The "Water Affordability Act" seeks to create an income-based rate program to ensure that water bills for eligible customers remain affordable, capping them at a certain percentage of household income. The bill defines terms such as "critical care customer," "protected customer," and "qualified customer," and assigns the Department of Health and Human Services the task of implementing the program within a year of the bill's effective date. This includes developing an application process and maintaining records for qualified customers to adjust their water bills according to income levels.

Additionally, the bill introduces significant protections against water service shutoffs for qualified and protected customers, stipulating that service cannot be terminated for nonpayment except in specific public health or safety situations. It requires that a customer's bill must be delinquent for at least 120 days before any shutoff can occur and mandates a 30-day written notice prior to shutoff, detailing the amount owed and options for dispute. The bill also addresses emergency situations by prohibiting shutoffs until the emergency is resolved and ensuring service restoration for affected customers. Enforcement of these regulations is designated to the attorney general or qualified customers, with provisions for damages and attorney fees for those who prevail in civil actions. Local governments are restricted from creating conflicting regulations.