This bill appropriates funds to the New Jersey Department of Environmental Protection (DEP) for various environmental infrastructure projects for the fiscal year 2026, utilizing resources from the Clean Water State Revolving Fund, the Drinking Water State Revolving Fund, and the Interim Environmental Financing Program Fund. The appropriations aim to support clean and drinking water project loans, technical assistance, and necessary state matches for federal grants under the Clean Water Act and Safe Drinking Water Act. The bill also allows for the transfer of funds between the Clean Water and Drinking Water State Revolving Funds to address public health threats and meet financing needs for eligible projects. Additionally, it authorizes the DEP to provide zero-interest and principal-forgiveness loans for projects, particularly those addressing combined sewer overflow issues, and emphasizes support for disadvantaged communities.

Furthermore, the bill establishes a framework for principal forgiveness and blended interest rate loans for various environmental infrastructure projects, with specific provisions for projects based on their costs and affordability criteria. It designates funds for lead service line replacements and outlines requirements for financing loans, including compliance with environmental laws and regulations. The bill also authorizes the Commissioner of Environmental Protection to enter into capitalization grant agreements and appropriates funds to the New Jersey Infrastructure Bank for the Environmental Infrastructure Financing Program, which will support local governments and privately-owned water companies. The eligibility for loans and the authorization for making them will expire on July 1, 2026, unless a loan agreement is executed by that date.