The bill amends existing law regarding the appropriation of funds for environmental infrastructure projects in New Jersey, specifically under the FY2025 environmental infrastructure funding program. It authorizes the Department of Environmental Protection (DEP) to utilize various funds, 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 bill allows for the transfer of funds between accounts to address public health threats and meet financing needs for eligible projects. Additionally, it introduces provisions for zero-interest and principal-forgiveness financing loans to local government units or public water utilities, with up to $60 million allocated for principal forgiveness for disadvantaged communities.

The legislation also outlines significant financial support for various environmental infrastructure projects, including combined sewer overflow (CSO) projects, water quality restoration, and drinking water systems. It allocates a maximum of $20 million in principal forgiveness for CSO projects aimed at reducing discharges and sets aside $30 million for CSO projects meeting affordability criteria. The bill emphasizes the importance of meeting affordability criteria and prioritizes projects previously identified for funding. Furthermore, it allows for adjustments to loan amounts based on final building costs and establishes eligibility criteria for municipalities and project sponsors, aiming to enhance New Jersey's environmental infrastructure while providing financial relief to communities undertaking critical water-related projects.