HB 1404: RELATING TO CESSPOOL CLOSURE.

A BILL FOR AN ACT

RELATING TO CESSPOOL CLOSURE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that there are more than eighty thousand cesspools across the State that pollute groundwater and nearshore water and threaten environmental and human health, and that there is a compelling state interest to close such cesspools.  Pursuant to Act 125, Session Laws of Hawaii 2017 (Act 125), cesspools must be closed by January 1, 2050, and replaced with approved systems or connected to sewer infrastructure, however the cost impediments to homeowners to comply with Act 125 have made the conversions and connections financially challenging.

     The legislature further finds that in some areas that currently have cesspools, counties are planning to install new wastewater infrastructure to connect existing homes to county sewers.  The legislature also finds that connecting homes to sewers to meet the requirements of Act 125 is a solution that should be encouraged in all areas where this is feasible because it is cost-effective for homeowners and treats wastewater to a higher standard than the most common individual wastewater systems that might replace cesspools in more rural areas, such as septic systems.

     The legislature believes that offering a subsidy to homeowners for their portion of the sewer lateral connections and to help cover the cost of cesspools closures for specific projects will encourage counties to plan more sewer infrastructure expansions in the future, ease the burden on homeowners, and protect the health of Hawaii's environment and people.  Certain projects already in progress in Ewa Beach on Oahu and in Keaukaha on Hawaii island are good candidates to pilot a program that offers this type of assistance in order to determine if such a program should be established on an ongoing basis to help homeowners within sewer improvement districts with their portion of the costs.

     Such a program would provide an incentive for counties to look for additional future projects that might be facilitated by the availability of these funds.

     The purpose of this Act is to appropriate funds to create residential sewer connection and cesspool closure subsidy pilot programs to assist with sewer projects nearing implementation in Ewa Beach, Oahu and Keaukaha, Hawaii.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 for the city and county of Honolulu to establish a residential sewer connection and cesspool closure subsidy pilot program to:

     (1)  Assist with planned sewer projects for residents in Ewa Beach, Oahu; and

     (2)  Provide rebates to homeowners, create a forgivable loan program, or create a program to allow a contractor to claim the funding on behalf of a homeowner;

provided that the city and county of Honolulu shall use no more than $           for the administration of this subsidy pilot program.

     The sum appropriated shall be expended by the city and county of Honolulu for the purposes of this Act.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 for the county of Hawaii to establish a residential sewer connection and cesspool closure subsidy pilot program to:

     (1)  Assist with planned sewer projects for residents in Keaukaha, Hawaii; and

     (2)  Provide rebates to homeowners, create a forgivable loan program, or create a program to allow a contractor to claim the funding on behalf of a homeowner;

provided that the county of Hawaii shall use no more than $           for the administration of this subsidy pilot program.

     The sum appropriated shall be expended by the county of Hawaii for the purposes of this Act.

     SECTION 4.  The city and county of Honolulu and county of Hawaii shall each submit a report on how the funds appropriated pursuant to this Act were disbursed, how many homeowners benefited, and any recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Residential Sewer Connection and Cesspool Closure Subsidy Pilot Programs; City and County of Honolulu; County of Hawaii; Appropriation

Description:

Appropriates funds for residential sewer connection and cesspool closure subsidy pilot programs.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

Relating to cesspool closure.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that there are more than eighty thousand cesspools across the State that pollute groundwater and nearshore water and threaten environmental and human health, and that there is a compelling state interest to close such cesspools.  Pursuant to Act 125, Session Laws of Hawaii 2017 (Act 125), cesspools must be closed by January 1, 2050, and replaced with approved systems or connected to sewer infrastructure, however the cost impediments on homeowners to comply with Act 125 have made the conversions and connections financially challenging.

     The legislature further finds that in some areas that currently have cesspools, counties are planning to install new wastewater infrastructure to connect existing homes to county sewers.  The legislature also finds that connecting homes to sewers to meet the requirements of Act 125 is a solution that should be encouraged in all areas where this is feasible because it is cost-effective for homeowners and treats wastewater to a higher standard than the most common individual wastewater systems that might replace cesspools in more rural areas, such as septic systems.

