The bill amends Section 1 of P.L.2024, c.41, empowering the New Jersey Infrastructure Bank to allocate up to $2.47 billion for loans aimed at local government units or public water utilities for environmental infrastructure projects. It expands the scope of eligible expenses to include capitalized interest, administrative costs, and reserve capacity expenses. The bill also allows the trust to transfer funds from established trust funds to support drinking and clean water projects, ensuring these initiatives receive adequate financial support. Additionally, it outlines specific projects eligible for funding, including supplemental loans for clean water and drinking water infrastructure, and establishes priorities for loan distribution among various project sponsors.

Moreover, the bill introduces a new eligibility list for environmental infrastructure projects, identifying 152 projects under the "Storm Sandy and State Fiscal Year 2025 Clean Water Project Eligibility List" and 67 projects under the "Storm Sandy and State Fiscal Year 2025 Drinking Water Project Eligibility List." It sets conditions for loans, including compliance certifications and repayment terms, and allows for adjustments to loan amounts based on project costs. The bill also mandates that loans funded partially by bonds issued to the U.S. Environmental Protection Agency adhere to specific terms and establishes a deadline of July 1, 2025, for project sponsors to finalize loan agreements. Overall, the amendments aim to streamline the financing process for critical infrastructure projects while ensuring compliance with environmental regulations.