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 to support drinking and wastewater grants, with the intent to allocate up to $10,000,000 over five years for construction projects.

The bill also establishes reappropriation authority for unexpended balances from the General Fund, allowing up to $2,500,000 for document management implementation. It exempts the DEQ from specific program transfer limitations for fiscal year 2025, enabling more flexibility in managing appropriated funds. Furthermore, the DEQ is required to report to the Joint Finance-Appropriations Committee by December 1, 2025, detailing grant recipients and any uncommitted funds. The bill declares an emergency, making certain provisions effective immediately upon passage, while others will take effect on July 1, 2025.