The 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. It aims to support clean water and drinking water project loans, technical assistance, and state matches for federal grants under the Federal Clean Water Act and the Federal Safe Drinking Water Act. The bill also allows for the transfer of funds between different 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 to local government units and public water utilities, with specific provisions for disadvantaged communities and projects addressing combined sewer overflow issues.

Furthermore, the bill establishes a framework for principal forgiveness and low-interest loans for various environmental infrastructure projects, including those related to water quality restoration and efficiency. It allocates significant funding for principal forgiveness across categories, including $27 million for emerging contaminant projects and $10 million for water and energy efficiency projects. The bill also introduces provisions for Sandy financing, ensuring compliance with federal requirements, and allows the Commissioner of Environmental Protection to enter into capitalization grant agreements. It appropriates funds to the New Jersey Infrastructure Bank for the New Jersey Environmental Infrastructure Financing Program (NJEIFP), which will provide loans for water infrastructure projects, and establishes measures for managing loan repayments and appropriating necessary funds for reserve accounts, ensuring effective implementation until project funding authorization expires on July 1, 2026.