Water Board adopts guidelines for $1 billion water debt relief program

Water Board adopts guidelines for $1 billion water debt relief program

Relief is on the way. Or so we believe.

On September 21, the State Water Resources Control Board adopted guidelines that will determine how the agency will administer the $1 billion financial relief program for community water systems’ unpaid water bill debt from customers who were unable to pay their bills due to COVID-related financial hardship.

The California Water and Wastewater Arrearages Payment Program covers residential and commercial accounts that are 60 days or more behind on payments for debt accrued between March 4, 2020 and June 15, 2021.

The guidelines adopted by the Board include the type and amount of eligible debt, the prioritization of payments from the program, and the amount of allowable administrative costs. For example, water systems without customer payment plans will be required to have them, and relief for water systems serving disadvantaged communities will be prioritized. The program will also encourage those systems that have transferred customer debt to third parties to apply for funding nonetheless and clear those debts for their customers.

“Water affordability for California’s communities and households is a top priority as we advance our state’s economic recovery,” said Joaquin Esquivel, Chair of the State Water Board. “Thanks to the leadership of Governor Newsom and the California legislature, this first-in-the-nation program will provide relief for households that accrued water debt during the pandemic response and economic downturn, and will help ensure that the generational reinvestments being made in our water systems are equitable and maximized.

Water systems will be able to apply for the funding beginning this month. As a condition of receiving the funds, participating systems must credit their customers’ accounts and notify them that their water bill debt has been cleared or reduced. Customers will not be paid directly.

The Board will begin disbursing funds November 1, 2021.

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