The bill amends Section 1 of P.L.2024, c.41 to authorize the New Jersey Infrastructure Bank to allocate up to $2.47 billion for loans to 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, while allowing the trust to transfer funds from established trust funds to support drinking water and clean water projects. The bill also specifies the types of projects eligible for funding, including supplemental loans for clean water and drinking water infrastructure, and establishes a new eligibility list for projects related to Storm Sandy and State Fiscal Year 2025.

Additionally, the bill outlines the conditions for loan issuance, including compliance certifications, repayment terms, and interest rates, while allowing for adjustments to loan amounts based on project costs. It mandates that loans for drinking water projects funded through the Pinelands Infrastructure Trust Fund will follow the same regulations as wastewater projects until new regulations are developed. The bill sets a deadline of July 1, 2025, for project sponsors to execute loan agreements, after which they will forfeit their entitlement to the loans. Overall, the amendments aim to streamline the funding process for critical environmental infrastructure projects in New Jersey while ensuring compliance with existing regulations.