: 

Legislation or regulation Citation 

(1) The National Historic Preservation Act, 1966 ............................................................................................. 16 U.S.C. 470 et seq. 

(2) Implementing regulations for the National Historic Preservation Act .......................................................... 36 CFR part 800 

(3) Section 3 of the Native American Graves Protection and Repatriation Act (NAGPRA) ............................ 25 U.S.C. 3002 

(4) Implementing regulations for the Native American Graves Protection and Repatriation Act ..................... 43 CFR part 10 

(5) The National Environmental Policy Act, 1969 (NEPA) ............................................................................... 42 U.S.C. 4371 et seq. 

(6) Implementing regulations for NEPA ............................................................................................................ 40 CFR parts 1500–1508; 43 CFR 

part 46 

(7) The State of Hawai‘i Admission Act ............................................................................................................ 73 Stat. 4, Public Law 86–3 

(8) Hawaiian Homes Commission Act, 1920, as amended .............................................................................. 42 Stat. 108 

(9) Hawaiian Home Lands Recovery Act, 1995 ............................................................................................... 109 Stat. 537, Public Law 104–42 

(10) Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) ......................... 42 U.S.C. 9601 et seq. 

(11) Implementing regulations for CERCLA ..................................................................................................... 40 CFR part 312 

(c) No new legal rights or obligations 

are created through listing applicable 

laws and regulatory provisions in this 

section. 

Subpart A—The Exchange Process 

§ 47.20 What factors will the Secretary 

consider in analyzing a land exchange? 

The Secretary may approve an 

exchange only after making a 

determination that the exchange will 

advance the interests of the 

beneficiaries. In considering whether a 

land exchange will advance the interests 

of the beneficiaries, the Secretary will 

evaluate the extent to which it will: 

(a) Achieve better management of 

Hawaiian home lands; 

(b) Meet the needs of HHCA 

beneficiaries and their economic 

circumstances by promoting: 

(1) Homesteading opportunities, 

(2) Economic self-sufficiency, and, 

(3) Social well-being; 

(c) Promote development of Hawaiian 

home lands for residential, agricultural, 

and pastoral use; 

(d) Protect cultural resources and 

watersheds; 

(e) Consolidate lands or interests in 

lands, such as agricultural and timber 

interests, for more logical and efficient 

management and development; 

(f) Expand homestead communities; 

(g) Accommodate land use 

authorizations; 

(h) Address HHCA beneficiary needs; 

and 

(i) Advance other identifiable 

interests of the beneficiaries consistent 

with the HHCA. 

§ 47.30 When does a land exchange 

advance the interests of the beneficiaries? 

A determination that an exchange 

advances the interests of the 

beneficiaries must find that: 

(a) The exchange supports 

perpetuation and administration of 

Hawaiian home lands; 

(b) The interests of the beneficiaries in 

obtaining non-Hawaiian home lands 

exceeds the interests of the beneficiaries 

in retaining the Hawaiian home lands 

proposed for the exchange, based on an 

evaluation of the factors in § 47.20; and 

(c) The intended use of the conveyed 

Hawaiian home lands will not 

significantly conflict with the 

beneficiaries’ interests in adjacent 

Hawaiian home lands. 

§ 47.35 Must lands exchanged be of equal 

value? 

Hawaiian home lands to be exchanged 

must be of equal or lesser value than the 

lands to be received in the exchange, as 

determined by the appraisal. Once the 

market value is established by an 

approved appraisal, an administrative 

determination as to the equity of the 

exchange can be made based on the 

market value reflected in the approved 

appraisal. 

§ 47.40 How must properties be 

described? 

The description of properties 

involved in a land exchange must be 

either: 

(a) Based upon a survey completed in 

accordance with the Public Land Survey 

System laws and standards of the 

United States; or 

(b) If Public Land Survey System laws 

and standards cannot be applied, based 

upon a survey that both: 

(1) Uses other means prescribed or 

allowed by applicable law; and 

(2) Clearly describes the property and 

allows it to be easily located. 

