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a) Upon appropriation, the California Arrearage Payment Program is established in the Department of Community Services and Development. (

b) The department shall release program notices and post program notices related to CAPP administration on its public-facing internet website. (

c) All active residential utility customers with past due bills incurred during the COVID-19 pandemic bill relief period are considered eligible for CAPP assistance and shall be included in a utility applicant’s request for CAPP funding.

(1) The department and utility applicants shall prioritize the issuance of CAPP assistance in the following order: (

A) Active residential customers with past due bills and who, absent the CAPP assistance or any other protection or assistance provided by the utility applicant, might be subject to service disconnection, consistent with current law, due to nonpayment of balances incurred during the COVID-19 pandemic bill relief period. (

B) Active residential customers with past due bills incurred during the COVID-19 pandemic bill relief period.

(2) The department, in its application approval and allocation notice to utility applicants, shall direct utility applicants on how CAPP assistance will be applied to each of the priority groups. A utility applicant shall be responsible for correcting any misapplication of CAPP assistance when that failure was due to a utility applicant not properly applying CAPP assistance to residential customer accounts in accordance with program notices, 2022 CAPP application terms and conditions, and guidance issued by the department. (

d) Within days of receiving funds, upon appropriation, the department shall make available an online application for utility applicants to request CAPP funding for residential customers.

(1) To receive CAPP funding, a utility applicant shall complete a CAPP application, submit all necessary data and information to support the utility applicant’s CAPP application, execute the CAPP terms and conditions document, and comply with all department-issued program notices.

(2) All utility applicant CAPP applications shall include the total number of eligible residential accounts and the total amount of eligible residential account arrearages incurred during the COVID-19 pandemic bill relief period, and identify for each eligible residential account the corresponding account number and past due bill balance accumulated during the COVID-19 pandemic bill relief period.

(3) The general manager, utility director, or a designee shall certify that the CAPP application is true and accurate and execute the CAPP terms and conditions. (4) (

A) Customer information shall be subject to

Section 6254.16. This subparagraph shall become inoperative on January 1, 2023. (

B) Customer information shall be subject to

Section 7927.410. This subparagraph shall become operative on January 1, 2023. (

e) There shall be a 30-day application timeframe in which utility applicants may apply to the department for CAPP funds. The department shall contact a utility applicant that does not respond during the initial application period to inquire as to the status of the utility applicant’s CAPP application. (

f) The department shall review utility applicant CAPP applications for completeness and confirm that utility applicants’ submissions support the total amount of financial assistance requested on behalf of residential customers. Incomplete CAPP applications shall be returned to the utility applicant for corrections or amendments consistent with department notes or directives. (

g) One billion one hundred ninety-seven million dollars ($1,197,000,000) appropriated in Item 4700-101-3398 of the Budget Act of shall be used for the CAPP program. The allocation may be adjusted for the purposes of administrative costs. Upon appropriation, the following specified amounts shall be allocated for each utility category. Funding allocation to one of the categories that is not necessary for assistance for that category may be reallocated to another category.

(1) Two hundred thirty-nine million four hundred thousand dollars ($239,400,000) shall be allocated for financial assistance to customers of local publicly owned electric utilities and electrical cooperatives.

(2) Nine hundred fifty-seven million six hundred thousand dollars ($957,600,000) shall be allocated for financial assistance to customers of electrical corporations and gas corporations, including customers served by a community choice aggregator. (

h) To establish statewide CAPP allocations, the department shall develop an allocation formula for determining an individual utility applicant’s share of CAPP funds based on the proportional share of the total statewide energy utility arrearages.

(1) When determining statewide CAPP allocations, the department shall ensure utility applicant allocations do not exceed the total amount of eligible arrearages reported in the utility applicant’s CAPP application. If there are remaining CAPP funds after the initial allocation determination, the department shall redistribute the remaining CAPP funds to utility applicants according to their proportional share of the total statewide energy utility arrearages within each utility category.

(2) Upon approving a utility applicant’s CAPP application, the department shall submit to the utility applicant an application approval and allocation notice that identifies the utility applicant’s allocation along with directions on how to apply CAPP funds to customer accounts by priority group. The department shall make all application approval and allocation notices available on its public-facing internet website.

