Bill creating cesspool conversion tax credits for Hawai‘i residents moves forward

LIHU‘E — Legislation offering tax credits for Hawai‘i homeowners modifying their cesspools passed a significant hurdle last week, as two committees expressed unanimous support.

As Hawai‘i requires all cesspool owners to upgrade, convert or connect their property to a sewer by 2050, House Bill 440 attempts to speed up the process while reducing the financial burden on homeowners.

If passed, HB440 would create an income tax credit for cesspool upgrades and conversions. The credit would grant reimbursement for homeowners who either update their wastewater systems to meet state approval or connect to a sewer system.

Additionally, if an entity attempts to sell property that includes a cesspool, HB440 would require the seller to inform prospective buyers of the cesspool’s required conversion date, as well as how hazardous the cesspool is rated.

On Thursday, all present members of both the House Energy &Environmental Protection and Water &Land committees recommended the measure be passed without reservations.

Additionally, the state Department of Health submitted testimony to the committees in support of the bill.

“The Department recognizes that there is a need to provide a variety of financing options to assist residents for cesspool conversions in addition to the program that was established by Act 153, Session Laws of Hawaii 2022,” the testimony read, referencing legislation passed last year establishing a program to assist low- and moderate-income property owners in upgrading or converting cesspools.

The Hawai‘i Association of Realtors also provided comments, noting difficulties for homeowners in procuring enough money for cesspool conversions, and suggesting even more funds could be necessary.

“Most homeowners will not be able to afford to do this alone,” the association’s testimony read. “As such, tax credits can be a beneficial tool in helping homeowners convert their cesspools to a Director of Health approved wastewater system. We believe that this bill is a step in the right direction; however, most homeowners will need additional assistance to ensure that they can meet the mandate to convert.”

According to the Cesspool Conversion Working Group, high upfront costs are the single largest obstacle to cesspool conversion in Hawai‘i, across all income levels. The working group released its final report in November, recommending that both state and county governments increase the use of federal funds to encourage cesspool conversions.

According to the state Department of Health, the Aloha State contains approximately 88,000 cesspools.

As cesspools fill with human and chemical waste, bacteria break down larger, solid particles. However, fluids, chemicals and pathogens are able to leach out into the surrounding soil. As gravity pulls the waste down, these particles can seep into groundwater, where they can then mix into aquifers, streams and the ocean.

About 14,000 of the state’s approximately 88,000 cesspools are on Kaua‘i, according to the state Department of Health.

A 2021 study conducted by Surfrider Hawai‘i Kaua‘i Chapter’s Blue Water Task Force found traces of sucralose — a sweetener commonly found in processed foods — in 22 of the Garden Island’s 24 streams and rivers, suggesting Kaua‘i’s sewage and other waste is likely seeping into most of the island’s waters.

“We strongly support any measures that will facilitate the replacement of cesspools with new and appropriate wastewater treatment systems,” said Dr. Carl Berg, Surfrider Hawai‘i Kaua‘i Chapter senior scientist. “And we do that in order to protect both our recreational waters — our beaches and our streams — but also to protect our important aquifers.”

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Jackson Healy, reporter, can be reached at 808-245-0427 or jhealy@thegardenisland.com.