§ 47.45 How does the exchange process 

work? 

(a) The Secretary recommends the 

parties prepare a land exchange 

proposal in accordance with § 47.50. 

The Secretary also recommends the 

DHHL and the non-DHHL party in the 

exchange meet with the Department 

before finalizing a land exchange 

proposal and signing an agreement to 

initiate the land exchange to informally 

discuss: 

(1) The review and processing 

procedures for Hawaiian home lands 

exchanges; 

(2) Potential issues involved that may 

require more consideration; or 

(3) Any other matter that may make 

the proposal more complete before 

submission to us. 

(b) Whether or not a land exchange 

proposal is completed, the DHHL 

initiates the exchange by preparing the 

documentation, conducting appropriate 

studies, and submitting them to the 

Secretary in accordance with § 47.60. 

(c) Upon completing the review of the 

final land exchange packet under 

§ 47.60, the Secretary will issue a Notice 

of Decision announcing the approval or 

disapproval of the exchange. 

(d) If the Secretary approves an 

exchange, title will transfer in 

accordance with State law. 

§ 47.50 What should DHHL include in a 

land exchange proposal for the Secretary? 

(a) A land exchange proposal should 

include the following documentation: 

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27138 Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules 

The proposal should include . . . that should contain . . . 

(1) Identifying information .................................................. (i) The identity of the parties involved in the proposed exchange; and 

(ii) The status of their ownership of the properties in the exchange, or their ability to 

provide title to the properties. 

(2) Descriptive information ................................................. A legal description of: 

(i) The land considered for the exchange; and 

(ii) The appurtenant rights proposed to be exchanged or reserved. 

(3) Authorized use information ........................................... (i) Any authorized uses including grants, permits, easements, or leases; and 

(ii) Any known unauthorized uses, outstanding interests, exceptions, adverse claims, 

covenants, restrictions, title defects or encumbrances. 

(4) A time schedule for completing the exchange ............. Expected dates of significant transactions or milestones. 

(5) Assignment of responsibilities ...................................... Responsibilities for: 

(i) Performance of required actions; and 

(ii) Costs associated with the proposed exchange. 

(6) Hazardous substance information ................................ Notice of: 

(i) Any known release, storage, or disposal of hazardous substances on non-DHHL 

properties in the exchange; 

(ii) Any commitments regarding responsibility for removal or remedial actions concerning hazardous substances on non-DHHL properties; and 

(iii) All terms and conditions regarding hazardous substances on non-DHHL properties. 

(7) Grants of permission by each party to the other ......... Permission to enter the properties for the purpose of conducting physical examination and studies in preparation for the exchange. Written permission to appraise 

the properties should also be included. 

(8) Three statements .......................................................... Details of: 

(i) Arrangements for relocating tenants occupying the DHHL and non-DHHL properties involved in the exchange; 

(ii) How the land exchange proposal complies with the HHCA and HHLRA; and 

(iii) How the documents of conveyance will be exchanged once the Secretary has 

approved the exchange. 

(b) When the parties to the exchange 

agree to proceed with the land exchange 

proposal, they may sign an agreement 

that DHHL will initiate the exchange. 

§ 47.55 What are the minimum 

requirements for appraisals used in a land 

exchange? 

(a) The following table shows the 

steps in the appraisal process. 

Appraisal process step Requirements 

(1) The parties to the exchange must arrange for appraisals.(i) The parties must arrange for appraisals within 90 days after executing the agreement to initiate the land exchange, unless the parties agree to another schedule. 

(ii) The parties must give the appraiser the land exchange proposal, if any, and the 

agreement to initiate the land exchange, and any attachments and amendments. 

(iii) The DHHL is encouraged to request assistance from the Department’s Office of 

Valuation Services (OVS). OVS can provide valuation services to DHHL, including 

appraisal, appraisal review, and appraisal consultation on a reimbursable basis. 

