This bill appropriates funds to the New Jersey Department of Environmental Protection (DEP) for clean and drinking water projects, utilizing a variety of state and federal funding sources, including the "Clean Water State Revolving Fund" and the "Drinking Water State Revolving Fund." It authorizes the DEP to transfer funds between these accounts to address public health threats and meet financing needs for eligible projects. The bill also allows for zero-interest and principal-forgiveness loans to local government units or public water utilities, particularly focusing on disadvantaged communities and enhancing community resilience against flooding and natural disasters.

Furthermore, the bill establishes a comprehensive financing framework for environmental infrastructure projects, specifying maximum amounts for principal forgiveness across various project categories, such as combined sewer overflow and water quality restoration projects. It allows for adjustments to loan amounts based on project costs and includes provisions for projects that enhance stormwater resilience and lead service line replacements. The New Jersey Infrastructure Bank is authorized to provide financing for these projects, with a total funding amount of approximately $714.9 million, ensuring that financial assistance is directed towards projects that effectively address the needs of communities impacted by environmental challenges. The act is set to take effect immediately upon approval, which occurred on July 10, 2024.