This bill appropriates funds from various state and federal sources to support clean water and drinking water projects in New Jersey, utilizing the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund. It allows for the transfer of funds between these two funds to address public health threats and meet financing needs. The bill also authorizes the Department of Environmental Protection (DEP) to provide zero-interest and principal-forgiveness loans to local government units and public water utilities, with specific allocations for disadvantaged communities and projects addressing emerging contaminants and lead service line replacements. Additionally, it establishes a "Storm Sandy and State Fiscal Year 2026 Clean Water Project Eligibility List" for projects eligible for funding, emphasizing the importance of these initiatives in improving environmental infrastructure.

Furthermore, the bill outlines a comprehensive financing framework for various environmental infrastructure projects, including combined sewer overflow and stormwater resilience initiatives, with defined limits on principal forgiveness and interest rates. It allows the DEP to adjust allowable loan amounts based on project costs and prioritizes loans for certain municipalities. The bill also includes provisions for compliance certifications and stipulates that any Sandy financing loans must meet specific terms. The eligibility for loans will expire on July 1, 2026, if agreements are not executed, and the act is set to take effect immediately upon approval.