The "Water Affordability Act" aims to create an income-based rate program to ensure that water bills for eligible customers do not exceed a specified percentage of their household income, defined as 2%, 2.5%, or 3% based on income thresholds relative to the federal poverty level. The bill outlines the responsibilities of the Department of Health and Human Services in administering this program, including the development of an application process and record-keeping for qualified customers. Additionally, it includes protections against water shutoffs for qualified and protected customers, stipulating that service cannot be interrupted for nonpayment under certain conditions, particularly for multifamily dwellings where the landlord is responsible for the bill.

The legislation also establishes new regulations regarding water service shutoffs, requiring that a customer's bill must be delinquent for at least 120 days before any shutoff can occur. Water systems are mandated to provide written notice at least 30 days prior to a shutoff, detailing the amount owed and options for dispute or assistance. The bill further specifies conditions under which shutoffs cannot occur, such as when a customer has paid their most recent bill or resides in a protected residence. In the event of a declared state of emergency, water shutoffs are prohibited, and service must be restored to affected customers. Enforcement of these provisions can be pursued through civil action by the attorney general or qualified customers, who may recover attorney fees if they prevail.