The bill authorizes the New Jersey Infrastructure Bank to allocate up to $2.4 billion for loans aimed at financing environmental infrastructure projects for local government units and public water utilities. It allows for the increase of this funding through various means, including capitalized interest and loan origination fees, and outlines the transfer of funds from different trust funds to support drinking water and clean water projects. The bill also specifies the allocation of supplemental loans for specific projects, granting the trust the authority to adjust loan amounts and prioritize projects based on available funding. Notably, it permits the funding of drinking water projects through the Pinelands Infrastructure Trust Fund until specific regulations for drinking water financing are established.

Additionally, the bill amends existing laws related to the New Jersey Infrastructure Bank, establishing provisions for loans consistent with previous financial plans and allowing for the blending of federal funds for projects partially funded by bonds issued to the U.S. Environmental Protection Agency. It sets a deadline for loan eligibility, expiring on July 1, 2026, unless loan agreements are executed by that date. The bill also appropriates up to $1.5 billion for short-term loans from various environmental funds and establishes a Disaster Relief Emergency Financing Program to support projects affected by disasters. Overall, the bill aims to streamline the funding process for critical infrastructure projects while ensuring compliance with environmental standards and operational efficiency.