“(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible individual’ means a member of a household located in a municipality identified pursuant to the affordability criteria of the applicable State established under section 603(i)(2).

“(2) RESPONSIBLE MANAGEMENT ENTITY.—The term ‘responsible management entity’ means an organization consisting of diverse stakeholders with technical, managerial, and financial capacity to operate and maintain viable decentralized wastewater systems within the jurisdiction of the organization.

“(3) SMALL-CAPACITY CESSPOOL.—The term ‘small-capacity cesspool’ means an underground sanitary waste system that—

“(A) is connected to 1 single-family residence and serves no other structures; and

“(B) receives only residential sanitary waste.

“(b) Grants authorized.—The Administrator may make grants to the State of Hawaii or a responsible management entity with jurisdiction over an area located in the State of Hawaii for the benefit of eligible individuals to pay the Federal share of the cost of—

“(1) subject to subsection (d)—

“(A) the conversion of a small-capacity cesspool to an individual wastewater system, such as a septic tank;

“(B) the connection of a single-family residence with a small-capacity cesspool to a treatment works; and

“(C) the conversion of a community of single-family residences that each has a small-capacity cesspool to a community-scale, cluster, or decentralized wastewater system; and

“(2) workforce development, technical assistance, and educational and advocacy programs relating to wastewater management.

“(c) Federal Share.—The Federal share of the cost of activities carried out using a grant under subsection (b) shall be 75 percent.

“(d) Prioritization.—In making grants under subsection (b)(1), the Administrator shall, in consultation with the State of Hawaii, give priority to projects that address small-capacity cesspools that pose the greatest risk to human and environmental health.

“(e) Authorization of appropriations.—

“(1) IN GENERAL.—There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2028 through 2032.

“(2) ADMINISTRATIVE EXPENSES.—Of the amounts made available under paragraph (1) for a fiscal year, the Administrator may use not more than 2 percent for the administrative expenses of carrying out this section.”.

“(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible individual’ means a member of a household located in a municipality identified pursuant to the affordability criteria of the applicable State established under section 603(i)(2).

“(2) RESPONSIBLE MANAGEMENT ENTITY.—The term ‘responsible management entity’ means an organization consisting of diverse stakeholders with technical, managerial, and financial capacity to operate and maintain viable decentralized wastewater systems within the jurisdiction of the organization.

“(3) SMALL-CAPACITY CESSPOOL.—The term ‘small-capacity cesspool’ means an underground sanitary waste system that—

“(A) is connected to 1 single-family residence and serves no other structures; and

“(B) receives only residential sanitary waste.

“(b) Grants authorized.—The Administrator may make grants to the State of Hawaii or a responsible management entity with jurisdiction over an area located in the State of Hawaii for the benefit of eligible individuals to pay the Federal share of the cost of—

“(1) subject to subsection (d)—

“(A) the conversion of a small-capacity cesspool to an individual wastewater system, such as a septic tank;

“(B) the connection of a single-family residence with a small-capacity cesspool to a treatment works; and

“(C) the conversion of a community of single-family residences that each has a small-capacity cesspool to a community-scale, cluster, or decentralized wastewater system; and

“(2) workforce development, technical assistance, and educational and advocacy programs relating to wastewater management.

“(c) Federal Share.—The Federal share of the cost of activities carried out using a grant under subsection (b) shall be 75 percent.

“(d) Prioritization.—In making grants under subsection (b)(1), the Administrator shall, in consultation with the State of Hawaii, give priority to projects that address small-capacity cesspools that pose the greatest risk to human and environmental health.

“(e) Authorization of appropriations.—

“(1) IN GENERAL.—There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2028 through 2032.

“(2) ADMINISTRATIVE EXPENSES.—Of the amounts made available under paragraph (1) for a fiscal year, the Administrator may use not more than 2 percent for the administrative expenses of carrying out this section.”.