OVS is also available for post-facto program review to ensure that appraisals conducted by the State are in conformance with the Uniform Standards of Professional Appraisal Practice and the Uniform Appraisal Standards for Federal Land 

Acquisitions as appropriate. 

(2) The qualified appraiser must provide an appraisal report.The appraiser must: 

(i) Meet the qualification requirements in paragraph (b) of this section; 

(ii) Produce a report that meets the qualifications in paragraph (c) of this section; and 

(iii) Complete the appraisal under the timeframe and terms negotiated with the parties in the exchange. 

(3) The Secretary will review appraisal reports ................. The Secretary will evaluate the reports using: 

(i) The Uniform Standards of Professional Appraisal Practice; and 

(ii) The Uniform Appraisal Standards for Federal Land Acquisitions. 

(b) To be qualified under paragraph 

(a)(2) of this section, an appraiser must: 

(1) Be competent, reputable, 

impartial, and experienced in 

appraising property similar to the 

properties involved in the appraisal 

assignment; and 

(2) Be approved by the OVS, if 

required by the Department’s Office of 

Native Hawaiian Relations. 

(3) Be licensed to perform appraisals 

in the State of Hawai’i unless a Federal 

employee whose position requires the 

performance of appraisal duties. Federal 

employees only need to be licensed in 

one State or territory to perform real 

estate appraisal duties as Federal 

employees in all States and territories. 

(c) Appraisal reports for the exchange 

must: 

(1) Be completed in accordance with 

the current edition of the Uniform 

Standards of Professional Appraisal 

Practice (USPAP) and the Uniform 

Appraisal Standards for Federal Land 

Acquisition (UASFLA); and 

(2) Include the estimated market value 

of Hawaiian home lands and nonHawaiian home lands properties 

involved in the exchange. 

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§ 47.60 What documentation must DHHL 

submit to the Secretary in the land 

exchange packet? 

The documents in the exchange 

packet submitted to us for approval 

must include the following: 

The packet must contain . . . that must include . . . 

(a) Required statements .................................................... (1) A statement of approval for the exchange from the Commission; 

(2) A statement of compliance with the National Historic Preservation Act and, as appropriate, a cultural and historic property review; 

(3) An explanation of how the exchange will advance the interests of the beneficiaries; 

(4) A summary of any consultation with any beneficiaries that may have occurred; 

and 

(5) A statement of compliance with the Native American Graves Protection and Repatriation Act. 

(b) Required analyses and reports .................................... (1) Environmental analyses and records sufficient to meet CERCLA, NEPA, and all 

other pertinent Federal environmental requirements; 

(2) Land appraisal reports and statements of qualification of the appraisers in accordance with § 47.55; and 

(3) If property conveyed is adjacent to Hawaiian home lands: 

(i) An analysis of intended use of the Hawaiian home lands conveyed; 

(ii) A finding that the intended use will not conflict with established management objectives on the adjacent Hawaiian home lands; and 

(4) A copy of the land exchange proposal, if any. 

(c) Relevant legal documents ............................................ (1) Any land exchange agreements entered into regarding the subject properties between DHHL and the non-DHHL party; 

(2) Evidence of title; and 

(3) Deeds signed by the parties, with a signature block for the Secretary of the Interior or our authorized representative to approve the transaction. 

Subpart B—Approval and Finalization 

§ 47.65 When will the Secretary approve or 

disapprove the land exchange? 

On receipt of the complete land 

exchange packet from the Commission, 

the Secretary will approve or 

disapprove the exchange within 120 

calendar days. 

(a) Before approving or disapproving 

the exchange, the Secretary will review 

all environmental analyses, appraisals, 

and all other supporting studies and 

requirements to determine whether the 

proposed exchange complies with 

applicable law and advances the 

interests of the beneficiaries. 

(b) The Secretary may consult with 

the beneficiaries when making a 

determination if a land exchange 

advances the interests of the 

beneficiaries. 

(c) After approving or disapproving an 

exchange, the Secretary will notify 

DHHL, the Commission, and other 

officials as required by section 205(b)(2) 

of the HHLRA. 

