This bill appropriates additional funds to the Department of Environmental Quality (DEQ) for fiscal year 2026, while also reducing certain appropriations. Specifically, it includes an appropriation of $425,300 from the ARPA State Fiscal Recovery Fund for administration and support services, and a total of $59,916,400 from the ARPA State Fiscal Recovery Fund for water quality initiatives. Additionally, the bill provides for a cash transfer of $10,000,000 from the General Fund to the Water Pollution Control Fund, designated for drinking and wastewater grants. The DEQ is also granted reappropriation authority for unexpended balances not exceeding $2,500,000 for document management implementation.

Furthermore, the bill outlines the intent to allocate up to $10,000,000 over five years for drinking water and wastewater project construction, with a focus on smaller systems and other qualifying factors. It establishes a competitive grant process administered by the Board of Environmental Quality and mandates a report to the Joint Finance-Appropriations Committee by December 1, 2025, detailing grant recipients and remaining funds. The bill also exempts the DEQ from certain transfer limitations for fiscal year 2025, allowing for greater flexibility in fund management. An emergency clause is included, making certain provisions effective immediately upon passage.