The bill authorizes the New Jersey Infrastructure Bank to allocate up to $2.4 billion for loans to local government units or public water utilities aimed at financing environmental infrastructure projects. It allows for the increase of this sum through various means, including capitalized interest and administrative expenses, and enables the transfer of funds from established trust funds to support drinking water and clean water projects. The legislation also outlines a process for supplemental loans, prioritizing them based on project needs and available funds, while establishing eligibility criteria for local government units to access funding from the Pinelands Infrastructure Trust Fund.

Additionally, the bill sets specific conditions for loans, including repayment terms and interest rates, and allows for adjustments in loan amounts based on project costs. It introduces provisions for short-term loans through the Interim Environmental Financing Program and the Disaster Relief Emergency Financing Program, while exempting the trust from certain regulatory requirements to streamline the funding process. Importantly, eligibility lists for loans will expire on July 1, 2026, meaning any project sponsor that has not executed a loan agreement by that date will lose their entitlement to the loan. Overall, the legislation aims to enhance financial resources for critical environmental infrastructure projects in New Jersey.