§ 47.70 How does DHHL complete the 

exchange once approved? 

(a) The DHHL completes the exchange 

in accordance with the requirements of 

State law. 

(b) DHHL shall provide a title report 

to us as evidence of the completed 

exchange. 

PART 48—AMENDMENTS TO THE 

HAWAIIAN HOMES COMMISSION ACT 

Sec. 

48.5 What is the purpose of this part? 

48.6 What definitions apply to terms used 

in this part? 

48.10 What is the Secretary’s role in 

reviewing proposed amendments to the 

HHCA? 

48.15 What are the State’s responsibilities 

in proposing amendments? 

48.20 How does the Secretary determine if 

the State is seeking to amend Federal 

law? 

48.25 How does the Secretary determine if 

the proposed amendment decreases the 

benefits to beneficiaries of Hawaiian 

home lands? 

48.30 How does the Secretary determine if 

Congressional approval is unnecessary? 

48.35 When must the Secretary determine if 

the proposed amendment requires 

Congressional approval? 

48.40 What notification will the Secretary 

provide? 

48.45 When is a proposed amendment 

deemed effective? 

48.50 Can the State of Hawai‘i amend the 

Hawaiian Homes Commission Act 

without Secretarial review? 

Authority: State of Hawai‘i Admission 

Act, 73 Stat. 4, chapter 339, approved March 

18, 1959; Hawaiian Homes Commission Act, 

1920, 42 Stat. 108 et seq., chapter 42; 

Hawaiian Home Lands Recovery Act, 1995, 

109 Stat. 537; 5 U.S.C. 301; 25 U.S.C. 2 and 

9; 43 U.S.C. 1457; 112 Departmental Manual 

28. 

§ 48.5 What is the purpose of this part? 

(a) This part sets forth the policies 

and procedures for: 

(1) Review by the Secretary of 

proposed amendments to the Hawaiian 

Homes Commission Act by the State of 

Hawai‘i; and 

(2) Determination by the Secretary 

whether the proposed amendment 

requires congressional approval. 

(b) This part implements 

requirements of the Hawaiian Homes 

Commission Act, the State of Hawai‘i 

Admission Act, 1959, and the Hawaiian 

Home Lands Recovery Act, 1995. 

§ 48.6 What definitions apply to terms 

used in this part? 

As used in this part, the following 

terms have the meanings given in this 

section. 

Beneficiaries means ‘‘native 

Hawaiian(s)’’ as that term is defined 

under section 201(a) of the Hawaiian 

Homes Commission Act. 

Chairman means the Chairman of the 

Hawaiian Homes Commission 

designated under section 202 of the 

Hawaiian Homes Commission Act. 

Consultation means an open 

discussion process that allows 

interested parties to address potential 

issues, changes, or actions. Consultation 

does not require formal face-to-face 

meetings. However, it does require 

dialogue (verbal, electronic, or printed) 

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or at least a good faith effort to engage 

in dialogue with the beneficiaries. 

DHHL or Department of Hawaiian 

Home Lands means the department 

established by the State of Hawai‘i 

under sections 26–4 and 26–17 of the 

Hawai‘i Revised Statutes to administer 

the Hawaiian Homes Commission Act. 

This department assumes the authorities 

and responsibilities of the Hawaiian 

Homes Commission and the 

Commission serves as the department’s 

executive board under amended section 

202 of the Hawaiian Homes Commission 

Act. 

HHCA or Hawaiian Homes 

Commission Act means the Hawaiian 

Homes Commission Act, 1920, 42 Stat. 

108 et seq., chapter 42, as amended. 

HHLRA or Hawaiian Home Lands 

Recovery Act means the Hawaiian Home 

Lands Recovery Act, 1995, 109 Stat. 537, 

Public Law 104–42. 

Hawaiian home lands means all trust 

lands given the status of Hawaiian home 

lands under section 204 of the Hawaiian 

Homes Commission Act and those lands 

obtained through approval under part 

47, Land Exchange Procedures, by the 

DHHL, and as directed by Congress. 

