Hawaii County committee presses DEM on timelines, costs and staffing for EPA-mandated wastewater projects

HILO — The Hawaii County Communication Reports and Council Oversight Committee on Jan. 16 heard a progress update from the Department of Environmental Management on multiple wastewater projects required under Environmental Protection Agency administrative orders and sought clearer timelines, updated costs and staffing plans.

The department presented project-by-project status updates, including work at the Hilo Wastewater Treatment Plant, collection and treatment projects in Pahala and Na'alehu, and a force-main replacement at Halalaiwai. Department project coordinator Mark Grant said Phase 1 work at Hilo includes a new headworks building, primary-tank rehabilitation, replacement of pump equipment and a new solids-handling/SCADA building; general contractor NAND Inc. has finished clearing and staging and procurement is under way. Grant said Phase 2 — which would replace the existing secondary treatment with an activated sludge process and prepare the county to meet potential future nutrient-removal requirements — is at 100% design pending one final review, and that the EPA consent-agreement due date for that work is June 30, 2035.

Why it matters: Several of the projects are large, long-running and linked to federal deadlines. Council members emphasized that outdated cost estimates, incomplete permits and limited county staffing create risk to schedules and to the county’s ability to meet consent-order obligations.

Council members repeatedly pressed DEM for updated cost figures. Grant acknowledged some cost estimates are from 2024 and said the department has not yet directed consultants to reprice them; he characterized an older estimate as "plus or minus $100,000,000." Finance Director Diane Nakagawa told the committee that the Hilo project alone is about $337,000,000 and that the portfolio of projects approaches nearly $1 billion in total scope, stressing cash-flow and staffing challenges as the county enters budget season.

Legal context: Corporation Counsel Diana Mellon Lacey told the committee the county can notify EPA of potential delays and, when appropriate, request time extensions with mitigation plans; EPA may impose fines starting the day a deadline is missed if an extension is not granted. Mellon Lacey said two AOCs (Pahala/Na'alehu) carry particularly tight timetables.

On permitting and sequencing, DEM said some required permits remain outstanding: Department of Health approvals for Phase 2 have been completed, but building permits have not been submitted. For certain force-main projects, DEM said the team is pursuing environmental-assessment exemptions and still must complete Section 106 and Section 7 consultations for cultural and environmental compliance where applicable.

Staffing and operations: Committee members asked how the county will staff and operate upgraded facilities. DEM said it is completing a staffing analysis, planning proactive operator training with vendors and contractors during start-up, and preparing O&M manuals to meet regulatory requirements.

Next steps and oversight: Several council members asked DEM to provide a consolidated spreadsheet showing each project’s status, compliance milestones, anticipated completion dates and funding sources; Kelly Hartman (acting regulatory administrator) said milestone spreadsheets and semiannual reports to EPA are maintained and posted online and can be provided to the council. Council member Kirkwood requested the spreadsheet to aid budget planning and to evaluate fiscal trade-offs.

The committee voted to close the file on Communication 7-12 by recorded voice; the chair announced the motion approved with eight in favor and one excused. The committee also voted to go into an executive session to consult with council attorneys and DEM on certain concerns.

Quotes: "The estimated cost, which is a little out of date at this point, is plus or minus a $100,000,000," Mark Grant said of an older Hilo estimate. Corporation Counsel Diana Mellon Lacey said, "We can request an extension if circumstances have changed ... but it has to be reasonable, and we have to have a mitigation plan." Alan Fukumizu, a licensed wastewater operator who testified in public comment, urged the county to require full permit-level confined-space procedures until written protocols are complete.

What’s next: DEM will continue design, procurement and permitting work; the council requested updated cost estimates, a consolidated project-and-finance spreadsheet, and periodic updates as budget decisions approach. The committee recessed to consult staff and later moved into executive session on a separate set of council concerns.