The 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 for environmental infrastructure projects during the fiscal year 2026. This funding aims to cover costs associated with the construction of water infrastructure projects, including 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 to project sponsors and establishes the Environmental Disaster Relief Emergency Financing Program. It expands the types of expenses eligible for loans, including capitalized interest, administrative costs, and loan origination fees.

Additionally, the bill outlines specific provisions for supplemental loans for clean water and drinking water projects, prioritizing funding based on project needs. It establishes eligibility criteria for local government units to access funding from the Pinelands Infrastructure Trust Fund and includes a list of eligible projects known as the Storm Sandy and State Fiscal Year 2026 Clean Water Project Eligibility List. The bill sets requirements for loan certification and compliance with existing environmental laws, while also allowing the NJIB to adjust loan amounts based on project costs and transfer funds between State accounts to support the New Jersey Environmental Infrastructure Financing Program (NJEIFP).