Office of the Governor — News Release — Gov. Green Signs Legislation to Strengthen Community and Enhance Environmental Protections

Posted on Jul 8, 2026 in Newsroom, Office of the Governor Press Releases

STATE OF HAWAIʻI

KA MOKU ʻĀINA O HAWAIʻI

JOSH GREEN, M.D.

GOVERNOR

KE KIAʻĀINA

GOVERNOR GREEN SIGNS LEGISLATION TO STRENGTHEN COMMUNITY AND ENHANCE ENVIRONMENTAL PROTECTIONS

FOR IMMEDIATE RELEASE
July 8, 2026

HONOLULU – Governor Josh Green today signed four measures into law during two bill signing ceremonies that collectively reinforce Hawai‘i’s long-term investments in environmental stewardship, housing and community infrastructure. By expanding support for conservation efforts, modernizing wastewater systems and deepening resources for housing and economic development, these bills underscore a shared goal; building a stronger and more resilient Hawai‘i for generations to come.

Relating to Environmental Protections:
During the first ceremony, Governor Green signed into law House Bill (HB) 2218, Act 203, Session Laws of Hawaiʻi (SLH) 2026, and HB 1618, Act 204, SLH 2026. Together, these measures reflect Hawai‘i’s sustained commitment to caring for its natural resources through collaboration and innovative resource management.

Pairing community-driven stewardship with strategic infrastructure improvements, HB 2218 establishes a formal framework for conservation partnerships. HB 1618 broadens financing options to help homeowners convert or upgrade cesspools — protecting Hawaiʻi’s waters and safeguarding public health.

“Protecting Hawaiʻi’s natural resources requires strong community partnerships and practical investments,” said Governor Green. “When we invest in sustainable resources, everyone benefits. Lasting progress is made when we tackle today’s challenges together and uplift one another through thoughtful policy and genuine collaboration.”

HB 2218: RELATING TO THE DEPARTMENT OF LAND AND NATURAL RESOURCES
HB 2218, Act 203, authorizes the Department of Land and Natural Resources (DLNR) to enter into formal co-management agreements with qualified community-based organizations. These partnerships are intended to support conservation, cultural practices, watershed protection and restoration of native ecosystems across public lands.

Under HB 2218, participating organizations must demonstrate relevant experience and capacity in land stewardship and may be responsible for activities such as invasive species removal, habitat restoration, shoreline protection and environmental education. The measure further establishes requirements to ensure compliance and effective management of state resources.

“This measure is the product of broad community collaboration and the support of more than 50 organizations committed to protecting Hawaiʻi’s natural and cultural resources,” said House Speaker Nadine K. Nakamura. “Community partners have long been doing the important work of stewarding our lands and this law formally recognizes them as valued partners, reinforcing that caring for our natural and cultural resources is a shared responsibility.”

“We’ve always known the best way to manage special places in our communities is for our communities to lead the way managing them and that’s exactly what this does, by empowering local community groups to take care of public lands where most appropriate,” said Senator Chris Lee, chair of the Senate Committee on Water, Land, Culture and the Arts.

“We were so humbled to support this effort and assist with the bill creation and advocacy, including extensive community outreach that resulted in many meaningful changes to the final introduced version of the measure,” said Kuaʻāina Ulu ʻAuamo advocate Olan Leimomi Fisher. “It is exciting to see that several groups are already crafting their own community co-management agreements based on this bill, which we hope will continue to pave the way for more in the future.” Fisher thanked the leadership of the Hui Makaʻāinana o Makana, Speaker Nadine Nakamura and her dedicated staff, Hawaiʻi Conservation Alliance, DLNR and many others who made this bill a reality — adding, “E kuahui like i ka hana – let’s all chip in together to get things done!”

HB 1618: RELATING TO CESSPOOL CONVERSIONS
Outdated cesspool systems contribute to water pollution and pose significant risks to Hawaiʻi’s public health and environment. In 2017, the state enacted legislation requiring all cesspools, unless exempted by the director of health, to be upgraded or converted to code-compliant wastewater systems by 2050. However, the Legislature recognizes that the high cost of these conversions can present a significant barrier for homeowners and discourage timely compliance.

HB 1618, Act 204, establishes a Cesspool Conversion Revolving Loan Fund, to be administered by the Hawaiʻi Green Infrastructure Authority, to provide financial assistance, including low-interest or forgivable loans, to eligible homeowners for the upgrade, conversion, or connection of cesspools. This new financing program is to be funded through the Water Pollution Control Revolving Fund, administered through the Department of Health. The measure further establishes a program management position that will oversee the establishment of the loan program and related guidelines.

In tandem, HB 2218 and HB 1618 foster a united approach to caring for Hawaiʻi’s natural resources and expanding practical tools available to the public. By empowering partners at every level, these measures advance the collective effort to care for our ʻāina and safeguard the health and well-being of our people.

