Increasing Water Affordability through a Statewide Customer Assistance Program in California

Abstract

California has adopted a statewide policy where “every human being has the right to clean, safe, affordable, and accessible water.” Yet having the right to clean and affordable water is not the same as having clean and affordable water. Customer assistance programs (CAP) can offer financial relief and bridge the gap to making water more affordable for everyone. Many water utilities offer rebates, subsidies, high bill adjustments, and other financial programs to help offset the cost of water utility bills. While these programs vary by water supplier, California legislators have introduced a statewide water rate assistance program. However, this bill was ultimately vetoed by the governor due to a lack of sustainable funding source. Regardless, water affordability remains an important issue and this project analyzes different options for a statewide CAP, quantifies how much it would cost, and evaluate if it is affordable for low-income households.