State provides $301 million in Pandemic-Related Water Utility Debt Relief

In just over six months, the State Water Resources Control Board has provided more than $301 million to drinking water systems for past-due bills. Altogether 668 systems, collectively serving more than 80% of the state’s population, elected to participate in the drinking water portion of the Water and Wastewater Arrearages Program.

Now that 100% of the eligible drinking water debt requested by participating water systems has been covered, the arrearages program has transitioned to covering pandemic-related debt for wastewater bills.

“We are committed to getting relief to wastewater systems still feeling the financial impact of pandemic-related unpaid bills,” said Karen Mogus, deputy director of the Division of Water Quality, “and, as with drinking water arrearages, I am optimistic that all eligible wastewater debt will be covered by the program. However, eligible entities must apply for relief within the two-month window between February 1 and April 1, 2022; I encourage wastewater treatment providers and the cities, counties and sewer districts who bill for wastewater services to apply right away.”

To ensure water systems and their customers receive as much relief as possible, the arrearages program allows for broad eligibility criteria. For example, entities that previously transferred debt to a third party can still apply to clear debt for their customers, as can cities and counties that collect wastewater fees through tax rolls. In consideration of the varied billing patterns across water systems, the program allows applicants to request funding for any arrearages accrued during billing periods that intersect with the eligibility dates of March 4, 2020 through June 15, 2021.

Initial payments to cover wastewater debt for eligible applicants were approved on March 2, with all payments disbursed by mid-May. The deadline for applications is April 1.