This bill allocates $100 million in federal funds from the American Rescue Plan Act of 2021 to the New Jersey Department of Environmental Protection (DEP) for the purpose of establishing a grant program aimed at supporting local governments in funding drinking water, wastewater, and stormwater infrastructure projects. The DEP is tasked with developing a grant application process, along with transparent eligibility and ranking criteria, which must be published on its website within six months of the bill's effective date. Additionally, the DEP will determine a maximum grant amount to ensure equitable distribution of funds across local government units in the state.

The bill mandates that at least 10 percent of the allocated funds be reserved for projects that address harmful algal blooms in Lake Hopatcong and Greenwood Lake. The DEP is also permitted to use up to three percent of the funds for administering the grant program. Furthermore, the DEP is required to submit a detailed report to the Governor and the Legislature within three years of the bill's enactment, outlining the projects funded by the grants. The bill will expire either three years after its enactment or upon the submission of the required report, whichever comes first.