This bill appropriates funds to the New Jersey Department of Environmental Protection (DEP) for various environmental infrastructure projects for the fiscal year 2026, utilizing resources from the Clean Water State Revolving Fund, the Drinking Water State Revolving Fund, and the Interim Environmental Financing Program Fund. The appropriations aim to support clean and drinking water project loans, technical assistance, and necessary state matches for federal grants under the Federal Clean Water Act and the Federal Safe Drinking Water Act. The bill also allows for the transfer of funds between state revolving funds to address public health threats and meet financing needs for eligible projects. It authorizes the DEP to provide zero-interest and principal-forgiveness loans to local government units or public water utilities, particularly for projects aimed at reducing combined sewer overflow discharges, with a focus on supporting disadvantaged communities.

Furthermore, the bill establishes a framework for principal forgiveness and low-interest loans for various environmental infrastructure projects, including provisions for projects with costs between $5 million and $10 million, which will receive 50% principal forgiveness. It allocates significant funding for specific categories, such as $27 million for emerging contaminant projects and $10 million for water and energy efficiency projects, while ensuring that funds are available for communities affected by environmental challenges. The bill also mandates that loans must be repaid within specified timeframes and emphasizes the importance of technical assistance for project sponsors. Additionally, it authorizes the Commissioner of Environmental Protection to enter into capitalization grant agreements and appropriates funds to the New Jersey Infrastructure Bank for the implementation of the State Fiscal Year 2026 New Jersey Environmental Infrastructure Financing Program, with a total estimated loan amount exceeding $2.3 billion.