STAND. COM. REP. NO. 608

Honolulu, Hawaii

RE: S.B. No. 958

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Health and Human Services and Agriculture and Environment, to which was referred S.B. No. 958 entitled:

"A BILL FOR AN ACT RELATING TO CESSPOOLS,"

beg leave to report as follows:

The purpose and intent of this measure is to appropriate funds for the Cesspool Compliance Pilot Grant Project.

Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands, Hawaiʻi Climate Change Mitigation and Adaptation Commission, Hawaii Reef and Ocean Coalition, Hawaiʻi Association of REALTORS, WAI: Wastewater Alternatives & Innovations, and three individuals.

Your Committees received comments on this measure from the Department of Health.

Your Committees find that every cesspool in the State must be upgraded, converted, or connected to a sewerage system by January 1, 2050, with certain exceptions. Your Committees also find that the requirement to upgrade or convert a cesspool imposes a financial burden on low- and moderate-income families. Your Committees further find that the Legislature passed Act 153, Session Laws of Hawaii 2022, to establish in the Department of Health the Cesspool Compliance Pilot Grant Project to assist with conversion costs for low- and moderate-income property owners, including lessees on Hawaiian home lands, located in an area identified as priority level 1 or 2 by the Hawaii cesspool prioritization tool. However, the appropriation made under Act 153 lapsed as of June 30, 2024. This measure re-appropriates funds for the Cesspool Compliance Pilot Grant Project and alleviates the financial challenges many homeowners will face when converting cesspools.

Your Committees note the testimony of the Department of Health stating that it will require two full-time equivalent (2.0 FTE) permanent Engineer III positions and one full-time equivalent (1.0 FTE) permanent Accountant IV position to implement the Cesspool Compliance Pilot Grant Project. Furthermore, should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully request that it consider inserting an appropriation amount of $5,000,000 to fund the Cesspool Compliance Pilot Grant Project.

Your Committees have amended this measure by:

(1) Inserting language requiring the appropriation to include funding for the establishment of three full-time equivalent (3.0 FTE) positions for the Cesspool Compliance Pilot Grant Project; and

(2) Inserting an effective date of December 31, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 958, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 958, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ JOY A. SAN BUENAVENTURA, Chair