The bill amends existing legislation to enhance the funding and management of environmental infrastructure projects in New Jersey, particularly under the FY2025 funding program. It authorizes the Department of Environmental Protection (DEP) to utilize various funding sources, including the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund, for clean and drinking water project loans. Notably, the bill allows the DEP to transfer funds between these two funds to address public health threats and introduces the ability to charge interest on loans, which was previously prohibited. Additionally, it provides for zero-interest and principal-forgiveness loans aimed at supporting disadvantaged communities, with a focus on projects related to combined sewer overflows, water quality restoration, and lead service line replacements.

The legislation also updates the eligibility criteria for funding, allowing for adjustments to loan amounts based on project costs and compliance with federal and state regulations. It specifies a maximum of $20 million in principal forgiveness for combined sewer overflow projects and allocates up to $30 million for projects meeting affordability criteria. The bill emphasizes the importance of prioritizing high-ranking projects and ensures that the funding process adheres to environmental laws. Overall, the amendments aim to improve the state's capacity to support critical water infrastructure projects while ensuring financial accessibility for communities in need.