This bill appropriates funds to the New Jersey Department of Environmental Protection (DEP) for various clean and drinking water projects, utilizing a combination 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 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 for projects addressing emerging contaminants and lead service line replacements. Additionally, it establishes a maximum of $30 million in principal forgiveness for combined sewer overflow projects that meet affordability criteria.

The legislation emphasizes support for disadvantaged communities by allowing the transfer of funds to the New Jersey Infrastructure Bank for drinking water projects and providing grants for planning and design costs. It outlines specific loan amounts for various municipalities and project sponsors, with provisions for supplemental loans to cover project cost differences. The bill also mandates compliance with environmental laws and regulations, with loan repayment terms extending up to 45 years for certain projects. Overall, the bill aims to enhance the state's capacity to finance and support critical water infrastructure projects while ensuring that vulnerable populations receive necessary assistance.