Establishes "Household Water Assistance Program"; appropriates $75 million.

S3533

SENATE, No. 3533

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

SYNOPSIS

���� Establishes �Household Water Assistance Program�;
appropriates $75 million.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

providing water assistance, sewer assistance,
and stormwater utility assistance to low-income households and supplementing
Title 52 of the Revised Statutes and making an appropriation.

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

���� 1.� As used in P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill):

���� �Affordable� means, with respect to a
household�s costs for water services that the household is able to pay for
water services that are adequate to meet the household�s basic needs while
maintaining the ability to pay for other essential costs.

���� �Arrears� means debt owed by a customer of a
water system for unpaid water service bills.

���� �Assistance� means financial and other
assistance provided to or on behalf of an eligible household to reduce the
household�s costs of water service.

���� �Board� means the New Jersey Board of Public
Utilities.

���� �Commissioner� means the Commissioner of
Community Affairs.

���� �Department� means the Department of Community
Affairs.

���� �Eligible household� means a household,
regardless of federal immigration status of the members of the household that:

���� (1)� has an adjusted gross income at or below an
amount to be determined by the department, which shall be equal to or greater
than 200 percent of the federal poverty guidelines;

���� (2)� includes one or more individuals residing
in the eligible household who receive or are eligible to receive the following:

���� (a)� benefits under part A of title IV of the
Social Security Act, 42 U.S.C. s.601 et seq.;

���� (b)� supplemental security income payments under
title XVI of the Social Security Act, 42 U.S.C. s.1381 et seq.;

���� (c)� food stamps under the �Food Stamps Act of
1997,� 7 U.S.C. s.2011 et seq.;

���� (d)� payments under section 415, 521, 541, or
542 of the title 38, United States Code, or under section 306 of the �Veterans�
and Survivors� Pension Improvement Act of 1978,� Pub.L.95-588;

���� (e)� payments under the Low Income Home Energy
Assistance Program established pursuant to 42 U.S.C. s.8621 et seq.;

���� (f)� benefits under the �Universal Service Fund�
established pursuant to P.L.1999, c.23 (C.48:3-60);

���� (g)� benefits under the �Lifeline Credit
Program� established pursuant to P.L.1979, c.197 (C.48:2-29.15 et seq.);

���� (h)� benefits under the �Tenants� Lifeline
Assistance Program� established pursuant to P.L.1981, c.210 (C.48:2-29.31 et
seq.);

���� (i)��� protections under the �Winter Termination
Program�
established pursuant to
N.J.A.C.14:3-3A.5
;

����
(j)�
benefits under the �Pharmaceutical Assistance to the Aged and Disabled
Program�, established pursuant to P.L.1975, c.194 (
C.30:4D-20 et seq.
);
or

���� (k)� benefits as defined
pursuant to section 1 of P.L.1997, c.14 (
C.44:10-44
); or

���� (3)� is experiencing temporary financial
hardship as defined by the department including but not limited to financial
hardship caused by unemployment, illness, medically related expenses, recent
death of an immediate family member, a public health emergency as provided in
section 2
of P.L.2005, c.222 (C.26:13-2)
, or a state of emergency
pursuant to
P.L.1942, c.251 (C.App.A:9-33 et seq.).

���� �Fund� means the Household Water Assistance
Fund, established pursuant to section 5 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).

���� �Program� means the Household Water Assistance
Program, established pursuant to section 2 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).

���� �Water crisis� means weather-related and supply
shortage emergencies and other household water-related emergencies, including
but not limited to disconnection of water service for nonpayment, imminent
disconnection of service for nonpayment, or other emergency threatening a
household�s access to safe water service.

���� �Water service� means service provided by a
water system.

���� �Water system� includes all of the following:

���� (1)� a public community water system, as that
term is defined by section 3 of P.L.1977, c.224 (C.58:12A-3);

���� (2)� a stormwater utility established pursuant
to P.L.2019, c.42 (C.40A:26B-1 et seq.); and

���� (3)� an authority, as defined in P.L.1983, c.
313 (C.40A:5A-3), municipal public utility, as defined in P.L.1960, c.169
(C.40A:1-1), or public utility, as defined pursuant to section 1 of P.L.1983,
c.78 (C.48:2-13.1), that provides sewer service.

