The bill amends existing legislation to enhance the funding and support for environmental infrastructure projects in New Jersey under the FY2026 environmental infrastructure funding program. It authorizes the Department of Environmental Protection (DEP) to utilize various funds, including the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund, to provide loans and technical assistance for clean water and drinking water projects. Significant changes include the DEP's ability to charge interest on loans from the Clean Water State Revolving Fund when used for drinking water projects, as well as the provision for zero-interest and principal-forgiveness loans to local government units and public water utilities. The bill allocates up to $60 million for principal forgiveness and grants to disadvantaged communities, and it specifies funding amounts for various projects, including $18 million for combined sewer overflow projects and $68 million for lead service line replacements.

Additionally, the bill updates the appropriations for environmental infrastructure projects managed by the DEP, increasing the total appropriation to up to $2.69 billion to support 225 eligible projects. It allows for the inclusion of new projects, removal of existing ones, and adjustments to project priorities and loan amounts. Key amendments include the authorization for the New Jersey Infrastructure Bank to use loan repayments to secure trust bonds and the appropriation of funds from the Federal Disaster Relief Appropriations Act for necessary reserve funds. These changes aim to improve the state's capacity to manage and allocate resources effectively for critical water supply and wastewater treatment initiatives, particularly in communities affected by natural disasters like Storm Sandy.