Senate committee defers bill that would cap water and sewer charges for DHHL beneficiaries after utilities warn of major revenue loss

Senate committees on Hawaiian Affairs, Housing and Energy recessed debate and moved to indefinitely defer Senate Bill 1409 on a recommendation from the chair after county water and sewer officials warned the proposal could create substantial revenue shortfalls.

The bill would limit certain county user fees for Department of Hawaiian Home Lands (DHHL) beneficiaries, a change DHHL asked the legislature to consider to reduce monthly housing costs for beneficiaries. Department of Hawaiian Home Lands Director Carly Watson testified in support and said, "A typical homesteader pays about $240 a month for sewer and water," and that DHHL identified about 4,443 existing DHHL customers for the analysis she presented.

Why it matters: county water and sewer systems said the change would shift costs onto other ratepayers or require service cuts. Multiple municipal officials told the committees they oppose the measure as written because of the scale of projected lost revenue and the potential operational impact on utility systems.