This bill mandates that developers of certain affordable housing projects adhere to specific green building initiatives during construction or substantial renovation. It defines "applicable projects" as either newly constructed inclusionary developments or existing affordable housing units undergoing significant renovations. Developers are required to meet the standards of the United States Environmental Protection Agency's Energy Star Residential New Construction Program and make a good faith effort to incorporate behind-the-meter solar facilities. If solar inclusion is not feasible, developers can apply for an exemption from the Board of Public Utilities, which must respond within 45 days. The bill also outlines various green design standards related to lighting, energy efficiency, air quality, and transportation, among others.

Additionally, the bill requires soil testing for contamination on land designated for new inclusionary developments, prohibiting construction on contaminated sites unless remediation occurs. Developers must provide soil test results to the relevant municipality. The Board of Public Utilities, in collaboration with the Department of Community Affairs and the Department of Environmental Protection, is tasked with creating rules and regulations to implement the bill's provisions. The bill is set to take effect 13 months after its enactment, with provisions for anticipatory actions by the relevant departments.