116915.
(a) The Public Utilities Commission shall, by January 1, 2023, establish an arrearage management plan program and eligibility criteria and conditions for arrearage management plans to be offered by urban and community water systems regulated by the Public Utilities Commission.(b) An urban and community water system not regulated by the Public Utilities Commission shall, by January 1, 2023, or during its next rate study, whichever comes first, evaluate the extent to that it can offer an arrearage management plan to aid low-income residential customers with household income below 200 percent of the federal poverty line with high arrearages for water or wastewater service without using ratepayer funds from customers who are not enrolled in the
arrearage management plan.
(c) In evaluating the extent to that it can offer an arrearage management plan without using ratepayer funds from customers who are not enrolled in the arrearage management plan, the urban and community water system shall consider, among other things, all of the following:
(1) The availability of nonratepayer revenue, including, but not limited to, general fund accounts, property tax revenue, state and federal funding, special district fees or assessments, and revenue derived from interest, late fees, reconnection fees, and disconnection fees.
(2) The net revenue benefits reasonably anticipated from regular payments made by customers enrolled in arrearage management plans.
(3) The establishment of a portal or on-bill mechanism
for collecting voluntary customer contributions.
(4) Annual uncollectible debt over the past five years.
(5) The total arrearages of residential customers with household income below 200 percent of the federal poverty line or deemed to have household income below 200 percent of the federal poverty line pursuant to subdivision (b) of Section 116914.
(6) The likely revenue impacts of setting alternative arrearage management plan eligibility caps, terms, and other conditions.
(7) Appropriate program limitations based on available funding.
(d) An urban and community water system shall make findings at a public meeting regarding the extent to which it can offer an arrearage management plan to
aid low-income households with high arrearages for water or wastewater service.
(e) To the extent an urban and community water system finds that it can offer an arrearage management plan to low-income customers, it shall promptly offer arrearage management plans to low-income customers that comply with both of the following, subject to appropriate program limitations based on available funding:
(1) The arrearage management plan shall extend for a maximum of 12 months and shall include forgiveness of at least one-twelfth of the delinquent balance with each consecutive on-time payment of the monthly charge for water service only. Forgiveness of the full delinquent balance under the arrearage management plan shall take place at the final consecutive on-time payment under the plan.
(2) A customer who misses two
consecutive payments may be removed from the arrearage management plan. If a customer is removed from the arrearage management plan before making 12 on-time payments, any debt that has already been forgiven shall remain forgiven and the urban and community water system or very small community water system shall offer enrollment into an amortization agreement, alternative payment schedule, or a plan for deferred or reduced payment.
(f) If an urban and community water system, based on the evaluation required by this section, finds that it cannot offer an arrearage management plan, it shall do all of the following:
(1) Consider, as part of the evaluation described in this section, alternatives to offering an arrearage management plan that will decrease the risk of shutoff for low-income customers with high arrearages, including, but not limited to, all of the following:
(A) Offering longer repayment plans.
(B) Increasing benefits provided under a low-income rate assistance program.
(C) Altering shutoff policies.
(2) Identify funding barriers that prevent the urban and community water system from offering an arrearage management plan.
(3) Promptly adopt identified alternatives to decrease the risk of shutoff for low-income customers with high arrearages.
(g) This section shall not limit the ability of a very small community water system to establish an arrearage management plan.