The bill authorizes the New Jersey Infrastructure Bank to allocate up to $2.73 billion for loans aimed at financing environmental infrastructure projects for local government units and public water utilities. It allows for the increase of this funding through various means, including capitalized interest and reserve capacity expenses. The bill specifies funding for six clean water projects and two drinking water projects, and it permits supplemental loans for projects that exceed previously certified amounts due to rising costs. Additionally, it establishes that drinking water projects will be funded under the same regulations as wastewater projects until specific regulations for drinking water financing are developed.

Furthermore, the bill introduces two eligibility lists for environmental infrastructure projects and outlines the requirements for loans, including compliance certifications and repayment terms. It also allows the Infrastructure Bank to adjust loan amounts based on final costs and other factors, ensuring effective use of funds. The bill appropriates funds for short-term loans and establishes a priority list for eligible projects, while also creating a Disaster Relief Emergency Financing Program for projects impacted by disasters. Overall, the legislation aims to streamline the funding and management of environmental infrastructure projects in New Jersey.