Cesspool Conversion Planning Update - Honolulu City Council Committee on Energy, Environment and Sustainability - June 23, 2026
Cesspool Conversion Planning Update - Committee on Energy, Environment and Sustainability
On June 23, 2026, the Committee on Energy, Environment and Sustainability held an informational briefing on cesspool conversion planning and strategy. The meeting featured a presentation from Dr. Kia Loa Fox, Executive Director of the Office of Climate Change, Sustainability and Resiliency (CCSR), along with participation from the Department of Environmental Services (ENV) and the Hawaii Green Infrastructure Authority (HGIA). No votes were taken. Key topics included the city's newly signed memorandum of agreement (MOA) with HGIA to administer a cesspool conversion loan program, the status of the Eva sewer improvement district project, and state legislation establishing a revolving loan fund.
Public Comments & Testimony
- Melody Young (testifying on behalf of CARES) expressed support for modernizing sewer infrastructure and urged the city to develop a funding strategy beyond state, federal, and county dollars. She suggested tapping into nonprofit organizations that can access EPA grants and noted ongoing discussions among permitting task forces, counties, and housing stakeholders about cesspool conversion policies and graywater systems.
Discussion Items
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Cesspool Conversion Statistics and Challenges
- Hawaii has approximately 88,000 residential cesspools discharging an estimated 50 million gallons of untreated sewage daily; 8,000 are on Oahu.
- Act 125 (2017) requires statewide conversion by 2050, but high upfront costs remain a barrier, especially for low- and moderate-income (LMI) households.
- The state's cesspool conversion pilot grant program (Act 153, 2022) helped convert over 200 cesspools but left many grantees with out-of-pocket costs of $10,000–$30,000.
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City's Climate Resiliency Fund and CCSR/HGIA Partnership
- Bill 15 (2025) established the Climate Resiliency Fund (CRF). Resolution 25-204 allocated $625,000 from the CRF for FY26 to accelerate cesspool conversions.
- After evaluating multiple delivery approaches, CCSR determined that a city-led program or a partnership with the Hawaii State Department of Health were not viable (the state program is no longer active).
- On June 22, 2026, a fully executed MOA between CCSR and HGIA was signed to use the $625,000 to create the first-ever cesspool conversion loan program for Oahu households.
- Key MOA objectives: flexible financing, prioritization of LMI households (income under $100,000), focus on priority-one cesspools, and deployment of planning and reporting for replication.
- HGIA Executive Director Gwen Yamamoto Lao stated the program will be designed through a working group convened July–September 2026, with a launch target of October–November 2026. The state has also provided $2 million in green fees to seed a revolving loan fund via HB1618 (currently awaiting governor's signature).
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Eva Special Sewer District Project
- Director Babcock (ENV) reported that a public meeting on the Eva project (976 cesspool homes) was held June 9, 2026, with over 120 attendees. No support was expressed; residents raised concerns about disruption, sewer fees, and the distant 2050 deadline. Many were told the mandate might be repealed or changed.
- As a result, the city is not moving forward with the Eva project at this time. The project had been budgeted at $83 million for construction in 2029. Councilmember Tupola noted that earlier estimates were $62 million. Director Babcock confirmed there are 15 total sewer improvement district projects in the six-year CIP.
- For homeowners who want to convert voluntarily, the new loan program may be an option if they meet income qualifications.
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CPACE and Multi-Family Properties
- Gwen Yamamoto Lao clarified that CPACE (Commercial Property Assessed Clean Energy) is available only for commercial properties; residential and multi-family (5+ units) were removed from the legislation due to banking opposition. Large-capacity cesspools are already being addressed by EPA enforcement.
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Prioritization and Triggers
- Cesspool prioritization (priority one, two, three) is based on health risk (University of Hawaii tool), not proximity to future sewer projects. However, the tool now includes information on planned sewer projects to help homeowners decide when to upgrade.
- There is no trigger upon property sale; legislation requiring conversion at sale has not passed. If a homeowner upgrades to an approved system before a sewer project arrives, they will still be required to connect but will receive a 25-year sewer fee waiver.
Key Outcomes
- No votes or formal decisions were taken during this informational briefing.
