STAND. COM. REP. NO. 3726

Honolulu, Hawaii

RE: H.B. No. 1618

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Agriculture and Environment, Health and Human Services, and Ways and Means, to which was referred H.B. No. 1618, H.D. 1, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to establish and appropriate funds for a Cesspool Conversion Revolving Loan Fund, to be administered by the Hawaii Green Infrastructure Authority, to provide financial assistance, including low-interest or forgivable loans, to eligible homeowners for the upgrade, conversion, or connection of cesspools.

Your Committees received testimony in support of this measure from the Department of Health; Department of Land and Natural Resources; Hawaii Green Infrastructure Authority; Public Utilities Commission; Office of Planning and Sustainable Development; University of Hawaiʻi Sea Grant College Program and Water Resources Research Center; Office of Climate Change, Sustainability, and Resiliency of the City and County of Honolulu; two members of the Hawaiʻi County Council; one member of the Kauaʻi County Council; Wastewater Alternatives & Innovations; Surfrider Foundation, Hawaiʻi Region; Hawaii State Association of Counties; Climate Change and Health Working Group; Hawaiʻi Reef and Ocean Coalition; Public Access to SunScreens; Nature Conservancy, Hawaiʻi and Palmyra; Puakō For Reefs; Hawaiʻi Ocean Legislative Task Force; Hawaiʻi Association of REALTORS; and twenty-three individuals.

Your Committees received comments on this measure from the Hawaii Bankers Association.

Your Committees find that funding availability remains one of the most significant barriers to cesspool conversion. Because it is critical to both human and environmental health that the State's cesspools be eliminated as soon as possible, it is important that more financial assistance options be made available to homeowners. Your Committees believe that innovative financing resource proposals are necessary to bolster the Hawaii Green Infrastructure Authority's mission to assist homeowners in upgrading, converting, or connecting their cesspools. This measure helps provide additional resources for homeowners to upgrade their cesspools and keep the State on target with the deadline to convert all cesspools in the State by 2050.

Your Committees have amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Agriculture and Environment, Health and Human Services, and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1618, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1618, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Environment, Health and Human Services, and Ways and Means,

________________________________ JOY A. SAN BUENAVENTURA, Chair	________________________________ MIKE GABBARD, Chair
	________________________________ DONOVAN M. DELA CRUZ, Chair