The bill amends the New Jersey Infrastructure Bank's (NJIB) authority to provide loans for environmental infrastructure projects for the fiscal year 2026, increasing the aggregate loan amount from $2.4 billion to $2.69 billion. This increase allows the NJIB to finance a wider range of projects for local government units and public water utilities, with provisions for adjusting loan amounts based on factors such as capitalized interest and administrative expenses. The bill also outlines the conditions for transferring funds to the Department of Environmental Protection for drinking water project loans and updates definitions and conditions for supplemental loans, ensuring they can cover the gap between allowable loan amounts and actual project costs.

Additionally, the bill establishes eligibility criteria for local government units seeking funding and specifies repayment conditions, including extended periods for certain projects. It allows the NJIB to modify the list of eligible projects, including adding new ones and adjusting priorities and loan amounts. The bill also permits the issuance of market rate interest short-term temporary loans for wastewater treatment and water supply projects aimed at reducing lead in publicly owned facilities. An annual submission of the Interim Environmental Financing Program Project Priority List to the Secretary of the Senate and the Clerk of the General Assembly is mandated to ensure transparency in the funding process.