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Catalyzing Cesspool Conversions with Responsible Management Entities 

Report

Hawaii

Publication date: July 1, 2026

File format: PDF

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This report explores how Responsible Management Entities (RMEs) can help Hawaiʻi accelerate cesspool conversion by improving affordability, coordinating implementation, and providing long-term management of decentralized wastewater systems. It identifies opportunities to expand access to Clean Water State Revolving Fund (CWSRF) financing and support community-scale wastewater solutions through policy changes within existing state and federal authority.

Subject Tags

  • Policy
  • Policy, Finance, and Markets

Executive Summary

Hawaiʻi faces a significant challenge in meeting its mandate to convert all 83,000 cesspools by 2050. Many homeowners lack the financial resources, technical guidance, and governance structures needed to complete individual conversions, creating a strong need for affordable, community-scale wastewater solutions. Responsible Management Entities (RMEs) can help address these barriers by organizing local efforts, connecting communities with state and municipal resources, and coordinating projects that reduce costs through economies of scale. Their role can improve affordability, increase efficiency, and provide long-term management of decentralized wastewater systems. However, state laws and policies influence how effectively RMEs can perform these functions.

This whitepaper concludes that Hawaiʻi law generally allows RMEs to own, operate, and maintain decentralized wastewater treatment systems that can replace cesspools and support community-based management. While federal and state laws permit both public and private RMEs to access assistance through the Clean Water State Revolving Fund (CWSRF), current Hawaiʻi Department of Health (DOH) policies largely prevent private RMEs from receiving direct funding. As a result, substantial public financing opportunities remain underutilized. The analysis finds that DOH could expand CWSRF eligibility through administrative policy changes and rulemaking without requiring new legislation.

The paper further reviews federal and state regulations governing wastewater infrastructure and financing, finding that RMEs can generally obtain required authorizations, certifications, and ownership rights. While some RMEs may be subject to utility rate regulations, member-owned or member-controlled entities often have greater administrative flexibility and lower compliance costs. Overall, the report identifies practical policy actions that could expand funding access, support households and RMEs, and accelerate Hawaiʻi’s transition from cesspools to sustainable decentralized wastewater systems.