���� 2.� a.� The Commissioner of Community Affairs,
in consultation with the board, shall establish the �Household Water Assistance
Program� not later than the first day of the eighth month next following
enactment of P.L.��� , c.������� (C.������� ) (pending before the Legislature
as this bill).� The purposes of the program shall be to provide financial and
other assistance to or on behalf of eligible households throughout New Jersey
to reduce the cost of water services to those households, prevent the disconnection
of water service to households due to inability to pay, and restore water
service to households disconnected due to inability to pay.

���� b.� The program required to be created by this
section shall, to the greatest extent possible, ensure that the costs of water
services are affordable for all eligible households and shall provide the
following types of assistance:

���� (1)�� direct assistance;

���� (2)�� assistance to renters
and other households who do not receive a bill from a water system but pay
other amounts, fees, or charges related to residential water system service;

���� (3)� water crisis intervention
assistance;

���� (4)�� water efficiency, leak
detection, and plumbing repair measures for eligible households; and

���� (5)�� debt relief for arrears,
including arrears accrued prior to implementation of the program.

���� c.� The program shall also offer short-term
financial support to water systems, as defined by section 1 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill) that are not public
utilities as defined by section 1 of
P.L.1983, c.78 (C.48:2-13) �����to
administer program components, including initial startup costs.

���� d.� The program may provide
financial support to a water system that is not a public utility as defined by
section 1 of P.L.1983, c.78 (C.48:2-13) to implement one or more of the
solutions proposed in an annual expenditure plan pursuant to� paragraph (5) of
subsection a. of section 4 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill), provided that the total amount of funds used for
this purpose shall not exceed three percent of the program�s total annual
budget
.

���� e.� If the commissioner secures federal funding
that may be used to provide assistance under the program prior to the first day
of the eighth month next following the enactment of P.L.��� , c.��� (C.�������
) (pending before the Legislature as this bill), the commissioner shall begin
to operate the program on an emergency basis, consistent with any applicable
conditions on the State�s receipt of such federal funding.

���� f.� The commissioner shall coordinate the
program with any existing assistance programs to the extent practicable.

���� g.� In developing the program, the commissioner
shall consider adapting program design elements of one or more existing
low-income energy assistance programs, including the Universal Service Fund and
the Low Income Home Energy Assistance Program.

���� h.
�
In administering the program,
the commissioner shall consult and coordinate with the board and consult with
the Household Water Assistance Advisory Group established pursuant to section 3
of
P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill)

to
develop and publish performance metrics that are disaggregated by utility name,
type of water service provided, municipality, and zip code or, to the maximum
extent practicable, census tract in lieu of zip code. Performance metrics shall
include, but are not limited to, enrollment levels, disconnection of water
service for inability to pay, and on-time payment levels. The commissioner
shall coordinate with the board to collect data to track the performance
metrics.

���� i.� The commissioner shall, as may be necessary,
coordinate and consult with other State agencies concerning aspects of the
program and resolve disputes as may be necessary.

���� 3.� a.� There is established a �Household Water
Assistance Advisory Group� to advise the commissioner in the development of the
program.� The advisory group shall organize no later than 30 days after the
enactment of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill) and shall include representatives of each of the following entities,
to be appointed by the Governor: a public community water system, as defined by
section 3 of P.L.1977, c.224 (C.58:12A-3), that is not a public utility as
defined by to section 1 of P.L.1983, c.78 (C.48:2-13); a public community water
system, as that term is defined by section 3 of P.L.1977, c.224 (C.58:12A-3),
that is a public utility as defined by to section 1 of P.L.1983, c.78
(C.48:2-13); a stormwater utility once it is created� pursuant to P.L.2019,
c.42 (C.40A:26B-1 et seq.); an authority, as defined in P.L.1983, c. 313
(C.40A:5A-3), or municipal public utility, as defined in P.L.1960, c.169
(C.40A:1-1), that provides sewer services; three representatives of
non-governmental organizations that work with, represent, or the membership of
which is comprised primarily by low-income residents, including at least two
community-based organizations; member of the public that is a member of an
eligible household; at least one technical assistance provider, such as
organizations that support the federal Low-Income Home Energy Assistance
Program or other low income utility assistance programs; at least one local
agency or non-profit organization that manages multifamily housing serving
low-income residents; at least one person with technical expertise in measuring
the affordability of water services for households or evaluating or designing
programs to improve the affordability of water services or other utility
services or households; at least one municipal official appointed by the
Governor, upon the recommendation of the New Jersey State League of
Municipalities; and at least one county official appointed by the Governor upon
the recommendation of the New Jersey Association of Counties.

