AFFORDABILITY BILL DRAFT SUMMARIES
Affordability Plan (bill draft 01852’23)
This will create a low-income water residential affordability program within MI DHHS so that eligible low-income residents can pay water bills that do not exceed 3% of their household’s income. It will have two eligibility tiers: water customers at ≥135% of the federal poverty level (FPL) and 136%-200% of FPL. Existing water assistance or affordability programs can continue their programs and new programs can be developed by water utilities, if they meet the same (or better) program benefits with MI DHHS approval. Program administration will be carried out by third-party providers such as community action agencies and United Way groups at the county level. The 3% cap can be done with credits, discounts, or other rate reductions that can be reimbursed through the new Low-Income Water Affordability Fund (draft 01778/23). The program also allows for arrearage payments on customer accounts and funds for plumbing repairs to bring down the cost of water bills from leaks and support water conservation. Additionally, the plan creates an advisory task force to be established by MI DHHS with municipal government representatives from community populations of different sizes, advocacy groups, third party organizations, non-profit and environmental groups.
Affordability Fund (bill draft 01778’23)
This creates a new Low-Income Water Affordability Fund within the MI Department of Treasury that would be funded by a $2/meter monthly charge by water utilities for all . The per meter charge may be increased up to $3/meter per month. The fund may be used to take additional appropriations, funds, and donations and funds will be rolled over annually. Funds will be used to reimburse water utilities for eligible customers who receive payment discounts, caps, and lower bills based on their household income. The funds will also be used for arrearage payments and plumbing repairs to reduce water loss that leads to higher usage costs. The low-income water residential affordability task force will advise MI DHHS about any adjustments to the meter charge or allow, review administrative costs and other program and fund data, and assess change recommendations to the household income threshold.
Shut-Off Protections (bill draft 01851’23)
This protects households through clear guidelines and requirements for a water utility to consider or carry out before water shutoffs for delinquent or non-payments. It creates new customer categories such as “Critical Care Customers” for persons with life-threatening illnesses who are dependent on water for health treatment and care by medical providers and low-income households, and “Eligible Customers” who earn up to 200% of the FPL. It requires utilities to establish procedures for contacting and communicating with customers before proceeding with a water shutoff that includes various means and efforts such as phone calls, text messages, in-person door notifications, and mailings. It protects customers from shutoffs who attempt to enroll in a water affordability plan, who make minimum payments, and tenants who are not responsible for landlord water bills. A new triage process is established where enrolled customers having difficulty paying their bills will meet with the program administrator to identify barriers with the aim of keeping a customer compliant with program requirements by assessing additional benefit programs available to the household and restarting the program plan timeline.
Tenant Submetering (bill draft 03595’23)
This bill allows for tenants who live in dwellings that are metered or sub-metered to request that a landlord transfer within 60 days the customer account to the tenant’s name, if requested, and cease charging any portion of the rent amount for water or sewer bill. This bill would apply to future rental agreements only.
Decriminalization of Water Hook-Ups (bill drafts 01803;23 and 01803a’23)
This would decriminalize the act of re-connecting water service that has been shutoff due to a customer’s inability to pay from a five-year felony to a civil infraction with community service. A fine and additional community service time may be added for repeat infractions. This would not apply in situation where, in the course of re-connection, a metering or backflow device was intentionally damaged.
Access to Water (SB 25)
This bill creates the “Human Right to Water Act” that requires all state agencies and departments to carry out all reasonable means to review, revise, adopt and establish policies and regulations, plus grant criteria for establishing water affordability as appropriate, and to the extent that such actions do not affect federal funding eligibility.
AFFORDABILITY BILL DRAFT BULLET POINTS
Affordability Plan (bill draft 01852’23)
- Creates a low-income water residential affordability program within MI DHHS.
- Eligible low-income residents can pay water bills that do not exceed 3% of their household’s income.
- Will have two eligibility tiers: water customers at ≥135% of the federal poverty level (FPL) and 136%-200% of FPL.
- Existing water assistance or affordability programs can continue their programs and new programs can be developed by providers.
- Administering the program will be done by water providers or third party organizations such as community action agencies.
- Payment on bill differences for the 3% cap will be paid through the new Low-Income Water Affordability Fund (draft 01778/23).
- Allows for arrearage payments on customer accounts and funds for plumbing repairs to bring down the cost of water bills.
- Creates an advisory task force to be established by MI DHHS with municipal government representatives from community populations of different sizes, advocacy groups, third party organizations, non-profit and environmental groups.
Affordability Fund (bill draft 01778’23)
- Creates a new Low-Income Water Affordability Fund within the MI Department of Treasury
- Will be funded by a $2/meter monthly charge by water utilities for all customers.
- The fund may be used to take additional appropriations, funds, and donations to be rolled over annually.
- Funds will be used to reimburse water utilities for eligible customers who receive payment discounts, caps, and lower bills
- The funds will also be used for arrearage payments and plumbing repairs to reduce water loss that leads to higher usage costs.
Shut-Off Protections (bill draft 01851’23)
- Protects households through clear guidelines and requirements for a water utility to carry out before water shutoffs for delinquent or non-payments.
- Creates new customer category “Critical Care Customers” for low-income persons with life-threatening illnesses or public health risks who are dependent on water for health treatment and care by medical providers
- Requires utilities to establish multiple procedures for contacting and communicating with customers before proceeding with a water shutoff, including phone calls, text messages, in-person door notifications, and mailings.
- Protects customers from shutoffs who attempt to enroll in a water affordability plan, who make minimum payments, and tenants who are not responsible for landlord water bills.
- Establishes a new triage process where enrolled customers who have difficulty paying their bills will meet with the program administrator to identify barriers and receive additional help to remain compliant with program requirements.
Tenant Submetering (bill draft 03595’23)
- Allows for tenants to request that a landlord transfer within 60 days the customer account to the tenant’s name, if requested
- Requires the landlord to cease charging any portion of the rent amount for water or sewer bills if the tenant puts the water bill in their name. (This bill would apply to future rental agreements only.)
Decriminalization of Water Hook-Ups (bill drafts 01803;23 and 01803a’23)
- Removes the act of re-connecting water service that has been shut off due to a customer’s inability to pay from a five-year felony to a civil infraction with community service.
- A fine and additional community service time may be added for repeat infractions.
- If a metering or backflow device was intentionally damaged, this would not apply.
Access to Water (SB 25)
- Creates the “Human Right to Water Act” that requires all state agencies and departments to review and carry out
- Establishes grant criteria for establishing water affordability as appropriate (as allowed by federal funding eligibility).
