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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