���� b.� The commissioner shall
consult, coordinate, and collaborate with the advisory group established
pursuant to this section on matters related to the development of the program,
ongoing matters related to the operation of the program, and the development
and adoption of an annual fund expenditure plan developed pursuant to section 4
of
P.L.��� , c.�������
(C.������� ) (pending before the Legislature as this bill).

���� c.���� The failure to
establish the advisory group established pursuant to subsection a. of this
section shall not delay the establishment and implementation of the program
established pursuant to section 2 of
P.L.��� , c.������� (C.������� ) (pending before the
Legislature as this bill).� Following a failure to establish the advisory
group, the commissioner shall independently consult with the stakeholders
described under subsection a. of this section and other existing relevant
advisory groups in developing the program and the

adoption of an
annual fund expenditure plan developed pursuant to section 4 of
P.L.��� , c.�������
(C.������� ) (pending before the Legislature as this bill).

���� 4.� a.� The commissioner shall annually adopt an
expenditure plan for assistance to be provided under the program through the
�Household Water Assistance Fund� created pursuant to section 5 of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill) after at least
one public hearing and opportunity for written public comment on the proposed
use and distribution of monies through the fund and a formal opportunity for
public comment on a draft expenditure plan.

���� The annual expenditure plan shall contain, but
not be limited to, the following information:

���� (1)� identification of key
terms, thresholds, criteria, and metrics, and their definitions related to
implementation of the program;

���� (2)�� a description of all
program elements, how they were selected and prioritized, and how they are
coordinated with any other existing assistance programs and other relevant
programs listed under the definition of �eligible household� pursuant to
section 1 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill);

���� (3)� a report of expenditures
from the fund established pursuant to section 5 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill) for the prior fiscal year and
planned expenditures for each element of the program for the current fiscal
year;

���� (4)�� an estimate of the
number of households eligible for assistance, including those that do not
receive a direct bill for water services;

���� (5)�� a section that
discusses water service affordability challenges and proposed solutions, in
addition to the provision of assistance funded through the program, for
improving affordability of water service� for households served by water
systems.� An evaluation of solutions shall include, but not be limited to
adoption by water systems or local units of government of:�

���� (a)� policies and programs
that help customers reduce arrears, including:

���� (i)� amortization of an unpaid
balance;

���� (ii)� participation in an
alternative payment schedule;

���� (iii)� partial or full
reduction of an unpaid balance;

���� (iv)� temporary deferral of
payment of unpaid balance; and

���� (v)� an arrearage management
plan;

���� (b) �low-income discounts;

���� (c)� tiered water rates that
ensure that households receive at an affordable cost an amount of water service
usage sufficient to meet the household�s basic needs;

���� (d)�� percentage of income
payment plans that ensure that households receive at an affordable cost an
amount of water service usage sufficient to meet the household�s basic needs;

���� (e)� modification of water
system rate schedules to reduce the impact of fixed charges; and

���� (f)� other local or regional
programs to improve the affordability of water services.

���� (6)�� methods to ensure timely
and meaningful public participation and encourage enrollment in the program;
and

���� (7)� an estimate of the
funding available for the next fiscal year based on the amount available in the
fund, anticipated funding needs, other existing funding sources, and other
relevant data and information.

