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WATER SUPPLY
PLANNING COMMITTEE |
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ITEM: |
DISCUSSION ITEM |
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5. |
FEDERAL LEGISLATION FOR COVID-19 RELIEF PROGRAMS FOR WATER
AGENCIES |
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Meeting Date: |
April 5, 2021 |
Budgeted: |
N/A |
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From: |
David J. Stoldt |
Program/ |
N/A |
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General Manager |
Line Item: |
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Prepared By: |
David Stoldt |
Cost Estimate: |
N/A |
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General Counsel Review: N/A |
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Committee
Recommendation: N/A |
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CEQA
Compliance: This action does not constitute a project as
defined by the California Environmental Quality Act Guidelines section 15378. |
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SUMMARY: On December 27, 2020, The Consolidated Appropriations Act, 2021 (PL 116-260) was signed into law. This law includes $638 million in emergency funding to assist low-income households with water and wastewater bills. Then, as part of the American Rescue Plan Act of 2021, Congress appropriated an additional $500 million to support water accessibility for low-income households through September 2023, increasing funding for water assistance to over $ 1.1 billion.
Water assistance will be provided through the new Low-Income Household Water Assistance Program (LIHWAP). This new program will award grants to States, Territories, and eligible Native American Tribes to assist low-income households, particularly those with the lowest incomes and that pay a high proportion of household income for drinking water and wastewater services, by providing funds to owners or operators of public water systems or treatment works to reduce arrearages of and rates charged to low income households for water and wastewater services.
Grants will be issued and administered by the US Administration for Children and Families’ (ACF), Office of Community Services (OCS), which administers the Low Income Household Energy Assistance Program (LIHEAP) and other programs designed to reduce the causes of poverty, increase opportunity and economic security of individuals and families, and revitalize communities. In California, LIHEAP is overseen by the California Department of Community Services and Development (CSD) and administered by 31 Action Agencies throughout California. LIHEAP offers the following types of assistance:
LIHEAP may also prioritize applicants based on the greatest need and income, as well as households with vulnerable populations, including the elderly, disabled and households with young children.
Because LIHWAP is a new program, OCS must design a program that is responsive to the legislative intent. As such, OCS is reviewing existing programs to identify processes and procedures that support and align with the Congressional intent of LIHWAP. OCS is working diligently to stand up the new program as quickly as possible, while also working to ensure it is an effective and efficient program. It is unclear how this program will be administered in California.
The American Rescue Plan also contains $25 billion for emergency rental assistance which allows payment of utility bills.
The $350 billion included for state and local governments can be used for water and wastewater infrastructure, but the $65.1 billion for the cities and $65.1 billion for counties will be subject to their jurisdictions decision-making.
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