A6115

An Act concerning certain sewer and water utility service protections and supplementing Title 40A of the New Jersey Statutes and Title 48 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The provisions of Executive Order No. 246 of 2021 concerning a grace period for residential customers of certain utilities, including paragraphs two through four, nine through 14, 16 through 18, and 21, shall remain in effect for any local authority, municipal utility, and public utility that provides sewer or water service through March 15, 2022. Any residential customer sewer or water service discontinuance occurring between the end of the grace period established pursuant to Executive Order No. 246 of 2021 and the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be nullified and service shall be restored immediately. Notwithstanding any other provisions of law, a local authority or municipal utility shall not place, sell, or enforce a lien on real property for the unpaid balance of any water or sewer charges until after the expiration of the extended grace period pursuant to this section. The extended grace period provided for in this section shall expire on March 15, 2022.

2. As used in sections 2 through 4 of P.L. , c. (C. ) (pending before the Legislature as this bill):

“Board” means Board of Public Utilities or any successor agency.

“Department” means the Department of Community Affairs.

“Local authority” means an authority, as defined in section 3 of P.L.1983, c.313 (C.40A:5A-3), that provides sewer or water service.

“Municipal utility” means a municipal public utility, as defined in N.J.S.40A:1-1, that provides sewer or water service.

“Program” means the Winter Sewer and Water Termination Program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Residential customer” means a residential local authority or municipal utility customer of record or any residential tenant of a residence where the owner or any agent or other representative of the owner of the residence is a non-residential customer of record.

“Utility emergency” means any condition constituting a potential danger to life, health, or property requiring a local authority or a municipal utility to immediately discontinue or interrupt sewer or water service or that results in an unscheduled discontinuance or interruption in sewer or water service.

3. a. Within 60 days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Department of Community Affairs shall establish a Winter Sewer and Water Termination Program, which shall prohibit a local authority or municipal utility from discontinuing service during the period from November 15 through March 15, to a residential customer deemed qualified for program eligibility by the department. The program shall reflect the provisions of the Winter Termination Program for residential electric and gas public utility service, established by the board and published in the New Jersey Administrative Code, as appropriate for sewer and water service. The program shall include:

b. in addition to categorical eligibility for customers receiving assistance under programs specified in the eligibility criteria in the board’s Winter Termination Program for residential electric and gas service:

(1) categorical eligibility for any customer receiving assistance under the Low Income Household Water Assistance Program established pursuant to the Consolidated Appropriations Act of 2021, Pub.L. 116-260, or any other State or local program that provides assistance specifically to help eligible customers pay sewer or water bills;

(2) a process, in a form and manner to be determined by the department, which allows a residential customer to self-certify an inability to pay their local authority or municipal utility bill due to circumstances beyond the customer’s control, provided that the circumstances shall include, but not be limited to, unemployment, illness, medically related expenses, recent death of an immediate family member, and any other circumstances that might cause financial hardship; and

(3) a requirement that a local authority or municipal utility shall maintain or reconnect water service if a residential customer can demonstrate, in a manner determined by the department, that the customer has met the requirements provided in paragraph (1) of this subsection or the Low Income Household Water Assistance Program established pursuant to the Consolidated Appropriations Act of 2021, Pub.L. 116–260 or any other State, local, or utility program that provides assistance or discounted rates specifically to help eligible customers pay sewer or water bills.

4. The department, in consultation with the Board of Public Utilities, shall promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purpose of sections 2 and 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. As used in sections 5 through 7 of P.L. , c. (C. ) (pending before the Legislature as this bill):

“Board” means the Board of Public Utilities or any successor agency.

“Public utility” means a public utility, as defined pursuant to R.S.48:2-13, that provides electric, gas, sewer, or water service.

“Residential customer” means a residential public utility customer of record or any residential tenant of a residence where the owner or any agent or other representative of the owner of the residence is a non-residential customer of record.

“Utility emergency” means any condition constituting a potential danger to life, health, or property requiring a sewer or water public utility to immediately discontinue or interrupt sewer or water service or that results in an unscheduled discontinuance or interruption in sewer or water service.

6. Within 60 days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Board of Public Utilities shall include each sewer and water public utility in the board’s Winter Termination Program as established by the board pursuant to rules and regulations adopted by the board and published in the New Jersey Administrative Code. In addition to the inclusion of sewer and water public utilities, the board shall establish within the Winter Termination Program:

a. categorical eligibility for any customer receiving assistance under the Low Income Household Water Assistance Program established pursuant to the Consolidated Appropriations Act of 2021, Pub.L. 116–260 or any other State, local, or utility program that provides assistance specifically to help eligible customers pay sewer or water bills;

b. a process, in a form and manner to be determined by the board, which allows a residential customer to self-certify an inability to pay their public utility bill due to circumstances beyond the customer’s control, provided that the circumstances shall include, but not be limited to, unemployment, illness, medically related expenses, recent death of an immediate family member, and any other circumstances that might cause financial hardship; and

c. a requirement that a water public utility shall maintain or reconnect without charge water public utility service if a residential customer can demonstrate, in a manner determined by the board, that the customer has met the requirements provided in subsection a. of this section or the Low Income Household Water Assistance Program established pursuant to the Consolidated Appropriations Act of 2021, Pub.L. 116–260 or any other State, local, or utility program that provides assistance or discounted rates specifically to help eligible customers pay sewer or water bills..

7. The board shall promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purpose of sections 5 and 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

8. This act shall take effect immediately.

STATEMENT

This bill provides that the provisions of Executive Order No. 246 of 2021 concerning a grace period for residential customers of certain utilities are to remain in effect for any local authority, municipal utility, and public utility that provides sewer or water service through March 15, 2022 Any residential customer sewer or water service discontinuance occurring between the termination date of the grace period established pursuant to the executive order and the effective date of this bill are to be nullified and service is to be restored immediately. The extended grace period is to expire on March 15, 2022.

This bill directs the Department of Community Affairs (DCA) to establish a Winter Sewer and Water Winter Termination Program, which is to prohibit a local authority or municipal utility providing sewer or water service from discontinuing service during the period from November 15 through March 15, for residential customers. The program is to reflect the provisions of the Winter Termination Program (WTP) for residential electric and gas public utility service, established by the Board of Public Utilities (BPU), as appropriate for sewer and water service. The program is to include additional requirements as enumerated in the bill.

The bill requires the BPU to apply the provisions of the BPU-established WTP to sewer and water public utilities, in addition to electric and gas public utilities. The bill requires the BPU to make certain additions to the provisions of the WTP as enumerated in the bill.