The bill amends existing legislation concerning the appropriation of funds for environmental infrastructure projects in New Jersey, specifically for the FY2025 funding program. It outlines various funding sources, including the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund, to support loans and technical assistance for clean water and drinking water projects. The Department of Environmental Protection (DEP) is authorized to provide zero-interest and principal-forgiveness loans to local government units and public water utilities for eligible projects. Significant changes include the DEP's ability to transfer funds between the Clean Water and Drinking Water State Revolving Funds to address public health threats and the appropriation of unappropriated balances from various funds to support clean water initiatives, particularly for disadvantaged communities.

Additionally, the bill specifies funding allocations for combined sewer overflow (CSO) projects, water quality restoration, and drinking water systems, with a maximum of $20 million in principal forgiveness for CSO projects and up to $30 million for those meeting affordability criteria. It emphasizes the importance of affordability and prioritizes high-ranking projects. The bill also updates references to the legislation, clarifies funding sources, and establishes eligibility criteria for loans, which will expire on July 1, 2025, unless a loan agreement is executed by that date. Overall, the amendments aim to enhance the effectiveness of funding for critical environmental infrastructure projects while ensuring compliance with federal and state regulations.