The bill amends Section 1 of P.L.2024, c.41, authorizing the New Jersey Infrastructure Bank to expend up to $2.47 billion for loans to local government units or public water utilities for environmental infrastructure projects. It allows for the inclusion of various expenses such as capitalized interest, administrative costs, and reserve capacity expenses in the aggregate sum. The bill also enables the trust to transfer funds from established trust funds to support drinking water and clean water projects, ensuring adequate funding and prioritization of these initiatives. Additionally, it outlines specific projects eligible for funding, including supplemental loans for clean water and drinking water infrastructure, and establishes criteria for adjusting loan amounts based on project needs.

Moreover, the bill amends existing legislation regarding the financing of drinking water projects through the Pinelands Infrastructure Trust Fund, aligning them with the regulations for wastewater projects until new regulations for drinking water are developed. It introduces a new eligibility list for environmental infrastructure projects, detailing estimated loan amounts totaling approximately $1.39 billion for clean water projects and $442 million for drinking water projects. The legislation also specifies conditions for loans, including compliance certifications and repayment terms, and allows for the redirection of unspent bond proceeds for financial obligations related to trust bonds. The act is set to take effect immediately upon approval.