The Maui County Budget, Finance and Economic Development Committee on Thursday recommended first reading of two companion measures that would allow the county to accept about $64,467,830 in federal disaster-relief funds routed through the State Drinking Water State Revolving Fund to repair and strengthen drinking-water infrastructure in Lahaina and West Maui.

Deputy Director Kimo Landgraf of the Department of Water Supply told the committee the bills would permit the county to enter an intergovernmental loan agreement with the state drinking-water program so the department can design and construct recovery projects while other federal recovery programs are finalized. "So today we're trying to amend our budget because we have some funds that are available from the state of Hawaii drinking water, state revolving funds for loan for the wildfire disaster relief projects," Landgraf said.

Stantec water-funding specialist Kim Pugel explained the funding mechanism: the Environmental Protection Agency authorized a disaster supplemental appropriation passed by Congress in December 2024; the state Department of Health received the allocation in August and is offering the county a DWSRF loan to deliver the funds. Pugel said the loan would be heavily subsidized and could receive up to 90% principal forgiveness under state terms if the county meets eligibility requirements. "These bills will authorize the county to secure around 64 and a half million dollars from the Environmental Protection Agency," Pugel told the committee.

The administration’s materials and presenters identified specific projects the money would support in West Maui, chiefly in Lahaina: electrical and motor-control upgrades and emergency generators for the Waipuka and Kanaha well sites; a Lahaina waterline improvement project that upsizes pipe to increase fire-flow capacity; exploratory and development work for Laniapoku wells (L1 and L3); development of the Mahina Hina backup well; and exploratory and development work at Honolua (H1 and H2).

Pugel said many of the projects were at advanced stages of design or procurement: some bids have closed and would be ready to be encumbered as soon as loan execution is complete, while others remain in design and would be bid in 2026. She told the committee loan execution could begin in 2026 and the Department of Water Supply expects to encumber the funds by the end of calendar year 2026 to meet program timelines.

Committee members asked about the origin of the funds, program terms and interactions with other recovery sources. Pugel and Landgraf said the DWSRF funds are intended to be complementary to FEMA public assistance and the U.S. Department of Housing and Urban Development’s Community Development Block Grant–Disaster Recovery (CDBG-DR) program, filling timing gaps so projects can proceed while CDBG-DR and other programs are set up. Pugel explained some administrative fees are held by the state and that the precise subsidized interest rate for the remaining roughly $6.5 million (the portion not forgiven if full principal forgiveness is granted) will be set at loan execution.

Two members of the public spoke during oral testimony. A representative identifying as the Royal House of Hawaii raised concerns about historic land titles and descendants not being contacted about projects; another testifier from Kula asked officials to remember upcountry water needs.

Member Cook moved to recommend first reading of Bill 150 (2025) and Bill 151 (2025); Member Ou Hodgins seconded. The committee recorded a favorable recommendation by voice/hand vote: seven in favor, zero opposed, one excused (Member Lee). The chair closed the meeting after the vote.

Why it matters: the DWSRF loan authorization would let the county begin or continue construction on water-source and distribution upgrades needed both to restore service in areas affected by the August wildfire and to reduce future disaster risk. The committee was told the maximum principal-forgiveness terms significantly reduce the county’s borrowing burden if the county meets the state’s conditions for the additional forgiveness.

What’s next: the measures will proceed to the full County Council for further consideration; the administration is requesting final action by Dec. 31, 2025 to secure the highest level of principal forgiveness outlined by the state.