���� b.� The annual expenditure
plan shall identify the funding need of low-income households whose water
service costs pose affordability challenges based on metrics developed by the
department, in consultation with the board and the Household Water Assistance
Advisory Group established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

���� c.� The annual expenditure
plan shall include analysis with metrics, including the metrics developed
pursuant to subsection h. of section 2 and subsection b. of this section, to
evaluate how expenditures from prior fiscal years improved affordability.

���� d.� Upon completion of each
annual expenditure plan, the commissioner shall submit the plan to the
Governor, and to the Legislature, and post the annual expenditure plan on the
department�s Internet website.

���� 5.� a.� There is hereby created in the
department a separate trust fund, to be used for the exclusive purposes as
provided in this section, and which shall be known as the �Household Water
Assistance Fund.�� The fund shall be a non-lapsing fund.� All monies
appropriated annually by the Legislature, federal and other grants received by
the State, and any other monies made available for the purposes of the fund
shall be deposited in the fund.� Additionally, the department shall seek to
maximize any available federal funding which may be used for the purposes of
administering this program.� The department shall be permitted to utilize
annually up to 10 percent of the monies available in the fund for the payment
of any necessary administrative costs related to the administration of the
program, pursuant to subsection a. of section 2 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).

���� b.� Monies in the fund shall be used by the
department for the purposes provided in

subsections b.,
c., and d. of section 2 of
P.L. , c. (C. ) (pending before the Legislature as this bill).

���� c.� The department, in
consultation with the board, may adopt, pursuant to the �Administrative
Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations
necessary for the implementation of this act.

���� 6.� a.� No later than one year after the
effective date of
P.L. , c. (C. ) (pending
before the Legislature as this bill), the board shall establish a mechanism for
public utilities, as defined pursuant to section 1 of P.L.1983, c.78
(C.48:2-13), that provide electric or natural gas service to regularly share
with the department any relevant data regarding customers currently enrolled in
low-income energy assistance programs that is not already in the possession of
the department.

���� b.� The board and the
commission shall ensure the data shared and collected pursuant to this section
are subject to existing confidentiality protections provided under State law.

���� 7.��� a.�� The commissioner
may enter into agreements with municipal public utilities, as defined in
P.L.1960, c.169 (C.40A:1-1) that provide electric or natural gas service,
for the purposes of regularly sharing data with the department regarding
utility customers enrolled in, or eligible to be enrolled in, affordability
programs benefiting low-income households.� The agreements may authorize the
department to provide data pursuant to this paragraph to water systems for the
sole purpose of assisting with the administration of the program.

���� b.� The commissioner shall
ensure the data shared and collected pursuant to this section are subject to
existing confidentiality protections provided under State law.

���� 8.��� There shall be
appropriated to the
�
Household Water Assistance Fund
� in the

Department of Community Affairs, the sum of
$75,000,000 for the purpose of administering the �Household Water Assistance
Program�, from the funds provided to the State by the United States government
under the �American Rescue Plan Act of 2021,� Pub.L.117-2.

���� 9.��� This act shall take
effect immediately.

STATEMENT

����
This bill would require the Commissioner of the
Department of Community Affairs, in consultation with the New Jersey Board of
Public Utilities (BPU), to establish the �Household Water Assistance Program�
(program).� The purpose of the program would be to provide affordability
assistance for water, sewer, and stormwater utility services, to eligible
households throughout New Jersey.� Under the bill, �eligible households� means
a household regardless of the federal immigration status of the members of the
household that:

���� (1)� has an income at or below an adjusted gross
income to be determined by the department, which shall be equal to or greater
than 200 percent of the federal poverty guidelines;

���� (2)� has individuals residing in the eligible
household who are receiving the following:

���� (a)� Temporary Assistance for Needy Families;

���� (b)� Supplemental Security Income payments under
title XVI of the Social Security Act;

���� (c)� food stamps;

���� (d)� payments under section 415, 521, 541, or
542 of the title 38, United States Code, or under section 306 of the �Veterans�
and Survivors� Pension Improvement Act of 1978;� or

���� (e)� payments under the Low Income Home Energy
Assistance Program;

���� (f)� benefits under the Universal Service Fund;

���� (g)� benefits under the Lifeline Credit Program;

���� (h)� benefits under the Tenants� Lifeline
Assistance Program;

���� (i)� benefits under the Winter Termination
Program;

���� (j)� benefits under the Pharmaceutical
Assistance to the Aged and Disabled program; or

���� (k)� benefits as defined under P.L.1997, c.14;
or

���� (3)�� can demonstrate either temporary or
ongoing financial hardship according to the department.

