SB426 HD2

SECTION 1. The legislature finds that the health of Hawaii's people and quality of Hawaii's waters are being harmed by pollution from cesspools. Hawaii has more than eighty thousand cesspools that discharge about fifty million gallons of wastewater into the State's groundwater every day. Cesspools are antiquated, substandard systems that damage public health; pollute drinking water; and lower water quality in streams, groundwater, nearshore marine areas, and the ocean. Cesspool pollution also harms public recreation and the precious coral reefs on which Hawaii's economy, shoreline, fisheries, and native species depend.

In Act 125, Session Laws of Hawaii 2017, the legislature required that, unless exempted, all cesspools be upgraded to a septic system or aerobic treatment unit system or connected to a sewerage system by 2050 and directed the department of health to develop a system to prioritize the upgrade, conversion, or connection of cesspools based on their impact on public health.

Furthermore, in Act 132, Session Laws of Hawaii 2018, the legislature authorized the department of health to establish the cesspool conversion working group to develop a long-range, comprehensive plan for conversion of cesspools statewide by 2050 and consider and recommend means by which the department can ensure that cesspools are converted to more environmentally-responsible waste treatment systems or connected to sewer systems. The legislature also commissioned a statewide study of sewage contamination in nearshore marine areas to further supplement reports conducted by the department of health on cesspools.

The legislature notes that the cesspool conversion working group recently issued its final report to the legislature. In its final report, the working group indicated that over the past four years, it had gathered and considered new scientific and policy data, studies by wastewater experts, activities in other jurisdictions, owners' ability to pay, financing mechanisms, and the latest technologies for treating wastewater. Based on this work, the working group recommended ways to facilitate the upgrading of cesspools in Hawaii. The University of Hawaii's 2022 Hawaii cesspool hazard assessment and prioritization tool was developed for the working group and applied to determine which cesspools should be upgraded first.

The legislature further finds that in its final report, the working group recommended staggering the upgrades of cesspools and prioritizing them based on their environmental impact. Priority level 1 cesspools are those that cause the most pollution and represent the greatest contamination hazard. The report categorized 13,821 cesspools in the State as priority level 1. Priority level 2 cesspools are those cesspools that cause the next most pollution and represent a significant contamination hazard. The report categorized 12,367 cesspools in the State as priority level 2.

The working group recommended, based on updated information about pollution impacts, that priority level 1 cesspools be required to upgrade by 2030 and the next most-polluting priority level 2 cesspools be required to upgrade by 2035. The working group recommended that the remaining cesspools categorized as priority level 3 (55,237, or approximately sixty-nine per cent of the total) not be required to upgrade until 2050, pursuant to existing law.

However, the legislature is concerned that the accelerated timelines for required upgrades, conversions, or connections may place substantial financial burdens on residents of the State, especially residents on fixed or limited income.

Therefore, the purpose of this Act is to implement the recommendation of the working group, with modification, to accelerate the dates for required upgrades, conversions, or connections of priority level 1 cesspools and priority level 2 cesspools by requiring:

(1) Priority level 1 cesspools, with certain exceptions, to be upgraded, converted, or connected before January 1, 2035; and

(2) Priority level 2 cesspools to be upgraded, converted, or connected before January 1, 2040.

SECTION 2. Chapter 342D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§342D- Cesspools; mandatory upgrade, conversion, or connection; priority level 1; priority level 2. (a) Every cesspool in the State categorized as priority level 1 according to the University of Hawaii's 2022 Hawaii cesspool hazard assessment and prioritization tool shall be:

(1) Upgraded or converted to a director-approved wastewater system; or

(2) Connected to a sewerage system,

before January 1, 2035; provided that priority level 1 cesspools on recreational residence leases within the Kokee state park and Waimea Canyon state park on the island of Kauai shall be upgraded, converted, or connected before January 1, 2040.

(b) Every cesspool in the State designated as priority level 2 according to the University of Hawaii's 2022 Hawaii cesspool hazard assessment and prioritization tool shall be:

(1) Upgraded or converted to a director-approved wastewater system; or

(2) Connected to a sewerage system,

before January 1, 2040.

(c) The director may grant an exemption from the requirements of subsections (a) and (b) to the property owner of a cesspool who applies for an exemption and presents documentation showing a legitimate reason that makes it infeasible to upgrade, convert, or connect the cesspool. For the purposes of this subsection, a legitimate reason shall include but not be limited to:

(1) Small lot size;

(2) Steep topography;

(3) Poor soils;

(4) Accessibility issues; or

(5) A planned development of sewerage upgrades to an area.

(d) The department may grant extensions of up to five years at a time from the requirements of subsections (a) and (b) based on demonstration of financial inability to pay for or finance a cesspool upgrade, conversion, or connection; provided that the department of health may adopt rules pursuant to chapter 91 necessary to effectuate the purposes of this subsection.

(e) Notwithstanding any law to the contrary, no penalty or other assessment for any violation of this section shall constitute a lien on the real property. Notwithstanding any law to the contrary, no seizure of real property shall be authorized for any violation of this section.

(f) As used in this section, "cesspool" has the same meaning as in section 342D‑72."

SECTION 3. Section 342D-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) [~~Before~~] Except as otherwise provided in section 342D- , before January 1, 2050, every cesspool in the State, excluding cesspools granted exemptions by the director [~~of health~~] pursuant to subsection (b), shall be:

(1) Upgraded or converted to a director-approved wastewater system; or

(2) Connected to a sewerage system."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on June 30, 3000.

THE SENATE	S.B. NO.	426
THIRTY-SECOND LEGISLATURE, 2023		S.D. 2
STATE OF HAWAII		H.D. 2