The bill amends existing legislation to enhance the funding and financing of environmental infrastructure projects in New Jersey for the fiscal year 2026. It authorizes the Department of Environmental Protection (DEP) to utilize various funding sources, including the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund, to support clean water and drinking water project loans. Significant changes include the DEP's ability to transfer funds between these two funds to meet project financing needs and the appropriation of unappropriated balances for clean water and drinking water projects. The bill emphasizes support for disadvantaged communities by providing zero-interest and principal-forgiveness loans, particularly for projects addressing public health threats and environmental concerns.

Additionally, the bill sets a maximum funding limit of $300 million for loans aimed at enhancing resiliency against natural disasters, particularly those related to Storm Sandy. It outlines eligibility criteria for projects seeking funding, introduces new definitions, and clarifies the roles of stakeholders involved in the financing process. Key provisions include the expiration of loan authorizations by July 1, 2026, and the ability for the Commissioner of Environmental Protection to adjust loan amounts based on project costs. Overall, the bill aims to streamline the financing process for critical water infrastructure projects while ensuring compliance with existing laws and regulations, ultimately supporting a total of 225 eligible projects.