Murphy Signs Bill Blocking Water And Sewer Shutoffs

By Christian Wade | The Center Square contributor, The Center Square New Jersey

April 10, 2023

(The Center Square) — New Jersey utilities won't be allowed to shut off water and sewer service for low-income customers unless they offer financial relief from the state, under a bill signed by Gov. Phil Murphy.

The measure, which was approved by the state Legislature last month, requires all water and sewer utilities to participate in the state's Low Income Household Water Assistance Program and promote the program to their customers, or be prohibited from shutting off water or selling tax liens for unpaid bills.

Murphy said the protections, which will remain in place through September, will ensure that New Jersey consumers "will continue to have access to essential utility services in their households no matter their income" and won't have to "live in fear" of their water and sewer service being cut off for failure to pay the bill.

The bill's sponsor, state Sen. Nilsa Cruz-Pérez, D-Camden/Gloucester, said it will ensure utility companies and the state work together to increase participation in the program.

"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," Cruz-Pérez said in a statement. "They shouldn’t be forced to choose between food on the table or paying their water bills, especially when there is a program designed to help."

Under the new law, the New Jersey Department of Community Affairs will require water and sewer service providers to provide notice to consumers about the program on bills and other written communication and provide disconnection protection for customers who have been approved for assistance.

Utilities that violate the new law face fines of up to $500 a day for each violation, and $100 per day for failure to notify consumers about the assistance program.

The federally funded program provides benefits directly to water and wastewater providers on behalf of residential customers. The assistance can be used to restore services that have been terminated and avoid service disruption for residential customers who are in danger of disconnection. Eligible households can receive up to $8,000 a year to pay their bills.

Larry Levine, a senior attorney at the National Resources Defense Council, said the LIHWAP program has "struggled" since its launch last year to provide help to people at risk of losing water service, or even losing their homes, due to unpaid water and sewer bills.

He said the new requirements will ensure that every water and sewer utility provider encourages eligible customers to seek assistance to pay off their water and sewer debt.

"Although the need far exceeds the program’s limited-time funding, millions of dollars are now available," Levine said. "It’s up to the Murphy Administration, together with utilities and municipalities, to get these funds to residents who need the help to avoid water shut-offs or tax lien sales on their homes."

The state also provides assistance through other programs, such as the federally funded Low-Income Home Energy Assistance Program, which is offered to households at or below 60% of the state median income.

In 2020, Murphy and lawmakers approved a ban on utility shut offs in response to the COVID-19 pandemic and extended the protections several times before they expired last March leaving thousands who had applied for aid in limbo.

In response, lawmakers approved a bill allowing residents who applied for utility aid from a state agency before June 15 to get a 60-day grace period from disconnections.

At the time, New Jersey officials said hundreds of thousands of electric and gas customers were behind on their bills, and at risk of disconnection.

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