On Thursday, April 2, 2020, California Governor Newsom passed Executive Order N-42-20 (“the Order”), which broadly prohibits water systems from shutting off residential water service for non-payment of bills and prohibits the same for small businesses in the critical infrastructure sectors. The Order also restores residential water service to customers whose water was shut off after March 4, 2020 for non-payment.
Recognizing that 100 public and private utility systems had already voluntarily agreed to halt disconnection, the Governor took action to mandate certain water shut-offs do not take place during the COVID-19 State of Emergency. Relying on his emergency powers, the Governor found the Order necessary to prevent and mitigate the effects of the COVID-19 pandemic.
The Order applies differently to residential and commercial water services, as laid out below.
- Residential Water Service
- The Order prohibits any water system from discontinuing residential water service for non-payment.
- Urban and community water systems’ authority under Health and Safety Code sections 116908 and 116910 to discontinue residential water service for non-payment is suspended. Other provisions of the Water Shutoff Protection Act must still be complied with.
- This does not cover all residential water service providers so, the Order continues, “water systems not subject to the requirements of Health and Safety Code sections 116908 and 116910” are also prohibited from discontinuing residential water service for non-payment.
- Residential water service discontinued after March 4, 2020, the date that the Governor declared a State of Emergency, is required to be restored, whether related to a COVID-19 hardship or not, and even if the non-payment happened before March 4, 2020.
- Water customer is not relieved of the obligation to pay for water service, including any outstanding debt.
- Commercial Water Service
- All water system providers are prohibited from discontinuing commercial water service to any “small business”:
- As that term is defined in Code of Federal Regulations Title 13, section 121.201; AND,
- Operates in the “critical infrastructure sectors as designated by the State Public Health Officer as critical to protect the health and well-being of all Californians.
- The Order does not require commercial water service that has already been shut off be restored.
- All water system providers are prohibited from discontinuing commercial water service to any “small business”:
State Water Resources Control Board Guidance
The State Water Resources Control Board is now tasked with identifying best practices, guidelines, or both “to be implemented during the COVID-19 emergency” to address: non-payment or reduced water service payment options, how to promote the continuity of service for both water and waste water systems, and how to provide mechanisms for the sharing of resources, including staff and equipment. There is no mention of the timing or procedure for these guidelines to be developed.
Questions
Kronick attorneys across all of the firm’s practice groups – Public Agencies, Natural Resources, Labor & Employment, and Business/Healthcare – will continue to provide clients and the community with ongoing updates and advice regarding COVID-19 related issues as developments warrant. Please feel free to contact us for assistance with issues arising from the current health crisis.
Mona Ebrahimi
mebrahimi@kmtg.com | 916.321.4597
Olivia Clark
oclark@kmtg.com | 916.321.4290