This bill authorizes the New Jersey Infrastructure Bank (NJIB) to allocate up to $2.4 billion for loans to local government units and public water utilities to finance environmental infrastructure projects during the fiscal year 2026. The funding will cover costs associated with the construction of these projects, which include improvements to water discharge and treatment systems as well as drinking water systems. The bill also appropriates up to $1.5 billion for short-term loans and establishes the Environmental Disaster Relief Emergency Financing Program. It allows for the inclusion of various expenses in the loan amounts, such as capitalized interest and administrative costs, and enables the NJIB to transfer funds between established trust funds to support these initiatives.

Additionally, the bill outlines eligibility criteria for projects and the process for supplemental loans, establishing a priority system for loan distribution. It grants the NJIB the authority to adjust loan amounts based on project costs and ensures that all loans comply with existing environmental regulations. The legislation aims to enhance New Jersey's environmental infrastructure by providing substantial financial support for critical water-related projects while streamlining the financial management of the program.