     The legislature believes that offering a subsidy to homeowners for their portion of the sewer lateral connections and to help cover the cost of cesspools closures for specific projects will encourage counties to plan more sewer infrastructure expansions in the future, ease the burden on homeowners, and protect the health of Hawaii's environment and people.  Certain projects already in progress in Ewa Beach on Oahu and in Keaukaha on Hawaii Island are good candidates to pilot a program that offers this type of assistance in order to determine if such a program should be established on an ongoing basis to help homeowners within sewer improvement districts with their portion of the costs.

     Such a program would provide an incentive for counties to look for additional future projects that might be facilitated by the availability of these funds.

     The purpose of this Act is to appropriate funds to create residential sewer connection and cesspool closure subsidy pilot programs to assist with sewer projects nearing implementation in Ewa Beach, Oahu and Keaukaha, Hawaii.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $12,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the city and county of Honolulu to establish a residential sewer connection and cesspool closure subsidy pilot program to:

     (1)  Assist with planned sewer projects for residents in Ewa Beach, Oahu; and

     (2)  Provide rebates to homeowners, create a forgivable loan program, or create a program to allow a contractor to claim the funding on behalf of a homeowner;

provided that the city and county of Honolulu shall use no more than $           for the administration of this subsidy pilot program.

     The sums appropriated shall be expended by the city and county of Honolulu for the purposes of this Act.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $6,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the county of Hawaii to establish a residential sewer connection and cesspool closure subsidy pilot program to:

     (1)  Assist with planned sewer projects for residents in Keaukaha, Hawaii; and

     (2)  Provide rebates to homeowners, create a forgivable loan program, or create a program to allow a contractor to claim the funding on behalf of a homeowner;

provided that the county of Hawaii shall use no more than $           for the administration of this subsidy pilot program.

     The sums appropriated shall be expended by the county of Hawaii for the purposes of this Act.

     SECTION 4.  The city and county of Honolulu and county of Hawaii shall each submit a report on how the funds appropriated pursuant to this Act were disbursed, how many homeowners benefited, and any recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

     SECTION 5.  This Act shall take effect on July 1, 2025.

Report Title:

Cesspool Closure; City and County of Honolulu; County of Hawaii; Appropriation

Description:

Appropriates funds for a residential sewer connection and cesspool closure subsidy pilot program.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  666

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1404

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committees on Energy & Environmental Protection and Water & Land, to which was referred H.B. No. 1404 entitled:

"A BILL FOR AN ACT RELATING TO CESSPOOL CLOSURE,"

beg leave to report as follows:

     The purpose of this measure is to appropriate funds to create residential sewer connection and cesspool closure subsidy pilot programs to assist with sewer projects nearing implementation in Ewa Beach, Oahu and Keaukaha, Hawaii.

     Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands; Department of Land and Natural Resources; Department of Health; Hawaiʻi Reef and Ocean Coalition; and three individuals.

     Your Committees find that every cesspool in the State, excluding those granted certain exemptions, must be upgraded or converted to a Director of Health-approved wastewater system or connected to a sewerage system by January 1, 2050.  Your Committees further find that in some areas that currently have cesspools, counties are planning to install new wastewater infrastructure to connect homes to county sewers.  Your Committees believe that the State should support these initiatives and offer a subsidy to homeowners for their portion of the sewer lateral connections to help offset costs.  This measure addresses this need by appropriating funds to create residential sewer connection and cesspool closure subsidy pilot programs to assist with sewer projects nearing implementation.

     Your Committees have amended this measure by:

     (1)  Changing the appropriations to an unspecified amount and deleting the appropriations for fiscal year 2026-2027;

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committees respectfully request your Committee on Finance, should it deliberate on this measure, to consider appropriation amounts of:

     (1)  $12,000,000 for the City and County of Honolulu to establish a Residential Sewer Connection and Cesspool Closure Subsidy Pilot Program; and

     (2)  $6,000,000 for the County of Hawaii to establish a Residential Sewer Connection and Cesspool Closure Subsidy Pilot Program.

     As affirmed by the records of votes of the members of your Committees on Energy & Environmental Protection and Water & Land that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1404, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1404, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Energy & Environmental Protection and Water & Land,