The bill authorizes the New Jersey Infrastructure Bank (NJIB) to allocate up to $2.4 billion for loans aimed at financing environmental infrastructure projects during the fiscal year 2026. This funding is designated for local government units and public water utilities, referred to as project sponsors, to cover construction costs associated with these projects. The bill expands the types of expenses eligible for loans, including capitalized interest and administrative costs, and establishes specific provisions for supplemental loans for clean water and drinking water projects, prioritizing them based on project needs and available funds. It also outlines eligibility criteria for local government units to receive 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.

Additionally, the bill appropriates up to $1.5 billion for short-term loans to project sponsors on the Interim Environmental Financing Program Project Priority List and establishes funding for the Environmental Disaster Relief Emergency Financing Program. It sets requirements for loans, including conditions for amounts and repayment terms, while allowing the NJIB to adjust loan amounts based on project costs. The bill also permits the NJIB to use generated funds for its operating expenses and facilitates the transfer of funds between various State accounts to support the New Jersey Environmental Infrastructure Financing Program (NJEIFP) and match federal funding under relevant environmental laws. Overall, the bill aims to enhance New Jersey's water infrastructure while ensuring compliance with existing regulations and financial plans.