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 for the financing of various projects by local government units or public water utilities, with specific conditions outlined for loan amounts, including capitalized interest and administrative expenses. The bill also specifies eligible projects for supplemental loans, prioritizing them based on needs and available funds, and allows for adjustments to loan amounts based on final building costs.

Furthermore, the bill enhances funding mechanisms for clean water and drinking water projects through the Pinelands Infrastructure Trust Fund, authorizing loans to local government units with extended repayment terms of up to 35 years for certain loans and 45 years for combined sewer overflow abatement projects. It clarifies that unspent bond proceeds can be redirected for project-related costs and establishes a deadline of July 1, 2026, for loan eligibility unless agreements are executed by that date. The bill also introduces the Interim Environmental Financing Program for short-term loans aimed at reducing lead in publicly owned facilities, ensuring transparency through annual submissions of the project priority list.