Michigan Townships Association

Water affordability bills approved by committee

Legislation to create and fund a new state water affordability program was approved by a Senate committee. Senate Bills 248-256 would create the Low-Income Water Residential Affordability Program and ensure that a water customer who had a household income of up to 200% of the Federal Poverty Guidelines or who was eligible for certain assistance programs did not pay more than a specified percentage of the customer’s household income on a water bill. The bills would create the Low-Income Water Residential Affordability Fund and require water or sewage customers to pay a monthly $1.25 fee on each retail water meter to be deposited into the fund for the program’s implementation. This would not impact individuals on a septic system or with well water.

Under the legislation, a water provider (municipality) could opt out of the statewide program if it were to implement its own local option program that corresponded with the state Department of Health and Human Services’ (DHHS) program. A provider with 6,000 or fewer retail water customers (meters) could also opt out of the program and fee, but it could not shut off water or pursue debt collections for any customers. The bills would require providers to submit reports to DHHS. The bills will be considered next by the full Senate.