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Lawmakers hear how proposed funding measures would ease cost burden of cesspool conversions

House Committee on Finance · March 2, 2026
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Summary

Multiple bills aimed at financing cesspool conversions drew agency support; Department of Health and DNR stood on written testimony and advocates emphasized affordability and technical assistance, while the Office of Hawaiian Affairs and local governments pledged support for outreach and equity measures.

The Finance Committee heard several bills aimed at easing the financial and technical burdens of Hawaii’s mandated cesspool conversions. Representatives from the Department of Health (John Nagato) and Department of Land and Natural Resources stood on written testimony in support of measures such as HB1618 HD1 and related bills. Testimony emphasized that mandatory upgrades required by law are expensive for homeowners and that the Department needs additional technical staffing and funding to oversee a large conversion program.

Guy Moralo of the Hawaii Green Infrastructure Authority told lawmakers he is discussing a potential $1.6 million city contribution that could be leveraged with state funds to expand loan or grant assistance, and representatives from wastewater alternatives and innovation groups emphasized affordability barriers for low- and moderate-income homeowners.

Advocates including the Nature Conservancy and Hawaii Reef and Ocean Coalition emphasized the environmental stakes: cesspools are a leading source of groundwater and reef pollution. Testimony called for outreach and education as essential components of any financing package; one witness said investment in technical assistance and staff would allow the Department of Health to implement conversion programs equitably and effectively.

Committee members asked agencies for details on program design, eligibility, and potential leveraging with county funds; at the close of the hearing there were no formal votes recorded on these bills during the March 2 session.

Why it matters: Hawaii has a statutory timetable to upgrade thousands of cesspools to protect groundwater and coastal reefs. Financing and technical assistance are central to meeting conversion milestones without unduly burdening homeowners.

What’s next: Agencies were asked to provide clearer cost estimates, eligibility criteria, and program administration plans for committee consideration.