| 47 | | - | SECTION 1. The legislature finds that Hawaii has more than eighty thousand cesspools that discharge approximately 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, ground waters, nearshore marine areas, and the ocean. Cesspool pollution also harms public recreation and coral reefs. To mitigate the impacts of cesspools on public health and the environment, the legislature passed Act 125, Session Laws of Hawaii 2017, which requires all cesspools to be upgraded to a septic system or aerobic treatment unit system or connected to a sewerage system by 2050. The legislature finds that while this is an important goal, the State faces challenges in meeting this target. Homeowners living on properties with cesspools face expensive costs to comply with the cesspool upgrade mandate, including installation, maintenance, and long-term financing costs. The legislature further finds that Act 132, Session Laws of Hawaii 2018, authorized the department of health to establish the cesspool conversion working group to develop a long-range, comprehensive plan for the conversion of cesspools statewide by 2050. The working group identified potential ways to finance the conversion of cesspools. One potential means of financing cesspool conversions is through the United States Environmental Protection Agency's clean water state revolving fund program. This program offers low-cost financing for wastewater infrastructure and water quality projects, including the installation of new septic systems and the conversion of cesspools to septic systems. The program functions like an environmental infrastructure bank, providing funding, primarily through below-market interest rate loans, to eligible borrowers. Individual states are afforded extensive flexibility in administering the clean water state revolving fund program in their respective jurisdictions: states have the authority to define project and applicant eligibilities, financing terms, and loan forgiveness options for qualified borrowers. The program may issue loans to municipalities as well as to individual homeowners, citizen groups, and nonprofit organizations. The legislature further finds that, as of 2020, eleven states, not including Hawaii, regularly use the clean water state revolving fund program to finance decentralized wastewater projects. These states use the program to finance projects using a variety of lending structures, including direct homeowner loans, linked deposit loans, pass-through loans, sponsorship, and co-funding. The legislature further finds that a significant amount of additional money will become available through the clean water state revolving fund program in coming years due to increased funding under the federal Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law. In recognition of this additional funding, the legislature finds that the department of health should prioritize the use of moneys in the water pollution control revolving fund, through which Hawaii administers the clean water state revolving fund program, to finance projects that eliminate cesspools. Accordingly, the purpose of this Act is to require the department of health, to the extent allowable under federal law, to prioritize the use of water pollution control revolving fund moneys for projects by homeowners to upgrade cesspools to director-approved wastewater systems or connect homeowners' properties to sewerage systems. SECTION 2. Chapter 342D, Hawaii Revised Statutes, is amended by adding a new section to part V to be appropriately designated and to read as follows: "§342D- Prioritization of projects that eliminate cesspools. Notwithstanding any provision of this part to the contrary, and to the extent allowable under federal law, the director shall prioritize the use of revolving fund moneys for projects by homeowners to: (1) Upgrade cesspools to director-approved wastewater systems; or (2) Connect homeowners' properties to sewerage systems, including projects to install cluster systems or community package plants; provided that the project results in the closure of a cesspool in compliance with section 342D-72." SECTION 3. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, the conflicting part of this Act shall be inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned. Any administrative rules adopted pursuant to this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State. SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 5. New statutory material is underscored. SECTION 6. This Act shall take effect on December 31, 2050. |
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| 47 | + | SECTION 1. The legislature finds that Hawaii has more than eighty thousand cesspools that discharge approximately 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, ground waters, nearshore marine areas, and the ocean. Cesspool pollution also harms public recreation and coral reefs. To mitigate the impacts of cesspools on public health and the environment, the legislature passed Act 125, Session Laws of Hawaii 2017, which requires all cesspools to be upgraded to a septic system or aerobic treatment unit system or connected to a sewerage system by 2050. The legislature finds that while this is an important goal, the State faces challenges in meeting this target. Homeowners living on properties with cesspools face expensive costs to comply with the cesspool upgrade mandate, including installation, maintenance, and long-term financing costs. The legislature further finds that Act 132, Session Laws of Hawaii 2018, authorized the department of health to establish the cesspool conversion working group to develop a long-range, comprehensive plan for the conversion of cesspools statewide by 2050. The working group identified potential ways to finance the conversion of cesspools. One potential means of financing cesspool conversions is through the United States Environmental Protection Agency's clean water state revolving fund program. This program offers low-cost financing for wastewater infrastructure and water quality projects, including the installation of new septic systems and the conversion of cesspools to septic systems. The program functions like an environmental infrastructure bank, providing funding, primarily through below-market interest rate loans, to eligible borrowers. Individual states are afforded extensive flexibility in administering the clean water state revolving fund program in their respective jurisdictions: states have the authority to define project and applicant eligibilities, financing terms, and loan forgiveness options for qualified borrowers. The program may issue loans to municipalities as well as to individual homeowners, citizen groups, and nonprofit organizations. The legislature further finds that, as of 2020, eleven states, not including Hawaii, regularly use the clean water state revolving fund program to finance decentralized wastewater projects. These states use the program to finance projects using a variety of lending structures, including direct homeowner loans, linked deposit loans, pass-through loans, sponsorship, and co-funding. The legislature further finds that a significant amount of additional money will become available through the clean water state revolving fund program in coming years due to increased funding under the federal Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law. In recognition of this additional funding, the legislature finds that the department of health should prioritize the use of moneys in the water pollution control revolving fund, through which Hawaii administers the clean water state revolving fund program, to finance projects that eliminate cesspools. Accordingly, the purpose of this Act is to require the department of health, to the extent allowable under federal law, to prioritize the use of water pollution control revolving fund moneys for projects by homeowners to upgrade cesspools to director-approved wastewater systems or connect homeowners' properties to sewerage systems. SECTION 2. Chapter 342D, Hawaii Revised Statutes, is amended by adding a new section to part V to be appropriately designated and to read as follows: "§342D- Prioritization of projects that eliminate cesspools. Notwithstanding any provision of this part to the contrary, and to the extent allowable under federal law, the director shall prioritize the use of revolving fund moneys for projects by homeowners to: (1) Upgrade cesspools to director-approved wastewater systems; or (2) Connect homeowners' properties to sewerage systems, including projects to install cluster systems or community package plants; provided that the project results in the closure of a cesspool in compliance with section 342D-72." SECTION 3. