12087.3. (a) It is the intent of the Legislature that, upon appropriation in the Budget Act of 2022, one-time funding for the Low Income Household Water Assistance Program (LIHWAP) shall be used to prioritize and expedite services that reduce arrearages for low-income households.
(b) The Department of Community Services and Development shall continue to administer LIHWAP in this state using the funds appropriated in Items 4700-062-8506 and 4700-162-8506 of the Budget Act of 2022. The department shall administer this program until appropriated funds are expended or until June 30, 2026, whichever occurs first. These funds shall be allocated in accordance with all of the following:
(1) At least 75 percent of funds shall be allocated for financial assistance to pay water or wastewater bills of eligible households.
(2) Up to 19.6 percent of funds shall be allocated to support local program administration, including funding outreach, intake and enrollment services, and the issuance of financial assistance to eligible households in the form of a direct payment or state-issued warrant.
(3) Up to 5.4 percent of funds shall be allocated for state operations and oversight.
(c) Services under this section shall be available to eligible households in a manner consistent with the American Rescue Plan Act of 2021 (Public Law 117-2).
(d) (1) The one-time extension of LIHWAP enacted by this section shall be implemented in accordance with the federally approved 2021 LIHWAP state plan and program guidelines, with all of the following exceptions:
(A) Program guidelines shall be amended to extend program timelines and modify benefit issuance requirements to allow for the issuance of financial assistance payments to eligible households or the eligible household’s water and wastewater system provider.
(B) At the department’s discretion, the program guidelines may be amended to the extent necessary to promote efficient and effective delivery of services to eligible households.
(2) The department shall update program guidelines to reflect changes to program requirements, and provide public notice and seek public input on program guideline amendments, using the following process:
(A) The department shall post, no less than 30 days before finalization of the program guidelines, the draft program guidelines on the department’s public internet website.
(B) The department shall hold a public hearing on draft program guidelines with notice of the hearing published prominently on the department’s public internet website no less than 10 days before the hearing.
(3) Associated provisions of the 2021 LIHWAP state plan may be waived in order to support efficient and effective delivery of service to eligible households and alignment with program guidelines amended pursuant to this subdivision.
(e) Nonprofit and public agencies shall serve as local service providers to support local program administration of LIHWAP services funded by appropriations in the Budget Act of 2022. Local service providers shall be defined as nonprofit and public agencies designated in accordance with federal Public Law 97-35, as amended, serving as local service providers for the Low Income Home Energy Assistance Program (LIHEAP)(42 U.S.C. Sec. 8621 et seq.). The department shall assist local service providers in maintaining full compliance with this section and with the LIHWAP contract requirements and program guidelines. The department may use all available means to terminate a local service provider’s designation to administer LIHEAP funds for failure to administer LIHWAP funds pursuant to this section and in accordance with LIHWAP contract requirements and program guidelines.
(f) The department shall work with local service providers to facilitate the release of supplemental funds to provide outreach, intake, and delivery of financial assistance for water and wastewater services to eligible households. To ensure continuity of LIHWAP assistance delivery within a local service provider service area, the department may, at its discretion, execute a contract with a local service provider upon either of the following:
(1) The local service provider’s full expenditure of its original LIHWAP allocation.
(2) The expiration of the original federal LIHWAP program.
(g) Notwithstanding any other law, the department shall afford local service providers flexibility and control in the planning, administration, and delivery of LIHWAP services.
(Added by Stats. 2022, Ch. 50, Sec. 2. (SB 187) Effective June 30, 2022.)