Lessee means either a: 

(1) Beneficiary who has been awarded 

a lease under section 207(a) of the 

Hawaiian Homes Commission Act; 

(2) Transferee lessee under section 

208(5) of the Hawaiian Homes 

Commission Act; or 

(3) Successor lessee under section 209 

of the Hawaiian Homes Commission 

Act. 

Secretary means the Secretary of the 

Interior or a designated employee. 

Special Trust Funds means the 

Hawaiian home-loan fund, the Hawaiian 

home-operating fund, and the Hawaiian 

home-development fund as defined 

under section 213 of the Hawaiian 

Homes Commission Act. 

§ 48.10 What is the Secretary’s role in 

reviewing proposed amendments to the 

HHCA? 

(a) The Secretary must review 

proposed amendments to the Hawaiian 

Homes Commission Act (HHCA) by the 

State of Hawai‘i to determine whether 

the proposed amendment requires 

approval of Congress. 

(b) The Secretary will notify the 

Chairman and Congress of this 

determination, and if approval is 

required, submit to Congress the 

documents required by § 48.35(b). 

§ 48.15 What are the State’s 

responsibilities in proposing amendments? 

(a) Not later than 120 days after the 

State approves a proposed amendment 

to the HHCA, the Chairman must submit 

to the Secretary a clear and complete: 

(1) Copy of the proposed amendment; 

(2) Description of the nature of the 

change proposed by the proposed 

amendment; and, 

(3) Opinion regarding whether the 

proposed amendment requires the 

approval of Congress. 

(b) The following information must 

also be submitted: 

(1) A description of the proposed 

amendment, including why the 

proposed amendment advances the 

interests of the beneficiaries; 

(2) All testimony and correspondence 

from the Director of the Department of 

Hawaiian Home Lands, Hawaiian 

Homes Commissioners, and Homestead 

Associations, providing views on the 

proposed amendment; 

(3) An analysis of the law and policy 

of the proposed amendment by the 

Department of Hawaiian Home Lands 

and the Hawaiian Homes Commission; 

(4) Documentation of the dates and 

number of hearings held on the 

measure, and a copy of all testimony 

provided or submitted at each hearing; 

(5) Copies of all committee reports 

and other legislative history, including 

prior versions of the proposed 

amendment; 

(6) Final vote totals by the 

Commission and the legislature on the 

proposed amendment forwarded to the 

Secretary of the Interior; 

(7) Summaries of all outreach or 

consultations conducted with the 

beneficiaries regarding the proposed 

amendment; and 

(8) Other additional information that 

the State believes may assist in the 

review of the proposed amendment. 

§ 48.20 How does the Secretary determine 

if the State is seeking to amend Federal 

law? 

The Secretary will determine that 

Congressional approval is required if the 

proposed amendment does any of the 

following: 

(a) Decreases benefits to the 

beneficiaries of Hawaiian home lands; 

(b) Reduces or impairs the Special 

Trust Funds; 

(c) Allows for additional 

encumbrances to be placed on Hawaiian 

home lands by officers other than those 

charged with the administration of the 

HHCA; 

(d) Changes the qualifications of who 

may be a lessee; 

(e) Allows the use of proceeds and 

income from the Hawaiian home lands 

for purposes other than carrying out the 

provisions of the HHCA; or 

(f) Amends a section other than 

sections 202, 213, 219, 220, 222, 224, or 

225, or other provisions relating to 

administration, or paragraph (2) of 

section 204, section 206, or 212 or other 

provisions relating to the powers and 

duties of officers other than those 

charged with the administration of the 

HHCA. 

§ 48.25 How does the Secretary determine 

if the proposed amendment decreases the 

benefits to beneficiaries of Hawaiian home 

lands? 

The Secretary will determine if the 

proposed amendment decreases the 

benefits to the beneficiaries, now or in 

the future, by weighing the answers to 

the following questions: 

(a) How would the proposed 

amendment advance or otherwise 

impact current lessees of Hawaiian 

home lands? 

