(b)

1. (1) The state board shall adopt a resolution establishing guidelines for application requirements and reimbursement amounts for those arrearages and enterprise revenue shortfalls.
2. (2) There shall be an initial 60-day application timeframe in which a community water system or wastewater treatment provider may apply to the state board for reimbursement.
3. (3) The state board shall use the application total to determine the total amount of residential and commercial arrearages and enterprise revenue shortfalls from community water systems and wastewater treatment providers that have submitted that information.
4. (4) If there are insufficient funds in the appropriation described in paragraph (1) to reimburse the total amount of reported arrearages and enterprise revenue shortfalls of community water systems and wastewater treatment providers, the state board shall disburse the funds on a proportional basis to each applicant.
5. (5) An applicant shall calculate or estimate, based on its billing frequency, the total amount of outstanding past-due bills that have accumulated during the COVID-19 pandemic bill relief period. The calculations shall include documentation to support the amount of outstanding customer arrearages or enterprise revenue shortfalls that were incurred during that period, if available. An applicant’s authorized representative, or its designee, shall attest that the application is true and accurate.

6. (6)

   1. (A) The state board shall prioritize the timing of the disbursement of funding to small community water systems or wastewater treatment providers serving small communities.
   2. (B) The state board shall establish guidelines to prioritize residential water or wastewater customers and customers with the largest arrearages.

7. (7) If a community water system or wastewater treatment provider uses customer classes for purposes of its billing program, the following customer classes are eligible for funding under this chapter and may be included in the application:

   1. (A) Residential customers.
   2. (B) Commercial customers.

(c) An applicant shall, within 60 days of receiving funds under this chapter, allocate payments as follows:

1. (1) As bill credits to customers to help address past-due bills incurred during the COVID-19 pandemic bill relief period and notify customers of the amounts credited to their accounts.
2. (2) As offsets to or reimbursements for eligible enterprise revenue shortfalls.

(d)

1. (1) An applicant shall provide customers with arrearages accrued during the COVID-19 pandemic bill relief period a notice that they may enter into a payment plan and that they have 30 days from the date of the notice to enroll in the payment plan. A payment plan and its associated rules offered by a community water system of any size shall conform with Chapter 6 (commencing with Section 116900), notwithstanding limitations in that chapter relating to a community water system’s size. A community water system shall not discontinue water service to a customer that remains current on a payment plan.

2. (2) A community water system shall not discontinue water service due to nonpayment of past-due bills before either of the following dates, whichever date is later:

   1. (A) December 31, 2021.
   2. (B) For a customer that has been offered an opportunity to participate in a payment plan, the date the customer misses the enrollment deadline for, or defaults on, the payment plan.