HB1730 HD1

SECTION 1. The legislature finds that additional resources are needed to help governments and homeowners address Hawaii's cesspool pollution problem. Existing law requires that all cesspools be converted by 2050. However, these much needed conversions must be affordable for homeowners and government entities.

The legislature further finds that the health of Hawaii's people and the quality of Hawaii's waters are being harmed by pollution from individual wastewater systems, especially cesspools. Cesspools are antiquated, substandard systems that damage public health, pollute drinking water, and lower water quality in streams, groundwater, nearshore marine areas, and the ocean. Hawaii has more than eighty thousand cesspools that discharge about fifty million gallons of wastewater into the State's groundwater every day. Cesspool pollution also harms public recreation and the precious coral reefs on which the State's economy, shoreline, fisheries, and native species depend. Wastewater systems release over three thousand tons of nutrients per year, which fertilize algae that can smother coral reefs. Maintaining the cleanliness of the State's waters falls under the State's obligation to protect, control, and regulate the use of Hawaii's water resources for the benefit of its people and the legislature's obligation to provide for a water resources agency that shall, among other things, set overall water quality and use policies and protect ground and surface water resources and watersheds, pursuant to article XI, section 7, of the Hawaii State Constitution.

The legislature also finds that to protect the public health and environment, including coral reefs, cesspools should be replaced by connections to sewerage systems or, in areas that are too remote to be feasibly connected, upgraded either with individual on-site wastewater disposal systems or cluster wastewater treatment systems. Upgrading cesspools will benefit public health, water quality, and coral reefs and enhance the State's economy by providing better visitor experience and stimulating new green jobs related to the installation of wastewater systems. Protecting the State's coral reefs also will benefit fisheries and protect shoreline properties from erosion. The United States Geological Survey estimates that coral reefs in Hawaii provide flood protection benefits to Hawaii residents and $836,000,000 annually in averted damages to property and economic activity.

To address the State's cesspool pollution, Act 125, Session Laws of Hawaii 2017, and Act 87, Session Laws of Hawaii 2022, require all cesspools to be upgraded or converted to a director-approved wastewater system or connected to a sewerage system before January 1, 2050, with certain exemptions. Although more than three thousand three hundred cesspools need to be upgraded per year on average to meet the 2050 mandate, currently less than four hundred cesspools per year are being upgraded.

In Act 217, Session Laws of Hawaii 2024, the legislature appropriated funds for the university of Hawaii water resource research center to prepare an overlay of sewers and cesspools and in Act 198, Session Laws of Hawaii 2025, the legislature established a three-year new wastewater system and individual wastewater system technology testing pilot program. These Acts are intended to help the counties plan for sewer expansion and cesspool upgrades and help the director of health expedite approval of new wastewater technologies in the near term. However, the cesspool upgrade effort will also need additional strategic planning and resources for the long term.

The legislature additionally finds that, given the scope of Hawaii's cesspool pollution problem, the department of health needs additional support and resources to help implement the program of cesspool upgrades, including:

(1) Advice from a committee of technical advisors to help determine the best, most affordable solutions;

(2) Advice in revising existing administrative rules, which were adopted a decade ago and may exclude some feasible, affordable solutions; and

(3) Additional department personnel to focus solely on cesspool upgrades.

Additionally, the legislature finds that the department of health should examine rules and policies adopted in other states as models to find more affordable means of improving public health and the environment without compromising water quality. For example, the department of health's current administrative rules require an individual wastewater system to be designed assuming a home produces two hundred gallons of wastewater per day per bedroom, whereas many other states use a lower number. This requirement tends to result in larger, more expensive individual wastewater systems in Hawaii. Identifying ways to reduce excavation, which is a major cost of installing an individual waste system given the State's geology, could reduce costs. Additionally, treating wastewater adequately before disposing of it through an existing cesspool could improve water quality while reducing costs.

Accordingly, the purpose of this Act is to:

(1) Establish a cesspool conversion implementation working group to assist the department of health in its review of rules and practices for cesspools and wastewater systems;

(2) Require the department of health, in consultation with the cesspool conversion implementation working group, to propose changes for administrative rules and practices to make wastewater systems and cesspool upgrades and conversions more affordable without compromising water quality;

(3) Establish positions within the department of health focused on implementing the cesspool compliance program and related activities; and

(4) Appropriate funds.

SECTION 2. (a) There is established a cesspool conversion implementation working group to assist the department of health in reviewing administrative rules and practices for cesspools and wastewater systems. The cesspool conversion implementation working group shall consist of members selected by the director of health, unless otherwise specified, from various backgrounds with knowledge of wastewater technologies and systems and shall include but not be limited to:

(1) The director of health or the director's designee;

(2) Members of the house of representatives or the members' designees, to be selected by the speaker of the house of representatives;

(3) Members of the senate or the members' designees, to be selected by the president of the senate;

(4) The administrator of the state historic preservation division of the department of land and natural resources or the administrator's designee;

(5) The chairperson of the Hawaiian homes commission or the chairperson's designee;

(6) Licensed consulting individual wastewater systems engineers working on Oahu sites;

(7) Licensed consulting individual wastewater systems engineers working on Maui sites;

(8) Licensed consulting individual wastewater systems engineers working on Kauai sites;

(9) Licensed consulting individual wastewater systems engineers working on Hawaii Island sites;

(10) Licensed individual wastewater systems contractors working on Oahu sites;

(11) Licensed individual wastewater systems contractors working on Maui sites;

(12) Licensed individual wastewater systems contractors working on Kauai sites;

(13) Licensed individual wastewater systems contractors working on Hawaii Island sites;

(14) One University of Hawaii professor who has knowledge and experience with wastewater issues in the State and nationally;

(15) One county government official selected by the Hawaii State Association of Counties who has knowledge and experience with wastewater issues in the State;

(16) One wastewater industry professional in Hawaii who has knowledge and experience in wastewater systems and individual wastewater systems technologies;

(17) One individual who helped develop the Hawaiʻi cesspool prioritization tool;

(18) Two individuals from non-profit groups who have knowledge of wastewater issues in the State; and

(19) One individual who has knowledge of alternative wastewater systems in other states.

(b) The department of health, in consultation with the cesspool conversion implementation working group, shall review its administrative rules and practices and propose changes that have the potential to make wastewater systems and cesspool upgrades more affordable without compromising water quality.

(c) The department of health may adopt rules pursuant to chapter 91, Hawaii Revised Statutes, for the purposes of this Act.

(d) The department of health shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2028.

(e) The cesspool conversion implementation working group shall dissolve on June 30, 2028.

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 2026-2027 for the establishment of the following positions focused on achieving cesspool upgrades within a branch of the department of health:

(1) One full-time equivalent (1.0 FTE) permanent program specialist V position; and

(2) One full-time equivalent (1.0 FTE) permanent engineer V position.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 4. 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 2026-2027 to hire a consultant to assist the cesspool conversion implementation working group in advising the department of health on changes to the department's administrative rules and policies that have the potential to make wastewater systems and cesspool upgrades more affordable without compromising water quality.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

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

HOUSE OF REPRESENTATIVES	H.B. NO.	1730
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII