Lawmakers push for action on revamped water affordability bills during lame duck session

On Monday, lawmakers from both the House and Senate joined with local government officials, and representatives from the Area Agency of Aging Association of Michigan, Chippewa Luce Mackinac Community Action Agency, Michigan Nurses Association and Michigan Catholic Conference, to call for support on a slate of bills aimed at addressing water affordability concerns in the state. 

“Water is not just a resource, it’s something that every human being needs in order to live. Yet, too many families in our state are struggling to afford their water bills or have in the past faced the threat of shut offs,” said state Sen. Stephanie Chang (D-Detroit), one of the lead sponsors for the legislation.

“This bill package represents years of hard work and collaboration with water providers, advocates, local governments, community organizations and many across the state. The goal is simple: to ensure that no family has to choose between paying their water bill, keeping the lights and heat on or putting food on the table,” Chang said.

Last year, the Michigan Senate Committee on Housing and Human Services heard testimony on Senate Bills 549–554, aimed at creating a statewide water affordability program and preventing water shutoffs. Despite receiving a hearing in 2023, the bills have yet to come to a vote in committee. A similar package of bills is currently sitting in the House Natural Resources, Environment, Tourism and Outdoor Recreation Committee, having received testimony at the committee’s Oct. 26, 2023 meeting. 

If passed, the bills would cap water bills at 2% of the average annual household income in a water provider’s service area for households at up to 135% of the federal poverty level. For households in between 135% and 200% of the federal poverty level, bills would be capped at 3% of the average household income in the area.

Chang noted that the legislation would now allow individuals within 200% and 250% of the federal poverty level experiencing an emergency situation — such as a job loss or medical bill placing them into financial hardship — to apply to participate in the program temporarily, provided they can demonstrate that extreme hardship.

It would also provide up to $1,500 in forgiveness of overdue water bills for first year enrollees in the program with an additional $1,500 available in the second year if needed. Eligible households could also receive funding for minor plumbing repairs, though the most recent version of Senate Bill 549 and its counterpart House Bill 5088 limit eligibility to those in owner occupied homes, and the repairs must be performed by a licensed plumber. 

The updated legislation also established limits for usage with providers charging their regular rate for any usage over the limit. The bills provide households of up to four people with 6 to 8 ccf, or centum cubic feet, the most common unit used by both water and natural gas utilities. Each ccf equals 748 gallons. Households with five to six people would be limited to nine to 11 ccf; households with seven to eight people, 12 to 14 ccf; households with nine to 10 people, 15 to 17 ccf; and households with 11 or more people, 18 to 20 ccf.

This program would be funded by a $2 charge for meters for all water customers, or the monthly billing equivalent. In the updated versions of Senate Bill 550 and House Bill 5089, this funding would be collected and distributed regionally, within the Michigan Department of Health and Human Services’ (DHHS) four business regions. The update bills also cap the amount of funds used for plumbing repairs at $15 million a year, names the  DHHS as the administrator for funding and allows the Department to reduce the $2 fee if there is enough program funding for three years.

The package also includes legislation allowing tenants to request their water and sewer bills be sent to them in their name, alongside bills creating protections against water shutoffs and reducing the penalty for illegal water reconnections from a felony to a misdemeanor. 

In addition to the previously introduced bills, Sen. John Damoose (R-Harbor Springs) has joined on to the package, introducing Senate Bill 980 in August. The bill creates a low-income water residential affordability program task force to make recommendations to the state on the administration of the plan, the benefits, or its funding. The task force would be made up of representatives from different-sized communities and could review and revise water allocation limits. The task force would also develop educational outreach materials and explore ways to expand programming. 

“Clean affordable water is something we all depend on, and it’s time we come together to ensure that every Michigander has access to it. Florida has beautiful winters, Colorado has amazing mountains, and Michigan has water. And the thought that some of our residents cannot afford access to that water is something that should be appalling to every legislator, Republican or Democrat,” Damoose said. 

When asked if the bill package could see support from other Republicans, Damoose said he hoped his support would encourage other members of his caucus to step up. 

“We’re charged with creating a good environment for our residents, and a good environment is one where people can access the basic needs of life like water, and we don’t have that right now, and so that should keep all of us — like I said in my statement — Republican or Democrat, up at night, until we can figure out a way,” Damoose said. 

Chang said the package must be a priority for lame duck, warning that if the bills do not pass, the state will be facing a water affordability crisis. 

“We recognize that water bills are continuing to go up, and we have not passed any long term solutions on this issue. While we have appropriated money — which has been very helpful — we know that the problem is only growing,” Chang said. 

In regards to buy-in from Michigan House Republicans, Damoose said he’d had conversations and expects the bills will receive some Republican support, arguing the bill didn’t need to wait for lame duck for action. 

“I don’t know why we didn’t get this done earlier. So now it’s just a matter of timing to me,” Damoose said. “Let’s not waste any more time and let’s get it done.”

House Majority Floor Leader Abraham Aiyash (D-Hamtramck) echoed Damoose’s statement, noting there had been healthy discussion on the bills with members of both the House Democratic and Republican caucuses and that there seemed to be an appetite to pass the bills before the Legislature adjourns for the year.