HomeMy WebLinkAboutAgenda Item V.2_Legal Framework Supporting Bill No. 183Legal Framework Supporting Bill No. 183
The County of Hawaiʻi Department of Environmental Management 2026 Wastewater
Rate Study and the 2027 proposed rate adjustments are designed to move the County
forward along the road to compliance with federal and state law by advancing and
maintaining wastewater physical infrastructure and fiscal management. The legal
framework below outlines both the direct regulatory mandates compelling these
adjustments, as well as the statutory definitions, judicial precedents, and legal guardrails
that dictate how the rates must be structured and applied
Note: Supporting documents for items in the table are included and numbered to match
the specific item.
Federal Regulations & Mandates
Legal Citation Application to Bill No. 183
1. 33 U.S.C. § 1251 et
seq. (Clean Water Act)
Broad mandate protecting island-wide coastal waters,
nearshore marine ecosystems, and public health.
2. 33 U.S.C. § 1319(a)
& (d) (CWA § 309) Authorizes federal civil judicial penalties.
3. 33 U.S.C. §
1383(d)(1)(C)
Requires a self-sustaining revenue stream to maintain
eligibility for low-interest Clean Water State Revolving
Fund (CWSRF) loans and federal grants.
4. 40 C.F.R. §35.2140
(a) & (g)
The user charge system must:
Be designed to produce adequate revenues required for
operation and maintenance (including replacement).
Provide that each user which discharges pollutants that
cause an increase in the cost shall pay for such
increased cost.
Bill customers based on their proportionate share of
operation and maintenance costs.
5. EPA Administrative
Order on Consent
CWA-309(a)-24-003
Paragraph 8(h) & 10(c): Legally compels the County to
submit and execute a Financial Plan generating
sufficient revenue to fully fund operations and asset
management.
Legal Citation Application to Bill No. 183
Paragraph 56: Outlines non-compliance penalty
triggers.
State of Hawaiʻi Statutes
Legal Citation Application to Bill No. 183
6. HRS § 342D-
30 & § 342D-
54
Parallels federal requirements, dictating state civil penalties for
water pollution and enforcing dedicated revenue requirements
for State Revolving Fund assistance.
7. HRS § 486K-
1
Provides statutory definitions relating to hotels and transient
accommodations.
Hawaiʻi County Code (HCC)
Legal
Citation Application to Bill No. 183
8. HCC
Chapter 21,
Article 4
Current sections of the County Code related to sewer fees.
Special Note: Section 21-35, which mandates compliance with the
user charge system as required by 40 CFR 35.2140, and the
necessity of adjusting charges to ensure the ability to meet actual
operation and maintenance costs.
Environmental Protection Agency (EPA) Administrative Order on Consent
The wastewater rate study and the proposed adjustments are pursuant to fulfilling
federal compliance mandates set forth in the U.S. Environmental Protection Agency
(EPA) Administrative Order on Consent (Docket No. CWA-309(a)-24-003).
Appendix 1, Section II of the AOC requires the County to develop and implement
comprehensive financial plans—including an Interim Financial Plan (Paragraph 8(h)) and
a long-term Financial Plan (Paragraph 10), that feature a "detailed descriptive plan for
raising sufficient revenue to meet the projected costs as outlined in the annual budgets,
including adjustments or increases in user fees, increase of customer base, within the
sewer service areas, taxes, assessments, or other sources of revenue financing
mechanisms.
Appendix 1, Section II, Paragraph 8(h) - Interim Financial Plan
Appendix 1, Section II, Paragraph 10 - Financial Plan