Navy Faces Major Lawsuit Over Red Hill Fuel Leak That Contaminated Honolulu Water Supply

Nearly three years after 20,000 gallons of jet fuel leaked into the drinking water system serving over 400,000 residents of Honolulu, the Honolulu Board of Water Supply (BWS) has filed a sweeping lawsuit against the U.S. Navy, alleging gross negligence and long-term mismanagement at the now-infamous Red Hill Bulk Fuel Storage Facility.

The complaint, filed this week, marks a dramatic escalation in the ongoing fallout from one of the worst military-related environmental disasters in U.S. history. The suit seeks compensation for both environmental and financial damages linked to the contamination and the Navy’s failure to adequately address known risks.

The Incident: What Happened at Red Hill?

In November 2021, a ruptured pipe at the Navy’s Red Hill underground fuel storage facility led to the leak of approximately 20,000 gallons of jet fuel into the nearby drinking water supply. At the time, Navy officials downplayed the severity, initially assuring the public that the water was safe — despite evidence that fuel had infiltrated an aquifer used by the Honolulu Board of Water Supply.

The aquifer provides drinking water for a significant portion of Oʻahu’s population, making the contamination not just a localized problem, but a threat to the entire island’s water resilience and public health.

Following sustained public pressure and independent water testing, the Navy conceded to demands to shut down and drain the facility, a task completed in March 2022.

The Lawsuit: Negligence and Denial of Responsibility

The BWS lawsuit alleges that the Navy:

• Failed to prevent known risks, despite having internal documentation of system vulnerabilities for more than a decade.

• Misled the public about the safety of the water following the leak.

• Denied financial responsibility, despite publicly acknowledging its role in the disaster.

“This is not an issue that will be solved quickly or cheaply,” said BWS Manager and Chief Engineer Ernest Lau. “Every action must be taken to protect the purity of Oʻahu’s water, and it is only right that the Navy assume financial responsibility.”

Notably, the Navy denied BWS’s formal claim for damages on June 10, triggering this week’s lawsuit under the Federal Tort Claims Act (FTCA). The Department of Justice, which is now handling the case, declined to comment.

Long-Term Consequences for Hawaii’s Water Security

The contamination crisis has had lasting effects:

• Thousands of residents reported rashes, nausea, headaches, and chemical exposure symptoms after drinking or bathing in contaminated water.

• Schools, hospitals, and military bases were forced to switch to bottled or trucked-in water for extended periods.

• BWS had to shut down its Halawa Shaft, a major source of fresh water, to prevent further contamination — an action that disrupted supply and strained the island’s water system.

The lawsuit seeks to recover both emergency response costs and long-term mitigation expenses, including aquifer monitoring, alternative water sourcing, and legal fees.

Red Hill in Historical and Strategic Context

The Red Hill facility, constructed in the 1940s during World War II, was once considered a marvel of underground military engineering. With 20 massive steel-lined tanks buried deep in volcanic rock, the facility was designed to store millions of gallons of fuel for Pacific fleet operations.

But over time, its age and location above a key aquifer became a source of growing concern. A series of minor leaks dating back to the 1990s had already raised alarms among environmentalists, engineers, and local officials.

“Litigation was our last resort,” said BWS Board Chair Nā‘ālehu Anthony, “after months of futile negotiation and the Navy’s refusal to pay, even while publicly acknowledging responsibility.”

What’s Next: Accountability and Environmental Precedent

This lawsuit may set a critical precedent for military-linked environmental accountability in the U.S. If successful, it could pave the way for:

• Expanded civil claims under FTCA in similar contamination cases

• Policy reform around how the Department of Defense maintains fuel and hazardous material sites

• Renewed scrutiny of infrastructure oversight across all federal installations with environmental exposure risk

As legal proceedings unfold, the Red Hill disaster remains a case study in what happens when aging infrastructure, institutional opacity, and public trust collide.