(b) How would the proposed 

amendment advance or otherwise 

impact HHCA beneficiaries currently on 

a waiting list for a Hawaiian home lands 

lease? 

(c) How would the proposed 

amendment advance or otherwise 

impact HHCA beneficiaries who have 

not yet applied for a Hawaiian home 

lands lease? 

(d) If the interests of the beneficiaries 

who have not been awarded a Hawaiian 

home lands lease and the lessees differ, 

how does the proposed amendment 

weigh the interests of HHCA 

beneficiaries who have not been 

awarded a Hawaiian home lands lease 

with the interests of Hawaiian home 

lands lessees? 

(e) If the interests of the beneficiaries 

who have not been awarded a Hawaiian 

home lands lease and the lessees differ, 

do the benefits to the lessees outweigh 

any detriment to the beneficiaries who 

have not been awarded a Hawaiian 

home lands lease? 

(f) If the interests of the beneficiaries 

differ from the interests of the lessees, 

do the benefits to the beneficiaries 

outweigh any detriment to the lessees? 

§ 48.30 How does the Secretary determine 

if Congressional approval is unnecessary? 

The Secretary will determine that 

Congressional approval is unnecessary 

if the proposed amendment meets none 

of the circumstances in § 48.20. 

§ 48.35 When must the Secretary 

determine if the proposed amendment 

requires Congressional approval? 

The Secretary will review the 

documents submitted by the Chairman, 

and if they meet the requirements of 

§ 48.15, the Secretary will determine 

within 60 days after receiving them if 

the proposed amendment requires 

Congressional approval. 

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§ 48.40 What notification will the Secretary 

provide? 

(a) If the Secretary determines that 

Congressional approval of the proposed 

amendment is unnecessary, the 

Secretary will: 

(1) Notify the Chairmen of the Senate 

Committee on Energy and Natural 

Resources and of the House Committee 

on Natural Resources; and 

(2) Include, if appropriate, an opinion 

on whether the proposed amendment 

advances the interests of the 

beneficiaries. 

(b) If the Secretary determines that 

Congressional approval of the proposed 

amendment is required, the Secretary 

will notify the Chairmen of the Senate 

Committee on Energy and Natural 

Resources and of the House Committee 

on Natural Resources. The Secretary 

will also submit to the Committees the 

following: 

(1) A draft joint resolution approving 

the proposed amendment; 

(2) A description of the change made 

by the proposed amendment and an 

explanation of how the proposed 

amendment advances the interests of 

the beneficiaries; 

(3) A comparison of the existing law 

with the proposed amendment; 

(4) A recommendation on the 

advisability of approving the proposed 

amendment; 

(5) All documentation concerning the 

proposed amendment received from the 

Chairman; and 

(6) All documentation concerning the 

proposed amendment received from the 

beneficiaries. 

§ 48.45 When is a proposed amendment 

deemed effective? 

(a) If the Secretary determines that a 

proposed amendment meets none of the 

criteria in § 48.20, the effective date of 

the proposed amendment is the date of 

the notification letter to the Committee 

Chairmen. 

(b) If the Secretary determines that the 

proposed amendment requires 

congressional approval then the 

effective date of the proposed 

amendment is the date that Congress’ 

approval becomes law. 

§ 48.50 Can the State of Hawai‘i amend the 

Hawaiian Homes Commission Act without 

Secretarial review? 

The Secretary of the Interior must 

review all proposed amendments to the 

Hawaiian Homes Commission Act. Any 

proposed amendments to any terms or 

provisions of the Hawaiian Homes 

Commission Act by the State must also 

specifically state that the proposed 

amendment proposes to amend the 

Hawaiian Homes Commission Act. Any 

state enactment that impacts any of the 

factors in § 48.20 shall have no effect on 

the provisions of the HHCA or 

administration of the trust, except 

pursuant to this part. 

[FR Doc. 2015–11401 Filed 5–8–15; 4:15 pm] 

BILLING CODE 4310–93–P 

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