This bill establishes a grant program within the Department of Environmental Protection (DEP) to support municipalities in planning and designing water infrastructure projects. The program aims to alleviate the upfront costs associated with these projects, thereby facilitating better access to federal and state funding for necessary upgrades. Eligible projects must be associated with water infrastructure initiatives that qualify for financing under the New Jersey Environmental Infrastructure Financing Program, with a maximum grant award of $2 million per project. Notably, municipalities will not be required to provide matching funds to qualify for these grants, and priority will be given to projects located in overburdened communities.

To implement this program, the DEP is tasked with developing guidelines for grant applications, establishing evaluation criteria, and monitoring compliance among grant recipients. Additionally, the DEP is required to report annually to the Governor and the Legislature on the program's effectiveness. The bill appropriates $100 million from the General Fund to fund the grant program, ensuring that municipalities have the necessary financial resources to enhance their water infrastructure.