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, the conflicting part of this Act shall be inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned. Any administrative rules adopted pursuant to this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State. SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 5. New statutory material is underscored. SECTION 6. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ |
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| 48 | 48 | | |
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| 49 | 49 | | SECTION 1. The legislature finds that Hawaii has more than eighty thousand cesspools that discharge approximately 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, ground waters, nearshore marine areas, and the ocean. Cesspool pollution also harms public recreation and coral reefs. |
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| 50 | 50 | | |
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| 51 | 51 | | To mitigate the impacts of cesspools on public health and the environment, the legislature passed Act 125, Session Laws of Hawaii 2017, which requires all cesspools to be upgraded to a septic system or aerobic treatment unit system or connected to a sewerage system by 2050. The legislature finds that while this is an important goal, the State faces challenges in meeting this target. Homeowners living on properties with cesspools face expensive costs to comply with the cesspool upgrade mandate, including installation, maintenance, and long-term financing costs. |
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| 52 | 52 | | |
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| 53 | 53 | | The legislature further finds that Act 132, Session Laws of Hawaii 2018, authorized the department of health to establish the cesspool conversion working group to develop a long-range, comprehensive plan for the conversion of cesspools statewide by 2050. The working group identified potential ways to finance the conversion of cesspools. |
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| 54 | 54 | | |
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| 55 | 55 | | One potential means of financing cesspool conversions is through the United States Environmental Protection Agency's clean water state revolving fund program. This program offers low-cost financing for wastewater infrastructure and water quality projects, including the installation of new septic systems and the conversion of cesspools to septic systems. The program functions like an environmental infrastructure bank, providing funding, primarily through below-market interest rate loans, to eligible borrowers. Individual states are afforded extensive flexibility in administering the clean water state revolving fund program in their respective jurisdictions: states have the authority to define project and applicant eligibilities, financing terms, and loan forgiveness options for qualified borrowers. The program may issue loans to municipalities as well as to individual homeowners, citizen groups, and nonprofit organizations. |
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| 56 | 56 | | |
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| 57 | 57 | | The legislature further finds that, as of 2020, eleven states, not including Hawaii, regularly use the clean water state revolving fund program to finance decentralized wastewater projects. These states use the program to finance projects using a variety of lending structures, including direct homeowner loans, linked deposit loans, pass-through loans, sponsorship, and co-funding. |
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| 58 | 58 | | |
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| 59 | 59 | | The legislature further finds that a significant amount of additional money will become available through the clean water state revolving fund program in coming years due to increased funding under the federal Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law. In recognition of this additional funding, the legislature finds that the department of health should prioritize the use of moneys in the water pollution control revolving fund, through which Hawaii administers the clean water state revolving fund program, to finance projects that eliminate cesspools. |
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| 60 | 60 | | |
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| 61 | 61 | | Accordingly, the purpose of this Act is to require the department of health, to the extent allowable under federal law, to prioritize the use of water pollution control revolving fund moneys for projects by homeowners to upgrade cesspools to director-approved wastewater systems or connect homeowners' properties to sewerage systems. |
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| 62 | 62 | | |
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| 63 | 63 | | SECTION 2. Chapter 342D, Hawaii Revised Statutes, is amended by adding a new section to part V to be appropriately designated and to read as follows: |
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| 64 | 64 | | |
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| 65 | 65 | | "§342D- Prioritization of projects that eliminate cesspools. Notwithstanding any provision of this part to the contrary, and to the extent allowable under federal law, the director shall prioritize the use of revolving fund moneys for projects by homeowners to: |
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| 66 | 66 | | |
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| 67 | 67 | | (1) Upgrade cesspools to director-approved wastewater systems; or |
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| 68 | 68 | | |
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| 69 | 69 | | (2) Connect homeowners' properties to sewerage systems, |
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| 70 | 70 | | |
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| 71 | 71 | | including projects to install cluster systems or community package plants; provided that the project results in the closure of a cesspool in compliance with section 342D-72." |
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| 72 | 72 | | |
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| 73 | 73 | | SECTION 3. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, the conflicting part of this Act shall be inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned. Any administrative rules adopted pursuant to this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State. |
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| 74 | 74 | | |
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| 75 | 75 | | SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. |
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| 76 | 76 | | |
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| 77 | 77 | | SECTION 5. New statutory material is underscored. |
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| 78 | 78 | | |
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