“Adding cesspool conversions to the Green Infrastructure Authority’s innovative financing tools will make it possible for families who need help the most to install cheaper, cleaner, innovative solutions to stop dirty cesspools from polluting our beaches and streams,” said Senator Lee.

Relating to Housing and Community Development:

Governor Green also led a second signing ceremony, enacting HB 1920, Act 205, SLH 2026, and Senate Bill (SB) 2001, Act 206, SLH 2026. These significant measures reflect Hawaiʻi’s ongoing efforts to address housing affordability and job creation through sustainable infrastructure. These measures demonstrate the multifaceted approach to strengthening the state’s future through innovative housing financing and strategic community development.

“I often say that housing is healthcare,” said Governor Green. “Community is also healthcare. Thriving businesses and partnerships, robust and diverse economies — these measures reflect this collective goal — fostering a Hawaiʻi in which everyone can reach their full potential.”

HB 1920: RELATING TO THE LOW-INCOME HOUSING TAX CREDIT
HB 1920, Act 205, extends the sunset date to 2032 for the Low-Income Housing Tax Credit (LIHTC) program established by Act 226, SLH 2021. By continuing housing this financing tool, the measure is expected to leverage hundreds of millions of dollars in private equity to support affordable housing development throughout Hawaiʻi. The program complements existing state financing mechanisms, including the Dwelling Unit Revolving Fund and the Rental Housing Revolving Fund, helping to expand housing opportunities and strengthen the state’s affordable housing pipeline.

Additionally, the measure amends the LIHTC program, improving the way LIHTC credits can be transferred, providing developers and investors with greater certainty and flexibility to bring more affordable rental housing projects to completion. For tax credits issued after July 1, 2026, a partner or member that is a partnership or limited liability company that has been allocated an LIHTC, may now either further allocate the credit or transfer, sell or assign all or a portion of the credit to any taxpayer. It extends the sunset date of Act 129, SLH 2016, relating to the LIHTC, until December 31, 2032.

“The passage of HB 1920 reaffirms the state’s commitment to fund affordable housing,” said Representative Luke Evslin, chair of the House Committee on Housing. “This measure makes affordable housing projects easier to finance and move forward. Increasing our housing inventory is essential to addressing the housing shortage and ensuring more local residents can continue to call Hawaiʻi home.”

SB 2001: RELATING TO THE BANYAN DRIVE COMMUNITY DEVELOPMENT DISTRICT
SB 2001, Act 206, establishes the Banyan Drive Community Development District within the Hawaiʻi Community Development Authority (HCDA) and launches the Banyan Drive Community Development District Special Fund. HCDA will be amended to include representatives of the district, chairperson of the Banyan Drive Hawaiʻi Redevelopment Agency and a lineal descendant of the Waiākea Ahupuaʻa. This fiscal and administrative distinction within HCDA is designed to provide a structural framework by which the community can restore and revitalize.

The Banyan Drive Community Development District project aims to foster a radiant reimagining of the historic space, with emerging cultural and public facilities, including recreational, educational and entertainment spaces. Visitors and residents alike will be enriched with new opportunities to engage in this thriving community.

HB 1920 and SB 2001 share a common goal; to provide formal support to the people of Hawaiʻi so that each person is afforded the opportunities they deserve — from housing to connection. These meaningful measures reflect a sustained commitment to ask, listen and respond accordingly.

“Today is more than the signing of a bill,” said Senator Lorraine Inouye, chair of the Senate Committee on Transportation and introducer of SB 2001. “It is the beginning of a new chapter for the district built on partnership, stewardship and a shared commitment for future generations. It will create a district that honors history, supports local businesses, strengthens the visitor experience, protects our natural and cultural resources and lasting economic opportunities.”

The complete list of bills signed includes the following. Click the links to see full details of the bills enacted into law.

SB 2401 – RELATING TO REGIONAL SHORELINE MITIGATION DISTRICTS – Act 207

HB 1802 – RELATING TO CONSERVATION MITIGATION BANKS – Act 208

HB 1728 – RELATING TO RAINWATER CATCHMENT SYSTEMS – Act 209

HB 1740 – RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION – Act 210

HB 1741 – RELATING TO HOUSING – Act 211

SB 2060 – RELATING TO THE RENTAL HOUSING REVOLVING FUND – Act 212

SB 2069 – RELATING TO THE DWELLING UNIT REVOLVING FUND – Act 213

HB 2270 – RELATING TO THE DOWNPAYMENT LOAN ASSISTANCE PROGRAM – Act 214

HB 2385 – RELATING TO HOUSING – Act 215

SB 2544 – RELATING TO HOUSING – Act 216

SB 2552 – RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM – Act 217