- The MOA between CCSR and HGIA is signed and effective as of June 22, 2026, enabling the $625,000 to be encumbered by the end of FY26 (June 30, 2026).
- The city intends to request an additional $950,000 from the Climate Resiliency Fund in FY27 (pending executive budget approval) to bring total investment to $1.575 million.
- The design working group for the HGIA loan program will meet July–September 2026, with program launch anticipated in October–November 2026.
- The Eva sewer district project is not moving forward due to lack of community support; the city will not bring it back to council for approval at this time.
Meeting Transcript
Good afternoon. Will the committee on energy environment and sustainability please come to order. Like to welcome committee vice chair Los Santos Tem and Council members Tolva and Tupola to the chamber. Pursuant to section ninety-two dash three point seven Hawaii revised statutes. This meeting will be conducted as a remote meeting by interactive conference technology with the following procedures in effect. Remotely and in person in the council chamber. As both English and Hawaiian are official languages of the state of Hawaii, pursuant to Article 15, section four of the state constitution and section one-thirteen of the Hawaii revised statutes. Members of the public may testify in either language. When your name is called, please monitor your screen and activate your audio feed when prompted. Once the remote testifiers have testified, I'll proceed to in-person testimony in the council chamber. Persons who have not registered will be given an opportunity to speak following the oral testimonies of the registered speakers. HRS section 92-3.7 requires all votes of remote meetings to be conducted by roll call. Um, don't believe we have any votes today. And I also don't believe we have any council members appearing from outside the chamber as well. Um Britain testimonies including the testifier's address, email address, and phone number will be available to the public as described on the posted agenda as a courtesy. Please turn off all cell phones, and then that brings us agenda item number one, informational briefing, an update on cesspool conversion planning and strategy. Joining us in the chamber is Dr. Kia Loa Fox, executive director of the Office of Climate Change Sustainability and Resiliency who will be providing a brief presentation, which is available online is Mayor's Message 84 2026. I'll go ahead and turn it over to you, Dr. Fox Moholo again for being here today. Uh thank you, Chair Wire and Vice Chair and members of the committee, um, council members to Santos Tem, Ventova, and Tupola. So good to see you all today. I'm going to just pivot really quick so I can get the slide screen going, and then we'll go ahead and take it over with the slideshow. Perfect, appreciate that. I'll also just acknowledge the presence of Director Babcock as well from environmental services, who will be ready and available to answer any questions. Um, and also Director Yamomoto from uh Hawaii Green Growth. Appreciate you being here as well. Were you here to provide testimony? Or were you present presenting just to support? Okay, perfect. I think with your permission, Chair, I'll go ahead and provide the presentation and then we can open it up to any discussion, any discussion and questions you folks might have, and then uh I can make sure I defer to Gwen Yamamoto Lao on behalf of the Hawaii Green Infrastructure Authority, or of course uh my companion here, Dr. Babcock for ENV, if that helps. Perfect. We'll do that. So we'll go with um which said first. We can start the presentation and then go into that. Thank you. Thank you so much, Mahalo. So today's presentation is just to provide a basic update of where we're at with some of the city's efforts around cesspool conversion. And so we wanted to start with the update here. You know what? I'm gonna actually move this over to make sure we can see it. Wanted to just provide an update um on some of the numbers and the statistics of where we're at. So Hawaii has approximately 88,000 residential cesspools that collectively discharge an estimated 50 million gallons of untreated sewage into groundwater and surface water every single day. And about 8,000 of those cesspools are located here on the island of Oahu. This poses significant threats to our human health, our drinking water sources, and of course, our near shore ecosystems. And this is an area that CCSR has been worried about and documenting through our early beginnings, um, starting even with our OLA resiliency. Um, this is an urgent issue that is not only affected by CCSR and our agencies here in the city, but the Hawaii State Legislature in 2017 enacted Act 125, and that requires the conversion of all cesspools statewide by the year 2050. But despite this mandate, the high upfront costs of conversions continue to remain a significant barrier, especially for households, homeowners, property managers, and particularly individuals and households that fall into the low and moderate income LMI households, if you will. So the statewide cesspool conversion pilot grant program was authorized in 2022 under Act 153 and administered by the Hawaii State Department of Health to try to overcome some of those barriers and to make some of those gains towards 2050.
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