(3) Utility applicants shall provide benefits to residential customers in accordance with program notices, the CAPP application terms and conditions document, and guidance issued by the department.

(4) The department shall approve utility applicant’s CAPP applications, set statewide allocations, and disburse funds within seven months of the appropriation for the CAPP. (

i) Within days of receiving CAPP funds, a utility applicant shall issue CAPP benefits to its residential customers as bill credits to help address the past due bills and shall include a statement that the credits are a result of CAPP funding or other statement as approved by a department-issued program notice.

(1) Between the time when a utility applicant submits its CAPP application and the department completes the disbursement of CAPP allocations to all utility applicants, a utility applicant shall not discontinue service due to nonpayment by those residential customers with arrearages accrued during the COVID-19 pandemic bill relief period.

(2) A utility applicant shall not disconnect a residential customer’s utility service, regardless of balance owed after applying a CAPP benefit, for days after a CAPP benefit is applied.

(3) If a residential customer has a remaining balance after a CAPP benefit is applied, the utility applicant shall notify the residential customer of the option to enter into an extended payment plan with late fees and penalties waived. The utility applicant shall not discontinue service to the residential customer while the residential customer remains current on the repayment plan.

(4) Utility applicants shall waive any associated late fees and accrued interest for residential customers that are awarded CAPP benefits.

(5) An electrical corporation shall use existing proportional payment processes adopted by the Public Utilities Commission in response to the COVID-19 pandemic to allocate any partial payments made by residential customers to the utility applicant and other load-serving entities in proportion to their respective shares of the outstanding customer charges. (

j) An electrical corporation shall issue CAPP benefits to residential customer for past due bills owed to the utility applicant and other load-serving entities serving the residential customer in proportion to their respective shares of customer arrearages. (

k) Within six months of a utility applicant’s receipt of its CAPP allocation, the utility applicant shall submit all reporting required by the department detailed in a program notice. The utility applicant shall remit payment of any unapplied CAPP benefits to the department as part of its reporting to the department. (

l) Within days of receiving reporting from utility applicants pursuant to subdivision (k), the department shall provide to the Legislature, and make available on its public-facing internet website, a report. The report shall be submitted in conformance with

Section and shall include all of the following:

(1) Total arrearage amount applied for statewide.

(2) Total active residential customers in arrears applied for statewide.

(3) Total CAPP funds applied for by utility applicants.

(4) Total CAPP funds approved by the department and disbursed to utility applicants statewide.

(5) Total CAPP funds distributed by utility applicants.

(6) Total CAPP funds not expended and returned to the department by utility applicants.

(7) Total active residential customers, statewide, included in CAPP applications received by the department.

(8) Total active residential customers, by utility applicant, included in CAPP applications received by the department.

(9) Total active residential customers, statewide, that received a CAPP benefit.

(10) Average CAPP benefit, statewide, received by active residential customers.

(11) Total active residential customers, by utility applicant, that received a CAPP benefit.

(12) Average CAPP benefit, by utility applicant, received by active residential customers.

(13) Total expenditures by the department for the administration of CAPP. (

m) Utility applicants shall provide all documents and data necessary for the department, or its designee, to complete a review and audit of CAPP benefits applied to eligible residential accounts. The department shall provide days’ notice to utility applicants of any document requests to support departmental review and audit. (

n) Notwithstanding any other law, the payment authorized pursuant to this

section shall be treated in the same manner as the federal earned income refund for the purpose of determining eligibility to receive benefits under Division 9 (commencing with

Section 10000) of the Welfare and Institutions Code, excluding benefits under

Chapter 7 (commencing with

Section 14000) of Part of Division of the Welfare and Institutions Code, or amounts of those benefits. (

o) Notwithstanding any other law, the payment authorized pursuant to this

section shall not be considered as income and shall not be taken into account as resources for a period of months from receipt, for purposes of determining the eligibility of the individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (n). With respect to a state or local program, this subdivision shall only be implemented to the extent that it does not conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program.