Cruz-Perez Bill Aims to Boost Participation in State’s Water Assistance Program

Trenton – Acting to boost the performance of the program intended to help residents afford their water bills by making the financial aid available to more people, Senator Nilsa Cruz-Perez has introduced legislation that would help compel the needed participation of water companies in the state program.

The utilities have to agree to participate so their customers can receive the financial aid, but only 118 of the nearly 600 water and sewer companies in New Jersey have taken advantage of the opportunity. As a result, only an estimated $1.2 million of the $24 million in federal funds in the Low Income Household Water Assistance program has been dispersed to help residents pay their water bills and prevent shutoffs. The funding came from the federal American Rescue Plan.

“The hard times continue for many low-income families and working people who struggled to make it through the pandemic and continue to struggle to make ends meet,” said Senator Cruz-Perez, who chairs the Senate Economic Growth Committee. “They shouldn’t be forced to choose between food on the table or paying their water bills when there is a program designed to help. The utilities should be actively working to increase participation so the available assistance can get into the hands of those who need it.”

Senator Cruz-Perez’s legislation, S-3333, would prohibit water companies that don’t participate in the program from shutting off service or placing a lien on the property of customers who qualify for the assistance. The bill would also require water service providers to inform their customers of the availability of the program in “clear and conspicuous” language on their water bills and websites.

The measure would also have the Department of Community Affairs, which runs the program, and the Board of Public Utilities notify water companies of the bill’s requirements.

The requirements, applying to local authorities, municipal utilities, and water public utilities, would remain in place as long as the LIHWA program is operative. It is scheduled to expire in September of 2023.

An estimated 145,000 households in New Jersey owe more than $45 million in unpaid water bills to the investor owned utilities, this means the actual unpaid water bills is much higher. The state has distributed only an estimated $1.2 million to fewer than 1,500 households to date.