���� Additionally, the bill defines �water system� to
include all of the following:

���� (1)� a public community water system, as that
term is defined by section 3 of P.L.1977, c.224 (C.58:12A-3);

���� (2)� a stormwater utility established pursuant
to P.L.2019, c.42 (C.40A:26B-1 et seq.); and

���� (3)� an authority, as defined in P.L.1983, c.
313 (C.40A:5A-3), municipal public utility, as defined in P.L.1960, c.169
(C.40A:1-1), or public utility, as defined pursuant to section 1 of P.L.1983,
c.78 (C.48:2-13.1), that provides sewer service.

���� The bill provides that the program would provide
the following types of financial assistance:

���� (
1)�
direct assistance;

���� (2)� assistance to renters and
other households who do not receive a bill from a water system but pay other
amounts, fees, or charges related to residential water system service;

���� (3)� water crisis intervention
assistance;

���� (4)�� water efficiency, leak
detection, and plumbing repair measures for eligible households; and

���� (5)� debt relief for arrears,
including arrears accrued prior to implementation of the program.

���� The commissioner is required to coordinate the
program with any existing assistance programs and in developing the program,
the commissioner would consider adapting elements of one or more existing
low-income energy assistance programs, including the Universal Service Fund and
the Low Income Home Energy Assistance Program.

���� The bill provides that in administering the
program, the commissioner is required to consult and coordinate with the New
Jersey Board of Public Utilities and the Household Water Assistance Advisory
Group to develop and publish performance metrics that are disaggregated by
utility name, type of water service provided, municipality, and zip code, which
include enrollment levels water shutoffs for inability to pay, and on-time
payment levels.

���� The bill would establish a �Household Water
Assistance Advisory Group� to advise the commissioner in the development of the
program.� The advisory group would include representatives of each of the
following entities, to be appointed by the Governor: a public community water
system that is not a public utility; a public community water system that is a
public utility; a stormwater utility once created; an authority or municipal
public utility that provides sewer services; three representatives of non-governmental
organizations; a member from the public that comes from an eligible household;
at least one technical assistance provider, such as organizations that support
the federal Low-Income Home Energy Assistance Program or other low income
utility assistance programs; at least one local agency or non-profit
organization that manages multifamily housing serving low-income residents; at
least one person with technical expertise in measuring the affordability of
water services;
at least one municipal official appointed by the
Governor, upon the recommendation of the New Jersey State League of
Municipalities; and at least one county official appointed by the Governor upon
the recommendation of the New Jersey Association of Counties

���� The bill provides that the commissioner would be
required to consult, coordinate, and collaborate with the advisory group on
certain matters.

���� The bill would also require the commissioner to
annually adopt an expenditure plan for assistance to be provided under the
program through the �Water Rate Assistance Fund� (fund) created pursuant to the
bill.� The fund would be a non-lapsing fund to contain monies appropriated
annually by the Legislature, federal and other grants received by the State,
and any other monies made available to fund the water affordability assistance
required to be provided in the bill.

���� The bill provides that no later than one year
after the enactment of this bill, BPU would be required to establish a
mechanism for public utilities that provide electric or natural gas services to
regularly share data with the department regarding customers currently enrolled
in low-income energy assistance programs.� Additionally, the commissioner would
be allowed to enter into agreements with municipal public utilities that
provide electric or natural gas service, for the purposes of regularly sharing
data with the department regarding utility customers enrolled in, or eligible
to be enrolled in, affordability programs benefiting low-income households.�
The board and the commissioner would be required to ensure that the data shared
and collected under the bill would be subject to existing confidentiality
protections provided under State law.

���� The bill would appropriate $75
million to the fund within the department for the purpose of administering the
program from the funds provided to the State by the United States government
under the �American Rescue Plan Act of 2021,� Pub.L.117-2.