NJ Bill Would Pressure Water Companies To Join Federal Aid Program

NEW JERSEY — A proposed state law that supporters say will help struggling households in New Jersey get assistance with their water bills recently took another step forward.

The bipartisan bill – sponsored by Sen. Kristin Corrado (District 40), a Republican, and Sen. Nilsa Cruz-Perez (District 5), a Democrat – passed a unanimous vote from the Senate Economic Growth Committee last week. It was referred to the Senate Budget and Appropriations Committee for further review.

Read the full text of S-3333 here.

“The federal government provided $24 million dollars to fund the state’s Low Income Household Water Assistance Program, but more than $17 million remains unspent,” Corrado said. “That’s because most water and sewer companies in New Jersey do not participate in the assistance program, which prevents their customers from benefiting from this federal aid.”

“This bill aims to boost participation in the program to help more eligible homeowners before the deadline this September,” she added.

Here’s what the bill would do if it becomes law – and why it’s needed, according to a statement from Corrado:

“The Low Income Household Water Assistance Program (LIHWAP) is a federal program established under the American Rescue Plan to provide financial assistance to water service providers who service low- and medium-income households that have fallen behind on their payments. At the state level, the New Jersey Department of Community Affairs (DCA) is responsible for administering the program and has until September to distribute the remaining funds. To receive funds, however, water service providers must enter a vendor contract with the DCA … S-3333 compels water companies to participate in the program by prohibiting non-participating water service providers from taking action against a household for unpaid bills. Under the bill, water service providers who fail to participate in the program or do not allow an eligible customer to receive assistance, would be prohibited from shutting off water services for customers who have fallen behind on their payments until October 1, 2023. Additionally, local authorities and municipal utilities who do not participate in the program would be prohibited from placing a lien on a customer’s property to satisfy an overdue balance. Water service providers would also be required to inform customers of their eligibility to participate in the LIHWAP through customer bills, postings on the water utility’s website, and through any written communication in connection with an unpaid bill.”

Any company, local authority, or municipal utility that violates the prohibitions or other provisions included in the bill would be subject to a monetary penalty, Corrado said.

“Struggling families shouldn’t be at the mercy of their water company’s decision to participate in this valuable assistance program,” the senator said. “Our legislation will get relief funds that are sitting unused to water customers who need help.”

The recently redrawn 40th district includes the following municipalities: Franklin Lakes, Ridgewood and Wyckoff in Bergen County; Caldwell, Cedar Grove, Essex Fells, Fairfield, North Caldwell and Verona in Essex County; Hawthorne, Little Falls, Totowa, Wayne and Woodland Park in Passaic County.

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