This legislation is a response to the previous enactment in 2017 that mandated all cesspools to be converted or upgraded by the year 2050. However, the rising costs – estimated at $1.3 billion – have hindered compliance among property owners. By offering low-interest loans, the bill aims to lower the financial barrier to residential cesspool upgrades and to help significantly reduce the contamination of Hawaii's groundwater, which serves as the main drinking water source for the state. The financing initiative is expected to promote environmental sustainability and health through the installation of safer wastewater systems.
House Bill 2066 aims to address a significant environmental issue in Hawaii related to cesspools, which are responsible for the daily release of over fifty-three million gallons of untreated sewage into the ground. The bill establishes a cesspool conversion on-bill financing program, managed by the Hawaii Green Infrastructure Authority, that provides low-interest loans to eligible low- and moderate-income homeowners. The intent is to facilitate the upgrade or conversion of existing cesspools to approved wastewater systems by tying loan repayments to the homeowners’ real property tax bills, which makes repayment more manageable for residents.
Despite its positive intent, there may be concerns regarding the potential strain on local governmental infrastructures as counties would be required to handle the added task of collecting loan repayments through property tax bills. Additionally, discussions may arise regarding the adequacy of funding to support the proposed program. The bill's requirement for counties to match state funding on a $3 to $1 basis might pose additional fiscal challenges for local governments which can impact their budgets and resource allocation.
The authority will oversee the fund's appropriations and uniformly administer the loan processes, including establishing guidelines and performance audits. The bill also emphasizes the need for cooperation with counties while addressing necessary procedural updates to accommodate the new billing system. Given that the program is set to launch in 2024, timely action will be crucial for effective implementation and community outreach to ensure eligible homeowners are informed and can participate.