The bill authorizes the New Jersey Infrastructure Bank to allocate up to $2.4 billion in loans to local government units and public water utilities for financing environmental infrastructure projects, with provisions for increasing this amount through capitalized interest, administrative expenses, and loan origination fees. It facilitates the transfer of funds from various trust funds to support drinking water and clean water projects, ensuring that these loans are jointly managed by the trust and the Department of Environmental Protection. The bill also specifies supplemental loan allocations for specific projects, allowing the trust to adjust loan amounts and prioritize funding based on project needs.

Additionally, the bill amends existing laws to streamline the financing process for environmental infrastructure projects, particularly those related to drinking water and wastewater. It establishes that drinking water projects will initially follow the same regulations as wastewater projects until new financing regulations are developed. The bill sets a deadline of July 1, 2026, for project sponsors to execute loan agreements, after which they will lose their entitlement to the loan. It also appropriates up to $1.5 billion for short-term loans and creates a Disaster Relief Emergency Financing Program to support projects affected by disasters, while exempting the trust from certain regulatory requirements to enhance operational efficiency.